3_CompanyCulture

[|Andreas Weigend] MBA 267, Spring 2009-B Haas School of Business, University of California at Berkeley
 * Marketing 2.x: The Social Data Revolution**

=Class 3: Company= April 9, 2009 Audio recording and transcript: Part 1: [|mp3] [|transcript] Part 2: [|mp3] [|transcript]

=**Agenda **= Twitter Debrief Peter Hirshberg = = =**Class Notes **= //**Framing:**// **//Not just Web 2.0 or Marketing 2.0… but People 2.0 //** The way people relate to each other, companies, companies relate to people is changing.

Peter Hirshberg
 Peter's blog: [] //**If you want to do Marketing 2.0, you've got to be Company 2.0** //

Things are changing in the way companies operate:
 * __Co-creation is key__- Everything we've built has given power to the consumer. The firm can no longer have complete control over its marketing messages.
 * __Media Evolves__ (radio -> tv -> computers) - "The medium is the message": People once thought home computers would only be some form of accounting or recipe box, and TV shows once looked like radio until they figured out how to use the medium. Companies are still figuring our how to use Web2.0 tools.
 * __From Modern Times to Open Times__. Every firm needs a narrative. Firms use narratives to move markets. Web 2 can be used as a believable story for business growth. The company as wiki might be the most important web2 revolution of all.
 * __Social apps__ are changing the nature of business, even though they have traditionally been consumer-oriented. People are finding new ways to use it, and it is only a matter of time before they hit the enterprise. Example: twitter was used to communicate real time relevant news about the San Diego fires ([|read about it]).
 * __A new generation__ of workers wants to say what it thinks, wants to be heard, have a voice, collaborate, instead of spending time in meetings, reading memos and documents. 80% of us have facebook: this is an indication that the new generation is ready to produce data, not just receive data. This new generation direct conflict with old, traditional communication methods used by the old enterprise. Result: middle management is in danger.

__These concepts lead to the question: How can an enterprise become like one big Wiki?__ In other words, how can companies modernize their marketing, communications and internal process infrastructure to use the "social tools" we have talked about, incorporating the benefits into their business? The answer: hook people up in networks. How will this play out? Economics always wins, time will tell which companies will survive after the revolution. Don Tapscott ("Wikinomics") said it well: social technology forces to rethink how enterprise delivers value, because the nature of communications have changed". ([|Read the Wikinomics page]).

Corporate Communications has moved from //owning and delivering// the message to //facilitating and enabling// employees to create the message:
 * Communication and Collaboration in the Corporation.**
 * The alternative for sharing, (sharepoint) has a lot more overhead
 * Use of ICQ and other chat are effective tools at work
 * Companies eventually adopt some technology
 * McKinsey tried to implement wikis and blogs, all internal sometimes locked down to project team
 * Biggest problem is it has to be internal, so it’s slow to grow to the newest versions

Systems at home (Facebook) have become more powerful than work tools in the past 5 years. Enterprise has fallen behind, and large companies are less flexible. What happens when today’s kids, who are connected and speaking and creating content, have to face a top-down workplace that is slow to change?

2005: “Death to the blogger” - Let’s kill off our customers' conversations 2006: Change of heart: Dove Real Beauty campaign with message boards 2007: Facebook
 * The Corporation and Consumer Connect**

Hall of Shame… but reformed --- changes instigated by consumers
 * Dell blog
 * CBS – Andrew Hayward

__**Specific cases of companies adopting Web 2 tools for increased efficiency:**__

//Company//: BlueShirtNation.com (Best Buy) //Issue//: Low enrollment in 401k //Method//: Video contest! //Result//: 3x higher 401k enrollment //Why it worked so well//: most employees have technoical interests //How it eventually evolved//: employees decided how the site whould be used over time
 * Case 1: Employee Engagement**

//Company//: BlueShirtNation.com (Best Buy) //Issue//: Wanted on online suggestion box //Method//: Linked to a propser.com-style approach where people could volunteer to fund ideas //Result//: Accountability to drive changes if your idea was funded
 * Case 2: Employee Suggestions**

//Company//: Best Buy //Issue:// Company created a game of predicion markets //Method:// Social application //Result//: Employes effectively could predict how the markets would move, benefiting everybody in the organization
 * Case 3: Employees using social apps to move markets**

//Organization//: Governmental agencies //Issue//: how to share intelligence information effectively //Method//: apply networking theory: you seldom get the most valuable information from your closest network; it is your secondary, broader group of social connections where this information can reside.
 * Case 4: Using social media for government intelligence**

//Company//: fixya.com //Issue//: if your appliance does not work, it can take you hours to figure out why if you call customer service //Method//: people connect online and share similar experiences and how they fixed them //Result:// **customers own MORE information about a company's products than the company itself!**
 * Case 5: Using social media to replace customer service**

//Company:// Procter and Gamble //Issue//: Previous employees take valuable training and knowledge with them when they leave //Method//: Create a social network for "P&G Alumni" //Result//: People are willing to share crucial information that saves time for the business, even after they have left
 * Case 6: A company tapping into its own knowledge base**

//Company//: Lego //Issue//: How to create a popular product that Lego fans will buy //Method//: When fans reverse-engineered LEGO software and created new ways of using it, Lego embraced what others would have called piracy, and welcomed fans and their suggestions in additions for the software into social networks //Result//: brickiwiki ([|see link]) was started, a virtual playground where people share their own ideas and creations using Legos. The company gets the FREE marketing research and creates more relevant products!
 * Case 7: A Company using social networks for product design**


 * __Conclusion: companies can employ social networking applications to enhance the value of their business.__** In order for this to work, you better have (1) a killer app, (2) a specific purpose, (3) a smart system of incentives. We will cover incentives in another class.

=Resources and References = **A-Space** (spooks' Facebook) - [|wikipedia entry] **Adam Hirsch** (created context/meaning to Twitter by grouping by Hashtags) - [|personal website] **Clay Shirky** (lock out the guy who has the $1m idea, and keep the guys who have 10 $100K ideas) - [|www.shirky.com/] **iJustine** (Tweets all day about her video, then posts, sending tons of viewers to YouTube) - [|iJustine videoblog]
 * Delicious** - [|bookmarks by people filtering web] (for your benefit!)
 * Don Tapscott**
 * Wikinomics - [|the net generation post]
 *  Grown Up Digital - [|book website and blog]
 * Marshall McLuan** ("The Media is the Message" - go to guru in the 1960s) - [|official site]
 * Wordle** - [|word clouds]

Roshan Bhula Antonio Fuentes Rumana Hussain