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Bridging the Functional Gap with Social Media
Business Development Institute – July 21, 2010




                                      Copyright © President & Fellows of Harvard College.
First some context.




                      2
Increase in usage of social media networks since 2007

      Information Week, Alison Diana, June 28, 2010
Growth in Social Media since 2007




                                    4
Growth of Facebook users over last 2 years




                      royal.pingdom.com
                                             5
Facebook growth in increments




                     royal.pingdom.com
                                         6
Number of Tweets per month as of May 2010
 Double the number from December 2009

            royal.pingdom.com
Twitter growth over 6 months




                               8
Videos viewed on You Tube in April 2010




MediaPost, Jack Loechner, June 2010, Center for Media Research – mediapost.com
What about mobile?




                     10
Projected number downloaded over I Tunes inin 2010
 Number of apps of apps to be downloaded 2007

                 royal.pingdom.com
Smartphone Use Among MBA Students




     Android       iPhone     Do not use a smartphone

     Blackberry    Other



                                                        12
How are companies engaged
     in social media?




                        13
Way back in . . .


2008!


  “Businesses will rush to the community
  and try to connect, but essentially they
  won’t have a mutual purpose, and they
  will fail.”

                                             14
Global Fortune 100 Engagement in Social Media




        Burson-Marstellar Fortune Global 100 Social Media Study – February 2010
                              Graphic: istrategy2010.com
                                                                                  15
Four ways companies are using social media

1.   Leverage an already existing community

2.   Create your own community

3.   Accelerate message distribution

4.   Conduct research




©2009 R2 Integrated; Matt Goddard, There are Only 4 Real Ways to Leverage Social Media



                                                                                         16
Use of Social Media in Organizational Departments

•   From the authors of Groundswell
    Department                   Objective                    Application
    R&D                          Listening: gaining           Innovation
                                 customer insights            communities
    Marketing                    Talking: engaging            Blogs, user-generated
                                 customers                    content
    Sales                        Energizing: third party      Social networking
                                 advocacy
    Customer Support             Supporting: customers        Support forums, Wikis
                                 help customers
    Operations                   Managing: employees          Internal social
                                 helping each other           networks

    ©2008 MIT Sloan Management Review: Harnessing the Power of the Oh-So-Social Web,
    Josh Bernoff and Charlene Li                                                       17
Bridging the Functional Gap with Social Media at HBS

•   Social Media today at HBS

•   Future Vision for Social Media convergence at HBS

•   HBS Cases – Other enterprises bridging the gap
       Nasa
       Intuit
       Threadless




                                                        18
Harvard Business School




  • 100 Years      • 850 Staff   • 13,000 Exec Ed
  • 220 Faculty    • 1,800 MBA   • 70,000 Alumni
The Social Media Imperative

•   Embrace behavioral shift

•   Harness viral marketing opportunities

•   Leverage third party advocates

•   Build sustainable communities

•   Enhance, monitor and protect the HBS brand
HBS and Social Media

                  HBS Social Media Footprint


    Twitter                                          184,000



  Linked In         38,000



  Facebook                                 140,000


              0     50,000    100,000    150,000     200,000

                                                          21
Areas for Collaboration


                                               Mobile




                Analytics/Metrics                                        Twitter




                                            Social Media
                                             Integration
                                            Opportunities

           Search Engine
                                                                              Facebook
            Optimization




                                Linked In                   Sharesites



                                                                                         22
Functional areas engaged in Social Media @ HBS

Publishing

Executive Ed

Marketing and Communications

Alumni Relations

MBA Admissions

Career Development

Human Resources



Traditional Publishing         Social Publishing   Interaction
What we are doing today.




                           24
HBS Publishing – moving from broadcast to
engagement

•   Blogs
     •   (400k weekly)

•   Twitter
         (172k)

•   Facebook
         (123k)

•   You Tube
         (500K)




                                            25
Engaging readers in discussions with each other . . .




                                                        26
. . . And with subject matter experts




                                        27
Engaging Alumni to strengthen relationships




          Engaging alumni.




                                              28
Engaging Alumni to strengthen relationships

•   Twitter
                          847.222.3000
•   Linked In
                         jmcgee@hbs.edu
•   Facebook             MBA 1975, Section B




•   Alumni Navigator
                                                                            847.222.3000



                                                                          jmcgee@hbs.edu




                                       MBA Harvard Business School 1975




                                                                                           29
Reinforcing networks for alumni
Engaging alumni with each other
Facilitating Alumni networking

•   Interactive classnotes




                                 32
Engaging executives.




                       33
Building sustainable communities




                                   34
Facilitating connection points
Making engagement convenient
HBS Executive Education on iTunes U
We see convergence along 3 dimensions

•   Across functions

•   Across audiences                   Publishing
                                   Alumni
•   Across platforms

                              Social            Mobile
                        AlumniMedia           Applications
                                                     Exec Ed
                       Relations
                          Senior              General
                       Executives            Managers


                                       Marketing


                                                               38
Convergence Vision I – Leveraging Social Media
for Recruiting




                                                 39
Convergence Vision II - Convergence driven by social
media




                                                       40
How others are
bridging the gap.




                    41
“93% of all innovations that became
successful started off in the wrong
direction”
                      Clay Christensen
                Harvard Business School



                                          42
HBS Case-let on NASA

•   Business: Space exploration

•   Challenge: Seek innovative solutions to research and technology
    problems that impact human
    health and performance in
    short- and long-duration
    human spaceflight
•   Approach: Open source
    innovation



                                                                      43
Open Source Innovation




                         44
Partnered with Top Coder and Innocentive initially




                                                     45
HBS Case-let on Intuit Brainstorm
•   Business: Creator of Quicken and Turbo Tax, provides business
    and financial management solutions for small and mid-sized
    businesses
•   Challenge: Creating visibility for and participation in collaborative
    innovation efforts across the company.
•   Approach: Developed social platform – Brainstorm – that makes
    innovation collaboration visible, fun and social.




                                                                            46
Intuit leverages social to spur innovation

    Ideas start raw and improve with collaboration
1

     Diverse perspectives and expertise help an idea grow and
     evolve.
                                                                An idea is like a seed that when put
                                                                into a collaborative environment is
                                                                better able to reach its potential.




             Collaboration requires visibility
2
     Be where the eyeballs are

     Some want to share their ideas, others want to
     find ideas…connections help everyone win
                                                                Visibility is created when communication
     Leaders must be able to find relevant ideas fast           is easy and has a fast payoff
Previous solution focused in the innovations
•   Captured the needed information

•   Generated great reports

•   However, the data was rarely updated

•   And low visibility meant few connections




           Ideas languished as innovators lacked
               a way to advance their ideas
Winning solution focused on the innovators

Grow ideas                                      Build Teams
Evolve your idea by                             Recruit from across the
capturing notes, todos,                         company or let them find
documents, and links to                         you.
relevant information.




Collaborate                                     Get Help
Take advantage of the                           Locate those with needed
collective wisdom of the                        skills. Reach out to leaders
company through                                 to remove obstacles.
comments and discussion.
Increased Quantity of Innovation
                              1
         Ideation up over 1000%




                                                                        2
                              Participation up over 500%




    Intuit now has over 200 new ideas preparing for release


                                            *for citations, see last slide in the appendix
Increased Quality of Innovation



   Collaboration
    with experts
  anywhere in the
    company…




                                   …leads to a
                                    diversity of
                                   thought that
                                  creates higher
                                      impact
                                   innovations.
Decreased Time-to-Market

•   ViewMyPaycheck went from a napkin to customers’
                                  3
    hands in less than 3 months




      ViewMyPaycheck.intuit.com now has 90,000 users &
     created a distribution channel to 77 million employees


                                            *for citations, see last slide in the appendix
Delighted and Engaged Employees

    Brainstorm spread throughout Intuit by word of mouth
         and became the de facto source of innovation

  I didn’t even know these individuals who
  “appeared” from various functions and across
  business units to lend support and help guide me
  along. As a result, I was able to assemble an
  implementation strategy without a lot of
  background experience.
                                     You have one team out in Texas, and 2
                                     teams in San Diego who didn’t know each
                                     other. Through Brainstorm, they realized
    Matt Gotchy,                     that there were other teams out there and
    Product Manager                  they joined forces.



                                                                           Zack Zackirson,
                                                                         Marketing Manager

                                                      *for citations, see last slide in the appendix
HBS Case-let- Threadless
  •   Business: Retail clothing design, manufacturing and sales.
  •   Challenge: Engaging community as product designers,
      reviewers and buyers.
  •   Approach: Let community drive innovation and product
      development – sales will follow.




                                                                   55
Threadless Business Model




                            57
Threadless by the Numbers


•   Over 500,000 community members

•   800 designs per week are submitted

•   134,000 designs from 55,000 individuals

•   Each design gets over 600 votes – total 80M votes have
    been cast!
Thank You!




             59

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Bridging the Functional Gap with Social Media at Harvard Business School - BDI 7/21/2010 Social Convergence & The Enterprise

  • 1. Bridging the Functional Gap with Social Media Business Development Institute – July 21, 2010 Copyright © President & Fellows of Harvard College.
  • 3. Increase in usage of social media networks since 2007 Information Week, Alison Diana, June 28, 2010
  • 4. Growth in Social Media since 2007 4
  • 5. Growth of Facebook users over last 2 years royal.pingdom.com 5
  • 6. Facebook growth in increments royal.pingdom.com 6
  • 7. Number of Tweets per month as of May 2010 Double the number from December 2009 royal.pingdom.com
  • 8. Twitter growth over 6 months 8
  • 9. Videos viewed on You Tube in April 2010 MediaPost, Jack Loechner, June 2010, Center for Media Research – mediapost.com
  • 11. Projected number downloaded over I Tunes inin 2010 Number of apps of apps to be downloaded 2007 royal.pingdom.com
  • 12. Smartphone Use Among MBA Students Android iPhone Do not use a smartphone Blackberry Other 12
  • 13. How are companies engaged in social media? 13
  • 14. Way back in . . . 2008! “Businesses will rush to the community and try to connect, but essentially they won’t have a mutual purpose, and they will fail.” 14
  • 15. Global Fortune 100 Engagement in Social Media Burson-Marstellar Fortune Global 100 Social Media Study – February 2010 Graphic: istrategy2010.com 15
  • 16. Four ways companies are using social media 1. Leverage an already existing community 2. Create your own community 3. Accelerate message distribution 4. Conduct research ©2009 R2 Integrated; Matt Goddard, There are Only 4 Real Ways to Leverage Social Media 16
  • 17. Use of Social Media in Organizational Departments • From the authors of Groundswell Department Objective Application R&D Listening: gaining Innovation customer insights communities Marketing Talking: engaging Blogs, user-generated customers content Sales Energizing: third party Social networking advocacy Customer Support Supporting: customers Support forums, Wikis help customers Operations Managing: employees Internal social helping each other networks ©2008 MIT Sloan Management Review: Harnessing the Power of the Oh-So-Social Web, Josh Bernoff and Charlene Li 17
  • 18. Bridging the Functional Gap with Social Media at HBS • Social Media today at HBS • Future Vision for Social Media convergence at HBS • HBS Cases – Other enterprises bridging the gap Nasa Intuit Threadless 18
  • 19. Harvard Business School • 100 Years • 850 Staff • 13,000 Exec Ed • 220 Faculty • 1,800 MBA • 70,000 Alumni
  • 20. The Social Media Imperative • Embrace behavioral shift • Harness viral marketing opportunities • Leverage third party advocates • Build sustainable communities • Enhance, monitor and protect the HBS brand
  • 21. HBS and Social Media HBS Social Media Footprint Twitter 184,000 Linked In 38,000 Facebook 140,000 0 50,000 100,000 150,000 200,000 21
  • 22. Areas for Collaboration Mobile Analytics/Metrics Twitter Social Media Integration Opportunities Search Engine Facebook Optimization Linked In Sharesites 22
  • 23. Functional areas engaged in Social Media @ HBS Publishing Executive Ed Marketing and Communications Alumni Relations MBA Admissions Career Development Human Resources Traditional Publishing Social Publishing Interaction
  • 24. What we are doing today. 24
  • 25. HBS Publishing – moving from broadcast to engagement • Blogs • (400k weekly) • Twitter (172k) • Facebook (123k) • You Tube (500K) 25
  • 26. Engaging readers in discussions with each other . . . 26
  • 27. . . . And with subject matter experts 27
  • 28. Engaging Alumni to strengthen relationships Engaging alumni. 28
  • 29. Engaging Alumni to strengthen relationships • Twitter 847.222.3000 • Linked In jmcgee@hbs.edu • Facebook MBA 1975, Section B • Alumni Navigator 847.222.3000 jmcgee@hbs.edu MBA Harvard Business School 1975 29
  • 31. Engaging alumni with each other
  • 32. Facilitating Alumni networking • Interactive classnotes 32
  • 37. HBS Executive Education on iTunes U
  • 38. We see convergence along 3 dimensions • Across functions • Across audiences Publishing Alumni • Across platforms Social Mobile AlumniMedia Applications Exec Ed Relations Senior General Executives Managers Marketing 38
  • 39. Convergence Vision I – Leveraging Social Media for Recruiting 39
  • 40. Convergence Vision II - Convergence driven by social media 40
  • 41. How others are bridging the gap. 41
  • 42. “93% of all innovations that became successful started off in the wrong direction” Clay Christensen Harvard Business School 42
  • 43. HBS Case-let on NASA • Business: Space exploration • Challenge: Seek innovative solutions to research and technology problems that impact human health and performance in short- and long-duration human spaceflight • Approach: Open source innovation 43
  • 45. Partnered with Top Coder and Innocentive initially 45
  • 46. HBS Case-let on Intuit Brainstorm • Business: Creator of Quicken and Turbo Tax, provides business and financial management solutions for small and mid-sized businesses • Challenge: Creating visibility for and participation in collaborative innovation efforts across the company. • Approach: Developed social platform – Brainstorm – that makes innovation collaboration visible, fun and social. 46
  • 47. Intuit leverages social to spur innovation Ideas start raw and improve with collaboration 1 Diverse perspectives and expertise help an idea grow and evolve. An idea is like a seed that when put into a collaborative environment is better able to reach its potential. Collaboration requires visibility 2 Be where the eyeballs are Some want to share their ideas, others want to find ideas…connections help everyone win Visibility is created when communication Leaders must be able to find relevant ideas fast is easy and has a fast payoff
  • 48. Previous solution focused in the innovations • Captured the needed information • Generated great reports • However, the data was rarely updated • And low visibility meant few connections Ideas languished as innovators lacked a way to advance their ideas
  • 49. Winning solution focused on the innovators Grow ideas Build Teams Evolve your idea by Recruit from across the capturing notes, todos, company or let them find documents, and links to you. relevant information. Collaborate Get Help Take advantage of the Locate those with needed collective wisdom of the skills. Reach out to leaders company through to remove obstacles. comments and discussion.
  • 50. Increased Quantity of Innovation 1 Ideation up over 1000% 2 Participation up over 500% Intuit now has over 200 new ideas preparing for release *for citations, see last slide in the appendix
  • 51. Increased Quality of Innovation Collaboration with experts anywhere in the company… …leads to a diversity of thought that creates higher impact innovations.
  • 52. Decreased Time-to-Market • ViewMyPaycheck went from a napkin to customers’ 3 hands in less than 3 months ViewMyPaycheck.intuit.com now has 90,000 users & created a distribution channel to 77 million employees *for citations, see last slide in the appendix
  • 53. Delighted and Engaged Employees Brainstorm spread throughout Intuit by word of mouth and became the de facto source of innovation I didn’t even know these individuals who “appeared” from various functions and across business units to lend support and help guide me along. As a result, I was able to assemble an implementation strategy without a lot of background experience. You have one team out in Texas, and 2 teams in San Diego who didn’t know each other. Through Brainstorm, they realized Matt Gotchy, that there were other teams out there and Product Manager they joined forces. Zack Zackirson, Marketing Manager *for citations, see last slide in the appendix
  • 54.
  • 55. HBS Case-let- Threadless • Business: Retail clothing design, manufacturing and sales. • Challenge: Engaging community as product designers, reviewers and buyers. • Approach: Let community drive innovation and product development – sales will follow. 55
  • 56.
  • 58. Threadless by the Numbers • Over 500,000 community members • 800 designs per week are submitted • 134,000 designs from 55,000 individuals • Each design gets over 600 votes – total 80M votes have been cast!