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Social ROI and Value modeling
1. McKinsey's BTO meeting
<Insert Picture Here>
December 2011
Community Equity - How to build vibrant communities
Peter H. Reiser
Principal Architect, Oracle
Tuesday, December 6, 11
2. Oracle Safe Harbor Statement
The following is intended to outline our general product direction. It is
intended for information purposes only, and may not be incorporated into
any contract. It is not a commitment to deliver any material, code, or
functionality, and should not be relied upon in making purchasing
decisions.
The development, release, and timing of any features or functionality
described for Oracle’s products remains at the sole discretion of Oracle.
Tuesday, December 6, 11
3. What is Enterprise 2. 0 ?
How to build vibrant
communities
Web 2.0
Social Media
Internal External
Employees Customer
Partners
Suppliers
Tuesday, December 6, 11
4. The Enterprise 2.0 dilemma
Business View
Communities are a
“good thing” BUT...
What is the business case?
How to integrate social & communities
into our existing business processes ?
What is the RoI?
Users View
I am too busy to sharing my content
My time is better spent generating
revenue
(My knowledge is power)
What’s In It For Me (WIIFM)?
Tuesday, December 6, 11
5. What if we can prove to the business the
RoI of Communities
(aka Enterprise 2.0)
AND
have answers for the users on
WIIFM?
Tuesday, December 6, 11
7. How to build vibrant communities
Value
Adoption
Technology
Tuesday, December 6, 11
8. How to build vibrant communities
Value
Adoption
Technology Enterprise Architecture
Tuesday, December 6, 11
9. How to build vibrant communities
Value
Adoption Process / Methodology
Technology Enterprise Architecture
Tuesday, December 6, 11
10. How to build vibrant communities
Value Business: RoI, Users: WIIFM
Adoption Process / Methodology
Technology Enterprise Architecture
Tuesday, December 6, 11
11. Objectives
Seamless integrate social & communities into all core
business processes
Establish a standardized Enterprise 2.0 Framework
to support social, collaboration and communities
Measure the impact of social, collaboration &
communities along the business processes
Establish targeted social value models
Tuesday, December 6, 11
12. Core Business Processes
Product
Product Opportunity
Opportunity BID BID
Delivery
Delivery Support
Creation
Creation Mngt.
Mngt. Mngt.
Mngt.
Tuesday, December 6, 11
13. Business Processes and Applications
Product
Product Opportunity
Opportunity BID BID
Delivery
Delivery Support
Creation
Creation Mngt.
Mngt. Mngt.
Mngt.
Tuesday, December 6, 11
14. Social Enterprise Community Framework
Product
Product Opportunity
Opportunity BID BID
Delivery
Delivery Support
Creation
Creation Mngt.
Mngt. Mngt.
Mngt.
Social Enterprise Community Framework
Tuesday, December 6, 11
15. Business/Communities Metrics
Product
Product Opportunity
Opportunity BID BID
Delivery
Delivery Support
Creation
Creation Mngt.
Mngt. Mngt.
Mngt.
Social Enterprise Framework
Tuesday, December 6, 11
16. Use Case: AIM KMS - Sun Microsystems
Re-Use of Content in
Opportunity Management
and
Project Delivery
Tuesday, December 6, 11
17. Re-Use of Documents
Enterprise Community and Collaboration Framework
(AIM KMS & SunSpace)
Project 3
Re-Use
Project 1 Project 2
Tuesday, December 6, 11
18. Re-Use compared to
Win Rate and Margin
Product Opportunity BID
Delivery
Delivery Support
Creation Mngt. Mngt.
Forecast Win Rate Margin
Enterprise Social and Community Framework
(AIM KMS & SunSpace)
Tuesday, December 6, 11
19. RoI on Communities (Sun Microsystems)
Up to 14 % better win rate
Up to 20% higher project margin
Tuesday, December 6, 11
20. ROI calculation
Revenue : 11,000 Millions
80% of projects in AIM KMS: 8,800 Millions
15 % average Re-Use: 1,320 Millions
Average win rate improvement : 10 %
ROI: 132 Millions incremental revenue
Tuesday, December 6, 11
21. Social & Business Value per Document
Social Values Business Values
Downloads Wins
Ratings Revenue
Re-Use Hours saved
Tuesday, December 6, 11
24. Community Equity
Contribution
Documents
Wiki
Blogs
Patents
Tuesday, December 6, 11
25. Community Equity
Contribution Participation
Documents Rate
Wiki Comment
Blogs Re-use
Patents Tags
Tuesday, December 6, 11
26. Community Equity
Contribution Participation
Documents Rate
Wiki Comment
Blogs Re-use
Patents Tags
Skill
Education
Skills
Reputation
Tuesday, December 6, 11
27. Community Equity
Contribution Participation
Documents Rate
Wiki Comment
Blogs Re-use
Patents Tags
Skill Role
Education
Skills Business
Reputation Communities
Tuesday, December 6, 11
28. Community Equity
Contribution Participation
Documents Rate
Wiki Comment
Blogs Re-use
Patents Personal Tags
Skill Personal Role
Equity
Education
Skills Business
Reputation Communities
Tuesday, December 6, 11
29. Community Equity Mathematical Model
Object Activity | Contribution - Aging | Partipation - Aging
Tuesday, December 6, 11
32. Information Equity
Content Activities Community
create
modify
download
view
rate
comment
tag
Tuesday, December 6, 11
33. Information Equity
Content Activities Community
create
modify
download
view
rate
comment
tag
Tuesday, December 6, 11
34. Personal Equity
My Community Equity Activities Me
Community
Tuesday, December 6, 11
35. Personal Equity
My Community Equity Activities Me
Community
Tuesday, December 6, 11
36. Personal Equity
My Community Equity Activities Me
Contribution
create
modify
tag
Community
Tuesday, December 6, 11
37. Personal Equity
My Community Equity Activities Me
Contribution
create
modify
tag
Community
Participation
view
rate
comment
reuse
Tuesday, December 6, 11
38. Personal Equity
My Community Equity Activities Me
Contribution
create
modify
tag
Community
Participation
view
rate
comment
reuse
Tuesday, December 6, 11
41. Tag Equity
Info 1
IQ=10
Tuesday, December 6, 11
42. Tag Equity
Info 1
IQ=10
Java
TQ=10
Tuesday, December 6, 11
43. Tag Equity
Info 1 Info 2
IQ=10 IQ=20
Java
TQ=10
Tuesday, December 6, 11
44. Tag Equity
Info 1 Info 2
IQ=10 IQ=20
Java
Java Ruby
TQ=30
TQ=10 TQ=20
Tuesday, December 6, 11
45. Tag Equity
TQ(Java)=30
TQ(Ruby)=20
Info 1 Info 2
IQ=10 IQ=20
Java
Java Ruby
TQ=30
TQ=10 TQ=20
Tuesday, December 6, 11
46. Tag Equity
TQ(Java)=30
TQ(Ruby)=20
Info 1 Info 2
IQ=10 IQ=20
Java Ruby
TQ=30 TQ=20
Tuesday, December 6, 11
47. Tag Equity
TQ(Java)=30
TQ(Ruby)=20
Info 1 Info 2
IQ=10 IQ=20
Java Ruby
TQ=30 TQ=20
Tuesday, December 6, 11
48. Tag Equity
TQ(Java)=30
TQ(Ruby)=20
Info 1 Info 2 Info 3
IQ=10 IQ=20 IQ=30
Java Ruby
TQ=30 TQ=20
Tuesday, December 6, 11
49. Tag Equity
TQ(Java)=30
TQ(Ruby)=20
Info 1 Info 2 Info 3
IQ=10 IQ=20 IQ=30
Java
Java Ruby
TQ=30
TQ=60 TQ=20
Tuesday, December 6, 11
50. Tag Equity
TQ(Java)=30
TQ(Ruby)=20
Info 1 Info 2 Info 3 Info 4
IQ=10 IQ=20 IQ=30 IQ=40
Java
Java Ruby
TQ=30
TQ=60 TQ=20
Tuesday, December 6, 11
51. Tag Equity
TQ(Java)=30
TQ(Ruby)=20
Info 1 Info 2 Info 3 Info 4
IQ=10 IQ=20 IQ=30 IQ=40
Java
Java Ruby
Ruby
TQ=30
TQ=60 TQ=20
TQ=70
Tuesday, December 6, 11
52. Tag Equity
TQ(Java)=30 TQ(Java)=30
TQ(Ruby)=20 TQ(Ruby)=40
Info 1 Info 2 Info 3 Info 4
IQ=10 IQ=20 IQ=30 IQ=40
Java
Java Ruby
Ruby
TQ=30
TQ=60 TQ=20
TQ=70
Tuesday, December 6, 11
53. Use Case: SunSpace - Sun Microsystems
Social Enterprise Framework for Global Sales & Services
25,000+ users
150’000+ content items
12+ millions social activities
10x growth within first 6 month
Community Equity implemented since 2008
Tuesday, December 6, 11
61. User Profile (WIIFM)
Social Ranking
Recognition (Incentive)
Expertise and Skills discovery
Tuesday, December 6, 11
62. What’s In It For Me (WIIFM)
Value Business: RoI, Users: WIIFM
Adoption Process / Methodology
Technology Enterprise Architecture
Tuesday, December 6, 11
63. What’s In It For Me (WIIFM)
Value Business: RoI, Users: WIIFM
Social Adoption
model
Adoption Process / Methodology
Technology Enterprise Architecture
Tuesday, December 6, 11
66. Targeted Social Adoption Models
Next Fiscal year - you can
choose between:
Sales Team Tech Team
Tuesday, December 6, 11
67. Targeted Social Adoption Models
Next Fiscal year - you can
choose between:
5% more salary
Sales Team Tech Team
Tuesday, December 6, 11
68. Targeted Social Adoption Models
Next Fiscal year - you can
choose between:
5% more salary
or
work on a cool project
Sales Team Tech Team
Tuesday, December 6, 11
69. Use Case: Technology Leadership - Sun
Fellow
Principal
Senior Engineer
Engineer
Tuesday, December 6, 11
70. Use Case: Technology Leadership - Sun
Fellow
Principal
HR Levels
Senior Engineer
Engineer
Tuesday, December 6, 11
71. Use Case: Technology Leadership - Sun
Fellow
Principal
HR Levels HR Promotion Process
Senior Engineer
Engineer
Tuesday, December 6, 11
72. Use Case: Technology Leadership - Sun
Fellow
Peer Review
Principal
HR Levels HR Promotion Process
Senior Engineer
Engineer
Tuesday, December 6, 11
73. Use Case: Technology Leadership - Sun
Fellow
Peer Review
Principal
Candidate Pipeline Criteria's
Internal Outreach
External Outreach HR Levels HR Promotion Process
Senior Engineer
Intellectual Properties
....
....
Over average Community Equity
Engineer
Tuesday, December 6, 11
74. Thanks !
peter.reiser@oracle.com
http://blogs.oracle.com/peterreiser
http://twitter.com/peterreiser
Tuesday, December 6, 11