This talk covers how to create value with social media through cost reduction, revenue enhancement, and innovation. It also says why social media is here to stay due to the phenomenon of the the "three clouds" -- connectivity, resources & social.

1. Reinventing the Customer Edge: Social Media and Innovation in the Enterprise CIO Perspectives San Francisco September 23, 2009 Dr. John J. Sviokla john.sviokla@diamondconsultants.com blog: www.sviokla.com Harvard blog: blogs.harvardbusiness.org/sviokla/ twitter: jjsviokla cell: 617.510.3565 Creative Commons License: Attribution needed, derivative works allowed for non-commercial activities

3. CIO Focus – Personal or Organizational?1 Social Networks and the CIO

5. Innovation

6. Training

7. Customer Relationships

8. Customer Service

9. Innovation

11. Values

12. Communication

13. Corporate and Personal Brand Building

14. CIO Career Development

15. NetworkingPersonal External Internal Community Source: www.ciodashboard.com, Diamond Management & Technology Consultants

16. Social Networks and the CIO Today’s Focus is Reinventing the Edge Customer Impact. Learning Customer Impact! Organizational CIO Focus Communication Career Personal External Internal Community Source: www.ciodashboard.com, Diamond Management & Technology Consultants

17. Social Networks and the CIO 3-Clouds Internet… a connectivity utility – Capitalism by its nature connects Cloud 1 Source: David Reed

18. Social Networks and the CIO The exploding Internet

19. Social Networks and the CIO 3-Clouds Cloud computing ... a resource utility – competition brings new resources Cloud 2 Cloud 1 Source: David Reed

20. Social Networks and the CIO “As we may think…” -- Vannevar Bush

21. As Director of the Office of Scientific Research and Development, Dr. Vannevar Bush has coordinated the activities of some six thousand leading American scientists in the application of science to warfare. In this significant article he holds up an incentive for scientists when the fighting has ceased. He urges that men of science should then turn to the massive task of making more accessible our bewildering store of knowledge. For years inventions have extended man's physical powers rather than the powers of his mind. Trip hammers that multiply the fists, microscopes that sharpen the eye, and engines of destruction and detection are new results, but not the end results, of modern science. Now, says Dr. Bush, instruments are at hand which, if properly developed, will give man access to and command over the inherited knowledge of the ages. The perfection of these pacific instruments should be the first objective of our scientists as they emerge from their war work. Like Emerson's famous address of 1837 on "The American Scholar," this paper by Dr. Bush calls for a new relationship between thinking man and the sum of our knowledge. Social Networks and the CIO “As we may think…” -- Vannevar Bush Optional Slide Source: the Atlantic, http://www.theatlantic.com/doc/194507/bush

22. Social Networks and the CIO 3-Clouds: Mobile, Social, Ubiquitous… The 3rd cloud –mobile, social interaction utility – Human connection is the Killer App of all Killer Apps Cloud 2 Cloud 1 Cloud 3 Source: David Reed

23. Social Networks and the CIO David Reed: The power of group forming networks…

24. Social Networks and the CIO David Reed: The power of group forming networks… Optional Slide

25. Social Networks and the CIO Expectations of the Market: Can you meet the Woodruff Standard? Coca Cola will be within arms length of desire…

26. Social Networks and the CIO Today’s Focus is Reinventing the Edge Customer Impact. Learning Dell Southwest Avon Broadridge Organizational CIO Focus Communication Career Personal External Internal Community Source: www.ciodashboard.com, Diamond Management & Technology Consultants

27. Social Communities and Allstate Financial What are my goals for social media in the short term, medium term and long term? Quantitative Benefit Improve Sales Efficiency Qualitative Benefit Agent Recruiting/Retention Improve Productivity Improve Advertising Effectiveness Amplified Range &Reach Customer Self Service Benefits Cost Reduction Faster/Cheaper Documentation Revenue Increase Increase Average Order Size Word of Mouth Leverage Customer Satisfaction React to Changing Needs Innovation

29. The question and answers threads are archived and easily searchable

30. The US monthly unique visitors are ~1 MillionSource: Diamond Analysis, Forrester Research.

31. Social Communities and Allstate Financial Southwest Airline’s communities My Space Eons Facebook Travel Community Orkut You Tube

32. Social Communities and Allstate Financial Southwest Airline’s communities (continued)

33. Social Communities and Allstate Financial Avon Representatives are already using different social media tools to promote their business facebook MySpace Orkut Blogs Eons YouTube

34. Social Networks and the CIO BroadridgeInvestory Network

36. User generated content will be easily accessible, aggregated with “professional” data and structured in a personalized manner for users

37. Interactions make users members of a community instead of just customers*For additional examples of personal financial management and financial social networking sites, see appendix slides 24-48.

38. Social Communities and Allstate Financial It’s all about profitable growth! Quantitative Benefit Improve Sales Efficiency Qualitative Benefit Agent Recruiting/Retention Improve Productivity Improve Advertising Effectiveness Amplified Range &Reach Customer Self Service Benefits Cost Reduction Faster/Cheaper Documentation Revenue Increase Increase Average Order Size Word of Mouth Leverage Customer Satisfaction React to Changing Needs Innovation

39. Social Communities and Allstate Financial Enough about the Company – what about YOU?

40. Social Networks and the CIO Lower costs increase yield… Profitable growth Organizational CIO Focus Status & Power Employability Personal External Internal Community Source: www.ciodashboard.com, Diamond Management & Technology Consultants

41. Those entitles that are more highly interconnected learn faster… Those societies that have deeper means to absorb and share risk grow faster and better… Those individuals who connect and enjoy life with friends live longer, and happier… The Three Clouds are the Natural Next Evolution of our Species