AAFA Joint Supply Chain / Information Systems Committee Meeting. April 16, 2012
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1 AAFA Joint Supply Chain / Information Systems Committee Meeting April 16, 2012
2 Agenda Current overview of the state of social media 3 Things to Take Home Next Gen Social Media Monitoring Open Innovation Big Data & Social Media Wrap-up & questions Copyright 2012 Accenture. All rights reserved. 2
3 Digital Landscape 590 million million The Geosocial Universe 4.6 Billion Mobile devices globally 126 million Sources: UK Independent, CIA Factbook, compete.com 360 million 173 million 284 million Social Media 7 new Internet users per second versus 2.3 births per second globally 346 million people globally read blogs 200+ million tweets on Twitter per day 57% of Twitter s users located in USA 740 million on Facebook, 200+m on Twitter 80% of Gen Y versus 20% of Boomers connect with people on Social Media 25% of search engine results for top 25 brands link to user generated content 78% trust peer recommendations US Internet users 240 MM users in USA 77% of population Internet penetration hits 90%: 100 MM USA household 67% are broadband connections ecommerce USA Web sales $253 Billion in 2010 Forecast $1 trillion globally by % of offline sales are influenced online Copyright 2011 Accenture All Rights Reserved.
4 Hyper Growth of Social Operating Systems US Share of Time Spent Online Source: Citi Investment, Research and Analysis (September 2011) 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Q Q Copyright 2011 Accenture All Rights Reserved.
5 Where Does That Put Us Ten Year Computing Cycles 10x more users with each cycle 2010 Post PC Revolution Social Apps 2000s Mobile Cloud Computing Mobile Apps 1990s Desktop Computing Web Apps 1980s Client/server Computing Process Automation Apps 1970s Mini Computing Business Logic Apps 1960s Mainframe Computing Data Management Apps Source: Salesforce.com 2011 Copyright 2011 Accenture All Rights Reserved.
6 What is Social Media? (Technology Enabled Interactions) Social media is an umbrella term used to describe the various technology enabled interactions within organizations as well as with customers and stakeholders. Peer-Peer Interaction Information sharing Relationship building Opinion sharing Discussion Idea sharing Complaints Questions Jokes Gossip News, etc Outside Employee-Customer Interaction Information sharing Relationship building Opinion sharing Discussion Idea sharing Complaints Questions Data Collection/Mining Sentiment Monitoring Brand association monitoring Inside Employee-Employee Interaction Information sharing Relationship building Opinion sharing Discussion Idea sharing Questions News Which interactions are you looking to enable, support and manage Copyright 2012 Accenture. All rights reserved.
7 The New Enterprise Social Business Social media should be changing your perspective Traditional Actions Surveys Marcom/ Branding Service Employees Innovation Research Emerging Actions Conversion & Relationships Relevance Experience Social Capital Outcomes (not Ideas) Insights Social media is driving efficiencies by better utilizing our networks of employees, customers, suppliers, distributors. Copyright 2012 Accenture. All rights reserved.
8 Social Media Definition & Perspective A Social Perspective What will the world be like in the next 5 years? Facebook becomes the primary CRM tool for the enterprise Customer sentiment no longer done with focus groups, but rather by crowd sourcing Call Centers disappear as customers get answers from peers and Facebook pages. Recruiters replaced by LinkedIn for finding and assessing talent. Chief Strategy Officers no longer generate ideas, but instead take the million of ideas available and turn them into products that test market through these networks. Handheld devices to replace cash, coupons and paper advertisements Copyright 2011 Accenture All Rights Reserved. 8
9 Agenda Current overview of the state of social media 3 Things to Take Home Next Gen Social Media Monitoring Open Innovation Big Data & Social Media Wrap-up & questions Copyright 2012 Accenture. All rights reserved. 9
10 Next Generation of Social Media Monitoring 1. Sensing Data (What) 2. Decisioning Data (Now What) 3. Enterprise Integration (So What) Copyright 2012 Accenture. All rights reserved.
11 Social Media Monitoring Copyright 2012 Accenture. All rights reserved.
12 Social Data Cabelas (from Bazaarvoice) Innovation Identify influential advocates to participate in Customer Seed Program to test new products and reduce time to market. Marketing Use segmentation information to identify the right products for the right people with the right message Product Development At a glance, identify opportunities to improve products in the existing portfolio with specific areas of improvement. Customer Partnerships Partner with retail channels to increase sales through merchandising insights based on consumer needs. Copyright 2012 Accenture. All rights reserved. 12
13 Social Data 3M Scotchbrite (from Bazaarvoice) clean dish leaks food scrub wand rubber sink water sponge soap button detergent handle Copyright 2012 Accenture. All rights reserved. 13
14 Conversations Influence $265M+ in Annual Revenue for The Home Depot Revenue Impact of Shopper Engagement with Conversations: 142% conversion lift 146% lift in visitor average order value 45% of store visitors pay a visit to HomeDepot.com first, Hal Lawton, President of HomeDepot.com Source: Bazaarvoice, Inc. Customer Credential Vendor Network Amplifies Impact 60 strategic vendors networked to answer questions o o 10,000 Q&A generated since May 2011 A/B Test on one vendor delivered: Conversion rate:+ 15% Revenue per customer: + 19% Annual incremental revenue ~$5.2M Copyright 2012 Accenture. All rights reserved. 14
15 Agenda Current overview of the state of social media 3 Things to Take Home Next Gen Social Media Monitoring Open Innovation Big Data & Social Media Wrap-up & questions Copyright 2012 Accenture. All rights reserved. 15
16 Today s cut-throat competitive environment requires new levels of innovation performance to drive organic growth Technology Developments, Customer Education and Competitive Intensity have dramatically increased the importance of innovation for business success Speed of innovation continuously shortens product/service life cycles Consumer Electronics Breakthrough innovation is increasingly rendering established business models obsolete Music Industry vs. itunes X much faster pace even in newly established industries Telecommunications Bookstores vs. Amazon.com X Business Process Outsourcing Fast Fashion Blockbuster vs. Netflix X Budget Airlines Copyright 2012 Accenture. All rights reserved. 16
17 but high performers think of innovation beyond products and across the value stream New ways to generate and capture value Superior functionality per unit of cost Integrated set of offerings, drawing from common capabilities New ways of reaching and delivering value to customers and consumers Business Models Supply Chain Products Services Platforms Channels Brands & Channels Marketing Customer Experience New models for sourcing, development and / or manufacturing Assets, technologies and Support Processes New services which expand the market and create more value Value creation though brand image and intent Value creation through unique customer experience: pre, during and post sale. Copyright 2012 Accenture. All rights reserved. 17
18 Innovation requires more than tools Moving from a closed approach to innovation Silos of Information and Islands of Ideas Communication between ideas is linear, Chance plays large role Middle Management are gate-keepers Often constrain change Different Process, Diverse rules, Duplicate efforts Little governance. Copyright 2012 Accenture. All rights reserved. 18
19 People and process need to change too to an Open Innovation approach Experts collaboration on solutions not just departments Continuous loop of communication, pipeline of innovation creates predictability Culture and process encourages and enables change Transparency mitigates risks Copyright 2012 Accenture. All rights reserved. 19
20 Many companies are exploiting Open Innovation as an effective means to innovate more and innovate faster With Open Innovation, companies have entered a new era with an unlimited pool of potential partners, which also generates huge operational challenges. - Accenture & i7 Institute, Open Innovation: what s behind the buzzword? R&D Suppliers / trusted partners Other internal Customers Public Private solvers Independent Entrepreneurs Venture capital Customers Providers Channel partners Alliances Contract labs Government labs Academia and institutes Joint development partners Suppliers Retirees Front-line employees Online community for enterpreneurs to foster innovationoriented debates Customers invited at a dedicated lab branch to test and develop innovations on the field Innovation contests for high school and college students to gather innovative ideas Creation of an internal platform to promote and vote for innovations proposed by employees Copyright 2012 Accenture. All rights reserved. 20
21 Use of social in the traditional innovation pipeline G1 G2 G3 G4 Use of Social Media group to generate and develop ideas Leveraging of a distributed virtual labor pool, available on demand to fulfill a range of tasks from simple to complex Activated judgments in Social Media to organize vast quantities of information Use of Social Media to test specific features of selected ideas Development of communities trough active engagement of individuals to increase brand awareness and build loyalty Copyright 2012 Accenture. All rights reserved. 21
22 Agenda Current overview of the state of social media 3 Things to Take Home Next Gen Social Media Monitoring Open Innovation Big Data & Social Media Wrap-up & questions Copyright 2012 Accenture. All rights reserved. 22
23 INTERESTS Copyright 2012 Accenture. All rights reserved. Social Data - What Every Facebook Customer Represents FRIENDS Page Likes Network RSVPs Check-ins Profile Name Age Gender Orientation Marital Family Residence Education Employer Title DEMOGRAPHIC LOCATIONS / EVENTS
24 Value of the Relationship: Social Data Copyright 2011 Accenture All Rights Reserved. 24
25 Value of a Partner Ecosystem Copyright 2011 Accenture All Rights Reserved. 25
26 3 Major Initiatives Mobile Loyalty Facebook Truly Compelling Customer Application Personalized Offers & Perks GUESS Community Personalized Experience 26
27 Thank You! Jason Copyright 2011 Accenture All Rights Reserved. 27
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