Tribalization of Business
No commentsThe ‘2008 Tribalization of Business’ study conducted by Beeline Labs, Deloitte and Society of New Communication looks at how companies are harnessing the collective wisdom (collaborating with employees and customers) to innovate faster, reduce costs, grow the business and bolster the bottom line.
You have to register to get the entire study. But the major takeaways from the study is as follows:
Communities are about Delivering Game-Changing Results
- Communities can increase revenue per customer dramatically, i.e., 50%
- Communities will increase product introduction success ratios
- Communities amplify everything you do- increasing effectiveness and decreasing costs
The Rise of the CMO 2.0?
- Communities should be an important part of the CMO’s toolset (but for many large companies - there is an under-investment and scale problem)
- Companies should evolve the role of the CMO into Chief Community Officer (but that will require drastic changes in attitude and approach to marketing)
- If done properly, communities will transform the way marketing works (reduced costs, improved effectiveness, new opportunities)
The Need for New Management Thinking
- Mismatch between community goals and associated investments
- Major gaps between Community Goals and what is being measured
- Communities have yet to combine with major talent initiatives
- Communities will transform most business processes
The Worst Practices Enjoy Wide Adoption
- The “build it and they will come” fallacy
- The “let’s keep it small so it doesn’t move the needle” phenomenon
And quantitative Results are as follows
- 37% of the communities have been running for 6 months or less
- 27% of the communities have 101-500 members (37% have less than 100)
- 13% of the communities are run by 2-5 full-time managers
- 6% of the companies surveyed are spending more than $1 million annually
- 52% of the companies surveyed plan to increase spending on community
You will find more quantitative results are here(@ SlideShare.net). There is one slide that caught my attention. I have shown that slide below.
As you can see these community/Web 2.0 initiative is mainly owned by Marketing Department. IT department is distant 4th in the ranking. Shouldn’t IT be involved in these strategic initiatives? I think Marketing is a great organization to drive the ‘external facing’ community based initiative. But I strongly feel that it should be done in collaboration with IT department. These ‘Greenfield’ projects, are easy to start (they always are). But as the scope and scale of these applications begins to expand, entropy sets in and these applications begin to have high sustaining costs. The usability of that Web 2.0 application also begins to diminish. Also, myriads of these collaboration application initiative started by different organization needs to be consolidated over the period. No organization will take that lead other than IT. So, organizations need to collaborate with IT department in building these collaborative applications.
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Wednesday, July 23rd, 2008 at 3:15 pm and is filed under Marketing Strategy, Project Management, Web 2.0, IT Management, Collaboration. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
