social roi and value modeling

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Peter H. ReiserPrincipal Architect, Oracle

Community Equity - How to build vibrant communities

McKinsey's BTO meeting

December 2011

Tuesday, December 6, 11

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.


What is Enterprise 2. 0 ?

How to build vibrant communities

Internal Employees

External CustomerPartnersSuppliers

Web 2.0Social Media


The Enterprise 2.0 dilemma

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)?

Business View

What is the business case?

How to integrate social & communities into our existing business processes ?

What is the RoI?

Communities are a “good thing” BUT...


What if we can prove to the business the

RoI of Communities(aka Enterprise 2.0)

AND

have answers for the users on

WIIFM?


How ?



Technology

Adoption

Value



Technology

Adoption

Value

Enterprise Architecture



Technology

Adoption

Value


Process / Methodology



Technology

Adoption

Value



Business: RoI, Users: WIIFM


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


Core Business Processes

ProductCreation

Opportunity Mngt.

BID Mngt. Delivery Product

Creation Opportunity

Mngt.BID

Mngt. Delivery Support


Business Processes and Applications

ProductCreation

Opportunity Mngt.



Mngt.BID



Social Enterprise Community Framework

Social Enterprise Community Framework

ProductCreation

Opportunity Mngt.



Mngt.BID



Business/Communities Metrics

Social Enterprise Framework

ProductCreation

Opportunity Mngt.

BID Mngt.

ProductCreation Delivery BID

Mngt. Delivery Support Opportunity Mngt.


Re-Use of Content in Opportunity Management

and Project Delivery

Use Case: AIM KMS - Sun Microsystems


Re-Use of Documents

Project 1 Project 2

Project 3

Re-Use

Enterprise Community and Collaboration Framework (AIM KMS & SunSpace)


Re-Use compared to Win Rate and Margin

Opportunity Mngt.


Creation Delivery Support

Enterprise Social and Community Framework (AIM KMS & SunSpace)

Win Rate

Forecast Margin


RoI on Communities (Sun Microsystems)

Up to 14 % better win rate Up to 20% higher project margin


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


Social & Business Value per Document

Social Values Downloads

Ratings

Re-Use

Business ValuesWins

Revenue

Hours saved


Measuring Social Capital


Community Equity


Community Equity

DocumentsWiki

BlogsPatents

Contribution


Community Equity

DocumentsWiki

BlogsPatents

Contribution

RateCommentRe-use

Tags

Participation


Community Equity

DocumentsWiki

BlogsPatents

Contribution

RateCommentRe-use

Tags

Participation

Education Skills

Reputation

Skill


Community Equity

DocumentsWiki

BlogsPatents

Contribution

RateCommentRe-use

Tags

Participation

Education Skills

Reputation

Skill

BusinessCommunities

Role


Community Equity

DocumentsWiki

BlogsPatents

Contribution

RateCommentRe-use

Tags

Participation

Education Skills

Reputation

Skill

BusinessCommunities

Role PersonalEquity

Personal


Community Equity Mathematical Model Object Activity | Contribution - Aging | Partipation - Aging


Information Equity

Content Activities Community


Information Equity

Content

createmodifydownloadviewratecommenttag

Activities Community


Personal Equity

My Community Equity Activities Me

Community


Personal Equity

My Community EquityContributioncreatemodifytag

Activities Me

Community


Personal Equity

My Community EquityContributioncreatemodifytag

Activities Me

Community Participationviewratecommentreuse


Tag Equity


Tag Equity

Info 1IQ=10


Tag Equity

Info 1IQ=10

JavaTQ=10


Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=10


Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=10

RubyTQ=20

JavaTQ=30


Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=10

TQ(Java)=30TQ(Ruby)=20

RubyTQ=20

JavaTQ=30


Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20



Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30



Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30


JavaTQ=60


Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30


Info 4 IQ=40

JavaTQ=60


Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30


Info 4 IQ=40

JavaTQ=60

RubyTQ=70


Tag Equity

Info 1IQ=10

Info 2IQ=20

JavaTQ=30

RubyTQ=20

Info 3 IQ=30


Info 4 IQ=40


JavaTQ=60

RubyTQ=70


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


27

Information Ranking


28

Expert Discovery


Trend Discovery


Better Enterprise Search



Better search results



Personalized Recommendations




Personalized Recommendations

Expertise Discovery



User Profile (WIIFM)

Social Ranking

Recognition (Incentive)

Expertise and Skills discovery


What’s In It For Me (WIIFM)

Technology

Adoption

Value



Business: RoI, Users: WIIFM


What’s In It For Me (WIIFM)

Technology

Adoption

Value



Business: RoI, Users: WIIFMSocial Adoption model


Targeted Social Adoption Models



Sales Team Tech Team




Next Fiscal year - you can choose between:




Next Fiscal year - you can choose between: 5% more salary




Next Fiscal year - you can choose between: 5% more salary

or work on a cool project


Use Case: Technology Leadership - Sun

Engineer

Principal

Fellow

Senior Engineer



Engineer

Principal

Fellow

Senior Engineer HR Levels



Engineer

Principal

Fellow

Senior Engineer HR Levels HR Promotion Process



Engineer

Principal

Fellow


Peer Review



Engineer

Principal

Fellow


Peer Review

Candidate Pipeline Criteria's

Internal OutreachExternal OutreachIntellectual Properties ........Over average Community Equity


Thanks !

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