Henley Business School

University of Reading

“Preparing the Enterprise Organization for Social Media Strategy –

Key considerations in evolving Social Business behaviors and
Enterprise 2.0”

By Alex Bennett
alex@bennett.uk.com
Student number: 2106734
Word Count: 18700

Management Challenge submitted in partial fulfillment of the

requirements for the degree of Master of Business Administration

1  
Thanks

I would like to thank my colleagues at Henley for the MBA experience, the
laughs along the way and the amazing support in testing times. I would
also like to thank my research sponsors and, of course, the continual
encouragement and support of my family.

2  
Executive Summary

Enterprises are facing a new and evolving marketing challenge -

preparing for and understanding the significance of Social Media (SM), its
impact upon business operations and its relevancy to commerce in the
digital age. Enterprises need to develop a position on SM strategy by
understanding the potential benefits of this rapidly evolving SM
phenomenon to unlock value and leverage new internal social business
behaviors and external marketing benefit. This includes appreciating the
potential of SM (as a concept) and the longer-term benefits. These being,
that SM can provide competitive advantage through increasing internal
efficiency and knowledge collaboration, in alliance with creating vastly
improved customer and staff relationships. Potentially, SM strategy
preparation can lead to new social business behaviors and working
paradigms that can lay the foundations of developing Enterprise 2.0
operations1. In this context, preparing for SM is much more than just
looking at SM technology and tactical inclusion to the external marketing
mix.

This research presents a critique of academic Marketing and

contemporary SM sources to provide new SM theory based on case
study analysis of Canon, Cisco and NixonMcInnes. This includes the
inter-relationship between SM and Relationship Marketing (RM) and
Service Dominant Logic (SDL).

SM strategy consideration is not much about the latest marketing trends

and being commercially ‘cool’. Instead, strategic preparation involves
appreciating the multiple and inter-related SM business drivers that have
an effect on new social business models, internal resources and
managerial structures. The development of Enterprise 2.0 requires
considerations of culture, internal relationships, leadership sponsorship
and internal social behavioral change to accommodate both the SM
                                                                                                               
1
Enterprise 2.0 can be defined as the use of SM technologies and services in a
corporate (Enterprise) setting (Furness, 2008).

3  
strategy and the application of SM tools. SM benefit and value is not
created from a ‘plug and play’ adoption of SM tools; SM strategy requires
developing a new set of skilled internal resources and new SM cultural
behaviors. Enterprises must recognize that although many SM tools are
cheap or even free, it is the resource operating the SM tools and the skill
in managing and interpreting the landscape that requires financing. You
cannot build a SM culture on SM tools and technologies alone. Here,
arguably, a SM strategy that considers social business behaviours
supports the natural progression of RM, enabled through SM technology,
bringing the SDL model to life through a continuous flow of knowledge,
information and value exchange.

Importantly, external SM interaction without internal social business

capabilities to communicate, often leads to tactical external SM activity
providing no value. Changing to a social business, therefore, unlocks
potential Enterprise SM value for the future. Importantly, SM value must
be measured in tangible terms through the tools of SM to listen to the ‘SM
community’, move knowledge across the Enterprise and derive value by
understanding key value ‘practices’ performed through internal and
external SM activity.

Defining the business purpose of engaging in SM channels is critical. This

will naturally lead to an understanding of the best SM tools for that
purpose, which may include the rollout of formalized Social Business
Software and will create and nurture an environment that supports the
usage of SM in the workplace. Senior management leading by example
helps realign traditional ‘knowledge is power’ hierarchies. Internal
relationship development can be driven by the adoption of a collaboration
culture and knowledge exchange through Enterprise 2.0 SM behaviors.
Therefore, the success of SM strategy will depend on recruiting new SM
strategists and SM resource, selecting the right supporting SM agencies,
amending existing job roles, developing new HR SM policy and securing
leadership buy.

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By these methods, an effective SM strategy pertains to preparing your
Enterprise for a new era of online communication commerce, adapted to
new business processes, social behaviors and perspectives that can
deliver competitive advantage.

5  
  

Table  of  Contents  

Thanks ..........................................................................................................2  
Executive Summary ....................................................................................3  
Introduction................................................................................................10  
Focus of the study............................................................................................................................... 10  
Background............................................................................................................................................. 15  
Context...................................................................................................................................................... 18  
The Importance and Relevance of the Investigation ........................................................ 20  
Sponsoring Research Organizations ........................................................................................ 21  
Research Parameters ....................................................................................................................... 22  
Personal Objectives ........................................................................................................................... 23  
Overview and Structure of Key Contents of The Report ................................................ 24  
Literature Review ......................................................................................25  
Introduction ............................................................................................................................................. 25  
The Definition of Social Media...................................................................................................... 26  
A Definition of Enterprise 2.0 – The ‘Social Business’..................................................... 27  
Enterprise 2.0 and Control.............................................................................................................. 29  
Enterprise 2.0 and Social Media Technology....................................................................... 30  
Social Media Recognition by Enterprises ............................................................................... 31  
Social Media in the Context of Marketing ............................................................................... 34  
Driving Behavioral Forces behind Social Media ................................................................. 36  
The Importance of Social Media Communities to Enterprises .................................... 38  
Internal Culture, Internal Relationships and Social Media Strategy ......................... 39  
Current Enterprise Social Media Strategy Activity ............................................................. 40  
Strategic Research Models ............................................................................................................ 43  
E-V-R Congruence (Analysis)....................................................................................................... 44  
A Social Media Strategy Model - POST .................................................................................. 45  
Social Media Strategic Performance Value to Enterprises............................................ 46  
Understanding the Concept of Social Media Value........................................................... 47  
Social Media and Service Dominant Logic (SDL) .............................................................. 51  
Social Media Value Practices ....................................................................................................... 53  
Literature Review Conclusions..................................................................................................... 55  
Investigation Design .................................................................................56  
Objectives of the Investigation...................................................................................................... 56  
Justification of Investigation Design .......................................................................................... 58  
Research Philosophy and Approach......................................................................................... 60  
Research Strategy .............................................................................................................................. 61  
Research Time Horizons................................................................................................................. 63  
Research Methodology and Structure...................................................................................... 64  
Research Techniques and Data Collection ........................................................................... 65  
Investigation Findings and Analysis......................................................71  
Canon UK and Ireland Case Study Background ................................................................ 71  
Canon’s Market Proposition........................................................................................................... 71  
Canon’s Social Media Position..................................................................................................... 72  
CBS Marketing Background .......................................................................................................... 73  
CBS Culture and Internal Environment.................................................................................... 74  
Think Tank Session - July ‘09....................................................................................................... 76  
Canon Interviews................................................................................................................................. 80  
Environment...........................................................................................................................................80  

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 Values .......................................................................................................................................................82  
Resources...............................................................................................................................................84  
Canon EVR Congruence Diagram ...........................................................................................85  
Graphical Interview Interpretation............................................................................................... 87  
Cisco Interviews ................................................................................................................................... 90  
Environment...........................................................................................................................................90  
Values........................................................................................................................................................ 91  
Resources...............................................................................................................................................93  
EVR Congruence Diagram ...........................................................................................................94  
Graphical Interview Interpretation............................................................................................... 95  
NixonMcInnes Interviews ................................................................................................................ 98  
Environment...........................................................................................................................................98  
Values .......................................................................................................................................................99  
Resources............................................................................................................................................ 101  
EVR Congruence Diagram...........................................................................................................102  
Graphical Interview Interpretation.............................................................................................103  
Comparing and Contrasting Graphical Interview Interpretation................................107  
Conclusion ...............................................................................................111  
Social Media Strategy Conclusion Model .............................................................................113  
Leadership Support and Engagement ...................................................................................114  
Developing Social Media Culture, People and Behaviors ...........................................115  
Implementing Social Media and Enterprise 2.0 Tools....................................................116  
Social Media Knowledge ...............................................................................................................117  
Social Media Value, Service Co-creation & Knowledge Exchange Ethos ..........118  
Recommendations ..................................................................................120  
References ...............................................................................................128  
Appendices ..............................................................................................134  
 

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Table of Figures

Figure 1 - Source: Pingdom, 2010...........................................................11

Figure 2 - Source: Pingdom, 2010...........................................................11
Figure 3 - Source: Pingdom, 2010...........................................................12
Figure 4 ...................................................................................................................................... 13  
Figure 5 - Source: Neilson, 2010 .................................................................................. 15  
Figure 6 - Source: Neilson, 2010 .................................................................................. 16  
Figure 7 - Source: Neilson, 2010 .................................................................................. 16  
Figure 8 – Source: Bernhoff, 2010............................................................................... 17  
Figure 9 ...................................................................................................................................... 23  
Figure 10.................................................................................................................................... 28  
Figure 11 - Source: Ramos, 2009 ................................................................................ 31  
Figure 12 - Source: Owyang, 2009.............................................................................. 32  
Figure 13 - Source: Owyang, 2009.............................................................................. 32  
Figure 14.................................................................................................................................... 40  
Figure 15.................................................................................................................................... 41  
Figure 16.................................................................................................................................... 42  
Figure 17 - Source: Tovstiga, 2008 ............................................................................. 43  
Figure 18 - Source: Based on Thompson & Martin, 2005 ............................... 44  
Figure 19.................................................................................................................................... 45  
Figure 20 - Source: Schau et al., 2009...................................................................... 53  
Figure 21 - Source: Saunders et al, 2008 ................................................................ 58  
Figure 22 - Interviewees.................................................................................................... 67  
Figure 23 – Interview Questions ................................................................................... 70  
Figure 24 – Source: Canon Web Site, 2010........................................................... 74  
Figure 25 - Source: Canon Web Site, 2010 ............................................................ 75  
Figure 26.................................................................................................................................... 76  
Figure 27.................................................................................................................................... 77  
Figure 28.................................................................................................................................... 78  
Figure 29.................................................................................................................................... 85  
Figure 30 – SWOT Analysis of Canon....................................................................... 86  
Figure 32.................................................................................................................................... 87  
Figure 31 - A) Questions ................................................................................................... 89  
Figure 34.................................................................................................................................... 88  
Figure 33 - B) Themes ....................................................................................................... 90  
Figure 35.................................................................................................................................... 94  
Figure 37.................................................................................................................................... 95  
Figure 36 - A) Questions ................................................................................................... 97  
Figure 38 - B) Themes ....................................................................................................... 98  
Figure 39..................................................................................................................................102  
Figure 40 - A) Questions .................................................................................................105  
Figure 41..................................................................................................................................104  
Figure 43..................................................................................................................................105  
Figure 42 - B) Themes .....................................................................................................107  
Figure 44 – A) Questions Comparison ....................................................................107  
Figure 45 - A) Question Comparison Overlay......................................................108  
Figure 46 - B) Themes Comparison..........................................................................109  
Figure 47 - B) Themes Comparison Overlay........................................................109  
Figure 48 - Alex Bennett SM Strategy Model.......................................................113  

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Figure 49 – Alex Bennett SM Strategy Model Overlaid on Internal
Functions .......................................................................................................................120  
Figure 50..................................................................................................................................122  
Figure 51 – Example SM Activity Theme Objectives .......................................123  
Figure 52..................................................................................................................................124  
Figure 53..................................................................................................................................126  
Figure 54 – SM Value Creation. Source: Schau et al., 2009 .......................127  
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Figure 71....................................................................... Error!  Bookmark  not  defined.  

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Introduction

Focus of the study

The rapid increase of global Social Media2 (SM) usage has presented
Enterprises3 with a new and important strategic challenge –
understanding how and why this is important and relevant to their
business operations.

Mass SM adoption and user participation has led business marketers to

begin the process of assessing the potential opportunity and the impact of
SM has upon their individual business models. Understanding how to
prepare for the development of SM strategy and its relevancy to each
Enterprise is now a pressing concern. Furthermore, the speed of SM
adoption and usage has further heightened the pressure on Enterprises
to develop a SM strategy or position, either by ruling it in or out. The
following example contextualizes this SM growth, mapping the incredible
rise of global Facebook (a social networking site) users, the user forecast
to 2011, and relative number of its users against country populations.

                                                                                                               
2
Social Media is a term used to describe the type of media that is based on
conversation and interaction between people online. Where media means digital words,
sounds and pictures, which are typically shared via the Internet, and the value can be
cultural, societal or even financial. (Wikipedia, 2010)  
3
For this research the context of the Enterprise is an organization, a company, an
association or a government agency that conducts business in Business-to-Business
(B2B), Business-to-Consumer (B2C) environments, or both.

10  
Figure 1 - Source: Pingdom, 2010

Figure 2 - Source: Pingdom, 2010

11  
Figure 3 - Source: Pingdom, 2010

Whilst many marketers and business leaders now recognize that

evaluating the impact of SM for individual Enterprises is important, the
context and relevancy for business remains open to interpretation. Is SM
just another consumer fad or phenomenon? Is it a new tactical
communication form that could be used to connect with customers? Or
does it have deeper strategic implications in the way Enterprises can, will
and must operate in the future?

Enterprises have traditionally used marketing activity to create meaningful

relationships and engage with suppliers and customers. This has
supported commercial objectives and the development of brand
recognition. SM now offers Enterprises a new form of marketing
communication that can potentially support sales generation and the
delivery of marketing objectives such as customer awareness, advocacy
and loyalty. Forrester Research suggest that companies are adopting

12  
‘Web 2.0’4 (often used as an early SM term) technology for the following
reasons:

Figure 4

However, is SM more than just marketing and technology strategy? Now

in 2010, at arguably the peak of the SM ‘hype’, Enterprises need to
review and conclude their SM strategic direction with marketing staff,
wider internal business teams and external SM strategy agencies. The
critical challenge is how Enterprises prepare for SM strategy. They need
to understand the key considerations related to traditional marketing and
consider the deeper cross-Enterprise value, benefits and internal
challenges.

Importantly, interacting in the SM space requires Enterprises and their

employees to start operating in a new ‘social’ manner. A new set of SM

                                                                                                               
4   The term "Web 2.0" is commonly associated with web applications that facilitate

interactive information sharing, interoperability, user-centred design, and collaboration

on the World Wide Web. Examples of Web 2.0 include web-based communities, hosted
services, web applications, social-networking sites, video-sharing sites, wikis, blogs,
mashups, and folksonomies. (Wikipedia, 2010)  

13  
skills needs to be nurtured, perhaps changing the existing structures of
business behaviors and operations. This includes understanding the
value of SM, how to use SM and why it will benefit employees in their job
function. Furthermore, Enterprises will need to develop a greater
understanding of the potential advantages in connecting to customers
and other employees within the Enterprise.

This, of course, has an impact on the internal culture and employee

operations. Does SM strategy require an evaluation of people, behaviors,
Enterprise objectives and technology analysis? Does SM strategy
preparation include the consideration of altering exiting business models
and shaping the Enterprise into a new ‘Social Business Design’?

Contemporary thinking suggests that in preparing for SM strategy,

internal Enterprise development of the ‘Social Business’ and what is
called “Enterprise 2.0’ operations, are crucial foundations. This concept
formulates the backbone of this research and investigation. It looks to
offer an approach, or ‘lens’, for Enterprises preparing for SM strategy and
the key internal challenges and decisions that need to be considered.

It also explores understanding SM as a concept, its relationship to

marketing and conceptualizing SM value in the context of creating the
‘Social Business’ or ‘Enterprise 2.0’. This includes strategic conclusions
and tactical recommendations based upon case study evidence, isolated
through applying academic strategy analysis.

14  
Background

SM is a phenomenon that has gained momentum in the last five years

with the mass adoption of individuals using social networking tools
accessed through the Internet. To provide some perspective,
Nielson.com’s findings (below) suggest global users spent five and half
hours per month on social networking sites like Facebook and Twitter in
December 2009, an eighty-two percent increase from the same time last
year.

Figure 5 - Source: Neilson, 2010

 

“Australia led in average time per person spent, with the average
Australian spending nearly seven hours on social media sites in
December.” (Nielson.com, 2010)

15  
Figure 6 - Source: Neilson, 2010

SM provides a popular medium to connect to, talk to, engage with, share
and comment upon a wide variety of issues (both personal and business
related) including events, products and services. Users can also submit
content, such as text, pictures and videos, referred to as user generated
content (UGC). The incredible rise and popularity of social networks such
as Twitter, Facebook, You Tube, LinkedIn and a wide variety of blogs,
forums and online conversations, as shown below, demonstrate the level
of interest and active participation.

Figure 7 - Source: Neilson, 2010

“Year-over-year growth in average time spent by U.S. users, for both

Facebook and Twitter.com, outpaced the overall growth for the category,

16  
increasing 200% and 368%, respectively.” (Nielson.com, 2010) Forrester
recently produced the following interesting findings about adults using
SM.

Figure 8 – Source: Bernhoff, 2010

Importantly, these networks, powered by the individual, are now able to

communicate customer perceptions, information, reviews and opinions
quicker than the traditional press. This creates ‘real time’ information and
individual perspectives that then permanently exist on the Internet. These
‘conversations’ not only connect person-to-person, but business-to-
consumer and business-to-business.

However, the significance of SM to Enterprises is only now being

understood. “In the workplace, Web 2.0 provides a platform for
harnessing the collective intelligence of the organization more effectively,
sharing data and contacts more easily, and collaborating with peers more
quickly.” (Furness, 2008:10) It is this potential of utilizing the ‘collective
intelligence’ of Enterprise employees that has emerged as a new
development in SM strategic thinking.

17  
Context

Marketing relationships with customers has developed, over time, from

transactional (the sale of goods) to transformational (sales through
service creation). The latter has always rested on a strong emphasis of
maximizing the lifetime value of customer relationships by creating
institutional relationship connectivity. Here, the relevance of using SM as
part of relationship development comes into question.

Marketers are looking to use SM to generate perceived value, improve

customer relationships, increase brand awareness, generate advocacy
and understand customer requirements. This includes improving
products, innovation and services through online engagement. Other
objectives include influencing positive word of mouth reputation for a
brand, service or product. But are these the outputs of initially
understanding and preparing for successful internal SM strategy?

SM is not simply a chance to push one-way product marketing messages

via new online techniques. SM is about leveraging a triangulated
communication interface between customer and supplier, employee-to-
employee and understanding the power of observing and learning from
customer-to-customer SM conversation. It is here that SM strategy
preparation includes evaluation of whether this new platform of
communication can actually deliver new forms of internal efficiency,
teamwork and collaboration.

Influencing based on relationships is not a brand new marketing concept,

except now adaptation is required for the Internet networked real time SM
environment. Here, SM strategy perhaps links to the principals of
respected Relationship Marketing (RM) techniques using internet
technology as a medium to create strong and high value relationships
over time. Therefore, is SM simply an aspect of RM, or a contemporary
technology extension of the RM communication strategy?

18  
Does SM provide or facilitate a unique opportunity for Enterprise
employees to research and communicate with customers with the
ambitions of modifying and co-creating services based on this
knowledge? If so, then SM should perhaps be analyzed in the context of
Vargo and Lusch’s (2004) Service Dominant Logic (SDL) model.

Furthermore, the concept of what value SM will prove to Enterprises

comes into question. Is value actually created by using SM as a tool to
exchange thoughts and ideas with customers? What are the processes
and practices that define SM value through co-creation? Is it that easy to
begin this interaction and what does the Enterprise need to consider in
terms of rules of engagement, style of language and SM education? What
are the risks involved in opening up this channel of communication? To
what extent does organizational Enterprise approach, attitude and culture
play in the evaluation or adoption of Enterprise SM strategy? SM is also
often spoken about in terms of openness, honesty and transparency in
the online community. What does this mean for Enterprises who have a
traditional, structured command and control hierarchy where these values
are not reflected internally?

Today, developing SM strategy becomes more than tactical external

marketing, but a critical part of cross Enterprise planning.

19  
The Importance and Relevance of the Investigation

High levels of competition, swiftly eroding competitive advantage and the

increasingly educated and opinionated customer present in SM networks
challenges the current business landscape. Current thinking suggests
that SM strategy and techniques are not being employed and leveraged
by larger Enterprises where potentially, SM is not deemed to bear
relevancy or impact. However, if utilized properly, the argument is that
SM could assist greatly with customer service, product development,
company reputation, brand equity and could also form a key part of
‘digital strategy’. But more importantly, SM could begin to transform the
way people connect inside organisations, improving efficiency of
knowledge sharing, assisting with developing collaboration culture and
reinventing working relationships.

Are these the core aspects of consideration inside the modern

Enterprises, which are adjusting to new business strategies in a
networked economy? Could the end result be that by using SM,
Enterprises could create new revenue, lower costs and improve
profitability? SM arguably can create competitive advantage; therefore
understanding how the advantage is created is the determinant of value
for Enterprises.

Many of these companies are aware that adoption of SM needs to be

understood, evaluated, considered and either implemented or not,
proportional to whether its introduction is appropriate. However, these
Enterprises require assistance with the substantiation of SM strategy in
order to acquire the support and financial backing from Senior
Management.

Much data and research indicates the importance of SM in external

marketing strategy, but fundamentally the internal Enterprise preparation
for SM strategy is less defined, hence the importance and focus of this
study.

20  
Sponsoring Research Organizations
 

This study has been conducted in the commercial marketplace through

investigation with two large technology Enterprises and a premier Social
Media Agency Enterprise.

Canon UK Ltd (Canon Business Solutions Division), part of Canon

Europe. (Appendix 1)

Nixon McInnes, a leading UK SM Agency (Appendix 2)

Cisco Systems, Global IT and Internet Network Hardware and Software

solutions provider (Appendix 3)

All three have provided key case study evidence and in-depth interview
analysis to support the research objectives.

21  
Research Parameters

The incredible rise and mass adoption of mobile Internet and broadband
penetration certainly supports the incredible growth of SM usage. This
includes free SM applications, the relative low cost of broadband and the
advances in ‘smart’ mobile phones such as Apple’s ‘iPhone’. Here, cheap
connectivity to the Internet and continually advancing bandwidth speeds
underpins the ease of connecting into SM channels. This study does not
try to prove this correlation but recognizes its significance when
considering what has driven the need to analyze a new SM strategy and
the potential impact on modern Enterprises. This research does not try to
predict the trends of usage and growth of SM over time.

In addition, this study does not aim to define or discuss the balance
between traditional media marketing and SM or position the business
case of SM in terms of sales, correlated to Return on Investment (ROI).

22  
Personal Objectives

The author’s personal objectives of the research are to prove new linkage
and thought leadership in SM strategy adoption for Enterprises, based on
live market challenges. This brings together the following criteria:

Figure 9

Researching
Personal interest
academic
and passion for
Marketing theory
Social Media
and its relationship
Strategy
to Social Media

Applying academic
and research Constructing a
findings gateway into the
investigate ‘live’ Social Media
Enterprise consulting industry
challenges

23  
Overview and Structure of Key Contents of The Report

There are 5 key areas to this report. The first section is the ‘Literature
Review’, which looks to identify key SM and marketing thinking and
critiques the opinions to draw out the focus of the research question and
case study evaluation. Secondly, the research design and the style of the
research approach are given background and substantiation. The third
section covers specific case study background and presents the findings
of the investigation, interpreting the interviews into a compare and
contrast format. Following this, the conclusions of the research are
presented and are completed with recommendations. Finally, the report is
completed with a personal reflection on conducting the research.

24  
Literature Review

Introduction

This section of the research analyzes the literature and academic theory
related to current thinking related to preparing the modern Enterprise for
SM Strategy. The objective of the literature review is to explore and
critique key SM concepts, opinion and themes to inform the research
investigation structure. This includes considering relevant strategic
models that could support the investigation.

Through presenting a literary critique this will justifies the relevance of the
research objectives, informing the way in which the investigation design
and analysis will look to identify theory. The output is to conclude with the
key questions and concepts that then require answering as part of the
research investigation. These elements are defined at the end of each
literature review section.

25  
The Definition of Social Media

SM is often referred to as part of ‘Web 2.0’, which “describes a group of

Web based technologies, applications and services that enable
participation, the creation of online communities, collaboration, and
sharing of content or services.” (Furness, 2008:17) “SM is a term used to
describe the type of media that is based on conversation and interaction
between people online. Where media means digital words, sounds and
pictures (including video) which are typically shared via the Internet and
the value can be cultural, societal or even financial” (Wikipedia, 2010).
SM theory suggests that social networks consist of three main human
parties; those that join to grab and learn information, those that want to
share and distribute information or opinion and those that simply want to
investigate, learn and absorb the commentary and content (Voight, 2007).

For a list of the technologies terms and definitions of SM tools, please

see (Appendix 4)

An important consideration for this study is that SM is not solely for

connecting people-to-people (in their personal life) or business-to-
customer relationships. SM is an activity that also occurs in the context of
the internal Enterprise environment, between employees, provided SM
technology and managerial acceptance of its use are in place. It is the
understanding of this aspect of SM strategy and SM usage being applied
inside the workplace, which provokes investigation interest. This is the
concept of ‘Enterprise 2.0’ – Social Business structure.

26  
A Definition of Enterprise 2.0 – The ‘Social Business’

Enterprise 2.0 can be defined as the use of SM technologies and services

in a corporate (Enterprise) setting (Furness, 2008). Enterprise 2.0 is
about people, skills, tools and understanding the user driven, intelligent
web community environment concept in the Enterprise (Musser, 2006).
The premise of Enterprise 2.0 being that collaboration, real-time
connectivity and adopting social behaviors in the workplace, provides the
backbone for efficiency, improved business performance and relationship
development with customers.

It is cited that adopting the practices of Enterprise 2.0, based on

leveraging the culture and tools of collaboration5 will provide competitive
advantage6 (Bughin, 2008). The intended output is that collaboration in
the workplace should help solve problems by establishing better or faster
ways to improve services, of doing new things, being more agile and
getting work done (Software, 2009). It is true that collaboration is
enhanced by SM technology but as Bughin (2008) states; the key to
collaboration is in SM cultural execution within the Enterprise.

McAfee (2006) suggests that in order to achieve Enterprise 2.0 goals

through SM strategy, the following elements are fundamental. The author
perceives these elements require assessment through the investigation
process.

                                                                                                               
5
Collaboration denotes people working together to solve common problems, sharing
knowledge, expertise and experience in real time. (Software, 2009)  
6
The definition of competitive advantage consists of the value preposition and the
unique activities required for delivering it (Collis & Rukstad 2008)  

27  
Figure 10

28  
Enterprise 2.0 and Control

The premise of Enterprise 2.0 collaboration and Social Business benefits

are restricted by traditional Enterprise fears of losing command and
control across the organization (Furness, 2008). “Barriers to the take-up
or of Enterprise 2.0 include security, confidentiality, return on investment
and an organization’s culture” (Furness, 2008). Loss of intellectual
property and the fear of brand misrepresentation are natural concerns.
However, “The competitive advantage will not emerge from Web 2.0
technologies, but from adopting new business paradigms” (Bughin
2008:258). This suggests that driving internal behaviors, including
understanding how to use new SM technology must also be aligned to
developing SM Enterprise values.

Breaking down the top down hierarchical and functional barriers and
allowing information to pass horizontally and vertically through the
Enterprise with ease should be openly encouraged (Furness, 2008). This
refreshing contemporary approach runs counter to the fabric of the
traditional Enterprise and can encroach and threaten managerial control.
Therefore, seeing past the perceived threat and understanding the value
of a new democratic Enterprise 2.0 environment is central to SM strategy
preparation. Consequently, understanding the managerial barriers,
challenges and institutional control and freedom levels needs to be
assessed in the investigation.

29  
Enterprise 2.0 and Social Media Technology

Enterprise 2.0 requires the adoption and integration of SM technology

tools and applications or what is sometimes called ‘Social Business
Software’. “Enterprise 2.0 is the use of emergent social software
platforms within companies, or between companies and their partners
or customers” (McAfee, 2009:1). This ties Enterprise 2.0 to simply a SM
technology stance, which it is not. Enterprise 2.0 is more about the
creation of Social Business behaviors, which is a SM strategy in itself.

“Technologies such as wikis, social networks, blogs and

microblogging sites like Twitter, have the potential to drive higher
productivity gains by enabling employees to communicate and
collaborate with one another more quickly and frequently, and share
their knowledge throughout the organization more easily” (Furness,
2008:53). It is the behaviours of usage, not the technology that leads to
these collaboration benefits.

Softer SM behaviors and harder system tools become part of the

successful Enterprise 2.0 (McAfee, 2009). Does this mean that
implementing Enterprise 2.0 SM behaviours, prior to the tools is part of
the core strategy? Or do SM tools breed SM behaviours? Analysis of
existing Enterprise SM technologies, their use and purpose becomes a
pertinent investigation aspect.

30  
Social Media Recognition by Enterprises

As highlighted in the introduction, high volumes of Internet users are

already active in SM activity through social networks, forums and
blogging environments. It is estimated that half of Europeans using the
Internet are involved in SM activity regularly (Jennings, 2009). As a result,
marketers have recognized the growing importance of SM to connect with
customers and influence decision makers, as shown below.

Figure 11 - Source: Ramos, 2009

Whilst direct word of mouth influence is shown at 84 per cent (including

SM ‘word of mouth’7), SM influence has grown to 45 per cent, where five
years ago, this would not have been a factor. Furthermore, even in
recessionary times, marketers are looking to shift budget to SM,
expressed as ‘social networking’ in the following figures.

                                                                                                               
7
SM ‘word of mouth’ contextual examples - individuals posting something on their
Facebook ‘Wall’ or on ‘Twitter’ so their friends and followers can see their opinion

31  
Figure 12 - Source: Owyang, 2009

Figure 13 - Source: Owyang, 2009

As discussed, it is this exponential rise and resultant recognition that has

necessitated the need for a position on Enterprise SM strategy. However,
whilst these statistics from Forrester are useful, they are limited in scope.
SM recognition and a desire to develop a SM position do not uncover the
internal challenges SM strategy presents the modern Enterprise.

32  
In fact, another train of thought exists about SM. Some Enterprises and
business managers have seen SM as an Internet phenomenon - a
‘social’, ‘non-business’ activity that does not relate to commerce. This
lack of understanding and potential nervousness in using SM as part of
the business strategy has resulted in closed firewalls to restrict the usage
of SM tools or applications by IT and Security departments.

Yet there is an alternative perspective from Enterprise leadership. “The

speed and exponential nature of change in the business world is why 60
per cent of the CEO’s surveyed by PricewaterhouseCooper consider
social networks and the networked world the most important factor in their
strategies, much more than innovation or technology” (Shuen, 2008:107).

Here, what tools are available in the Enterprise and the freedom to use
them, or the understanding of how to use them becomes an important
part of the SM strategy evaluation. This includes aspects of leadership
support and internal attitudes to SM.

33  
Social Media in the Context of Marketing

SM can be considered in a classic marketing context. SM marketers look

to target specific individual ‘opinion leaders’ (both internal and external),
who in the online world will then confirm or critique marketing or
Enterprise messages. Their opinion is spread through their own personal
or business social networks, by word of mouth or directly into available or
chosen SM forums (Economist, 2007). This is influence marketing, but via
the Internet.

In this regard, SM has transformed customers and employees from being

reactionary participants to brand and product marketing, into core
stakeholders in the Enterprise brand and service suite. “Marketing within
SM is not about just telling and giving a message, rather it is about
receiving and exchanging perceptions and ideas” (Drury, 2008:275).

Here, SM interaction becomes a transaction in which the currency is

information and knowledge exchange. SM marketing value is connected
to improving customer intimacy through passive feedback loops and pro-
active engagement without the direct sell of push of products or services
(Pombrient, 2009).

SM is now an important hybrid part of the marketing mix. It has specific

capabilities to promote deep multifaceted relationships and allow faster
organization and mobilization of the Enterprise. This in turn improves the
creation and synthesis of knowledge development, knowledge
management8 and collaboration. SM also supports better filtering of
knowledge and information. (Fichman, et al., 2009). However, it is how
this information is processed internally within the Enterprise which is
important; hence the need for concentration on behaviours, collaboration
and internal SM competency. These are the fundamentals of Enterprise
2.0 operations. “It is claimed that an effective internal marketing program

                                                                                                               
8
Knowledge management comprises a range of strategies and practices used in an
organization to identify, create, represent, distribute, and enable adoption of insights and
experiences. (Wikipedia, 2010)  

34  
is a prerequisite for effective external marketing efforts” (George, 1990).
This suggests internal SM development may be vital for any form of
longer-term strategic SM success. Therefore the ways in which
Enterprise marketing teams understand SM and develop the internal SM
environment needs investigation.

35  
Driving Behavioral Forces behind Social Media

Most financial transactions are essentially bi-lateral exchanges, which are

fundamentally bred from social exchanges. However, the motivation for
communication in the SM community is based on the human need to give
advice, influence and to be helpful. In the SM context, arguably, people
seek social approval and respect and harbor a desire to be useful across
the SM social network (Hemetsberger, 2002). This non-financial
exchange model relates directly to using SM to build trust and
relationships through social reward, but does not explicitly suggest the
importance of encouraging this in the internal Enterprise ‘community.
Interestingly, SM interaction is not led by a high-level elite hierarchy, but
by moderately connected individuals. These individual opinions are
valued in influencing en masse, being as recognized and respected as
‘elite’ thought leaders and industry shakers (Smith, et al., 2007).

Understanding this ‘motivation for communication’ extends from external

SM communities to internal Enterprise communities. The opportunity
exists to connect internal staff through SM social behaviors to share
influence and opinion. “SM is bringing back the human element to all
digital interaction. People now deliberately seek meaningful connection,
self-expression and a relevant and receptive community” (Litchenberg,
2009:1). This is potentially about developing improved trust and internal
relationships through technology and attitude. It has also been argued
that this activity of participants in the SM community provides members
with ‘social capital’. (Schau et al., 2009)

Indeed, it is the tools and technology of SM and the mass adoption of the
Internet through broadband and mobile devices, which enables large
numbers of connections to be sustained and maintained instantaneously
(Smith, et al., 2007). But it is more than just technology. “Web 2.0 is
here today, yet it’s vast and disruptive impact is just beginning. More than
just the latest technology buzzword, it’s a transformative force that’s
propelling companies across all industries toward a new way of doing
business. Those who act on the Web 2.0 opportunity stand to gain an
36  
early mover advantage in their key markets” (Musser, 2006:4). This
highlights the importance of researching internal SM knowledge levels
and employee understanding of its purpose and usefulness.

37  
The Importance of Social Media Communities to Enterprises

Researching and communicating with online communities, deploying

marketing messages and receiving feedback to improve Enterprise
products and service delivery is a cornerstone of SM strategy. Today it is
not the intelligent few that create, innovate and define products and
services; it is the regular employee and customer, created through SM
interaction (Shuen, 2008). By ‘engaging’ with SM communities, there is
the potential to improve learning, internal continuity and resultant
profitability. Community ‘engagement’ is not just about customer
connectivity, but also about connecting and enabling internal Enterprise
SM practices that may drive competitive advantage.

Classic academic marketing thought echoes this sentiment. “We believe

that commercial success in the online area will belong to those
businesses that organize electronic communications to meet multiple
social and commercial needs. By creating strong online communities,
businesses will be able to build customer loyalty to a degree that today’s
marketers can only dream of, and in turn, generate strong economic
returns” (Armstrong and Hagel, 1996:135).

This thought process must also be extended to consider that economic

success may be directly proportional to nurturing the internal SM
community. This could provide both operational cost improvements and
increased revenue generation - Armstrong and Hagel’s ‘economic
returns’ – a wider concept for the investigation.

38  
Internal Culture, Internal Relationships and Social Media Strategy

It can be daunting for Enterprises to adopt a SM strategy due to the

fundamental cultural change that is required. Taking control of the
strategy through incubating an emergent SM culture internally is a key
challenge (McKay, 2009). Arguably, it requires significant internal cultural
and behavioural understanding (Mitchell, 2008). Creating internal change
and adapting the culture of the way people behave, act and represent the
organization is far more challenging than changing ingrained operational
or business processes (Furness, 2008).

It is suggested that Enterprises have consistently failed to change their

culture and operational practices to enable SM to succeed and deliver
value (Furness, 2008). Instead, Enterprises should focus has been on
adapting to the culture of the Internet (Armstrong and Hagel, 1996). Many
Enterprises have just not adjusted to this new working paradigm.

Arguably, a business operates in society and the basis of society is

relationships. Within the marketing context, internal Enterprise
relationships are crucial for developing external customer relationships
and provide a source of competitive advantage (Gummesson, 1999).
Measuring and understanding the inherent value of developing strong
employee-Enterprise relationships and the environment and culture in
which they are nurtured, should be part of SM strategy preparation.

Essentially, internal relationship development can be driven by the

adoption of a collaboration culture and knowledge exchange through
Enterprise 2.0 SM behaviors. An interpretation of the culture of the
Enterprise is critical for SM strategy analysis and the investigation.

39  
Current Enterprise Social Media Strategy Activity

There is a SM revolution underway but Enterprise organizations are still

unclear how to use it and create value (Pombrient, 2009). Industry
leading Enterprises are having a difficult time adjusting to the challenges
of the digital networked economy, with outdated hierarchical management
structures, business models and a lack of skilled internal resource to
cope with the change (Shuen, 2008). However, Enterprise SM strategy is
developing and emerging. Current UK Enterprise SM strategy activity
statistics suggest that:

Figure 14

Where implemented, the main uses given for SM in global Enterprises

were:

40  
Figure 15

It appears that those already involved in SM strategy and deployment are

beginning to take advantage of its potential. However, the fundamental
internal cultural change needed to adopt more complete, inter-related
business models through SM is not in full swing. This could be supported
by the following global Forrester findings showing that SM budgets
remain tiny, especially on the softer, resource and behavior side. These
are crucial aspects for developing a SM strategy and in getting the right
people, resources, training and ongoing programme of SM activity in
place.

41  
Figure 16

Enterprises appear not to see the value of high budgetary spending on

developing the softer behavioural aspects of ‘Social Business’ and
‘Enterprise 2.0’ SM strategy. What existing Enterprise SM ‘strategy’ is in
place needs evaluation through this research.

42  
Strategic Research Models

When preparing for any form of Enterprise strategy, it is wise to look to

trusted and recognized academic strategy models. Assessing strategic
direction can be broken down into the following three component parts,
concentrically feeding each other.

Figure 17 - Source: Tovstiga, 2008

This research focuses mainly on strategic analysis due to emphasis on

strategic SM preparation. Therefore the author has chosen to consider
the following strategic model to assist with the investigation.

43  
E-V-R Congruence (Analysis)

“The E-V-R (environmental, values, resources) congruence framework

effectively integrates a number of key strategy elements. It brings
together the elements of the SWOT analysis; it probes the organisation's
external factors (E), including its key success factors, and its internal
resources (R), and brings these into the context of the organisation's
values (V). (Tovstiga, 2008:35)

Figure 18 - Source: Based on Thompson & Martin, 2005

This appears to be a relevant model to use to evaluate the congruence of

SM preparation as it significantly, factors many of the ‘softer’, more
intangible elements of strategic analysis.

44  
A Social Media Strategy Model - POST

In 2007, Forrester Research delivered its framework for external

Enterprise SM strategy planning - the POST model. Fundamentally, this
put people and consumer behavior ahead of technology when creating
SM strategy.

Figure 19

This theory appears to focus on developing external SM strategic

planning, rather than considering the strategic considerations of
becoming a ‘Social Business’. However, the model proves useful to the
investigation in potentially adapting the overlay upon the internal
Enterprise environment, rather than just the external ‘customer’ SM
environment.

45  
Social Media Strategic Performance Value to Enterprises

In the advancing service-based commercial world, managerial structures

of profit and control are now being replaced with demonstrating and
delivering ‘performance’ and ‘value’ (Shuen, 2008). “Web 2.0 transforms
the economics of knowledge based business everywhere” (Shuen,
2008:107).

In contrast to the seminal ‘five forces’ strategic development as laid out

by Porter, 1985, a resource based (service) approach to strategic
performance looks at assessing the internal Enterprise elements. These
being people, skills, systems, processes and capabilities (Edith Penrose,
cited in Shuen, 2008) Here, Penrose’s model supports the contemporary
flavor of developing strategic performance through internal knowledge,
resources and behaviors. These are exactly the output intentions of
developing an internal SM strategy. Therefore, the question arises, “how
do industry leaders create value in a very fast changing global networked
knowledge environment?” (Shuen, 2008:108).

For Enterprise management, it takes boldness and belief in developing

and trusting the value of SM. “It’s a leap of faith. However, the risk of not
becoming efficient or effective is going to ultimately hurt the value of the
company” (McKay, 2009:28). There is benefit to first-mover advantage,
but also value in learning from others before acting. This is a tough
challenge in an emerging and iterative SM world and requires
consideration. SM managerial vision appears key.

46  
Understanding the Concept of Social Media Value

SM value can be seen as an intangible concept, rather than more

traditional and tangible aspects of value such as the value of a company
or a brand (Shuen, 2008). Here value should be corroborated to the value
created by developing early mover advantage in changing your
Enterprise to new business models of the future. So what is the value
output? Competitive advantage, increased profitability, or improved
innovation? The following are intangible assets or value outputs from SM,
as presented by Shuen (2008).

• Market capitalisation
• Network effects
• Brand reputation
• Buzz
• Business models
• Relationships
• Ecosystems
• Goodwill
• Momentum

Perhaps all of them are valid - but more likely, long-term survival in a
changing networked economy, based on managing knowledge and
resource effectively, is the ultimate value. “Financial valuations of
companies…calculated on earnings multiples and on forecasts of market
and unit production growth are not the answer” (Shuen, 2008:21). These
are not relevant, it seems, especially when considering SM value.

Furthermore, SM adoption and value creation is fundamentally linked to

adopting it quickly and smartly into business processes. However, this is
dependant on the ability of the Enterprise to flex the corporate culture to
adopt and change, right down to hiring new blood to create the internal
cultural revolution and developing HR practices that encourage staff to
adopt SM strategy (Lager, 2009).

47  
Potentially the real value created by a SM strategy is that relationships
are formed with others (Monseau, 2009). Relationships online are about
mutual interest and mutual gain, which in turn breeds not only customer
loyalty, but also internal loyalty and trust. These become meaningful and
relevant experiences with others that create value - something of worth
that influences them, their thinking patterns or educates for individual
benefit (Litchenberg, 2009). Re-inventing relationship perspectives and
understanding value creation through online relationship is core to SM
strategy.

Consequently, understanding SM value appears to be a prerequisite to

open Enterprises up to the benefits of new social business operations
and behaviors. Understanding the why and how of value interpretation is
important to the research investigation.

48  
Relationship Marketing (RM) and Social Media

“Today’s customer is looking for a personalized experience and

relationship, demanding solutions rather than products” (Bumer 2009:4).
The Enterprise that does not understand the relationship between SM
and the emotional and behavioral side of customer relationship
management and RM will lose competitive advantage (Bumer, 2009).
When considering SM strategy, it is worth evaluating SM in the context of
RM principles. RM is not focused on simply the acquisition of new
customers, but the development, maintenance and strengthening of
relationships over time: Definitions of RM:

“…to establish, maintain enhance and commercialize customer

relationships so that the objectives of the parties involved are met. This is
done by mutual exchange and fulfillment of promises” (Gronroos 1991).

“RM… is a reflection of culture, values and attitudes of the organizational

culture, sustained by the belief and commitment of the people working for
it” (Palmer, 2009).

RM theory looks at defining the relationship between consumer and

service provider in terms of transactional and transformational aspects of
economic exchanges (sales). Arguably, SM allows marketers to develop
this relationship communications channel further (aided by SM
technology) and pull value from the interchange of knowledge,
demonstrating resultant service co-creation.

SM strategy supports RM to look at both the short and long term value of
information interchange in the ‘community’ without immediate fiscal
benefit. SM strategy also appears to be integral in supporting RM
lifecycles and relationship building, both with the customer and
importantly, with internal Enterprise staff. This then positions SM strategy
as being an advance in RM practices bred by contemporary technology.
“The new generation of RM responds to the additional changes of digital
media literacy and in the right hands can trigger a rebuild of the entire

49  
marketing mix. RM for the Facebook generation demands both thinking
and acting differently” (Meadows-Klue 2008:245).

Breeding the internal SM Enterprise environment to ‘think differently’

appears critical; therefore an assessment of RM perception requires
investigation. Potentially, those Enterprises that have an existing RM
strategy will be more receptive to developing a SM strategy.

50  
Social Media and Service Dominant Logic (SDL)

The SDL model looks at the relationship between supplier and customer,
the co-creation of value through knowledge exchange and the delivery of
services, not just products. In SM, this is ‘real-time’ marketing integration
with customers, binding mass customization with RM techniques to
create products, services and designs that match individual and changing
customer needs (Oliver et al, 1998). SM strategists must consider that
having the customer as a central part of co-created value leads
engagement with the brand, into becoming the experience (Prahalad,
2004).

SDL focuses on intangible resources, co-creation of value and building

relationships over time (Vargo & Lusch, 2004). Here, goods transactions
are not central anymore, but intangible services, where the exchange
process and relationships are core to the theory and practice. Service
creation is completed through value co-production and therefore value
perception becomes exchange based (knowledge) and relational (Vargo
& Lusch, 2004). This is arguably what SM strategy can achieve for
Enterprises. SDL denotes that value is implied, defined and co-created
with the customer - exactly the aim of customer SM engagement.
However, this can be extended to consider that same value is derived
from internal employee SM co-creation.

SDL discusses ‘Operand’ resources, which are resources that produce

effects, yet the objective is a concentration and appreciation of ‘Operant’
resources. These are intangible and invisible, and relate to an
organizations core competencies and organizational structure which are
vital to the co-creation of value (Pennie Frow 2009). “Knowledge and
mental competencies are at the heart of competitive advantage,
perceived value and performance” (Vargo and Lusch 2004, P9).
Therefore, SM knowledge resources and mental competencies within the
Enterprise are critical to assess through the investigation.

“A revolution in both marketing thought and practice is at hand.

51  
Recognizing the implications of the aforementioned developments, Lusch
and Vargo (2006) argue that co-creation will ultimately induce firms to
collaborate with customers to co-create the entire marketing program”
(Schau et al., 2009:30). Schau argues that although SDL is recognized,
the methodology of collectively creating value has not been identified, nor
the measures of value associated with co creation. “We know value is
created, we just don’t know how” (Schau et al., 2009:30). The crucial
learning is that if you do not know how value is created, how you can
replicate a value model to other companies and portfolios considering a
SM strategy?

Furthermore, SDL theory does not cover the cultural and behavioral
changes required internally to develop and harbor knowledge exchange
and value co creation. Nor does it cover the technology or methodology
by which this theory could come to life, hence providing an angle for
research investigation.

52  
Social Media Value Practices

The difficulty for SM strategists is how to attribute or measure the value of

SM. Schau’s 2009 research, based on nine diverse commercial case
studies, provides some structured value conclusions for SM strategists.
“Our study offers insights into collaborative consumption and value
creation in brand communities, organizes the current knowledge of
collective brand-based actions, and suggests what is needed to support
collaboration” (Schau et al., 2009:39). Here, “Practices foster
consumption opportunities and create value for both consumers and
marketers” (Schau et al., 2009:39). Furthermore, “…value underlies all
practices and that engagement in practices is an act of value creation”
(Schau et al , 2009:39). Schau identified 12 aspects of value creation
practices, under the four headings of:

• Impression Management
• Social Networking
• Community Engagement
• Brand Use

Figure 20 - Source: Schau et al., 2009

 

53  
Schau et al, comment that the practice engagement forms the interaction
and co-creation argument of Vargo and Lusch’s SDL, but that focusing on
the collective practice elements and commonality between them
produces value (Schau et al, 2009). Interestingly, they argue that, “…the
firm should foster or sponsor social networking practices to build and
sustain the community and to inspire further co-creation” (Schau et al.,
2009:41).

As part of the investigation, it seems that an exploration of the employee

as a brand and community partner in SM ‘value practices’ should be
undertaken, alongside the ‘value practices’ of the external customer and
web community.

54  
Literature Review Conclusions

The literature review concentrated on the challenges for Enterprises

when considering and preparing for SM strategy, drawing emphasis on
internal considerations and marketing linkage.

This had led to indications that potentially, the movement towards

Enterprise 2.0 is the gateway to creating contemporary value and
competitive advantage. Thus becoming a ‘Social Business’, adapting to
the changing networked economy. However, putting this SM strategy into
practice appears to require distinct considerations of internal cultural,
behavioral and technological change. This has focused the concept and
structure of the investigation.

55  
Investigation Design

This section covers the research methodology applied by the author to

structure the investigation. Detailing the objectives, it also explains the
process of collecting primary data through qualitative approaches and
presents the methodology for interpreting the findings.

Objectives of the Investigation

The objectives of this investigation are to analyze, through a structured

investigation design and research methodology, key Enterprise SM
strategy considerations, born from the literary review insight and critique.
This investigation process will concentrate on critical aspects and criteria
that would inform and educate Canon in preparing for and developing its
new SM strategy. In this regard, the investigation looks to understand the
wider questions and issues around SM strategy and Enterprise 2.0
dynamics, by investigating a specific sponsor problem and contrasting
this with industry experience and knowledge.

The investigation output will provide theoretical conclusions and

practicable recommendations for generic Enterprise SM strategy
preparation. In essence, this provides a high-level holistic handbook for
any Enterprise seeking to determine a SM strategy for their Enterprise,
based on academic and commercial insight.

The investigation looks to prove that by preparing for SM strategy the

Enterprise must morph and develop into becoming an Enterprise 2.0
organization – a ‘Social Business’. This includes pulling together the
aspects of literature-critiqued elements such as marketing concepts,
knowledge exchange, collaboration and co-created value. Furthermore,
that the efficient flow of internal communication contributes to improved
and increased value and performance via shared learning through new
social behaviours. This focuses on isolating and discovering the critical
nature of internal readiness of the Enterprise 2.0 environment and

56  
whether SM is the glue that potentially pulls together, activates and
extends RM and SDL thinking. This includes assessing knowledge levels
and perceptions of SM strategy and technology.

The output for investigation success would be to create a ‘paradigm shift’

in the way Enterprises think about internal marketing, SM value creation
and change in the context of SM strategy. The advantage of the study is
that it was based on live investigative commercial challenges and staff
interaction, rather than the mass rhetoric of contemporary SM
commentary from many ungrounded ‘SM experts’.

57  
Justification of Investigation Design

The author used the ‘Research Onion’ framework, as pictured below, to

formulate the primary research investigation design. (Saunders et al.,
2008)

Figure 21 - Source: Saunders et al, 2008

 

This approach informed the author with a holistic consideration of the

investigation design process with a view to providing a solid structure to
the research methodology. This also helped determine a process of
investigation that would ensure reliable and structured findings, justifying
its selection.

The ‘Research Onion’ informed an investigation process of applied

qualitative research, exploring emergent SM thinking. This is justified
given that SM is a contemporary marketing phenomenon, which is little
understood in the context of the ‘intangible’ behavioral aspects of internal
Enterprise 2.0 value creation and culture. This selection was created to

58  
assist Enterprises with assessing the impact of a future course of
strategic action.

59  
Research Philosophy and Approach

There appeared no direct research comparison to inform the research

philosophy as SM academic theories are currently emergent and
embryonic, especially when connected to RM, SDL, value and cultural
evaluation contexts. However, the ‘Research Onion’ was able to help
structure the philosophy and approach.

The author looked at understanding the human side of the strategy

process and investigated individual opinions, implying a socialist
construct, or ‘realist’ approach, inclusive of emotion and working
experience elements (Easterby-Smith et al., 1991). Thus focus of the
research revolved around the collection of ‘softer’ and more personal
data, related to experiences and operational challenges. This captures
evidence based upon opinion and interpretation of Enterprise marketing
strategy and its relationship to SM activity. This methodology was
selected over a positivist approach due to the lack of tangible elements
and measurable statistics that cannot be generated from interpretive
open-ended and semi-structured interview criteria. Researching clear and
measurable ‘harder’ statistics or data was not deemed to be the best
format of research. However, the need to interpret, rank and display the
results in ‘spidergrams’ does indicate potential research subjectivity
based on the author’s individual interpretation of the evidence.

Consequently, the research design indicates an inductive approach as

this report aims to develop and derive theory from data (Saunders et al.,
2008). Primary data interpretation supports this methodology; therefore
the author believes that the correct approach here is primarily inductive.
This study does not cover quantitative research so deductive
considerations are not deemed applicable.

60  
Research Strategy

The research strategy selected was an exploratory case study

investigation to provide an evidence-based approach to providing
analysis, conclusions and recommendations. Case study approaches are
defined as a strategy of research that can be used to investigate a
contemporary phenomenon in a live context, using multiple sources of
evidence, centering on empirical investigation. (Saunders et al., 2008)
Furthermore, the looser nature of the subject involved, with SM either
being seen as a focused marketing concept or a wider, deeper cross-
functional change in business adaptation to a new-networked economy,
indicates case study selection. This opens boundaries to research the SM
context, constructing opinion and theory from a range of different
interview angles.

The lack of deductive elements of the case study research implies that a
grounded theory was not entirely applicable. Though the investigation
looks to create theory from regular reference to the case study data, it’s
not fully grounded and supported by quantitative data analysis. There are
aspects that suggest that grounded theory supports the investigation.
This is based upon the principle that data was collected before the
formulation of theory, especially in the context of emerging Enterprise 2.0
and Social Business concepts. This is arguably a characteristic of
grounded theory, as analysis of data to inform theory is deemed an
interpretative strategy (Suddaby, 2006). However, the boundaries remain
open to interpretation in this case.

The overall investigation strategy is inductive. It approaches theory

building rather than testing known and existing theory. The theory and
conclusion become the outcome of the research, brought to life through
recommendations. This study is linked to exploratory or descriptive
research designs. This is reflected in the research with aspects of flexible
interaction and theory development, attempting to develop new SM and
Enterprise 2.0 paradigms. The research could be deemed abductive

61  
through data analysis, but is essentially a flexible research design
approach.

The study strategy presented no ethical issues, only commercial

confidentiality considerations. The conduct of research was based on
interviews and observation through participation in commercial
discussions.

62  
Research Time Horizons

As this research forms part of the author’s MBA course structure and
dissertation it was time-bound. The study required completion within
course timelines; hence the investigative research is cross-sectional. This
implies a study whereby data is analyzed at a point in time, based upon a
set of interview questions posed at a development or implementation
stage of the Enterprise’s SM strategy. The perspectives and learning
journey of the Enterprise interviewee will of course change over time, so
this study looks to describe the findings, and create theory, which could
then be revisited in the future. This would provide further insight into the
development of Enterprise SM strategy.

63  
Research Methodology and Structure

The methodology choice and primary data collection of this research

initiative has been through working within Enterprises to understand key
commercial challenges that face them in the live environment.

Perspectives were taken from an Enterprise looking to develop a new SM

strategy but strong on RM (Canon), an Enterprise which has already
undertaken SM strategy (Cisco), and a SM agency that advises and
implements Enterprise SM strategies for client customers
(NixonMcInnes). Such investigation would inform the author how existing
Enterprise organizations are planning to or have transformed their
organizations through SM strategy and to what extent they have internally
changed or consulted on change in the organizations to become
‘Enterprise 2.0’ or a ‘Social Business’.

This has provided live commercial case studies to understand SM

strategy in action, conceptual preparation, marketing readiness and
value. Furthermore, having three case studies overcame the potential
isolated investigation weakness of a single case study research.

The research was conducted over a period of nine months.

64  
Research Techniques and Data Collection

A series of more than ten meetings were held at Canon UK’s office
headquarters with its Marketing teams to discuss the position on
developing a SM strategy, commercial context and key internal
challenges. The author looked to provide consultative engagement with
Canon as a trusted advisor to conclude a provisional SWOT analysis on
Canon’s SM strategy position.

Secondly a ‘Think Tank’ (Focus Group) event was held, where

representatives from the three research sponsors and also the Institute of
Direct Marketing and Accenture attended. The author led the event
through a structured presentation, examining the critical challenges of a
contemporary SM strategy and opening out concepts to the audience.
The author recorded the main issues on flip charts through the day. In
combination with analysis from the literature review, these helped to
develop the interview questions

Thirdly, face-to-face in depth interviews were conducted and videos

recorded with 15 people (both genders) across the three sponsoring
organizations. Each interviewee was selected for interview, based upon
being a key SM strategy stakeholder within their Enterprise. The range of
interviewees’ job roles gave some breadth to the investigations, as
shown.

65  
 Company Interviewee Job Title Job Function
Name

Canon UK Sean CBS New Media B2B Marketing

Watson Professional

Canon UK Clare Want CBS Marketing B2B Marketing

Director

Canon UK Caroline Senior Service Operations

Rae Manager

Canon UK Jim Dowson Internal Corporate

Communications Communications
Manager

Canon UK Jason Corporate Corporate

Sullivan Communications Communications
Manager

Canon UK Jane Hicks HR Business HR

Manager -
Europe

Canon UK Lisa New Media B2C –

Freeman Professional Consumer
Imaging
Marketing

Canon UK Matthew Channel Director Sales

Searle

Cisco UK Emma Director, Marketing

Roffey Communications
and Digital
Marketing

Cisco UK David Head of Digital Marketing

Chalmers Marketing

Cisco UK Zoe Sands Digital Marketing Marketing

Manger Europe

66  
 NixonMcInnes Will Managing Board
McInnes Director

NixonMcInnes Anna Social Media Sales + Project

Carlson Consultant Delivery

NixonMcInnes Ross Social Media Sales + Project

Breadmore Consultant Delivery

NixonMcInnes Jenni Lloyd Head of Strategy Sales + Project

Delivery

NixonMcInnes Tom Nixon Sales Director Board + Sales

Figure 22 - Interviewees

The interviews can be described as semi-structured, based around a

short list of open-ended pre-prepared questions. All individuals were
asked the same set of questions. However, the questions allowed a
degree of flexibility and were structured to be non-directive, providing a
platform for interviewees to speak freely and without prejudice. This
ensured a broad scope of responses to the questions and looked to
uncover each interviewees understanding of SM, knowledge levels and
individual interpretation. There were no set time constraints for any
questions, but interviews usually lasted for about one hour.

The 28 interview questions were structured around these areas:

• Social Media Knowledge and Insight

• Understanding Social Media Value for the Enterprise
• Creating Social Value Through the Internal Enterprise Environment

The investigation questions did not explicitly suggest terms such as

‘Enterprise 2.0’ or ‘Social Business’. This was to ensure that these terms
formed the output and conclusions and did not influence the research

67  
parties given the emergent and contemporary nature of these terms.
Through analysis, 12 of the 28 interview questions provided key insight
into the subject matter, as highlighted.

68  
69  
Figure 23 – Interview Questions

The author transcribed these video interview recordings and placed the
data into Excel for synthesis. Samples of the transcribed interview
content, in Excel, are available (Appendix 5). Following this transcription,
five more ‘themes’ of SM strategy were generated through synthesis of
the interviews. This objective was to develop three sets of data that could
be correlated and contrasted to deliver the intended output of the
investigation.

The next stage was to interpretatively rank each applicable answer and
theme on a scale of 1 to 10 (1 being low and 10 being high) in terms of
understanding, knowledge levels or SM usage, depending on the
question. The results were graphically presented in ‘Spidergram’ charts,
constructed in Excel. These provided individual Enterprise views and
through overlaying the results in single ‘Spidergrams’, a direct compare
and contrast was possible. In essence, this gave the author a basic
process for graphical comparison of interpretive qualitative information.

Such cross comparison looked at the relevant similarities or differences to

produce initial conclusions on SM strategy and internal Enterprise 2.0
strategic direction. To achieve a more structured academic strategic
analysis (the ‘preparation’), the author used the interview findings to
present analysis via an E-V-R Congruence format for all three-research
partners.

Samples of data collected will be shown in the investigation, including

relevant internal sponsor background, issues and documentation.

70  
Investigation Findings and Analysis

This section includes the background of the investigation with the

research parties and details the findings and analysis as per the
investigation design. Synthesis of the investigation through interpretation
develops the final research conclusions and recommendations.

Canon UK and Ireland Case Study Background

Canon’s Market Proposition

 
Canon Customer Business Solutions (CBS) division provide a portfolio
mix of printer solutions and Managed Print Services (outsource
arrangements hereafter known as MPS) to the Public Sector, Large
Corporate Enterprises and SME’s9.

                                                                                                               
Small or Medium sized Enterprises  
9

71  
Canon’s Social Media Position

In mid 2009, Canon UK, aware of the increasing use of SM technologies

in Enterprise marketing campaigns decided to investigate an Enterprise
SM strategy position. Awareness of the need to investigate SM strategy
had been heightened by the concern of potential competitor movement in
this area and losing competitive advantage. Canon’s high-level objective
for SM strategy was to engage with the customer communities online and
drive sales.

Canon UK had no pre-existing SM strategy. Only the B2C division had

conducted some tactical SM activity with a single SM agency. Canon
sought a cohesive B2B and B2C SM strategy investigation as part of its
‘One Canon’ strategic alignment of their B2B and B2C business units.

In terms of SM technology, IT and Security limited or provided no access

to SM or social networking sites inside Canon UK offices. The lack of SM
policy (both personal and business) to guide usage or protect Canon
employees hindered its position moving forward.

IT and Security teams were also reticent about deploying internal SM

applications. There were no existing collaboration tools, wiki-based or
knowledge exchange systems which to support employee-to-employee
communication.

72  
CBS Marketing Background

RM had been leading the overarching marketing programme. Introduced

in early 2009 (Appendices 6, 7, & 8), Canon’s RM strategy focused
primarily on increasing unit product sales volumes, attempting to secure
large, long-term commercial value contracts. This was selling ‘service
based’ high value outsourced solutions of MPS technology. However, RM
was measured and associated with quarter-to-quarter numbers and short-
term financial gain.

How SM interfaced with RM, if at all, was important to the Canon

marketing teams. Ownership of the SM strategy sat within Marketing,
however the impact of SM on wider business teams was not understood.
Canon marketing was also challenged to create new SM strategic activity
but also make cost, operational and headcount savings. Canon’s market
leading MPS product technology was supported by a product-focused
direct mail and e-marketing approach - this activity was ‘RM’ at Canon,
certainly not what Gummesson would agree was true RM.

Canon conducted customer events and occasionally published case

studies online. However, CBS did not take part in any form of Thought
Leadership10 activity through online SM. There was a heavy digital
marketing focus on SEO11 and SEM12to try and bring awareness and
profile to the MPS product set via the Canon web site.

                                                                                                               
10
Detailing the advantages of technology, solutions, commenting on industry challenges
or regulatory movement that impact customers  
11  Search Engine Optimization  
Search Engine Marketing  
12

73  
CBS Culture and Internal Environment

CBS championed strong individual key account manager relationships

with customers, supported by Canon’s Japanese cultural values of
openness to create loyalty and trust. Corporate Social Responsibility and
ethical working practices are also held in high regard. This was
expressed with its ‘Kyosei’13 philosophy of working practices and the ‘3
selfs’, relating to employee conduct, as shown below.

Figure 24 – Source: Canon Web Site, 2010

                                                                                                               
‘Kyosei’ translates as ‘living and working together for the common good’  
13

74  
Figure 25 - Source: Canon Web Site, 2010

75  
Think Tank Session - July ‘09

The objective of the Think Tank was to create an open forum to explore
the issues and challenges of preparing for SM strategy in Enterprise
organizations. The following high-level areas for discussion were
presented:

Figure 26

In general, the Think Tank output emphasised that SM strategy is still in

its infancy in terms of ‘known’ models and structures. Also, that the value
of SM to the Enterprise and the need for an internal SM strategy is only
really starting to be understood. SM strategy was deemed to be
‘emergent’, ‘iterative’ and without any classic format or model for
Enterprises to follow. The collective themes that emerged from the day
were as follows.

76  
Figure 27

Commentary from participants revolved around the point that modern

Enterprises are not leveraging fully the benefits of SM. This expanded
into the argument that Enterprises find themselves failing with SM, as
they are unable to integrate not just SM technology and external
marketing activity, but the very nature of SM culture into their Enterprise

77  
environment. This is heightened by the complexities and the volume of
Enterprise functions that need to be aligned with the adoption of a SM
Strategy. This brought out the premise that SM strategy was not simply a
Marketing or PR activity. When the group was pushed to express the
interconnected functions that SM strategy involved, the author was able
to draw together the participant comments about stakeholder groups
together in the following diagram.

Figure 28

HR &
Recruitment
Customer Board/
Service Leadership

Key
Operations
Stakeholders

Social
Product
Media Shareholders

Strategy
Legal Marketing

Sales Finance

Interestingly, Canon, which had no SM strategy in place for its UK

operations, seemed very clear on the necessity for organisational change
to facilitate an improved internal perception of SM. However, Canon saw
SM as a threat to the ‘old Canon hierarchy’ in terms of a lack of control of
brand perception and marketing messages (Poole, 2009). The culture of
hierarchical, command and control Japanese conservatism and slow
nature of change within Canon presented further internal challenges to
understanding new and rapidly advancing SM thinking (Poole, 2009).

78  
Importantly, there was indication from Canon that although SM
involvement is about communities and relationships, the goal was to drive
sales by converting community interaction into qualified leads (Poole,
2009). This was an interesting observation in Canon Marketing’s
perception of SM simply as a lead generation tactic, not part of core
strategy and Enterprise 2.0 development. This required exploration in the
interviews.

However, SM strategy perception on morphing to Enterprise 2.0 was not

mentioned by any Think Tank participant. Nor was there reference to the
concept of the ‘Social Business’.

Think Tank Attendees see Appendix 9.

79  
Canon Interviews

Environment

In terms of definitions, the majority of interviewees could not succinctly

define SM outside of simply naming social networking tools. Only Clare
Want, Marketing Director provided some insight. "It is the use of
technology to access groups of people in two-way dialogue, engaging in
conversations and spreading messages, marketing buzz and thought.”
Interestingly, one ‘SM stakeholder’ interviewee thought SM was about
television advertising. Although amusing, this is invaluable in
understanding the low base levels of internal SM knowledge in the
workplace.

Using SM strategy for cross-functional integration and internal benefit

such as use for Product Development and Customer Service was
recognized and understood by one interviewee. Marketing interviewees
were able to link SM strategy with developing positive word of mouth
marketing dynamics, through online commentary and engagement to
develop the Canon brand. Their perspective was very much related to
tactical SM activity, where SM was a brand-marketing tool only.

Clare Want suggested that, “SM value is providing new communication

that is more personal and genuine in delivering opinions of your product
or service, capitalizing on people who advocate your brand.” Other
interviewees could not define value or elements of SM value due to a
self-admission of lack of knowledge and education in the field.

SM strategy was considered to be a ‘Lead and Sales Generation’ activity

(Want, 2009). This echoed the statement made in the Think Tank. Also
any future Canon SM activity would require demonstrating SM success
over a broad forum and quickly (Searle, 2009)

SM was considered to be an external customer communication sales

strategy based on technology, rather than any commentary on internal

80  
SM challenges to achieve longer-term strategic goals. This limited
external communications view implies the real sentiment behind what
Canon think SM will do for the Enterprise - generate sales leads, not
evolve business practices.

81  
Values

Interestingly all interviewees at Canon were very open to understanding

the significance of SM and were honest in declaring that they were at the
beginning of SM strategy investigation and ready to learn. This suggests
an open culture, a prerequisite in preparing for a SM strategy.

However, questions regarding the culture of the marketing department

resulted in statements of conservatism, being withdrawn, lack of
innovation, poorly funded and under-resourced. Canon marketing
possessed a low risk attitude, restrained by Canon Europe in terms of
restricted localized freedom and the ‘Canon’ way, bred from Japan
(Watson, 2009). Cultural descriptions included passionate, caring and
committed, but functional and role-defined under strong managerial
hierarchy.

When questioned, Canon did not recognize the value of developing

internal tools for collaboration, and knowledge sharing as part of SM
strategy. Furthermore there was the perception that the SM strategy and
related work must always be outsourced by agencies and developing an
internal SM culture, resource and skills was not necessary (Freeman,
2009).

Interestingly, all interviewees spoke about RM strategy, but were unclear

on its purpose, expressing potential confusion of the concept across
Canon. The importance of internal personal relationships (outside of the
context of RM) was considered part of the very fabric of Canon in driving
business and getting things done, again highlighted by all interviewees.
Although recognized, no clear link between SM or RM was stated,
although it was deemed there was connectivity.

Canon indicated that attitudes to SM would only change if the competition

started using SM, forcing Canon to play catch up (Hicks, 2009). This
expresses some significant attitudinal approaches to innovation.
Furthermore, the B2C SM ‘specialist’ suggested SM only really had value
82  
for B2C activity and that it has little scope in the B2B environment
(Freeman, 2009). This was very interesting in understanding the
blinkered (albeit through lack of knowledge) approach to developing
acohesive Enterprise SM strategy.

The concept of SM activity and action within the community, as per

Schau et al’s (2009) ‘practices’, to create value was not something Canon
understood. Canon saw that just being active in SM would produce sales
results and financial value.

83  
Resources

The internal Canon perception of resourced SM activity is that Canon was

only just beginning to understand the potential benefit (Watson, 2009).
For example, when asked about the best tools and methods of SM
strategy, the response was the ‘LinkedIn’ social networking application or
using forums, without any further substantiation. Simply a technology
focused perspective.

The creative and marketing teams were only just beginning to cooperate
on SM and had shied away from the magnitude of the task based on the
lack of internal knowledge and resource (Hicks, 2009). Interestingly, any
diversion of attention from traditional marketing activity that provides
[classic] lead generation, and risks potentially not hitting the product sales
numbers had prevented significant movement towards a new SM strategy
(Hicks, 2009). The demands for immediate tactical economic returns on
marketing activity have challenged Canon and any longer term SM
strategy considerations.

However, interviewees did not mention any form of Leadership SM

support driving this strategic investigation. This is very important in
assessing the potential for likely SM strategic success over the long term.

84  
Canon EVR Congruence Diagram
 
Here, the size of the circles represents the strength of that area.

Figure 29

85  
Figure 30 – SWOT Analysis of Canon

86  
Graphical Interview Interpretation

Responses to the Canon interviews were scored as follows:

Figure 31 - A) Questions

Figure 32

Canon - Interview Spidergram

SM Knowledge and
Understanding
Overall Enterprise SM 8   SM and Cross
7   Functional Relevancy
Strategy
Understanding
6  
Importance of Internal 5   Understands SM linkage
Personal Relationships 4   to Customer Service &
3   Product Development
2  
1  
Understand SM Value to SM Relationship to
the Enterprise
0   Brand

Existing Relationship SM Tools used in

Marketing Strategy Enterprise

Knowledge Management
SM as part of the
or Collaboration tools
Marketing Mix
used
Internal SM Skill Levels

This visualizes the weakness in understanding SM as a concept and the

lack of tools and skills levels to drive SM strategy. However, the presence

87  
of the Canon RM strategy is strong (if misunderstood) as well as the
importance of personal relationships within the internal Enterprise
environment.However, skilled SM resource and behaviours, processes as
well as access to SM technology and applications are virtually non-
existent. Furthermore, no research has been undertaken into the internal
development required to pollinate a successful SM strategy over the
longer term.

Figure 33 - B) Themes

Figure 34

Canon - Emerging Interview Themes

Ethical, value driven,
committed culture
10
8
6
Enterprise as a
4 Can see connection
Enterprise 2.0/Social
between RM and SM
Business Culture 2
0

Co-creates Services and Leadership Support for

Value with Customers SM

The significant elements from these results are the lack of any leadership
support and any form of Enterprise 2.0 operations. Canon CBS has no
SM presence, either in monitoring (SM ‘listening’ through SM tools) the

88  
SM community to measure sentiment, considering relevant issues or key
value ‘practices’. Consequently, actually engaging in SM channels and
proactively participating or creating relevant SM communities does not
exist. Canon is therefore unable to communicate with customers and
communities online or ‘crowdsource’ for opinion on its products or
services. Canon ‘thinks’, rather than ‘knows’ what MPS customers want
and value. Developing this activity requires internal skills in SM research
and interaction. This means that whilst the culture is strong, Canon
scores very low in terms of service co-creation (SDL) and being an
Enterprise 2.0 Social Business Culture, They appear unable to derive or
demonstrate SM value to the organization through SM interaction.

89  
Cisco Interviews

The background information for this investigation is that Cisco has

invested in a SM strategy over the last three years, led from the USA and
UK.

Environment

Cisco considers,"SM as building brand reputation. People are talking

about our brand [Cisco] in SM through word of mouth dynamics"
(Chalmers, 2009). The conversations are happening and it’s the chance
for Enterprises to get involved and attempt to influence (Chalmers, 2009).
Cisco has passed the initial SM research and ‘SM listening’ phase and
has added a SM engagment strategy.

For Cisco, SM is used for information, brand awareness and leading

customers to interact and have a relationship with sales channels and the
Enterprise, rather than a direct lead generation strategy (Sands, 2009).
Cisco does not simply see SM as about just being on the web, but as part
of relationships and operational communications structure.

SM’s value as a new communications channel makes Cisco more

accessible to all its audiences. This helps people to understand the
[Cisco] brand and company values, making it relevant and personal to
customers with brand personality, tone and identity awareness (Roffey,
2009).

90  
Values

In terms of internal Enterprise 2.0 SM tools, Cisco leverages their own

‘wiki’ (‘Ciscopedia’) to promote knowledge sharing and understanding
(Roffey, 2009). Cisco also uses an internal version of Twitter for
microblogging, doubling as an ‘internal Facebook tool’ linked to personal
SM profiles. This is core to developing internal SM communication across
the Enterprise (Sands, 2009). Cisco have its own 'Marketing Vibes'
application, an internal notice board of posts, skill sets, blogs, and videos,
which actively encourages staff to submit and create content for
education, knowledge sharing and training (Sands, 2009). Flip video
cameras (http://www.theflip.com/en-gb/) are provided and Cisco
encourages staff to create short video content about news, product
updates and releases which are submitted on “Marketing Vibes’. This
brings learning to life accompanied by 180 character (maximum)
descriptions to succinctly define the intention of the release (Roffey,
2009). This is Enterprise 2.0’s SM collaboration strategy in action, but
developed in an iterative, organic methodology. No single application of
Social Business Software was deployed.

Cisco actively promotes the use of SM in the workplace. It is socially

acceptable to use SM in work time to create communities and interact
both internally and externally (Roffey, 2009). This embryonic Enterprise
2.0 atmosphere, complete with SM guidance and SM engagement HR
policies is recognised as promoting a methodology of efficiency and
understanding.

Cisco supports an open culture, a flat Enterprise marketing management

structure and openly uses SM tools to humanise the marketing team and
the business (Sands, 2009). An innovative, open, experimental and
accountable culture is promoted (Chalmers, 2009). “Anything is allowed,
but we must prove its worth through intelligent thought and analysis. Even
if it does not work, we share and express the learning and conclusions”
(Chalmers, 2009).

91  
Internal cultural relationships at Cisco are extremely important in
marketing operations but the open culture and nature of 'Cisco people’
who ‘do’ and ‘deliver with passion’ is cited as key (Roffey, 2009). These
‘Cisco people’ make the difference in developing a successful SM
strategy (Sands, 2009).

92  
Resources

In terms of industry thought leadership, John Chambers the Cisco CEO is

a prime example of someone using SM (his company blog) to express
both business and personal branding. This blend enhances both his and
Cisco’s reputation as a thought-leading technology SM house and
inspires internal employees to play a part in SM without fear (Appendix
10). “SM is still in its infancy, but is heralded with positivity as part of an
emergent marketing mix. It is becoming part of core SM strategy from the
top down, with leadership backing” (Chalmers, 2009).

However, when questioned, the core challenges in developing a SM

strategy in its inception was scepticism (Chalmers, 2009). Essentially it
was Marketing vs. ‘Rest of Cisco’, who initially saw SM as a fad, even
with leadership support (Chalmers, 2009). Overcoming this reticence
required demonstrating success via structured internal updates and
developing working practices to measure success. Even within the team,
"…most of the marketing organisation was terrified of SM, due to not
having levels of control” (Chalmers 2009). However, the success of
Cisco’s SM activity and strategy overcame the cynicism, as it was clear
that for Cisco, the expected SM objectives of brand development became
apparent through emerging online conversations. Here Cisco measured
the elements of their own organic version of Schau et al’s. (2009)
‘practices’ to express value and show success – volume of conversations,
brand mentions, reaction and movement towards the sales funnel.

93  
EVR Congruence Diagram

Here, the size of the circles represents the strength of the area.

Figure 35

94  
Graphical Interview Interpretation

Responses to the Cisco interviews were scored as follows:

Figure 36 - A) Questions

Figure 37

Cisco - Interview Spidergram

SM Knowledge and
Understanding
Overall Enterprise SM 9   SM and Cross
Strategy 8   Funtional Relevancy
7  
Importance of Internal 6   Understands SM
Personal 5   linkage to Customer
Relationships 4   Service & Product
3  
2  
Understand SM Value 1   SM Relationship to
0  
to the Enterprise Brand

Existing Relationship SM Tools used in

Marketing Strategy Enterprise
Knowledge
SM as part of the
Management or
Marketing Mix
Collaboration tools
Internal SM Skill used
Levels

95  
SM strategic development at Cisco and the emergence of Enterprise 2.0
attitudes, culture and tools had been directly linked to employing people
with vision and the ability to drive change in the larger organisation. This
required a change in creating new job roles, hiring culturally different
marketing skill sets complete with the right attitude, proactive nature and
risk ownership capability (Roffey, 2009). Essentially, a fundamental SM
cultural and attitudinal change has occurred from within.

Figure 38 - B) Themes

Cisco - Emerging Interview Themes

Ethical, value driven,
committed culture
10  
8  
6  
Enterprise as a 4   Can see connection
Enterprise 2.0/Social
between RM and SM
Business Culture 2  
0  

Co-creates Services
Leadership Support
and Value with
for SM
Customers

The key here for Cisco is the leadership support for their SM strategy.
While the ethical, value driven culture is not as strong as Canon, Cisco is

96  
breeding a developing Enterprise 2.0 environment and the basis of a
Social Business.

Cisco has "Customer journeys, not RM." (Roffey, 2009). However, Cisco
recognises customer journeys as a development of RM. They do this by
applying SM to an integrated campaign of marketing operations where
SM plays an increasingly important part in internal and external
relationship building (Roffey, 2009). Cisco score low on service co-
creation as it prides itself on being a technology leader and relying on
internal R&D to develop services. However, it does leverage its ‘Netpro’
Cisco SM community of accredited Cisco customers and engineers for
customer service benefit, where active community members solve each
other’s Cisco issues and problems (Appendix 11). This presents
incredible SM value in brand connectivity and operational customer
service and support savings.

97  
NixonMcInnes Interviews

NixonMcInnes is a leading SM agency providing strategic SM

consultancy, SM campaign management and associated SM technology
solutions.

Environment

To NixonMcInnes, SM is about audio, video and textual content that is

produced by people on the web in their everyday lives. (McInnes, 2009).
McInnes describes SM as ”not conscious or precise it provides
consensus and authenticity of meaning and opinion through sharing, via
the wisdom of crowds” (2009). Furthermore, “SM is the development of
communication and social human behaviours between people, enhanced
and evolved through online tools; facilitating openness, accountability,
integrity and honesty” (Carlson, 2009). NixonMcInnes see SM as hugely
powerful in creating word of mouth conversation and advocacy through
‘relationship media’ (Breadmore, 2009).

"SM is about helping people understand in a very credible authentic real

way, how other people have experienced the same problem they have,
how other people have solved that problem and what the possible
solutions are" (McInnes, 2009). This breeds a smaller number of high
value ‘relationships where trust becomes a core component (McInnes,
2009). Such trust through SM interaction brings people and sales into the
sales funnel as pre-qualified, serious customers (McInnes, 2009). The
obvious productivity and operational gains of using a SM strategy in this
regard, not only improves internal Enterprise profitability, but also
leverages SM to outgun the competition (McInnes, 2009).

98  
Values

"Being social is at the heart of what we do” (Lloyd, 2009). SM tools are
part of social evolution and SM is applying this concept to business
practice. “SM lets you be at the forefront of advancing technology and
news - be a creator of thought, or leader of innovation and creativity -
leveraging SM tools for business communications” (Lloyd, 2009). This is
strong evidence of Enterprise 2.0 operations in terms of internal values
and perspectives.

"In terms of operations, all businesses’ are social businesses’, run by

people, selling services and products to other people. Therefore sharing,
collaborating, learning and value creation opens communication channels
and empowers both sides” (Lloyd, 2009). This description echoes SDL,
applied through SM strategy and technological interaction. For
NixonMcInnes SM strategy is managing profiles, the spaces it touches
online and earning respect through maintaining an eye on the latest
social behaviours in SM technology (Nixon, 2009).

Internal culture and trust appears to be the cornerstone of creating value

at NixonMcInnes. "We think that culture is competitive advantage, or
disadvantage, depending on how well we do it." (McInnes, 2009) To
breed and nurture this internal relationship based SM culture,
NixonMcInnes operates open book accounting, openness in company
communication and direction. In addition, NixonMcInnes has a flat
management structure, two open seats on monthly Board meetings,
continual interpersonal and team feedback, employee reviews and a
mentality of ‘facing tough decisions head on’ (Lloyd, 2009). This has led
to the agency being awarded a place in the 2010 Worldblu list of most
democratic workplaces in the world (Appendix 12). At NixonMcInnes an
internal SM strategy of developing humility and being prepared to take
feedback and criticism supports external SM communications. This helps
manage the way in which feedback (both positive and negative) and
relationships are developed with clients (McInnes, 2009).

99  
"Personal relationships are everything to our company. NixonMcInnes is
a professional service organisation staffed by knowledge workers”
(McInnes 2009). Such relationship focus separates the Enterprise from
being simply a collection of individuals. Here group relationships unlock
potential, as individuals combine to create value greater than the sum of
component parts (McInnes, 2009). These relationships are considered to
be the difference in winning and losing business and are facilitated
through knowledge sharing and collaboration, bred by using internal SM
tools.

This internal structure creates SM value through cultural exchange,

where the advanced state of NixonMcInnes culture has a positive effect
on customer engagement, acquisition and churn management (Nixon,
2009). “NixonMcInnes has the culture of the Internet and the Internet has
facilitated innate social conversations. However, you can’t build a culture
on tools and technologies" (Nixon, 2009). The 'collective brain" part of
internal collaboration and SM communication builds on the right ‘cultural
fit’ to have technology supporting cultural and relational development
(Breadmore, 2009).

For NixonMcInnes, SM value is about creating presence in places that

people will look for judgement and rationalisation of their thoughts and
decisions. It is an ideal route between people and creates communities
that can help each other (Lloyd, 2009). This indirectly hints at elements of
Schau et al’s. (2009) model of value creation in the community but
NixonMcInnes do not measure social network practices value creation
such as ‘governing’, ‘welcoming’, or ‘empathizing’.

100  
Resources

In the context of the analysis the best tools for SM strategy, “Research is
the best tool for SM” (McInnes, 2009). “SM is looking at an observational
pool of life and thought on the Internet, which has huge potential as a
research tool; providing those ‘moments of truth’ for people and
companies” (McInnes, 2009). Furthermore, "SM is an unmitigated,
unbiased, unfiltered cauldron of opinions; a gigantic observational pool of
life. Marketers should unlock internal knowledge [through SM] to help with
those (existing and prospective customers) seeking solutions to their
problems” (McInnes, 2009).

To actually facilitate internal resources with SM behaviour, team working

and collaboration, NixonMcInnes use the following core SM applications -
Yammer (the internal real-time microblogging application) is used for
communication, updates, discussion, knowledge sharing and
collaboration (Appendix 13). An emergent wiki application for sharing
content and knowledge management is also used. "Email as a
communication tool is fundamentally broken, therefore there is a need to
create an ‘internal grapevine” (McInnes, 2009). Using Yammer and the
NixonMcInnes wiki creates a ‘rambling garden of knowledge’ as an
alternative to using a controlled and stagnant intranet and email
overload”(McInnes, 2009). Twitter is used significantly, becoming both an
internal and external communication tool, providing presence in both
public and work ‘spaces’ supporting duality of Enterprise 2.0
communication. NixonMcInnes also uses the thought leadership activities
of staff entries in the NixonMcInnes blog and attends and speaks at core
SM events.

101  
EVR Congruence Diagram

Here, the size of the circles represents that strength of that area.

Figure 39

102  
Graphical Interview Interpretation

Responses to the NixonMcInnes interviews were scored as follows:

Figure 40 - A) Questions

103  
Figure 41

NixonMcInnes  -­‐  Interview  Spidergram  

SM Knowledge and
Understanding
10   SM and Cross
Overall Enterprise SM
9   Functional Relevancy
Strategy 8   Understanding
Importance of Internal
7   Understands SM
6   linkage to Customer
Personal 5   Service & Product
Relationships 4  
3   Development
2  
Understand SM Value 1   SM Relationship to
0  
to the Enterprise Brand

Existing Relationship SM Tools used in

Marketing Strategy Enterprise
Knowledge
SM as part of the Management or
Marketing Mix Collaboration tools
Internal SM Skill used
Levels

This spidergram shows that SM knowledge, skills, usage of SM tools and

critical understanding of purpose are very strong. However,
NixonMcInnes do not have a marketing team, or a defined marketing
plan, therefore any marketing mix. Instead, being a SM agency ‘that lives
and breathes SM’, this denotes an operation that exudes collective SM
marketing which replaces the ‘marketing mix’. This also applies to the
lack of RM strategy, as although RM is not defined as a strategy,
NixonMcInnes exude RM purpose at its very core through structured SM
operations. Although NixonMcInnes operates as an effective SM House
with Enterprise 2.0 internal structure and tools, its SM strategy is not
defined. Arguably, there is no defined SM strategy (therefore scores
low), but a SM strategy emerges from the way in which NixonMcInnes
operates a Social Business culture - SM strategy is what they are.

104  
NixonMcInnes leverages the concept of using internal social capital as
the emergent SM strategy to create value, forming the backbone of
operations. The lack of command and control hierarchy appears to
enable and nurture this SM culture and value position. However, this is
easier to enable in a smaller company of just 20 employees, having
grown organically with this culture and experimenting with SM technology
over 10 years.

Figure 42 - B) Themes

Figure 43

NixonMcInnes - Emerging Interview

Themes
Ethical, value driven,
committed culture
10  
8  
6  
Enterprise as a
4   Can see connection
Enterprise 2.0/Social
2   between RM and SM
Business Culture
0  

Co-creates Services
Leadership Support
and Value with
for SM
Customers

Will McInnes, Managing Director, drives the vision of SM strategy, applies

leadership support to internal employee SM activity and offers a strong
opinion related to SDL through SM. “SM is changing the relationships you
have around you. Wouldn't it be incredible if we could unlock all the

105  
potential our people have, all of the value of our products and services we
have and even more incredible if we could help our clients realise the
mutual benefits and consequently tell our stories for us?” (McInnes,
2009). SM strategy is about finding out what customers need, overcoming
barriers for them and giving them solutions, rather than spending money
on convincing them they need something else you have (McInnes, 2009).
In essence, this highlights the difference between product and technology
led Enterprises (such as Canon) and the SM strategy of Enterprise
service co-creators. This is the mentality of Enterprise 2.0 leadership and
is expressed with high scoring in the above themes. Interestingly,
NixonMcInnes see “SM strategy as almost synonymous with RM, where
SM uses online social tools to facilitate RM and intuitional relationships”
(Lloyd, 2009).

106  
Comparing and Contrasting Graphical Interview Interpretation

Overlaying the Case Studies provides a ‘spidergram window’ of the core

differences in Enterprise structure related to SM strategy. The
comparison spidergrams show both line and block representations giving
visibility of scoring, and overall dominance.

Canon’s position in this graph is directly proportional to an Enterprise at

the very beginning of researching and developing SM strategy and the
ten low scores (4 or below) present an opportunity to begin SM change
and transformation at grassroots level. However, their high scoring in the
importance of internal personal relationships (as per NixonMcInnes
culture) and existing RM strategy presents an opportunity for developing
a SM strategy.

Figure 44 – A) Questions Comparison

SM Knowledge and
Understanding
Overall Enterprise SM 10   SM and Cross
Strategy 9   Funtional Relevancy
8  
Importance of Internal 7   Understands SM
6   linkage to Customer
Personal 5   Service & Product
Relationships 4   Development
3   Canon  
2  
Understand SM Value 1   SM Relationship to
to the Enterprise 0   Brand Cisco  
NixonMcInnes  
Existing Relationship SM Tools used in
Marketing Strategy Enterprise
Knowledge
SM as part of the Management or
Marketing Mix Collaboration tools
Internal SM Skill used
Levels

107  
Figure 45 - A) Question Comparison Overlay

SM Knowledge and
Understanding
10 SM and Cross
Overall Enterprise SM
9 Functional Relevancy
Strategy
8 Understanding
7 Understands SM
Importance of Internal 6 linkage to Customer
Personal Relationships 5 Service & Product
4 Development
3
2 Canon
Understand SM Value to 1 SM Relationship to
the Enterprise 0 Brand Cisco
NixonMcInnes

Existing Relationship SM Tools used in

Marketing Strategy Enterprise

Knowledge
SM as part of the
Management or
Marketing Mix
Collaboration tools used
Internal SM Skill Levels

Both NixonMcInnes and Cisco appear very strong in many of the

knowledge areas, based on their SM experience, SM resource, SM tools
and activity within SM. However, Cisco differs from NixonMcInnes in that
it has a pre-existing SM strategy and has SM integrated as part of the
marketing mix, scoring highly in these areas. The key learning here is that
although NixonMcInnes does arguably have a SM strategy (it’s what they
are), in large global Enterprises such as the size and diversity of Cisco,
SM strategy needs to be integrated within the pre-existing marketing
strategy and owners.

108  
Figure 46 - B) Themes Comparison

Ethical, value
driven,
committed
culture
10  
8  
Enterprise as a 6   Can see
Enterprise 2.0/ 4   connection
Social Business between RM Canon  
2  
Culture and SM
0   Cisco  
NixonMcInnes  

Co-creates
Services and Leadership
Value with Support for SM
Customers

Figure 47 - B) Themes Comparison Overlay

Ethical, value
driven,
committed
culture
10  
8  
Enterprise as a 6   Can see Canon  
Enterprise 2.0/ 4   connection
Social Business 2   between RM Cisco  
Culture and SM
0   NixonMcInnes  

Co-creates
Services and Leadership
Value with Support for SM
Customers

This second overlay, presents some of the most interesting data. Canon
score highly on both value driven culture - but poorly elsewhere. This
emphasizes that Canon require a SM strategy that looks at developing
the internal Enterprise 2.0 environment and creating internal change in
attitudes and behaviors with appropriate strategy and resource, as well as
SM technology. SM leadership emerges as a key component of SM

109  
strategic preparation with NixonMcInnes and Cisco almost level.
NixonMcInnes score highly in all areas, underpinning its core Social
Business and Enterprise 2.0 activity.

110  
Conclusion

Preparing the Enterprise for SM strategy requires the adoption of new

managerial perspectives and mindsets, positioning the Enterprise for the
digital age. Evolving internal Social Business behaviors and becoming an
Enterprise 2.0 operation underpins the business transformation
necessary for 21st century commercial operations. SM strategy is
preparing for fundamental Enterprise change to drive longer-term
profitability, improving internal employee communication, knowledge
exchange and driving customer relationships to new levels of intimacy
and longevity.

SM strategy begins with developing Social Business behaviors inside the

Enterprise. Changing the internal dynamics of your Enterprise to be able
to understand and interact with SM is akin to the cultural overhaul
required to do so. Remember SM culture and behaviors drive a
successful SM strategy, not simply the deployment or operation of SM
tools and technology. SM tools are part of social evolution and SM
strategy is applying this concept to business practice to develop
Enterprise collaboration, efficiency and participation. Perhaps the term
‘SM strategy’ may soon breed a school of thought – Social Business
strategy.

However, larger strategic SM projects will fail without the right internal
mentality, aptitude and attitudes to inter-personal relationship building.
This includes altering the hierarchical command and control barriers of
larger corporate institutions. Understanding the value of SM, creating the
SM vision and structuring the objectives of SM engagement underpin
preparation. However, this is a challenging task for any Enterprise and
requires time and resource, yet this is a challenge that will have to be
faced at some point. Action now may well enable your Enterprise to
evolve and outgun the competition. Therefore, a position on SM strategy
is essential to any modern Enterprise, even if it is simply investigating the
challenge and relevancy.

111  
Each Enterprise needs to develop an individual, emergent and iterative
SM strategy to becoming a Social Business and Enterprise 2.0
operations. Leadership support, sponsorship and cross-functional
integration are vital components for success. However, a SM strategy is
not free. Budget is required to create SM strategy. Developing SM
success is not a short-term tactical marketing plaster to drive sales in a
recessionary climate. Enterprises must recognize that although many SM
tools are cheap or even free, it is the resource operating the SM tools and
the skill in managing and interpreting the landscape that requires spend
on headcount, training and nurturing these behaviors. A new set of skills
needs to be brought in through recruitment and leaning on SM agency
consultants.

Developing the intangible behavioral aspects of SM marketing strategy

such as knowledge exchange, collaboration and relational calibre is all
part of the preparation. The key is to understand that SM culture is as
important to strategy as understanding the business objectives of
engaging in SM. The selection and usage of tools for SM strategy will
naturally emerge when Enterprises prepare by understanding the concept
of Social Business behaviours, Enterprise 2.0 dynamics and the value
that can be unleashed and measured.

112  
Social Media Strategy Conclusion Model

The following model demonstrates the cornerstones of preparing for SM

strategy and the elements of internal Social Business behaviour
development and learning over time to become Enterprise 2.0. This
theory’s relevant aspects are expanded below.

Figure 48 - Alex Bennett SM Strategy Model

113  
Leadership Support and Engagement

SM strategy must be implemented at grassroots level and with full

leadership sponsorship in principal and budget. Leadership participation
and advocacy of SM (as shown at Cisco and NixonMcInnes) are
fundamental to success, but ownership must reside with Marketing.
Openness, democracy, employee empowerment and managerial
transparency must be driven by leadership and senior management
through engagement in SM practices – e.g. thought leadership through
blogging. This sets examples to the workforce of acceptable and
beneficial Enterprise 2.0 SM behaviours via SM tools and applications.
This increases knowledge sharing and competitive edge and improves
internal business relationships and external linkage with customer
stakeholders. Leadership must recognise that SM is about changing
business dynamics and value creation over the longer-term – it is not a
quick fix to generate sales overnight.

114  
Developing Social Media Culture, People and Behaviors

It is the internal development of a social business culture, social

behaviors and social relationships within the Enterprise that prepares any
organization for a successful SM strategy and the development of
Enterprise 2.0. However, you cannot build a SM culture by just
implementing SM tools. In order for strategic success, Enterprises, like
Canon, need to become fluid in exchanging information by nurturing an
open, democratic and collaborating internal environment. Command and
control hierarchy management styles need to be adjusted to allow Social
Business behaviors and the culture to breathe. Enterprises must be
honest about recognizing their existing culture and understand the
challenges and receptiveness of new working SM paradigms upon the
existing culture.

NixonMcInnes is arguably a Social Business and already engages in

Enterprise 2.0 operations. Importantly, this is the natural output of
developing an internal SM culture. Cisco has a culture of individuals using
SM, but NixonMcInnes has an individual culture of SM and Social
Business behaviours. Canon has no SM culture, but has a culture of
relationships and therefore has the cultural base for SM change,
development and success. NixonMcInnes naturally appears to operate
without classic larger Enterprise hierarchy components where its SM
culture of communication and behaviors has created an environment that
wins business and co-creates value and services with customers
naturally. Customers appear to buy NixonMcInnes’ services as they
admire the culture and want this culture to rub off on them. This is an
important consideration on the value of developing internal Social
Business behaviors in improving external customer relationships.
Deciding whether to leverage the social capital of employees and whether
this is appropriate (as seen at NixonMcInnes) therefore becomes a key
element of cultural SM strategy.

115  
Implementing Social Media and Enterprise 2.0 Tools

SM is not about the tools and technology, it’s about the research and
engagement it can provide Enterprises when using SM tools. The
evolution of Enterprise 2.0 and SM strategy in larger Enterprises requires
selecting SM tools and applications that fit with the business objectives.
These tools become the driver of implementation once SM strategy and
behaviors have been grounded. SM technology and applications are
simply enablers of communication and although a key part of the
strategy, they form only part of the SM strategy. This echoes Forresters’
(2007) POST SM strategy, where technology is seen as the last piece.

SM technology provides the gateway to SM benefit and value but it is the

intangible interpretation of marketing strategy, and appropriate SM
behaviours when using the technology that will differentiate the
Enterprise. SM purpose, vision, objectives, cultural aptitude and
understanding the online community environment must be aligned to SM
technological introduction.

116  
Social Media Knowledge

SM strategic learning is supported by the need to use retained SM

agencies to educate and teach SM skills and behaviours. Such practical
engagement provides SM information, SM strategy ideas and strategy
ratification. Agencies can help improve SM knowledge levels and, over
time, can be used to support the backbone of internal SM skilled
resource, create internal evangelists and assist HR with SM recruitment.
This forms part of the longer-term SM strategy, where funding is vital and
selecting the right agency is even more important.

117  
Social Media Value, Service Co-creation & Knowledge Exchange
Ethos

Addressing and adopting SM and Enterprise 2.0 is creating value in itself.

SM value is unleashed from nurturing customer relationships and co-
creating services as part of internal SM cultural change. These
relationships are considered to be the difference in winning and losing
business and are facilitated through knowledge sharing (exchange) and
collaboration bred by using internal SM tools. Embracing SM internally as
well as externally mandates the softer behavioural (intangible) aspects of
SM strategic value and appears to be a significant source of Enterprise
2.0 differentiation.

However, value does need to be measured. This is where the Schau et

al. (2009), has provided a strong platform for addressing and
understanding the value components of ‘practices’ in the SM community.
Selecting all or a range of the components and matching them against
SM research provides a more tangible structure to develop strong
business cases for larger SM strategy and resource allocation. None of
the companies in this study measured SM value in this context and while
they all displayed some aspect of RM or SDL value generation, value
measurement resided as an intangible concept. Measuring SM value and
the SM strategy will be able to prove its worth.

SM value is not just co-created by service consumption, but also by

perception and affinity bred by awareness in SM channels. Here, SM
value is the ability to generate profitability from the knowledge
management, information exchange and thought leadership that an
internal SM culture brings to business.

Arguably, a SM strategy supports the natural progression of RM through

the fundamentals of SM technology, bringing the SDL model to life
through a continuous flow of knowledge, information and value exchange.
SM strategy is not a logical development and advance of the
communication strategy known as RM, but appears to embody a
118  
methodology by which aspects of RM activity can be brought to life. Any
organization valuing RM or SDL really needs to consider that SM is an
enabler of these theories and a fundamental part of strategic marketing
‘operant’ resource thinking. Here, the creation of SM ‘knowledge and
mental competencies’ within the Enterprise, supported by SM ‘behaviors’
is key to SM strategy. However, RM and SDL do not consider the cultural
and technological considerations an Enterprise has to adopt to
successfully deploy or embody these concepts. This is where SM
strategy and developing the Social Business by nurturing a SM culture
and SM technology provides the linkage and solution to bringing these
concepts to life in the digital age.

NixonMcInnes arguably do RM and follow the SDL model already without

recognising it. Its SM strategy and Enterprise 2.0 business is all about
this principle in action, day-to-day, not just in theory. NixonMcInnes
understand that SM strategy is the methodology of co-creating customer
value using the Internet as a research institution to develop deeper
customer relationships, develop brand perception, improve internal
educational and evolve their service. This value is achieved via the
interchange and real-time relationship connectivity bred by a SM culture
using SM tools.

Emerging as an Enterprise 2.0 organisation through SM strategy is as

much about behavioural and attitudinal change as it is the tools of
collaboration and social networks. As per the example of NixonMcInnes,
an embryonic culture and democratic environment nurtures SM activity
and thinking and results in the formation of the Enterprise 2.0 workplace.
Here, SM strategy is at the very core of its operation as an Enterprise,
exchanging ideas and knowledge between staff and their customers,
proving a value creation in marketing terms through a ‘live’ model of SDL.

119  
Recommendations

The following is a proposed recommendation criterion for SM strategy

preparation analysis and evaluation, based on behavioral and cultural
considerations.

For the Enterprise it is crucial to align the SM strategy to current business

objectives. Furthermore, remember that social networking and SM sites
do not distribute information – people do. This is a vital to consideration
when identifying the "social system" side of digital infrastructure as part of
SM strategy. The most important factor is to understand that the SM
business objectives are multiple and varied. Enterprise 2.0 and Social
Business SM strategy touches down on all cross-functional areas of your
business as shown below.

Figure 49 – Alex Bennett SM Strategy Model Overlaid on Internal

Functions

120  
Understanding how it will affect, influence or impact each area is critical.
This focuses on the deeper Enterprise 2.0 development dynamics,
highlighting the ‘people’ aspects as the driver of Social Business
behaviors and Enterprise 2.0 evolution.

SM can be used to maintain, manage and develop brand, reputation and

services and generate revenue from within your Enterprise. Customers
and competitors are talking and generating opinions about your
Enterprise, products and services or are generating industry related
industry thought in SM channels. Firstly you must monitor these
conversations for insight and positioning, then decide whether to become
part of the conversation to achieve a set of Enterprise objectives.
Mapping the competition and the online landscape (through resource and
SM tools) provides research into the communities of interest around
Enterprise service portfolios.

A sustained SM programme over time will require resource (new staff and
agency relationships) and a sustained SM budget. Leaders need to
mandate authority and responsibility to an individual SM strategist or
Enterprise 2.0 team to work with and lead cross functional teams. The
selection of the SM strategist must be based on characteristics of longer-
term implementers and co-ordinators of business strategy, rather than
traditional tactical marketing personnel. An integrated SM strategy needs
to be structured from such a centralized area and with a common SM
Enterprise tone, defining the rules of SM research and potential
engagement, including resultant interaction policy, tools and ‘Enterprise
Voice’14. Responsibilities must also include developing and measuring a
process of SM value.

Example activity details are shown below.

                                                                                                               
14
Enterprise Voice is the style and nature of how the Enterprise will communicate in SM.
This could be formal and conservative, or more casual and ‘cool’.  

121  
Figure 50

This person or team will assist with deciding on what you want to use SM
for and why. Is it for sales generation, brand awareness, improving
customer service or product development? Is its intention to improve
internal employee relationships, drive efficiency, knowledge sharing or
competitive advantage? It may well be a blend of many aspects, but be
clear on the desired intention. This provides the platform to define themes
of purpose. SM theme objectives could break down into the following
example areas:

122  
Figure 51 – Example SM Activity Theme Objectives

If the outcome is generating qualified sales leads or engaging to

demonstrate thought leadership, decide on what is relevant for your
business. Do not think that simply tactically dabbling in the SM
environment will generate economic returns through increased sales.
Look deeper at what SM can do for the Enterprise as whole by
developing Enterprise 2.0 operations and a Social Business culture. For
example, Cisco uses a SM strategy to improve brand positioning and
create awareness but the process of doing this has driven an output
internal Enterprise 2.0 efficiency and a new SM culture.

Importantly, becoming involved in SM strategy without social good,

values and ethics presents some very difficult barriers for success. A
morally moribund service set and culture will be uncovered swiftly through
SM activity. Consider this before engaging with SM communities. This
may well affect your SM strategy plans. Ethical operations, open
practices and the desire to deliver services for the good of the customer
and the industry are key. Understanding that there will be different SM
approaches for different countries; dependant on culture and adoption of

123  
different social network environments is crucial when planning s SM
strategy for an international company.

In terms of Social Capital, encouraging employees to start building their

own SM profiles is vital – either on internal SM applications or public SM
tools. This highlights the importance of HR developing a SM policy and
appropriate usage guidelines. These ‘guided’ changes in internal
behaviors will drive the movement of information horizontally and
vertically through collaborative working and experience. A ‘head of’ a
team or department may not see the value of releasing all of their
knowledge (their power) to the internal environment, therefore, HR needs
to structure career and performance rewards for evolving as SM leaders
inside the business. Rewards for SM behavior must be encouraged. An
outline of initial HR and Resourcing activities is shown below.

Figure 52

Depending on the defined SM business objectives of the SM strategy, a

selection of SM technologies should be made both covering internal (e.g.
Yammer, Delicious, Wiki) and external SM inputs and outputs (e.g.

124  
Twitter, a Leadership Blog, Ning Community Creation). However, SM
moves so quickly and technology changes so fast that an Enterprise
cannot stay on top of it all. Therefore the selection of a suite of SM tools
for the initial strategy is vital. This can be reviewed through the course of
SM engagement, but stick to the agreed tools and try and prove or
disprove their value. Tools will depend on whether you are simply
‘listening’ or ‘listening and engaging’.

Larger Enterprises may want to consider sophisticated internal Enterprise

2.0 Social Business Software that support collaboration, knowledge
exchange, SM research and cross-functional integration. This is the
application of tools, to cement SM behaviours and develop a SM
Enterprise 2.0, collating the behaviours and skills into process. Examples
include Jive Software (http://www.jivesoftware.com/) (Appendix 14),
SocialText (http://www.socialtext.com/) (Appendix 15) or Confluence
(http://www.atlassian.com/software/confluence/) (Appendix 16). There
are significant benefits of using Social Business Software as the
methodology to entrench Enterprise 2.0 behaviors through technology.
Social Business software of this ilk provides SM knowledge sharing and
collaboration tools integrating relationships providing Marketing, Support,
Customer Service, IT, Support, Sales with Enterprise 2.0 with web
dashboards. These monitor communities and integrate the social network
and micro-blogging environment to research and pull information from the
Internet and then manage the knowledge exchange across the
Enterprise. This software is close to putting in place the most efficient tool
of supporting internal SM strategy and Enterprise 2.0 development. Jive
appears to be the frontrunner in this area.

Actions to kick-start SM strategy and adoption require senior

management and leadership to inspire and ‘show the way’. Leading the
change from the top both in terms of SM sponsorship and becoming part
of the Enterprise 2.0 SM machine means that Leaders have to start using
the select SM applications and tools. Video is really useful as an
engaging format to share messaging and inject some life and interest,
both internally and externally. It can be humorous, informative and

125  
certainly more interesting than a static pdf update. Video can tell a story
very quickly and is ultimately more attractive.

It is important to remember that IT teams should not be making the

decisions on technology that will affect the move to Enterprise 2.0 based
on their reluctance to move to and support new SM platforms or
perceived security risks. The following will assist this development.

Figure 53

All of the actions lay the foundations for SM strategy and morphing your
organization to a new Social Business culture and Enterprise 2.0
operations. Using a new project (such as a new product launch) could be
the vehicle you need to start traction. Experiment and learn. Make sure
that the 12-value ‘practices’ outlines by Schau (2009) are monitored
(through web listening) but not just in the external community (as shown
below). Crucially, apply and investigate these ‘value’ practices in the
context of the internal Enterprise culture and assess ‘internal community
activity’. Jive Software could supply the vehicle to do this. Re-
measurement and re-analysis over time will demonstrate the change

126  
value of Social Business behaviors and movement towards Enterprise
2.0.

Figure 54 – SM Value Creation. Source: Schau et al., 2009

 

Preparing for SM strategy is akin to preparing for new cultural SM

behaviors, supported by SM technology. This will ensure you have a
process for measuring value (both financial and non-financial) over time.
This provides tangible output of intangible operant knowledge based
marketing strategy, providing the gateway to the new Social Business
and Enterprise 2.0 operations required for commerce in the digital age.

127  
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Appendices

1) Canon UK& Ireland Business web site

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2) NixonMcInnes web site

3) Cisco UK business web site

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4) Social Media Technical Definitions and Terms (Furness, 2008)

Blog

A ‘weblog’ (better known as a ‘blog’) was originally used to describe an

online diary entry, with the option for readers to post their own comments
and links. In the corporate arena, an analogy might be an online memo,
which other employees or people outside the organization can contribute
to (provided they have the necessary permissions and access).

Enterprise 2.0

The application of Web 2.0 applications and technologies in the corporate

environment.

Mash-up

A new application or tool created from combining two or more existing

data sources. The first mash-ups combined Google Maps with other
sources of data, such as crime statistics or houses for sale.

Podcast

An audio file distributed online, often by RSS (see below) or another type
of data feed. It differs from a webcast in that podcasts – like blogs – tend
to be updated regularly and are available for automatic download via an
XML newsfeed.

RSS (Really Simple Syndication)

An XML feed that notifies subscribers every time a web page has been
updated (whether a new blog post, podcast, Twitter update or wiki
contribution, for example).

Social bookmarking

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‘Tagging’ blogs, photos, videos or articles using sites such as Digg,
Del.icio.us or StumbleUpon. Combined into a ‘tag cloud’, these tags
provide an insight into what is popular online by arranging tagged words
according to size (the larger the word, the more people are tagging
articles with that term).

Social network

A community of online users, often replicating a member’s offline social

network.

The Long Tail

A phrase coined by Chris Anderson, editor-in-chief of Wired magazine, in

2004. In statistics, mathematicians use the phrase ‘long-tailed distribution’
to describe a chart where the line runs to infinity but never reaches zero.
Anderson created the noun ‘the long tail’ to describe the economic model
behind successful online businesses such as Amazon and Netflix, where
value comes not just from selling the blockbusters or top 20 films (the
‘head’) but collectively from the millions of people buying small amounts
of what might previously have been considered niche or back catalogue
items (the ‘long tail’).

The ‘wisdom of crowds’

A phrase coined by James Surowiecki in his 2004 book, The Wisdom of

Crowds: Why the Many Are Smarter Than the Few and How Collective
Wisdom Shapes Business, Economies, Societies and Nations. In his
book, he argues that the collective intelligence of groups can result in
decisions that are often better than those made by any single member of
the group.

User generated content

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As its name suggests, content created by consumers and uploaded to the
Web – whether a video posted to DailyMotion, a photo uploaded to
Flickr or a user uploading a book review to Amazon.

Web 2.0

A term used to describe a group of web-based technologies, applications

and services that enable participation, the creation of online communities,
easy collaboration, and sharing of content or services.

Web 2.0 company

Any company whose products or services are based on an aspect of Web

2.0, from social networking to user-generated content and more.

Widget

A widget is a bit of code that can be embedded into another website,

without requiring users to have coding knowledge.

Wiki

A web page that users without HTML experience or author rights can
contribute to, edit or link content to. The most famous example is
Wikipedia.

Social Media Contextual Definitions

• Social Media = Contemporary web strategy

• Social Media newsroom = interactive information centre
• Social Networking = online forum
• Social Bookmarking = shared favourites
• Blogging = regularly updated web site
• Microblogging = active listening
• Twitter = next stage/phase of online engagement (real time)

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Below is (Faulds and Mangold 2009)

5) Example Interview transcriptions from Canon, Cisco and

NixonMcInnes

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6) Canon Marketing Strategy Objectives 2009 – The Magnificent Seven
(a)

144  
7) Canon Marketing Strategy Objectives 2009 – The Magnificent Seven
(b)

145  
8) Canon Marketing Strategy Objectives 2009 – The Magnificent Seven
(c)

9) Attendee list from Think Tank – July 2009

• Alex Bennett – Full Time MBA Student, Henley Business School

• Tom Nixon – Director, NixonMcInnes
• Steven Read – High Tech & Communications Consultancy
Partner, Accenture
• Adam Poole – Head of Consumer Marketing, Canon
• Sean Watson – New Media, Canon
• Tim Bush – Marketing Manager, University of London Computer
Centre
• Zoe Sands – Digital Marketing Manager – Europe, Cisco

10) John Chamber’s Cisco Blog Extract

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11) Cisco Online Netpro Community

12) NixonMcInessWorldblu Award - 6th June 2010

147  
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13) Features of the internal Microblogging application, Yammer

14) Jive Social Business Software Site

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15) SocialText Social Business Software Site

16) Confluence Social Business Software site

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