CIO 100 Symposium

Nairobi
29-30 November 2011
Business in the networked era Business in the networked era
Louis C H Fourie
Department of Information Systems
University of the Western Cape
We huve
chunged!
'We shape our tools and afterwards
our tools shape us`
Marshall McLuhan (1911-1980)
Teemu Arina, 2008
4ntextus connected or weaved together
4m4 habilis 4m4 sapiens: rain si:e increases physically
4m4 sapiens 4m4 c4ntextus: rain si:e increases
virtually
onnected human escaping the physical limitations through
connectivity with modern network technologies and distributed
cognition
From Homo Sapiens to Homo
Contextus
lectricity, light, machinery: mechanical age
extended our bodies.
Electronic age will extend our nervous
system
4nnectivity I4cus: focusing on diversity of
connections to people who use tools to extend
their mind (cognitive capabilities)
pr4sthesis 4I thinking
Homo Contextus
world of connectedness
Social web Aoosphere sphere 4I human th4ught' ass4ciated with
c4nsci4usness, the mind, and pers4nal relati4nships (Teilhard de hardin)
Interlinked system 4I c4nsci4usness and inI4rmati4n
Gl4bal net 4I selI-awareness and instantane4us Ieedback
Shared pictures
Shared videos
Shared news/podcasts
Shared knowledge
Shared bookmarks
Shared projects
Shared 'you'
Shared library
Shared virtual life
%he Networked Era
1he lnLerneL Lra was abouL Lhe
WWW of lnformaLlon
%he Networked Era is about
the WWW of people.
,arked by a change ln
lndlvlduals' behavlour
lnLeracLlons and relaLlonshlps
wlLh one anoLher and wlLh
vendors
lmpllcaLlons for sales markeLlng
recrulLlng lnnovaLlon producL
developmenL eLc
Facebook has become
gIobaI and mainstream
$ource:
http://www.kenburbary.com/2011/03/facebook-
demographics-revisited-2011-statistics-2
http://www.digitalbuzzblog.com/facebook-statistics-
stats-facts-2011
Established Feb '04
On Facebook alone.
630M+ act|ve users who
spend 20 8n mlnuLes per day
used by 1 ouL of every 12
people
Average Faceb44k user spends
55 min per day 4n the site.
6.5 hrs/week 1 w4rk day
50 4I internet traIIic in the
UK is Ir4m Faceb44k. In the
US it is ab4ut 1/3.
f Facebook were a country, it f Facebook were a country, it
would be the 3 would be the 3
rd rd
largest in the largest in the
world (between ndia and the world (between ndia and the
US US
There are over 400 million
active users of MySpace
(2011)
Created 1uly 2003
reated March 2006
With 4ver 200 milli4n
registered users,
Twitter has bec4me a
gl4bal c4mmunicati4n
I4rce.
25 billi4n tweets in
2010
aunched May 2003
A new member every
sec4nd
100 milli4n users
F4unded February
2005
42 milli4n vide4
streams every h4ur
2 billi4n views per
day
500m users
T4p Y4uTube vide4: Justin Bieber - Baby It.
udacris - 649,623,894 views
T4p TV pr4gramme: 24.4 milli4n viewers
ore Facts!
1 in 8 CoupIes
married Iast year met
via sociaI networks
Fastest Growing
Segment of Facebook:
Women 55-65
4,643,385 FoIIowers
4,917,343 FoIIowers
4,425,675 PopuIation
What happens in
Vegas
Stays on.
Warley & Martin, 2010
ut the reaction of organisations
to the rise of social networking
has been at best bewilderment, at
worst downright hostility
refusal to engage in these
issues results in knowledge
management becoming
increasingly irrelevant to the
everyday lives of employees
and particularly irrelevant to the ways in
which (young people communicate and
share knowledge
Why social networking matters
in business
%he changing paradigm
%o know is not enough
(Homo Sapiens
%oday you have to be
connected (Homo
Contextus
From centralised to
decentralised knowledge
From commerce to social
commerce
Changing user
expectations
!eople trust friends the most
Spam filers block email
advertising
NO C lists prohibit
telephone solicitation
f they get through . . .
Caller allows us not to
answer a telephone solicitor
!'# allow us to skip
television advertising
96% of consumers trust
personal recommendations
14% of consumers trust
traditional advertising
%he customer is in control!
lara Shih, 2010
%hey have the whole
world-wide web
in their hands
%he hypersociaI
organisation
How to do business in a 2.0
worId.
Y4u d4 n4t need t4 understand
Web 2.0 techn4l4gies
It is m4re imp4rtant t4 understand
human beings n4t as individuals, but
as hypers4cial creatures
Franc4is G4ssieaux, 2010
HyperSociaI companies think
differentIy
Think tribe - not market segment
We need t4 Iind gr4ups 4I pe4ple wh4 have s4mething in
c4mm4n based 4n their behavi4ur, n4t their market
characteristics
Think knowledge network - not information channel
The m4st imp4rtant c4nversati4ns in c4mmunities are
between pe4ple n4t between c4mpany and c4mmunity.
Think humancentricity - not companycentricity
The human has t4 be in the centre 4I everything y4u d4
Think emergent messiness - not hierarchical fixed processes
!e4ple will want t4 see resp4nses t4 their suggesti4ns, even iI
it d4es n4t Iit y4ur c4mmunity g4als FAST
Franc4is G4ssieaux, 2010
HyperSociaI companies think
differentIy
'.aIIinity gr4ups will quickly bec4me the
d4minant s4cial I4rce in the emerging w4rld
ec4n4my, changing h4w we think ab4ut
markets, Iads, s4cial m4vements, and,
ultimately, p4wer
%om Hayes, Jump Point. How Network ulture is
Revolutioni:ing usiness 2008
Leveraging SociaI Business
Processes
Successful HyperSocial organisations
turn their business processes into "social
processes Why?
Scale
ncreased quality
ncreased passion
ncreased WO
Franc4is G4ssieaux, 2010
%urning a business process
into a sociaI process
I% IS NO%:
#unning traditional programs using social media platforms
!# by blogging press releases, lead gen by spamming
community members, recruiting through spray and pray
over %witter, etc.
BU% I% IS:
#unning programs based on human reciprocity and social
contracts to get others, whose job it isn't to do so, to help
you do your job - customer support with the help of all
employees and customers, product innovation with
customers and detractors, etc.
%apping into passion
Franc4is G4ssieaux, 2010
Conclusion
Social media is a massive ecosystem of
innovations that allows people to tap the
deeply human desires to connect,
communicate, create and exchange
%o succeed in social media, however,
you've got to join the conversation
Within five years, if you run your
business in the same way as you do
now, you're going to be out of
business."
PhiIip KotIer
re you thirsty enough for business
to start using social networks?
"uestions? "uestions? "uestions? "uestions?
When's the
uwurd dinner?
fourie@uwc.ac.za fourie@uwc.ac.za fourie@uwc.ac.za fourie@uwc.ac.za