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Thank you so much for joining us today. Thanks for having me today as we we know brian dunn. The ceo of best buy resigned.
What does the show about role of social media and its ability to affect corporate life. Very simply networks including social networks. That include customers and employees are gathering strength relative to organizations and believe or not as they gather strength in the marketplace and they create real risk for enterprises and in many shapes like best buy they take them down and destroy their business model.
There have been other examples as well right and best buy was hardly alone. What are some of the other recent examples of this type well my favorite. One is encyclopedia britannica that had been around for 244 years.
It only took wikipedia about 11 years to destroy business that had been around for 200 and almost 50 years and so thats another good one. But theres so many now. Theres kodak.
Theres best buy theres borders. Susan g. Komen.
And the list goes on where the social networks. Now have much greater power than the businesses. That serve them theres also recently the example of banks.
Which had imposed some fees and and that was a virtual onslaught of social media outrage that forced them to roll back the decision. If you take all these things. Together.
What are some of the lessons that companies should be learning from these experiences. Well.
I think risk is the first one as should as his reward. Lets talk about risk in the days in which you and i grew up as a business leader. It was clear that execution was about and operations was about what we did.
But the first lesson. I think organizations have to realize is that the risks live outside the organization. Because thats where the power is in the network and in the social communications.
Thats rule number one and rule number two i would say is you have to embrace that risk we have to embrace those social networks. If you want to prosper in a socially networked world. So what are the implications for companies when risk resides outside rather than within.
The organization well. I think thats a great question currently organizations be boards and management teams are organized and oriented towards inside. Data.
Financial data sales data marketing. Day. Thats internally focused data.
And theyre trained operationally to be sales executive. A marketing executive. A finance executive.
I think people have to start thinking externally. They have to build brand new skill sets. And so i think the first thing.
I have to do is begin to back gather large amounts of data. Its called big data customer sentiment and employee engagement and get comfortable thinking about thats the data.
I need to make good decisions companies are not the only ones that are vulnerable as we saw during the arab spring. A number of governments also toppled because of social media. Do you have any sense of what actually drives some of these social media uprisings.
I think for a long time we all have been waiting for a voice. You know it wasnt more than a decade or so ago. That thomas friedman wrote the book the world is flat.
But he was thinking about it physically he wasnt thinking about once the world becomes flat you and i can connect digitally and so. Although he was saying that indian america connected from an outsourcing perspective. He wasnt thinking crowdsourcing and open sourcing and virtual sourcing.
So once the worlds digitally collected and connected all of a sudden countries and city states and religions become subject to i want to say peoples desires to be connected regardless of their country and city state and therefore countries like the arabs and other countries that rule like that will fall to basically these new ways of thinking. But if you push a little harder on that same team the connections always exist. But every once in a while theres something that sparks an uprising of this sort something goes viral.
What what sparks these these waves. And what sustains them well. I think theyve always used to remember the old french revolution and the basically people said.
You let them eat cake right well. Theres a big difference today and i always say i carry my weapon of mass destruction. I along with you and this is my wmd and as long as theres a billion of us carrying social networks and five billion people carrying one of these things.
Then what happens is as as long as you and i begin to agree that the leader is not serving us. Which is the important part serving your constituents not serving yourself then an uprising becomes viral in todays world and somebody sparks one of these things which is called twitter on facebook and linkedin to begin to realize i feel the same way you do and lets work together to change the leadership. So i mean you brought up a really good point or you referred to facebook and twitter.
And and and generally speaking people use social media in a generic way to refer to these platforms. In addition to do to those two are there any other social media.
Platforms. That you think that companies should be paying attention to absolutely so all of people talk about those two theres so many theres so many exciting ones everything from dropbox. Which is a way to store data to evernote to how do you share information to pinterest.
Which is how you build brand relationships. I want talking about america you and i had a conversation about one in china yesterday there are social networks. Everywhere.
So whats happening is although people see facebook and twitter as sort of the leaders these are very powerful movements that are using todays technologies to connect our interests. Why are companies and their ceos often so reluctant to recognize the growing impact of social media. I think two reasons.
One is we all have been trained to look inwards to build operational company disease. I would say in greatness which is in search of excellence re engineering. The corporation so there are skill sets lie inwardly focused the second reality is these outside networks are uncontrollable.
Theyre self organizing. They flare up and they calm down they organized and they disorganized and so theyre not controllable theyre individual in their nature. But connected collectively and so leaders have not been taught and do not understand how to embrace this new way of acting with a network as powerful of these and its not just the consumer networks.
Its showing the financial networks. It cause electronic trading fonts and etn s electronic trading networks. They do risk on and risk off in the moment assuming if company figures out how to embrace the network.
How can a company use them for positive outcomes. I think whether it be investors partners customers or employees. The networks want to be embraced they want to feel just like you know i do care for they want to know that youre there to serve them that governments are in the business of serving others not serving themselves.
So once companies countries and industries. Really go back to the basics.
How am i going to serve the people that im responsible for i think the networks will feel cared for and theyll embrace the people that serve them so its a change in mindset. Because my view is these networks want to be heard and as soon as theyre heard theyre going to basically act on behalf of the organizations in practical terms. How do you actually embrace the network.
You let them have a voice in your business. You let them to help you design your products called crowdsourcing you help them deal with your customer service problems you even help them design like doritos does their marketing programs. You make them a part of your business.
Not just a marketing outlet for your business. So we talked earlier about companies that havent done such a great job in recognizing the power of social media. What would be some contrary examples you referred to doritos but any company is doing a good job in leveraging social media.
Absolutely nikes done a spectacular job and theres some great research about it theyve reallocated. Which is important 800 million of their traditional advertising budget and they did something very simple they allocated it as they said to where their customers are they allocated it to mobile devices to social interactions to crowdsourcing and the mayview simple examples theyve literally embedded as you know mobile device in your sneaker. They now have a wristband that my son wears that allows you to keep track of how much running and how much weight you lose.
And you can socialize that with your friend and they let you keep track of how many miles on the courses. You run. Theyre really taking their product and making it part of your life.
Both on a social and physical basis. So they reallocate their capital and they doubled their revenues while theyre cut their cost in doing that but one final question barry. What advice would you give ceos and corporate boards about how what are some of the two or three things they need to be doing with relation to harnessing the positive power of networks in social media.
Well. I think its a basically a four step process is one and im going to call the process called care take care with what you do one is create relationships with these networks. Because theyre existing and theyre growing exponentially and theyre larger than countries and companies.
Now is begin to add which is the second letter of kitten care add their competencies their insights to your product and service offerings. Three hard to believe this i think you begin to need to reduce the internal focus you have in your organizations stop being focused so much about what you do and more on what they can do for you the way apples done with a developer network and finally you need to eliminate your fear of them because theyre here to stay. And theres nothing you can do about it.
Thank you so much for speaking with knowledge of coordinate thanks for having me today you .
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