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Introducing the Open Business Program
The document introduces the Open Business program, which aims to help organizations adapt to a rapidly changing economy characterized by increased connectedness and openness. It highlights the importance of moving beyond piecemeal approaches to embrace holistic strategic solutions for organizational transformation, emphasizing ten principles of open business, such as purpose, transparency, and trust. Additionally, it discusses the challenges and opportunities presented by the open economy, where collaboration and data-sharing are essential for success.
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Introducing the Open Business Program
- 1. Introducing Open Business 90:10Group: Your Open Business Partner
- 2. Open Business Program Ourframework for change • We adapt organisations to the needs of a rapidly changing world; one which demands ever greater connectedness, openness and meaningful relationships with customers. • Too often the seismic shift we are experiencing is being dealt with on an issue-by-issue basis. Reactive piece-meal tactics create a permanent state of panic-ridden catch-up. Learnings are lost in silos, failures are swept under carpets. • We believe there is an holistic strategic solution which provides a framework for change, leap-frogging the tick-box exercise of simple implementation of social technologies. It makes organisations future-ready like never before. • That solution is our Open Business Program. 01/08/2012 2
- 3. Contents 1. Introducing the Open Economy (Slides 4-15) 2. Defining Open Business and its Principles: (Slides 16-28) 3. How does your organisation measure up? (Slides 29-32) 4. Starting your journey : (Slides 33-42) 5. Why partner with us: (Slides 43-47) 01/08/2012 3
- 4. Introduction The Open Economy& Open Business • Social media has shown people are willing to engage with brands; share, discuss, create and offer ideas • It has given birth to new platforms dedicated to opening innovation to the crowd • Most believe this can deliver value across the whole organisation from marketing to product and service innovation • But few know how to move beyond experimentation to scale into business transformation • As big firms struggle to overcome their legacy issues market forces become more open, connected, and social • This means big disruptions and challenges to them and their agencies • We call this environment The Open Economy and our framework for response to it is Open Business. 01/08/2012
- 5. The Open DataMovement We now expect data to be shared and open Companies such as Facebook are valued on the data of its users – who trade it in return for utility API: The idea of organisations making their data easily accessible to outsource and derisk innovation or offer for public good Hacktivism at its roots is about exposing hidden truths; be that how poorly companies protect your data or the secret dealings of super powers and shady corporations. 01/08/2012
- 6. Open Capital The democratisationof capital means increased competition • There are more than 450 crowd-funding platforms around the world • With 5 white-label crowd-funding platforms introduced this year • To date $1.5 billion dollars has funded more than 1 million projects • 55% in Europe, 44% in the US and 1% in other regions • The average crowd-funding project takes 10 weeks from beginning-to-end 01/08/2012
- 7. Open Innovation Scaled Co-creationis being applied across all business innovation gates Open Innovation has existed since the 1960s, a term promoted by Henry Chesbrough, but with the recent advent of affordable and widely used collaborative technologies, it can be applied at scale. There are now hundreds of co-creation and idea crowd-sourcing platforms and case-studies across almost every sector from FMCG to Automotive. With brands like Proctor & Gamble driving 60% of all innovation from partnerships outside their organisation.
- 8. Networked Human Capital Anincreasingly virtual workforce crowd-sources solutions 01/08/2012
- 9. The Open Economy Thenew market reality The Open Economy Open Open Data Open Innovation Open Capital Organisation Movement Scaled (Crowdfunding) (Crowdsourcing) Powered by: Social Media + Internet Culture of Openness x People 01/08/2012
- 10. Untangling the buzzwords OpenBusiness is the structured application of the strands of Open Economics Crowd-sourcing Open Data Crowd-funding Co-Creation Netnography Open Business 01/08/2012
- 11. Market Forces arenow; Connected, Open & Lean Becoming an Open Business is not optional just a matter of time Tomorrow’s Customers Activists Competition Barrier to entry Almost every Organisations like for competition purchase cycle Greanpeace see has never been now involves a themselves as a lower. Crowd- Google Search or platform for their funding and Community advocates to lead white-label API Reach-out in both change. Activist tech dominate. B2B and B2C attacks have increased YOY. 01/08/2012
- 12. Open Business For communication,product & service innovation • We think of social media as a door to the outside world. • A door to; listen, ask, connect and create with people outside both partners, customers and experts. • All for the purpose of competitive advantage in marketing, service and product innovation. • Over the last 3 years we have developed a frame-work to deliver open business at an Enterprise level for blue-chip companies
- 13. Closed businesses can’tcompete Open equals a better fit with the networked world • Many of the success stories of the 21st Century are built on multiple Open Business Principles. Google, Apple and Amazon are among the more famous. • According to IBM’s CEO survey in May 2012, companies that outperform their sector are 30% more likely to identify ‘Openness’ as a key factor in their success with particular benefits for collaboration and innovation. • Businesses starting today build on the Principles of Open Business from the word go. They do so because the principles are self- evident to those growing up in a networked world. • They know they are simply the most effective way of taking greatest advantage of the world as it exists today. • This places them at significant competitive advantage over those who are not seeking to apply the principles for legacy or other reasons. 01/08/2012
- 14. Challenges of theOpen Economy Issues for today’s corporations to address to survive Corporate Declining & Exponential Data Glocal Needs Citizenship Migrating Trust Sets The combination of It is no longer acceptable to Trust in large media More and more data is Globalisation in an internet just make a donation to companies and brands is in available for companies to age requires multinationals charity or speak of good decline. It is migrating to mine - and make sense of. to be consistent globally but intentions through your CSR peers but in a complex and From big data, to real-time reflect local cultural department. Our ever shifting way. The days and behavioural data from nuances in a real-time way. connectedness means you of control advertising or mobile, social and other This challenges traditional can’t just say, you have to clever PR are over. new sources. The desire to organisational structures do. If you want to be part of simplify the complexity is and requires a breaking the online community you increasingly difficult to down of silos and market are expected to actively resist. But this reductionism divisions. participate in the world risks destroying the true around you as a good citizen value. Community People / System Influence Insight Culture 01/08/2012 14
- 15. Minimum demanded inan Open Economy New entrants are emerging with these attributes as their default 1. Transparency 2. Openness 3. Connectedness 4. Purpose 01/08/2012 15
- 16. Open Business Definition: Makingpartners of customers • An Open Business is one which uses its available resources to; -Discover people who share its Purpose -Brings them together to realise that Purpose. • It is designed from the outset to scale through participation. • It makes partners of customers.
- 17. 10 Principles Of OpenBusiness 1. Purpose 2. Open Capital 3. Networked Organisation 4. Sharability 5. Connectedness 6. Open Innovation 7. Open Data 8. Transparency 9. Member-Led 10. Trust 01/08/2012 17
- 18. Applying the Principlesin general offers... • Better market and customer knowledge • Better fit with customer need, • Accelerated more successful innovation, • Evidence-based decision making • New access to capital, • More effective knowledge management • Improved internal and external collaboration and idea generation • Lower (distributed) risk through networks of partners, • A greater sense of doing business that benefits the society in which you operate • A greater sense of customer and employee ‘ownership’ through the democratisation of business • Raised levels of trust – and customer and employee loyalty and satisfaction which derives from this • More attraction and retention for the right talent and customers. Applying them in particular delivers >>> 01/08/2012 18
- 19. 1. Purpose The marketfor something to believe in is infinite – Hugh MacLeod Purpose is the why, it is the belief which all your stakeholders share and to which all your organisations actions are aligned without compromise. Your products / services are proof of that shared purpose. • Organisations driven by purpose outperform the general market 15:1 and comparison companies 6:1. • They deliver greater retention of staff and customers • They achieve greater advocacy and therefore rely less on interruptive marketing • They become as important to people’s lives as a cause-based organisation. Relationships go beyond the transactional • More resilient in an economic down-turn • They have greater ability to enter new markets as they are not defined by their products but by their beliefs
- 20. 2. Open Capital Loweringthe risk of testing new markets Using crowd-funding platforms or principles to raise capital through micro- investments • Lowers cost of innovation and marketing • De-risks innovation; delivers proof of concept and pre-qualifies markets • Generates pre-sales and order book • Primes advocate platform pre-launch • Opens the innovation process early • Democratises innovation • Enables the scaling of niche innovation
- 21. 3. Networked Organisation Distributingthe risk of doing business The organisation functions as a platform connecting internal networks to the external for a common purpose • Links people and teams across conventional boundaries (e.g. departments and geographies) • Enables pragmatic scaling with a more flexible workforce • Allows greater capacity efficiently • Closer to market and customer • Maximises the knowledge potential and flow of an enterprise; • Minimises threat of disruption; a network has greater resilience, responsiveness and adaptiveness.
- 22. 4. Sharability Sharing thevalue of what you know Packaging knowledge for easy and open sharing both internally and externally • Taps into peer-to-peer distribution networks reducing cost to market and of targeting • Raises thought-leadership profile • Breaks down internal silos and external / internal barriers • Encourages the repurposing of information • Delivers lateral thinking and new perspectives • Value exchange reinforces connections and relationships • Allows cost and time efficiencies, reduces duplication • Ensures an organisation learns collectively and more quickly • Improves the spread of internal best practice
- 23. 5. Connectedness Leveraging thepower of your people Connecting all employees internally to one another and externally through open social media • Demonstrates openness and accountability improving customer satisfaction • Increases the opportunity for serendipity and innovation • Humanises your company making business personal • Allows employees to; grow, build and manage relationships with customers and partners more easily - improving retention • Connects organisations to their employees’ networks scaling their collective reach • Enables for two-way flow of information and intelligence improving market knowledge
- 24. 6. Open Innovation Makingbetter fits, more efficiently, to market needs Innovating with partners by sharing risk and reward in the development of products, services and marketing • Distributes the risk of innovating • Reduces the risk that the innovation’s won’t fit the needs of its intended market • Develops customer ownership of the innovation pre-launch • Allows for external ideas to be surfaced early on in the process • Scales idea generation and development with greater efficiencies
- 25. 7. Open Data Ensuringyour data is available for reapplication by outside the organisation Making your data freely available to those outside your organisation who can make best use of it • Externalises and scales R&D while reducing cost to innovate and market • Allows for crowd-sourced innovation and the repurposing of your data to deliver value in unimagined ways • Gives birth to new economies and innovations • Distributes the management of the exponential growth in data-sets • Distributes the risk and reward of data innovations
- 26. 8. Transparency Building trustand affinity Decisions, and the criteria on which they are based, are shared openly • Ensures the organisation makes decisions consistent with its purpose and in line with its declared beliefs • Incrementally improves the performance of the business through crowd checks and balances • Attracts the right employees, partners and customers • Softens unpopular decisions by being honest and open about the rationale • The act of open decision making builds affinity and trust • Corrects imbalances creating a fairer workplace
- 27. 9. Member Led Beinga better fit with the networked world Your organisation is structured around the formal cooperation of employees, customers and partners for their mutual social, economic, and cultural benefit • A more cooperative model is a better fit with the networked world based upon community values • Creates a shared sense of ownership and responsibility – of belonging • Views customers as equal stakeholders • As loyalty to brands and large organisations decline, member-led companies offer a reason to continue relationships • Provides a feeling of being able to influence to feel valued • Removes the tension between employee and employer (unions and shareholders)
- 28. 10. Trust Trust isessential for Open Business Mutually assured reliance on the character, ability, strength, or truth of the partnership • Partnership, the paradigm of open business, requires it • More resilient relationships with stakeholders • Trust in corporations and advertising is decreasing year-on-year (Endleman Trust Survey) so to excel in it offers a distinct advantage • Increases brand equity. A significant element of shareholder value • Inspires the default selection of your offering in competitive environments • Builds an emotional connection with a customer, partner and employee lowering the cost of acquisition and retention
- 29. How do youmeasure up? Benchmark your organisation • We believe the 10 principles of Open Business are a benchmark against which the performance of any organisation could and should be judged. • For each we offer ‘Goal State’ as the ideal outcome (a perfect outcome) of our strategy consulting work with clients. • In the following slides we also describe the ‘Worst Case’ position – to enable you to quickly benchmark your organisation’s progress towards each of the Goal States so far, and against which we can measure your progress in the future. 01/08/2012 29
- 30. Score out of5 • 1. Purpose: ‘big capital’ – VCs, institutional shareholders – • Goal State (Scores 5/5): You have a clear ‘Why’ of concentrating power over the organisation and its the organisation – why it exists (what is it about aims in those institutions. the world you are trying to put right/fix etc). Everyone who knows of you knows of your 3. Networked organisation purpose. • Goal state (Scores 5/5): No more than 1 in 10 in 100% of your actions are aligned with and express your organisation’s ecosystem are employees – the that purpose. rest partner with you from outside the • Worst Case: (Scores 1/5) The number one reason organisation. Your staff act as an enabling platform your business exists is to make money. Mission for participation from outside the org. statements simply enshrine the requirement to • Worst Case (Score 1/5) You employ staff to fulfil deliver shareholder value. every function of the enterprise. • 2. Open capital: Goal State (Scores 5/5): The organisation is 100% crowd-funded • Worst Case (Scores 1/5): All funding comes from 01/08/2012 30
- 31. Score out of5 4. Sharability: discouraged during working hours. Internal comms • Goal State (Score 5/5) Knowledge/thought are one-way broadcasts from the centre and kept leadership in all formats is created in such a way strictly internal. that it can be easily and readily published openly, and shared. Share functions are built into each • 6. Open Innovation: document/asset. Creative commons is the default. • Goal State (Scores 5/5) 100% of developments in • Worst Case (Scores 1/5) Knowledge created in the service, product or comms design are made in organisation stays within the organisation. collaboration with people outside the org in an Anything published outside is done so with organisationally-appropriate co-creation process. extensive copyright protections in place. • Worst Case (Score 1/5) All developments are made in secret and internally. 5. Connectedness: • Goal State (Scores 5/5) All employees are using open social media daily for external connection and applying it to make best use of the synchronous/asynchrynous opportunities of the global web. Internal/external comms are rarely distinguished. • Worst Case (Scores 1/5) Social media is actively 01/08/2012 31
- 32. Score out of5 7. Open data: 9. Member led: • Goal State (Scores 5/5) Any data generated or • Goal State (Scores 5/5) 100% of all key decisions collected by the organisation is made publicly (within legal constraints) are made by and with available where there is a possibility that sharing those charged with implementing them in this data can create additional public good. Eg collaboration with partner-customers (members) apis. All data is searchable internally and and/or wider supporters of the organisation. externally. • Worst Case (Score 1/5) All key decisions are made • Worst Case (Score 1/5) Data is jealously guarded at board level and imposed downwards on those and kept secret. Competitive advantage is believed charged with implementing them. Stakeholders to reside in ownership rather than collaboration. and customers are considered only in the context of what can be gained from them. 8. Transparency: • Goal State: (Scores 5/5) Decision making is done • 10. Trust: openly, with the process exposed to all employees, • Goal State (Scores 5/5). Stakeholders, partner- stakeholders and anyone wishing to hold the org customers (members), employees have 100% trust to account. Board meetings (within legal in your organisation’s mission and motives as constraints) are open to all and offered as a measured in 360-degree surveys. 90% of new webcast/webinar. business is generated by peer recommendation. • Worst Case (Scores 1/5) Decisions are made • Worst Case (Scores 1/5). Trust levels are measured behind closed doors without explanation. Records at sub 10%. 90% of new business is generated are shared only as required by law. through marketing spend 32
- 33. What next? Youare invited We are looking for pioneers to partner with on a journey of strategic change • We have been working directly with blue-chip brands for the last 3 years. • Now we are looking for pioneering teams to partner with us to realise Open Business through the unique frame-work of projects and work-streams we have developed. 01/08/2012 33
- 34. Open Business Packages Pragmatic approach to change Initial Learning/Program preparation Change Program Exploratory Open Business Mentoring Customer Masterclass (Total 11 days per person, over Open Day (With up to 10 seats) 3mth program) Program Committed We help you prepare your teams, identify sectors/divisions most at risk of disruption, and engages them in a clearly defined yet flexible Open Business program. Open Business Council Program (Annual fee per Client)
- 35. Open Biz Open BusinessMasterclass Masterclass What’s changed and understanding the impact on your business What An exploratory internal masterclass led by one of the Co-founders of 90:10 Group – an Open Business consultancy with 3+ years of focused experience. Up to 10 client staff can join us to explore the practical application of Open Business including: -Open Business principles and practices -Key trends explained: co-creation, netnography, crowd-sourcing -Market segmentation and consultancy process -The Open Business customer road map -Products and services to move your client along the journey from entry level to excellence -People/Skills required to deliver Open Business -Case studies to bring the day to life 1 day on-site senior consultancy in advance, to tailor requirements based on level of knowledge of participants and intended goal state. Collateral developed based on this tailoring – bespoke slide decks, take-away materials for circulation. Why? • Engage your staff with the new business reality and its impact on clients • Learn how to contextualise and internally pitch Open Business trends • Untangle buzzwords and understand their application at an Enterprise / systemic level • Empower digital leads / change agents • Hear real world cases of from actual practitioners • Begin your Open Business journey
- 36. Open Biz Open Business Masterclass Timeline Masterclass What’s changed and understanding the impact on your business Inputs: Outputs: Open Business Principles to apply today OB Skill s Roadmap built from & Gap initial gap analysis Analysis Gaps in Skills & OB Change Roadmap Competencies Documentation Creation Market identified Understanding Day documented Needs OB Trends & Consultation and draw up in Principles highly sharable social format Preparation Workshop Session Post-Support ( 1 Day) (1 Day) Available 01/08/2012 36
- 37. Open Biz Open BusinessMentoring Mentoring Managing and supporting change leadership What Change needs leaders to drive the agenda and inspire others. But leading change is a lonely job and especially challenging in a new and evolving space. We aim to provide your Open Business change agents with the one-to-one support of communicating, learning, championing and delivering the new reality including understanding the practical and cultural barriers to adoption. This is with a 90:10 Group founder and is billed at a retained daily rate. Why? • Engage your staff with the new business reality • Learn how to contextualise and communicate trends • Untangle buzzwords and understand their application at an Enterprise / systemic level • Empower digital leads / change agents • Hear real world cases of from actual practioners
- 38. Open Biz £8kpm Open Business Mentoring Mentoring What’s changed and understanding the impact to clients Inputs: Outputs: Dept position on Open Business Opportunity / Project Integration into Threat Planning company culture Identification Partner , New Hire Selection & Develop processes Skills Gap and delivery Engagement Research Primers Analysis capability Market Needs Gap Understanding Begin a change Analysis program Orientation 1-1 Mentoring Post-Support ( 1 Day) (3 Month) Available 01/08/2012 38
- 39. Customer Open Day: Eventswithout walls Open Day A social media powered open day What • Invite up to 5 of your employees to ask the crowd their most pressing questions and have them answered in a rich and fun way. • Each external party comes connected to a network of a minimum of 1,000 people giving a combined network reach of 10,000 people • At select points we let them use their preferred social media channel to open up the day to their followers and fans • We can use this as an opportunity to scale debate and opinion, quantify and sense-check conclusions Why? • Learn why being open is inspiring • Deepen brand affinity • Build & strengthen relationships with key people • Develop loyalty and understanding • Ask questions and give answers • Discover new habits, trends and needs. 01/08/2012
- 40. Customer Open Days Timeline Open Day A social media powered open day Inputs: Outputs: 3. Influencer Check: Surfaces & colours -Google Chat with key issues 2. Network influencers to gauge their Reach-Out: feed-back & opinions -Refine and co-create Co-created possible -Open doors for conclusions to their Recruitment of solutions ideation, sense-check opinion invitees 1. Group Storming; and colouring -Prioritisation crowd- Instant Crowd Invitee -Why I care? sourced feedback & shared Discovery -Client filters (openly) -The problem with X is.. -How can X be better? Needs Socially sharable Consultation concepts (internal & external) - ezine Preparation Session (4 Day) (1 Day) 01/08/2012 40
- 41. Open Biz Open BusinessCouncil Program Working in partnership to realise transformation & change What • We partner with you to install a virtual Open Business Council charged with putting in place; the people, process, connections and ecosystem to become an Open Business benchmarking against the 10 Principles. • We audit you across 8 work-streams at each step 90:10 provide mentoring, support and leadership Why? • Lead business transformation • Future proof against digital disruptions • Allow your dept to become more innovative, efficient and open • Extend your reach into communities of external stakeholders building trust and loyalty • Broaden connectivity across depts • Build a system to workflow external data real-time for business planning • Build crowd-sourcing, co-creation, open data, open innovation and netnography into the daily DNA of your business Workstreams:
- 42. Open Biz Open Business Council Program Program 8 Principles Mapped Outputs: Greater levels of trust Relationships , satisfaction & retention Realise Open Business Inputs: transformation Open Business Technology Better market and Immersion Session customer knowledge Open Day (Cultural Better fit with On-boarding) customer need Transparency 1. Organisation Information Open Business Accelerated and Audit (Internal & 2. Strategy successful innovation External) 3. Culture Evidence based Gap Analysis + decision making Work-stream Prioritisation More effective knowledge Council Elected & management Stream Ownership Process Delegated A greater sense of doing business of benefit to society 01/08/2012 42
- 43. Not Gurus butpractitioners While the rest of the world has been creating Facebook pages.. £3.5 million in consulting fees over 3 years Over 20 projects for 15 blue-chip brands (References available on request) 01/08/2012
- 44. Helping you 90:10 Group’sco-founder: David Cushman David Cushman Co-Founder of Open Business Consultancy 90:10 Group. Former Director of Social Media at Brando Social Former Digital Development Director at Bauer Media. Founding member of the Open Business Council. 25 years in business, 13 years in digital business, 5 Years in Social Media, 3 years in Open Business. Global thought-leader: Keynote at CeBit, Hannover, 2012, permanent member of the Financial Times Judgment Call panel, author The Power of the Network. Practical experience in delivering Open Business with Tesco, Bupa, First Capital Connect, Honda Europe, Rolex, The Co-operative etc.
- 45. Helping you 90:10 Group’sco-founder: Jamie Burke Jamie Burke Co-Founder of Open Business Consultancy 90:10 Group. Led product and market development across EMEA recruiting and developing teams to deliver revenues of £3.5m in less than three years. Founding member of the Open Business Council. 12 years in business, 10 years in digital business, 5 Years in Social Media, 3 years in Open Business. Global thought-leader: Respected blogger and regular speaker at events across Europe. Practical experience in delivering Open Business with Hermes, Citrix, Durex, Carlson Wagonlit Travel, Mastercard, Microsoft Advertising, Honda Europe, Tesco etc
- 46. 2010-2012, Pioneering OpenBusiness SCALES PAN- EURO 2010 LAUNCH 2012 THROUGH PARTNERSHIP Contracted to help Contracted to help We have been Honda Europe open CWT design and roll engaged by a comms and workflow out Social Enterprise number of Coops to consumer engagement model globally across realise a truly and social media data key depts. member-led flow. networked organisation. Q2 Q3 Q2 Contracted to co-create Contracted to help We have been engaged a consumer vertical Hermes operationalise by Mastercard Europe to community to inform; customer service and realise their becoming store-buying, drive new PR in social media an Open / Social sales and retention business by 2016 Q3 Q2 Q3 Netnography project for Contracted to help Bupa brand realignment and agencies Co-Launch; based upon community develop and market a new needs and perceptions service offering based on community profiling EXPANDS 2011 TO MENA
- 47. For next steps: David Cushman Co-Founder & Managing Director 90:10 Group London E. David@9010group.com | M. +44 (0)7736 353590 | W. 9010Group.com | August 2012 Skype: david.cushman | My Blog | My Tweets | LinkedIn | My book: The Power of The Network 01/08/2012 47