Introducing The Open Business Program

Introducing Open Business
90:10 Group: Your Open Business Partner

Open Business Program
Our framework 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

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

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

The Open Data Movement
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

Open Capital
The democratisation of 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

Open Innovation Scaled
Co-creation is 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.

Networked Human Capital
An increasingly virtual workforce crowd-sources solutions

01/08/2012

The Open Economy
The new 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

Untangling the buzzwords
Open Business is the structured application of the strands of Open Economics

Crowd-sourcing Open Data Crowd-funding Co-Creation

Netnography

Open Business

01/08/2012

Market Forces are now; 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

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

Closed businesses can’t compete
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

Challenges of the Open 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

Minimum demanded in an Open Economy
New entrants are emerging with these attributes as their default

1. Transparency
2. Openness
3. Connectedness
4. Purpose

01/08/2012 15

Open Business Definition:
Making partners 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.

10 Principles
Of Open Business

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

Applying the Principles in 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

1. Purpose
The market for 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

2. Open Capital
Lowering the 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

3. Networked Organisation
Distributing the 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.

4. Sharability
Sharing the value 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

5. Connectedness
Leveraging the power 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

6. Open Innovation
Making better 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

7. Open Data
Ensuring your 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

8. Transparency
Building trust and 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

9. Member Led
Being a 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)

10. Trust
Trust is essential 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

How do you measure 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

Score out of 5

• 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

Score out of 5

4. Sharability: • Worst Case (Scores 1/5) Social media is actively
• Goal State (Score 5/5) Knowledge/thought discouraged during working hours. Internal comms
leadership in all formats is created in such a way are one-way broadcasts from the centre and kept
that it can be easily and readily published strictly internal.
openly, and shared. Share functions are built into
each document/asset. Creative commons is the • 6. Open Innovation:
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.

01/08/2012 31

Score out of 5

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 • Goal State (Scores 5/5). Stakeholders, partner-
employees, stakeholders and anyone wishing to customers (members), employees have 100% trust
hold the org to account. Board meetings (within in your organisation’s mission and motives as
legal 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

What next? You are 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

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)

Open Biz
Open Business Masterclass 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

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

Open Biz
Open Business Mentoring 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

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

Customer
Open Day: Events without 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

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

Open Biz
Open Business Council 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:

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

Not Gurus but practitioners
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

Helping you
90:10 Group’s co-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.

Helping you
90:10 Group’s co-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

2010-2012, Pioneering Open Business
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

Introducing The Open Business Program

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