2 Informative Reads: Social Media ROI - Competition & Innovation

Each morning I set aside 45 minutes to an hour of uninterrupted time to dive into a set of general news and business publications, technology trade e-newsletters and Web sites, and 30 or so technology, public relations and social media blogs.

Context is everything in communications.  The ability to comprehend and articulate the "why" behind a timely news development or industry trend separates the merely tactical practitioner from the strategic thinker.

Here are two articles from today's reading that I found to be interesting and informative:

Does Social Media Have a Return on Investment in Fast Company.  Be sure to check out the reader comments to this article as I share there critical view.

Microsoft Takes Action to Ward Off Competition in the New York Times.  A good reminder that consumers win when there is credible competition.  It stimulates innovation, superior product development and pricing.

It's All in the Positioning

At times, what comes across as a subtle nuance in corporate positioning makes all of the difference.

That was my take-away from a sit down earlier this month at the Microsoft Worldwide Partner Conference in Washington, DC with Paul Billingham, European Sales Director at Concept Searching.

I’ve done a fair amount of work in the enterprise search market on behalf of clients like Convera and Intelligenx (formerly i411).  So, I was intrigued about Concept Searching and how its software platform might be different.

Billingham was quick to correct me.

“We are an intelligence engine that makes the Sharepoint search experience more relevant and meaningful,” he said.  “Our product is called conceptClassifer and its unique differentiator is what we refer to as fuzzy phrase match.”

Billingham explained that a search in Sharepoint for documents about artificial sweetener using Microsoft’s FAST engine might not uncover content about glucose.  That’s where conceptClassifer steps in.  It identifies relevant concepts in a document set to enhance the search experience.

Is this search technology or an intelligence engine?  The latter positioning earns Concept Searching a high value place at Microsoft’s partner conference.   

Regardless, Concept Searching is another example of an innovative company improving the user experience in the Microsoft ecosystem.

AvePoint Leads with SharePoint

When AvePoint’s Tony Lanni arrives at the office after time on the road visiting customers and partners he is often greeted by a myriad of unfamiliar faces.

That’s because this global technology and software development shop has experienced dramatic growth in sales and headcount in spite of the lingering effects of the economic slowdown.

What is AvePoint’s secret to prosperity in uncertain times?  They’ve hitched their fortunes to SharePoint, Microsoft’s collaboration and Web publishing platform with sales well north of a billion dollars.

“AvePoint has the largest SharePoint development team in the world,” Lanni told me last week during a sit down the Microsoft’s Worldwide Partner Conference.  “We’re purely a products company with applications in data storage optimization, back-up, archiving and compliance.”

The fourth employee at a company with a current staff size of more than 700, Lanni explained a core part of his mission as AvePoint’s top corporate strategy executive is to closely align their product development and marketing strategy with Microsoft.  And that means Lanni’s been thinking a lot about the cloud.

“They (Microsoft) are engaging more aggressively in dialogue with partners about their cloud strategy,” he said.  “It’s not just Microsoft telling us.  They’re looking for insight and direction from the partner community, and that’s very encouraging.”

Lanni had to run to his next meeting as his agenda was saturated with more than 100 sit downs during the week long conference.

“The value of this conference is the face-to-face meetings and interactions with Microsoft,” Lanni said in parting.

Note:  this post was originally published in the "Microsoft Partner News" blog.

Enabling Technologies Shows Off Its Solutions Approach

There is a well worn phrase in technology circles that you're never wrong...just early.
 
That's because enterprise adoption of new and emerging applications takes time and there is only so much influence a vendor can have on the natural cycle of customer decision-making.   The challenge for purveyors of innovative solutions is to remain viable long enough to benefit once customer buying accelerates.

Enabling Technologies Corporation's Ellie Volerthum lives this challenge.  As the marketing lead for a 35 person professional services firm, Ellie has patiently informed and educated mid-market companies and government agencies about the benefits of unified communications.

Rather than focusing on "gee whiz" features and functionality, Enabling Technologies' to-market strategy is to align unified communications with a customer's specific business problem or requirement.  It's classic solution selling.

"Our job in the sales process is total education," Ellie explained during a sit down with me at the Microsoft Worldwide Partner Conference.  "We seek to cultivate relationships at the business level because senior executives can push adoption of unified communications across their organization."

What has been the result of Enabling Technologies' solutions approach to marketing and sales?

Microsoft has recognized the company as its Unified Communications partner of the year two years running.

Social Media Remains an Innovator’s Game

Dive into the trades on the topic of social media adoption and the read is confusingly mixed.

Surveys say it’s a priority for corporate marketers with spending expected to jump this year and beyond. Other research points to interest, yet a lack of investment in social media marketing programs because of unproven ROI.

I live in the trenches of social media adoption as I’m charged with selling comprehensive programs to senior corporate executives. Unlike the mixed message from industry surveys and pundit banter, my experience has been remarkably consistent.

One set of prospects are intrigued, yet have failed to engage in social networks in any organized and meaningful fashion because it is not consistent with their corporate culture. These “slow adopters” are comfortable resting on the sidelines until there is a more extensive portfolio of best practices and lessons learned.

A second group of organizations have followed a bag of tactics methodology to integrate social media into their communications program. There may be a Facebook fan page. A Twitter account may have been set up. Someone in the organization has a blog.

While this is certainly an initial step, these companies typically lack a defined strategy, an alignment with corporate goals and any type of measurable benchmarks for success.

Plus, it’s often a junior member of the corporate marketing team tagged with social media responsibilities. Their intentions are admirable, however they fall short on strategic credentials and decision-making authority.

There is little doubt that we are still very much in the early adopter phase of corporate use of social media marketing in a professional and disciplined manner. This immaturity is understandable because there are significant risks when an executive champions something new and unproven.

If a social media marketing program misses the mark or (equally distressing) is perceived internally to be a waste of resources, the executive sponsor tends to be in a world of corporate hurt. They may even find themselves ushered out of job and into the worst unemployment environment in three decades.

For most, the horror of social media failure is too great to confront.

At Strategic Communications Group (Strategic), we have been fortunate to stumble across a group of corporate marketers who savior the opportunity to prove new ways of promotion. We’ve found this elite class at Microsoft, British Telecom (BT), BearingPoint, Monster, TANDBERG, Inmarsat and Avnet.


They cast aside the safe play for what they believe is the right thing to do to help their employer more successfully compete in the market.

Social media marketing remains an innovator’s game. The business case for adoption is compelling though because of the measurable tie to lead generation and other sales benchmarks. It will be a slow adoption curve, however I do anticipate more marketers will think it through, raise their handle and embrace what’s possible.

The Jump from Online Connection to Meaningful Relationship

During one pre-teen summer my parents insisted I maintain a group of pen pals. While it was a good exercise to develop writing skills, my interest in these far-off connections fizzled quickly. There just wasn’t any personal bond.

Even when there is emotion involved, relationships defined by a geographic separation typically meet the same fate. Consider all of those long-distance romances that eventually run tepid.

Does this need for in-person interaction also apply to contacts established in social networks?

You betcha! In fact, it is an absolute must if your goal is to derive professional value from the relationships initiated in online communities. There is only so much trust and transparency that can be forged through tweets, Facebook updates or LinkedIn messages.

This past April I wrote a blog post entitled “Three Phases of Social Media Maturation” based on Strategic Communications Group’s (Strategic) experiences implementing social media marketing programs for clients like Microsoft, BearingPoint, Monster, British Telecom (BT), TANDBERG, GovDelivery, among others. It’s during phase three – what I referred to as “The Last Mile” – which more intimate interaction with social media needs to occur.

Here are a few tactics we are employing to make that happen:

1. Corporate sponsored meet-ups: they are an effective way to bring together a myriad of contacts who share similar professional backgrounds and experiences to talk business. We organize and host, thereby positioning Strategic’s client as the community bind.

Better yet, time a meet-up in conjunction with an industry conference or event.

2. Thought leadership Webinars or teleconferences: organized to discuss a particular topic and often featuring one or more speakers, this is an effective way to establish credentials while creating a more meaningful bond.

For instance, a recent Webinar produced by Strategic in partnership with the Software Information and Industry Association (SIIA) has led to a number of exciting business discussions.

3. Good, old-fashioned sales calls: that’s right…there is nothing more powerful than the human voice and its ability to convey meaning and insight. Pick up the phone and call those social network connections. The result will be an important step towards fostering an actual relationship.

3 Social Media Portals Revealed

In early May I introduced the business case for an organization to create a social media portal in a blog post I thought would generate a significant amount of interest. Readership was modest and there were a couple of retweets, yet the feedback I received was tepid at best.

Thankfully, we were a bit more persuasive with a set of Strategic Communications Group’s (Strategic) clients who recognized an opportunity to elevate the success of their digital programs through a portal approach.

Let’s take a moment to revisit the original post, entitled “The Goodness of Social Media Portals.” My premise is that organization-wide adoption of social media – although a positive development – creates a number of significant headaches for corporate communications and marketing professionals.

For starters, there is the issue of consistency in strategy and messaging. The potential for a cacophony of competing voices is one of the reasons why the Pentagon is considering a limit on the social media engagement of military personnel.

Then there is the requirement to monitor the distribution of information to the market to ensure financial, legal and other contractual agreements are adhered to. I realize there are some in social media circles who argue for a free flow of information across social networks.

However, these purists lose sight of the fact that the real world is comprised of lawyers, shareholders and governing bodies. The value of an open exchange with little in the way of guidelines does not outweigh the pain of an SEC investigation.

Fast forward several months and Strategic has three clients that have now gone live with a portal as a core component of their social media program.

British Telecom’s (BT) “Secure Thinking”

Microsoft’s “Bright Side of Government"

Monster Government Solutions’ “Unleash the Monster”

While it’s inappropriate for me to divulge the strategy or specific success criteria for these innovative social media programs, I can share a couple of important factors that shaped the thinking at BT, Microsoft and Monster.

1. Develop a strong, clear and consistent voice to the market, leveraging social networks to connect with and engage a myriad of key stakeholders.

2. Publish compelling thought leadership content from multiple sources within the organization, structured in a manner that easy to access and digest.

3. Share community across multiple social media platforms to extend reach and influence.

My colleague Chris Parente also has an interesting take on social media portals and how they help a company effectively organize and present its content.

The Great Content Angst

It arrives in the early morning well before I am scheduled to rise. It begins with the sweats and quickly moves to feelings of dread.

What is this ailment? It’s a relatively new phenomenon of the social media era: the content terrors.





















During a new business presentation an often asked question centers around the demand for content to drive the success of a social media initiative. It’s true. Content that engages, educates and entertains is the foundation of any digital campaign.

Yet, we’ve found the obstacles to be few when it is time to launch a program. The editorial strategy typically flows from the agreed-upon goals and we are often able to repurpose existing content from multiple sources within an organization.

The content angst surfaces a ways down the road once a community of followers is in place. That’s because readers are fickle with their time and their investment with you can be fleeting.

Exceptional content pulls them in, yet also sets an expectation that future posts will be equally (if not more) insightful and inspiring. Fail to deliver and readers will drop you from their RSS reader faster than you can say “Friendster.”

Consider my Strategic Guy blog. Earlier this year I was on a readership roll with interest peaking in late spring at more than 2,000 unique visitors a week after a series of best practices posts. It has been slow drift downward ever since.

Each weekly check of Google Analytics creates a self-induced pressure vice that has lead to my terror-filled nights.

Others are feeling it too. For instance, accomplished blogger and marketer Beth Harte just announced that she is taking a hiatus because of the time and intensity involved in content creation.

So, what is the answer to this content conundrum? Here are a few ideas I am considering:

1. Tap into my relationship eco-system. Microsoft, Monster, British Telecom (BT), BearingPoint, Inmarsat, BroadSoft, GovDelivery…we are fortunate to represent a set of premium brands. Can I partner with their marketing leaders on content? Perhaps a guest post or executive Q&A?

2. Go back…for the future. As new readers sign on, I suspect many will find well-read blog posts from prior months to be of interest. Should I repurpose this content into a “best of” series?

3. Aggregate from credible sources across the Web. For our Open Road to Savings campaign, we have compiled content that provides insight into how companies are saving money in a challenging economic environment. The response from readers has been enthusiastic.

I read through nearly 150 content sources a week, such as business press, trade magazines, blogs and discussion forums. Could a collection of interesting articles help me keep up with the reader demanded pace of content creation?

Social Business Gem

At Strategic Communications Group (Strategic), we are fortunate to work with a set of bright, savvy and experienced clients. For me, they serve as a wonderful resource and sounding board as we develop best practices and continually refine our methodology for the delivery of social media and digital communications services.

For instance, Keith Hodson at Microsoft helped me define each of the three phases of social media maturation based on our experience working together. BroadSoft’s marketing team of Leslie Ferry and Kristin Martell have played a lead role in the creation of BroadBand Ignite, an innovative application of social media designed to support corporate positioning and leadership.

Let’s add Monster’s Janet Swaysland and Erica Pierson to our fraternity of sharp clients.

During a phone call this past week to talk through a soon-to-launch campaign we got into a discussion about Strategic’s approach to social media with its emphasis on lead generation, enterprise sales support, deal capture and SEO. Swaysland offered up this gem:

“It’s not really social media. Your focus is on social business.”

Wow…that’s good. Although a bit conceptual, social business is spot on with our belief that commerce – as measured by sales, profitability and valuation – is the driver of business accomplishment. Any activity that fails to contribute to these benchmarks in a measurable way is a cost subject to streamlined, outsourced or cut.

I’ll gauge the reaction to social business in the coming weeks through conversations with clients and prospects. I will be sure to share their thoughts.

Here are links to a few of “best of” blog posts that overview applications of social business:

Will Premium Content Cross the Last Mile

Social Media and Enterprise Sales Acceleration

Competitive Intel and the Social Media Footprint

Hope and the PR Hop

Three Phases of Social Media Maturation

At Strategic Communications Group (Strategic) we've been through the cycle.

From start-up to execution and now ROI evaluation, we have lived the maturation of social media and digital public relations programs. Our client work has also covered a broad spectrum of organizations, with representation of global firms like British Telecom (BT), Microsoft, Spirent Communications and BearingPoint, as well as emerging growth companies such as GovDelivery and Epok.

During the last few weeks I have made the swing visiting with clients to share the best practices and lessons learned we've picked up along this journey. It was during one of these discussions at a Starbucks tucked in a corner of a shopping mall in Washington, DC that a client helped define the three phases of a social media initiative.

Phase One: Pockets of Innovation

Strategic typically engages with a client in a pilot program environment, with the scope of work aligned with a funded requirement, such as a product launch, thought leadership campaign or industry conference. I assumed this pilot methodology was easily digested because it kept the budget (and risk) relatively modest.

While this is partly true, it's also apparent that certain individuals within an organization emerge as champions of social media. They may recognize that their customers and partners have become engaged in social networks and online communities. You have to fish where the fish are, right?

Or, perhaps it is a competitive threat in which an upstart has stolen away mindshare and momentum through their use of social media as a thought leadership platform.

Regardless of the reason, the social media champion correctly concludes that how companies position, brand, promote and identify leads has shifted. Their desire is to drive innovation in their communications program in a meaningful and measurable way.

During this initial phase, the social media program wins funding, a strategy is defined, an editorial content direction is agreed upon and tactics move to execution. The benchmark is to attract a community of readers, which is carefully tracked on an ongoing basis.

Phase Two: Bridging to Pervasive

There is a proverb that states success has many fathers, while failure is an orphan. This has proved to be spot on when it comes to a social media campaign.

As readership grows, the word spreads internally about the traction generated through social media tactics. There may even be instances in which direct sales and business development opportunities are identified through online channels. This resonates across multiple departments within a company, such as marketing, sales and product development.

This internal buzz stimulates action. Others in the company closely track the campaign and begin to invest more time engaging in their own social media activities. LinkedIn profiles are updated. Discussion groups are joined. Twitter feeds spring up.

For our social media champion, this second phase is about accelerating readership and encouraging dialogue. The editorial content strategy may evolve and multi-media elements -- such as video, podcasts, customer Q&As, etc. --are incorporated into the program. We also see a more consistent flow of comments, as well as other examples of readers reaching out to engage.

The promotion strategy to drive interest and among target audiences also becomes more effective and efficient. There is now a baseline. Readership and participation is measured with hot topics and themes fed to the sales organization as a form of real-time market intelligence.

Phase Three: The Last Mile

With the social media program now established and clicking along, our champion turns to the issue of ROI attached to measurable benchmarks.


At Strategic, we view community, conversation and awareness as merely the starting point. Is there an appropriate way to cross this last mile to identify members of our engaged community as sales leads, potential partners or new hires? (Image created by Ryan Schradin.)

It's in this phase that interaction with the organization's sales team becomes paramount. Thought leadership-based lead generation tactics -- such as educational Webinars -- combined with good old fashioned sales outreach must be defined and put in place.

Although we never stray from what's appropriate in social media participation, the last mile phase is all about justifying the spend to date and making a business case for continued investment.


What has your experience been with the implementation of social media programs? I welcome your comments to this blog post or you can add specific content to this article at this wiki:

Three Phases of Social Media Maturation

Microsoft's Search Share Reality

In mid-May I lauded Microsoft for its “Live Search Cashback” as an attempt to more effectively compete with Google. Multiple vendors in any market lead to innovative new approaches and programs, which is good for consumers.

I also made this prediction:

Will this help Microsoft steal away a share of the search market? Probably not. The registration requirements and waiting period for the money are both fairly extensive.

Looks like I was spot on. According to an assessment of US search market share by Comscore, Microsoft saw an initial bump in June yet has since drifted back to just under 9% market share.

Microsoft’s Live Search Cashback Scheme Fails to Move the Market Share Needle

Microsoft Live Search Delivers Pay Per Action

Microsoft just unveiled a program for its Live Search engine that provides consumers with a rebate on purchases made through the site. It’s Microsoft’s latest effort to lure more search traffic from Google and Yahoo.

According to an article by IDG News Service, “The cash back program offers an advantage for Web advertisers in that they only have to pay when they sell an item, known as a ‘pay-per-action’ fee. It also avoids the problem of click fraud, where bogus clicks on an ad drive up marketing costs.”

Will this help Microsoft steal away a share of the search market? Probably not. The registration requirements and waiting period for the money are both fairly extensive. Yet, this demonstrates the importance of competition as it leads to new approaches and innovation.

Microsoft unwraps search engine reward program
http://cwflyris.computerworld.com/t/3245163/408925/115457/2/

SaaS Consequences

Microsoft continues to move its focus from the desktop to the cloud with an announcement yesterday of Live Mesh, their new Web-based platform.

Microsoft Reveals a Web-Based Software System
By JOHN MARKOFF
http://www.nytimes.com/2008/04/23/technology/23soft.html?th&emc=th


I am a strong proponent of software-as-a-service (SaaS) as it gives a company the ability to concentrate on its core competencies while better managing its technology spend. In fact, one of Strategic Communications Group’s (Strategic) exciting client engagements is with GovDelivery (http://www.govdelivery.com/blog/), a SaaS provider of Email and digital subscription management solutions in the public sector.

However, I’m concerned that an unintended consequence of SaaS is the devaluing of the very solution being delivered. If everyone uses the same hosted CRM then that function within the enterprise becomes commoditized. The same could be said for HR, supply chain and finance.

Unique technology has historically provided companies with a competitive advantage. Is that era now at an end? I’m not proposing a return to the days of complex custom builds. Rather, a blended approach of SaaS and proprietary systems may be the way to go.


New Content Addition (4.24.08): interesting survey about SaaS adoption finds it remains a top priority, yet adoption has slowed.

SaaS, Web Services Top Software Priorities For Businesses
A new research report also shows signs of SaaS's maturity, with fewer businesses reporting they adopted SaaS for the first time last year.

http://www.informationweek.com/news/services/saas/showArticle.jhtml;jsessionid=5TK03ZVR5IPXAQSNDLPCKH0CJUNN2JVN?articleID=207401640&_requestid=109335

Google's App Engine Nurtures Innovation

Google is a one-trick pony.

Fortunately, the business they dominant – advertising supported Internet search – is a huge market that produces tremendous revenue and profits for the company. It’s no different than the enterprise desktop space that Microsoft has long owned.

Like the gang in Redmond, Google continues to struggle with how to best diversify its revenue. They’re playing with Web-based video through the YouTube acquisition, office productivity applications, Email security via the Postini buy, and a host of other technologies that may one day produce measurable revenue and profits. There’s nothing in the pipeline though that comes close to what Google has with its core business.

That is why the announcement last week of a Web services offering branded the “Application Engine” is such a brilliant play. Modeled after Amazon’s comparable offering, Google will allow software developers to build a web application and then host it for free on Google’s existing infrastructure.

Yes, this is going to be a money loser for Google for quite some time. They have the cash though to fund it and the infrastructure is already in place. More important, it is a great way of keeping an eye on the innovative applications being developed by leaner, more entrepreneurial start-ups. Any application deemed to have potential can be tested and acquired with limited risk.

I believe this is a more viable model for corporations interested in encouraging innovation. The days of corporate-sponsored VC and equity funds may have just ended.


Google’s Cloud Now on Tap for Web Developers
http://gigaom.com/2008/04/07/google-puts-the-cloud-on-tap-for-developers/

Microsoft's New Tune

Open source advocates cheered in the streets yesterday. That's because Microsoft announced it is releasing 30,000 pages of documentation for Windows (both desktop and server products) that were previously available to partners through a trade secret license.

Microsoft has finally capitulated to the open source movement by making Windows more interoperable with other software and the Web.

TechCrunch's Erick Schonfeld described this as Microsoft "singing a new tune." Basically, that the gang in Redmond has had a change in thinking about how to view open source.

Microsoft Sings a New Tune - Wants to Play Nice with Open Source
http://www.techcrunch.com/2008/02/21/microsoft-sings-a-new-tune%e2%80%94wants-to-play-nice-with-open-source/


No way. I think the headline to Erick's post is misleading. If Microsoft could continue to drive revenue from its anti-open source approach they absolutely would. There's no reason to give away what you can sell.

Rather, Microsoft's leadership has come to the realization that the way they will continue to grow the business is by embracing (rather than fighting) open source.

The battle has been won. Open source it is!

PR is Professional When the Focus is "Why"

There are two reasons why this article from the NY Times about Microsoft's proposed acquisition of Yahoo is an exceptional piece of writing:

1) It provides perspectives on “why” Microsoft’s play for Yahoo is relevant to the broader technology markets; and

2) It puts this deal into context with the overall instability in the economy.

At Strategic Communications Group (Strategic), we adhere to a context-based approach to public relations in which our understanding of the client's business goals and the trends shaping relevant markets impacts our counsel and tactical execution. In our opinion, it's the difference between being a true public relations counselor and a "smile and dial" PR hack.


Yahoo Sale Could Be Bad for Minnows
By BRAD STONE and MIGUEL HELFT
Microsoft's proposed mega-bid for Yahoo is based on its own particular corporate needs and may not be a harbinger of rampant deal-making in Silicon Valley.

http://www.nytimes.com/2008/02/03/technology/03yahoo.html?th&emc=th

Data Portability and the PR Counselor

The issue of data portability as it relates to social networks is a timely topic that will influence the product development strategies of Web 2.0 vendors. Computerworld published an article this morning about Digg joining the new industry consortium created to address this issue.

Digg joins Microsoft, Facebook and Google in data portability group
Computerworld
http://cwflyris.computerworld.com/t/2681621/408925/96612/2/


How will this shape the policies of vendor-created personalized social networks? For instance, who owns the data that comprises my profile in Oracle’s new Customer Collective (http://www.thecustomercollective.com/)?

The role of a public relations counselor involves an expertise in communications, as well as an understanding of the business and technical considerations that can impact the success of a PR program.