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Does social media really correlate with the bottom line? Color me skeptical
A study has found that revenue, gross margins and profits correlate nicely with companies that are the most engaged with social media. Should you build a portfolio around these highly engaged social media friendly brands? Probably not.
An alternative way to define IT project results
IT projects need define a combine the engineering work to be done and the results that they create. Doing so requires more than giving the project a business based name. Here are a few steps for an alternative way to define an IT project.
Combining these three ideas, when companies pay to execute a project, it’s not the project they want, it’s the result. They want more revenue generating customer relationships, not processes around a CRM system or even the capability to look up customer names. What they want is the result.
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First, companies don’t pay for activities, they pay for results. As explains in the blog post http://blogs.gartner.com/mark_mcdonald/2009/06/30/activities-vs-results—the-difference-makes-all-the-difference/From this post.
Second, those results come from changing capabilities which are a more powerful definition of the business. So it’s the capability people want. http://blogs.gartner.com/mark_mcdonald/2009/07/02/capability-is-more-powerful-than-process/
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Results can be defined in the following ways:
4 idées pour booster l’entreprise 2.0… pour de vrai !
En complément de cette vidéo qui est longue mais très intéressante, voici 4 idées qui résument mes positions :
Idée 1 : Le Web 2.0 est relié au comportemental et non au financier
Idée 2 : L’art du management paradoxal
Idée 3 : Le Web 2.0 pour vendre et recruter, pour développer sa notoriété et gérer sa réputation
Idée 4 : Dissoudre un individu dans le collectif nuit gravement… au collectif !
Voici le détail de ces idées :
The Fallacy of Financial Metrics
In both entrepreneurial and larger companies, we too often spend time focusing on the desired financial performance target, rather than the inputs that drive those numbers. Because boards, investors and management demand an objective way to measure performance, we often go right to the result without focusing on what caused those results.
Social Media ROI - a financially sound method
Contribution Margin in currency generated from externally referred customers
over cost in currency for human interaction and other cost to manage and engage in the ecosystem
= Social Media ROI.
The End of the Financial World as We Know It - NYTimes.com
OUR financial catastrophe, like Bernard Madoff’s pyramid scheme, required all sorts of important, plugged-in people to sacrifice our collective long-term interests for short-term gain. The pressure to do this in today’s financial markets is immense. Obviously the greater the market pressure to excel in the short term, the greater the need for pressure from outside the market to consider the longer term. But that’s the problem: there is no longer any serious pressure from outside the market. The tyranny of the short term has extended itself with frightening ease into the entities that were meant to, one way or another, discipline Wall Street, and force it to consider its enlightened self-interest.
Metrics Innovation
As the late mathematician Richard Hamming tartly observed, “The purpose of computing is insight, not numbers.” That’s also the goal of innovative metrics. The measure of the success of innovative metrics is how clearly they convey the value - and risks - of the innovation. Watt’s steam engines, P&G’s soap, and Intel’s microprocessors might well have dominated their markets without novel metrics. But for these businesses and many others, innovative metrics made selling their products to a large number of customers a much less difficult prospect. Indeed, as many innovators are learning, oftentimes the best way to take the measure of a new market is to create a new measure for the market.
The Irrelevance of Quarterly Results in the Knowledge Economy | Huddlemind Labs
Quarterly financial results are totally meaningless as an indication of value created. Throw out your Income Statement and your Balance Sheet and get cracking on creating intangible assets if you want to make it in this knowledge economy.
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