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"In our research and others we’ve subscribed to, 60% of today’s companies fall into the Ad Hoc stage, 30% in the Experimental stage, 9% in the Participating stage, and less than 1% fall into what we consider the Strategic Social Business stage. This 1% has mastered cultural change."
"However, tactical experiments generally result in outcomes that aren’t strategic by definition, with limited outcomes and blunted impact; there are much better ways to apply social business when the underlying business processes — and even the underlying business models — are thoroughly overhauled more holistically for a pervasively connected and digital world.
To underscore this point, an important new post by Altimeter’s Jeremiah Owyang this week explores how we’re only getting started with social business, even as the whole social and 2.0 movement gets ready to reach its first full decade. In the post, Jeremiah presents some of their latest survey data showing that only a few organizations have reached an advanced stage of adoption, that there is limited integration across business units, products lines, and customer databases, and that only a leading cadre of companies are highly organized or systematic in their use of social media. In other words, a lot of useful work has been done but most of us are only getting started and we know it.
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Unfortunately, I see companies all too often squandering even the the low hanging, easy-to-reach potential to re-conceive and galvanize key processes in customer care, product development, marketing, sales, and operations. Usually it’s because they look at it through the lens of what they do today, versus what the industry norm will be in five years, or even what leading companies are already doing today.
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"Capability Maturity Model Integration (CMMI) is a process improvement approach whose goal is to help organizations improve their performance. CMMI can be used to guide process improvement across a project, a division, or an entire organization."
"Now. IDC has proposed a similar approach for social enterprise development, called the Social Business Maturity Model, which is intended to help companies that are growing in their adoption of social business and want to optimize their use of social tools.
IDC’s Social Business Maturity Model consists of 5 stages:
Experimentation
Compartmentalization
Integration
Operationalization
Optimization"
"Companies often achieve great success with a value network business model, or internal collaborative value networks, only to have that advantage erode over time. Why is that? In our experience, an organization that has not truly mastered Value Network Analysis as a basic competency finds it increasingly difficult to hold the line against the more familiar and traditional bureaucratic models of organization"
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Level 1. Initial Stage
It is characteristic of value networks at this stage that they are mostly undocumented and in a state of dynamic change. - 4 more annotation(s)...
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"As more companies begin to be interested or in some cases to effectively launch new initiatives for involving customers and employees to improve their business, a possible sequence of cultural, technological, organizational maturity stages starts to show up.
Each stage is characterized by a certain level of understanding of the role that social media play in creating value, by different organizational schemes and by specific degrees of integration between internal systems and online conversations."
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- The entire value creation chain including customers, prospects, suppliers, employees is affected by the conversations happening between the company and its ecosystem. Marketing, service, communication, innovation, product management are constantly and in quasi-real time realigned to customer insights. Now the company understands how its products / services are being used and influence you the lives of their customers. Internal and external processes are restructured both to increase the value created for the organization and the customers’ quality of life, in a mutual beneficial way.
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"Although the concepts may be simple, there are plenty of reasons brands are not effectively starting conversations -- from incomplete strategies to limitations in technology. There is more to offer here in terms specifics on these limitations - and more importantly, solutions helping companies address to them... "
Levels of maturity are standard levels of competency that have been the foundation for many different kinds of maturity models. One of the best known frameworks is the Capability Maturity Model. The maturity model framework can be adapted to value networks as well. Such a model can help address questions of value network competency and aid in developing value network strategies.
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