Embed Size (px)
Citation preview
WE > ME
Building a “WE” Company:
The New Competitive Edge
April, 2008
The Premise of WE
What is a WE Company?
3
ME
Versus
A WE company leverages the power ofcommunity in all of its operations to drive
break out results
A ME company depends on its ownresources in all of its operations to drive
traditional results
S= socially networked business processes
C = co-creative products and services
O = open and authentic processes and
communications
R = rewards centric and risk knowledgeable
(e.g. accepts shared responsibility)
E= evaluates results
Principles of a “WE” Company
Why WE Now?
5
Sociologicalchanges
Technological changes
Investorchanges
WE Attributes
Process ME WE
Leadership Exclusive Inclusive
Marketing Traditional Social
Sales Ours Everyone’s
Innovation Closed Open
Ownership Few Many
Structure Bureaucracy Flat
Training Formal Informal
Support Corporate Peers
Finances Finite Infinite
BUSINESSRESULTS
Low growth, lowvaluation, small
number ofconnections
High growth, highvaluation, large
number ofconnections
6
WE Benefits
Process Chapt
erBenefits Case studies
Innovation WE canDo It
Accelerate growth, reduce risks,improve sales
Innocentive
Research R & WE Access experts, lower cost,improve solutions
P&G
Support We HelpWE
Share experiences, gain access,reduce cost
Netflix
Sales SellThyself
Improve loyalty, reduce churn Angie’s list
Products WE canBuild it
Enhance productivity, lower costs I stock photo
Finance Bank ofWE
Gain capital, spread risks,improve returns
Prosper
Leadership C-WE-O Align people, enhanceperformance
Cambrian House
Culture Lead fromRear
Improve results, gain buy-in,reduce risk
Southwest
7
Are You WE? (quick quiz)
Please rate on a scale of 1-5:
1 = “not at all” 5 = “all the time”
1. Are you customers, prospects and partners “socially-networked?”
2. Do you co-create with products and services withyour customers and prospects?
3. Do you openly and authentically communicate withyour customers and prospects using social media?
4. Do you recognize and reward the contributors of yourcommunity?
5. Do you allow your community evaluate your productsand services?
8
ME(a company that reliesprincipally on its own
resources - people, processes,capital - to produce its
products and services; result:growth rates are low as are its
true connections)
WE(A company that relies on thepeople, processes and capital
of others to build, sell andservice its products and
services: result's: superiorperformance due size ofcommunity/connections)
Connections
Types of ME & WE Businesses
Valu
eM(e)
(a company that reliesprincipally on its own resources– people, processes, capital – to
produce its products andservices; results growth rates
are high, as are profits, butconnections are low)
THEY(a company the incorporates,tactically, others to produce itsproducts and services and isbeginning to open up more
processes : results: improvedperformance based on its
growing connections)
9
Objector(Hopes the ME (old) wayisn’t dead so holding onto
the old (ME) way)
Activist(Believes in WE andintegrates WE intoeverything they do)
Types of ME & WE Leaders
10
Contributor(knows that the WE (new)
way is the future of business& trying WE (new) way)
Observer(Taking wait & see attitudedue to current success with
old ME way business)
ME(Reduce ME processes and
reinvest capital in WE)
WE(Expand WE activities to
build on its success)
Connections
WE FrameworkV
alu
e
M(e)(Examine sources of ME
value to insure sustainability)
THEY(Initiate a set of WE
processes to prove value)
11
Who is WE? Breakout Exercise
Now that you know a little more about whatmakes a “WE” company, let’s take 5 minutesto brainstorm about which companies arestill “ME” and which are “ME”…
1.Each table will be a group – identify aleader that can provide results back to theroom.
2.Identify two “ME” companies and two “WE”companies – what are attributes of each?
WE Case Studies
14
Case Study: Starbucks – ProductInnovation
Situation:• To help revive its struggling U.S. business, Starbucks
asked customers pitch the company on recommendedchanges
Solution• Starbucks launched a public community to capture ideas,
comments and suggestions from its best customer
Results• Within first hour following launch, 300 innovative
suggestions were posted by a crowd of 6,000.• By the end of the week, over 100,000 votes had
been cast• 48 Dedicated moderators• 1 month later, they have implemented several ideas
including a decision to not print receipts fortransactions under $25 unless requested.
Case Study: Procter & Gamble – R&D
Situation:• In 2000, A.G. Lafley new CEO, change to R&D• Perception: Despite an incredible track record, innovation
was not happening fast enough
Mission & Challenges• Goal: By the end of the decade, 50% of all new P&G
products and technologies come from outside• Massive change resistance
ResultsBy 2007:
• 42% of all ideas are from outsiders
• 60% productivity increases
• 80% of product launches are successful(industry average is 30%)
InnoCentive – A “WE” Company - CaseStudy• Ocean Spill Recovery Institute (OSRI)
• Focused on recovery of oil and reduction of environmentaldamage related to Exxon Valdez Oil Spill
• Problem – Could not separate frozen oil from water in collectionbarges. (aka - Breaking Viscous Shear of Crude Oil)
• Solution – An Illinois Chemist from the Concrete Industry wrotethe award winning abstract based on a technique that has beenused for years to move liquid concrete.
• Result – The chemist won $20,000 and the oil industry solved a30+ year problem within 2 months after posting in on the Web
“If this Challenge were easily solved by the people within the industry, it wouldhave been solved earlier. The InnoCentive process allows us to step outside the
box and look at more creative solutions” – Scott Pegau, OSRI
Drew Buschhorn, InnoCentive
Solver
• Industry Problem
– New substance to replace an art
restoration chemical that is
being phased out by
Environmental Protection
Agency
• Not an Industry Insider
– 20-year-old chemistry student at
University of Indiana,
Bloomington
• Solution Existed with a
Hobbyist
– A substance he had found years
ago to help his mother preserve
colors in dyed clothSource: Business Week, June 20, 2005
InnoCentive – A “WE” Company - CaseStudy
Bringing 24/7 Light to “off grid” Africa
18
InnoCentive was looking to expand beyond industrialresearch into philanthropy; Bent needed a better light forthe developing world. With funding from the RockefellerFoundation and the New York venture capital firmSpencer Trask — launched over a century ago by theman who helped finance Thomas Edison's first light bulb— Bent put up a challenge on InnoCentive's network toimprove on his BOGO light. It was answered in shortorder by a engineer in New Zealand named RussellMcMahon, who came up with a new design that makesbetter use of both the solar battery and the LEDs,allowing for a stronger, more dependable light. The resultwas a perfect example of wiki-innovation — people fromopposite sides of the planet, who would have never meteach other, coming together to find a solution through thepower of the Internet.
http://www.time.com/time/health/article/0,8599,1721082,00.html
Case Study: ABC Network – Lost
Theories
Situation:• Provide additional revenue opportunities around
traditional network programming
Solution• Create a message board to allow viewers to post,
rate and rank each others theories
Results• Thousands of viewers participated• Great content created for potential
programming• Most importantly, ABC was able to
create an exclusive sponsorship forJeep
Case Study: AMEX – The MembersProject
Situation:• In May ‘07, every American Express card member was invited
to submit ideas for projects to make the world a better place
Solution• For 6 weeks, card members were able to submit their ideas in
The Members Project online community
Results
•186,508 Card members registered
•7,000+ project ideas were submitted
•162,087 votes were cast
•1.5 million+ unique visitors to the website
•The winner? “Children's Safe Drinking Water” The U.S. Fund forUNICEF, the organization selected to fulfill the idea, was given $2million, which will be used to provide millions of children in thedeveloping world with safe drinking water. The other four top-votedorganizations each received recognition awards of $100,000.
How to Get Started?
21
Questions?
22
Q&A
InnoCentive – A “WE” Company - CaseStudy• Challenged our own Solver Community
• Create a Promotional Video for the InnoCentiveBusiness Model
• $5,000 prize for the winner
• 20+ Videos Received
• Just a Sample…….
