Nestlé launched the Creating Shared Value concept at the United Nations in New York in 2009, and on Thursday 27 May 2010 Nestlé is co hosting the second Creating Shared Value Forum with the International Business Leaders’ Forum in participation with the UN Office for Partnerships. The Forum gathers world’s leading experts in the areas of nutrition, water and rural development to discuss the serious global challenges facing all of us in these three areas, and the role of business in solving them.

While the Forum is being webcast live on www.nestle.com ( from 09:45 to 18:00 CET ) the live audience has the opportunity to ask questions to the panelists or participate in parallel debate online. LABEL is assisting the Nestlé Creating Shared Value Forum and its team in hosting the debate on www.creatingsharedvalue.org

Important links
Creating Shared Value
Creating Shared Value Forum live webcast
Online Debate on Creating Shared Value Forum

1. By 2014, social networking services will replace e-mail as the primary vehicle for interpersonal communications for 20 percent of business users.

“Greater availability of social networking services both inside and outside the firewall, coupled with changing demographics and work styles will lead 20 percent of users to make a social network the hub of their business communications. During the next several years, most companies will be building out internal social networks and/or allowing business use of personal social network accounts. Social networking will prove to be more effective than e-mail for certain business activities such as status updates and expertise location.”

As in the social network space direct emailing between people has dropped as people prefer to message each other as static email type messages or as IM working directly within the social network interface. The broadcast of messages appears as news feeds either to all persons in a network or as news specifically based upon an individuals interests, affinitities, or information needs has eaten into email’s dominance of electronic messaging and communication in the consumer world and will continue to do so. Interestingly, one enterprise social networking system we recommend from Telligent has a email client bridge at the moment that allows a “cross function”  between an email client and the an enterprise community/or social platform. It integrates to the MS exchange  email client allowing it to  act as social publishing interface when the enterprise user prefers not to enter the social network but still have its postings and interactions visible.

“Gartner recommends that organizations develop a long-term strategy for provisioning and consuming a rich set of collaboration and social software services, and develop policies governing the use of consumer services for business purposes. Companies should also solicit input from the business community on what collaboration tools would be most helpful.”

2. By 2012, over 50 percent of enterprises will use activity streams that include microblogging, but stand-alone enterprise microblogging will have less than 5 percent penetration.

The huge popularity of the consumer-microblogging service Twitter, has led many organizations to look for an “enterprise Twitter,” that provides microblogging functionality with more control and security features to support internal use between employees. Enterprise users want to use microblogging for many of the same reasons that consumers do to share quick insights, to keep up with what colleagues are doing, to get quick answers to questions and so on.

One such enterprise Twitter like microblogging  stream is Yammer, which at LABEL, we use as insight, research, and broadcast channel that doesn’t spam through our email system and allows for quick response and interaction between interested parties.

“However, it will be very difficult for microblogging as a stand-alone function to achieve widespread adoption within the enterprise. Twitter’s scale is one of the reasons for its popularity,” said Jeffrey Mann, research vice president for Gartner. “When limited to a single enterprise, that same scale is unachievable, reducing the number of users who will find it valuable. Mainstream enterprises are unlikely to adopt standalone, single-purpose microblogging products.”

We do differ to Gartner in our thinking. Where we see their use is in smaller defined interest groups inside of large enterprises. The enterprise microblogging services  will be picked up as quick information exchange platforms between collaborating and social groups within an enterprise. This is clearly illustrated by the growth of groups within communities and networks as centres of specific interests or needs.

3. Through 2012, over 70 percent of IT-dominated social media initiatives will fail.

I think this supports the adage we often adopt in recommending social media activities with clients be they consumer facing or in the enterprise. It not about the technology , but about how people use the technology. Start with the people equation first, not the technology equation and the adoption of these tools will ultimately succeed. We advise our clients to stop, listen and learn, create an engagement strategy that supports the business and communication objectives of before concentrating on the what and how of the technology. The answer is clearly underscored by the observation we have of IT companies making consumer facing websites or working out consumer engagement strategies in terms of digital marketing they just don’t do it very well, they deliver a platform not a communications solution and a strategy.

“When it comes to collaboration, IT organizations are accustomed to providing a technology platform (such as, e-mail, IM, Web conferencing) rather than delivering a social solution that targets specific business value. Through 2013, IT organizations will struggle with shifting from providing a platform to delivering a solution. This will result in over a 70 percent failure rate in IT-driven social media initiatives. Fifty percent of business-led social media initiatives will succeed, versus 20 percent of IT-driven initiatives.”

“Enterprises will need to develop entirely new skill sets around designing and delivering social media solutions. Until this happens, failure rates will remain high. A dearth of methods, technologies and tools will impede the design and delivery of social media solutions in the near term. But long term, enterprises will realize that social media is not a “hit or miss” activity naturally prone to high failure rates, and that a calculated approach to social media solution delivery must be an IT competency.”

4. Within five years, 70 percent of collaboration and communications applications designed on PCs will be modeled after user experience lessons from smartphone collaboration applications.

” As we move toward three billion phones in the world serving the main purpose of providing communications and collaboration anytime anywhere, Gartner expects more end users to spend significant time experiencing the collaborative tools on these devices. For some of the world, these will be the first or the only applications they use. The experience with these tools for all who use them will enable the user to handle far more conversations within a given amount of time than their PCs simply because they are easier to use. Just as the iPhone impacted user interface design on the desktop, the lessons in the mobile phone collaboration space will dramatically affect PC applications, many of which are derivatives of decades-old platforms based on the PBX or other older collaboration paradigm.”

5. Through 2015, only 25 percent of enterprises will routinely utilize social network analysis to improve performance and productivity.

The practices of Social Media analysis and the growing number of tools that are examining dialogue, sentiment, and the semantics surrounding consumer expression in participatory media can be applied as useful methodology for examining the interaction patterns and information flows that occur among the people and groups in an organisation or company. Gartner says “However, when surveys are used for data collection, users may be reluctant to provide accurate responses. When automated tools perform the analysis, users may resent knowing that software is analyzing their behavior. For these reasons, social network analysis will remain an untapped source of insight in most organizations.”

“Before undertaking a social network analysis, Gartner recommends that the organization ensure that it has the trust and buy-in of the people it hopes to include in the analysis in advance. Issues of privacy and confidentiality must be addressed and a determination needs to be made regarding how the information will be used and communicated. Establishing the ground rules upfront will encourage more open and honest participation and reduce the resistance to ongoing relationship monitoring.”

One of the more interesting pieces of news I read in the last week was that the Paris-based holding company Publicis Groupe said it has acquired Pour Tout Vous Dire, the French customer relationship management program of a key client, Unilever. While the exact figures have not been disclosed Publicis has obviously seen this as buying a solid media entity that you can build upon. In its original form the CRM program was a direct to consumer magazine that has since morphed into a lifestyle portal online with over 5 million subscribers. This evolution in CRM programs is not an uncommon move in FMGC industry ( but the sale of them to an agency is ) . For instance in France  FMCG CRM programs from Unilever’s direct competitors  like Club Nestle a loyalty club and brand driven magazine, is now an online community and lifestyle portal  Croquons la vie, and Danone et Vous a former magazine is also a  lifestyle and product publishing site.

Publicis obviously values the quality of Pour Tout Vous Dire’s  consumer database who are attracted to a wealth of content and services on the site. Companies like Nestle, P&G , Danone and Unilever are all building and expanding these lifestyle content driven CRM sites. As they boost their direct to consumer communications digitally they behaving like publishers creating specialist lifestyle content with the added benefit of adding product offers and services to consumers. As magazine patronage sinks the value of these specialty content driven sites as credible media entities becomes more real. The value of the audience in these CRM sites is tremendous. Think of  P&G’s  Being Girl sites for the Tampax brand first started in the US is  now rolled out in 29 countries worldwide with a reported 400% more effective reach than traditional media. The consumers on all these sites are demographically qualified and if the CRM databases have stored more behavioral information such as interests, content profiles , propensity to use coupons, etc then you have a predictive goldmine for highly targeted communications as well as good content.

Publicis’ move also underscores the agencies are potentially becoming competitors to the companies they work with. As the media companies are increasing their foothold in digital they are buying up digital properties where there’s good content aggregation and known audiences. The agencies are morphing. Media buyers are becoming the media, investing in online Ad networks and now even as we have seen in this move buying their clients sites. It may not be a big deal for Publicis, however, it sets a new precedent.

Unilever sold its CRM site with a free run advertising and communications deal for five years and may be allowing Publicis to build a bigger media entity then could have built themselves. I have no predictions on whether this will or won’t work. What is clear is that Unilever sold its consumer database as a credible asset. No doubt it had invested hard to build it and its consumer’s loyalty, however, its hard for me to reconcile that sale. I believe that when a consumer gives their personal information to company it is done in a relationship of trust with that company. Yes the company is building an asset and returning a value and service in return, however, I don’t think the consumer information or even their trust and loyalty  should bought, sold, and treated as such.

After 50 years of mass advertising  have we reached such a level of cynicism that the magic of the message fails to impress unless it entertaining or funny?  It is unerringly clear that as the speed and ubiquity of digital touch points grows,  controlling the message has become increasingly difficult for marketers.  When it comes beginning to understand the  influencer landscape there a number of consumer truths that have to be reconciled  to understand why this has become so important. The marketing messages in mass media, even in the most cleverly devised campaigns, seem to be dismissed by consumers as missing an element of the truth or transparency, as if too say,  they have worn out their welcome.

Its good to reflect why this remark maybe relevant. In recent presentation by an Brian Giesen, Ogilvy PR executive in Australia , where Ross Dawson presented the Influencer Landscape framework ( see above ) he attributed  the reasons of the shift in consumer belief to the following researched facts.

• – 75% of people don’t believe that companies tell the truth in advertising.
• - In the US 81% look to word of mouth (be it online or offline ) for decisions.
• - Trust in Media Editorial is is at a low 56%.

No wonder the citizen journalist in us is alive and well, albeit with the aiding and abetting of the new wave of  social communications technologies.

The Driving Forces

The Democratization of Media , Social Media Integration, Social Media Aggregation, The Decline of Advertising  Impact and Peer Trust all play  a role that is aided by influence mechanisms or media channels and touch points, the influence aggregators, and networks. How they all interconnected is pivotal in determining  how people behave.

For brands and companies its the  consumer trust and transparency that  remains as a  paramount concern over and above their advertising. Both managing a reputation and those consumer benefits already ingrained in a product offering become important issues.   Companies and brands that break that consumer trust  run the risk of trying to manage very hard to contain negative consumer sentiments.   Let’s not forget the adage, when a consumer has a bad experience they  tell 8- 10 people and 3-4 people when its a good experience. As we have seen in digital its amplified many times over ,  a single bad comment,  video, picture can ruin a companies or brands reputation overnight as it spreads through a web of influence.

A consumer has an 81% trust in word of mouth. The only clear and trackable way of following sentiments (other than in controlled research,or  focus groups or spying )  is to trawl the digital world where unbiased streams of thoughts and conversations take place. The same conversation can be taking place in many places at the same time , so how do we know which one has more weight than the other? which one has more influence? and which one may potentially be passed on? The landscape of Influence lies not only in immediacy of the contact or proximity to an influential source but also in  the volume of the opinion where the audience is in a dispersed chain of distribution,  or visiting sites where the collective  filtering takes place  e.g. the  most popular  opinion will rise to the top as common consensus. The social media aggregators and the resulting long tail of residual,  searchable and  referential digital footprints creates a potentially long shelf life for an opinion.

In the  Influencer landscape there are domains of influence  both in the networks where audiences gather, meet and talk  and where commentary is redistributed, in the critics circles and social media aggregators. So what are these domains?

The Where :  Domains of influence

• - Blogs, Microblogs
• - Video and photo communities
• – Message boards and forums
• – Social networks

The How : Characteristics of influencers
Its important to define our influencers  by identify certain behavioral characteristics,  as we know these people are really a minority group. A majority of people in social networks or communities are “lurkers” , the observers and readers, only a few people are the real content creators or conversationalists.  In landscape of Influence people are placed in a hierarchy of behavioral importance. Creators, Critics, Collectors, Joiners, Spectators and the In-Actives.  There are very few Creators, more Critics, a greater number of Collectors and so on. Identifying your Creators and Critics  leads you to understand the influence they have on the greater number of  Collectors, Joiners and Spectators. Creators are the initiators of influence and they share a few basic identifiable characteristics. They :

• - Engage others in conversations
• – Inspire others to continue the conversation
• - Participate consistently
• - Are seen as credible
• - Compels others to want to hear what they say next
• - Create content that is ‘remarkable’

The What : Engaging

• - Process of Listening (Conversation maps)
• - Planning (Influencer maps)
• - Engaging (Programs)

If brands and companies want to engage in the Landscape of Influence its best to understand the lay of the landscape first. Tapping into and understanding your influencers is a growing approach and  knowing what can be influential or what motivates them as influencers is a priority .  The qualitative understanding what drives conversation and reaction  is of key importance.  Understanding the patterns of distribution  is  more of a  complex matrix, however, its is likely that on any given subject matter there is one or two main sources of primary influence and then there are many interested re distributors  who act as  networked satellites  surrounding the source in close proximity. In mapping this influence it is commonly referred to as hot spots , where a dense grouping of people , ideas and conversations are in close proximity to each other. Knowing , when and where to engage these groups requires a  business intelligence approach, involving key data points for a precision driven programs. The under pinning  of this are the relationships a brand or company will create as these are direct communications programs. Whether its blogger outreach programs, external community engagement, influencer scouring, the development of closed special interest communities there has to be a defined dialogue idea or a  value proposition in the engagement. The other thing to remember is that once you create a relationship , its ongoing and you must nurture and maintain it or lose it.

View the intiating source of the Influencers Landscape at  Ross Dawson’s Trends in Living Networks