Archive for the ‘Sectors’ Category

The highs and lows of being first and last

The Time Is Going by Neto Simões

Picture: The time is going by Neto Simões

The UK economy’s been reported as shrinking by another 0.4% over the last quarter. Contrary to how many predicted it would be, the expected step out of recession here hasn’t yet happened.

France and Germany have turned a corner allegedly, so the productivity margin between us and other major European countries is increasing.

That’s not good news and being last is not fun.

180 years ago, we were cutting edge. The UK hit the industrial revolution first. We had railways first, good plumbing ahead of the rest, our postal services began first, we industrialized first; we have old, cumbersome infrastructure to deal with.

At a deep psychological level, the UK has a lot to lose as a result of this recession, a loss of global prestige, a sense of established identity. Britain’s been a splendidly isolated island, uninvaded for 1000 years, while multicultural Britain is a newer, more vibrant and mixed up phenomenon.

Retraction back to what is known is tempting when traditional cultural assumptions are tested. I think the fascination with Nick Griffin is maybe because he represents that lack of desire to give up perceived superiority.

The shift from industrial to social ways of doing things in the UK involves dealing with entrenched industrial infrastructure and a shift in our ideas around communities. That’s the case in a lot of places but is arguably more pronounced here. We’re tackling the shift head on, together with the shame and iniquity of having to ‘learn to tolerate inequality’. At a global level, I wonder what side of that particular divide UK plc might end up on.

The pain of recession may be more acute here than elsewhere. The cathartic hope though is that it’s also a spur to adaptation, so we accept game-changing as a must-have more than a nice-to-have and, in doing so, experience a sense of renaissance.

The renaissance of crossing the threshold of decay back to vitality and growth is a powerful turnaround. Visceral responses, that twitch in the gut when something feels real, is a synaptic bridge to the excitement of new life. Combine future potential with past understanding and evolution towards a constructive directional path, and rebuilding Britain becomes possible.

The best of both worlds literally comes from the ability to combine the equity of a distinctive heritage with the potential asset value of what is now possible. That’s the kind of streamlined social cohesion that’s social business.

There’s a cultural paradox here – traditional British reticence, stiff upper lips, glorious independence and a preference for personal space have made us quite good at being social with computers. Twitter thrives in the UK, especially in London. We have some of the best creative minds and practitioners of social initiatives on the planet mile for mile. So this is the time for social business design to take Britain out of the industrialized doldrums. Adopting the principles of social business can encourage self-sustainable networks that balance themselves commercially, so that they are more streamlined and effective and can create the edge we need.

The commercial and social future potential of the UK will undoubtedly be affected by whether or not we do this and how well we do this. There lie the highs and lows of being first and last.

Where’s the margin in social media?

Calculator by ansik

Calculator by ansik

This is a guest blog post as part of the forthcoming Somesso conference on leveraging social media for the finance industry in Zurich where I’ll be speaking November 2nd and 3rd.

According to a data from Forbes, Altimeter and Visible Banking, only 5% of the world’s 100 largest hundred banks, 9% of the world’s largest diversified financial groups and 6% of the world’s insurance companies are acknowledged as having a profile in social media.

Financial services organizations face inherent cultural difficulties in engaging with customers because, culturally speaking, protection and security issues determine a vault-like mentality runs like a thread throughout the banking and insurance sectors.

The diversification of risk might support the social network principles of outreach and creating loose ties, but mitigation of risk by financial service organizations is, on the one hand, a strong proposition and reason for product purchase and, on the other, a handicap in forming strong and committed connections. Culturally in the financial services sector, organizations generally tend to be closed, conservative, and analytical skills dominate over empathic ones.

In the social space, affinity is stronger than structure and relationships drive the business model. The automation of transactional value has opened up a new highway for relationships and connections made around soft assets such as purpose and values. Data has never been the whole deal and niche audiences, mass market ones, local and global constituencies alike, can all benefit from your business having a social business design strategy.

In 1997 Times Mirror had an opportunity to buy Ebay, (then Auction Web) for $40m, and passed. Just three years later, Times Mirror was purchased by the Tribune Company for $8bn, and by that time Ebay was worth twice that amount. Ebay created a model where retailing goods became the domain of everyone.

The news and media sector has been radically altered over the last few years by social networks and new file sharing capabilities that, between them, have had the effect of making everyone a journalist and their own curator of information. The Huffington Post now has more unique visitors than the Washington Post. Social campaigning, as has been seen from The Telegraph and The Guardian, create significant social equity and purpose where subscription only models do not. Reputation, as bolstered by network effects, is determining perceived performance and therefore value.

The critical characteristic of the internet is that it challenges traditional sector concepts such as news, health, retail, government and finance, and makes them much more granular and accountable.

So, in this way, ‘news’ has become the domain of everyone. It’s possible to imagine financial services organizations running the ultimate risk of marginalization by peer-to-peer networks and virtual currencies in potentially a very similar way. In that sense maybe social media is itself good insurance by cultivating social relationships and behaviours.

When people can trade independently and individually all around the world, instantly and digitally, traditional currencies can become cumbersome compared to peer-to-peer currencies and social capital. The reputation of all the constituent parts of your organization, from the master brand through to corporate officers and the talent that exists company-wide, and beyond, has value within it. Those formative relationships may be the fuel for your future business strategy.

By offering what Forrester’s new report “Adaptive Brand Marketing: Rethinking Your Approach to Branding in the Digital Age” calls the 4 P’s of adaptive brand marketing – permission, proximity, perception, and participation – it is arguably the formative, adaptive relationships – the currency of social media and social business design – that will enable financial service organizations to become leaner and more agile. That’s worth considering as a significant potential margin on offer.