MARCH 2013
Social Business Social networks and business outcomes: The search for value The “social� trend Social business is blooming Business model view
also in this issue
Trending issues Technology trends
5
contents The Social Trend....................................................................................4 Social Business is Blooming...................................................17 Business Model View....................................................................24 Global Snapshots.............................................................................. 34 BBVA & Social Business............................................................. 42 Innovation Forecast....................................................................... 45 In Depth.......................................................................................................50 Sections.........................................................................................................52 Trending Issues..............................................................................52 Technology Trends..................................................................59 Social Business & Banking event................................... 63 BBVA Invest in innovation......................................................64 Credits............................................................................................................66
March 2013 | SOCIAL BUSINESS 03
The
social trend 04
Some say that we, humans, have always been social. The rise of social technologies enables people to finally fulfill their innate desire to become more connected to one another. The possibility of managing the positive effects of social networks is upon us. The first wave of social technologies has firmly been planted in everyday experiences in both developed and developing economies. The world is rapidly becoming social and businesses need to be prepared.
The
social trend / figures
Improved communication and collaboration through social technologies could raise productivity of knowledge workers by 20 to 25 percent
Each week,
knowledge worker spend
70% of companies
are using social technologies
28 hours writing emails, searching for information, and collaborating
Global sector revenue:
$6.6 trillion per year.
Top value levers:
Marketing and sales
(value potential up to 24%) and
Social technology value potential:
customer service
$256-423 billion
(value potential up to 26%).
annually.
90%
of companies using social technologies report some benefits
06
Source: McKinsey Global Institute | The Social Economy: Unlocking value and productivity through social technologies, July 2012.
March 2013 | SOCIAL BUSINESS 07
The
The
Banks rely on Facebook than any other social media platforms (or at least it’s where people search for banks in social media), followed by YouTube and Twitter. For the short term, it makes sense for banks to focus on socially orientated customers via Facebook and YouTube than any other platform, while keeping an eye on upcoming platforms.
Gartner Hype Cycle for Social Software 2012 covers broad categories of social technologies: communication, conversation, or collaborative work software; and software that helps to search, filter, and analyze social content.
social trend / social media and banks
social trend / social technologies
Social Analytics Social Software Social Commerce Social Network Analysis Mobile Collaboration Client Gamification Cloud Collaboration Services Enterprise Internet Reputation Manegement Content Analytics Enterprise File Sharing Social Media Metrics Activity Streams Social Content Social Expertise Location and Management Cloud Synchronization Content Social Learning Platform Social Media Distribution
INTEREST OVER TIME The number 100 represents the peak search volume Search terms
bank facebook x
bank youtube x
bank twitter x
bank pinterest x
100
Expectations
Simultaneous Co-Editing Tools Security Applications Embedded in Social Media
Social TV
Social Media Monitors
Social BPM
Automatic Content Recognitiont No -Email Initiatives MDM and Social Data Persona Management
Social Profiles Customer-Centric Web Strategies
External Community Platforms
Mobile Social Networks Idea Management
Mass Collaboration
Internal Community Platforms Social Media Engagement Tools
80 Personal Subscriptions
Social Software Suites
60 40
Technology Trigger
20
Trough of Peak of Disillusionment Inflated Expectations
Slope of Enlightenment
Plateau of Productivity
Time January 2009
January 2010
January 2011
January 2012
Average
Less than 2 years Source: Google Trends | December 2012. Inspired by Financial Brand | Google Trends Reveal Banking Insights, Social Media Zeitgeist, October 2012.
08
2-5 years
5-10 years
Obsolete before plateau
Source: Gartner | Hype Cycle for Social Software 2012, July 2012.
March 2013 | SOCIAL BUSINESS 09
The
social trend / usage
users
Key Players
Smartphone Users
Facebook Twitter Google+ Weibo RenRen Linkedin Baboo Instagram Yelp Tumblr Flickr Orkut MySpace Foursquare Pintrest SoundCloud XING Friendster Path Get Glue
Smart Phone Users On your cell phone, do you regulary...
Ranking the Key Players From established players to red-hot phenoms, here is a look at how leading social media sites shake out in terms of userbase.
Based on those who own a cell phone and regulary use the internet on their phone. Pakistan not shown due to sample size. Source: PEW RESEARCH CENTER Q81e-h.
Smartphones & young people Source: http://blog.tweetsmarter.com
Smart Phone Users On your cell phone, do you regulary...
Social Networking Social Networking: Sharing Views on Music and Movies Most Popular Do you ever use social networking sites to sharew your views about...? Music and Community movies issues
Sports
Politics
Religion
Based on those who use social networking sites. Median % across 20 countries. Pakistan not included in calculation of median due to sample size.
10
Based on those who own a cell phone.
Source: PEW RESEARCH CENTER Q81e-h.
March 2013 | SOCIAL BUSINESS 11
The
social trend / users Do you use social networking sites?
Young people & social networking
Do you use social networking sites? Do you ever use social networking sites to share your views about...?
Young much more likely to use social networking % that use social networking (based on total)
*Respondents who do not use the internet. Based on total sample. “Don´t know/Refused” not shown.
Source: PEW RESEARCH CENTER Q77&Q79.
Source: PEW RESEARCH CENTER Q77&Q79.
12
March 2013 | SOCIAL BUSINESS 13
The
social trend / business models benefits of social business includes:
10 09
2. Leverage social to forecast and monitor
08 07
4. Derive customer insights
1. Co-create products
3. Use social to distribute business processes
6. Generate and foster sales lead
5. Use social technologies for marketing and communication/ interaction
7. Social commerce
9. Use social technologies to improve intra- or interorganizational collaboration and communication
10. Use social technology to match talent to tasks
8. Provide customer care via social technologies
06 05 04 03 02 01
Source: McKinsey Global Institute |The social economy: Unlocking value and productivity through social technologies, July 2012.
14
March 2013 | SOCIAL BUSINESS 15
The
social trend / business models By mashing up social media, work media, social listening, social work, social intelligence, and other social technologies, companies will innovate their business models by maximizing efficiency and/or by creating value. The world is already social and businesses must also be social.
See video
Social Business is blooming Early social business pioneers are reporting positive benefits as they begin to confirm the opportunities promised by social technologies. Together with other key trends (mobile, cloud, and big data), social business is beginning to offer some really interesting value propositions.
16
March 2013 | SOCIAL BUSINESS 17
Social Business,
Social Business,
the next social
trending higher
100 80
Make room for social business! According to Forrester, social business software will explode into a $6.4 billion business by 2016, growing from $600 million in 2010.
Social business is currently a “top of mind� issue. It is forecasted that this trend will hit its historical high in the latter part of 2013. We should continue to expect social business to be actively discussed for the short term future, making further inroads in the c-suite.
60 40 20 0
Average
INTEREST OVER TIME The number 100 represents the peak search volume social media
social business
social listening
INTEREST OVER TIME The number 100 represents the peak search volume
social intelligence
100
110
80
88
60
66
40
44
20
22
0
0 January 2009
January 2010
Sources: Forrester | Social Enterprise Apps Redefine Collaboration, November 2011. Google Trends | December 2012.
18
January 2011
January 2012
2005
2007
2009
2011
2013
Source: Google Trends | December 2012.
March 2013 | SOCIAL BUSINESS 19
Social Business, a c-suite view
Social Business,
CEOs are getting very interested in social business, almost 2x that of CIOs and CFOs
towards a definition
CEO / President / Managing director
28%
According to industry pundits, successful social business initiatives need to be holistic, as they are much more than just technology issues. Getting serious about social business requires a re-think about business outcomes and the social nature of people, melding together technology, culture, and values. Here are two definitions of social business from leading companies.
Other C-level executive focused on social media
CEO / Treasurer / Comptroller
CIO / Technology Director
14%
15%
Other C-level executive or equivalent
29%
17%
DACHIS
beginning to spread out to other industries FIGURE 1
BY INDUSTRY
THE IMPORTANCE OF SOCIAL SOFTWARE
The importance of social software is expected to rise by 250% within 3 years.
63%
Entertainment, Media and Publishing
37%
IBM “We define social business as embedding social tools, media, and practices into the ongoing activities of the organization. Social business enables individuals to connect and share information and insights more effectively with others, both inside and outside the organization. Social business tools facilitate engagement in extensive discussions with employees, customers, business partners and other stakeholders and allow sharing of resources, skills and knowledge to drive business outcomes.”
29%
IT and Technology Telecommunications / Communications
23%
Education
23%
Professional Services
19%
Consumer Goods
40%
“Social business draws on trends in technology (e.g., powerful mobile devices, widespread availability of high-speed Internet access, low cost of data storage), work (e.g., always-on culture, globalization), and society (e.g., propensity to share). Companies should care about social business because they can improve business outcomes ... The core principles touch on all areas of a business, whether for business-
to-customer engagement, employee-to-employee collaboration, or supply chain optimization. Making social business work requires focus on a company’s culture, connections, content exchanges, and measurement and analytics.”
17%
Govemment / Public Sector
14%
Other
14%
Healthcare Services
14%
18% Today
One year from today
Three years from today
Financial Services Manufacturing
Source: MIT Sloan Management Review & Deloitte | Social Business: What Are Companies Really Doing? 2012. 20
Energy and Utilities
10% 9% 7%
Sources: Dachis Group. IBM Institute for Business Value | Business of Social Business: What works and how it’s done, November 2012. March 2013 | SOCIAL BUSINESS 21
Social Business, @work
Create valued customer experiences
An overall framework for applying social Business
ENABLE THE SOCIAL ORGANIZATION results risk ■■ Manage the change
USES OF SOCIAL BUSINESS * TODAY NEXT TWO YEARS
■■ Measure
Promote events/marketing campaigns
■■ Address
Engage and listen.
71% 83%
Build the community.
Source: IBM Institute for Business Value | Business of Social Business: What works and how it’s done, November 2012.
Shift toward sales and service.
Generate sales leads and revenue
51% 74% Provide product and services support
46% 69%
Accelerate innovation
Capture new ideas from anyone. Use internal communities to innovate. Enable structured innovation efforts.
* Based on responses from individuals having personal experience with customerrelated social business activities Global (n=599).
USES OF SOCIAL BUSINESS * TODAY NEXT TWO YEARS
Enable more effective internal collaboration
57% 78%
61%
USES OF SOCIAL BUSINESS * TODAY NEXT TWO YEARS
58% 78% Obtain feedback from customers
46%
Enable customers to submit plans/solutions
40% 68%
22
35%
Monitor customer comments for new ideas
73%
* Based on responses from individuals having personal experience with social innovation activities (n=446).
Drive workforce productivity and effectiveness
Sell products directly to customers
Enable more effective collaboration between partners/suppliers
38% 72%
Increase knowledge transparency and velocity.
Enable customer interaction
Find and build expertise.
Enable vendor/partner interaction
Leverage capabilities beyond organizational boundaries. * Based on responses from individuals having personal experience with workforce-related social business activities Global (n=362).
39% 63%
28% 58% Leverage external talent (e.g., crowdsourcing)
24% 54%
March 2013 | SOCIAL BUSINESS 23
Business model view
Looking at social business from a business model point of view may help further understand the benefits and challenges associated with this trend. In this section, we conceptually explore the opportunities and risks of social business.
24
March 2013 | SOCIAL BUSINESS 25
Business model canvas: the pros Benefits & Opportunities of social software for business model innovation mainly center around Key Activities. Additional benefits also impact other building blocks of the business model, such as Value Propositions and Customer Relationships.
Key Partnerships
Key Activities
Facilitate cross boundary collaboration. Identify expertise. Develop employee skills. Harness distibuted knowledge. Increase employee engagement. Improve leadership effectiveness. Preserve institutional memory
Enable structured innovation efforts. Key Resources
Employee engagement with ext. parties. Supplier & partner engagement. Sources: MIT Sloan Management Review & Deloitte | Social Business: What Are Companies Really Doing? 2012. IBM Institute for Business Value | Business of Social Business: What works and how it’s done, November 2012. Alex Osterwalder and Yves Pigneur | Business Model Generation, 2010.
26
Cost Structure
Value Propositions
Customer Relationships
Marketing, branding & reputation management.
Discover emerging opportunities.
Innovation.
Shift towards sales & service. Capture new ideas from anyone.
Customer Segments
Customer service & audience management.
Engage and listen.
Internal innovation communities.
Channels
Build the community.
Revenue Streams
March 2013 | SOCIAL BUSINESS 27
Leading the way to social business Sales, marketing, customer service, IT, and product developments (functional business areas) are the leading users of social software in business organizations.
Adding it all up (some initial numbers)
Source: MIT Sloan Management Review & Deloitte | Social Business: What Are Companies Really Doing? 2012.
According to Social Business by Design, there are four possible ways to think about ROI of Social Business:
A GREAT DEAL SOMEWHAT
To what extent do each of the following functional areas drive the use of social software within your organization?
■■ Revenue
DON’T KNOW NOT VERY MUCH NOT AT ALL
MARKETING 47 %
26 %
9%
8%
10 %
SALES 30 %
29 %
9%
14 %
18 %
15 %
18 %
CUSTOMER SERVICE 29 %
28 %
10 %
INFORMATION TECHNOLOGY 28 %
32 %
8%
16 %
16 %
PRODUCT DEVELOPMENT 21 %
27 %
9%
18 %
24 %
20 %
24 %
HUMAN RESOURCES 18 %
31 %
8%
GENERAL MANAGEMENT 16 %
29 %
9%
24 %
23 %
OPERATIONS 13 %
25 %
9%
25 %
29 %
SUPPLY CHAIN OPERATIONS MANAGEMENT 8%
18 %
12 %
24 %
39 %
RISK MANAGEMENT 7%
19 %
11 %
25 %
39 %
FINANCE 6%
28
14 %
9%
27 %
44 %
Creation Improved global sales processes (10% sales revenue increase) Increased customer satisfaction (30% higher) & retention (20% higher loyalty) ■■ Connected Culture More rapid new-hire ramp-up (35% increase in access of expertise) Quicker location of expertise (30% faster access to expertise) Improved connections between departments and internal teams (35% increase in collaboration and 20% reduction in communication costs)
■■ Increased Productivity Shorter customer support cycles (30% faster support processes) Better investment decisions (20% increase in successful decisions)
■■ Cost
Reduction Self-service support cycles (20% decrease in communication costs and 15% decrease in operational costs) Overcoming distance and time zone barriers to collaboration (20% reduction in travel and communication costs)
Source: Dion Hinchcliffe and Peter Kim | Social Business by Design, 2012.
March 2013 | SOCIAL BUSINESS 29
Business model canvas: the cons The challenges and risks associated with social business are related to Value Propositions (brand reputation), Key Resources (proprietary information leaks), and Key Activities (worker productivity, data security/privacy, and unintended disclosure of company info). Since we are still relatively early in the trend, it makes sense that the negative version of the story has not materialized yet.
Key Partnerships
Key Activities
Worker productivity. Data security and privacy. Unintended disclosure of company information
Value Propositions
Customer Relationships
Customer Segments
Brand reputation.
Key Resources
Channels
Proprietary information leaks
Sources: McKinsey Global Institute | The Social Economy: Unlocking value and productivity through social technologies, July 2012. Alex Osterwalder and Yves Pigneur | Business Model Generation, 2010.
30
Cost Structure
Revenue Streams
March 2013 | SOCIAL BUSINESS 31
Barriers: external
Deeper dive into social business models
External barriers impeding social software adoption: Composite Score *
5,036
Risk or security concerns
2,077
Concern over regulators´ stance towards social media
For more detailed information related to social business and its impact on business and business models, please see the following reports:
4,035
Insufficient customer demand or need
1,728
Absence of industry standards
■■ Deloitte
2,410
Legal issues
1,474
Recessionary economy
■■ IBM
964
Lack of shareholder support
Barriers: internal
(MIT Sloan Management Review) | Social Business: What are they really doing?, 2012. Institute for Business Value | The Business of Social Business: What works and how it’s done, November 2012.
■■ McKinsey
Global Institute | The Social Economy: Unlocking value and productivity through social technologies, July 2012.
Internal barriers impeding social software adoption: Composite Score *
3,050
Lack of management understanding
1,306
Lack of a knowledge sharing culture
2,314
No strong business case or proven value proposition
1,276
Lack of a robust strategy
2,087
Too many competing priorities
1,226
Fear of challenging established norms and practices
1,885
Fear of lack of control
845
Lack of implementation skills
1,600
Security concerns (e.g., intellectual property leakage)
824
Employee mistrust or resistance
1,532
Lack of senior management sponsorship
584
Lack of policies or governance processes
1,349
Fear of employee abuse
386
Lack of incentives
(e.g., wasting time)
Source: MIT Sloan Management Review & Deloitte | Social Business: What Are Companies Really Doing? 2012.
32
March 2013 | SOCIAL BUSINESS 33
The early adopters
SOCIAL BUSINESS PRACTITIONERS
Alcatel-Lucent
Global
snapshots Social business is currently a hot topic. In this section, we’ll take a quick look at some early adopters of social business, followed by fly-by of some of the hottest social technology companies in the work media and social media space.
“The Jive platform was rolled out April 6. Lowe initially sent an e-mail about the service to just 125 people in the company, giving them each a log-in and inviting them to join. Membership spread from there, and Alcatel-Lucent now (July 15th, 2010) has nearly 20,000 registered Jive users. According to Lowe, about 200 to 400 people join every day. On any given day, about 1,000 people use the system in one way or another.”
with everyone that touches your brand. If you don’t do that, I don’t know what your business model is in five years.” Source: ZDNet | Social Business Success: Burberry, February 2012.
News Corporation
“BASF has enumerated the benefits they believe they have received from their internal social business initiative. These include faster and easier access to experts, increases in the value of existing knowledge, higher worker efficiency, better collaboration, reduction in e-mail overhead, and better alignment with younger workers.”
“[We saw] these trends coming together at a very macro level around what workplaces were going to be like in 2020, where internal communication was moving and the rapid rise of social networking. Through putting those three themes together, there was a really big ‘aha!’ moment, in that social technology is changing the world and it will begin to challenge the way business gets done. Around the same time, we were also hearing requests from our employees – they were asking to connect with people in other parts of our businesses with similar jobs to theirs so they could learn from each other and innovate faster.”
Source: ZDNet | Enterprise 2.0 Success: BASF, February 2012..
Source: ZDNet | Enterprise 2.0 Success: News Corp., February 2012.
Source: ZDNet | Enterprise 2.0 Success: Alcatel-Lucent, January 2012.
BASF
Burberry
Extra: Social Business Index
“The experience would be that a customer would have total access to Burberry, across any device, anywhere. And they would get exactly the same feeling of the brand, feeling of the culture, regardless of when, where, how they were accessing the brand. Everyone now can come into Burberry World the journey and mission that Burberry is on. And for any CEO that is skeptical at all: You have to create a social enterprise today. You have to be totally connected
To see how other companies are faring with social business, check out the following index. “The Social Business Index analyzes the effectiveness of strategies and tactics organizations employ to engage the market through social channels. At launch, the Social Business Index analyzes signals from over one hundred million social sources globally and analyzes the performance of the largest global companies and thousands of those companies’ brands.” Source: Dachis Group | Social Business Index., December 2012.
34
March 2013 | SOCIAL BUSINESS 35
Yum Brands “While Yum! Brands itself isn’t necessarily a household name, its three top brands -- Taco Bell, KFC, and Pizza Hut -- are instantly recognizable around the world. The international fast food giant is truly global with over 330,000 workers in 110 countries with a combined annual revenue in excess of $11 billion. Starting several years ago, the company realized it had significant challenges in being highly geographically distributed. Such dispersion created silos of knowledge and know-how, something that is potentially disastrous in the highly competitive industry of food service.” Source: ZDNet | Enterprise 2.0 Success: Yum! Brands., February 2012.
Cemex “Designed to innovate and help make the company more efficient and agile by letting employees or groups of employees with similar objectives share opinions, thoughts, information, experience, knowledge and best practices.” Source: ZDNet | Social Business Success: Cemex, February 2012.
SAP: SAP Community Network SAP Community Network (SCN) is a professional social network that orchestrates collaboration between SAP customers, partners, employees and experts. SCN has more than 2 million members.
See video
36
WORK MEDIA
Yammer
IBM
The following work media platforms were analyzed in five different parameters by GigaOm: short-term work relationships, microtools, networks>processes, consumerized IT, and social communications. The benchmarked companies are presented in the order, from the highest to the lowest scores. Detailed results of the benchmark can be found at GigaOm Pro, “Sector RoadMap: work media tools in 2012, published in September 2012.
“Yammer is an Enterprise Social Network that brings together employees, content, conversations, and business data in a single location. Built for the enterprise and loved by users, Yammer empowers employees to be more productive by enabling them to collaborate in real-time across departments, geographies, and business applications. Employees can create groups to collaborate on projects and share and edit documents. It is a new way of working that fosters team collaboration, employee engagement, and business transformation.
“Leading in today’s business world means knowing how to work as a social business. It starts with integrating social technology into your most critical business processes. Social business technologies can help you activate your workforce to improve productivity and delight your customers to create advocates and increase revenue.”
Source: GigaOm Pro | Sector RoadMap: work media tools in 2012, September 2012.
Source: CrunchBase | Socialcast, December 2012. Socialcast | December 2012.
With a Freemium model, Yammer enables employees to voluntarily adopt the service. A premium version is available to paying customers and includes additional administrative and security controls, integration with other applications, priority customer service, and a dedicated customer success manager. More than 5 million users, including employees from 85 percent of the Fortune 500, have adopted Yammer’s Software-as-a-Service solution.” Source: CrunchBase | Yammer, December 2012. Yammer | December, 2012.
Socialcast (VMWare) “Socialcast is a leading provider of Enterprise collaboration software to facilitate real-time employee communication while analyzing the social graph for measures of productivity. Socialcast is deployed either on-premise or on-demand using activity streams to effectively accelerate information awareness amongst employees.”
Source: IBM | Social Business, December 2012.
Podio (Citrix) “Combining hundreds of specialized and flexible work apps with messaging, tasks, reporting, workflow and contact management, Podio lets you build and shape the online workplace most fitting to your role. It eliminates scattered, unorganized work routines, and replaces multiple products from different companies with a single environment and a single login. Currently based in Copenhagen, Podio is building a multinational team of German, French, British, and Danish employees. Thomas Madsen-Mygdal is chair of the board of directors. Tommy Ahlers, formerly of Zyb, is CEO and investor.” Source: CrunchBase | Podio, December 2012.Podio | December, 2012.
SAP “Delivering on its social strategy, SAP introduced two new offerings: the SAP Jam social software platform and the SAP Social OnDemand solution. SAP Jam enables today’s workers to drive rapid business results by integrating social capabilities into their applications and daily business processes, eliminating social silos. SAP Social OnDemand transforms soMarch 2013 | SOCIAL BUSINESS 37
cial media conversations into rich business insights. The solution helps marketing and customer service organizations better engage with customers to increase brand loyalty, manage reputational risks and capitalize on opportunities.” Source: SAP | Press Release (31 October 2012), October 2012.
Oracle “Businesses are becoming more social every day. It’s not a matter of when to become a social business, but how to become a social business. To accomplish this, CIOs need to help create engaging user experiences that integrate yesterday’s enterprise applications with today’s social technologies. Architected correctly, companies can solve business problems more quickly, resulting in increased innovation and greater sales.” Source: Oracle | Social Business, September 2012.
Huddle
Jive
Chatter
“Established in 2006, Huddle creates cloud-based collaboration and content management software for the enterprise. Its patent-pending intelligent technology locates and recommends valuable information to users, with no need for search. Huddle is used by more than 100,000 business and government organizations worldwide, including the central US and UK government, AKQA, HTC and Kia Motors, to securely store, share and collaborate on content with people inside and outside of their organization. Huddle can be accessed online, on desktops and on the move with BlackBerry, iPhone and iPad apps.
“Jive is the largest and fastest growing independent vendor in the Social Business Software market. Jive allows companies to engage employees, customers, and the social web. Just as social technologies have changed our personal lives, Social Business is changing how enterprises get work done. The company was founded in 2001, with its headquarters in Palo Alto, CA and offices in Portland, OR; Boulder, CO; Brentford, United Kingdom; and Frankfurt, Germany.
“Chatter is a social platform that integrates with Salesforce’s infrastructure and development platforms.
The company is privately held and backed by venture capital firms DAG Ventures, Eden Ventures, Matrix Partners and Jafco Ventures.” Source: CrunchBase | Huddle, December 2012. Huddle | December 2012.
Chatter is a social network for the company. It give users access to real-time information about what’s going on in the company.” Source: CrunchBase | Chatter, December 2012. Salesforce Chatter | December 2012.
Jive combines the power of community software, collaboration software, social networking software, and social media monitoring offerings into an integrated platform. The company is focused on solutions to increase team and work productivity. Jive makes it easy for groups to brainstorm, share ideas and see what everyone is working on. The product includes team member blogs, wiki-docs for group editing and discussion tools. Recent versions include video, analytics, and social media monitoring. Jive is backed by Sequoia Capital and KPCB.” Source: CrunchBase | Jive, December 2012. Jive | December 2012.
Cisco “The new business collaboration workspace is a platform of communications and collaboration capabilities that can be delivered to every user, regardless of their location or device. What is new is that this new business collaboration workspace is inherently: ■■ Mobile:
Users access the tools and information when and where they need them ■■ Social: Enterprise social software and collaborative platforms connect users ■■ Visual: The addition of video enhances communications ■■ Virtual: Deliver applications and data securely and reliably from clouds” Source: Cisco | Collaboration, December 2012. 38
March 2013 | SOCIAL BUSINESS 39
Other social platforms
Social media companies are continuing to evolve. There are seven major business categories for social media: platform, publishing, sharing, playing, networking, buying, and localization. For each category, we list some of the leading brands. Along with devices (PCs, SmartTVs, Smartphones, tablets, etc.), connectivity, and interactions, these categories make up the social media ecosystem.
Social business is a concept made up of many different parts. For now, the world is very familiar with social media and work media, the “good looking” twins in the social business family. However, there are other lesser known siblings in the space which are poised to make some impact further down the road. The up and coming technologies are social listening, social intelligence, and crowd labor technologies. Also, we have listed some “older,” precursors: ERP, Enterprise 2.0, etc.
SOCIAL MEDIA
Source: Fred Cavazza | Social Media Landscape 2012, February 2012.
SOCIAL LISTENING
COLLABORATION
SOCIALIZING ERP
Platforms
Playing
■■ Radian6
■■ Oracle
■■ Electronic
■■ Twitter ■■ Google+
(Salesforce)
■■ RightNow ■■ Collective ■■ Vitrue
(Oracle)
■■ Skype
■■ LotusLive
Internet (Oracle)
■■ Box.net
■■ SharePoint
■■ Huddle
■■ Cisco
■■ Zoho
■■ SAP
(Oracle)
■■ Cognos ■■ Kosmix
(App & Drive)
Insight (IBM) (purchased by Walmart)
Connections
Quad StreamWork
Buying
Publishing
■■ Hunch
■■ WordPress
■■ Zynga
■■ TripAdvisor
■■ Wikipedia
■■ Playdom
■■ PowerReviews
■■ Blogger
Arts
■■ Playfish
■■ BazaarVoice
■■ TypePad
Sharing
■■ Kobojo
■■ Polyvore
■■ Tumblr
■■ Digital
■■ Blippy
■■ Quora
■■ Baasket
■■ Posterous
Chocolate ■■ Pop Cap ■■ hi5
CROWD LABOR
ENTERPRISE 2.0 PLATFORM
■■ Spotify
■■ Clickworker
■■ Jive
■■ CloudFactory
■■ Moxie
■■ Dailymotion
Networking
■■ DisMoiOu
■■ CrowdComputing
■■ Clearvale
■■ Vimeo
■■ Viadeo
■■ SCVNGR
■■ CrowdFlower
■■ NewsGator
■■ Slideshare
■■ Foursquare
■■ CrowdSource
■■ Yammer
■■ Scribd
■■ myYearbook
■■ Plancast
■■ Houdini
■■ Traction
■■ Flickr
■■ NetLog
■■ Yelp
■■ Humanoid
■■ Socialtext
■■ Digg
■■ Classmates
■■ Path
■■ MobileWorks
■■ Chatter
■■ Delicious
■■ Tagged
■■ Samasource
■■ blueKiwi
■■ Servio
40
Systems
(acquired by CloudFactory)
(formerly CloudCrowd)
■■ YouTube
■■ Wikia
Localization
■■ Badoo ■■ MySpace
March 2013 | SOCIAL BUSINESS 41
BBVA & Social Business
Not only can Social technologies be applied to customer-facing applications (social media), they may be used for employeefacing and third-party facing applications. In 2012, BBVA made headlines by adopting Google Apps for its 110,000 employees; transforming the way work is done in the enterprise, and now, BBVA is launching Yo Soy Empleo, using social technologies to collaborate with thirdparties to create value for the community.
42
Social networks are much more than Facebook, Twitter, Google+ or LinkedIn. In essence, they are communities of people gathered around common interests. Overall, BBVA’s communities in social networks exceed four million users, grouped around themes in which the bank can add value to the conversation. Thus, the objectives of notoriety and affiliation with the brand on the Internet improve - but we can’t just stop there. The next step is to ensure users of our communities benefit directly from their participation in them, in a way that is genuinely useful to the business of our clients. If they grow, we also grow. Under this premise we have developed “Yo soy empleo” (I am employment), a community that allows its members to combine efforts with a clear objective: to generate jobs in Spain.
T
he community aims to match demand with supply, to link those companies that in spite of the crisis continue to grow with those individuals who are seeking for a job in these complicated times. BBVA’s contribution to the community is not just limited to the creation of a social platform connecting both parts - it includes an incentive scheme for new hires, with direct financial support for each job created, a business advisory service and a training plan participated by the country’s leading business schools. In other words, the aim is to bring together several existing communities that share a same interest - the creation of jobs -, and try to find common solutions which may benefit all their members. Therefore, we use typical social web tools to obtain a greater benefit for the community, with a system that allows to join efforts in order to obtain a common asset. Social platforms are nothing but a meeting point. In this case we believe that gathering in a same virtual place all the parties involved in the generation of jobs and providing differentiated support to help achieve the ultimate goal can be beneficial for everyone. This is not something BBVA is managing alone, since the proper performance of a community depends on all its users. That is why, from the beginning of the project, “I am employment” counts with the implication of companies that demand workforce; of Infoempleo, as facilitator in the recruitment processes; of leading business schools, for the training plans; of BBVA Empresas, for the advisory service, etc. Once launched, anybody willing to contribute to meet the objective of generating jobs will have the door of the community open in Yosoyempleo.es.
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The “social” trend is part of something bigger ... much bigger: the coming convergence of social, mobile, cloud, and big data. Many industry analysts are envisioning major disruptions caused by the coming together of these four major trends, which will change the way we live, work, and play. Whether it is known as the “Nexus” (Gartner) or the “3rd Platform” (IDC) or by any other name, the ultimate mashup is set to shine in the era of the customer-centricity. When peeking into the convergent future with a social focus, keep the following in mind: March 2013 | SOCIAL BUSINESS 45
New mindsets
System of records > engagement
Leaders must lead the change from industrial-based models of productivity (product-centric) towards knowledge-based models of productivity (customer-centric).
FROM
This little, short history of computing shows us that the “know-how� (or knowledge) in the current computing environment is found in conversations, social conversations. In this era, businesses must effectively manage these conversations to create new or more value and/or to maximize efficiency.
IT leaders will also need to adopt new mindsets
TO Years
Enforce enterprise standards
Planned rollouts based on roadmaps
Top-down, efficiency and consistency-oriented
Labor-capital trade-offs. IT productivity/ROI efficiency, throughput
FOCUS OF IMPACT
Patterns of interactions, user models, how work really gets done, community formation Communities of work, social networks, intra-/extracompany, customers
POLICY APPROACH
Proliferate the most adopted enabling technologies
TECHNOLOGY DEPLOYMENT
Experiment, scale, and deply based on usage and adoption
DECISION MAKING
ECONOMICS OF IMPACT
source: McKinsey Global Institute | The Social Economy: Unlocking value and productivity through social technologies, July 2012.
User-centric, usage- and effectiveness-oriented
Labor AND capital, total factor productivity, effectiveness, outcomes
1960-1975 Mainframe
Systems of Record
Formal structures, departments, functions, hardwired processes
UNDERSTANDING OF BUSINESS
A batch transaction
Best known company
Content management focus
IBM
Microfilm
Digital
Image Management
1975-1992
A departamental process
Equipment
1992-2001
A document
Microsoft
Document Management
2001-2009
A web page
Content Management
2010-2015
A conversation
Social Business Systems
Mini
PC
Systems of Engagement
Transaction processes. structured and routine workflows
Typical thing
Internet
Social and Cloud
source: Geoffrey Moore, TCG Advisors & AIIM | Systems of Engagement and the Future of Enterprise IT: A Sea of Change in Enterprise IT, 2011. 46
March 2013 | SOCIAL BUSINESS 47
The Ten Tenets of Social Business
Nine insights of social enterprise
These tenets are the most succinct and useful statements of what social business is (or should be), free of jargon or technology, courtesy of social business experts: Dion Hinchcliffe and Peter Kim.
Allen Blue (LinkedIn), Jon Froda (Podio) and Tony Zingale (Jive Software), the rock stars of the social business world, discuss their insights of the social enterprise.
1
Anyone can participate.
2
Engage the right community for the business purpose.
8
Listen to and engage continuously with all relevant social business conversations.
source: Dion Hinchcliffe and Peter Kim | Social Business by Design, 2012.
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3
Create shared value by default.
5
1“
While participation is self-organizing, the focus is on business outcomes.
6
Participation can take any direction. Be prepared for it, and take advantage of it.
9
The tone and language of social business are most effective when they’re casual and human.
email and spreadsheets are powering the work of today.”
4
Enlist a large enough community to derive the desired result.
4“
7
Eliminate all potential barriers to participation. Ease of use is essential.
10
The most effective social business activities are deeply integrated in the flow of work.
The number one reason people leave their organization is because they don’t feel connected.”
7
“Every technology
is a transitional technology. It’s just a matter of what transition you’re in middle of.”
2“
The conversation itself is the way the work gets done in the enterprise.”
5
At work, “we don’t want to cc: everyone on a email, because it’s rude. But we should. It’s not a secret.”
8
As the power of the individual increases, company culture is going to be the single most important factor to success.
3“
15% of all people searches on LinkedIn are for their own colleagues.”
6“
Users are people. No matter where they are, they’re just people.”
9
Your company should have a six- to 12-month plan and a 10-year plan. Nothing else matters.
source: ZDNet | The Social Enterprise: nine insights, November 2012.
March 2013 | SOCIAL BUSINESS 49
In depth A list of links to other useful tools and resources that you may find useful as a supplement to the information offered on the ‘Social Business’ report.
Books & Publications
On the Web Badoo badoo.com Bank Systems & Technology | Social Business: 4 Ways Socia Media is Transforming Banking, October 2011. banktech.com Blogger blogger.com
Foursquare foursquare.com
Scribd scribd.com
Bloomberg | Dell President’s Advice to CEOs: Get Social, November 2012. go.bloomberg.com
GigaOm | Pinterest paves the way for new business platform with brand options, November 2012. gigaom.com
Slideshare slideshare.net
Fred Cavazza.net | Social Media Landscape 2012. fredcavazza.net
Google Trends google.es
Cisco Collaboration cisco.com
The Guardian | How Social Business is Changing the Way We Work, December 2012. guardian.co.uk
CMS | The Pursuit of Social Business Excellence Is Not About Technology, November 2012. cisco.com Dachis Group dachisgroup.com Dachis Group | Social Business Index socialbusinessindex.com
Forrester | Social Enterprise Apps Redefine Collaboration, November 2011.
Charlene Li | Open Leadership: How Social Technology Can Transform the Way You Lead, May 2010.
Delicious delicious.com
Forrester | The Social CIO, August 2012.
McKinsey Global Institute | The Social Economy: Unlocking value and productivity through social technologies, July 2012.
Facebook facebook.com
GigaOm Pro | Sector RoadMap: work media tools in 2012, September 2012. GigaOm Pro | Sector RoadMap: crowd labor platforms in 2012, November 2012. GigaOm Pro | Listening Platforms: finding the value in social media data, September 2012. GigaOm Pro | Future of Work Platforms, February 2011. David Gray | The Connected Company, September 2012. Dion Hinchcliffe and Peter Kim | Social Business by Design, 2012. Huffington Post | What’s the Difference between Social Media and Social Business?, December 2012 IBM | The Social Business: The Advent of a New Age, April 2012.
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McKinsey Quarterly | Demystifying Social Media, April 2012. McKinsey Quarterly | How ‘Social Intelligence Can Guide Decisions,’ November 2012. MIT Sloan Management Review & Deloitte | Social Business: What Are Companies Really Doing? 2012. Geoffrey Moore, TCG Advisors & AIIM | Systems of Engagement and the Future of Enterprise IT: A Sea of Change in Enterprise IT, 2011. Nielsen | State of the Media: The Social Media Report 2012, 2012. Alex Osterwalder and Yves Pigneur | Business Model Generation, 2010. Pew Research Center: Global Attitudes Project | Social Networking Popular Across Globe, December 2012.
SAP Social Business blogs.sap.com SAP | SAP Community Network, December 2012. facebook.com/sapcommunitynetwork
IBM Institute for Business Value | Business of Social Business: What works and how it’s done, November 2012.
Gartner | Hype Cycle for Social Software 2012, July 2012.
Salesforce Chatter salesforce.com
Forbes | The Rise of Social Enterprise, July 2012. forbes.com
Sandy Carter | Get Bold: Using Social Media to Create a New Type of Social Business, September 2011.
Gartner | Hype Cycle for Business Use of Social Technologies 2012, July 2012.
Forbes | The Move from Systems of Record to Systems of Engagement, August 2012. forbes.com
Daily Motion dailymotion.com Digg digg.com Financial Brand | Google Trends Reveal Banking Insights, Social Media Zeitgeist, October 2012. thefinancialbrand.com Financial Post | Social Business Changes the Dynamics of Collaboration, November 2012. business.financialpost.com Flickr flickr.com Forbes | Executives: Get Social or Get Out, November 2012. forbes.com Forbes | How to Jump to a Social Business Model, December 2012. forbes.com Forbes | Rethinking the Customer Journey in a Social World, November 2012. forbes.com Forbes | Social Business Enlightenment, November 2012. forbes.com
Google+ plus.google.com
Harvard Business Revew Blog | How to Find New Competitive Knowledge in Social Media, December 2012. blogs.hbr.org Harvard Business Revew Blog | Innovation Isn’t Tied to Size, but to Operating Rules, October 2012. blogs.hbr.org Harvard Business Revew Blog | Social Media Will Play a Crucial Role in the Reinvention of Business, November 2012. blogs.hbr.org Huddle huddle.com IBM Social Business -01.ibm.com InformationWeek | 10 Signs You’re Not a Social Business, December 2012. huffingtonpost.com Instagram instagram.com Jive jivesoftware.com LinkedIn LinkedIn.com Oracle Social Business oracle.com Path path.com Pinterest pinterest.com Podio company.podio.com Posterous posterous.com
Socialcast socialcast.com Spotify spotify.com TechCrunch | Another Social Media Inbox? Source Metrics Says This One’s All About ‘Actionable Mentions’ ..., November 2012. techcrunch.com TripAdvisor tripadvisor.es Twitter twitter.com Tumblr tumblr.com TypePad typepad.es Vimeo vimeo.com Wikia wikia.com Wikipedia wikipedia.org WordPress wordpress.com Yammer yammer.com Yelp yelp.es YouTube youtube.com ZDNet | Enterprise 2.0 Success: Alcatel-Lucent, January 2012. zdnet.com ZDNet | Enterprise 2.0 Success: BASF, February 2012. zdnet.com ZDNet | Enterprise 2.0 Success: News Corp., February 2012. zdnet.com ZDNet | Enterprise 2.0 Success: Yum! Brands., February 2012. zdnet.com ZDNet | Social Business Success: Burberry, February 2012. zdnet.com ZDNet | Social Business Success: Cemex, February 2012. zdnet.com ZDNet | The Social Enterprise: nine insights, November 2012. zdnet.com
Quora quora.com
March 2013 | SOCIAL BUSINESS 51
Trending issues In this section, readers will find summaries of the most relevant news of selected topics that have been published over the course of the month based on its relevance to the Banking industry. The summaries were prepared by the editorial board. Further information is made available for each given topic.
New Formats
Merge: the “product offering of the future”
Mobile Banking
A crowd-sourced money dispensing system??? Apple recently filed for a patent that essentially allows nearby iTunes users to become cash-dispensing systems. The system is entitled, “Ad-Hoc Cash Dispensing Network” and would allow Apple users provide cash to other users, splitting the “service” fee with Apple.
Generally, mobile banking is “thought of as a new channel or product, yet it is actually a reiteration of an old product.” According to one web strategist, banks should find ways to bring the 2 world together. He suggests:
Source: psfk.com
■■ Consolidate
vendors ■■ Combine Marketing Platforms ■■ Make Desktop Multi-Device Compatible ■■ Fully Mobilize Desktop Features ■■ Re-think Desktop Banking Design ■■ Unify the Visitor Experience
Social Business
Source: thefinancialbrand.com
Core Banking Platforms
“Debt” is to blame for software glitches Lloyd’s Faster Payment System was in name only, as glitches caused delays, andPayPal’s Instant Payment charged customers 2x. Other big name institutions have suffered software related failures including, NatWest; RBS; and notably Knight Capital, whose software anomalies decimated its balance sheet. So what’s going on? A technology guru attributes the outages to “technical debt,” the price for cutting corners where unfixed code come back to bite.
Trading Places: Apple and IBM According to Mark Fidelman, a contributor to Forbes, over the last 25 years, Apple and IBM seem to have switched roles: “Big Blue” is becoming “Big Open” (and less “Big Brother”), while Apple is more like “Big Brother,” given their tight, wall-gardened approach. At the end, Mr. Fidelman believes that “you can no longer create great products alone” and the approach that IBM is taking seems to make more sense. Source: forbes.com
Source: bbc.co.uk
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March 2013 | SOCIAL BUSINESS 53
Trending issues Mobile Payments
Brands & Branding
Mobile Payment Market in 2013
The 5 Best Ads of Super Bowl XLVII, according to AdWeek
The US mobile payment market is projected to reach $90 billion transactions in 2017, an 48% compounded annual growth rate from 2012’s $12.8 billion. According to Fool.com, here are the key stocks to watch in in 2013:
5. Taco Bell: “Viva Young” - Agency: Deutsche 4. Oreo: “Whisper Fight”/”Dunk in the Dark” - Agencies: Wieden + Kennedy, 360i & Media West 3. Samsung: “The Next Big Thing” - Agency: 72andSunny 2. Budweiser: “Brotherhood” - Agency: Anomaly 1. RAM: “The Farmer” - Agency The Richards Group
■■ Square
(Starbucks): in November, Square announced was handling $10 billion in annual transactions. ■■ PayPal (eBay): PayPal CEO expects to see over $20 billion in annual sales volume in 2013.
Source: adweek.com Source: fool.com
Customer-Centricity
97% of senior executives believe that Customer Experience (CX) is critical to success A recent survey comissioned by Oracle, “Global Insights on Succeeding in the Customer Experience Era,” revealed that although 93% of senior executives stated that CX is a top 3 priority in the next two years. However, only 37% of firms have CX initiative in progress and 20% opine that their program is advanced. Brian Curran, Oracle’s VP of Customer Experience offers his top 5 tips on how to get started: ■■ Span
silos for a consistent, cross-channel experience serious about mobile ■■ Personalize interactions ■■ Get social ■■ Empower customers & employees ■■ Get
Source: informationweek.com
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Crowd Finance
Crowd-funding, Chinese style “Tencent’s platform breaks new ground in China and could become a significant source of investment and publicity for social entrepreneurs”. In China, due to legal restrictions, funds cannot be solicited from individuals. In order to satisfy the need for funding, Tencent is offering a platform that allows social enterprises and NGOs to share proposals and “tweets” (via Weibo) for support. “Each time a member of the public re-tweets a message, the beneficiary is credited with .07€ which will be donated by Tencent’s charity foundation.” Source: guardian.co.uk
March 2013 | SOCIAL BUSINESS 55
Trending issues App Ecosystem
New Banking Experience
Free Apps! Everyone is doing it ...
Branches to Serve as “Living Labs”
For most, the dominant business model for the app economy is “Free”. It helps the company to ramp-up users in a hurry. However, it doesn’t offer a lot of flexibility for its business model: companies either end-up selling themselves or begin selling ads. A recent article in Verve talks about a “sustainable app development model: “the future of app development is to give away as much value as possible and empower those who receive more value to pay more for it.” An app business model should show how it can create, deliver, and capture value in a sustainable way.
For Vancity, two new branch prototypes serve to bring “the brand and business model alive” by continually evaluating new retail approaches, new products and new merchandising strategies. Vancity’s COO points out, “As we learn from these changes, we hope to replicate successes in other branches over time.” Source: thefinancialbrand.com
Gadgetology
Apple, please give me a phablet! Phablets handsets sales are expected to grow to 230 million units in 2015, exploding from a base of 27 million in 2012. Recently, two prominent analysts are pointing out that Apple is “leaving money on the table” by not offering something that consumers want: a bigger screen. It would be so phabulous. Source: appleinsider.com
Big Data
Big Data or Big Brother? Big Data is believed to be a key tool to solve some of the world most pressing problems, such as the ability to spot flu trends earlier; and also, to increase value to both customers and companies. However, skeptics are fearful that Big Data really means Big Brother. Recently, PayPal’s co-founder recent speech warned about the dangers of big data: people can be “just resources that are not being utilized efficiently”. Something to think about as Facebook has 1 billion users. Source: gigaom.com
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March 2013 | SOCIAL BUSINESS 57
Trending issues Future of Work
Work in the Future: friendlier, healthier, and more efficient Work, as we know it, is changing: “Quantified Employees, Pop-Up Workplaces & More Telepresence.” Recently, Fast Company reviewed PSFK’s report, and shares their key takeaways: Start-up Training & Skills Marketplaces Office Feedback Culture ■■ Quantified Workers ■■ More Social Communication Tools ■■ Telepresence Proliferates ■■ The Pop-up, Healthy Workplace ■■ ■■
Source: fastcoexist.com
DIY
Offering a 5 year old boy, a helping hand; the DIY way Two DIYers, Van As and Ian Owen, manufacture an open-source, lightweight, personalized prosthetic hand for a 5 year old boy, who was born without fingers on his right hand; for less than $150. “The 3-D parts were made possible by Makerbot, which donated two 3-D printers, one each for Van As and Owen so they could swap CAD files as they refined the designs.” Liam now can “hold a basketball, and even pick up small things like coins by activating his new lightweight hand with a bend of his wrist.” The duo is currently raising funds to further develop the Robohand.
Technology trends The following section outlines the upcoming technologies that will change everything, with predictions on what may come of them in financial industry.
Dashlane - Express checkout One of online shoppers’ biggest complaints is that checking out takes too long. Online seamless payment processes are considered one of the main goals since V.me were launched in 2012. The idea of avoiding a tedious checkout has a great acceptance, and there are some tools that are helping to make purchase processes fast and easy, similar to the non-digital world (remember Digital is NOT different).
Dashlane is going further than V.me being more than just a seamless digital wallet. Considered one if the Innovation of the Year Dashlane launched a tool for doing checkout almost instantaneously, filling automatically all the fields required, all the passwords needed, the payment information of credit cards, managing multiple identities, addresses, and payment information in a extremely secure way, using any device sync with the app.
Source: popsci.com
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March 2013 | SOCIAL BUSINESS 59
Technology trends
I
ts main feature is storing safely all our account information of all the web services in which we are already signed up. We can access to these accounts instantaneously since Dashlane will log in without press any button. All the information and passwords saved in Dashlane are protected by a master password, that is only saved and encrypted locally, not by dashlane (and it can never be recovered if it’s forgotten!!), by using AES-256 encryption method,used by military, financial and government institutions. Dashlane also creates new encrypted accounts credentials and generate secure passwords for services not used before, and learns a user’s habits for frequently visited sites, filling in password, payment
Beyond Passwords
information, and shipping specs with nearly twice the accuracy of its competitors. All these features make the checkout process much more easier than any other tool, and it can be completed in almost one click, also storing the purchase information and the bill in the app for you to track your expenses.
We are going towards a world in which we will connect to our laptops, tablets and smartphones with our biometric features. James Bond’s technology is no longer science-fiction. Our patterns are data.
Watch the video in youtube to see how it works:
This start-up, with HQ in Paris and NY, was launched in 2009, and received $5Million funding (serie A), will be demoing at Finovate Europe next month presenting this express checkout process. We will be tuned, it sounds interesting (and it works!).
IBM Research predicted back in December 2011 that in five years passwords would be replaced by biometric recognition processes such as digital fingerprints, retina and iris readers, voice and the geometry and veins of the hands.
B
ut Intel has already created a tablet with a new software including a sensor able to recognize the palm vein pattern of a person just from a simple wave of the hand.
See video Source: Sydney Morning Herald
Sridhar Iyengar, director of Security Investigation in Intel Labs, showed this technology at the Intel Developer Forum 2012. When the device recognizes the person, all services are enabled, granting access with no need of passwords. The mechanism has accelerometers which detect if the user has moved away from the device and automatically block the session and cut the access.
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March 2013 | SOCIAL BUSINESS 61
Technology trends
Event
Biometric systems for security because…
transactions done through smartphones, in continuous growth. Sources:
… traditional identification processes are vulnerable to cyber-attacs. The number of attacks has increased during the last year, as seen in the graphic obtained from RSA’s monthly report on online fraud.
IBM Research | IBM 5 in 5: Biometric data will be the key to personal security.
Experts predict that the sales of biometric processes will grow at an annual rate of over 22 percent, and revenues will reach 9 trillions in 2014. ATMs with palm vein pattern recognition processes were launched in Japan and Brazil at the end of 2011. It is expected that the banking sector will introduce biometric systems in the medium to long term to ensure greater security against spyware and malware on online banking due to the large increase of
Ian King. 13/09/2012.
David Nahamoo. 19/12/2011. Bloomberg | Intel seeks to eliminate computer passwords with wave of hand.
ebanking | Intel, la palma de tu mano, será tu nueva contraseña. 16/09/2012. RSA Online Fraud Reports.
Social Business Along with other key trends, social business is beggining to offer some interesting and valuable proposals. The first “social” wave is now consolidating and enterprises have to be ready. Make sure you don’t miss it!
September 2012. Deutsche Bank | Homo biometricus. Biometric recognition systems and mobile internet services. AThomas F. Dapp.
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Some of the corporations that have begun to develop social business policy, such as IBM or LinkedIn, will share their experiences along with BBVA’s.
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On March 20th, at the BBVA Innovation Center we will analyze this increasingly popular trend. From 9:30 to 14:00 h. Plaza de Santa Bárbara, 2. 28004. Madrid
Follow the conference via streaming through BBVA Innovation Center website. If you’re not able to make it, search our archive for the best potos and videos on the subject, all taken during the event. www.centrodeinnovacionbbva.com
March 2013 | SOCIAL BUSINESS 63
BBVA invests in
innovation A new strategic initiative by BBVA, by the name of BBVA Ventures, will invest $100 million in start-up companies that prove crucial for the development of the financial services industry. Entrepreneurs and venture capital investors alike are teaming up with BBVA Ventures to look for innovation and emerging trends on financial services, as well as exchanging knowledge for the industry’s sake.
“I
nvesting in start-up companies committed to new business models enables BBVA to learn and anticipate the new environments that the sector will face in the future,” said Jay Reinemann, co-founding executive director for BBVA Ventures. “Moreover, entrepreneurs and co-investors can use BBVA’s extensive experience, brand and global distribution network to accelerate their growth.” By making strategic investments in venture backed start-ups, BBVA’s aim is to stimulate the research on developments in technology and emerging business models, both of which already are of capital importance for the bank. Mobility, data analytics and e-commerce, among others, are some of the key areas to be covered by the companies in portfolio, which in exchange will get soundness and the possibility to implement innovations in an experienced group with a strong international presence. “We believe that the partnership model of BBVA Ventures provides the most efficient and effective access to emerging trends and disruptive innovation which ultimately maximizes shareholder value,” stated Carlos Torres, head of Strategic and Corporate Development division at the BBVA Group. And it does. In early 2012, BBVA Ventures completed its first investment in Silicon Valley, through “The 500 Start-ups Fund”, set up by Dave McClure, former marketing executive at PayPal and a highly respected engineer and entrepreneur. Up to 300 companies have taken advantage of this investments, and it’s already turning up results. Simple, inDinero, PeerTransfer or WePay, are only some examples of the fruition of the programme. The BBVA Group has been investing in innovation and technology for many years now, in order to anticipate the deep transformation the financial industry is eventually undergoing. Actually, this transformation is already taking place with the development of new
64
digital channels and means of payment that are generating new customer relationship models. Against this backdrop, BBVA’s firm commitment to new technologies through functions such as BBVA Ventures makes it one of the few banks that are ready to tackle the changes and compete in the market. www.centrodeinnovacionbbva.com
Follow us: www.facebook.com/centrodeinnovacionbbva twitter.com/cibbva www.youtube.com/user/centroinnovacionbbva www.slideshare.net/CIBBVA
Events BBVA Innovation Center ■ LA CONVERSACIÓN BLOGS This event will try to depict the enormous impact that the internet has on different fields of society. Hot topics and breaking news will be discussed in order to achieve so. Date: March, 14th. 11:00 a.m. at BBVA Innovation Center
■ KNOWSQUARE Know Square is an independent managers’ network, both online and face-to-face, that focuses on sharing analysis, opinions, knowledge and experience appliable to managing enterprises. Date: April, 9th. 6:00 p.m. at BBVA Innovation Center March 2013 | SOCIAL BUSINESS 65
BBVA Innovation Edge is the first corporate magazine focused on innovation. Innovation Edge aims to explore new trends and technologies that may impact the financial industry, especially retail banking.
BBVA Innovation Edge is the result of a collaborative work done by all the people who are involved in innovation at BBVA Group. APP: Available on the App Store... CONTRIBUTORS TO THIS ISSUE: Alfonso Bey Reyes Bolumar Vanesa Casadas Antonio García Luz Martín Carlos Méndez Alvaro Morón Manolo Moure Alicia Sánchez Javier Sebastián Jose Manuel Valenzuela María Teresa Vázquez Ignacio Villoch Gustavo Vinacua Shang Gu “Phil” Yim
WEB: ... and also on the web: https://bbvainnovationedge.com
PDF: To read off-line
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©BBVA2012 No part of this publication can be reproduced or communicate in any form or by any platform electronic o mechanic, including photocopying, recording o any other system of storage and retrieval, without permission of the publisher, BBVA.
DL: M-38720-2012
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Produced by Prodigioso Volcán (www.prodigiosovolcan.com) March 2013 | SOCIAL BUSINESS 67