How to Tell If You’re Just Dabbling with Digital

Digital transformation is hot — in a new Altimeter Report, “The State of Digital Transformation”, we found that 88% of organizations we surveyed said that they were undergoing a formal digital transformation effort, which Altimeter defines as “the re-alignment of, or new investment in, technology and business models to more effectively engage digital consumers at every touchpoint in the customer experience lifecycle.”

But the research found that only 25% had mapped their out the customer journey, while another 12% were in the process of a mapping effort and were awaiting results. What was striking was that 42% of respondents said that while they were not officially researching the digital customer journey they had made efforts to update those digital touch points with new social and mobile investments and initiatives. [Read more...]

State of Research & Consulting: The Smartest Network, Not People, Will Win

Closeup portrait of business people with hands on hands

This post was originally  cross-posted on LinkedIn. You can read the original post here.
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Disruptive Trends to Watch in 2014

Forward to 2014 new year concept

This post is part of Altimeter’s Trends to Watch in 2014

To kick off the new year, here are seven trends I’m following closely in my research at Altimeter, inspired by my conversations with clients, keynote audiences, social media communities, and very generous thought leaders. The list is not exhaustive of what is important, but these are the key issues I’ll be digging into in 2014. For each trend, I also include a few thoughts on the implications for organizations — and what actions they should take.

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New Report: Social Media Education for Employees

Last year, we asked companies about their top social strategy priorities. The second top response was “Developing Internal Education and Training.” Yet, when we surveyed companies earlier this year, we saw that only 38% had any education program in place, beyond ad hoc efforts.

Over the past few quarters, we identified a number of large companies that have developed social media education for their employees, to learn why and how. We interviewed companies as diverse as ARAMARK, Kaiser Permanente, RadioShack, and more — and learned that social media education helps achieve two key business objectives:

  • Reduce the risk of social media violations to protect employees and the company, and
  • Increase employee advocacy and effectiveness, both on and off-domain.

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The Twitter IPO: Some Initial Analysis

Twitter just tweeted that it has filed a confidential S-1, with the appropriate disclaimer. Here are a few reasons why this filing and IPO warrant close scrutiny.

  • Twitter is the last of the Big Four to go public. In the social networking ecosystem, Twitter is seen as a must have in terms of a social strategy, and is the only major player left that is still up for grabs — YouTube (owned by Google), LinkedIn (IPO), and Facebook (IPO) are all spoken for. Other upstarts like Pinterest are just getting started so Twitter is going to be the talk of the town into 2014, which is the earliest the IPO can be expected. There will be a certain “last call” mentality to the Twitter IPO that wasn’t there for Facebook.
  • Confidential filing gives Twitter control. Twitter took advantage of the JOBS Act pass last year, which allows firms with less than $1 billion in revenue to file an S-1 confidentially. This means that unlike Facebook, Twitter won’t be subjected to a microscopic dissection of every word of its filing. This is a good thing, because Twitter’s business model isn’t the easiest to explain. As Twitter begins the roadshow, they’ll be able to roll out their story to investors in a systematic, orderly way that enables them to tell their growth story to the world.
  • Timing and Friends benefit Twitter. Twitter should be saying a big “Thank You” to Facebook for carving out the path before them. Facebook has spent the past year educating the market about social media advertising, doing much of the heavy lifting and laying out the red carpet for Twitter.
  • Challenge: Twitter’s Advertising Model. The biggest challenge that Twitter has is that its main form of revenue comes from “sponsored tweets” which is a form of native advertising (see Altimeter’s just-published report on Native Advertising). The problem with these sponsored tweets is that they are not, at present, a standard ad format that can travel outside the Twitter platform. That makes ad buying — and scaling to media buyers — more difficult.
  • Discipline to Stick to the Business. The tweet that Twitter posted one minute after the “filing” one shows everyone at the computers with the next, Now, back to work.” The company has been preparing for this day, and realize that it’s a long, long slog for the next approximately six months before the actual IPO. The team will need discipline to focus on the work, rather than pulling out spreadsheets to calculate their potential net worth. Not an easy thing to do!

These are still early days, and I anticipate that we’ll learn a lot more about Twitter’s business over the next few weeks and months. I, for one, am eager to not just see the numbers, but also to hear their story. Because as one of the four foundational platforms of the social space, they have the ability to shape the future as they envision it unfolding. And the vision that Twitter CEO Dick Costello and his team roll out is sure to be interesting.