Monday, August 25, 2008

How Social Data Mining Can Redefine PR’s Role


Negative comments. They cause legal departments fits and are often one of the biggest reason why companies don’t want blogs, forums or social networks.

As a communications professional, I’m not wild about negative comments either, but I am willing to accept them given the advantages that social media offers. Deploying social networks:

• help you track and manage what the public is currently saying online
• let you better address these comments
• can actually help you score points with customers

There are plenty of examples of users rallying behind companies that acknowledge mistakes and make good faith efforts to correct them.

To convince reluctant executives, there is a business case to be made that doesn’t involve value intangibles like engagement and authenticity. It’s about data mining. Social media can generate data – tons of it. The key is to tap its power to deliver customer insights.

But before anyone raises privacy concerns, let me say that I am not encouraging companies to monitor private conversations or sell personal data to third parties without a customer’s permission. I am also not talking about ways to serve up ads to customers. Analyzing social network dynamics yields insights that can improve products and processes, reduce costs and allocate resources based on customer behavior. In short, it helps us better understand our customers.

What form does this data take?

Social network analysis or social data mining focuses on the relationships and interactions of people, groups, or organizations and not individual users. It views user actions interdependently rather than independently. It follows the linkages between users and how they share information. It tries to identify patterns and understand their significance.

Joe Cothrel’s Take


Joe Cothrel understands data. He works at Lithium Technologies. I have mentioned him before. His company builds forums for other companies.

From his perspective, not having a forum is far worse than negative comments. Forums can help clients hear about problems weeks before they begin hitting customer support centers and become expensive crises.

Harvesting insights goes beyond content (what is being said) and sentiment (how it is expressed). It’s about the patterns and connections - who is saying and how often. When do supporters engage, when do detractors chime in and why?

And it’s not just the social networks or forums themselves. It’s the space around them. What blogs and networks are connecting to yours? What are the key nodes, and is your social network one of them? Where are users coming from, where do they go when they are there and where do they go when they leave? If your social network is an ecosystem, how does it work and how does it work in relationship to the wider ecosystem outside of yours?

And for managers of social forums, when do you listen, when do you speak and what voice do you use? What does it mean to manage beyond the community?

Helping to answer these questions are tools like Google Analytics and customer relationship management (CRM).

Google Analytics is a free service that generates detailed statistics about the visitors to a website. Google Analytics can track visitors from all referrers, including search engines, display advertising, pay-per-click networks, email marketing and even digital collateral such as links within PDF documents.

CRM helps an enterprise manage customer relationships. CRM is a combination of policies, processes, and strategies implemented by a company that unify its customer interaction and provides a mechanism for tracking customer information.

A New Way of Doing Business


Together they are powerful tools in distilling and making sense of valuable data about your customers from social networks. You can track the effectiveness of marketing campaigns, generate sales leads and identify new product ideas. In turn, social networks can help with a company’s CRM efforts. As Denis Pombriant wrote,

We have all kinds of CRM systems today that systematize and organize our customer facing processes, but what we lack right now are effective ways of capturing customer feedback….Social networking is an important new contributor to front office business processes. It gives us a way to look at the world through the eyes of the customer, and makes good on some of the promises of CRM.

For example, a company can link a customer record to a social network or forum login and track activity and comments back to its CRM system. This enables a company have a more complete picture of the customer’s interaction with the company.

I realize that CRM and web analytics generally fall outside the purview of traditional media relations. Our role rests in the realm of what is being said, not shaping business processes. But in championing social networks to reluctant executives we need to think more creatively and expansively.

It is time to stop focusing on negative comments and stress social media’s strategic value. Understanding social data mining not only helps with our advocacy; it helps give us a seat at the table. It moves PR away from simply shaping perception to helping the enterprise better understand and serve customers.

Let me get back to you.

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Monday, August 18, 2008

Sig Mosley, Charting Atlanta’s High Tech Industry

Atlanta high tech industry pioneer Sig Mosley

His offices speak to his position as one of the deans of Atlanta’s high-tech community. The wood paneling in his lobby is a big contrast to the concrete digs of a typical start-up investment opportunity. And in the search for Atlanta’s most influential figures in technology, Sig Mosley of Imlay Investments would be on most everyone’s list.

Sig has been with Imlay since 1990. Founded by John Imlay, Imlay Investments is a private firm that provides funding for early stage technology companies. Eleven years earlier, Sig began working with John Imlay as he helped transform a near bankrupt Atlanta company called Management Science America into the largest independent application software company in the world. Sold to Dun & Bradstreet Corporation for $333 million in 1990, MSA is one of the great stories in the history of Atlanta’s high tech investment community.

Over the years, Sig has been involved in over 100 deals with Tradex Technologies, Internet Security Systems and Witness Systems as some of his biggest.

I recently sat down with Sig to reflect on the changes that he has witnessed from his perch as president at Imlay Investments. So much has changed over the years. He hands me a chart that diagrams the evolution of Atlanta’s tech community. Four companies — MSA, National Data Corporation, Scientific Atlanta, and Interstate Communications – help form the base. (All by the way are no longer independent companies.) They in turn formed additional companies that fan out across the page — making others rich along the way.

Over that time, he has watched the emergence of an angel investment community. He has seen the glory days of the dot com bubble in 1998 and 1999 where he would see 40 business plans a week to its subsequent bust which sucked the air out Atlanta’s high tech industry.

The Dry Years

As Sig told me, “No one anticipated how quickly and how hard the dot com collapse would affect the local angel community.”

It has taken a long time to recover with 2001-2006 being especially dry years. But it is not necessarily a bad thing. Today, he sees one or two business plans a week, but they are better quality plans as opposed to the many me-toos of the dot com era.

He points to Venture Labs and a new generation of advocates like Sanjay Parekh and Scott Burkett who are helping to transform Atlanta’s high tech community. He also points to leaders like Chris Klaus at Kaneva and Bob Cramer (blog) at ThePort who have achieved success and have gone back for another round with new companies.

For all its success, Atlanta is not without its challenges. He believes that Google might not have been funded if it had started here. Web 2.0 holds promise for Sig, but he doesn’t see as many opportunities for social media.

Sig Mosley has remained in Atlanta. But as a community, we continue to see departures — most recently Jeff Haynie’s — of our most talented, even for the best reasons.

Becoming a Top 5 Five Technology Community

His vision is for Atlanta to become one of the top 5 high tech communities in the country. To do this, he believes Atlanta needs to see more venture money and more angels investing in technology. And successful entrepreneurs need to get back into the fray after they achieve success. He supports the passage of proposed legislation that would allow the state of Georgia to allocate a portion of the State’s pension fund dollars for alternative investments. This legislation would go a long way to helping spawn high tech investment and demonstrate the state’s commitment to technology.

What motivates Sig? It’s more than money; he has made plenty. He doesn’t believe you should become an angel investor if it is only about making money. Sig believes in giving back to the community. Reflecting on his success, he gives me a copy of Jungle Rules written by John Imlay.

In it, John shares his vision for being a successful entrepreneur and investor. He talks about stalking success like a “tiger” as well as “finding, teaching, mobilizing, motivating the tiger in business people and turning them loose to succeed.”

It is interesting that in a firm focused on technology, Imlay stresses the “dying art of old fashioned human relationships and how they bind people together in business.”

If Atlanta is going to make its mark in the high tech industry, it will need to find its tiger. Equally important, the next generation of entrepreneurs will be well served by remembering the contributions of pioneers like Sig Mosley who have provided the foundation for future success.

Let me get back to you.

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Monday, August 11, 2008

CNN iReport Marks an Anniversary


This month marks the second anniversary of CNN iReport. This initiative reflects the Cable News Network’s commitment to crowdsourcing and citizen journalism.

Many in the news industry are looking at crowdsourcing, citizen journalism and other forms of user-generated content as a way to combat declining newspaper circulations and shrinking network news audiences.

Launching iReport involved risk. As with any social media initiative, management faced some difficult questions. Would people embrace it and in a meaningful way? How would CNN handle negative comments? Could you ensure accuracy? Would it compromise the brand and potentially call CNN’s integrity into question? Would it lessen the prestige of its hired staff of professional journalists?

Viewer submissions from major events like the Indian Ocean tsunami in 2004 were instrumental in helping make the decision. CNN’s management gave its approval, and iReports went live on August 2, 2006.

From all accounts it worked. People around the world contribute videos and pictures to supplement existing stories that CNN is covering or submitting breaking news that they are witnessing. It helps CNN stretch a limited news budget, obtain footage of stories that would be difficult to obtain itself, cover more stories in more depth and more personally and engage with its viewers more directly.

After the initial success of iReports, CNN launched an iReport.com beta version in February of this year. (And just last week, iReports announced it was no longer in beta.) The site allows users to submit photos, videos and comments and have them appear on the site. The submissions are sometimes very serious and sometimes just entertaining or novel. CNN producers review these submissions and select reports for possible airing on the CNN television networks, CNN.com and other CNN platforms. The site also allows iReporters to contact each other.

CNN said it did not have targeted projections, but they are pleased with some of the results so far:

• Traffic is up 25 percent in June and double from the month before.

• More than 75,000 individuals to date have registered as citizen journalists.

• At launch they had 13 iReports; right before they launched iReport.com, they were receiving around 10,000 a month.

The Atlanta Connection

For those who regularly follow my blog, I have a strong interest in social media as well as Atlanta based companies that are showcasing social media. CNN iReport meets both criteria. In fact, Lila King, senior producer for user participation at CNN.com strongly believes that iReport has become so successful because its CNN headquarters are in Atlanta. The proximity adds credibility and allows for more collaboration.

While other local companies are still only considering social media, CNN’s strategy includes a blog, the use of Twitter and a presence on Second Life to engage its viewers and facilitate discussion. King points with pride to the feedback from its Black in America series. As of August 1, the series received 1527 submissions, and 73 were vetted for use on CNN’s other platforms.

Viewers have posted about their own experiences, while some commented specifically on CNN’s coverage. CNN doesn’t censor contributions and believes the advantages of an open discussion outweigh any negative comments. There are however community guidelines that address inappropriate (hateful and obscene) material.

For CNN, iReport is clearly a business strategy to create and extend content and engage viewers. But to King it is much more. She points to citizen journalists who literally risked their lives posting videos about protests in Myanmar. “I believe tools like iReport helps the grassroots spirit of the Internet.”

The success of iReport has not gone unnoticed. Writing about alternative forms of journalism, Project for Excellence in Journalism reported that “CNN’s iReport is the most conspicuous example of this trend.” Other networks have similar initiaitves, including ABC’s i-Caught, Fox’s uReport, and MSNBC’s FirstPerson.

While iRerport’s criteria is pretty broad, it is still much harder to make the leap to other CNN properties. On average, 10 percent of 800 – 1200 iReports are vetted each day and make it to another CNN platform. In addition to the community guidelines, here are some other things to consider:

  • Making the cut to another CNN platform requires a full vetting of its authencity.
  • Submissions need to be in context of stories that CNN is running at the time.
  • The most successful submissions contain a compelling human interest angle.
  • The most recent submissions often have a better chance of getting aired.

With more citizen journalist-produced content making its way to news websites, it makes me wonder how crowdsourcing will impact the PR profession. Will it give us more opportunities to gain exposure or make it harder to stand out in the crowd? Will we have to rethink how we “pitch” a story? Will our expertise be as valued when user generated content is gaining more currency? Can or should PR “orchestrate” the contributions of citizen journalists?

Crowdsourcing and citizen journalism are still in their early stages of adoption. It is still unclear if ithey will increase interest in broadcast and print journalism. What is clear to me, however, they are not only changing the face of journalism; they are also impacting the way PR professionals do their job.

Let me get back to you.

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Wednesday, August 6, 2008

Lessons from Appcelerator’s Move to Silicon Valley

As reported by The Atlanta Business Chronicle, (subscription required) Atlanta based Appcelerator and its CEO Jeff Haynie (blog) are heading to Silicon Valley as part of a $4 million deal led by Storm Ventures. Rumors had been swirling for a few weeks and shame on me for not chiming in earlier.

The announcement is great news for Jeff and disappointing news for those of us trying to grow and sustain Atlanta’s tech community. It’s also ironic that the Atlanta Business Chronicle would break the news. As of late The ABC has been criticized for not readily embracing the local tech community or even having a regular tech reporter.

But break the news they did and kudos to them.

However tempting, I am not going to speculate on who lost Jeff Haynie to Silicon Valley. What I will talk about is what we do from here.

I have been following companies like Appcelerator in my quest to promote social media awareness and adoption. Appcelerator allows developers to incorporate interactive features into their web sites without the need for JavaScript or plug-ins.

Haynie himself has been a leader in Atlanta’s tech community. Previously, he was co-founder and CTO of Vocalocity and has been regularly involved in such technology events as SoCon08, Barcamp, and Atlanta Startup Weekend.

Over the last couple of months I have talked to several entrepreneurs like Jeff. He represents the opportunities and challenges of the Atlanta tech community.

Jeff cut his teeth in Atlanta but it’s hard to compete with the Silicon Valley. Atlanta lacks the Valley’s intensity. It can’t provide the same level of financial support. The investment community here is not as large and is its level of commitment to high tech is not as strong.

According to John Yates, a leading technology attorney in Atlanta, 10 percent of Atlanta companies get funded by Silicon Valley VCs and then move there. Esgut and Fuzzwich are two examples of local companies who saw more opportunities out there.

And Sig Mosley one of the deans of Atlanta’s tech community speculated that Google might not have been funded if it had started here.

So what lessons can we learn from Jeff’s departure?

Entrepreneur Scott Burkett says we are at a crossroads;

The Atlanta community has a choice to make. We can continue to play second fiddle to communities with half of the innovation present here. Or we can treat Atlanta as a greenfield opportunity and evolve. There are plenty of problems to tackle, and lots of work to be done - but it can, and will happen. But certain views, approaches, cultural hangups, and models will either need to evolve, or be pushed out of the way (this is already beginning to happen).

Now I know he wasn’t referring to me when he said “a greenfield opportunity.”

But I do agree that we need to approach things differently. Part of the solution is web 2.0 and social media. Web 2.0 is driving new business opportunities, and social media is helping us get there.

Through the power of blogs and tools like Twitter, the entrepreneurial community is starting to engage in an open, meaningful dialogue. We are no longer beholden to traditional media and connections to obtain information and access.

The online discussions may be messy. We may later regret the emotions that pour out, but we have at our disposal a forum to address real needs and present solutions. Through the collective wisdom of the community we can offer advice and help enterpreneurs create more fundable business models. Through social media, we can foster a creative environment where ideas matter. Yes we may vent, yes we may rant, but along the way we are taking advantage of these new channels that will hopefully spur investment in Atlanta.

Finally, I can take heart in knowing we can create successful high-tech companies. The challenge is keeping the homegrown talent here.

Let me get back to you.

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Monday, August 4, 2008

On Baseball, Data and Social Media

Reading Chris Anderson’s recent Wired Magazine cover story about the End of Theory prompted me to do something I had been meaning to do for sometime: buy Michael Lewis’s Moneyball.

Chris’s piece examines how computers, the Internet and the era of massive data are changing our assumptions about science and scientific method. Moneyball looks at how the use of data enabled the Oakland Athletics to amass one of the best overall records in baseball with one of the lowest team payrolls.

And it is the power of data that is transforming the way we in marketing and PR do business. Through data, we can identify trends that we never knew existed, find previously ignored market segments and gain an advantage in a very competitive marketplace.

So beginning at the All Star break, I started reading and finished the book at 2:30 one recent morning. Now I am no baseball expert and can’t prove or disprove Lewis’s theory, but I was struck by one thing in particular: The story of how Oakland A’s general manager Billy Beane used Ivy League number crunchers parallels the work we are doing with social media.

It is a story about questioning assumptions, challenging orthodoxy, tapping new ways to engage fans and measuring performance. It’s about a new kind of expertise that is creating a whole new approach to doing business.

Challenging Unconventional Wisdom

For the longest time, stats like batting averages, stolen bases, and RBIs have governed baseball. Leading the majors in any one of these categories is worth millions of dollars. What Beane did was unconventional. He looked at the statistics that others overlooked, ignored, or rejected to sign ballplayers that other scouts had overlooked, ignored, or rejected.

His conclusion: on base percentages and slugging percentages are a far more accurate way to assess talent and predict success. They were the best indicators of which players would produce the most runs for the team as a whole. More runs, more wins. And today, while these stats are more widely used, that has not always been the case.

The story really begins in the late 1970s with an eccentric visionary, Bill James. Back then, there was no such thing as a blog, so he self-published a book that challenged the orthodoxy governing the measure of baseball success. Without search engines, he placed a single ad in the Sporting News. He grew a small but loyal following and responded individually to reader mail.

At the time, management and traditional sports journalists were very skeptical. In much the same way bloggers were initially dismissed, sportswriter Thomas Boswell wrote, “What we really need is for the amateurs to clear the floor.”

There was also no place for companies to share information with their customers. Data was not transparent; stats were held by major league teams and only one company – the Elias Sports Bureau – was authorized to sell that data. Major League Baseball wasn’t interested in new metrics and wasn’t interested in giving fans the data they asked for.

Quoting James, Michael Lewis writes: “The entire basis of professional sports is the public’s interest in what is going on. To deny the public access to information that it cares about is the logical equivalent of locking the stadiums and playing the games in private so that no one will find out what is happening.”

James advocated that the accumulation of baseball statistics should be taken out of the hands of baseball insiders and put instead in the hands of volunteer scorekeepers. The huge success of Rotisserie Baseball in the mid 1980s demonstrated that fans were hungry to engage with each other.

These developments along with the growing power of computers and the drive for new kinds of expertise (like the use of derivatives in financial markets) all contributed to a new way to think about stats, baseball and managing teams.

Sound familiar?

Does the story of self-publishers, companies unwilling to engage their customers, skeptical journalists, empowered fans and the lack of transparency sound familiar? These are the elements that social media advocates experienced in the beginning and, to a lesser extent, experience today.

While most of us are not involved in managing sports teams and picking players, the lessons learned from Moneyball are transferable. Most importantly, data is king.

Moneyball Marketing

In making their selections, the A’s crunched millions of bits of data, analyzing the outcomes of thousands of plays in a given game and in a given season. It’s the same approach we should be taking: looking at the connections among and interactions between individuals to understand innovation, collective decision making, and problem solving, and how the structure of organizations and social networks impacts these processes.

Blogger Steve Rubel refers to it as Moneyball marketing.

We need ask ourselves: Are we looking at the data that social networks yield? How and where does data factor into PR decisions? Can we use data to target the right audience - especially in the age of the long tail where we can go after niche markets?

Identify the right data and you can help improve products, increase sales, engage customers and build brand.

Once more, as the Oakland A’s demonstrated, data collection can save dollars. The challenge of course is to identify the right data. And that data must directly relate to your company’s business objectives. In the case of the A’s, the goal was to maximize limited dollars.

Number crunching and computers may seem incongruous with the traditions that govern our nation’s past time. And after all baseball is just a game. But Moneyball demonstrates once again that how you play the game often dictates whether you win or lose.

Let me get back to you.

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