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Jeremiah Owyang discusses how web tools and social media enable companies to connect with customers Forrester Wave Report: The Leaders in Community Platforms for Marketers (Part 4/4)

Key findings of the 9 vendors

First of all, this is still a very young market, with the average tenure of a company being just a few years in community. Despite the immaturity, we evaluated nine and were impressed with Jive Software and Telligent Systems who lead the pack because of their strong administrative and platform features and solution offerings.

Yet another reminder of the old saying “Those who can do. Those who can’t teach.” You couldn’ be further from the truth. Facebook, or more generically any social networking platform, has significant advantages such as the ability to instantly add/configure/customize/network an application. This dramatically lowers the barriers to entry (correct on that point), but it also lowers the cost of switching for users. Yes, creating a standard (massive usage) creates a barrier to switching, but not an insurmountable barrier. Frankly, “social networking” as application is boring to me and it may prove to be a fad. I don’t really care about the minor personal gestures of my 400+ friends. But the social platform is exceptionally compelling to me as a user, developer and visionary. Social discovery and vetting of application is huge. I’ll drop one app and add a competitor in 2 minutes. My friends will do the same if it offers a compelling value. Your application of the old school metrics of the PC platform to a social platform ignores the low switching costs, social discovery of applications, incredibly low marketing costs and all of the other benefits of a social platform that will power future applications. The fact that one person in a dorm room can write a killer app that can spread virally is exceptionally powerful. That simply cannot happen on the PC. It can happen on the web, but having done it a couple of times myself, I can tell you it is costly. Will Facebook become the ultimate platform, will OpenSocial win, will browsers encapsulate social connectivity across all websites/webapps, will the semantic web finally deliver? I don’t know the winner, but social apps are here to stay. Yes there will be a lot of crap apps, but the social fabric will help separate the wheat from the chaff. Sorry, but I give your analysis an F :)

Facebook’s most important strategic asset is not its community of developers but its network of users.

Does Platform build or leverage this strategic asset?

3. Growth PlatformsThis area of focus refers to the selection, prioritization and communication (both internal and external) of new growth platforms and business concepts that promise to deliver long-term, sustainable competitive advantage. It is here, most especially, that high performers begin separating themselves from the pack by making the strategic distinction between effective innovation in general and the effective commercialization of innovation. Accelerating growth through innovation requires becoming more disciplined at identifying a company's innovation "center," as it were. For some companies, such as Apple, innovation generally flows from its products and services. Other companies, such as Wal-Mart, fuel growth through operational innovations. Business model innovation has helped drive companies such as eBay and Skype. Companies must manage growth from that innovation center, rather than from the periphery. Part of that commitment to innovation involves embracing new and disruptive ideas. Another important aspect is leveraging open innovation and open sourcing methods that bring together suppliers, partners, employees and management. Companies that effectively commercialize innovation also develop more risk tolerance when scanning for opportunities outside their immediate business environment. They become more willing to cannibalize products and services when investigating new growth platforms. They become more adept at the operational requirements of their winning concepts, leveraging current partners, networks, assets and distinctive capabilities to help drive growth through innovation (see "Leading by imitation," Outlook, January 2007). Finally, these companies know how to communicate their growth and innovation strategy, both within their company and to the marketplace. Like the old story of the tree falling in a deserted forest, future value that is not communicated effectively to the marketplace doesn't make any noise.

Mobile social money, the final frontier? In the final part of discussions of social networks, media, banking and money, I thought I would turn attention to the use of mobile devices as access media to these networks. Mobile usage in banking has grown to a crescendo in the past year, after bubbling away nicely since the turn of this century. This is in part down to the fact that the latest smartphones allow a bank to deploy fully functional internet banking services to mobile devices using the same platform as their main websites. In other words, it is now cost-effective and appropriate to do this. However, the challenge with mobile finance is that we tend to discuss mobiles as one homogenous group of devices when: (a) there are many devices; and (b) the use of mobile devices to access financial services are not homogenous. Let’s look at (a) first.

40 of the Best Twitter Brands and the People Behind Them

We all know brands are using Twitter — whether or not you want them around. Some of them don’t quite get the medium and just tweet self-serving links or marketing speak, but you won’t find any of those brands here. We’ve handpicked 40 of the best brands experimenting with the micro-blogging platform, and asked them a few short questions about how they’re using Twitter. If some of their responses seem short, well that’s because they are. I asked each brand correspondent to answer our queries in 140 characters or less. Most of them got the point, a few rambled on a bit too long, and only asked me if “u” was acceptable in lieu of “you.” All in all, we’ve found some amazing people, doing some pretty powerful things at big companies, and all via Twitter. Smart brands use Twitter in meaningful ways, and most of them use their brand name as a way to make sure customers can find and recognize them. This piece, and the knowledge I learned from the incessant hours invested, demonstrate why brands do belong on Twitter. No other medium gets you inside a business or brand quiet like Twitter. And if you’re a brand that didn’t make our list, let us know why your tweets deserve consideration in the comments.

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