Starbucks, Star Struck with Social Computing?

In many ways, I'm thrilled about "My Starbucks Ideas", which provides Starbucks' customers an opportunity to share ideas on improvements for Starbucks.

On the other hand, I wonder if there is an overly optimistic expectation that this approach will deliver amazing breakthrough results. That some folks might be "star struck" with the notion of social computing.

And although this endeavour should drive value such as improved customer relations and incremental innovation, there are limitations (opportunities) that could be used to enhance the environment and ultimate results. To explain the potential, I'll use the engagement model.


Motivation

Unlike other heralded examples of 2.0 style innovation systems (i.e. GoldCorp, Innocentive), there is no major incentive for someone to provide their ideas to Starbucks. Without any explicit incentives, the motivated respondents will likely be those who are loyal Starbucks enthusiasts. Those willing to go through the effort to establish an ID, and write a description of their idea. Not that they should be ignored, but it does miss out on the opportunities from a more varied set of perspectives that could bring a totally different set of ideas.

So in absence of hard incentives what motivates? How about, what's in it for me (wiifm). It should be no surprise that a good number of the most popular ideas will be about giving "me", free stuff . A quick scan of Starbucks' top 10 most popular ideas show that half of these ideas are about giving me free stuff (whether it's coffee, wi-fi, content). Now who wouldn't vote for free coffee and free wi-fi? I like it!

Although "freeconomics" has been quite a popular topic recently, ultimately, Starbucks needs to understand how this translates into profit. For example, one of the ideas is about giving away free coffee on your birthday. Would this make you spend more money at Starbucks? Would it really make you more loyal? Of course it's popular (voted on), but how can they use this to drive their longer-term business model?

Now what if there was a reward or compensation for an idea that was linked to driving profits? You just might get others motivated to share their insights from a different angle.



Opportunity

On the surface, it appears that customers now have an opportunity to really share their ideas and support their favourite ideas through voting. This is true... to an extent... The opportunity however is only for those that vote favourably on an idea.

Consider a scenario in which Idea X has 100 positive votes and Idea Y also has 100 positive votes. You'd think they were equal right? Not necessarily. We haven't give an opportunity to those that would disagree with an idea. Those that are saying, "if you implement that idea, I'd leave Starbucks!". What if Idea X has 100 votes and 0 Negative votes, but Idea Y has 100 votes and 500 negative votes?

The current model only gives the opportunity to vote in favour for an idea. Digg style voting could come in handy for Starbucks if they want to understand the potential downside in addition to the potential upside of an idea.



Capability

Although there is much to be learned from the wisdom of crowds in prediction markets, can it really be used to identify 'disruptive' concepts? Clayton Christensen's work on the Innovator's Dilemma explains the challenges organizations face in promoting innovation, indicating that shareholders and customers don't want the disruptive innovation, until it's too late. Christensen's work illustrates how once innovative organizations are "held captive" by their existing customers needs.

I recently wrote a post on Steve Jobs & Innovation that quoted Steve Jobs quoting Henry Ford, which I think is useful... 'So you can't go out and ask people, you know, what the next big [thing.] There's a great quote by Henry Ford, right? He said, 'If I'd have asked my customers what they wanted, they would have told me "A faster horse." '

Also previously posted was a conversation I had with a consultant that had worked with Starbucks. He shared a story about how on the surface Starbucks customers, when asked what they wanted, would reply "faster service, more reasonable (cheaper) prices" but after deeper needs analysis they identified that the real reason customers went to Starbucks wasn't because of faster service, or cheaper prices, it was a luxurious escape they could take in an otherwise hectic day. Reducing costs, rushing the experience, and having a proliferation of stores all went against the "specialness" and "luxurious" concepts.

The point here, is that asking customer is good but they may not have the knowledge/capability to give you insight into the next big thing. Digging deeper to uncover needs analysis or root-value analysis can lead to richer and more useful results.

So, I am certain I've added a little controversy to the great Starbucks initiative. Like I said earlier, I actually think their initiative is a good one. It's not that I dislike what they're doing, I just think the coffee cup is only half full :)

5 Social Computing Benefits that Adoption Rates Don't Show

Are you are promoting social computing in your organization and being questioned about the low "participation levels" or "adoption rates"? Well, here are 5 points that should help you explain that it's not just about the percentage of people that actively participate.


1. Thanks for Asking

Sometimes it's just being asked that matters! Even if people choose not to participate, it's still a choice. Have you noticed the term "employee engagement" showing up everywhere these days? The term happens to be the most common search phrase leading people to my blog.

To engage employees means that you actually need to start by asking for their input. Even if they don't have specific input right now, that's fine. What you don't want to do is incent the wrong behaviours such as "gaming" a system to meet an objective. Providing opportunity is an implicit benefit of social computing. It demonstrates respect for the employees input and leads to a more engaged and committed organization.


2. La crème de la crème

A favourite book of mine is, "Good to Great" by Jim Collins. In the book, Jim explains that the role of leadership is NOT to motivate. If you have to motivate and convince people to do something, you're already starting in a bad position. Instead, if you have the right people and the right opportunity they will be "self-motivated". The role of leadership then becomes making sure you don't let people become "de-motivated". Jim goes on to explain the importance of making sure you find the right people. But how do you do this?

One way is to leverage the power of self-organization. For example, we run on-line "jam" sessions and invite 1000's of people to participate. Not everyone will, but those that do tend to be "passionate" and willing to take on accountability. And those concepts that rise to the top tend to be well thought through. The point... Even if you only have 10% participation. It's likely that the 10% you want!


3. Needle in a Haystack

Mass collaboration isn't about simple consensus. It also provides greater opportunity to find a few gems by casting a much bigger net. 60 Minutes had a great story on John Kanzius , a retired Radio and TV engineer who's invention may ultimately cure cancer. He has zero medical training and his unorthodox method involves the use of radio waves and nano-particles! He likely would never have been invited to any discussions on the topic. And it is only that his own very unfortunate situation has inspired him to look for an answer. Is there a way to purposefully stimulate more creative ideas?

I often hear people ask for "out of the box thinking" and if they truly want that, we apply different techniques. One of the techniques is simply to bring in experts in different fields than the topic we're actually working on. Why? To drive a completely different perspective on a given situation. Hopefully leading to a breakthrough. Social computing allows us to invite many many people each with different views and perspectives. Even if you don't have high participation, if you get that one breakthrough idea, it's all worth it!


4. One for All

A well designed social computing environment encourages interactive participation of the right people. For all of you "executives" that believe this is something you let "employees" do but aren't actually engaged in yourself, you are missing a huge opportunity. The opportunity to drive "trust" and "confidence" throughout the organization.

When I see an executive who "gets it", the effect can be amazing. You can read a conversation that is authentic, public an non-hierarchical. The participants in the conversation see a "real" side of an executive whom they otherwise may never have even met. But what if it's only a handful of people engaged in the discussion? That's fine. Because even if the participation level is low, the folks that read and view the conversation also benefit. The readers will also see an genuine conversation which aids in building trust and confidence in your organization.


5. Back to The Future

By the time I write this blog, I hope many people will read it and benefit from it. I also hope many people will discuss it. But realistically, I know that it's value may really be in the future. Unless you need this information now, it may be just an interesting (which I also hope) article. In the future, when someone really needs help in this area, it will be available to them, and perhaps will help them articulate the additional benefits in leveraging social computing.

This pertains to your organization as well. Even if you don't have immediate participation, the conversation is not time bound, and employees can still join the conversation even into the future. They can understand the context (how we came to decisions we did) in addition to the ultimate decisions. This depth of understanding helps ensure smarter, better, more complete decisions can be made moving forward.

So the next time someone challenges you, that your social computing endeavours just aren't "engaging enough people", you can explain that the full value of social computing and enterprise 2.0 is more than the number of people fully interacting. These 5 real benefits just can't be determined by some magic "participation rate".