Strategic Aggregation Designs

1. Strategic Aggregation Designs Harnessing the Promise of Social Networks for Business Operations Passageways PowWOW Advanced User and Developer Conference May 7-9, 2008 Presented byRandy Karnes, CEO

2. Mutual Interests • It was only natural that CU*Answers would seek out a portal technology provider like Passageways for a partner based on our own evolution and current goals: • Build business networks that create strategies, tactics, and activities across organizational boundaries • Leverage the talent of the resulting business network for both our participating organizations and our participating professionals • Leverage the opportunities of the resulting business network both as a solution provider and a vested aggregator Fancy words and high falutin’ ideas for simply wanting to do more with our partners and increase our relevance to their business plans and to their customers

3. Building Business Networks Creating strategies, tactics, and activities across organizational boundaries

4. Improving On Standalone Concepts • Organizations who network their capabilities can gain a competitive advantage • They need a network with 3 key components: • A technical “highway” that coordinates transactions and interactions • Organized and rich content that is accessible and actionable by all • Sufficient aggregation to create a formidable market presence • It all starts with the idea that a business will leverage its commonalities with partners for everyone’s advantage It’s simple: be more, do more, and appear larger than you could as a standalone player

5. Amplifying Commonalities • The things that organizations share in common provide the spark for pursuing alliances and network solutions • Common vision and beliefs • Common vendors • Common tools • Common customers • Common goals • The relative importance of these commonalities to the success of their business plans creates the intensity and commitment to network solutions Think about this User Group: you come together around some shared practices, but do you execute on those practices as a network, or as standalone operators?

6. Hubs and NodesBusiness Networks Around a Common Vendor or Platform Point to Point

7. Hubs and NodesBusiness Networks Around a Common Vendor or Platform What is the opportunity, and where is it focused? Point to Point

8. Hubs and NodesBusiness Networks Around a Common Vendor or Platform A Hub

9. Hubs and NodesBusiness Networks Around a Common Vendor or Platform What is the opportunity, and where is it focused? A Hub

10. Hubs and NodesBusiness Networks Around a Common Vendor or Platform A Network

11. Hubs and NodesBusiness Networks Around a Common Vendor or Platform What is the opportunity, and where is it focused? A Network

12. Hubs and NodesBusiness Networks Around a Common Vendor or Platform • Which is bigger? The opportunity of one, or the opportunity of all? • A network multiplies the work of one into an opportunity for all of its participants

13. Harnessing the Promise of Social Networks Around Business Operations • Ultimately, this network business design works when the environment (eco-system) creates the belief in the minds of its participants that their very participation in the network gives them a competitive advantage by • Helping them harvest the benefits of scale that were previously beyond their reach • Surrounding them with accessible innovation that is easily actioned at a lower cost • Magnifying their opportunities and creating the potential for positive (though unspecified) new directions Simply put: the business designer believes this is the place to be...this is my connection to the crowd that will take me to the next level

14. Leveraging Talent CU*Talent: Evolving on social aggregation as a business strategy for getting the most out of human resources

15. Rethinking Human Resources at the Organizational Level • “How many people work for you?” • What has changed that might influence how a CEO in 1988 would answer that question, compared to a CEO in 2008? Networks and the mindset of employees who know how to use them • “How do you see the talents available to your organization?” • What has changed that might influence how a CEO in 1988 would answer that question, compared to a CEO in 2008? Networks and the mindset of employees who know how to use them • So have networks and the mindset related to using networks for access to talent and people changed the way your organization thinks about human resources strategies and tactics? Think about your personal contacts...they might add up to more talent than a large company in 1988

16. Rethinking Human Resources at a Personal Level • How will tomorrow’s employee react to classic career challenges? • They will bring their network to work with them every day • When the boss asks them to find a new solution to a constant challenge...they will use their network • When they need an edge to get that next promotion...they will use their network • When they need a new opportunity...they will use their network • So when employees bring their network to work and truly understand the advantages they have at being adept in using networks, will your business plan leverage this new perspective? Think about your personal contacts...you have an edge on someone who still works like they did in 1988

17. Rethinking Human Resources • Imagine the revolution in trying to get organizations with top-down control thinking to embrace social network concepts • Open environment with little governance • Easy, quick communications • Rich user identities (personalization, vanity, etc.) • Reputation/ranking mechanisms • Cliques • New social network metrics (betweenness, closeness, centrality, clustering coefficient, etc.) • How can we translate these ideas into winning business models?

18. CU*Talent • At CU*Answers, we are anticipating using our business network design to enhance both our participating organizations and their employees’ situations by leveraging a new mindset about HR and the collective talents of a network • Goals for CU*Talent • Connecting people • Creating opportunity • Sharing knowledge • Source of intellectual capital • Collaboration, collective exchange of ideas • Alternative resource allocation • Individualized career development • Potential for reduced people expenses

19. CU*Talent • We need to design a network that can capture the power of talent—no matter where it is in our network—to innovate, execute, and earn beyond anything we’ve ever seen • Build an expectation of leveraging both employees and their peers and contacts • Our Passageways partnership gives us the potential to design a unique environment for credit union professionals that will be compelling, contagious, and a place where they will want to do business We plan to leverage the power of a single Intranet against the Intranets of a hundred organizations and let 3,000 employees be visible to each other

20. CU*Talent Network

21. CU*Talent Network

22. CU*Talent Network

23. CU*Talent Network • Ideally, the community servers create an environment where employees inside a credit union are partnered with employees anywhere in the network • The community server represents a common environment, set of tools, and business concept that facilitate a shared activity – a ready-made eco-system to facilitate a new shared business • It will start with CU*Answers at the center of new business initiatives • It will come to fruition when any participant feels empowered to go into business or sell their talents throughout the network Is your business read to extend services to your peers? Are you digitally defined, connected, and ready to bring on your first client?

24. CU*Talent Network: Peer to Peer Connectivity

25. Harnessing the Promise of Social Networks Around People and Their Talents • Ultimately, this network business design works when the environment (eco-system) creates the belief in the minds of its participants that their very participation in the network gives them a competitive advantage by • Helping them harvest the benefits of scale that were previously beyond their reach • Surrounding them with accessible innovation that is easily actioned at a lower cost • Magnifying their opportunities and creating the potential for positive (though unspecified) new directions Simply put: employees and leaders believe this is the place to be...this is their connection to the crowd that will take them to the next level

26. Leveraging Opportunity Leveraging classic investments for new gains

27. We All Have the Same Problem • Every business designer builds networks within their organization (node) with the following focuses • Servicing the corporation • Servicing the employees • Servicing the customer • Servicing the partner • Classically, we’re taught to build these environments for ourselves, standalone and self-contained • If we are to take advantage of strategic aggregation designs, our organizations need to be ready to plug and play with network resources By design, you must be seen by the market as a network-ready talent – a business ready to be at the center of collaboration in this new marketplace

28. Are You Relevant to the Network’s Needs? • What role might you play in these classic network needs for potential partners? • Servicing the corporation • Servicing the employees • Servicing the customer • Servicing the partner • Do you have ideas to contribute? Process designs to contribute? Talent to contribute? Customer opportunity? Excess capacity? Connectivity? • Are you building a business ready to earn through network contribution and interaction? We believe our partnership with Passageways and our projects related to business networks and CU*Talent are designed around completing our resumé as a network catalyst

29. Building Rich IT Environments

30. Building Rich IT Environments

31. CU*Answers

32. Conclusion • We’re happy to be part of this new network – advanced users of Passageways • It is the next step in our working to harvest the potential of networks for CU*Answers and our partners • It’s easy to see the potential in collaboration; it’s easy to feel good about cooperation; it’s to see that something is going on with social networks and aggregation sites on the Internet • What can be hard is translating something that appears to be so easy into a competitive advantage for our industry • That takes work – and we’re dedicated to the effort