Telling your reluctant boss that social media is worth using because Dell made $3 million on Twitter, however, runs the risk of encouraging e-commerce broadcast as the model for engagement in conversation. Other, more conversational, examples of ROI make important additions to conversations about Dell and social media. (They also concern a lot more money.)

The @DellOutlet account has more than 600k followers on Twitter and frequently posts links to discounted computer hardware. Revenue from those links is great to be able to point to, but there is a risk of reinforcing traditional business thinking where it is not fully appropriate. New media is a new world and while the ultimate bottom line is important, many participants argue that the greatest benefits of engagement do not draw a straight line to the cash register. Building a strong community of customer advocates, listening to community concerns and discovering new business and product developement opportunities are softer benefits of social media engagement that skeptics often don't see when they presume that old-school methods of pushing calls to buy is what should be done on these new channels.

Hard and soft ROI are matters we focused on extensively in the ReadWriteWeb Guide to Online Community Management, our first premium report for businesses.

Dell itself does a lot of listening and conversation from this same Twitter account. The public benefits of that conversation have been all but lost now that Twitter has changed its policies regarding the visibility of public @replies. Dell followers no longer see public replies sent to other followers they themselves aren't following. That's a major lost opportunity for public education and good will.

As Pandora community manager, Lucia Willow, told us in an interview for the Guide: "I intentionally respond to most customer service messages with private direct messages. If it's a question that a lot of people have, then I answer back publicly with an @ message."

Shhh...those public conversations are now invisible, for Pandora, for Dell and for all the rest of us. Though Dell reports good results from Twitter over the last two years, changed policies over the last two months may require a change in the way the company uses Twitter if it wants to keep seeing those kinds of results.

Four Better Examples of Social Media ROI

That Dell has made $3m from Twitter links is cool, and it's a good arrow to have in your social media advocacy quiver, but here are a number of examples we think better capture both the bottom line and some of the soft benefits of conversation. Joe Cothrel, Chief Community Officer at enterprise online community vendor Lithium, gathered these numbers in 2007 and we included them among other resources in the RWW Community Management Guide.

These examples reference older related forms of online social interaction, but they also concern far greater sums of money than $3m.

• A Cisco study in 2004 found that 43% of visits to online support forum are in lieu of opening up a support case through standard methods.
• Cost per interaction in customer support averages $12 via the contact center versus $0.25 via self-service options. (Forrester, 2006)
• Jupiter Research (now Forrester) reported in 2006 that customers report good experiences in forums more than twice as often as they do via calls or mail.
• Ebay found in 2006 that participants in online communities spend 54% more than non-community users.

Better customer experiences, far lower support costs and more buying activity in the long run. Those are observations that can help provide context to the high-profile example of Dell pushing e-commerce links out over Twitter. Dell is clearly doing a lot of the same kind of customer service via social media that the companies above cite, but watch out for falling into the trap of telling your reluctant boss that Twitter is important because Dell bagged $3 million there.

Thanks to Ben Parr for sharing the Dell Community announcement link.

Check out some of the young year's first highlights in tech hiring as reported by our site Jobwire below. Jobwire is sponsored by VisualCV, which is a service for job seekers. Jobwire reports on 10 to 15 completed new hires in tech and new media every weekday.

Head on over to Jobwire to find out about other new hires at RedHat, MindTouch, Stack Overflow and more.

We're reporting on 10 to 15 new hires in tech and new media every day at Jobwire. From executives to engineers, if you've got a new job or your company has made a new hire - let us know!

Neither Dell nor Microsoft has confirmed the deal, but ZDnet attributes the news to "sources familiar with the arrangement.

Having already displaced Google on Lenovo computers earlier this year, and again in June with the Hewlett Packard deal, Microsoft is clearly looking at OEM deals to grow its search share, which in October 2008 covered 8.5 percent of the market, compared with Google's 64.1 percent.

October 2008 U.S. Search Engine Rankings: comScore

The report also speculates that Microsoft is considering dumping Live and using Kumo as the new name for its search business.

His story is an inspiration and it is our pleasure to connect you with Mike Dunn on ReadWriteWeb.

What is your background?

I'm an emerging media technologist. I've spent the latter half of my career as a chief technology officer for companies in media or technology.

I've always been an early adopter. I enjoy finding ways to adapt emerging media, trends, methodologies and technologies into a company. I've been attracted to change agent roles and opportunities.

I like the complexity of environments in the midst of change, where the need to implement innovation is necessary to grow or turn around anything from an entire company to an individual product opportunity.

I tend to be responsible for the technical assessment of Venture and M&A opportunities. I'm asked to manage strategic partnerships with technology companies, service providers and academic institutions.

I'm a director for a bank and an online ecommerce site, an advisor to a media marketplace startup, a b2b operating company, a major technology trade publication and an insurance industry information portal startup.

My portal glemak.com contains pointers to my bio and online activities.

You've been CTO of Dell Online, Time Warner and now Hearst. How did you evolve through these experiences?

My roles in each have been very different. My Dell role occurred just as ecommerce was striving for adoption, Time Warner occurred right in the middle of the bubble, and Hearst is occurring while the web is dynamically changing as it moves to massive online communities and the long tail of media.

Dell Online was an internal start-up championed by Michael Dell to lead the way for the entire enterprise, not only to build the online capability, but also to spread its adoption and utilization. We pointed the way for transitioning a company via ecommerce.

I was part of an excellent team tasked with designing and building a high availability transactional environment, and one which did it all with nascent ecommerce development tools.

I spent a great deal of time briefing customers and partners on the value of our approach to building the infrastructure and platform that represented the revolutionary change to selling securely via the web. This was early days of ecommerce and prior to the 'all-in, spare no expense' bubble. Employees and customers needed to be convinced Dell's online efforts were safe and provided value.

When Time Warner approached me to become the CTO, I accepted since the reason I was hired at Dell had been satisfied. The site and team were built and stable, and the ecommerce transition had started to happen.

At Dell I learned how to plan and build for scale, how to partner with diverse technology units driven by multiple motivating factors, how to lead via influence, and how to educate and socialize the value of a complex paradigm shifting technological change for a company.

Time Warner was a huge role and opportunity. I'd spent time earlier working in technology management for Hanna-Barbera and Turner. Both became Time Warner properties after I'd left Turner in the early '90s.

My role involved overseeing corporate technology assets and services such as the global WAN connecting diverse businesses, our messaging environment and corporate applications. I managed an IT team responsible for these functions, but that was only 20% of my job. The other 80% was strategic, seeking opportunities to leverage traditional and emerging technology initiatives across over 660 businesses.

I relied on virtual teams, groups of diverse experts loaned part-time from individual units so that Time Warner could leverage internal resources and expertise. We used consultants of course, but our SMEs were the leaders and guides.

Mid tenure the AOL acquisition occurred, causing us to realign our initiatives to deal with this massive merger event.

I learned a lot about strategic guidance via influence. It is better to spend time convincing folks about something you'd like to see change so that they adopt the idea as their own.

A valuable lesson I learned at Time Warner was never to get overwhelmed with the scope of responsibility an initiative or role entails.

My current role with Hearst is also about leading via influence. As emerging media technologist, I advise and work directly with the various divisions. I also oversee relationships with technology partners and academic institutes.

I provide technical due diligence for our enterprise level investments and acquisitions, and I provide guidance and oversight for our portfolio companies, and am responsible for the technology aspects of wholly owned entities.

At Hearst I've had to evolve my methods to align with a larger entity changing to meet a rapidly shifting media landscape.

How has the media landscape changed in the past 5 years?

Dramatically. I started at Hearst 5 years ago, so I've seen the changes inside my company and from the media landscape at large.

Five years ago blogging, social media / networking, user-generated content and ubiquitous online consumption of rich media were not pervasive, and were not leveraged in any substantial way by the traditional media industry.

Yes there were those of us blogging, utilizing RSS and generating media online who were both inside and outside the traditional media industry. These will continue to grow dramatically.

Today most media entities are exploring or immersed in emerging media capabilities, especially publishing online and direct community engagement. The connected aspect of the communities has been a constant evolution. Instead of talking 'at' their audience, they need to become an active peer participant in the conversation.

The desire to access media has changed dramatically. Traditional methods of producing and distributing media have been extended in dramatic ways via technologies such as flash video, mobile access and Podcasting.

What are the economics of the print v. online world for media companies?

Traditional and online media production and distribution are of equal importance in today's rapidly changing media landscape. It's all about transitional focus.

I'd broaden the question to: What are the economics of all forms of traditional media v. online?

Today the same product that is produced for traditional distribution needs also to be leveraged in as many other media as possible, and as many times as possible. For example, the concept for an article is published traditionally, yet there are numerous ways to extend the reach and life of that content online: by publishing an extended version to the web, syndicating it to other sites, maybe posting a Podcast of the original interviews. The original article can now be leveraged for a longer time and in many more venues.

What tangible revenue models do you see for online media today and on the horizon?

The revenue models for online are much the same as those available via traditional means: (e)commerce, affiliation, subscription, advertising, sponsorship (donation), pay to play, and product placement.

The biggest difference is in scale. Traditional media is larger yet narrower and today provides a greater percentage of revenue than the smaller yet much broader online revenue landscape. The barriers to entry into traditional media are costly and complex, while online they are much less expensive and simpler for new entrants.

Tangible revenue models being focused on today are advertising via CPM and PPC, with some seeing success via PPL and PPS.

What strategic changes are you implementing at Hearst to prepare for the future?

We're pursuing strategic investments and acquisitions in emerging and innovative media, and we're aggressively scaling or creating integrated digital media groups inside our business units.

On the enterprise technology side my group has been implementing program management and enterprise governance processes. Both are important structural changes.

On the strategic relationship side, I'm coordinating our relationship with the MIT Media Lab. The MIT sponsorship is a key research and development mechanism, from a 'what will media look like 3 to 10 years out' perspective.

You've been writing about technical due diligence on your blog. What are the top 5 things that must be in place?

1) The primary things I look for are a thorough understanding of a company's current technology state and a roadmap of their future. I then fill in the building blocks to paint a picture of the company and its structure via the next 4 areas.

2) Staffing: The company should have a proper ratio of dedicated to outsourced staff. The focus for in-house staff should be on owning and extending the company's value-add. The focus of the outsourced staff / service should be on areas where technology is available at a reasonable price.

3) Infrastructure and Architectural: I look for alignment between the infrastructure in place and their roadmap. I try to understand their architecture, i.e., have they designed something that will be stable, yet scale and grow as their business requires? Have they over or under built, are their investments proper for current state and extensible as their growth requires?

4) Workflow and Processes: This is usually the hardest part of my interviews with startups because while most have ways they do things, they often aren't comfortable expressing them. They also aren't normally done in a way that's repeatable to the point where they could be called a workflow. This is OK. As they mature, standardized workflows and processes will be established, normally out of a necessity to ensure they're providing a stable environment that doesn't get negatively affected as they introduce change.

5) Costs: This is the spreadsheet part of the conversations. What has been spent to get them to the point they're at, what do they need to spend near term, possibly with funding from my company, and what do they envision they'll need to spend? I look for a grounded approach to spending.

What is your secret for balancing personal and business life?

You work to live, not live to work. I've always had a passion for my career, but I've also made sure I spend priority time with my family. We spend time together snowboarding each winter in Vermont, and mountain biking the other months, along with our dogs.

Both my boys are athletes, so I make as many of their games as possible. I work hard and travel a lot, but I'm home for important family events.

What is one insight, business or technical that you want to share with our readers?

Try and develop the art of listening. Too often folks spend so much time trying to think about and express their own opinions that they miss the details of the conversation occurring around them.

Most of the successful folks I've been around in my career are excellent listeners.

What is the meaning of life according to Mike Dunn?

My geek answer is the same as Brad Feld's meaning of life = 42. But the serious one is that life is all about learning.

If you can learn something useful at every stage of your life and use that knowledge to improve your life as well as to teach it to others, whether its your kids or someone you mentor, then your life should be rewarding.

TruCast allows companies to monitor internet buzz by analyzing blogs, social networks, consumer opinion and review sites, bulletin boards, discussion forums, newsgroups, and online news sites to determine what's being said and how engaged customers are with the company's brand. Several well-known companies currently using the TruCast system to monitor and respond to their customers include Dell, Microsoft, Panasonic, and Hormel.

Dell, who is known to be one of the more forward-thinking companies when it comes to listening and responding to their customers, uses TruCast to actively monitor posts, comments, and conversations on 40 different online topics related to the Dell brand, the details of which are revealed in this new case study which has been posted to the TruCast web site. According to the study, TruCast enabled Dell to reduce the negative sentiment about their brand by more than 50%.

TruCast 2.0

Now, with the launch of TruCast 2.0, the technology has been improved to monitor and discover even more online conversations than before. According to the company, TruCast now currently harvests and analyzes nearly 70% more data than any other competing applications. The technology they use delves into the social conversations that are taking place - reading through comments, follow-up comments, and more to determine the relevance and attitude of each item it finds.

TruCast Dashboard

More importantly, TruCast works with a business to give the right people inside the company the access to the relevant data in order to respond in a timely and appropriate fashion. And although the conversations are coming in from all over the internet, TruCast streamlines them into one central application where they can be tracked, read, and answered, which makes the workflow of brand analysis and response as simple to handle as checking your inbox for new mail.

TruCast Response Manager

If you want to learn more about how TruCast is helping companies stay on top of the ever-changing social media landscape, you can view this presentation (below) from the American Marketing Association's (AMA) Online Seminar:

| View | Upload your own

No, I don't mean my idea personally (although I do have some ideas for the company), but rather the collective ideas of every Starbucks loyalist, hopped up on caffeine. Simply put, My Starbucks Idea is a socially driven marketplace for Starbucks-related ideas that will help the company reinvent itself.

You know better than anyone else what you want from Starbucks. So tell us. What’s your Starbucks Idea? Revolutionary or simple -- we want to hear it. Share your ideas, tell us what you think of other people’s ideas and join the discussion. We’re here, and we’re ready to make ideas happen. Let’s get started.

All you need to do to participate is sign up on the site using a username, password, and an email address. Once you're logged in, you can post your idea in one of 13 categories:

Every posted idea immediately shows up in the recent ideas queue, where it is voted on in a Digg-style manner. If it gets enough votes, it gets 'promoted' to the popular ideas list and top all-time list, from which Starbucks employees and management pick the best ideas to actually implement in stores. If your idea catches someone's eye, it will be labeled as **under review**, and if they actually decide to implement it, you will see a **coming soon** tag next to the idea.

A complete list of ideas that are going to be implemented can be found in the ideas in action section of the site.

Overall, the site is an absolutely great idea. In many ways it is very similar to Dell's IdeaStorm which I similarly praised. Every company could benefit from its own implementation of a socially driven marketplace for ideas, especially major consumer brands such as Starbucks and Apple, which have developed an incredibly loyal core following. Such marketplaces can help companies capitalize on the passions of their their most important fans and deliver on the promises of the next big thing without huge research budgets.

My Starbucks Idea has been a huge success so far, just like Dell's IdeaStorm before it. Approximately a month after launching, the site has gotten a plethora of great idea submissions from Starbucks-lovers, and the most popular submissions have gotten tens of thousands of points (votes) and hundreds of comments. As long as Starbucks keeps letting the community freely voice its opinion and keeps implementing the crème de la crème of the community's ideas, the company has nothing to lose and everything to gain.

Disclaimer: I own Starbucks stock.

Note: Though Dell has purchased ads on this site in the past via FM Publishing, we have no advertiser relationship with Dell, nor are we being compensated in any way for showing this video -- we just thought it was funny. We hope you do too.