This case study shows how Oracle implemented social media through a classic hub-and-spoke model. By blending existing techniques with capabilities offered by social media, Oracle didn't disrupt what was already in place; instead, it added new forms of interactive dialogue to enable deeper levels of partner intimacy.

• Oracle did not set out to create an independent social-media strategy. Rather, it used the two-way dialogue features of social media to add value to its existing Oracle Partner Network (OPN).
• Although governance is necessary, Oracle believes excessive control over social-media participants compromises its value.
• Oracle kept expectations low, not knowing how partners, accustomed to events in the physical world, particularly training, would respond to virtual alternatives. Managers were pleasantly surprised. Since implementing social media, 25,000 partners have been trained on Oracle's next-generation partner program — while providing highly positive response.

• Resist the urge to create an independent social-media strategy. Oracle uses these new tools to drive more participation and engagement to its existing partner portal.
• Keep a watchful eye on new developments in social media and respond to them quickly. For example, Oracle has a social-media champion that keeps its channel managers aware of new adoption trends, such as video — an observation that prompted OPN leaders to start video blogging (which significantly increased blog participation).
• Social media creates content that can be indexed, analyzed and monitored. Measure a number of key indicators to assess how well it's paying off. For example, at Oracle, a threefold increase in press mentions has been recorded since implementing new social-media tools.
• Marketers should empower their internal resources to moderate online communities in real time, since participants can leave both positive — and negative feedback. However, as Oracle discovered, when communications to partners (through social media tools such as blogs) are authentic and sincere, partners are apt to leave feedback that is constructive versus negative. Your partners want you to succeed — but you have to be straight with them.

Provider case studies from Gartner represent a snapshot of how a company's managers are using various tools and techniques to advance its strategic goals. Gartner does not endorse any provider approach in its case studies, nor does it use case studies to call out a provider's experience as exemplary. Rather, the provider featured in a case study provides insight and advice that marketing and channels managers in other providers may find valuable. It is not meant to compare, or place value, on one provider's approach versus that of another.

This document was revised on 9 June 2010. For more information, see the Corrections page on gartner.com.

At Oracle, keeping more than 20,000 partners (that contribute 40% of the firm's revenue) aware of partner program developments is hugely important, especially since even more third-party opportunities are becoming available. A dedicated portal, known as the Oracle Partner Network (OPN), keeps partners aware of opportunities, while providing a set of resources to help partners succeed. With social media, Oracle is tapping into even more tools to keep partners engaged. But it's an effort that is not without challenges; In this case study, Oracle shares these challenges, the approach it took to overcome them, and the positive results it has generated by enabling the OPN with social media.

Newsletters, press releases, e-marketing and analyst relations have always been part of the OPN communications mix (see Figure 1). With the addition of social media, two questions arose:

• How can we keep the focus on partners, not the medium? As Marius Ciortea, director of innovation and social media at Oracle, notes: "We viewed social media tools as ways to complement what we were already doing. So our challenge was not to create a social media strategy as an end in itself, but rather use it to advance our existing goals for OPN."
• How can we use social media to transform OPN into its own persona? Oracle also noted social media's ability to facilitate a much-richer dialogue. As Lydia Smyers, VP Worldwide Channels & Alliances Communication, notes, "With the launch of our dedicated partner blog (facilitated by Judson Althoff, Global Vice President [GVP] Worldwide Alliance & Channels) we saw an opportunity for interactive conversation, and the ability to touch every partner. This was entirely new. How to shape the blog's personality was a challenge — and an opportunity."

Oracle sustained its style of enhancing, not disrupting, investments that were effectively working. Social-media tools act as "spokes" to drive more engagement to the existing OPN hub, which is now extended with Judson Althoff's partner blog (see Figure 2).

A "social-media-enabled" OPN adds two valuable capabilities (see Figure 3):

• Disseminates information in real time, especially relevant with the Sun Microsystems acquisition — allowing Oracle managers to respond quickly to partner questions, which in turn benefits the entire community.
• Lets managers respond to unfiltered feedback. "For the first time, we can see unfiltered feedback from partners," notes Smyers. "Comments being made in the blogosphere and in other social networks can be captured, indexed and analyzed. I moderate these conversations and have a process in place to manage issues. For example, a login issue that we saw on Twitter — was resolved in minutes."

Various social networks dovetail into the existing Oracle OPN communications mix — depending on how it enhances the message, event or conversation (see Table 1):

Judson Althoff, Oracle's GVP for worldwide partners and alliances, reported the following positive results that Oracle says it has realized from the OPN social-media initiative:

• Adoption rate. "Since we started using social media," says Althoff, "we've conducted virtual training for 25,000 partners, who place particular value on partner-to-partner engagement. For me, this positive partner feedback provides qualitative support for the business case."
• Increased confidence. Althoff adds: "With social media we tie comments back to specific partners and individuals. Social media also offers the option of anonymity. It takes courage to stand up in a crowded room and ask a question. For mike-shy participants, social media removes that barrier."
• Productivity. "I don't waste time wondering if a new program will be adopted — because I know it has been designed upon authentic conversations from hundreds, even thousands of partners," notes Althoff.
• Reduced costs. "My communication costs continue to decrease with social media," says Althoff. "We also improve communications quality — because we speculate less about what partners need. Overall, we reach more partners in shorter time frames at less cost."
• Higher employee satisfaction. "Our people feel engaged. They feel good about creating programs that are based upon direct partner feedback. Social media narrows the gap between what our partners want and what we know we're delivering."
• Increased interest from the press. "Discussions that start in social media can quickly extend into the mainstream press," notes Althoff. "Aggregate global OPN press mentions are three to four times higher per month as a result of discussions that start in social media."

A business development manager from an Oracle partner in Europe has the OPN blog on his Google Reader to ensure he gets every post. "By doing this I am updated on Oracle's strategy and announcements in real time," he says.

Another partner comments, "OPN events make good use of social media — and it is amazing to see a company like Oracle encouraging such direct interaction. They respond to my messages really quick."

Another partner notes, "I have had great experiences connecting to OPN using social media. For example, I get answers I'm looking for immediately using Twitter and LinkedIn. I get the information I need quickly — and it adds to my Oracle partner experience."

Employ a hub-and-spoke model. Social media doesn't necessarily replace existing communications — nor is it a strategy unto its own. For example, many organizations use Facebook, LinkedIn and Twitter to drive traffic to their traditional hub (the website) then use this traffic to drive interest in the corporate blog.

Address governance, but don't try to overcontrol. With the advent of social media, and what Oracle's Marius Ciortea calls the "accidental spokesperson," messaging, marketing public relations and corporate communications must be in sync. But as Ciortea quickly adds, "If you try to overcontrol social media, you risk compromising its very contribution, which is to enable two-way, honest, authentic conversations. Make social media governance short, clear and easy to implement."

Invest for the long run, not the sprint. Oracle managers agree social media needs time. Smyers adds: "Anytime you invest in community building — you must give the communities time to respond. They won't do it overnight."

Don't overthink social media. As Lydia Smyers notes, "Test the tools and see what type of response you get. You won't have precedent for many of these tools so try not to form pre-set expectations."

Assign a resource to moderate communities. "If possible," suggests Smyers, "identify one person to assure the communities you form with social media are properly moderated. If I were to do this again, I would probably get someone in place to proactively moderate the communities from the start."