Enterprise 2.0 Harnessing Social Media
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This document summarizes Enterprise 2.0, which refers to the use of social media, cloud computing, and mobile technologies by organizations. It discusses how these tools allow for increased collaboration, communication, and knowledge sharing within and outside organizations. While offering opportunities, Enterprise 2.0 also presents risks that must be managed through training and governance policies. The document provides examples of how different business functions can utilize Enterprise 2.0 and stresses the importance of monitoring and analytics to understand impacts and inform strategies.
Enterprise 2.0 Harnessing Social Media
- 1. Enterprise 2.0 Harnessing social media
- 2. Social media technologies are changing the way organizations do business and connect with stakeholders. However, like all new technologies, social media also creates certain business exposures. To maximize its potential within your organization, intelligent risk management is essential.
- 3. The emergence of Enterprise 2.0 As the use of social media rises, a new version of business technology is also developing: Enterprise 2.0. Enterprise 2.0 refers to the use of social media, cloud computing, and mobile technology tools and platforms to create and exchange information and perform functionality. It allows users to discuss, review, collaborate, entertain and build communities. Participants can include various stakeholders, such as employees, customers, third parties and investors. Social media is a change agent that is transforming the way we do business and communicate. The paradigm has shifted from: • Web enablement to collective intelligence • Hierarchical to egalitarian organizations • Enterprise to customer brand ownership • Corporate command and control to corporate influence only • Information management to business networking • Small networks of strong ties to large networks of weak ties • One-to-many communication to many-to-many communication Mobile technology further expands the possibilities. For instance, the inclusion of contextual details, such as location, time, preferences, introduces a new frontier with many untapped opportunities. Accordingly, at their most potent, Enterprise 2.0 technologies rapidly create and disseminate content to a large community while simultaneously facilitating collaboration. While it may seem like an opportunity at present, soon social media usage, be it internal or externally facing, will become commonplace in all organizations. Those that turn a blind-eye to this paradigm shift will likely be left behind. It’s no longer a question of whether or not your organization should consider social media – it’s time to decide how to capitalize on the undeniable opportunity. Enterprise 2.0 – Harnessing social media 1
- 4. Taking the plunge into social media Social media technologies have been rapidly adopted by the general public and more recently by organizations. Yet some companies remain reluctant to take the plunge because they lack a clear strategy or a firm understanding of the risks. Skepticism can be compounded for those who have experienced negative coverage on public social media platforms. However, negative comments are typically generated by a small user segment and are commonplace towards any company. In fact, a social media presence of your own lets you minimize criticism, clarify facts, share your point of view and respond to your customer base. That said, diving into social media without a strategy can be a risky affair. It’s easy enough to set up a business account on Facebook or implement an internal microblogging tool such as Yammer, but it’s essential to define objectives and understand the issues – and the risks – before you begin. For instance, most enterprises look to social media to: • Increase productivity and operational efficiency through communication • Foster creativity, innovation and collaboration • Enhance customer and stakeholder relationships A social media presence of your own lets you minimize criticism, clarify facts, share your point of view and respond to your customer base. 2 Enterprise 2.0 – Harnessing social media
- 5. The reach of public platforms Despite the validity of these goals, it can be difficult to determine which platform to use for your initiative. There are over 300 public social media platforms, many featuring mobile enablement and location-based services, and the number is growing. While this scope may seem daunting, certain clear leaders now attract the bulk of online users. Acknowledging some overlap in functionality, the major social media platforms fall into six categories. Figure 1 – Categorizing the social media space Entertainment Review & opinion YouTube, Eos, Epinions, Yelp, Miniclip.com, Google Answers, Kongregate, WikiAnswers, Sims Online Yahoo! Answers Collaboration Virtual community Wikipedia, Facebook, MySpace, Delicious, Digg, Twitter, SecondLife open source content Social media Location based Conversation services Facebook, LinkedIn, Augmented reality, WordPress, MySpace, QR codes, location Twitter awareness The major public platforms include the following: Figure 2 – Public social media platform reach in Canada Platform Type % reach in Canada Facebook Social networking 79% YouTube Video sharing 67% Blogger Blogging 43% Twitter Microblogging 13% LinkedIn Professional networking 9% Source ComScore MediaMetrix Canada (Nov. 2009) Among the over 25 million Canadian internet users, almost 20 million already converse on sites such as Twitter, Facebook or LinkedIn. It seems only natural for businesses to turn to social media platforms to connect with consumers. Enterprise 2.0 – Harnessing social media 3
- 6. Can social media mean business? The most popular social media platforms obviously have substantial reach, but to be employed effectively, they must support organizational vision at a tactical and strategic level. Here are a few ways social media can be applied both internally and externally across an organization: Human Resources Support • Recruit by identifying suitable external candidates • Reduce costs and increase customer loyalty by • Highlight internal job opportunities quickly fielding common questions on platforms • Train and coach employees through videos such as Twitter and podcasts • Post “how-to” and self-help videos, so customers • Grow an alumni community can troubleshoot their own issues • Connect customers and allow them to support Marketing each other in a moderated environment • Enhance customer loyalty by engaging in continuous conversation Innovation and R&D • Conduct market and competitive analysis by • Invite and leverage customer suggestions, analyzing user reviews, postings and reactions feedback and ideas in the product and • Create an internal community to determine service development cycle (e.g. through a marketing objectives and ensure consistency rewards-based contest) • Conduct orchestrated marketing campaigns • Involve all employees in the thought process by complementing traditional marketing with through internal collaboration tools a social media presence • Involve senior leadership in your social • Protect organizational reputation and brand media strategy to position the organization by actively monitoring and influencing social as a thought leader in the field media posts Corporate Social Responsibility (CSR) Sales • Communicate existing policies and efforts • Generate leads and find new business • Engage stakeholders to provide input in order • Bolster in-store sales with increased access to receive instant feedback on what is sent out to customer reviews and potentially even • Learn what other companies in your industry product information on 2D tags are doing • Unify sales personnel with support and • Enhance your brand by keeping an ongoing CSR marketing to enable better service thereby social media channel, and mitigate the long-term generating more profit effects of any crisis • Provide targeted in-store advertisement and promotion through mobile platforms 4 Enterprise 2.0 – Harnessing social media
- 7. Monitoring and analytics To assess organizational effectiveness in achieving any of these goals through social media, monitoring and analytics are critical. Additionally, considering there is large amount of user opinion and data available on social media platforms, how can your organization make sense of it all and construct meaningful connections? Here is where social media monitoring and analytics come into play. Monitoring both detects and gathers relevant information from digital news and user- generated social media platforms. Analytics is the techniques that turn information related to your industry, company, products and services into intelligence through sentiment and relationship analysis. Both involve tracking and assessing user-generated content on all digital platforms. As a result, analytics play a key role in gathering useful intelligence, protecting your brand and informing company strategy. Together monitoring and analytics tools provide: real-time alerts for important keywords, sentiment analysis (what users are saying – whether it is positive, negative or neutral) for brand, products and services, mapping of mentions (what is being said about company initiatives, products and services) and the creation of social graphs. Depending on your needs, these tools can help you: • Gauge consumer perceptions of products, brands and services • Use findings to rethink a brand or product in response to underlying consumer concerns • Enhance market research with unfiltered industry and competitor consumer reviews Escalation control is another key benefit. Distraught customers who are influential online can – and will spread bad news and reviews quickly via services such as Twitter and Facebook. Constant monitoring and early engagement is important in limiting escalation and defines a new frontier in customer relationship management (CRM). The growing importance lies in cutting through unavoidable noise in user-generated content, making sense of what is being heard and putting analytics findings into context. Data mining is a fruitless effort unless intelligence and insight can be generated and used to develop an actionable business strategy. Enterprise 2.0 – Harnessing social media 5
- 8. Risks and rewards The risks associated with social media are different for employee and corporate applications. However all are very real and must be considered. Personal employee usage External information sharing by employees, both accidental and intentional, can compromise vital data, yet external employee usage of social media is difficult to control. Easy access from smartphones and cell phones makes regulating social media usage nearly impossible. Such actions may also hinder recruiting, as candidates increasingly seek firms that understand their needs. A better solution is to advise and train employees on acceptable use according to a clear internal policy. Employees must be conscious and wary of what they post, especially when they are representing the company. Providing tangible examples of both appropriate and inappropriate use is the key to effective training and education. Corporate social media presence The web is a powerful medium. Information can instantly be transmitted to a large audience, with little to no control over content. Companies must be aware of the potential impacts of social media engagement. For instance, microblogging tools such as Twitter may seem ideal for fielding user concerns, but improper handling of customer issues could lead to unnecessary escalation. The need for caution is clear, but the advantages of executing a well-planned social media strategy are substantial. It is a highly cost-effective means of marketing and promotion. Companies can easily reach out to consumers and stakeholders, strengthening relationships by engaging them on a more intimate and individual basis. Also, a presence in the social media space can help you limit the spread of damaging and inaccurate information, a danger for any company. You can provide correct facts as well as your organization’s perspective on issues and limit your organization’s legal, regulatory and privacy risks. An effective governance model and training for everyone representing the company through social media are strategically vital starting points for entering the social media space. 40% of companies ban social media, citing productivity loss and security as major concerns. The remaining companies have either left the matter unaddressed or attempted to institute a policy, often providing inadequate training or awareness. 6 Enterprise 2.0 – Harnessing social media
- 9. Going to market Once you have a better idea of social media and its possibilities, the next step is to chart out a plan for establishing or enhancing your organization’s presence. This involves some important considerations, including strategy, governance, program management, technology and change management. To prepare, it is important to answer the following questions: 1. What is our strategy, and how do we differentiate ourselves from peers and competitors? 2. What business outcomes are we looking to achieve through social media? 3. What is our governance model? 4. What are our roles and responsibilities, and legal, regulatory and privacy obligations? 5. What is our implementation plan, and how do we integrate it with other business initiatives? 6. What cultural factors should we consider? 7. What technology platform is suitable, and where do we host our solution and relevant data? 8. What processes do we need to manage and operate effectively? 9. What monitoring, measurement and analytics capabilities do we need? A social media strategy that supports organizational objectives will address each of these critical issues. This will ultimately position you to both mitigate risk and seize emerging opportunities. Figure 3 – An iterative process is needed for effective risk management in the rapidly changing social media landscape Collect information Assess Analyze & risks develop intelligence Plan & execute Enterprise 2.0 – Harnessing social media 7
- 10. Talk to us about developing a risk intelligent social media strategy for your organization. To learn more about how Deloitte’s professionals can help your organization balance the opportunities and risk of social media, contact your Deloitte risk management advisor. Reza Kopaee Valerie Chort 416-601-5938 416-601-6147 [email protected] [email protected] Terry Stuart Richard Lee 416-874-4341 416-874-3248 [email protected] [email protected] Brent Houlden Jennifer Lee 416-643-8788 416-874-3344 [email protected] [email protected] Terry Hatherell Perry Finklestein 416-643-8434 416-874-3196 [email protected] [email protected] Miyo Yamashita Marcel Labelle 416-601-6211 514-393-5472 [email protected] [email protected] 8 Enterprise 2.0 – Harnessing social media
- 11. Whitepaper prepared by Deloitte Enterprise Risk Services Emerging Technology Risk Group Enterprise 2.0 Kopaee and Saksham Uppal Reza – Harnessing social media 9
- 12. www.deloitte.ca Deloitte, one of Canada’s leading professional services firms, provides audit, tax, consulting, and financial advisory services through more than 7,600 people in 57 offices. Deloitte operates in Québec as Samson Bélair/ Deloitte & Touche s.e.n.c.r.l. Deloitte & Touche LLP, an Ontario Limited Liability Partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see www. deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms. © Deloitte & Touche LLP and affiliated entities. 10-693G