July 16, 2013 | By David Kiron, Doug Palmer, Anh Nguyen Phillips, Robert Berkman
A 2013 research report by MIT Sloan Management Review and Deloitte shows the growing importance of social business to addressing many corporate challenges. Seventy percent of survey respondents agree that social business is an opportunity to fundamentally change the way their organization works. Yet many companies face meaningful barriers to progress. In this second annual report, the authors delve into why some businesses are reaping value from social business, and what is holding others back. Key findings include:
The importance of social business is mounting. In a 2011 survey, 18% of respondents said it was “important today.” In 2012, the number jumped to 36%. The time horizon is also getting shorter. In a 2011 survey, 40% of respondents said that social “will be important one year from now.” In the 2012 survey, the number leaped to 54%.
The importance of social is growing across all industries. Between 2011 and 2012, survey respondents from all industry sectors increased the value they place on social business.
Companies are facing common barriers. Three major culprits are halting progress: lack of an overall strategy, too many competing priorities and lack of a proven business case or strong value proposition.
Companies are developing more mature social business capabilities by focusing on key business challenges. Businesses that have more developed social business capabilities don’t view social business solely as an application or tool. They have integrated it into many functions, such as strategy and operations, and use it in daily decision making. As a business solution, social has evolved, moving well beyond the marketing department, to address business objectives across the organization.