Generating Social Business Value Across the Enterprise
by: Gerald C. Kane, Doug Palmer, Anh Nguyen Phillips, David Kiron, Natasha Buckley
This year’s MIT Sloan Management Review and Deloitte1 global survey found clear evidence that companies across industries are creating value with social business. A key finding is that social business value is a function of what we call social business maturity — the breadth and sophistication of its initiatives. In this year’s report, we detail the drivers of that maturity and how companies are using social business to transform their organizations and reap greater gains from their social business efforts. The following are highlights of our findings:
Social Business Grows Deep Roots
Social business is perceived as important both today and in the future.
After jumping from 52% in 2011 to 74% in 2012, 73% of this year’s survey respondents say that social business is important or somewhat important today. Nearly 90% see its importance on a three-year horizon.
Measurement sophistication is starting to prove its value.
In our first survey, “do not measure” was the most common response to questions about social business measurement. While more than half of the least socially mature companies in this year’s survey don’t measure their efforts, more than 90% of maturing companies actively do. These organizations are using a battery of measures, such as operational and financial metrics, to connect social initiatives to business outcomes. We also found a surprising common denominator among all companies, including the most socially mature: anecdotal evidence plays a major role in demonstrating the value of social business.
Social business is not just a B-to-C phenomenon.
In our two most recent annual surveys, we found that social business is important to very similar levels of respondents from B-to-C (business-to-consumer) and B-to-B (business-to-business). The impact of social business in these sectors is also comparable: nearly 60% of B-to-B companies agree or strongly agree that social business initiatives are positively impacting business outcomes. Among B-to-C respondents, the percentage is 68%.
Employees want to work for companies that excel at social business.
Some 57% of respondents say that social business sophistication is at least somewhat important in their choice of employer. That attitude is consistent among respondents aged 22 to 52.
About the Authors:
Gerald C. Kane is the MIT Sloan Management Review guest editor for the Social Business Big Idea Initiative. Doug Palmer is a principal at Deloitte Consulting LLP and leader of Deloitte’s Social Business practice. Anh Nguyen Phillips is a senior manager within Deloitte’s U.S. Strategy, Brand & Innovation group, where she leads strategic thought leadership initiatives. David Kiron is the executive editor of the Big Ideas Initiatives at MIT Sloan Management Review, which brings ideas from the world of thinkers to the executives and managers who use them. Natasha Buckley is a senior manager within Deloitte’s U.S. Strategy, Brand & Innovation group, where she researches emerging topics in the business technology market.
Bill Briggs, Jonathan Copulsky, Carolyn Ann Geason, Nina Kruschwitz, Daniel Rimm, Ed Ruehle
We thank each of the following individuals, who were interviewed for this report: Chris Andrews, managing director for the UK and Europe, Hearsay Social David Bray, CIO, Federal Communications Commission Bonin Bough, vice president of global media and consumer engagement, Mondelez International Kelli Carlson-Jagersma, vice president of internal collaboration, Wells Fargo & Co. Blake Chandlee, vice president of global partnerships, Facebook Dr. Donna Cuomo, associate director for knowledge information and collaboration solutions, Mitre Corporation Laurie Damianos, principal artificial intelligence engineer, Mitre Corporation Stan Drozdetski, user experience designer, Mitre Corporation Larry Everson, Founder, Adjuvi Melissa French, director of marketing systems, T-Mobile John Glaser, CEO of the health services unit, Siemens Healthcare Hannah Grove, executive vice president and chief marketing officer, State Street Corporation Wendy Harman, director of management and situational awareness, American Red Cross Dion Hinchcliffe, chief strategy officer, Adjuvi (formerly at Dachis Group) Elizabeth Hitchcock, director of strategy and innovation, AT&T Renee Horne, assistant vice president of social business, USAA Cordelia Krooß, senior change management expert, BASF Dr. CheeChin Liew, global community manager, BASF Gary Liu, vice president of marketing, Hearsay Social Holly Potter, vice president of brand communications, Kaiser Permanente Health Plan Patrick Sullivan, research vice president, Gartner Wayne St. Amand, former executive vice president of marketing, Crimson Hexagon Martijn van der Zee, senior vice president for e-commerce, KLM Kristin Waryas, vice president enterprise social collaboration, State Street Corporation
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1. As used in this document, “Deloitte” means Deloitte Consulting LLP and Deloitte Services LP, which are separate subsidiaries of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.
2. J. Mann, T. Austin, N. Drakos, C. Rozwell and A. Walls, “Predicts 2013: Social and Collaboration Go Deeper and Wider,” Gartner Inc. report, November 28, 2012.
3. These three drivers were identified using a decision tree analysis. Out-of-sample testing indicated the decision tree was a good fit.