By now you have all heard of the importance of incorporating a social media strategy in to your organization’s overall strategy. LinkedIn, Facebook, Twitter, blogs, RSS Feeds, YouTube, podcasts, etc … we all know we need them but do we really know why?
McKinsey, a global management consulting firm, has studied how enterprises have used social media technologies over the past four years – and how those technologies have impacted their bottom line.
Dubbed “the network enterprise”, a new kind of company has emerged in today’s society. The network enterprise is one that “uses collaborative Web 2.0 technologies intensively to connect the internal efforts of employees and to extend the organization’s reach to customers, partners and suppliers”.
3,249 executives were surveyed in this study, responding to questions based on their organization’s Web 2.0 use, measureable benefits and overall impact as a result of their social media engagement. Here are some key findings:
- 2010 showed significant increases in the percentage of organizations using social networking (40%) and blogs (38%)
- Nearly 2/3 of respondents plan to increase future investments in Web 2.0 technologies (up from ½ in 2009)
- Organizations that utilize Web 2.0 technologies within their own corporate walls (“internally networked organizations”) experience greater collaboration across silos, more readily share information (and at an increasing speed), reduced communication costs, increased customer satisfaction and significantly more flexible processes
- Companies that use Web 2.0 technologies to extend interactions beyond corporate walls to customers and business partners (“externally networked organizations”) experience increased effectiveness of marketing (including awareness, consideration and loyalty), increased customer satisfaction and a reduction in marketing/support costs
- Organizations whose Web 2.0’s widespread use in day-to-day activities involving employees, customers and business partners (“fully networked enterprises”) experience the highest satisfaction among employees and customers/partners, promoting high levels of collaboration and increasing information flows by breaking down organizational barriers that impede processes
Written by RLA Associate Meghan Vincent. Meghan can be contacted at: firstname.lastname@example.org