Business & the Future of Social Technology

There are 1.5 billion social network users world-wide.  According to a global survey conducted by McKinsey&Company, businesses can, not only benefit from social media, but actually become more productive in the process.  

By utilizing web 2.0, as social media is often referred, businesses can virtually eliminate the wait time created when using traditional methods of business communications such as e-mail and instant messaging.  In fact according to the survey, 72 percent of the companies reported that they used some form of social technology in their day to day business.  90 percent of these businesses reported a benefit from the use of social networking technologies.

Who is using social networking? Not as many people as there should be.  The highest percentage of social technology users were middle managers at 65 percent.  Frontline users were not far behind at 60 percent. As businesses begin to utilize social networking technologies as a way to connect with their customers, it is fast becoming the trend in marketing and customer service. According to the survey, 35 percent of businesses are using social networking for customer service.

Depending how much Web 2.0 technologies are integrated into the infrastructure of the business, the benefits can range.  What can be said about using social network technologies in business is that the more “networked” a business is, the more benefits they will see—internally as well as in their customer base.  Customers are way ahead of businesses on the social networking front and businesses have a lot of catching up to do.

Using social networking both internally and externally in business can increase the speed at which information is obtained—as much as a 30% improvement according to the survey.  It can also reduce communication costs, decrease travel costs, reduce operating costs, and increase the effectiveness of marketing.