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Social media is already delivering tangible business benefits

For some time now, social networking has been trumpeted as the technology that will change the way we do business. However, while there have been cases of Twitter or Facebook campaigns transforming business brands and helping firms better gauge what their customers’ concerns are, there has been little tangible evidence of how social media can help bring an improvement to a company’s productivity, and ultimately, the bottom line.

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Most senior marketing and PR consultants expect to step up their spending on social media over the next year, according to a new study.

Social Media and Online PR Report 2010, by Econsultancy and bigmouthmedia, found that 83 per cent of businesses surveyed planned to spend more on social media in 2011, although a third said that limited budgets were a problem.

One way that businesses can use social media to improve productivity is to set up an internal social network. SAP’s CIO, Oliver Bussmann, recently told Computing about the need for IT companies to pioneer new technologies so that end users can follow suit. As a result, SAP set up an internal Twitter-like tool to improve communication among employees. Another IT vendor, Dell, has set up a social networking tool inside the business.

Most large businesses have an intranet and internal blogs, but in 2007, Dell took its IdeaStorm site, which allows customers to share new ideas with the company, and repurposed it to create EmployeeStorm – a site that enables Dell’s employees to air views, opinions and ideas across the business.

The tool enables employees to better communicate and collaborate, and is seen as an alternative to using email, according to Michael Buck, director and general manager for Dell’s global small and medium online business.

“It has enabled two-way communication among employees and offers a collab orative way of getting peer feedback. But the main benefit is that you get relevant business updates about what’s going on within the company,” he said.

Buck added that setting up the site was relatively inexpensive and that the main costs involved are around maintaining and refreshing content on the network.


Most senior marketing and PR consultants expect to step up their spending on social media over the next year, according to a new study.

The Social Media and Online PR Report 2010, by Econsultancy and bigmouthmedia, found that 83 per cent of businesses surveyed planned to spend more on social media in 2011, although a third said that limited budgets were a problem.

One way that businesses can use social media to improve productivity is to set up an internal social network. SAP’s CIO, Oliver Bussmann, recently told Computing about the need for IT companies to pioneer new technologies so that end users can follow suit. As a result, SAP set up an internal Twitter-like tool to improve communication among employees. Another IT vendor, Dell, has set up a social networking tool inside the business.

Most large businesses have an intranet and internal blogs, but in 2007, Dell took its IdeaStorm site, which allows customers to share new ideas with the company, and repurposed it to create EmployeeStorm – a site that enables Dell’s employees to air views, opinions and ideas across the business.

The tool enables employees to better communicate and collaborate, and is seen as an alternative to using email, according to Michael Buck, director and general manager for Dell’s global small and medium online business.

“It has enabled two-way communication among employees and offers a collab orative way of getting peer feedback. But the main benefit is that you get relevant business updates about what’s going on within the company,” he said.

Buck added that setting up the site was relatively inexpensive and that the main costs involved are around maintaining and refreshing content on the network.
Social media is already delivering tangible business benefits Reviewed by Mili and Paul on Tuesday, November 16, 2010 Rating: 5
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