The Facebook Effect In The Business World
What is the Big Idea?
Social media has been inspiring change in the way business leaders interact with their customer base. And for good reasons. Companies that adopt social technologies can see a 50 percent increase in customer satisfaction, 48 percent increase in business leads, and 24 percent increase in revenue, according to McKinsey.
"From the Arab Spring to the global Occupy movement, citizens of all nations are more empowered than ever before," writes Marc Benioff, Chief Executive of Salesforce.com, in BBC Business. "Connected individuals have rallied crowds, created vast audiences and toppled political establishments by communicating their message through social networks. We've also seen the impact of the social revolution on business."
What is the Significance?
When Netflix announced it was changing its pricing structure, customers protested with 82,000 negative comments. Within months, the company lost 800,000 customers and two thirds of its market value.
"That's the speed of social," said Benioff. "Everything happens faster than ever before."
Sir Andrew Likierman, Dean of the London Business School says that social media has completely disrupted the way businesses assess their performance.
"When I started my working life, it was quite easy to be mediocre and nobody really noticed," said Likierman.
These days, businesses can reach beyond traditional geographical boundaries with social media, which means they are more exposed to disruptors and competition who want to gain market share, he says.
Listen to Andrew Likierman's take on how social media is changing the way we do business:
Rather than shy from this trend, Benioff says leaders must use it to connect and engage with customers. But it takes more than a few bodies with a password to the company's Facebook page.
"To be transformative, social can't be an add-on. Social must be a strategy that is integrated into business processes across the organization," he said. "New graduates entering the workforce are frequently appalled by the technology their employers use to run their companies."
"They are frustrated by antiquated software systems that were built long before Mark Zuckerberg was even born. They want to collaborate with the best people across their organisation and to have real-time access to information, just like they have in their personal lives."
Updates that show up on the social feed should serve as a "knowledge funnel" of information and it should be a collaborative effort.
"Work itself is fundamentally social, so why can't our business apps be social, as collaborative as Facebook, as transparent as Twitter, and as engaging as Zynga's social games?"
Photo courtesy of Pan Xunbin/Shutterstock.com
Swipe right to make the connections that could change your career.
Swipe right. Match. Meet over coffee or set up a call.
No, we aren't talking about Tinder. Introducing Shapr, a free app that helps people with synergistic professional goals and skill sets easily meet and collaborate.
A NASA astronomer explains how astronauts dispose of their, uh, dark matter.
- When nature calls in micro-gravity, astronauts must answer. Space agencies have developed suction-based toilets – with a camera built in to ensure all the waste is contained before "flushing".
- Yes, there have been floaters in space. The early days of space exploration were a learning curve!
- Amazingly, you don't need gravity to digest food. Peristalsis, the process by which your throat and intestines squeeze themselves, actually moves food and water through your digestive system without gravity at all.
The Harvard psychologist loves reading authors' rules for writing. Here are his own.
- Steven Pinker is many things: linguist, psychologist, optimist, Harvard professor, and author.
- When it comes to writing, he's a student and a teacher.
- Here's are his 13 rules for writing better, more simply, and more clearly.
A growing body of research shows promising signs that the keto diet might be able to improve mental health.
- The keto diet is known to be an effective tool for weight loss, however its effects on mental health remain largely unclear.
- Recent studies suggests that the keto diet might be an effective tool for treating depression, and clearing up so-called "brain fog," though scientists caution more research is necessary before it can be recommended as a treatment.
- Any experiments with the keto diet are best done in conjunction with a doctor, considering some people face problems when transitioning to the low-carb diet.
SMARTER FASTER trademarks owned by The Big Think, Inc. All rights reserved.