Your company's Facebook makeover: A social face with skin deep value

Two years back when I wrote a point of view on the business value of social media and what it could mean for business, I pointed out 4 underlying concepts - social networking, collaboration, broadcasting, and rich user experience. With Facebook becoming a clear leader on the web today] that leverages all these concepts, CEOs, please be advised that "Facebook is not going anywhere!".

Many wise digital marketing experts will tell you that Facebook is NOT a strategy but merely a platform for effective consumer engagement, brand management, and marketing efforts. While this is quite true (technically speaking), Facebook is no more a matter of choice but a necessity for companies today.

CIOs need to seriously take a look at leveraging Facebook as an initiative to enhance consumer engagement and viral outreach. In today's web where the network is your customer, the power of 'Like' and other social plugins must not be underestimated.

Before jumping on to the Facebook bandwagon, it is advisable to first understand your consumers and build your presence around them with a 360 degree marketing strategy that connects both online and offline worlds.

In one way, it actually a good thing that the web is dead! With users spending more time on Facebook than other websites, it makes it easier for CIOs to develop an integrated online strategy. You should nevertheless take a look at your company's online ecosystem more holistically and build the right structure and processes to continuously refine it for sustainable benefits.

Web 2.0 is NOT the new Coke: Understand its value and get your enterprise ready

Can Web 2.0 positively impact business value?

CIOs and CEOs listen up! Web 2.0 is not going anywhere. This is NOT the new Coke that many hope it is. This is the beginning of digital socialism. The sonner IT realizes this, the faster it will be able to truly become a strategic partner of the business. Agreed that it is difficult to measure ROI for Web 2.0 or social media implementations but can you afford to not leverage the underlying concepts and technologies to empower your employees, untap hidden networks, enable better collaboration, and foster innovation?

Business today requires change and Web 2.0 has the potential to positively impact your business. So stop making excuses and just go for it!! And here's why (in business terms) -

Web 2.0 technology	What does it do?	Impact	Value Driver
Wikis	Allow users to contribute and share information available in real-time	Improve corporate/shared service efficiency	Reduce cost of internal business interactions > Lower Operating Margin
Social networks	Decentralize decision-making and let solutions evolve through collaboration	Increase staff productivity	Improve asset productivity > Higher Asset Turns
Mashups	Aggregate online content sources within and outside the enterprise to create new, richer services or situational applications	Increase integration efficiencies	Reduce total cost of integration > Lower Operating Margin
Blogs	Improve the ability to provide instantaneous feedback on products and services	Acquire new customers and retain current customers	Higher volume > Grow revenue
RSS feeds	Subscribe to digital content, such as news feeds, podcasts, or blogs	Improve customer interaction efficiency	Reduce cost of external business interactions > Lower Operating Margin
Web services	Help analyze and make decisions faster by making it possible for different business systems to talk to each other	Improve execution capabilities and increase business adaptability	Improve information utilization à Grow revenue
Rich internet applications	Rich user experience by bringing the interactivity of desktop applications to the web	Retain and grow current customers	Higher volume > Grow revenue

*Note: The table lists one benefit for each Web 2.0 technology in order to demonstrate its business value. The benefit may not necessarily be the most popular application of the technology.

The democratization of supply and consumption may threaten the traditional enterprise, thereby classifying Web 2.0 as a disruptive trend. However, enterprises that leverage the long tail will reap the benefits of open, continuous innovation – a sustainable competitive advantage.

So what will it take? And is your enterprise really, really ready?

As consumers and knowledge workers become more internet savvy and collaborate for information, enterprises should be better prepared to adopt Web 2.0. Today’s mainstream consumers are taking control – wanting to help each other and solve each others’ problems. Not only are consumers demanding intuitive, engaging, and relevant digital experiences, knowledge workers (consumers within the enterprise) are also demanding richer user experiences with customizable business process applications that can talk to each other. Gone are the “green screen” days of the mainframe within the enterprise. The confidence around web based technologies to run the business and the maturity and comfort of the work force using these technologies are compelling drivers for early adoption of Web 2.0.

To fully benefit from Web 2.0 technologies within the enterprise, the enterprise will not just need to be comfortable with web-based technologies, but will also need to adopt the following socially-driven business principles:

• The enterprise leverages the web to diffuse enterprise boundaries, resulting in –

a) less vertical boundaries (flatter organization structures),

b) loose horizontal boundaries (more cross-functional interactions),

c) external boundaries (customer and enterprise interactions), and

d) shrinking geographic (global business units) boundaries

• The enterprise considers open innovation as a key strategic driver to leverage the wisdom of the knowledge worker and needs of the customer for sustainable growth
• The enterprise promotes the culture of collaborating, sharing, and knowledge creation.

Once bitten by the internet revolution, the enterprise will be shy to take advantage of the Web 2.0 trends and welcome it within the enterprise. Also the decentralization of control may cause reluctance in Web 2.0 adoption, however the value created by improving the productivity of the knowledge worker and building customer loyalty far outweigh such risks.

As Web 2.0 revolutionizes innovation with its emergent, unstructured, collaborative approach, this will probably need to be one of the most influential strategic initiatives for web-based innovation within the enterprise. To reap the benefits of Web 2.0, the management needs to create a receptive culture and a common platform for a collaboration infrastructure. Interactions should be guided and not controlled. A transitional, informal rollout of the technologies is recommended more than a formal procedural change. Web 2.0 will definitely need the support from leadership but this [unstructured, let it collaboratively evolve] path to value should not be treated like just any other strategic initiative. This path does actually pledge a truly non-replicable, sustainable competitive advantage for the enterprise.