Will social technologies improve performance?

English: A tag cloud (a typical Web 2.0 phenom...
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One of the most challenging questions… Will enterprises benefit of Web 2.0 deployments and will such technology improve performance?

On the one hand you see by far too much time spent on Facebook these days and statements like “my whole life is there” are not such unussual amongst the young generation. Therefore, the question is not how you make them use it (they already do) but what benefit you have as a company from using such technologies?

McKinsey’s conclusion is that companies are improving their mastery of social technologies, using them to enhance operations and exploit new market opportunities (“How social technologies are extending the organization,” McKinsey Quarterly, November 2011). They asked 4,261 global executives how their organizations deploy social technologies, including social networking, blogs, video sharing and microblogging, and the benefits gained. The 2011 survey reports that when adopted at scale across an emerging type of networked enterprise and integrated into the work processes of employees, social technologies can boost a company’s financial performance and market share, also confirming last year’s survey results.

I find not quite spectacular the four clusters that emerge from McKinsey’s analysis:
1. Executives at internally networked organizations note the highest improvement in benefits from interactions with employees;
2. Executives at externally networked organizations note the highest improvement in interactions with customers, partners, and suppliers;
3. Executives at fully networked organizations report greater benefits from both internal and external interactions (this result is easy to be assumed out of the first two);
4. In the fourth and by far the largest group, developing organizations, respondents report lower-than-average improvements across all interactions at their organizations.

It’s clear that there is an improvement in communication, especially for large inter-regional organisations but you don’t need a study to know that. What I would be interested in is how this is linked to performance on the job also this would be more difficult to find out once it becomes a way of life and business. Looking ahead three to five years, many respondents expect still more profound organizational changes. They say that with fewer constraints on social technologies at their companies:

  • Boundaries among employees, vendors and customers will blur.

I would raise a red flag here as this might be a signifficant risk management issue.

  • More employee teams will be able to organize themselves.

I would consider it one of the most relevant benefits.

  • Data-driven decision-making will rise in importance.

I’d also add a red flag here considering that Web 2.0 gathers unstructured data and the real challenge will be how to manage such information in a structured way.

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6 thoughts on “Will social technologies improve performance?”

  1. As you mentioned it can improve performance or not. It all depends on how you are putting that into practice and what risks you need to consider.

  2. Interesting blog, just subscribed. Waiting for new articles, not a very high frequency as I see ;)

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