Is Social Business the Future of Capitalism?
Is social business the future of capitalism?
If the trends are any indication, there is virtually no way to avoid a head on collision with social tools and processes. Businesses that hold firm to the status quo and resist will likely be at a disadvantage.
There are several strong trends in favor of business becoming more social.
The first trend is adoption of social media by businesses. This includes both B2B and B2C businesses. Here is the latest (November 2012) Social Business Adoption Data direct from The Dachis Group:
Two-thirds of businesses are now using social technology for marketing and related functions. 37% expect social media to be used regularly across their entire business. 9% expect it to be fully integrated. – AIIM Report 2012.
79% of companies use, or are imminently planning to use, social media. Neary half of the companies who were rated as ‘effective’ in social media said it was integral to their firms’ strategy. –Harvard Business Review Analytics Services.
59% of companies use social media to engage with customers, 49% to advertise, and 35% to research customers. 30% use social media to research competitors and new products. Half, however, collect no data from social media. – Stanford Business 2012 Social Media Survey.
46% of companies globally planned to increase their investment in social media this year. However, only 22% of middle managers felt prepared to properly incorporate social media into their work. –IBM 2012 Social Business Study.
Since the common understanding of social media is through the lens of marketing and advertising via Facebook, Twitter, Google+, Linkedin and a handful of other sites, the companies that are not ideally suited for short form content marketing are holding out. Remember that social includes a huge number of things besides posting to Facebook. It includes social listening, social customer service, social reviews, blogs, commenting on blogs, and so much more. The entire web has become social and all businesses have opportunities to get involved and drive business value.
Those that are not yet a part of the world of social media are merely holding out because they don’t yet understand how it fits.
The Changing Workforce: Rise of the Millennial
Currently, 89% of 18-29 year olds use social networking sites. 18-29 year olds represent a growing proportion of the workforce. It is estimated that by 2025, millenials will comprise 75% of the workforce. If 89% of them are currently using social media, how can anyone not think that social business will be imperative?
Furthermore, if you look at some of these statistics about millennials, compiled by Dan Schawbel, you’ll see that they have very strong values and are very committed to living a balanced life that is deeply rooted in these values.
61% of millennials are worried about the state of the world and feel personally responsible to make a difference. [Huffington Post]
The traits of this incoming workforce encourages businesses to be more socially responsible, transparent and open…all hallmark qualities of a social business.
From social media marketing, to social business design, to the Collaborative Economy…this train is not stopping. Capitalism is evolving as a result of technology and social principles.
Are you on board?
Jeff Gibbard is the President of True Voice Media. With keen insights on Social Business, Marketing, Relationship Building, Communications and Creative Problem Solving, Jeff has helped numerous business people see the value in embracing social tools and processes to drive business value.
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