Report author: Miranda Man. Despite the growing ubiquity of social technology, many businesses are still getting to grips with what social business is. This report provides an overview of social business - and why it matters.

1. AN INTRODUCTION TO SOCIAL BUSINESS
Why does Social Business Matter?
Miranda Man, Strategist at BLOOM, October 2012

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About BLOOM Social Business
BLOOM is a social business consultancy that specialises in social business strategy,
insight and change management. We help our clients to put social media and
social technologies at the heart of their success and implement practices that
empower them to engage more effectively with their clients and communities.
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An Introduction to Social Business
Why Does Social Business Matter?
It is becoming hard to escape the term ‘social business,’ with 2012 being hailed by some
as The Year of Social Business. With the growing ubiquity of social media platforms, this
is perhaps not surprising. However, despite this, many businesses are still getting to
grips with the value of social business and what can be achieved. So, what are the
benefits of being a social business? Why does social business matter?
Firstly, it is worth looking at the state of business before social media: one could argue
that business has traditionally been social. In the first half of the twentieth century,
small family run shops were typical and were central hubs of a community. As the
century progressed, businesses up-scaled and one consequence was the greater
disconnection between the customer, employees and the business. A late twentieth
century business could hide behind the doors of Corporate Communications, HR and
Customer Services.
The social media explosion – time to ‘get social’
It goes without saying that social media has revolutionised the way humans interact and
communicate and businesses are very keen to ‘get social.’ However, Facebook and
Twitter presences are all very well but if they are just another arm of PR and a method
solely to push out corporate messages, then they do not constitute social business. This
use of social media does not constitute the traits of a social business and is at odds with
the participative and conversation based user experience behind social media.
So what constitutes social business? (This is not a definitive description!)
A social business fosters interactions between the customer and the company,
encouraging two way communication. A social business operates transparently and
publically, not behind the closed doors of corporate communications.
Some good examples of Twitter being used to engage with customers include train
companies and BT, two industries that have their fair share of angry customers. National
Rail is using Twitter to push through real time information and responses to their
customers. Similarly, BT has a dedicated customer care channel. Using Twitter enables
the companies to use a more human rather than corporate voice and to provide quick
responses.
Why should this matter?
The customer now has a powerful voice, amplified by social media. It is now much
easier for customers to connect with other customers. More importantly, bad peer
reviews can be devastating – if a customer does not like a product or service, they can
share their views quickly with a very wide audience.
Whilst a late 20th century business sold products or services, businesses today are more
about selling the actual customer experience. For example, Zappos has made a
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successful business by providing excellent customer service, which has been powered by
social media.
Social business therefore matters to actively and openly engage with customers.
Social on the outside, social on the inside
Whilst connecting openly with customers is important, this is only half of the story. A
business needs to engage with their employees too or they risk delivering a false brand
promise: wonderfully engaged and customer friendly social media presences but
disconnected employees behind closed, company doors. A social business should be
social on the inside too.
Traditional business structure v Social business structure
Traditional businesses tend to be structured by hierarchy: employees have their place in
a top down organisation structure. Open dialogue between Chief Executive and staff is
difficult, and employees are typically unaware of anything that is going on in other
departments. This closed culture leads to information silos and a disconnected working
culture.
In a social business however, where the principles of social media are applied, hierarchies
do exist but are supported by networks. Communication is more flowing and two way.
There is increased visibility of what other employees are doing through ambient
awareness. A social business also encourages collaborative working and, similar to Agile
principles, puts human interaction above processes. Whilst social tools such as wikis and
networking platforms are facilitators, it is worth stressing that social business is not about
the technology: the internal culture and perceptions are key.
Why should this matter?
A socially calibrated business is simply more efficient: increased visibility and greater
sharing leads to better decision making, effective working and improved staff morale.
This can have business benefits: an engaged employee is more likely to be a company’s
or department’s best advocate, amplifying messages to their network.
Grant Thornton and Nokia are two good examples of socially calibrated businesses.
Grant Thornton UK, part of the global tax and advisory firm, have integrated social
business into their strategic aims. Nokia have also incorporated social into their business
strategy and have implemented Agora and Socializer, tools that help employees to keep
in-tune with their customers and also open up communications between employees.
The way forward in the 21st century is social
A social business fosters customer, company and employee interaction: it encourages
transparency and openness. In whole, this has a humanising effect on business – putting
people and relationships at the core of business strategy. All businesses can surely
benefit from having more engaged customers, an increased social reach and more
productive employees: that is why social business matters.
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Want to find out more?
If you are interested in finding out how social
business could work for you, please contact us!
miranda@bloomworldwide.com
+44 (0) 1273 862340
@bloomworldwide
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