Extracting the benefits from social tools and techniques requires an upfront understanding of business objectives and an implementation plan that infuses traditional systems with greater collaboration capabilities.

1. • Cognizant Reports
Making the Case for Social Computing
Extracting the benefits from social tools and techniques requires an upfront
understanding of business objectives, as well as an implementation plan that
infuses traditional systems with greater collaboration capabilities to engage
with internal and external stakeholders.
Executive Summary social technologies need to be integrated with the
Social computing has captivated the corporate communications infrastructure and linked with
world as organizations seek to engage with specific business activities.
customers to build brand advocacy. The busi-
ness world has begun using social technologies As with many IT projects, social initiatives must
to achieve numerous goals, including recruit- be business-driven. If they are championed only
ment, service innovation, brand management, by the IT department, social projects tend to
corporate reputation and greater collaboration become one-off platforms, not business-wide
across the ecosystem of employees, partners and solutions. Shifting the mindset from providing a
customers. platform to delivering a solution, our research
shows, is crucial for social computing to succeed.
Insurance companies are using social computing
for policy underwriting, while the manufacturing Social Computing Trends
sector has successfully used it for project man- One of the key trends for social is that every orga-
agement and compliance. Organizations across nization has embraced it in one way or another.
industries have also used social tools and tech- Companies might start with a very small initiative,
niques to decrease the overall time to resolution like opening a Twitter account, or they may take
for technical services. an enterprise-wide approach, such as developing
a social strategy and supporting it with an enter-
Companies tend to begin by deploying social prise-wide employee collaboration application or
tools and technologies as standalone systems. a social platform to better connect consumers
They then integrate these systems with enter- with their brands.
prise applications, such as customer relation-
ship management (CRM), content management, The enterprise-wide approach calls for a bet-
compliance and search, to derive greater busi- ter IT policy environment and more collabora-
ness benefits. To ensure usability and relevance, tion between business units and the IT function.1
cognizant reports | october 2012

2. Social Computing Trends
Social Web
Organization
Marketing, communication, CRM,
1. Organization is using Target groups,
recruiting, employer branding,
social media channels potential employees,fans
innovation, crowdsourcing
Employees using social media
News channels,
2. Employees are publicly communicating friends of employees,
via social media platforms
Internal social external stakeholders
collaboration
Pressure groups,
Business politics, 3. External stakeholders are former employees,
certain products and services communicating about the organization customers and suppliers
via social media
Source: “Protecting and Strengthening Your Brand,” Ernst & Young, May 2012, http://www.ey.com/Publication/
vwLUAssets/Protecting_and_strengthening_your_brand_Social_media_governance_and_strategy/$FILE/Insights_
on_IT_risk_Social_media.pdf.
Figure 1
Doing so will result in several benefits, including The adoption of social technologies is becoming
improved engagement with consumers and other pervasive across diverse industries, from high
stakeholders, better employee communications technology to energy (see Figure 3, next page).
with internal and external business partners and
a centralized place for external stakeholders to The use of social technology has both strategic
converse about the organization (see Figure 1). and tactical imperatives. For instance, driving
innovation is considered to be as important as
While organizations have started finding new uses locating experts and expertise. Other important
for social computing, enhancing the relationship objectives include corporate alignment and strat-
with consumers is still the top priority.2 Increas- egy, on the strategic side, and customer service,
ingly, they are using this medium for recruitment, on the tactical side (see Figure 4, page 4).
product or service innovation and brand manage-
ment (see Figure 2).
Expanding or Initiating Now
80%
Marketing and sales
70% 66%
62% Business development/
59% 59% 58% 57%
60% research
50% Customer service (i.e., feedback,
support, handling complaints)
40%
Corporate brand and
30% reputation management
20% Recruitment/alumni
10% Product and/or service innovation
(i.e., coinnovation, crowdsourcing,
0% knowledge resource)
Source: “Going Social,” KPMG International, 2011, http://www.kpmg.com/GE/en/IssuesAndInsights/ArticlesPublica-
tions/Documents/Going-social-survey-2011.pdf.
Figure 2
cognizant reports 2

3. Social technologies today are deployed primar- Social computing software that encourages
ily in two broad areas: internally for employees enterprise-wide collaboration is predicted to grow
and externally for customers, consumers and at a CAGR of 61% from 2010 to 2016, according to
partners (see Figure 5, next page). The technolo- Forrester Research, Inc., with the total market for
gies are used to better engage with various com- social products and services estimated to reach
munities (employees, customers, etc.) and drive $6.4 billion by 2016. Such products are expected
effective collaboration among stakeholders for a to enhance employee productivity by evaluating
specific business process. and aligning processes, information and people
with the needs of the organization.5
Social Computing Outside the Organization
Customer-facing departments were the first to Social computing is also driving innovation at
adopt social technologies, by creating a presence some companies by influencing or enabling
on Facebook, Twitter, Linkedin and blogs, since new ways of working. For instance, video col-
these were the channels where customers were laboration is increasingly finding acceptance in
spending the most time. These channels were an organizations, with video-based conferencing
easy way for them to connect and engage with implemented by more than a quarter of the orga-
customers.3 For example, telecom companies nizations surveyed by Forrester in a 2010 study
began using Twitter to provide better customer (see Figure 6, page 5).
service to their consumer base. Now, organiza-
tions use social to fulfill end-to-end processes for Social computing allows best practices to be
customers, such as buying clothes directly from shared across the organization to solve complex
Facebook after consulting with their friends on business problems by, for instance, enabling
the site, and posting a review after the purchase. communities of experts to collaborate. For
example, a U.S.-based midsize property and
Social Computing Within the Organization casualty insurance company is piloting an inte-
Organizations also use social technologies to grated social networking solution in its auto-
connect employees with each other and with mated policy underwriting system, in order to
partners and suppliers. Those that do are more enable expert input.6 Another example is a lead-
likely to be market leaders, gain more market ing U.S.-based manufacturer of fastening systems
share and boost profit margins.4 for the aerospace industry, which implemented
social software to increase the productivity of its
Adoption of Social Technologies Across Industries
Percent of respondents using at least one social technology tool
High-tech, telecommunications 86
Business, legal, professional services 77
Public administration 74
Pharmaceuticals 74
Retailing 69
Transportation 69
Healthcare, social services 67
Manufacturing 64
Financial services 64
Energy 62
Base: 4,261
Source: Jacques Bughin, Angela Hung Byers and Michael Chui, “How Social Technologies are Extending the Corpo-
ration,” McKinsey Quarterly, November 2011, http://www.mckinseyquarterly.com/PDFDownload.aspx?ar=2888.
Figure 3
cognizant reports 3

4. Social Technology Drivers Vary from Tactical To Strategic
“For which of the following activities is your firm currently using social technology?”
Marketing activities 54%
Customer service activities 45%
Reducing travel costs for meetings 45%
Communicating with employees 42%
Enabling more effective work among
42%
geographically dispersed teams
Capturing and sharing knowledge 39%
Working with partners or suppliers 32%
Managing projects 31%
Foster collaboration within a division or group 29%
Making best practices easier to find and share 27%
Locating experts and expertise 25%
Driving innovation 23%
Building communities of interest or practice 23%
Driving corporate alignment and strategy 20%
Recruiting internally for projects or initiatives 19%
None 7%
(Percent of respondents)
Base: 262 senior-level IT decision-makers (multiple responses accepted)
Source: “Social Networking in the Enterprise: Benefits and Inhibitors,” Forrester Consulting and Cisco, May 2010,
https://www.cisco.com/web/offer/gist_ty2_asset/SocMednInhib/SocNW_En_TLP.pdf.
Figure 4
project team. Targeted areas for improvement in the statistically significant correlation among
were project management and compliance. As certain business processes and self-reported
a result of the implementation, compliance time corporate metrics, such as the following:
was reduced by 64% (see Figure 7, next page).
• Market share gains.
Social Benefits • Operating margins compared with competitors.
Organizations have reported market share gains • Market leadership.
when using social technologies.7 This is visible
Deployment of Social Technology
Customers
Social
Employees
Partners
Enterprise
Consumers
Network • Share • Collaborate
Source: Cognizant Technology Solutions
Figure 5
cognizant reports 4

5. Videoconferencing Apps On The Radar
“What are your firm’s plans to implement or expand its use of the following collaboration and
communication technologies in the next 12 months?”
E-mail 34 45 3 10
Team document-sharing sites
33 32 10 15
(e.g., SharePoint, eRoom, Lotus Quickr)
Web conferencing 32 35 10 13
Room-based videoconferencing
30 32 8 16
(including telepresence)
Calendar 24 45 4 10
Instant messaging 22 36 7 14
Desktop videoconferencing 21 26 9 24
0 10 20 30 40 50 60 70 80 90 100
(Percent of respondents)
Expand/upgrade existing implementation Implementing/implemented Piloting Interested/considering
Base: 262 senior-level IT decision-makers (”Decreasing,” “Removing” and “Not interested” responses not included)
Source: “Social Networking in the Enterprise: Benefits and Inhibitors,” Forrester Consulting and Cisco, May 2010,
https://www.cisco.com/web/offer/gist_ty2_asset/SocMednInhib/SocNW_En_TLP.pdf.
Figure 6
The impact of social is also seen in self-reported have also encountered challenges along the way.
corporate performance metrics (see Figure 8, For starters, organizations are finding it is more
next page). beneficial to pursue social initiatives as an end-
to-end business strategy instead of a stand-alone
Challenges project within a business function such as sales,
Although adoption of social computing within service and marketing. It is, therefore, impor-
the organization is growing rapidly, companies tant to identify processes and apply social as an
Monthly Compliance Hours & Wiki Creation
700 5,000
600
4,000
500
Compliance Hours
Wiki Creations
3,000
400
300 2,000
200
1,000
100
0 0
Jan. ‘07 May ‘07 Sept. ‘07 Jan. ‘08 May ‘08 Sept. ‘08 Jan. ‘09 May ‘09 Sept. ‘09 Jan. ‘10 May ‘10
Cumulative creation Pre-Wiki Post-Wiki Trendline Pre-Wiki Trendline Post-Wiki
Source: “Social Software for Business Performance,” Deloitte Development LLC, 2011, http://www.deloitte.com/
assets/Dcom-UnitedStates/Local%20Assets/Documents/TMT_us_tmt/us_tmt_%20Social%20Software%20for
%20Business_031011.pdf.
Figure 7
cognizant reports 5

6. enabler of improved effectiveness, efficiency and employees fear that their statements on social
collaboration among stakeholders. media could be used by their employer to analyze
their behavior, making them reluctant to express
In this spirit, and to achieve maximum benefits, it their opinion even on intra-company platforms.
is important to consider the technology aspects There must be a concerted and visible effort to
of integrating social technologies with enterprise- allay such fears. And, as noted earlier, once social
wide core applications to fulfill an entire process. computing has been tested in one process within
Companies should begin by focusing on one an organization, it should be integrated across
process in which social computing is used, such lines-of-business.
as CRM. After the initial foray is successful,
they can gradually extend social computing to all One reason for the lack of integration is that
processes in the organization. many social initiatives are launched to serve a
specific need at the grassroots level, or they are
Moreover, social computing today often revolves driven by top management. When initiated at the
around just touching base with individuals. grassroots level, the tool selected may not be
Instead, this initial contact could and should appropriate for the larger organization, resulting
be further utilized for innovation. Lastly, many in the loss of any knowledge that is generated.
Correlations with Corporate Performance
Processes that significantly Correlation P-value (less than
correlate with self-reported coefficient (higher = 0.05 = statistically
corporate performance metrics greater correlation) significant)
Market share gains Using social technologies to scan 0.263 0.007
external environment
Using social technologies to match 0.422 0.002
employees to tasks
Positive change in level of social 0.254 0.001
technology integration into day-to-
day work (2010-11)
Operating margin Level of social technology 0.130 0.016
compared with integration into day-to-day work
competitors
Share of employees using intranet to 0.007 0
conduct transactions
Using social technologies to assess -0.325 0.035
employee performance
Positive change in level of social 0.276 0.007
technology integration into day-to-
day work (2010-11)
Market leadership Fully networked -0.616 0.019
(i.e., first in
industry share)
Externally networked -0.444 0.001
Percent of employees using social -0.014 0
technologies
Share of online sales 0.004 0.044
Level of social technology 0.135 0.005
integration intoday-to-day work
Share of employees using intranet to 0.003 0.021
conduct transactions
Source: Jacques Bughin, Angela Hung Byers and Michael Chui, “How Social Technologies are Extending the Corpo-
ration,” McKinsey Quarterly, November 2011, http://www.mckinseyquarterly.com/PDFDownload.aspx?ar=2888.
Figure 8
cognizant reports 6

7. When implemented from the top, the business • Begin with a clear strategy and roadmap
impact may not be visible to all employees. For for social engagements, based on overall
example, employees may not be aware of met- business objectives. Define specific use cases
rics for measuring ROI on social media, such as that would be deployed in social, along with a
“media equivalent value.”8 selection of technology solutions. For example,
if the business goal is to improve overall cus-
Also, when social computing policies are tomer service, identify which social engage-
implemented from the top without consideration ments would better achieve that — opening a
of employee opinion, the impact might be dissi- Twitter account or creating a knowledge man-
pated. Business needs may not be understood at agement system? Based on these various busi-
the time of implementation, or employees might ness use cases and the technology options,
game the system to meet the requirements, for prioritize based on cost and business impact.
example, by creating fake testimonials.9 • For social to succeed internally as well as
externally, obtain support and participation
Another consideration is employee education. from top management. As part of the road-
Companies need to educate employees on how to map, it is important to establish clear buy-in
engage in social media without opening security and active participation to ensure the orga-
gaps. A basic step is to caution them about divulg- nization is ready to connect and collaborate
ing corporate plans on social networks, even by with its stakeholders using social. Today, many
simply relaying cautionary tales. CEOs have started to use social themselves in
the role of brand ambassador and are looking
An example is a large manufacturing company, to connect in a social way with customers and
whose executives announced its major expan- employees.
sion plan on Facebook and Twitter. The idea was • Consider social from a process standpoint.
to improve shipping times by launching a state-of Identify an end-to-end process and evaluate
the-art warehouse. how social can help improve it. For this to hap-
pen, social technologies need to be tightly
On the day of the move to the new location, sev- integrated with their core enterprise applica-
eral individuals wearing the uniforms of a large tion so that, from a customer or stakeholder
logistics company drove off with more than $1 mil- viewpoint, it is a seamless experience instead
lion worth of equipment.10 The lesson: Think twice of two different channels.
before broadcasting strategic business plans on • From an ongoing operations standpoint,
social media, as you have no control how far the clearly define the social media policy, along
message is being spread, nor what people might with a dedicated team and structure to effec-
do with that information. tively manage the initiative.
A Roadmap These are some of the key points to keep in
Organizations need to consider social comput- mind from a long-term strategy perspective.
ing not as a one-off technology or business solu- Remember, social is just another channel of
tion but as an enterprise-wide initiative. They can analytics or unstructured data; however, it is also
achieve this by focusing on the following: an increasingly important part of how business is
done today.
cognizant reports 7

8. Footnotes
IT Consumers Transform the Industry: Are You Ready?” IDC, May 2011, http://www.ca.com/~/media/
1
Files/whitepapers/signature-research-idc-whitepaper-final.pdf.
2
“Going Social: How Businesses Are Making the Most of Social Media,” KPMG International, 2011,
http://www.kpmg.com/GE/en/IssuesAndInsights/ArticlesPublications/Documents/Going-social-
survey-2011.pdf.
3
Michael Stelzner, “Social Media Marketing Industry Report, 2011,” Social Media Examiner,
April 2011, http://www.socialmediaexaminer.com/SocialMediaMarketingReport2011.pdf?9d7bd4.
4
Jacques Bughin and Michael Chiu, “The Use of Web 2.0 in Businesses,” McKinsey & Co., Dec. 13, 2010,
http://www.mckinsey.com/insights/mgi.
5
“Enterprise Social Software to Become a $6.4 Billion Market in 2016,” Forrester Research, Inc.,
December 2011, http://www.pcworld.com/businesscenter/article/245375/forrester_enterprise_social_
software_to_become_a_64_billion_market_in_2016.html.
6
“Social Networking in the Enterprise: Benefits and Inhibitors,” Forrester Consulting and Cisco,
June 2010, https://www.cisco.com/web/offer/gist_ty2_asset/SocMednInhib/SocNW_En_TLP.pdf.
7
Jacques Bughin, Angela Hung Byers and Michael Chui, “How Social Technologies are Extending the
Organization, McKinsey Quarterly, November 2011, http://www.mckinseyquarterly.com/PDFDownload.
aspx?ar=2888.
8
Media equivalent value is the equivalent, in money terms, of the impressions that have been generated
through social computing that would otherwise have been acquired through paid media.
9
“Social Software for Business Performance: The Missing Link in Social Software: Measurable
Business Performance Improvements,” Deloitte Development LLC, 2011, http://www.deloitte.com/
assets/Dcom-UnitedStates/Local%20Assets/Documents/TMT_us_tmt/us_tmt_%20Social%20
Software%20for%20Business_031011.pdf.
10
Minda Zetlin, “Unintended Consequences: How to Keep Social Media from Becoming a Security Risk,”
Inc., Jan. 11, 2011, http://www.inc.com/internet/articles/201101/unintended-consequences-how-to-keep-
social-media-from-becoming-a-security-risk.html.
cognizant reports 8

9. Credits
Authors and Analyst
Sanjay Fuloria, Ph.D., Senior Researcher, Cognizant Research Center
Yuvaraj Velusamy, Researcher, Cognizant Research Center
Subject Matter Expert
Amit Shah, Manager, Cognizant Social
Design
Harleen Bhatia, Creative Director
Suresh Sambandhan, Designer
About Cognizant
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