Social Media's Productivity Payoff - James Manyika, Michael Chui, and Hugo Sarrazin - Harvard Business Review
This is one of the surprising takeaways from our recent research on the economic impact of social technologies. The business world knows (or thinks it knows) a lot about how social technologies are changing the world. With consumers spending gobs of time in online communities (more than 1.5 billion consumers around the globe have an account on a social networking site and almost one in five online hours is spent on social networks), marketing departments have increasingly shifted their attention to social media. They’re not only advertising and creating their own social sites, they’re engaging with consumers, listening in on unfiltered conversations, and soaking up huge amounts of data on consumer behavior — all of which is producing nifty new insights for fine-tuning product requirements and marketing messages.
It’s powerful stuff that will continue to evolve and change the way that companies market to consumers and B2B customers. But, it turns out that there’s something even more powerful at play: the potential for value creation when social technologies are used to improve collaboration and communication within and across enterprises is twice as big as the value that can be created through all other uses across the value chain.