What Is A Social Business?

Michael Brenner

In response to my post defining social selling, I realized that I needed to take a step back what is a social business?and define “What is a social business?”

There is a lot of talk about the social business and too often it involves a discussion of social tools and channels. In this article I’ll offer my own definition as well as plenty of links to other resources you can check out for more ideas on how to help your organization transform into a social business.

A social business is not a business that sends a lot of Tweets or has a ton of Facebook likes. A social business is one that realizes that it operates in a more transparent and social world. And so it makes customers and employees equally as important as its shareholders and profits.

What is a Social Business?

A social business places equal value on the needs of its customers, employees, partners and shareholders.

This is not all that different from the concept behind one of the first posts I wrote 3 years ago this month. In that post, I talked about a book called “The Service Profit Chain” that inspired a lot of my early professional thoughts on marketing strategy.

The basic theory presented in the book was that happier employees generate more customers who create more profit for the business. Makes sense, right? Yet in the race to quarterly profits, many businesses still struggle with the concept.

More recently I talked about the many reasons why social business is important and I presented my own roadmap to become a social business including the need to define a social strategy that empowers social employees, activates effective content strategy and addresses the issue of culture.

Peter Kim from the Dachis Group offers his own definition of the Social Business as well as a Social Business Design. He identifies “culture, connections, participation and analytics” as the main drivers of an effective social business.

Charlene Li from Altimeter Group recently presented on the Evolution of Social Business and talked about the 6 stages of transformation: “Planning, Presence, Engagement, Formalized, Strategic, and Converged.” They surveyed a large swath of companies and found a small minority (28%) have achieved any level of social business maturity.

And then there’s my friend Jeremiah Owyang who not only nailed how to bring content strategy into the social business but also defined the next phase of social business as “the collaborative economy” which he defines as “where brands will rent, lend, provide subscriptions to products and services to customers, or even further, allow customers to lend, trade, or gift branded products or services to each other.”

Edelman’s Michael Brito writes that “social business is not about communication. It’s not about technology or Enterprise 2.0. It’s about change management. I believe this to my core.” And I think he’s absolutely right.

But what is the role of the Marketing leader in this emerging social business and collaborative economy?

In my view, marketing is uniquely positioned to lead this transformation. As more employees become socially active brand ambassadors and build their personal brand, marketing can act as the shepherd guiding the flock with good old fashioned marketing communications techniques that put the customer first, that are aligned to the business strategy and that deliver business outcomes.

Let me know what you think in the comments below. And please follow along on TwitterLinkedInFacebook and Google+ or Subscribe to the B2B Marketing Insider Blog for regular updates.

Photo Source


About Michael Brenner

Michael Brenner is the CEO of Marketing Insider Group, Head of Strategy at NewsCred, and the former VP of Global Content Marketing at SAP. Michael is also the co-author of the upcoming book The Content Formula, a contributor to leading publications like The Economist, Inc Magazine, The Guardian, and Forbes and a frequent speaker at industry events covering topics such as marketing strategy, social business, content marketing, digital marketing, social media and personal branding.  Follow Michael on Twitter (@BrennerMichael)LinkedInFacebook and Google+ and Subscribe to the Marketing Insider.



Recommended for you:

13 Scary Statistics On Employee Engagement [INFOGRAPHIC]

Jacob Shriar

There is a serious problem with the way we work.

Most employees are disengaged and not passionate about the work they do. This is costing companies a ton of money in lost productivity, absenteeism, and turnover. It’s also harmful to employees, because they’re more stressed out than ever.

The thing that bothers me the most about it, is that it’s all so easy to fix. I can’t figure out why managers aren’t more proactive about this. Besides the human element of caring for our employees, it’s costing them money, so they should care more about fixing it. Something as simple as saying thank you to your employees can have a huge effect on their engagement, not to mention it’s good for your level of happiness.

The infographic that we put together has some pretty shocking statistics in it, but there are a few common themes. Employees feel overworked, overwhelmed, and they don’t like what they do. Companies are noticing it, with 75% of them saying they can’t attract the right talent, and 83% of them feeling that their employer brand isn’t compelling. Companies that want to fix this need to be smart, and patient. This doesn’t happen overnight, but like I mentioned, it’s easy to do. Being patient might be the hardest thing for companies, and I understand how frustrating it can be not to see results right away, but it’s important that you invest in this, because the ROI of employee engagement is huge.

Here are 4 simple (and free) things you can do to get that passion back into employees. These are all based on research from Deloitte.

1.  Encourage side projects

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload. Let them explore their own passions and interests, and work on side projects. Ideally, they wouldn’t have to be related to the company, but if you’re worried about them wasting time, you can set that boundary that it has to be related to the company. What this does, is give them autonomy, and let them improve on their skills (mastery), two of the biggest motivators for work.

Employees feel overworked and underappreciated, so as leaders, we need to stop overloading them to the point where they can’t handle the workload.

2.  Encourage workers to engage with customers

At Wistia, a video hosting company, they make everyone in the company do customer support during their onboarding, and they often rotate people into customer support. When I asked Chris, their CEO, why they do this, he mentioned to me that it’s so every single person in the company understands how their customers are using their product. What pains they’re having, what they like about it, it gets everyone on the same page. It keeps all employees in the loop, and can really motivate you to work when you’re talking directly with customers.

3.  Encourage workers to work cross-functionally

Both Apple and Google have created common areas in their offices, specifically and strategically located, so that different workers that don’t normally interact with each other can have a chance to chat.

This isn’t a coincidence. It’s meant for that collaborative learning, and building those relationships with your colleagues.

4.  Encourage networking in their industry

This is similar to number 2 on the list, but it’s important for employees to grow and learn more about what they do. It helps them build that passion for their industry. It’s important to go to networking events, and encourage your employees to participate in these things. Websites like Eventbrite or Meetup have lots of great resources, and most of the events on there are free.

13 Disturbing Facts About Employee Engagement [Infographic]

What do you do to increase employee engagement? Let me know your thoughts in the comments!

Did you like today’s post? If so you’ll love our frequent newsletter! Sign up here and receive The Switch and Shift Change Playbook, by Shawn Murphy, as our thanks to you!

This infographic was crafted with love by Officevibe, the employee survey tool that helps companies improve their corporate wellness, and have a better organizational culture.


Recommended for you:

Supply Chain Fraud: The Threat from Within

Lindsey LaManna

Supply chain fraud – whether perpetrated by suppliers, subcontractors, employees, or some combination of those – can take many forms. Among the most common are:

  • Falsified labor
  • Inflated bills or expense accounts
  • Bribery and corruption
  • Phantom vendor accounts or invoices
  • Bid rigging
  • Grey markets (counterfeit or knockoff products)
  • Failure to meet specifications (resulting in substandard or dangerous goods)
  • Unauthorized disbursements

LSAP_Smart Supply Chains_graphics_briefook inside

Perhaps the most damaging sources of supply chain fraud are internal, especially collusion between an employee and a supplier. Such partnerships help fraudsters evade independent checks and other controls, enabling them to steal larger amounts. The median loss from fraud committed
by a single thief was US$80,000, according to the Association of Certified Fraud Examiners (ACFE).

Costs increase along with the number of perpetrators involved. Fraud involving two thieves had a median loss of US$200,000; fraud involving three people had a median loss of US$355,000; and fraud with four or more had a median loss of more than US$500,000, according to ACFE.

Build a culture to fight fraud

The most effective method to fight internal supply chain theft is to create a culture dedicated to fighting it. Here are a few ways to do it:

  • Make sure the board and C-level executives understand the critical nature of the supply chain and the risk of fraud throughout the procurement lifecycle.
  • Market the organization’s supply chain policies internally and among contractors.
  • Institute policies that prohibit conflicts of interest, and cross-check employee and supplier data to uncover potential conflicts.
  • Define the rules for accepting gifts from suppliers and insist that all gifts be documented.
  • Require two employees to sign off on any proposed changes to suppliers.
  • Watch for staff defections to suppliers, and pay close attention to any supplier that has recently poached an employee.

About Lindsey LaManna

Lindsey LaManna is Social and Reporting Manager for the Digitalist Magazine by SAP Global Marketing. Follow @LindseyLaManna on Twitter, on LinkedIn or Google+.


Recommended for you:

Transform Or Die: What Will You Do In The Digital Economy?

Scott Feldman and Puneet Suppal

By now, most executives are keenly aware that the digital economy can be either an opportunity or a threat. The question is not whether they should engage their business in it. Rather, it’s how to unleash the power of digital technology while maintaining a healthy business, leveraging existing IT investments, and innovating without disrupting themselves.

Yet most of those executives are shying away Businesspeople in a Meeting --- Image by © Monalyn Gracia/Corbisfrom such a challenge. According to a recent study by MIT Sloan and Capgemini, only 15% of CEOs are executing a digital strategy, even though 90% agree that the digital economy will impact their industry. As these businesses ignore this reality, early adopters of digital transformation are achieving 9% higher revenue creation, 26% greater impact on profitability, and 12% more market valuation.

Why aren’t more leaders willing to transform their business and seize the opportunity of our hyperconnected world? The answer is as simple as human nature. Innately, humans are uncomfortable with the notion of change. We even find comfort in stability and predictability. Unfortunately, the digital economy is none of these – it’s fast and always evolving.

Digital transformation is no longer an option – it’s the imperative

At this moment, we are witnessing an explosion of connections, data, and innovations. And even though this hyperconnectivity has changed the game, customers are radically changing the rules – demanding simple, seamless, and personalized experiences at every touch point.

Billions of people are using social and digital communities to provide services, share insights, and engage in commerce. All the while, new channels for engaging with customers are created, and new ways for making better use of resources are emerging. It is these communities that allow companies to not only give customers what they want, but also align efforts across the business network to maximize value potential.

To seize the opportunities ahead, businesses must go beyond sensors, Big Data, analytics, and social media. More important, they need to reinvent themselves in a manner that is compatible with an increasingly digital world and its inhabitants (a.k.a. your consumers).

Here are a few companies that understand the importance of digital transformation – and are reaping the rewards:

  1. Under Armour:  No longer is this widely popular athletic brand just selling shoes and apparel. They are connecting 38 million people on a digital platform. By focusing on this services side of the business, Under Armour is poised to become a lifestyle advisor and health consultant, using his product side as the enabler.
  1. Port of Hamburg: Europe’s second-largest port is keeping carrier trucks and ships productive around the clock. By fusing facility, weather, and traffic conditions with vehicle availability and shipment schedules, the Port increased container handling capacity by 178% without expanding its physical space.
  1. Haier Asia: This top-ranking multinational consumer electronics and home appliances company decided to disrupt itself before someone else did. The company used a two-prong approach to digital transformation to create a service-based model to seize the potential of changing consumer behaviors and accelerate product development. 
  1. Uber: This startup darling is more than just a taxi service. It is transforming how urban logistics operates through a technology trifecta: Big Data, cloud, and mobile.
  1. American Society of Clinical Oncologists (ASCO): Even nonprofits can benefit from digital transformation. ASCO is transforming care for cancer patients worldwide by consolidating patient information with its CancerLinQ. By unlocking knowledge and value from the 97% of cancer patients who are not involved in clinical trials, healthcare providers can drive better, more data-driven decision making and outcomes.

It’s time to take action 

During the SAP Executive Technology Summit at SAP TechEd on October 19–20, an elite group of CIOs, CTOs, and corporate executives will gather to discuss the challenges of digital transformation and how they can solve them. With the freedom of open, candid, and interactive discussions led by SAP Board Members and senior technology leadership, delegates will exchange ideas on how to get on the right path while leveraging their existing technology infrastructure.

Stay tuned for exclusive insights from this invitation-only event in our next blog!
Scott Feldman is Global Head of the SAP HANA Customer Community at SAP. Connect with him on Twitter @sfeldman0.

Puneet Suppal drives Solution Strategy and Adoption (Customer Innovation & IoT) at SAP Labs. Connect with him on Twitter @puneetsuppal.



Recommended for you:

Five Reasons Why Social Collaboration Should Be Part Of Your Digital Transformation

Daisy Hernandez

Digital collaboration technology has revolutionized how we communicate and live our lives. The digital network – powered by search, social, and gamification technologies – has enabled the easy and rapid sharing of knowledge globally. Now it is easy to communicate and collaborate with others no matter their location, time zone, or geography.

In a business context, these same technologies are powering benefits across an organization. By connecting business areas, vital information needed to make critical decisions is no longer siloed and disjointed. Add to this the ability to incorporate business data, and decisions are now not only made collaboratively, but are informed by the latest business-critical information and data, whether it is back-end customer or financial data. This is where the real business benefits start to emerge.

Gartner predicts that 50% of large organizations will use internal social networks resembling Facebook by 2016. Thirty percent of these technologies will be considered to be as essential as email and telephones. Digital transformation is underway, and by using collaboration technology with integrated business data, businesses are starting to see staggering benefits.

Social collaboration: Going beyond information sharing

One of the most well-known benefits of social collaboration in a corporate environment is faster and tighter alignment during a project or process. However, a recent study conducted by Forrester Consulting indicates that the advantages run deep, and run throughout the enterprise. The following are five business benefits collaboration can deliver to your business today.

  1. Boost win rates and accelerate the sales cycle. The average sales deal requires a team effort, with individuals and knowledge that live outside the sales department. A Web-based network, accessible through any device, helps win new business and generate more revenue. By pulling expertise, information, and customer data together in one place, sales reps are able to collaborate within and outside of their organization to respond more quickly and accurately to incoming customer questions and needs.
  1. Improve the quality of onboarding and speed new hires’ time to productivity. Social solutions bring together people from across the organization as they collaborate on projects or teams. When a new hire joins the company, this community enables quick ramp-up as the new hire is able to quickly locate and connect to the experts and information they need to complete their job responsibilities. Add to this the fact that this solution houses the collective genius and lessons learned of the organization, and the result is a dynamic, continuous learning culture.
  1. Deliver unparalleled customer experience – every time. Whenever you can provide anyone on the front lines with the full customer story, everyone wins. Knowledge networks ensure that no matter who is interacting with the customer, they have the complete picture. Integrating backend data with real-time collaboration ensures that they are prepared with the latest data at their fingertips to understand the status of a current or prospective customer. For the customer, this means a seamless experience that is always informed, relevant, and meets their needs.
  1. Support business processes that are truly efficient, transparent, and accessible 24×7. Whether you are involved in marketing, IT, finance, or supply chain operations, it is not uncommon for employees to get lost in email chains and outdated spreadsheets and reports. If the ability to collaborate resides in a central location, existing business processes can be improved and supported. More important, taking this network into the mobile world helps ensure that employees have the information they need any time and anywhere.
  1. Create a future of work that appeals to young talent. Knowledge networks can be a cultural tool that not only serves the business, but also answers the needs of our youngest talent. For Millennials, operating in a digitally connected world is a normal part of life – and they could not imagine anything different in their workplace. In the Forrester report, one hiring manager stated, “Millennials would not like to work at [a] company that doesn’t have a collaboration tool. It’s unimaginable — we can’t hire without it.” Could you? Most likely not.

Now you can be part of shaping how organizations adopt and find value in social collaboration technology. Tell us what obstacles you are facing and the benefits you are reaping by taking part in this survey to help SAP develop our future perspective on social collaboration and how it affects us all as employees, managers, and businesses.


Recommended for you: