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Social Media at the Tipping Point:

Why CFOs Must Get Social


AFSN&OracleWhitePaper
2 Social Media at the Tipping Point -AFSN&OracleWhitePaper
Contents Introduction 3
What is Social Media? 4
Leveraging Social Media:
theexternalperspective 4
Leveraging Social Media:
theinternalperspective 5
Where is the ROI 7
The barriers to uptake of Social Media 8
How Oracle responds to the challenge 9
Summary 9
3 Social Media at the Tipping Point -AFSN&OracleWhitePaper
Introduction
Accordingtoa2012McKinseysurveyof1,500C-levelsworldwide,mostsaythatthreekeytrendsindigital
businessnamely,bigdataandanalytics,digitalmarketingandsocial-mediatools,andnewmobileand
cloudcomputingplatforms-arestrategicprioritiesattheircompanies.Overathirdoftheseexecutives
predictthatthesetechnologieswillboostoperatingprotsby10percentoverthenextthreeyears.
1
Yet
whichoftheseemergingtechnologiesshouldCFOsconsiderwhenlookingtodriverealbusinessvalue?
OracleandFinancialExecutivesInternational(FEI)recentlysoughttoanswerthatquestionbyasking90
NorthAmericanCFOsandseniornanceexecutivestorankthebusinessvalueofkeydigitalbusiness
trendsfortheirorganization.
Figure 1. CFOs rank the value of key trends in digital business
Of these, which do you feel will deliver the
most business value for your organization?
32 (46%)
Mobiletechnologies-46%
Cloudcomputing-33%
10 (14%)
Socialmedia-SocialNetworking-6%
23 (33%)
4 (6%)
BigData-14%
Source:FEI-Oraclewebcast,August7,2012.
Mobileandcloudcomputingplatformsrankedhighestintermsofbusinessvalue,earning46percent
and33percentoftheranking,respectively,followedbybigdatawith14percent.CFOsonlyallocated
6percentoftheirvotestosocialmediaandsocialnetworkingtechnologies,reectingtheskepticism
manyCFOsfeelaboutthevalueofsocialbusiness.
MostnanceexecutivespointtothedifcultyofdevelopinganeffectiveROIstrategyforsocialbusiness
initiatives,becausetraditionalnancialmetricsusedtoevaluatethepaybackonITinvestmentsarent
oftenapplicabletosocialtoolsandtechnologies.Othersareconcernedwithinformationsecurity,
governmentregulationsondataprivacy,andthelackofacoherentmanagementvision,strategy,and
structurearoundenterprise-widesocialinitiatives.
Despitetheserisks,theriskofdoingnothingwhenitcomestosocialmaybegreaterthanmanyCFOs
believe.Socialnetworkingsitesnowreach82%oftheworldsonlinepopulation.Increasingly,online
consumerswantasocialrelationshipwiththebrandstheyareinterestedin,notonlytolearnmore
aboutacompanysproductsandservices,butalsotovoicetheiropinionsandexperiencesgood
andbad. Morethan75%ofconsumershavepostedanegativecommentonasocialsiteafterapoor
customerexperience,and89%haveshiftedtoanotherbrandafterabadcustomerexperience.
2
Ignore
theseconsumersatyourownrisk,saysocialmediaconsultantsBarbaraGiamancoandKentGregoire,
whoadvisedreadersoftheHarvardBusinessReviewthatwhilesocialmediasellinghasrisks,sitting
onthesidelinesisthegreatestriskofall.
3
RecentresearchpointstothefactthatC-levelsarentsittingon
thesidelines,butratherrampinguptheirsocialbusinessactivities If you were a CFO back in
inpursuitofnewgrowth.A2012studybyMITSloanandDeloitte the early 1990s and I came
Consultingasked3,500executivesfromcompaniesin24industries
to you and said I wanted to
across115countriesabouttheimpactofsocialtoolsand
implement e-mail, and you
technologiesontheirbusinesses.Surveyrespondentsagreedthat
asked, Whats the ROI?
theprimaryroleofsocialbusinesstoolsandtechnologiesisto
Could you have gotten an
enablecustomerserviceandhelptheircompaniesinnovatefor
answer? Social media has
competitiveadvantage.
4
Theyalsopredictedthattheimportanceof
become table stakes.
socialsoftwarewillincreaseby250percentby2015,asitbecomes
integratedwithenterpriseapplications,businessprocessesand
Nigel Fenwick, Forrester
systemstodriveafundamentalsocialtransformationofthe
Research Principal Analyst
enterprise.ThisincludeschangingMarketing,Sales,Service,
HR/TalentManagement,andERPbysociallyenablingthesebusinessprocesses.
Justasforward-lookingcompaniesarealreadyrelyingonsocialbusinessstrategiestoinnovateinareas
likecustomerserviceandcompetitiveinnovations,forward-lookingCFOsareusingsocialbusiness
toolssuchascrowd-sourcingtodriveknowledgemanagement,collaboration,processimprovement,
andinnovationbothwithinthenancefunctionandmorebroadlyinsidetheenterprise.Someusethe
4 Social Media at the Tipping Point -AFSN&OracleWhitePaper
What is Social
Business?
Leveraging Social
Business:
TheExternalPerspective
consumersentimentanalysistheytrackonFacebook,Twitter,andothersocialwebsitestovalidateor
tweakproductforecasts.
Thiswhitepaperexaminesthetransformationalimpactofsuccessfulsocialbusinessinitiatives,
bothbeyondandwithintheenterprise.ItchallengesCFOstotakealeadershiproleinhelpingthe
organizationachieverealvaluefromsocialbusinessbypartneringwithmarketing,sales,andother
organizationstocreatenewwaystomeasureandmonitorinvestmentsinsocialactivities.Thiswhite
paperalsoexaminestheorganizational,technological,andhumancapitalrequirementsCFOsneedto
helpmakesocialbusinessprojectssuccessful,andreviewsthesolutionsOraclehasinplacetosupport
socialbusinessefforts.
Socialbusinessisdenedbythesocialnetworkingplatforms,socialmedia,andsocialtoolsand
technologiesthatallowindividuals,companiesandotherorganizationstocollaborateandcommunicate
incommunities.Facebook,Linkedin,Twitter,YouTube,andPinterestareprominentexamplesofexternal
socialplatforms,butsocialbusinessalsoextendsintotheenterprisethroughsocialcollaborationtools
builtintoenterpriseapplications,suchasOracleWebCenterandOracleFusionApplications.
ThegrowthinthenumberofuserssharingthebestknownsocialplatformssuchasFacebookand
Twitterhasbeenbreathtaking.AsofDecember2011,Facebookclaimed800millionusersworldwide,
with50percentloggingoneachday.Twitterreportedanaverageof460,000accountscreatedperday
lastfall,withanaverageof1billiontweetsperweek.AsofNovember2011,Linkedinhad135million
membersinmorethan200countries,withtwonewusersjoiningeverysecond.
7
Usernumbersofthisscaleandsizecannotbedismissedasafad.Thesetechnologiesaredeeply
embeddedinpeopleslivesandintricatelyintertwinedwitheachother.Today,consumersintheU.S.,
Europe,andAsiaspendmorethan2hoursdailysocializingontheirsmartphones.Celebritiesare
alreadyadeptatbuildingtheirbrandutilizingsocialnetworksandcompaniesarebeginningtofollow
suit.AsofDecember2011,StarbuckshadovereightmillionFacebooklikesforitsFrappuccino,and
Coca-Colahadaround32millionFacebookfans.
7
ButhowdoCFOstranslatethepopularityofsocialnetworksintobottomlineimpactandtoplinegrowth?
Despitetherapidriseofsocialbusinessupthecorporateboardagenda,manybusinessesareonly
justbeginningtodipatoeinthewater.Whilesomeusesofsocialmediacouldbecharacterizedas
experimentalandopportunistic,otherbusinesseshavenotchedupnotablesuccessesonthebackof
deliberate,well-denedsocialmediastrategiesthatsupportbrandbuilding,productinnovation,and
creativenewwaysofdeliveringproductsandservices.
Brand building
TakeforexamplethecaseofMcDonaldsandthelaunchofitsMcRib-alimited-time-offersandwich.
AccordingtoRickWion,thecompanysdirectorofsocialmedia,theproductquicklyestablishedaloyal
fanbaseravingabouttheproductinsocialmedia.
Whathappenednextwasinspirational.McDonaldsidentiedandengagedwiththreesuperfans:one
hadbuiltaFacebookpageforMcRib;anotherhadwrittenabookchapteraboutMcRib;andathirdbuilt
aGooglemapofMcRiblocations,sothatotherpeoplecouldndtheproductintheirvicinity.McDonalds
invitedthethreefanstoamedialaunch,connectedthemwithbloggers,andusedthemtotelltheMcRib
storythroughFacebookandTwitter.ThecombinedeffortscreatedahugebuzznotonlyinMcDonalds
targetaudience,butalsohadanunexpectedrippleeffect.AccordingtoWion,Peoplewereasking,what
isallthisbuzzabout?IveneverhadMcRibbefore.Imgoingtotryit.Imgoingtobuyit.Thebuzzof
thecorebroughtinabrandnewaudience.
ThecaseofProcter&Gambleprovidesanothercompellingexampleofhowsocialmediacanbeused
torevitalizeatiredbrandaswellasgeneratecompellingreturns.SalesofProcter&GamblesPepto-
Bismolhadbeenatordecliningforseveralyearswhenin2010,P&Gmarketersnoticedthatsocialmedia
chatteraboutthepinkindigestionrelieverwasoccurringonSaturdayandSundaymorningspresumably
afterusershadoverindulgedthenightbefore.SoP&Gdecidedtotrytolurepotentialcustomersbefore

5 Social Media at the Tipping Point -AFSN&OracleWhitePaper


Leveraging Social
Business:
TheInternalPerspective
theireatinganddrinkingbingesbytoutingtheproductonFacebookwiththeupbeatsloganCelebrate
Life.Theresultwasan11percentmarket-sharegaininthe12monthsthroughfall2011.
9
Crowd-sourcing innovation
DanishtoycompanyLegoGroupplannedtolaunchanewproductbasedonapopularvideogame.
Butinsteadofconceptualizingtheproductinternallyviaproductdevelopment,(asitwouldhavedone
traditionally),theideaforthetoycamefromanadultLegofanwhosubmittedtheideathroughLego.
Cuusoo.Com,awebsitewhereLegoenthusiastssubmitandvotefornewideas.Within24hours,the
newideareceived10,000votesandgotthegreenlightforproductionfromLegomanagementwithina
month.
2
Delivering new products and services
AmericanExpresshasstartedtoputsocialattheforefrontofeverythingthattheydofroma
communicationsstandpoint.AnexampleofthattheSmallBusinessSaturdayspromotionAmerican
ExpresslaunchedaftertheThanksgivingholidayin2010,tohelppromotesmallbusinessesduringthe
holidayseason. Cardholdersweregiven$25giftcardstouseattheirlocalsmallbusiness,andsmall
businesseswereoffered$100inFacebookadvertisingcredits.SmallBusinessSaturdayresultedin
increasedsalesforthesmallbusinessesthattookpartintheschemeby27percentandgrewover1
millionfansfortheSBSFacebookPage.
5
SmallBusinessSaturdayhasnowbecomewhatmanywouldargueisthethird-largestsalesholiday
afterBlackFridayandCyberMonday,intermsofreturnoninvestment.Asaresult,AmericanExpress
hasseenusageofitscardnetworkgrowfrom10-25percentduringtheSmallBusinessSaturdays,
helpinggeneratesubstantialadditionalrevenueforAmericanExpressandincreasedsalesforsmall
businessesinlocalcommunities.
ExternalusesofsocialmediatendtodominatetheheadlinesbutenlightenedCFOsarediscovering
thattheinternalapplicationofsocialmediaalsoprovidesrichopportunitiesfordrivinginnovation,
productivity,andprocessimprovement. Betterstillitcanactasalowrisk,lowcostentrypointintothe
worldofsocial,actingasaproofofconceptbeforeapplyingsocialtoolstoexternalinteractions.
BecausesocialbusinessstrategiesrankloweramongCFOsthanotherdigitalbusinesstrends,not
surprisingthatreportedcasesoftheinternalapplicationofsocialtoolsinthenancefunctionare
relativelyscarce.However,issuesofcommunication,collaborationandsharingbestpracticetranscend
functionalboundaries.Therearemanylessonsthatcanbedrawndirectlyfromtheearlyexperiencesof
pioneersinotherdisciplinesevenifthecontextisdifferent.Itmaybeinstructivetoconsiderrstwhat
thecontextforsocialmediainthenancefunctionmightbe.
Communication challenges in the nance function
Inthetransaction-orientedworldofnance,thekeytoenhancedproductivityhasbeenthe
standardizationandautomationofcorenancialprocesses;hence,theriseinpopularityofERP
systems,sharedservices,andworkow.Forthelasttwodecades,theabilitytouneventfullyprocess
transactionsattherstattempthassteadilybroughtdowntheaveragecostofatransactionand
increasednancefunctionproductivity.Straight-through-processinghasbeenahugesuccess.But
whathappenswhenatransactiondoesnotconform?Whenadisputearisesoranerroroccurs?
Thecostofxingawrongtransactionisabout80percentmorethanoneprocessedcorrectlyattherst
attempt.Whencracksappearinautomatedsystems,workersresorttoavarietyofcommunications
methodssuchasemail,telephoneconversations,ad-hocmeetings,andwalkingthecorridorsofa
buildingtogettheinformationtheyneedtoremedyaproblem.Onaverage,workersspend25percentof
theirworkingdaysimplylookingforinformation.
Thesamethingistrueofcoreperformancemanagementprocessessuchasnancialreporting,
budgeting,planningandforecasting.Know-how,creativity,professionaljudgment,persuasion,
negotiationandcommunicationarethehallmarksoftheseprocesses,butthesesofterattributesare
notwellcateredtobytraditionalnancialapplications.
AddingtothatproblemisthefactthatGenerationYworkers-thechildrenoftheBabyBoomersare
hittingtheworkforcerightnow.Theyaresteepedintheimmediacyoftheinternet,andthespeedand
6 Social Media at the Tipping Point -AFSN&OracleWhitePaper
varietyofcommunicationssuchasTwitter,Facebook,Skype,andInstantMessaging(IM).Theyhave
instanteverything,choosetheinformationtheywant,andpersonalizethewaythatitisdelivered.Their
leisureuseoftheinternetbearsnoresemblancetotheclunkyandinertuserexperiencewhichis
commonplaceinthebusinessworld.CFOsmayndthatattractingandrecruitingtoptalentintothe
nancefunctionwillbeachallengewithoutmodernsocialtools.
Sowhereisthebigpay-offforCFOwhoseektodeploysocialcollaborationtoolsinthenancefunction?
Althoughitisearlydays,thefollowingsixareasareonesthatholdthemostpromisebasedontheearly
experiencesofrstmovers.
Crowd-sourcing ideas and innovation
Strategydevelopment,enhancingbusinessperformance,settingaccountingpolicies,process
improvementanddeliveryofvaluetointernalcustomersintheorganizationareallareasthatrequire
creativityandprofessionaljudgment.Theabilitytodrawontheskillsofthewholenancefunctionisa
worthyprize.Imagineforexample,crowd-sourcingideasfortheaccelerationofthenancialreporting
process,improvingmarginsinunderperformingbusinessunits,standardizingprocesses,reducing
inventoryandmanagingrisk.
FinancialservicesgiantCapitalOneshowedhowusingjustaprivateFacebookgroupalloweditto
facilitatetwiceasmuchinteractionbetweenteammembers,aswellassharearticlesandinsightsmuch
moreeffectively.AndbecauseFacebookisconnectedtoemployeessociallives,theFacebookgroup
promotedconnectionthroughouttheday.ForTomPoole,managingvicepresidentofmobileandsocial
mediaatCapitalOne,theFacebookinitiativesurpassedhisexpectations:Whenyouhaveanideayou
shareitandyourehearingbackanhourlater.Thisislighteninginabottle.
4
Knowledge Management
AccordingtoJohnHagelIII,co-chairmanofDeloittesCenterfortheEdge,successintodaysdigital
economyincreasinglylieswiththosewhoknowhowtomanagetheowofknowledge.Increasingly,
theabilitytosucceedhingesonparticipatinginabroaderandmorediverserangeofknowledgeows,
bothinternallyandexternallytotheenterprise,notedHagelintheMITSloan/Deloittestudyonsocial
business.
4
Financeprofessionalsarehighlyqualiedknowledgeworkersbuthowmuchofthatknow-howis
shared?Usingsocialtools,aCFOcanencouragetheevendistributionofbestpracticeandensure
thataccountingpoliciesandinterpretationofnewaccountingstandardsisrolledoutcompletelyand
consistently.HewlettPackardCEOLewPlatthitthenailontheheadwhenhesaid,IfonlyHPknew
whatHPknows,wedbethreetimesmoreproductive.
4
Enhanced Communication and Collaboration
CFOsresponsibleformanagingdistributednancefunctionsoperatingindifferenttimezonescandraw
inspirationfromtheexperienceofCraigHerkert,CEOofSUPERVALUaretailer,whousedasocialtool
-Yammerinthiscase-todriveupstorerevenue.
4
Likemanydistributedorganizations,Herkertsmanagementteamstruggledtogetvisibilityofthe
businessandsharebestpractice.Communicationsbetweenstoremanagersweread-hocandmeetings
onlyoccurredonceayearatSUPERVALUsannualconference.UsingYammer,somestoremanagers
begansharingideasandphotosofsuccessfulmerchandisedisplaysandspecials.Anexperimentrun
duringtheholidayperioddemonstratedthatthatstorestakingpartintheYammerinitiativehad13
percentmorerevenuethannon-participatingstores.
Anotherexampleishowsocialbusinesstoolcanstreamlinekeyprocesseslikereconciliationsorthe
monthlycloseprocess.Ageneralaccountingmanagerorsupervisorlookingathowaccountbalances
havechangedovertimecandrilldowntoseewhichemployeerecordedthejournalentry,thenreachout
tothatemployeethroughthesocialnetworkingtoolsembeddedinOracleFusionFinancialstoverifyits
accuracy.Iftheentryhappenstobeapayablesinvoice,youcouldseeandcontactthesupplierdirectfor
thatinformation,savingtimeandspeedingupthereconciliationandclosingprocesses.
Enterprise Search
SocialtoolsembeddedinERPandothernancialsystemsraisesthepossibilityofgreatlyimproved
accesstoinformationandproblemresolutionwhenthingsgowrong.Mostsocialmediaencourage
userstofollowanindividualortobefollowed.Thiscanbetakenastepfurtherinanancesettingby
allowingaccountingandnancepersonneltofollowapieceofmetadatasayaproductoracustomer
7 Social Media at the Tipping Point -AFSN&OracleWhitePaper
Where is ROI?
toretrievevitalinformationinalessstructuredway.Anance
user,forexample,couldreceiveaconstantfeed(automatically)
Sixty to seventy percent
ofeverythingthatissaidordoneaboutthatindividualcustomer
of headcount time in most
orproductwithinthesystemandthenshareitwithcolleagues,
functions is consumed by
inthewaythatothersocialmediaallowinformationtobe
handling exceptions, i.e.
distributedtorelevantgroups.
things that get thrown out
of automated processes.
Deeper Insight
John Hagel III, Co-chairman,
SentimentAnalysisprovidesfascinatingopportunitiesforCFOsto
Deloitte Center for the Edge
improvetheaccuracyofbusinessforecasts,bycombiningopinion
harvestedfromsocialmediawithestablishedapproachestonancial
forecasts.
Itworksbysamplingexternalviewsofacompanyanditsproductsdirectlyfromsentimentsexpressed
incommentspostedinsocialnetworkssuchasFacebookandTwitter.Avarietyofspecializedsearch
enginesallowsimultaneoussearchingofmultiplesourcesofsocialmediacommentaryanduse
sophisticatedalgorithmstoconvertnaturallanguage(Ilikethisproductorthisproductisreallynot
bad)intoquantiedexpressionsofsentiment.
Thiskindofanalysisofforward-lookinginformationcanshedlightonwhetheranewlylaunchedproduct
isbeingwellreceivedorrejected,andcanthereforebeusedtoimprovetheaccuracyofprotforecasts.
Itisthebeginningofaveryinterestingjourney.Thesearchtoolsarerelativelyprimitive,thedatabases
aretrulymassive,andthealgorithmsarecomplexbutthepossibilityofcapturingandutilizingsentiment
inbusinessforecastingispotentiallyveryrewarding.
Stakeholder engagement
Socialnetworkingcanbeusedtopromotebetterengagementwithinvestorsandotherinterestedreaders
ofnancialinformation.Inthesocialmediafrenzythathaseruptedoverthelastfewyearsitisnolonger
possiblefororganizationstoexertthesamelevelofinuenceovertheirbrand,forexample,toensure
thatcommunicationsareaccurateandfair.Bulletinboards,investorgroupsandnewssitesoftencontain
erroneousinformationpostedbyindividuals.Ratherthanstandingidlyonthesidelines,CFOsandInvestor
Relationsprofessionalscanusesocialmediaasatooltoengagewithinvestorsandotherstakeholdersto
clearupmisunderstandingsandprovidemoreinformationabouttheircompany,itsproducts,sustainability
policies,greencredentials,communityeffortsandemployees,togiveabalancedview.
CFOslookingforquantitativewaystomeasuretheirsocialinvestmentsmayneedtorethinkhowthey
evaluatethepayofffromthoseinvestments,whetheritsthroughtheuseofsocialmediatolowercall
centerandcustomerservicecosts,tocreatebrandawarenessforanewproduct,ortointeractwith
consumersinnewways.CalculatinganROIonSocialBusinessinvestments(socialnetworksandsocial
marketing)isacontentiousarea.Oneschoolofthoughtsuggeststhatitisinappropriatetoattributean
ROIatsuchanearlystageofsocialmediadevelopment.Afterall,manyendeavorsareexperimental.
Objectively,thereisnodoubtthatidentifyingcauseandeffectisachallenge,butthenotionthat
businessesshouldabandonROIdoesnotsitwellwithCFOswhotendtoviewinvestmentsinsocial
mediathroughthelensoftraditionalinvestmentappraisaltechniques.However,notallsocialmedia
initiativeslendthemselvesreadilytothiskindofscrutiny.
TheAmericanExpressandProctorandGambleexamplesgivenearlierillustrateclear-cutreturns,but
theMcDonaldsandLegocasesareperhapsmoretypicalofthesocialmediagenre.Thereisnodenying
thattheycreatedvalue,butwhatexactlywasthereturnoninvestment?Howdoesanorganization
quantifythereturnoncrowd-sourcinganideaforanewproduct?AndinthecaseofMcDonaldshow
muchoftherevenueattributabletosalesofMcRibwasdowntoWord-of-MouthratherthaneWord-
of-Mouth?AllthissuggeststhatthewayCFOsevaluateROIneedstochangetomoreaccuratelytake
accountoftheuniquecharacteristicsofsocialbusiness.
OnecharacteristicthatisspecictosocialnetworksandwellillustratedbytheMcDonaldsandLego
examples,isthesignicanceofcommentary,reviews,FacebooklikesandTwitterfollows.In
particular,theMcDonaldsMcRibcampaignvividlyillustratestheabilityofindividualstoinuence
readersviaasocialnetworkonatrulymassivescale.
8 Social Media at the Tipping Point -AFSN&OracleWhitePaper
The Barriers to
uptake of Social
Business
Indeed,20percentofonlineconsumersareconsideredHighSharers.Theyaretypicallyyounger,more
activeonsocialmediasites,usemultipledevicestoaccesstheInternet,andarepronetocreateoriginal
onlinecontent.HighSharersareoftenloyaltospecicbrandsandarealmostthreetimesmorelikelyto
recommendproducts/servicestoothersthroughsocialmedia.
9
Industryanalystsnotethat60percentofpeoplewhousesocialmediaalsopostreviewsonproductsand
services.
7
Similarly,55%ofbuyersturntosocialmediawhentheyaresearchingforinformationbefore
makingapurchase.
3
Giventhosefacts,themetricsbywhichCFOsgaugethesuccessofsocialmedia
initiativesneedtochange.Eventrustedmeasuresassociatedwiththeinternetage(pageimpressions,
clicksanduniquevisitors)arerenderedlesspotentintheeraofsocialmediawhichfrequentlycombines
thecomplexinteractionsofseveralsocialnetworksrunninginparallelwithinasinglecampaign.New
measuresofsocialbusinesswillneedtorecognizecommunityengagementasacentralplankofsuccess
andincludemeasuressuchasnumberandpercentageoffansorfollowers,numberandpercentageof
positivecustomermentions,andnumberandpercentageofTwittermentions.
Justifyingsocialmediaendeavorsinsidetheenterprisecanbejustasdifcult,althoughtherearebright
spotsasillustratedbytheSUPERVALUexperimentmentionedearlierwhichledtoconcretereturns.
Onehelpfulfeatureisthatsocialmediaisrelativelyinexpensive.Forexample,theCapitalOnecase
illustratesthatthebenetsofsharingknowledgeandinternallycrowd-sourcingideasandinnovationis
availableforaslittleasthepriceofsettingupaFacebookgroupforthenancefunction.
ButCFOsneedtobeawarethattherearealsoriskstoROIonthehorizon.Althoughconsumersaround
theworldseemincreasinglywillingtodivulgemorepersonaldatatocompaniesthroughsocialmedia
platforms,companieswhichinvestinexpandingtheiraccesstosocialmediacouldndthemselves
increasinglyatoddswithgovernments.DraftEuropeanUnionLawisexpectedtocomeintoforceby
2015whichwillincreaseconsumersrightstomovetheirdatabetweenvendorsortoselltheirpersonal
datatothirdparties.
8
Forinstance,aconsumercouldsellthedetailedcontentoftheirutilitybilltoan
intermediary,whocouldthenmatchtheirusagewithacompetitorslowertariff.Similarly,downloading
medicaltreatmentrecordscouldencourageincentivestotransferbetweenhealthinsurers.Ina
nutshell,companiescouldspendaconsiderableamountofmoneyandeffortcollectingsocialdataonly
tonditsoldontoacompetitor.CalculatingROIlookssettobecomeevenmorechallengingforCFOs.
Themainimpedimentstorollingoutasocialbusinessinitiative,whetherinsideoroutsidethe
organization,revolvearoundmanagementdisagreement,lackofanagreedvision,competinginitiatives,
andthedifcultyofdemonstratinganROI.UnliketheotherbigtechnologytrendssuchasBigDataand
Analytics,Mobile,andCloudComputing,technologyinfrastructureissuesappeartobelessofaconcern.
BecausesurveyspointtosignicantlydifferentlevelsofenthusiasmforsocialmediabetweenCEOs,
CFOsandCIOs,itnotsurprisingthatmanyorganizationsstruggletodevelopacogentsocialbusiness
strategy.TheperceivedlackofmeasurableROIisadrawback,especiallyinthefaceofcompeting
Cloud,MobileandBigDataprojectswhichcanbeeasiertomeasureareturn.Itisalsoearlydaysfor
socialbusiness,andunliketodaysGenerationYyouth,manybusinessleadersareunfamiliarwiththe
workingsofsocialnetworksandarenotsufcientlyinformedtolenddirectsupporttonewinitiatives.
Culturally,socialnetworkingcanbeviewedasathreattoorganizationsormanagersthatareless
openorinsecureaboutsharinginformation.Therearealsolegalandotherrisks(libel,defamation
andreputationalrisk)thatcanpotentiallystietheuseofsocialmediaininteractionswith
employees,customersandsuppliers.Someorganizationshavemisguidedlybannedsocialmediain
theworkplacealtogether.
Butthesebarrierstoprogressareephemeral.Asexperienceofsocialmediagrowsthemeansto
measureROIwillfallintoplace,seniormanagerswillbecomemorefamiliarwiththebenetsandsocial
mediawillenterthemainstreamofbusinessstrategy.
9 Social Media at the Tipping Point -AFSN&OracleWhitePaper
How Oracle
responds to the
challenge
Summary
Inbroadterms,socialnetworksarehostedinthepublicCloud.Consequently,responsibilityfor
infrastructure,security,andservicecontinuityvestslargelywithorganizationssuchasTwitterand
Facebook.Thekeychallengeisnotrawcomputingpower,asitmightbewithaBigDataproject.Rather,
theoverridingneedistoeffectivelyintertwine,coordinate,andmeasureinteractionsacrossmultiple
socialnetworksandchannelsofcommunication.
ThisiswhereSocialRelationshipManagement(SRM)comesin.SRMisaboutbuildingpersonaland
engagingrelationshipswithprospects,customers,inuencers,partners,candidatesthroughmultiple
socialmediachannels.Tosucceedindoingthis,youneedtouseanintegratedSRMplatformthat
enablesyouto:
listen, engage, market, and analyze social interactions
have a complete view of your constituents, including engagements from both traditional and social
channels
Be integrated with your enterprise business processes and systems
OracleSRMoffersthemostcompletesocialproleforemployees,consumers,andorganizations
byprovidingaggregateddatafromenterpriseappsandsocialdata,enrichedwithdatafromtrusted
externaldatasources.OracleSRMprovidesintegrated,complete,andenterprise-classsolutionsto
enableengagementwiththeentirebrandasasingleentityacrossallthesocialnetworksandchannels.
OraclesSocialRelationshipManagement(SRM)platformwasdesignedwiththeneedsofglobal
campaignsinmind.ItprovidesanintegratedplatformforSocialMarketing,SocialSellingand
Commerce,aswellasSocialServiceandSocialIntelligence.SocialMarketingconsolidatespublishing
activitiesbystreamliningthemanagementofcontent,communitiesandreporting.SocialSellingand
Commerceallowtheenterprisetoidentifyandtargetpotentialinuencersandbuyersfromsocialdata
aswellasmakepersonalizedrecommendationsanddiscountoffers.SocialServiceprovideslistening
andmonitoringtoolssothattheorganizationcanrespondtocustomerrequests.Finally,Social
Intelligenceprovidesuser-denedreportingandperformancemeasures.
McDonaldsisoneoftheinternationalcompaniestobenetfromtheOracleSRMplatform.Itneeded
tomanageagloballyfranchisedbrandandcentralizethemarketingmessagewhilemaintaining
communitieslocally.UsingOracleVitrue,McDonaldswasabletohaveasinglecorporateFacebook
Pagewhileallowingmarketmanagerstoengagefansintheirlocalmarkets.Eachmarketisnow
abletocustomizecontentfortheirsegmentbasedonzipcode.VitrueTabsincludesover50modules,
allowingMcDonaldstofullycustomizethefanexperienceontheirFacebookPage.
Socialnetworkingandsocialmediaaretransformingthewaythatbusinessesgotomarket.The
phenomenoncanbeharnessedtoaccelerateandbroadenbrandawarenessaswellasencourage
innovationutilizingleadingedgetechniquessuchascrowd-sourcing.Earlyadoptersofthetechnology,
suchasMcDonalds,AmericanExpressandProcterandGamblehaveseenresoundingsuccessfrom
theirinitiativeswhichhaveincludedproductlaunchesinsocialnetworks,closerengagementwith
customersandthere-vitalizationofestablishedbrands.
Internally,manyorganizationshaveseenquickwinsfromleveragingsocialtoolssuchasenhanced
collaboration,knowledgesharingandcrowd-sourcedinnovationoftenatlittlecost.
However,despitesteadilyincreasingexamplesofthesuccessfulapplicationofsocialnetworking,
CFOsaremoreskepticalthantheircolleaguesatleastintheshortterm.Longertermmostagree
thatsocialnetworkingwillbecomeanessentialbusinesstool.However,atthisearlystageofmarket
maturityitseemsthatCFOshavereservationsabouttheROIofsocialbusinessinitiativesandthelack
ofaclearstrategyfordeployment.TraditionalmeasuresofROIarenotuptothejobofrecognizingthe
complexityofsocialnetworkinginteractionsorthespecialcharacteristicssuchascommentarywhich
candrasticallyaffecttheoutcomeofacampaign.Newmeasuresarerequiredwhichputcommunity
engagementattheheartofperformancemeasures.
Therearealsoculturalissueswhichareactingasabrakeonprogress.Unliketheyoungergeneration
intheworkforce,seniormanagershavedifcultyvisualizingandworkingwiththesenewtools.
10 Social Media at the Tipping Point -AFSN&OracleWhitePaper
Anotherchallengeismaintainingbrandconsistencyacrosssocialbusinessinitiativeswhichcross
multiplenetworksonaglobalscale.Fortunately,newtoolssuchasOracleVitruethatcombine
publishingactivities,promotesocialbusinessandprovideimportantmonitoringandreportingcapability
arenowavailabletohelpmanagemultinationalcampaigns.
Overallthereisconsiderableoptimismsurroundingsocialbusiness.Itisrmlyontheboardagenda
ofleadingcompaniesandalthoughitisearlydays,thestoreofknowledgearoundhowtocapitalize
onsocialtoolsisgrowingallofthetime.Mostcompellingly,therateofsocialnetworkgrowthisso
dramaticandpervasivethatbusinesseswhichfailtogetinvolvedriskgettingleftbehindintheracefor
bothprotsandtalent.
11 Social Media at the Tipping Point -AFSN&OracleWhitePaper
Bibliography
FSN
Oracle
Disclaimer of
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Liability
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McKinseyGlobalSurvey,Minding Your Digital Business,McKinsey&Company,2012.
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RightNow2011CustomerExperienceImpactReport:GettingtotheHeartoftheConsumerandBrandRelationship.
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Giamanco,BarbaraandKenGregoire,Tweet Me, Friend Me, Make Me Buy,HarvardBusinessReview,July-August2012.
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MITSloan/DeloitteGlobalStudy,Social Business: What Are Companies Really Doing?2012.
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Oracle/WallStreetJournalCFORoundtable,June2012.
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Nagy,Jennifer,How to Increase the ROI of Social Media Marketing,HufngtonPost.com,July26,2012.
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Rosenbaum,David,Whos Out There?CFO.com,February1,2012.
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Shameless Self-Promotion,TheEconomist,September1,2012.
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Coleman-Lochner,Social Networking Takes Center Stage at P & G,BusinessWeek.com,March29,2012.
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