How many companies have a dedicated person or team with “social media” as its portfolio? Judging by a straw poll among a dozen or so chief information officers who attended a recent Brainstorm roundtable, the answer is, surprisingly, about a third. Even in the private sector, it's less than half.
While large companies talk the innovation talk, their walk is about “process flexibility”, “risk management”, “security” and other concerns. Valid though these concerns are, that many aren't even putting their toes in the water is a little surprising.
Traditionally, technology developed in a fairly simple, predictable pattern. Multiple innovations emerged, small companies took the risk, one or two emerged as de facto standards, and big companies eventually picked the winners. Rinse, repeat.
These days, however, things move so fast that by the time you're ready to pick a winner, the world has moved on. It's old-fashioned, stagnant and pass'e. Who wants to jump on a bandwagon that's got a wheel in the ditch?
The self-appointed “social media experts”, who actually are just early adopters, are wondering what will be to 2010 what Twitter was to 2009 and Facebook was to 2008. Those “new media” platforms are spoken of in the past tense. Things move much too fast to build slow, corporate procedures around.
Likewise, the ability to respond to volatile markets, sudden external events, emerging trends, and nimble competitors, no longer means launching something in the same year, or responding within a month. It means launching next month, or responding tomorrow.
Companies that do have social media portfolio owners are discovering rewards that make the risks worthwhile. Ask companies which do use social media how much it means to respond to an angry customer as soon as they whine on Twitter or Facebook. Not only does this enable them to set the (usually exaggerated) public record straight, but the viral nature of such complaints is nipped in the bud, and a once-angry customer is not only retained, but can be turned into a vocal promoter of the brand.
Ask companies which do use social media how much it means to recruit a kick-ass marketer or technologist by rustling them up exactly where they hang out. Being able to fill a high-power slot in a matter of hours is what makes it possible to innovate quickly. Being able to bounce ideas around with customers, competitors, and smart, interested observers, is what can make rapid innovation rich and successful. And if something doesn't work, just move on. In three weeks, nobody will even remember it.
Who wants to jump on a bandwagon that's got a wheel in the ditch?
Ivo Vegter, ITWeb contributor
Ask customers how much it means to think they're at a dead end, only to find that one contact somewhere in their social network that makes miracles happen in a flash. That buys more loyalty than a year's worth of special offers and club discounts.
It is perfectly understandable that large companies demand proper processes and oversight. They are not only subject to heavy regulatory governance burdens, but also do not have an at-a-glance overview of their processes in the same way a small fast-moving start-up does. They can't even trust their staff in the same way, since the personal relationships aren't as strong in a large company, so being reluctant to depend on them for critical on-the-spot decision-making is quite reasonable.
However, simply neglecting the fast-moving world of social media goes far beyond corporate prudence or managing complexity. It risks missing the boat entirely on major technology developments and market trends, and begs customers to leave your company behind as backward, boring and inadequate.
At the very least, a big company should have a sort of new-technology research lab, stocked with a few smart, responsible people with a broad understanding of marketing, your own products, and technology. There, they can develop ways to interact with and exploit the cutting-edge, high-speed, high-value world for which the 1990s-era Internet was just the basic infrastructure. Who knows, it could even lead to innovative new products that take your company to the next level or trounce your competitors. After all, many game-changers aren't designed by committee, but happen purely by accident.
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