When I read one of the major findings in a recent report by IBM Corp. (NYSE: IBM) -- that technology is the most critical factor impacting corporations today -- my first thought was: "Duh." But as I continued to read, it became clear that this was not a "Dog Bites Man" story. The technology that IBM talks about is not just focused on the software or hardware that helps build better widgets. Rather, the most useful technology these days is the technology that brings people together: social networking.
The report, "Leading Through Connections: Insights from the Global Chief Executive Officer Study" (PDF), is based on face-to-face conversations with more than 1,700 CEOs worldwide. Since IBM began the bi-annual study in 2004, technology has risen from No. 6 to the top spot. It's now ranked higher than people skills and market factors.
"As we looked across the whole of CEOs' responses, one consistent theme emerged: an overwhelming focus on changes in how people engage with the organization," the report says. "The view that technology is primarily a driver of efficiency is outdated; CEOs now see technology as an enabler of collaboration and relationships -- those essential connections that fuel creativity and innovation."
A key to business success will be how effectively companies can connect and collaborate -- with customers, their own employees, and partners. In fact, the ability to collaborate was the most commonly cited trait CEOs wanted from their employees.
With customers and business partners, CEOs see social media as a key enabler. More than half expect social channels to be a primary way of engaging customers within five years. Companies are also investing in data analytics to convert customer data into insights and insights into action. More than 70 percent of the CEOs are looking for ways to understand customers and improve responsiveness. CEOs, particularly those in the electronics (86 percent) and automotive (80 percent) sectors, are making major changes to respond better to individual customer needs. "This is now a continuous feedback kind of world," said one CEO. "We need the organizational nimbleness to respond."
This feedback loop will include business partners, for better or worse, according to the report. "In a world of increased transparency and instantly disseminated social media, organizations are often judged by their partners' actions, not just their own." CEOs expect the use of partnerships to increase more than 50 percent over the next three to five years. And those partnerships need to be deeper, more integrated, and stronger than ever. The ideal is that collaboration and communication is so tight among partners that any shift in consumer needs or desires is felt and draws an immediate reaction all along the supply chain.
In the report, an electronics industry CEO from Japan discussed how his company is helping its B2B customers innovate by "incorporating the end user's voice directly into product development."
The bottom line: Technology is making more and deeper connections among people and corporations possible. Those companies that recognize and use these connections effectively stand to gain a competitive edge.
Hey Andy--I've started to wonder lately whether a person or organization can rack up so many "likes" that it begins to dilute the value of "likes" in the first place. I guess from a business or product standpoint, "likes" are a good thing in terms of rating the product or service. But an organization's ability to connect with these customers becomes more difficult with every addition. If an organization focuses only on the critics, it risks alienating its fans. I'm sure businesses have figured out ways to strike a blance...I'd be interested in hearing about some success stories.
@Barb -- Good point Barb. In my book, a 'LIKE' is just a number and I give it more freely than I would direct praise or criticism. The sad truth is that follows, likes, etc are not as personal -- not taken so seriously as a testimonial, though I know that is what they are meant to stand for. But how important, really, is a mini-testimonial that you obtained because you offered someone the chance to win an iPad? What is important is what the company does once they have made the connection with you.
@Talex: I believe that people are more likely to post a negative view than a positive one in general. I know I'm more motivated to write letters or make phone calls when something goes wrong. I try to compliment people/companies when things go right, but to follow up with a "like" on the Internet...not so much
@t.alex -- That's probably not too uncommon. The answer to that question depends a lot on the grey area that exists between commerce and social connection. Should we complain openly about anyone on our friend list? If so, should they be on there?
Social Media from the business perspective is a very different thing than having a personal Facebook page or connecting with someone you like on Google+. The business side requires constant attention, vigilance, and clarity. If you think twice about what you normally post to your personal accounts, then think 4 times really hard about what you are posting for your business.
And if the two are mixed for someone, I would say to defer to the more stringent rule-set and make sure every post is delivering the appropriate message for your business.
Fascinating stuff, Andy: social networking improving a brand image. I think there is a case to made for that. Customers would feel they are being listened to and that the CEO is an accessible human being. I've seen it work in several cases--OnStar reversed its decision on tracking users partially based on social media feedback.
First of all, how can I *LIKE* Bolaji's post on here? :)
Second, great article, Tam. I like the description of the world of 'continuous feedback'. The medium is called Social but technology growth would have fueled and necessitated something similar eventually. We have and want the ability to be real-time in all things, or at least in those things in which we choose to be so.
I read a great related article on Sprout Social yesterday about the study...loved the teaser headline: "CEO Participation in Social Media Increases Customer Spending" -- was more taken though, by this statement:
'71 percent of customers polled said CEO participation in social media leads to improved brand image.'
I agree. I even like to see a successful leader stumble while learning to use Twitter--figuring out hashtags and @'s vs DM's. Its fun, honest, and human. And I believe those three things describe why social media is still growing.
Social networking is more about how do you connect with friends and other people around the world. The importance of customer is more and more put in first place by many companies which is mainly due to competetion and at the same time the power of todays communications. The good will or the bad things about any company wil go across the counties with in seconds and could improve/kill business instantly. So it is very important to connect to customers in a very loyal way to any company these days.
Qualcomm has launched a big push to spread its cellular technology, and thus increase its royalty income, not to mention chip sales, beyond mobile phones.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
While no one really can accurately predict the future, we can take guidance from another Drucker saying which is the best way to predict the future is to create it.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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