Social Business Strategies Rise in Importance, but Hurdles Remain
The MIT and Deloitte report indicated that 36 percent of respondents called social business important compared to just 18 percent last year.While social maturity may be lagging, perceived importance of social business is mounting, according to the results of MIT Sloan Management Review and Deloitte’s second annual global survey of more than 2,500 business executives on social business. The report, "Social Business: Shifting Out of First Gear," found that when asked to rank their company’s social business maturity on a scale of 1 to 10, with 10 being the highest score, more than half (52 percent) of respondents from around the world gave their company a score of 3 or below. Just 17 percent ranked their company at 7 or above. The report also indicated that 36 percent of respondents called social business "important" compared to just 18 percent last year. This increase in importance is reported across many industry sectors, and the report said this was due to three major culprits halting progress in social maturity, including a lack of an overall strategy (28 percent of respondents), too many competing priorities (26 percent) and lack of a demonstrated business case or strong value proposition (21 percent). "Overcoming these barriers requires strong executive leadership," David Kiron, executive editor for MIT Sloan Management Review, said in a statement. "Companies that are generating value with social business tend to have leaders who have helped get these capabilities applied to important business problems, a process that can very often change the way people work."
The study also takes a closer look at companies with a higher social business maturity level and identifies specific elements of success. It found businesses with more developed capabilities do not view social business solely as an application or a tool, but rather social business is integrated into functions across the company, such as strategy ad operations and the daily decision-making process.