Social media and the future of business

© 2011 Wipro Ltd - Confidential

Social media and the future of business

A study by Wipro, Stanford University and ETLA

© 2010 Wipro Ltd - Confidential2 © 2011 Wipro Ltd - Confidential2

Agenda

3

4 Business Impact

1 Objectives of the study

2 The Informational Value of SMPs

Key survey findings

© 2011 Wipro Ltd - Confidential3

Objectives of the Study


To discover the social media platforms (SMPs) that are economically relevant to a business organization

To understand the uses of SMP platforms To analyze the reasons for SMP value The impact of SMPs on businesses in the future

Objectives


The Informational Value of SMPs


The Hypothesis

Information control and collaboration

A social media platform can be economically valuable to a business organization only if it generates information that either improves the reliability

of existing information, or is new information.

Differentiations between social media platforms that affect reliability and newness

Extent of information control Extent of collaboration

High levels of information control YouTube advertisements Microblogs on twitter

Low levels of information control Wiki

High levels of collaboration Event planning Project management platforms

Low information control and low levels of collaboration LinkedIn recommendations

High information control and high levels of collaboration Moderated student discussion forums


Reliability

The blog postings by officials of a professional network on professional topics are likely to be of higher reliability than individual members’ postings

as a result of top-down governance

The blog postings by officials of a professional network on professional topics are likely to be of higher reliability than individual members’ postings

as a result of top-down governance

Increasing the level of information control

Reliable participants and unreliable participants are identified through ranking of transactional

experiences by fellow participants

Reliable participants and unreliable participants are identified through ranking of transactional

experiences by fellow participants

Participant filter

A strategic planning group of strongly tied employees may use a wiki to develop their

strategic plan

A strategic planning group of strongly tied employees may use a wiki to develop their

strategic plan

Participants in the platform with strong ties

The benefit of strong ties arisesregardless of the level ofinformation control. Instead,reliability is a feature of the pre-existing relationships betweencollaborators


Newness

Program to seek customer recommendations on its

Facebook page led to creating its seasonal flavors

in 4Q2010Increased sales by 30%

Offers a platform that enables professional profiles

to be discoverable by recruiters using

recommendations and searching job tags

Platforms that are accessible by many participants

Enables large-firm employees to work with vendors to resolve supply-chain related

operating problems, by posting recommendations on what is, in effect, a

‘virtual whiteboard’

Platforms with members with weak ties

The value of Social Media


Corporate Functions and Typical Social Media Platform


A social media platform generates information that is valuable if it fulfills one or more of the following conditions It improves the reliability of information It improves access to new information

Both strong ties and weak ties can be useful. Strong ties offer access toreliable information.

Weak ties offer access to a wider network of information and, through, thepooling of information, may lead to an acceptable level of reliability.

Conclusions


Key survey findings


Data was collected from 20 Silicon Valley based firms between December2010 and March 2011

With the exception of 2 firms, all are technology firms. Quarter of the companies surveyed do not want their employees to spend too much

time on external social media Most large firms articulate a formal social media policy Most used Social media platforms for business functions include forums, blogs/pre-authored

content including multimedia content such as advertising) and wikis.

The survey

Profiles of the firms surveyed


Internal social media platforms

Usage of internal social media platforms

Yammer is the most popular site The average number of hours per week spent per employee on ISMPs is

3.5 hours 85% of respondents felt that internal social media had a positive overall

impact on the firm’s operations The primary value of internal social media is for project management and

planning, rather than internal recruitment, recommendations, awareness or ideation.

Key Findings


Pre-authored content -Valuable for building awareness Twitter - Useful site for project management and problem solving Wiki - Useful platform for creating project teams, project management and problem-solving

Benefits of ISMPs


Pre-authored content -Valuable for building awareness. 95% of respondents felt that external social media had a positive overall impact on the firm’s

operations Facebook is the most popular, followed by Twitter and Linked-In. Content communities such as YouTube is of less importance Blogs are an important platform within the above sites.

External social media platforms

Usage of external social media platforms

Key Findings

ESMPs are accepted as a way of building awareness about the firm’s goods and services.


Benefits of ESMPs

ESMPs are also used for background research for applicants, obtaining recommendations and searching for the right fit


SMP value

SMPs with higher value

• Pre-authored content carriers, whose value arises from their reliability and the ability to receive feedback (new information) in a non-collaborative form. This is the case for both ISMPs and ESMPs.

• ISMPs for collaboration among participants with prior weak or strong ties, where the platform enables the generation of new information with relatively high levels of reliability

Less valuable SMPs

• SMPs that enable the exchange of already-trusted information among strong-tie participants, for instance, for strategic planning over ISMPs

• SMPs that offer to improve the reliability of information through pooled governance• New information through non-collaborative, weak-tie participation, such as supply-chain

management over ESMPs.

ESMPs are accepted as a way of building awareness about the firm’s goods and services.


Business Impact


In the future

Social Media’s impact on the future of business will be

felt enterprise-wide, offering fresh opportunities for

business transformation.

Technological improvements in real-time data monitoring and data

analytics.

Strengthening of collaboration - Businesses will come closer to end-customers, employees, vendors and suppliers

Creation of response systems that loop decisions

of product, service and facility managers into the

SMPs

Re- evaluation of the merits of allowing greater Social

Media access to employees.

Integration of both ISMPs and ESMPs into enterprise management and control

systems.

Organizations will continue to embrace Social Media as it matures


Customer Impact & Key Takeaways from this study

Roadmap for customers

• Customers can develop an appropriate social media strategy

• Customers can focus on the use of ESMPs for building awareness about the firm’s goods and services and leverage them as bridge for information exchange with customer

• Use for internal project management and strategic planning

• Customers can develop an appropriate social media strategy

• Customers can focus on the use of ESMPs for building awareness about the firm’s goods and services and leverage them as bridge for information exchange with customer

• Use for internal project management and strategic planning

Key take away learning

• Integrate ISMPs and ESMPs for a competitive edge

• Create response systems that will loop customer, vendor, employee and supplier decisions back into the SMPs, and hence drive customer-centric behavior.

• Leverage and tweak key SMPs so as to balance reliable information flow, and free flowing collaboration among participants.

• Integrate ISMPs and ESMPs for a competitive edge

• Create response systems that will loop customer, vendor, employee and supplier decisions back into the SMPs, and hence drive customer-centric behavior.

• Leverage and tweak key SMPs so as to balance reliable information flow, and free flowing collaboration among participants.

Actions plans

• Facebook, Twitter and Linked-In are gaining importance in B2B’s within ESMP space – active participation will help brand reinforcement.

• Twitter and Wiki are useful tools for project management and problem solving

• Use of pre-authored content platforms like blogs are more valuable as they enable greater information control and flexibility of delivery

• Facebook, Twitter and Linked-In are gaining importance in B2B’s within ESMP space – active participation will help brand reinforcement.

• Twitter and Wiki are useful tools for project management and problem solving

• Use of pre-authored content platforms like blogs are more valuable as they enable greater information control and flexibility of delivery


To read the complete report please visit the link belowhttp://www.wipro.com/datadocs/insights/SOCIAL%20MEDIA.PDF


Wipro set up the Council for Industry Research, comprised of domain and technology experts from the organization, to address the needs of customers. It specifically surveys innovative strategies that will help customers gain competitive advantage in the market. The Council, in collaboration with leading academic institutions and industry bodies, studies market trends to help equip organizations with insights to facilitate their IT and business strategies.

For more information on the Research Council visit www.wipro.com/insightsor mail [email protected]

About Wipro Council of Industry Research


WiproTechnologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that delivers solutions to enable its clients do business better. Wipro Technologies delivers winning business outcomes through its deep industry experience and a 360 degree view of “Business through Technology” – helping clients create successful and adaptive businesses. A company recognised globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability, Wipro Technologies has over120,000 employees and clients across 54 countries.

For more information, please visit www.wipro.com

About Wipro Technologies

© 2011 Wipro Ltd - Confidential

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