posted by: Tara

According to a survey conducted by McKinsey Quarterly companies using social media  or “collaborative Web 2.0 technologies” are seeing higher profits than companies who are not. This may not be a surprise to most of you but to those who are still on the fence about whether or not to participate in social media, this may help you jump on board.

The survey shows companies who are participating in social media or "collaborative Web 2.0 technologies" are seeing greater increases in profits than companies who are not participating. The conclusion of the survey suggests four steps for companies to avoid making the critical mistake of not participating in social media or "collaborative Web 2.0 technologies".

Source: McKinsey Quarterly -

"The imperative for business leaders is clear: falling behind in creating internal and external networks could be a critical mistake. Executives need to push their organizations toward becoming fully networked enterprises. Our research suggests some specific steps:

• Integrate the use of Web 2.0 into employees’ day-to-day work activities. This practice is the key success factor in all of our analyses, as well as other research we have done. What’s in the work flow is what gets used by employees and what leads to benefits.
• Continue to drive adoption and usage. Benefits appear to be limited without a base level of adoption and usage. Respondents who reported the lowest levels of both also reported the lowest levels of benefits.
• Break down the barriers to organizational change. Fully networked organizations appear to have more fluid information flows, deploy talent more flexibly to deal with problems, and allow employees lower in the corporate hierarchy to make decisions. Organizational collaboration is correlated with self-reported market share gains; distributed decision making and work, with increased self-reported profitability.
• Apply Web 2.0 technologies to interactions with customers, business partners, and employees. External interactions are correlated with self-reported market share gains. So are internal organizational collaboration and flexibility, and the benefits appear to be multiplicative. Fully networked organizations can achieve the highest levels of self-reported benefits in all types of interactions."

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• January 12th, 2011
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• Tags: 2.0 web technology, calgary social media, companies using social media, participate in social media