Business Innovation through Social Media

The ultimate goal of any business is to make profits. However the highly competitive environment driven by ever changing technologies leaves most organisations struggling with effectiveness and efficiency. In order to compete in this fast paced environment, businesses have to innovate. Business innovation is defined as...."an organisation's process for introducing new ideas, workflows, methodologies or products." This might be time consuming and expensive exercise especially for small to medium enterprises. With connectivity and especially through Social Media, costs for innovation can be contained. The following methods can be co-opted into any Social Media strategy to facilitate an affordable business innovation.

Crowdsourcing

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Premised on the idea of outsourcing, this concept allows for individual contributions from volunteers or part time workers and the total effort comes from an unidentified public. Since organisations engage with audiences through Social Media, they can solicit for contributions from the public on how to improve certain aspects of their businesses. When systems are improved with the assistance of potential customers, success is assured. Innovation remains key and to attract attention and run an appealing campaign, competitions can be co-opted into this strategy.

Crowdfunding

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According to crowdsourcing.org, "Crowdfunding is an approach to raising capital for new projects and businesses by soliciting contributions from a large number of stakeholders...." There are a number of crowdfunding sites and www.crowdfunding.com lists the following as the top three, ranked according to traffic data. 

1. gofundme

2. kickstarter

3 Indiegogo

Billions of dollars have been raised through these websites. Social trust is cardinal for a successful online fund raising campaign. An active presence with healthy engagement in Social Media networks is all you need to establish social trust. Most common models of crowdfunding are 1) Donations/Philanthropy/Sponsorship 2) Lending 3) Investment in exchange of equity

Co-creation

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In pursuit of innovative ways of product development, some organisations are inviting thier clients to participate in the design of products. Customers are requested for their input to create value reach experiences. These interactions would normally take place on the organisations' websites, but to reach a wider audience, you will need to make use of Social Media networks. This exercise is not only fun and rich in varying options, but can also be collaborated with product launch, brand awareness and new market explorations. Integrating these activities becomes a cost cutting measure

Big Data

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Bernard Marr defines big data as, "....data being collected and our ability to make use of it." He asserts that as we conduct our normal activities, we leave traces of data which can be analysed. Analysis of this data informs behavior. Big data can be exploited for commercial opportunities. Performance improvement can also be identified and devised through data analysis. Connectivity through the internet and most importantly Social Media is a very rich mine field for all sorts of data. 

Internet of Things (IoT)

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Another online phenomenon that can help innovate any business is the Internet of Things, which is defined by Webopedia thus, "The Internet of Things (IoT) refers to the ever-growing network of physical objects that feature an IP address for internet connectivity, and the communication that occurs between these objects and other internet-enabled devices and systems. Internet enabled devices can be used to control and operate various processes and all that will be required is one to be connected to the internet. For an example; an office's telephone system can be controlled through the internet reducing the costs of telephone equipment and a telephone operator. Most home appliances, security systems and even wearable devices are now internet enabled. Social Media networks are in hot pursuit of developing systems that utilize the IoT phenomenon.

Besides seeking to increase sales, how else are you utilizing your business presence in Social Media? We would be happy to hear from you with a comment below. Should you need to know how you can harness these lucrative developments in your business strategy, do not hesitate to get in touch.

How Social Media Disrupts Conventional Business Processes

Social Media is here to stay. Not only will it stay but it is going to disrupt a number of business models. Some of the disruption will be advantageous to some business models whilst others will be negatively affected. Like any change, the introduction of Social Media into the mainstream business processes has got both threats and opportunities. For bold entrepreneurs with an innovative appetite, this presents enormous opportunity for product improvement, penetrating new markets and affirming a competitive edge. Below are five points that detail how Social Media disrupts conventional business models. Each one presents opportunities that cut across most if not all industries.

1. Social Media removes barriers that exists between businesses and their customers. Content Marketing provides organizations an opportunity to showcase products in detail. It is through the understanding of the product; the acceptance of the solution provided by the product, that influences a purchase. Inbound Marketing bares open the soul of the organization. The organization has to demonstrate its internal processes as a way of attracting clients. The main goal is to have prospecting clients engage. The organization should exude a persona that prospecting clients can identify and are comfortable to converse with. Whilst organizations rarely seek a response from their advertisements and marketing efforts, with Social Media Marketing, unless the audience/target market engages, one would have not achieved their objective. Marketing as we know it, is disrupted by Social Media

2. Social Media streamlines internal and external business communication. With Social Media communication can be on real time. Individual business units can communicate with clients. It is possible for line workers to be authorized to communicate directly with clients. Let me hasten to say that we ought to support our Social Media Strategy with communication policies that clarify what can be communicated and what can not be communicated. Traditionally we have Public Relations, After Sales Care and Client Relations handling how we interact with clients. Social Media Forums streamlines these departments and leave clients dealing with the organization directly. This empowers both the clients and organizations. The client is free to converse, ask all questions and even contribute their views or make suggestions. This environment strengthens the relationship between clients and their suppliers. When clients are happy with the service they receive, they share company information with their friends becoming brand ambassadors.

3. Another disruption that comes with Social Media Forums is the opportunity for entrepreneurs to incorporate co-creation. Clients' ideas can be co-opted into the design and manufacture of products. The norm has always been that if you come up with an idea, once perfected you patent it and go through a phase of trial and error where you test your market. With Social Media, it is possible to involve prospecting clients in product design and manufacture. By the time the product hits the markets, the customers are not presumed, they are known by name and location. Co-creation reduces the cost of research and development. Research remains cardinal, but it is done in a smart way which involves prospecting clients and reduces costs.

4. Social Media does not only affect Business to Consumer activities even Business to Business processes are disrupted. System developers are making use of participatory design, to involve clients in the design of systems. Social Media Forums make it possible for this engagement to happen without physical presence of all parties involved. System upgrades and maintenance is also made possible through easy communication facilitated by Social Media Forums

5. Social Media avails enormous data to organizations about their clients. This data is a game changer that does not necessarily bring any disruption to conventional business processes. However it avails information on client behavior, client preferences and client needs. Shrewd innovators have invested heavily in Data Analysis. Data Science is enabling organization to mine information from data availed by Social Media Forums. This information if properly analysed can improve services and be utilized to explore new projects.

Besides marketing, how else have you used Social Media Forums to improve your business offering?