Learning Objectives

By the end of this chapter, you will be able to:

  • Define Social Computing in a business context.
  • Explain the shift from a one-way broadcast model to a two-way conversational model.
  • Describe the key concepts of social business, including social commerce, social marketing, and crowdsourcing.
  • Identify the main business benefits of adopting social computing.

Applying Social Computing to Business

Social Computing in Business, often referred to as Enterprise Social, involves the use of social computing tools and philosophies to support and enhance business activities. It represents a strategic shift from one-way, top-down communication to a more collaborative and conversational model of engagement with both customers and employees.

Social computing enables two-way business engagement Figure 1: Social Computing in Business

Instead of simply broadcasting messages, businesses use social computing to listen to, interact with, and empower their stakeholders. This creates a more dynamic and responsive organization.

The Shift to a Conversational Model

flowchart TB
    subgraph OLD["Traditional Model"]
        BIZ1["🏢 Business"]
        CUST1["👥 Passive Customers"]
        BIZ1 -->|"📢 Broadcast"| CUST1
    end

    subgraph NEW["Social Computing Model"]
        BIZ2["🏢 Business"]
        CUST2["👥 Engaged Customers"]
        BIZ2 <-->|"💬 Two-Way Dialogue"| CUST2
        CUST2 <-->|"🤝 Peer Interaction"| CUST2
    end

    OLD -->|"Transformation"| NEW

    style OLD fill:#c62828,color:#fff
    style NEW fill:#2e7d32,color:#fff

Figure 2: From Broadcast to Conversation

  • Traditional Model (One-Way): A business broadcasts advertisements and press releases to a passive audience of customers. Internally, communication flows from management down to employees.
  • Social Computing Model (Two-Way): A business engages in a two-way dialogue with its customers on social media. Customers can provide feedback, ask questions, and share their experiences publicly. Internally, employees can use social tools to collaborate across departments and provide feedback to management.

Key Concepts in Social Business

Several key concepts have emerged from the application of social computing in a business context:

  1. Social Commerce This is a form of e-commerce that uses social media and online social interactions to facilitate the buying and selling of products and services. It’s not just about placing an ad on Facebook; it’s about integrating the entire shopping experience into the social context.
    • Examples: Shoppable posts on Instagram, customer reviews and ratings, and social shopping plugins.
  2. Social Marketing This is the use of social media platforms to market a company’s products or services. The focus is on creating valuable and shareable content that engages an audience, rather than direct advertising. The goal is to build a community around the brand.
    • Examples: A company running a viral video campaign on YouTube, engaging with customers on Twitter, or using influencers on Instagram.
  3. Crowdsourcing Crowdsourcing involves taking a task traditionally performed by an employee or contractor and outsourcing it to a large, undefined group of people (the “crowd”) through an open call, usually via the internet. Businesses can leverage the collective intelligence and skills of the crowd.
    • Examples: LEGO Ideas, where fans can submit their own designs for new sets. Waze, which uses real-time data from its users to provide traffic information.
  4. Enterprise Social Networks (ESN) An ESN is a private social network used within a single organization. It applies the features of public social networks (like profiles, activity streams, and groups) to an internal business context. The goal is to break down communication silos and improve collaboration.
    • Examples: Microsoft Yammer, Workplace by Facebook, Slack.

Business Benefits of Social Computing

When implemented effectively, social computing can deliver significant business benefits:

  • Increased Brand Awareness and Customer Loyalty: Engaging with customers on social media can build a stronger brand and foster a loyal community.
  • Improved Customer Service: Social media provides a public channel for customers to ask questions and resolve issues, often more quickly than traditional support channels.
  • Enhanced Employee Engagement and Collaboration: ESNs can make employees feel more connected and make it easier for them to find information and collaborate on projects.
  • Faster Innovation: By listening to customer feedback (social listening) and using crowdsourcing, companies can generate new ideas for products and services more quickly.

Summary

Social Computing in business marks a strategic move from one-way broadcasting to two-way engagement. By leveraging concepts like social commerce, social marketing, and crowdsourcing, businesses can interact more effectively with customers. Internally, Enterprise Social Networks improve collaboration and knowledge sharing. The ultimate benefits include stronger brand loyalty, better customer service, more engaged employees, and faster innovation.

Key Takeaways

  • Social business is about two-way conversation, not one-way broadcasting.
  • Key concepts include social commerce, social marketing, crowdsourcing, and Enterprise Social Networks (ESNs).
  • Social computing can lead to improved customer loyalty, better service, and enhanced employee collaboration.
  • Listening to customers and crowdsourcing ideas can accelerate innovation.

Discussion Questions

  1. What are the potential risks for a business when it engages in a two-way conversation with customers on public social media?
  2. Can crowdsourcing be used for tasks other than creative design? Provide an example.
  3. How does an Enterprise Social Network (ESN) differ from a company simply using a group chat application?