Organisational silos limiting the business benefits of social media: TCS study

A global study by IT services major TCS has noted that companies across the globe, including India, are set to spend an average $19 million (Rs 119 crore) on social media this year. Though only 10 per cent of enterprises are realising significant improvements to their business as a result of social media investments, despite the hype and increased investments, a new study has found that enterprises are still struggling to make the most of social media.

The study, titled `Mastering Digital Feedback: How the best consumer companies use social media', suggests that organisational silos are limiting the business benefits of social media.

Satya Ramaswamy, Vice President and Global Head of TCS Digital Enterprise at TCS noted, ``Despite ready availability of digitised consumer-to-consumer interactions in social media, its use by companies is today largely limited to being a mechanism for business to consumer marketing. It is time enterprises took a multi layered approach to social media and learnt to harness its power across the enterprise in critical revenue drivers. Breaking down the organisational silos is key to realising the full power of social media. Organisations need to be social and share internally to really use the power of social media externally.''

The market research firm ResearchNow surveyed 655 respondents from mostly $1 billion plus consumer companies in June and July this year, the average revenue of which was $15.6 billion, the report added. Some 56 per cent of respondents have measured the return on social media investments and most of them say it has been positive, the report said.

Though marketing most often owns social media, only 42 per cent of enterprises say their organisational structure for social media is effective or highly effective. The leaders in social media invest in producing their own digital content - while 81 per cent have corporate blogs, 77 per cent have mobile apps for consumers who use social media, and 61 per cent have online video channels.

The study noted that only 27 per cent of research and development and 37 per cent of product management departments regularly viewed social media comments from consumers. ``This is partly because social media activity is most commonly owned by marketing, customer services and sales,'' the study noted.

The report adds that the media and entertainment industry has the highest percentage of companies that have been using social media the longest to engage with consumers, even as most insurance companies are relatively new to social media.

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