Echoing the Business Case for Enterprise Social Software

Socialtext’s Ross Mayfield blogged today about the ROI of Social Networking for TransUnion.  In spite of the title, the real news in the post is not the amount of ROI, which, in the case of TransUnion’s Socialtext deployment, has only been estimated, not proven.  Rather, the most powerful messages are echoes of two ideas that were expressed in my last post on this blog.

First, organizations are wary of employees using public social software to discuss business.  Companies are deploying enterprise social software to keep confidential information behind the firewall.  In Mayfield’s post, TransUnion CTO John Parkinson said he saw the need “to defend against too much of this [employee social networking] going on in public.”  Mayfield further underscores Parkinson’s mindset by writing,

“Since the company deals in credit reports, it wasn’t keen on employees gathering to talk shop on the public Web. So the IT team set up Socialtext inside the company firewall.”

Clearly, corporations view the use of public social software as a risk to the confidentiality of their business information.  I think we will see many more examples of this risk avoidance behavior in the future, and it may end up being the most compelling business case for deploying enterprise social software in the near term.

The second bit in Mayfield’s blog that echoes my previous post is the other reason TransUnion bought and deployed Socialtext software.  According to Mayfield, TransUnion’s ROI estimate is based on cost savings of avoided additional software purchases.  Fine, but what were those purchases (and the Socialtext investment as well) intended to do?  Provide new tools to help employees work around existing ones that didn’t allow them to perform productively!

“TransUnion knew it was time to provide an internal social networking tool when people started asking for permission to set up an employee group inside Facebook.”

Why did these employees want a Facebook group?  I do not know for sure, but I am confident that it was because Facebook would allow them to achieve a business objective that they could not meet using existing TransUnion applications and systems.  Bravo to Socialtext for providing a solution that will likely meet those employees’ needs in a more secure fashion.

This TransUnion example affirms what I stated in my previous post.  The real value employees gain by using enterprise social software is shown in their ability to get work done when other corporate systems fail them.

Advertisements

3 responses to “Echoing the Business Case for Enterprise Social Software

  1. “I think we will see many more examples of this risk avoidance behavior in the future, and it may end up being the most compelling business case for deploying enterprise social software in the near term.”

    I imagine this is very effective when approaching industries that are usually laggards when it comes to adopting new technologies (Insurance, Health, etc). I suspect creative E2.0 sales reps are walking into pitches with print outs of employee social networks already formed on Facebook or Twitter search results pages showing employees conversing about work related stuff, to set a baseline for the conversation 🙂

  2. Sameer: It’s not hard to imagine your scenario actually taking place, is it? Probably not the preferred way to sell software, but it will get a buyer’s attention in many cases. Maybe we should collect anecdotes that document the practice “in the wild”.

  3. Pingback: Echoing the Business Case for Enterprise Social Software …

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s