×

C-level executives are warming to the benefits and value of social business, and their commitment makes the difference in the progress of their organization’s social initiatives, according to the 2013 Social Business Global Executive Study and Research Project.

Top executives’ attitudes toward social business are changing—in some cases dramatically. Where many C-suite executives were once quick to dismiss social business as a fad or distraction, more and more recognize the role social business can play in customer engagement, branding, innovation, and other activities, according to the “2013 Social Business Global Executive Study and Research Project.”¹

Results from the 2012 survey showed that C-suite executives who view social business as important were in the minority (see Figure 1).

Figure 1: Perceived Importance of Social Business among C-suite Executives

In contrast, this year’s survey shows a majority of C-level executives recognizing social business’s transformative potential (see Figure 2). They no longer see social business as a risk to be mitigated or “just another communication tool.” They’ve begun to understand its fundamental business value.

Figure 2: C-level Executives’ Perspectives on Social Business

C-suite executives’ embrace of social business bodes well for the individuals spearheading these initiatives within their organizations, as progress often hinges on executive support. Since social business often results in process and workflow changes for employees, executives need to explain the purpose and value of social tools, according to the MIT Sloan Management Review. If employees see top executives who are genuinely excited about and committed to using these new tools, they’ll be more likely to adopt them. The study indicates that companies with strong executive support for social business tend to have more effective programs and experience better results.

Notably, CEOs, CFOs, CIOs and chief marketing officers (CMOs) have distinct ideas on the top uses of social business in their respective functions, though CEOs and CMOs are most closely aligned (see Figure 3). CEOs and marketing chiefs see driving brand affinity, increasing sales, and crowdsourcing ideas and knowledge among the top uses of social business. Perhaps not surprisingly, CIOs wish to tap social business primarily in project management, while CFOs want to see social business increase sales.

Figure 3: Top Uses of Social Business, by Executive Function

CEOs’ and CMOs’ alignment on social business may lead marketing officers to eclipse CIOs as leaders of corporate social business initiatives. According to the study:

“As social business initiatives become more successful, CMOs are playing a larger leadership role by capitalizing on digital technologies that enhance their oversight and leadership of social business efforts. … [Meanwhile] CIOs face barriers and constraints in maintaining their leadership roles in social business initiatives. The rapid growth in influence of marketing on technology initiatives and static CIO budgets is prompting analysts to question how far CIOs will be able to take the lead in social business.”

Survey results seem to corroborate marketing’s ascendance in the social business realm. One-third of survey respondents said a member of the marketing function leads their organization’s social business activities; only 11 percent said someone from IT was at the helm.

Where CIOs can maintain a position of influence, according to John Hagel, a director with Deloitte Consulting LLP and co-chairman of Deloitte LLP’s Center for the Edge, is in their ability to grasp the “larger architectural implications” of social business initiatives. In an interview with MIT Sloan Management Review, Hagel noted that CIOs could create value for their organizations by anticipating the IT architecture needed to scale a social business initiative and by identifying other resources or IT platforms within the enterprise that can complement it.

Regardless of whether CIOs or CMOs assume ownership of social business, building the capability will likely lead to greater collaboration and understanding between these two C-suite execs.