Based on Gartner a lot of companies are earning buying decisions on enterprise social software according to vision and strategy (intangible value) instead of traditional accounting based Return on investment calculations (tangible value). Equally executives on most companies want these investments expressed as tangible value.
Can you calculate Return on investment of the laptop or phone?
Can you calculate Return on investment from the coffee maker at office?
Can you calculate Return on investment of the E-Mail system?
Without any doubts we agree that there’s an Return on investment of the laptop or even the coffee maker at office. There’s an Return on investment of something that provides value. Then why have organizations implemented enterprise social software not understanding the Return on investment? Well, you are able to calculate the Return on investment of enterprise social software but exactly how you might calculate the Return on investment isn’t necessarily apparent.
Let’s imagine that Return on investment for enterprise social software can’t be calculated, however, you can track things. We are able to also state that the Return on investment of enterprise social software is you can worker engagement & improve productivity, or that social software Return on investment is it can help to eliminate communication costs. Nobody knows exactly upfront how much cash you’ll save or if you are in a position to create or increase a cognitive surplus within the organization by applying social technologies. Only if situations are done guess what happens the consequence was and you’ve got a obvious take on the advantages. Though, you can be certain that social technologies will be adopted in some manner, shape or form regardless of what company or market you’re employed in & come in every enterprise within the approaching five years.
Even though some above statements will make you chuckle yet others might appear like true, but they just do not assist you in business conferences with peers and executives who would like real business solutions. Why can you dive into something that can’t be measured? And without a method to obtain benchmarks, how may you tell when something works? How may you track the progress and gather the best metrics or do a lot of right things? How may you articulate the company situation for enterprise social networking?
Running a business you have the effect of some expected outcomes, and for figuring out the process for driving individuals outcomes. This is correct for enterprise social networking too.
To become effective with enterprise social networking you need to determine your reason for doing the work. What proper objectives and goals are you currently attempting to achieve? Frequently such initiatives fail since companies aren’t sure how you can align their business goals using the initiatives.
The metrics you have to evaluate the prosperity of enterprise social networking are specific for your organization. Each organization has specific, measurable objectives and goals they need to hit. Typical types of business goals are:
· Increase worker engagement.
· Increase productivity.
· Increase sales.
· Increase ideas generated in the organization.
· Increase collaboration with partners & customers.
· Reduce e-mails.
· Decrease new worker on-boarding time.
· Decrease duplicated tasks.
· Decrease software programs & support cost
· Faster use of understanding.
· Faster use of internal experts.
· Reduce communication costs.
· Reduce travel costs.
You are able to use the SMART Methodology (Specific, Measurable, Actionable, Realistic, &
Timed) for your enterprise social software goals.
Finding THE HIDDEN TREASURE
Using the industry costs averaging $3 to $15 per user monthly, with no hardware & low management costs, even small increases in key performance indicators driven by enterprise social software platforms produce significant Return on investment.
Harvard Business Review claims that “If applying enterprise social platforms can increase worker engagement by less than .1%, according to Best Buy’s correlation between engagement & operating earnings that will lead to an Return on investment of more than 800%”
Enterprise systems have resided its existence. Let us exceed them. A current consequence of research done by McKinsey provides some interesting insights for organizations who’ve implemented such social software
· 77% gain faster use of information
· 60% reduce their communication costs
· 52% gain enhanced use of internal experts
· 44% cut their travel costs
· 41% experience elevated worker satisfaction