Monday, November 22, 2010

New IDC Report Discusses Formula for Determining Social Business ROI

One of the top challenges associated with implementing enterprise social software is measuring the impact on business goals. A new International Data Corporation (IDC) study, Determining the Value of Social Business ROI: Myths, Facts, and Potentially High Returns, reveals that enterprise social software adoption still has room to grow, with 41% of respondents indicating that they have already implemented an enterprise social software solution -- leaving 59% who have yet to implement a solution. With this much adoption anticipated, IDC forecasts the emerging social platforms market will generate revenues of nearly $2 billion by 2014, experiencing a compound annual growth rate (CAGR) of 38.2% over the 2009-2014 forecast period.

When conducting ROI on social business initiatives, the rules of business still apply, regardless if a company deploys social business initiatives to assist customer service, marketing, public relations, product innovation, employee collaboration, or other functional areas of the organization. IDC believes business executives need to understand not only the traditional metrics and value calculations of ROI, but also the impact that social business initiatives have on these computations and their interrelatedness. 

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