Social

media and the CIO ITD Research #5 : Sep 9, 2011

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Introduction
Web and mobile technologies are now focused on encouraging dialog social media is everywhere. Every news site you read wants immediate feedback from the readers. Every blog has a note at the end so you can like it or send it on to your followers on Twitter. The web has moved on, from pushing information to readers to encouraging participants to upload their own information, and a new evolutionary wave offers an immediate feedback loop. Web users dont just upload their comments and photos, but offer immediate feedback on the information created by others. And social networking in particular, the use of social tools to connect with other people, has exploded in popularity over the past five years. But while many executives see these tools as a way of listening to conversations, learning what people think, and just plain old business networking, others still see them as a waste of time. Its no surprise that many companies ban their employees from accessing tools such as Facebook and Twitter at work. Take a look at the wall of most Facebook users; its rarely got anything to do with work. Twitter tweets can be serious one moment, sharing political information in another, and then debating the football results with a TV celebrity. But tools such as LinkedIn, use similar principles to connect people together and yet are seen as serious business tools. Many large organizations now turn to LinkedIn as the first place to look when hiring new employees. LinkedIn use has increased by over 400% in Brazil in the past year so there must be something that companies are finding useful in these tools. Genuine business applications of social networking, such as recruitment, has shifted the perception of these tools from being focused on teenage games to the exploration of how greater connectivity and information sharing can help business leaders. In our research this week, we have explored the question of how CIOs should be using social media and networking tools. Is it essential for you to take the lead as an IT leader, or do these tools still need to prove their worth in the real world of business before being adopted in the office?

LinkedIn use has increased by over 400% in Brazil in the past year.
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Participant Feedback
To explore the issue of executives using social media, in this weeks research survey we asked four questions three of which were multiple choice and one designed to promote an open discussion. We received answers from 23 executives from 17 industry sectors: consumer services, financial services, shipbuilding, cosmetics, food production, insurance, retail, logistics, media, automotive, chemicals, telecommunications, internet, oil & energy, recruitment, food & beverages and engineering. Question1: Is it important for senior IT executives to be seen to be using social media?

In some jobs, but not all

34.8%

No

17.4%

Yes

47.8%

10

12

This is an almost overwhelming vote in support of social networking and media tools. With 47.8% of our IT leader respondents saying that it is important to be seen using social media, and a further 34.8% saying that it is important in some jobs it is clear that technology executives believe that they should be seen using these tools.

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In crude terms, 8 out of 10 IT leaders in Brazil believe that their peers and teams should see that they are using social media tools. But what do they get from their online presence? The next question asks specifically about business networking. Question 2: Do you find social media useful for networking and exchanging ideas with peers in other companies?

Sometimes, but not regularly

30.4%

No

0%

Yes

69.6%

10

12

14

16

Though social media is the broad terms for all forms of media that involve some social interaction, social networking is perhaps where it is most useful using tools such as LinkedIn to connect with people and to exchange ideas (or just to find a new job!) When asked about networking using social tools, the answer is clear the IT executives in our poll all find social media a useful way to stay in touch with peers. Just under 70% claimed to find it useful for networking, and the remaining IT leaders all said that it was sometimes useful for networking. 4 ITD #5 Social Media and the CIO IT Decisions 9 September 2011 - All Rights Reserved

Not a single IT leader in our poll said that they do not find social media useful for networking with peers in their industry. Clearly, networking is the killer app for social media, but there are many other ways to use social connectivity such as communicating to your own team when it is large, diverse, and spread across the world. Question 3: Do you feel that social media plays a useful role for internal communications, helping you work with a large, diverse team that may even be global?

Sometimes, but not regularly

43.5%

No

17.4%

Yes

39.1%

10

Here the response is more measured, but still overwhelmingly in favor of social tools. The most popular response, at 43.5%, indicates that IT leaders sometimes find social tools useful in communicating with their team, but an almost equal 39.1% say that the tools certainly are useful. Of course, the question about internal communication and management can be affected by the size of the company and its footprint in Brazil. Larger multinational companies will probably find internal communications is extensively boosted by the use of social tools, companies based on a single site, or even a single country, may be able to manage with a good old-fashioned notice- board.

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What is clear though is that only 17.4% of the IT leaders in our poll said that they dont find social media useful at all when communicating with their team. Question 4: It is now 12 years since blogging started and 8 years since Facebook launched, could you explain your thoughts on what you think senior IT executives can gain from using social media and whether it is possible for a senior IT executive to work effectively without these tools? The most interesting and relevant CIO responses exploring these challenges are grouped together by industry: Engineering - The issue is to deal with expectations and receiving feedback I really do believe that the use of social media would be interesting in the management of IT departments as well as internal marketing. Internal communications would flow more easily through the structure of the company and in a consistent manner. But this applies much more to managers who are confined to the strategic level, which is not a reality for most IT executives who still need to balance the strategic management with the day-to- day of the function, always running short of time. Even with all the known benefits, the use of any media also generates expectations on the part of the person receiving the information, as well as the risks of overexposure. We must also consider that many managers are not prepared to receive feedback about what is disclosed to provide appropriate follow-ups, consideration and return - which may end up undermining the whole effort in using these types of media and generating a totally adverse result to what was initially planned. Consumer Services - Social media can increase productivity, but it is still underused Surely, it is possible to work without some of the tools available today. The emergence of new patterns of communication and information management is creating new situations and possibilities, allow different ways of working, and in some cases makes work easier and more productive. However, I think [social media tools] are still underused in the corporate environment as a means to improve effectiveness, except for greater networking opportunities, which is very effective for any professional. Financial Services - Neither firms nor workers can be effective without social media The change brought about by social media affects all senior executives in companies, not just IT. It turns users into consumers of media. This basic and fundamental difference changes the way we think about IT and its limits. Neither firms nor workers will be effective without the use of these tools. Do not fight, adapt. 6 ITD #5 Social Media and the CIO IT Decisions 9 September 2011 - All Rights Reserved

Shipbuilding - Social media refuseniks are missing out on a behavioral trend I believe it is possible to be present in social networks in order to interact and understand how they can help in the way organizations do business. This can be done without necessarily having to share details and information you do not want to divulge. In summary, I believe not to be in social networks is to be out of what is a fundamental behavioral trend. Cosmetics - You cannot replace the agility of social media for real life The social media bring together who is far away and who's near. There must be a balance and not a dependency on the use of tools such as Twitter, Facebook or LinkedIn. We cannot lose the essence of who we are in real life in exchange for the agility of virtual life. Food & Beverages - CIOs must understand social media and be ready to support its use Social media is a reality and ICT manager has to understand them and be prepared to respond to requests for its internal use. At the same time, we must not forget the problem of security and the employee productivity dilemma that forces us to create controls in the frequency of use. Food Production - Social media results have been limited to HR Despite the significant growth of social media over the years, I have a slight perception that for CIOs, significant gains with its use have not come about, except from the perspectives of recruitment/selection of IT staff. Financial Services - Geographically disperse teams can be helped by social media These tools facilitate the interaction with dispersed teams, and helps in terms of keeping in touch with colleagues, who may also be geographically dispersed. Insurance - Social media can help areas including sales, but it is not crucial for the CIO Social media tools are the means and not the end. They represent more than one channel, which is, of course, very useful for sales, relationship building, research and communication. I think it is very efficient, but not required for management performance. Retail - Infrastructure planning can be supported by social media tools These tools have the potential to indicate trends and behaviors, which should be taken into account in the planning process of the companys IT infrastructure, depending on the sector in which the business operates and the importance that it places on social media. Insurance - Instant messaging can help overcome location-based barriers Yes, it is possible [to work without social media tools], but the use of Twitter or instant messaging software greatly facilitates communication in cases where the geographic question presents itself as an impediment.

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Logistics - Fast-flowing information can bring many benefits in a short space of time I think the way in which we communicate has changed and information flows much faster in the social media realm. It is also true that there may be a problem around quality of information, but the personal network itself solves that problem quickly. I believe the networks are very effective in maintaining the evolution of knowledge through the distribution of information and especially of the discussions that arise on each topic. It is an open field where the direct and frank debate often brings many benefits in a short space of time. It is worth mentioning that what may help may also destroy: an example would be comments and/or misleading information being used as the sole source for decision making. Media - The executives daily life can be improved with social media use I do not think these tools interfere with the effectiveness of a senior IT executive. I believe that they enhance and facilitate the day-to-day life of professional, bringing advantages such as better approaches and relationships with your network, exchange and acquisition of ideas, experiences and points of view and opportunities for exposure of their personal and professional values. Automotive - Blogs can create a direct channel between managers and staff For large organizations, the use of internal blogs can be a useful tool to disseminate ideas and decisions, which in some circumstances creates a direct line between the manager and all the staff or community where he/she operates. But the use of Facebook, despite it being simpler, can generate problems of unwanted exposure of company facts across the web. Chemicals - Twitter is an excellent tool to feel the pulse of the planet Personally, I use Twitter as a basis of my technical and generic reading. I think an amazing tool to feel the "pulse of the planet." From an enterprise standpoint, we were slower to adopt them, but we have some success stories. I think it is not possible to be left out! Insurance - Social media may be around for a while, but results are not yet significant Sure, I would say that even after so long these kinds of tools have yet to demonstrate its value to the corporate environment. Even among organizations active in that respect I still think that the benefits in terms of production of social media are still very superficial. However, in the relationship with customers, it has shown great results.

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Consumer Services - IT teams still cant use social media in a professional manner There are several other collaborative tools that can be used by IT managers (such as email, video conferencing, and so on) to communicate with their teams. IT teams are not mature enough to use social media only in a professional sense and the risk of losing productivity and focus is too big. Telecoms - Social media can improve the dissemination of internal communication Social networks help spread the ideas and guidelines of the company across teams, especially when they are distributed in several sites with a lot of people. Communication is key and the (internal) social media tools support that goal!

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Conclusion & Executive Summary

Social networking is an emotive topic. Employees barred from using these tools at work complain that it is their right to remain connected to their social network even when at work. As a result, many subvert workplace bans by using social networks via their smartphones or other devices. Many executives see social networks, and media in general, as little more than a marketing device, a way of broadcasting corporate messages to enthusiastic viewers. Yet, as LinkedIn has demonstrated, there are industries such as recruitment that are being torn apart and reshaped because of social network connectivity. Several of the IT leaders in our poll responded with words to the effect of: It would be possible to work without social media tools, but it would not be as effective or comprehensive or these tools can greatly facilitate your work. This grudging acceptance of social media tools can be summarized as executives with the following attitudes: There is no proven business case that forces me to use these tools and, until it is proven, I will wait and see what happens. The tools are just not needed for me to do my job. Ive always managed without these tools and I can continue to do so. I just dont really understand the value of telling people what I am doing all the time. Who reads this stuff? I give the orders around here. Why would I want feedback on what I get my team to do? The bottom line is that many executives find the application of the tools exciting and useful. Information can be shared and located easily, but defining a business case that would actually encourage employees to actively use social networking tools is harder. Can investment in hardware and software be justified and how exactly can endless hours networking always be considered productive? However, most of the IT leaders featured in our research were receptive and positive to the possibilities. Just look at the response to question 2 where every single IT leader noted that these tools are very useful for connecting to industry peers. These are the five key areas where the IT leaders in our research found that social media and networking tools can play a useful role for the modern IT executive:

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But despite all these benefits, IT executives still need to walk the talk. Several of the IT leaders in our research noted that, despite all the benefits offered by social media, if the manager does not work with his team, or expects social networking to replace personal communication, then they will suffer not every interaction can take place online!

Information management. In times of information overload, tools like Twitter can be a very useful way to filter news from the journalists, publications, analysts, and industry experts you admire. Far from wasting time, by filtering the news in this way you can gain and absorb more relevant information, faster. Industry networking. Keeping in touch with colleagues you once worked with and may work with in future, as well as alumni from the same university and peers in the same industry is far easier with social networks with the added bonus of fuss-free communication. Recruitment. Tools like LinkedIn offer incredible facilities for scouting people by location and experience and keeping in touch with people you may possibly work with in future. This has changed the entire nature of the recruitment process any HR specialist will confirm this. Internal marketing. The CIO always has to ensure the internal customer knows what is happening with IT. If the customer doesnt hear from you, they assume you are not busy, so social tools can be a great way to share information about IT projects and priorities. Connecting teams. Many IT teams whether they are internal or external are based in multiple locations, sometimes in different countries and sometimes working for different companies, but on the same project. Social tools can be used to create a cohesive virtual team.

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IT Decisions Research
IT Decisions produces a report like this every Friday, based on what CIOs told us that same week. It is fast and relevant knowledge from your peers, it is only available to the CIOs in the research network, and it is free. What is the catch? You pay by participating. Every week, we will send you four simple questions that will take no more than five minutes to answer. The more participants, the better the quality of the research. So please do invite your colleagues to join! Do you want to direct the research and define the topics alongside our board of founder members? We also offer Platinum memberships that allow you to steer the process, as well as other benefits including comprehensive reports, face-to-face focus sessions and more. Get in touch for more details at contact@itdecs.com. The IT Decisions FutureSkills fund is a charitable, transparent fund focused on improving IT education and training in Brazil. If you recommend a Platinum member to the network, we will donate R$500 to the fund in your name and Platinum members will get to choose which organization gets the money at the end of the year. Please contact us for more details.

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About IT Decisions
IT Decisions is the premier source of insight into the technology and high-tech service industry in Brazil. The company creates English-language news and insight for a CIO audience with regular features and analysis that cannot be found elsewhere. We focus on decision-makers and influencers the buy-side. Reproducing the sales pitch or adverts of suppliers is not our thing; we focus on those buying the systems. IT Decisions was founded in 2011 by Mark Hillary and Angelica Mari, two of the most respected business and technology writers in Europe - with a collection of best-selling books and industry awards between them. The IT Decisions research network is an invitation-only group of CIOs in Brazil who work together to produce a new research report every week. Take a moment to connect with the IT Decisions management on LinkedIn and take a look at some of their books, other media, blogs, and publications: Mark Hillary, Chief Executive Officer http://j.mp/markhillary Angelica Mari, Publishing Director http://j.mp/angelicamari

Photo Credits: Eunhye L Howard Lake Marcos Xotoko

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