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Firms still ignoring social media

by Phil Muncaster

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15 Sep 2008

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Two-thirds of firms claim that social media is 'not on their agenda'

Over half of firms are refusing to implement social media initiatives because of concerns about user productivity and security, and senior management apathy, according to new global research by IT consultancy Avanade.

The survey of 541 executives found that two-thirds believe that integrating social media technologies into their organisation is not on the agenda. Around half feared a negative impact on productivity.

A further three-quarters thought that the main barrier to adoption is security, while 58 per cent feared using unproven technology.

Yet, despite this trend, many respondents seemed to recognise the benefits of implementing social media.

Two-thirds of firms which have implemented the technologies have seen improved customer satisfaction, while 64 per cent reported that their firm had garnered an improved reputation.

Other key benefits were improved feedback from customers, and a reduction in the time taken to resolve support issues.

Firms with a younger workforce, and those that are traditionally strong technology adopters, are more likely to be open to social media for business purposes, according to Avanade CRM business manager Brian O'Kelly.

"It will be much more difficult to take off in older more established businesses, but there's nothing like competition to change attitudes," he said. "A massive number still don't feel they have to do anything about it."

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