ROI of Social Innovation Software

Businesses are increasingly viewing social networks less as timewasters and more as tools for encouraging in-house innovation. IBM developed its own internal social network called SocialBlue which employees use to share information, post pictures and generally foster an atmosphere of collaboration and sharing. Other organizations have experimented with creating social innovation software that is entertaining yet also helps to solve problems. The UK Department for Work and Pensions created a gaming environment called “Idea Street” that gathered 1,000 ideas from a pool of 120,000 staffers in only a few months. From that initial idea generation, 63 of those ideas were moved into a more intensive development stage.

The return on investment for each of these systems is usually much greater than any CIO predicts simply because the benefits go beyond an increase in overall revenue. By creating thriving internal systems that embrace an initial decentralized decision making process, companies are able to connect with employees who would have otherwise been too timid to voice their opinion. They also are able to expose different departments to each other in ways that are awkward in the daily business environment.

As an example, someone from the human resources department may have an idea that she thinks would benefit the company. She doesn’t necessarily have the experience to implement the idea. However, the R&D team will likely be able to develop and implement the initial idea from HR after they have been exposed to the concept through an internal social network. If the social network did not exist, the innovator from HR would likely meet with skepticism or open hostility if she ventured down to the R&D department in person. Internal networks remove this social stigma and encourage disparate teams to work together.

This increased potential for innovation has led the health care sector within the government to consider using social innovation software. This sector has recently experienced drug shortages along with difficulties in efficiently providing care services for any given population. Increased information coordination among agencies would help eliminate medical shortages and ensure that each patient receives the care he needs. Ultimately, internal social networks make organization-wide communication much smoother by eliminating tedious political hierarchies and shifting the focus to problem solving.