Business use benefits of external social media for organization of web 2.0 technologies such as social networking and social media is sometimes referred to as Enterprise 2.0, defined as an organization’s use of emergent social software platforms’ to pursue its goals. A review of the literature on organizational uptake and use of these platforms yields a number of potential benefits, which may be broadly classified in terms of.

a) The employee uses of the technologies.
b) Customer engagement activities.
c) External partner activities.

Importantly, the value of enterprise use of social networking is determined; not by the platforms themselves, but by how they are harnessed to create value for the organization. Therefore, one outstanding issue involves identifying the circumstances under which business and public administration organizations are able to adopt social networking and social media platforms to improve internal and external communications, processes, and organizational performance. Another issue relates to how we measure the benefits of these platforms.

Benefits from External use of Social Media/Social Networking for organization

Insights, Intelligence, Analytic, Big Data

  • Enhanced customer insights
  • Intelligence about competition and market
  • Monitoring online communities

Open Innovation, Crowd-sourcing

  • Increased innovation
  • ‘Open innovation’
  • Refining existing products and services
  • Creating and supporting virtual communities

Customer Intimacy, More Personal Interactions, Fostering Customer Engagement

  • Increased customer loyalty
  • Enhanced customer care
  • Fostering customer engagement (through, for example, coupons and contests)
  • Social media reintroduces a two-way conversation between the customer and the organization.

More Effective Marketing and Communication; Creating New Market Opportunities

  • More effective marketing
  • Increased brand awareness
  • Developing new communication channels

Recruitment; Labor Market

  • More effective recruitment
    Social software is also extensible to outside the organization, allowing partners, suppliers, alumni, and others to be a part of an extended organization.

Concerning best practices, believes that organizations must have the right attitude about letting go and losing control through the adoption of social tools. He also stressed the idea of ‘failing fast’ and in a positive way.

I hope this will help more organizations to take benefit of this & utilize Social Media for organization & it’s development.