There are companies that were blind-sided by Internet, not sure it is because they didn’t understand the impacts of the power shift to the participants, or how fast information would spread, or were just plain ignorant about what went wrong, why, and what should have been done.
Companies are quick to deploy the latest social media technology, yet most have not prepared for the threat of social media crises, or long-term effects on business.
Social media crises is an issue that arises in or is amplified by social media, and results in negative mainstream media coverage, a change in business process, or financial loss.
In his recent study, according to three severity levels, WebStrategies Jeremiah Owyang categorized each crisis as below;
1. Crises that result in negative coverage in mainstream media;
2. Cises that result in negative coverage in mainstream media, and a significant response or change by the company;
3. Crises that result in short-term financial impact.
Interestingly, the study found that more than three-fourths (76%) could have been diminished or averted had companies invested internally.
The study is an excellent, level-headed view on Social Media, it also found out that how the advanced companies used readiness to their advantage to spearhead internal change momentum. Like establish governance, define real-time processes, foster a culture of learning, and organize intoa scalable formation.
Below is the full embedded report, which details the methodology, findings, and recommendations. You can read it and also can download it from slideshare at well, there are no registration pages.