Social intranets have great potential to significantly reduce the amount of money companies, large and small, spend on IT. As if that wasn’t benefit enough, it’s even “estimated that as high as *$900 billion to $1.3 trillion in value can be unlocked through social technology usage in companies today.”
In fact, a study found that “companies that invest the most in IT aren’t always the best performers.” Unexpectedly however, small and mid-size companies often spend more money – about 6.9% of their revenue – on IT than larger businesses that spend an average of just 3.2% of their revenue on IT**.
How much dough does that actually translate to? Let’s put it in perspective this way: midsize companies spent about $13,100 per employee on IT and large ones spend $11,580. No matter which way you slice or dice it, these numbers sound really high, especially in light of a social intranets that cost less than $15 a month per employee (and some like Incentive that are only $9 a month per user).
The advantages of social intranets abound, but let’s look at a few ways they can significantly reduce your IT costs and increase the bottom line.
Consolidate Your Business Apps onto a Single Platform
People are app crazy these days! TechCrunch reports that people use around 24 apps per month, and a NorSIS Password Survey found that the average worker has 8.5 passwords to remember.
This tells us that employees are using too many apps, platforms and tools at work to get stuff done. Social intranets consolidate these apps and functions into a single platform, meaning dramatically less time spent trying to track things down, lower costs and fewer passwords to remember! By keeping everything in one place, accessible to everyone in the company, you create a more efficient work environment and significantly reduce the number of business tools you have to manage and pay for.
Avoid the Need for Expensive and Fancy Customization
When most people hear “IT,” they think of expensive set-ups, support staff and fancy customizations. SharePoint is one of the most commonly used internal communication platforms; it’s estimated that 80 percent of Fortune 500 companies use SharePoint! While it can be a powerful tool, it has some shortcomings in the areas of collaboration, ease of use and cost-effectiveness. Not only is SharePoint expensive for initial installation, but an often-cited statistic says that for every dollar a company spends on SharePoint licenses, they spend $6 to $9 on customization.
However, with a social intranet covering almost all of your business needs, you can take your IT guy off speed dial. Most social intranet platforms (Incentive included) are so intuitive and easy to use, that anyone in the company – from secretary to CEO – can begin using it right away. Customization is in the hands of the people, and you can start pocketing your saved cash for a company happy hour or that blowout spring/summer party instead!
Go For the Cloud and Abandon Pricy Equipment
Part of what can make IT infrastructure so expensive is the labor and equipment needed to set up on-premise installations. While some social intranets can be installed including Incentive on-premise if companies have security protocol they need to follow, they can all also be run on the cloud eliminating the need for expensive hardware, servers and maintenance.
Technology-associated costs are an inevitable business expense in today’s workplace. While expensive to implement, IT infrastructures bring a lot of value – but I'm of the school of thought that just because it’s expensive doesn’t mean it’s good. Social intranets are not only more cost-effective, but they’re on the brink of transforming the culture of collaboration and productivity in the workplace. The many are smarter than the few...
Connect, Communicate & Collaborate by experiencing the power of a social intranet for your organization, visit Incentive at www.incentive-inc.com for a test drive.
*McKinsey Global Institute The social economy: Unlocking value and productivity through social technologies
** Based on IDC Workforce Survey
Incentive is a leading provider of a complete, socially powered enterprise collaboration platform for mid-market organizations and enterprise teams that want to achieve improved profitability, increased efficiency and accelerated business results. With an easy-to-use interface, Incentive’s platform enables businesses to capture, collaborate and secure knowledge all in one place by tapping the power of their employees – the collective brain trust – to be better, stronger and faster than their competitors. Designed for organizations using Microsoft apps, architecture and services, Incentive allows users to take advantage of existing workflow apps, storage systems, and document management tools such as SharePoint in one central location, with single sign on and intelligent search. Its features include wikis, blogs, micro blogging, document collaboration, file sharing, instant messaging, video conversations, social behavior UX and API-based platform for app development. Founded in 2008, Incentive has helped thousands of customers worldwide accelerate positive business outcomes through improved collaboration and communication. The company has headquarters in Los Angeles and Malmo, Sweden. For more information visit www.incentive-inc.com and follow on Twitter @IncentiveInc