Social business model

Organizations that have adopted the social business model utilize social media tools and social networking behavioral standards across functional areas for communicating and engaging with external audiences, including customers, prospective customers, prospective employees, suppliers, and partners.

Combining social networking etiquette (being helpful, transparent and authentic) with business engagement on LinkedIn (for one-to-one interaction), Twitter (for immediacy) and Facebook (for content sharing) more fully involves employees in the organization and increases customer intimacy and trust.

Traditional business models, particularly in large organizations, have had as one common characteristic careful limitation of direct contact between those within the organization and those outside of it. Only certain specific individuals (most frequently in roles such as sales, customer service and field consulting) were designated as "customer-facing" personnel.

Organizations further limited outside access to internal employees through filtering mechanisms such as publishing only a main switchboard number (whether routed through a live receptionist or an interactive voice response system) and generic "sales@" or "info@" email addresses.

The Cluetrain Manifesto (written by Rick Levine, Christopher Locke, Doc Searls, and David Weinberger and published in 1999) was among the first books to predict the demise of this old order and the emergence of more open business models, though most of the business world was slow to adopt the book's recommended cultural changes.

Thirteen years later, authors Dion Hinchcliffe and Peter Kim added structural underpinnings to the cultural shifts outlined in The Cluetrain Manifesto in their book, Social Business by Design. The book details many of the ways social media tools and practices are being adopted within organizations, to support both internal employee collaboration and external customer engagement (which the authors describe as the "bigger problem").

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