TORONTO--(MARKET WIRE)--Sep 8, 2008 -- According to a global survey conducted by an independent market research firm, Canadian companies that have adopted new forms of media are seeing improved customer relationships and increases in sales. Despite this early evidence, most companies have no formal plans to manage the adoption of social media (such as instant messaging, blogs, wikis and social networking) or leverage its benefits.

In fact, more than half of respondents said senior executives and IT staff are resisting adoption out of fear that it will sap worker productivity, and 60 percent believe management do not understand the potential social media offers employees and customers.

The study, commissioned by Avanade, a global IT consultancy, surveying more than 500 global top executives, also found:

 
  1.  Social media technologies have the potential to transform the way
      companies build and manage relationships with their customers.
  2.  Apathy, fear and uncertainty -- more than costs -- are preventing
      companies from formally adopting social media technologies.
  3.  Social media technologies are invading the workplace by stealth.
      Companies know this, but most have no formal plan to manage them.

"Social media technologies are reaching a turning point -- they are no longer lingering outside the domain of IT departments. Companies that do not adapt to these changes or move fast enough will lose customers," said Mike Pazak, Vice President of Enterprise Business Solutions at Avanade. "We're working with organizations to deliver solutions that take advantage of the ways social media can impact customer relationships, opening up a new level of internal and external collaboration."

Key data includes the following:

 
  --  More than 75 percent of companies worldwide admit that social
      networking will come into the business by stealth if not proactively
      managed.
  --  9 out of 10 companies understand that the next crop of employees will
      usher social networking into the workplace.
  --  Approximately 60 percent of respondents say integrating social media
      technologies is not on the agenda.
  --  Only 18 percent of respondents have any kind of strategy in place to
      integrate these technologies within the company for employees.
  --  More than 60 percent also agree that social networking is the next
      major step in collaborative activities and technology for a business.
  --  The key barriers to adoption of social media technologies are
      concerns about security (76 percent); senior management apathy
      (57 percent); and, fear of using unproven technologies (58 percent).
  --  Half of companies fear a negative impact on productivity.
  --  3 out of 5 companies agree that senior managers do not understand the
      potential that social networking offers both for employees and
      customers.
  --  Two-thirds of companies see improved customer satisfaction from the
      adoption of social media and 64 percent report an improved reputation
      in the marketplace.
  --  Already 2 in 5 companies can directly associate an increase in sales
      with the move to using new forms of media.

Key data for Canada includes the following:

 
  --  The primary driver for implementing social computing technologies
      within the CRM strategy is improving customer service long-term.
        -  68 percent of Canadian companies view social networking as the
           next step in collaborative activities and technology for a
           business, and that companies that fail to embrace social
           networking technologies for business purposes will be left
           behind.
        -  Approximately 40 percent of Canadian companies fear that they
           will lose customers to companies that are embracing the use of
           social networking technologies.
  --  Fewer Canadian companies use social media technologies than the US.
      Specifically, Canadian companies are more concerned about using
      unproven technology (61 percent) and security (83 percent) than their
      American counterparts (49 and 77 percent), but are less concerned
      with costs (28 percent vs. 41 percent) and senior management apathy
      (50 percent vs. 67 percent).
  --  Most Canadian companies (83 percent) believe social networking will
      come into the business by stealth if it is not proactively managed,
      but a mere 16 percent of Canadian firms have a fully implemented
      strategy for integrating social computing for employees.
  --  87 percent of Canadian companies agree that, to meet the expectations
      of younger employees, they will be forced to increase use of social
      networking media and technologies.
  --  Canadian companies view the key benefits as being improved feedback
      (78 percent); reduction in time to resolution for support issues
      (78 percent); and, particularly, creating a perception of the company
      of forward-looking (89 percent).

About Avanade

Avanade is a global IT consultancy dedicated to using the Microsoft platform to help enterprises achieve profitable growth. Through proven solutions that extend Microsoft technologies, Avanade helps enterprises increase revenue, reduce costs and reinvest in innovation to gain competitive advantage. Avanade consultants deliver value according to each customer's requirements, timeline and budget by combining insight, innovation and the talent of our global workforce. Avanade, which is majority owned by Accenture, was founded in 2000 by Accenture and Microsoft Corporation. Avanade has more than 8,000 professionals serving customers in 22 countries worldwide. Additional information can be found at www.avanade.com.

About the Survey

The Coleman Parkes Research survey, "CRM and Social Media: Creating Deeper Customer Relationships," interviewed 541 top executives spanning senior management, lines-of-business management, IT managers and sales and marketing executives across North America, Europe and Asia-Pacific. For more information on this study and Avanade's CRM expertise, please visit http://www.avanadeadvisor.com/CRMsocialmedia.

Avanade and the Avanade logo are registered trademarks or trademarks of Avanade Inc. Other product, service, or company names mentioned herein are the trademarks or registered trademarks of their respective owners.

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