How to Play Social Technologies

Globally, businesses are about to experience the greatest changes since the advent of the Internet. We call it the Groundswell, and in our new book, Groundswell: Winning In a World Transformed by Social Technologies (co-written by Charlene Li), we explain what it is, how businesses can benefit from it and how it will change the world.

The groundswell is what happens when people connect with and draw strength from each other, using social technologies online. It includes not just the social networks like Facebook and MySpace (News Corp. (NWS Quote)) that get all the attention, but a whole range of applications that connect people with each other -- blogs, wikis like Wikipedia, user-generated content sites like YouTube (Google(GOOG Quote)), discussion forums, ratings and reviews like the ones on Amazon.com (AMZN Quote), and even the endless chatter created by new applications like Twitter.

And while these technologies are evolving at a rapid pace, the trend is constant. People connecting with one another are powerful and that power threatens institutions, such as corporations.

From JetBlue to 'Jericho'

When JetBlue (JBLU Quote) stranded thousands of people on planes on Valentine's Day 2007, a blog called jetbluehostage.com energized the protest that led, eventually, to the ouster of JetBlue CEO David Neeleman.

Fans of the cancelled CBS (CBS Quote) show Jericho, organizing online, sent over 20 tons of peanuts to the office of CBS executive Nina Tassler, persuading her to bring the show back to CBS (where it failed to get the ratings to continue).

This is the full-throated groundswell at work. The balance of power has swung in favor of the customers, and it's not coming back.

P.O.S.T.

Companies can't stop it, but they can take advantage of it. That is what Groundswell is about. And it's all based on a simple four-step process we describe with the acronym POST.

P stands for people -- analyze your customer base and its social capabilities. If you're selling soft drinks to college students, connect with them on Facebook. If you're selling retirement plans to 55-year-olds, don't waste your money -- they're not big on social applications.