Social networks are changing the way that businesses innovate. The crux of innovation is to detect where, when and how trends are evolving, where the trends will lead, and also what these signal about future trends that are not yet obvious. Analytics are therefore key to a good innovation strategy, and by analysing what is being said on social networks, businesses can detect what the current trends are as well as helping them to predict and shape future trends. Predictive analytics should be about looking forward to make fact‐based decisions about what might happen versus looking backward to understand what has happened.

So how can businesses make use of social networks to predict and shape future trends? Step one is listening to what people are saying about you on social networks, as social is where they are talking about your company, your products, and your services. Traditional focus groups, surveys and market research studies won’t cut it in today’s connected world. Today, we need to be actively listening all the time to our customers, influencers, competitors and communities of people that can impact our businesses. Social media have established a constant flow of conversations, so if you want to have the very best analytics possible, then you first have to have the means to listen to the flood of chatter.

An example of a listening post is Dell’s Ground Control, which tracks on average more than 22,000 daily topic posts related to Dell, as well as mentions of Dell on Twitter. The information is sliced and diced based on topics and subjects of conversation, sentiment, share of voice, geography and trends. Knowledge is power and by understanding your customers needs and desires businesses can develop innovative products to quench demand. Such systems must also be on the lookout for third parties with alternate agendas as well as customers, as they could post trolls, using capabilities similar to those that can be found in Persona Management Systems, to raise negative points.

Persona Management Systems, more commonly known on the World Wide Web as sock puppets, trolls and drones, provide a single user with multiple online personas. This system creates all the online background that a “real person” would posses including, history, supporting details, and cyber presences that are technically, culturally and geographically consistent. This provides the persona with a disguise that users can put to use in creating the impression that there is major support, or discontent, for what an organisation is trying to achieve.

Using sock puppets, trolls and drones dives directly into deep waters of business ethics. By using these tools businesses actively mislead customers to believe statements that are not necessarily true. Using capabilities similar to those that can be found in Persona Management Systems, some businesses infiltrate social media to conduct psychological cyber warfare by creating the illusion of consensus. And consensus is a powerful persuader. What has more effect, one person saying the BP wasn’t at fault for the Gulf oil spill? Or 500 people or sock puppets saying it? For many people, the number can make all the difference.

Having a strong voice across social media platforms is important for innovation, as you can hear what your customers want, as well as guiding them towards a product that they could desire. If a business is thinking about launching a new product and they want to drive demand, then creating consensus or the illusion of consensus can help persuade potential customers to keep an eye out for your new release. The more excitement a business can raise around a product, the more people will eagerly anticipate buying the product.

Social networks are an important part of an innovation strategy, as businesses can use these networks for analytics and to influence demand for products/services. Social networks provide a cheaper alternative to focus groups, surveys and market research. Companies must listen to the chatter on social networks as this can help them to predict future trends, as well as see what their customers want. Businesses can also use social networks to guide their customers and create a buzz around new products and ideas.