NineMSN: Social networking sites help boost business: expert
On Tuesday we ran a media briefing ahead of the Enterprise 2.0 Executive Forum on 19 February. Someone just pointed out to me that NineMSN wrote up the story under the title Social networking sites help boost business: expert.
Since basically the whole article is direct quotes from me, I think it’s OK to put it below. It’s good to see these themes getting taken up in the media, because they really are important.
I however have to totally disclaim the last paragaph in the story, which is a major misquotation. What I in fact said is that there are far too many senior executives who are afraid of negative opinions. It takes strength and leadership to open out the organization, and many of the current crop of top executives are not showing the leadership needed for the current business and social environment.
Facebook, Instant Messenger and other online networking tools aren’t mere workplace distractions — they improve the way we do business.
Future Exploration Network chairman Ross Dawson says that a firm’s success increasingly hinges on its ability to share knowledge and expertise both with its employees and external clients.
“Organisations have always functioned like social networks,” he said.
“People are more likely to get information from the people they know well or like, or the ones they believe have the relevant expertise.”
In an era where structured repeatable processes like invoicing and recruitment are well established, the best way to differentiate firms is by their ability to network, Mr Dawson said.
Many firms already are drawn to the fluid, flexible approach to communicating offered by Web 2.0 applications such as social networking sites, blogs and virtual worlds.
“It’s about the ability to connect expertise and talent in ways which are more efficient and effective in creating value … whether that means finding new business opportunities or responding to market place changes,” he said.
Mr Dawson was speaking ahead of the Enterprise 2.0 Executive Forum at Sydney’s Luna Park next Tuesday.
He also said investment banks in Australia already are quite active on 2.0 applications for internal communications: Microsoft allows any of its employees to set up a blog and Westpac uses Second Life for employee induction.
Mr Dawson added that firms which ban employees from accessing 2.0 applications like Facebook or YouTube often face a backlash.
“If you work in an organisation that doesn’t trust its employees, people won’t want to work for that organisation,” he said.
“Blocking sites puts existing employees off side and you lose talent.”
Mr Dawson also acknowledged some drawbacks to hosting these applications, including that disgruntled employees can more easily spread discontent within an organisation through negative opinion.
