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 Dear Inner Circle Members,
Social networking Websites have emerged as a Web marketing tool. What started as a teenage craze today has big enterprises striking deals in the virtual world.
Companies can no longer ignore the reach generated by social networking sites. More than 70 million active users comprise Facebook, with thousands more new registrants signing up every day. The reality is that online social networking is changing the fabric of business, and the organizations that have determined how to best integrate them into their operations will be the ones that are most successful.
According to Forrester Research, while today the vast majority of Web 2.0 applications are internal, spending on external applications will dwarf that soon. Blogs, wikis and social networking tools that are now being used for internal communication, collaboration and knowledge management will increasingly be used to communicate and collaborate with customers and partners.
Looking at some of the critical ways social networking can value add to the enterprise, it's safe to say that the online social era has truly arrived!
Extending the marketing arm: The evolution of Web 2.0 is elevating users’ expectations of Web sites. Consumers want a steady supply of fresh content, as well as the ability to participate in content creation, even if it's limited to rating articles They also want to be able to subscribe to RSS feeds so information comes to them, instead of having to search for it. These capabilities are changing media consumption patterns. Companies are using these sites not only to "push" messages to consumers, but also to create engaging social environments that enable communication and self-expression. This helps marketers practice "crowdsourcing," an approach that engages the audience with the brand at a more personal level.
For many companies, getting off the ground with blogging and a company-wide blogging policy is a good first step. At Sun, social networking is encouraged as part of the company's culture of openness and trust. Since going live in April 2004, Sun has accumulated more than 90,000 blog entries with 4400 bloggers contributing to nearly 4000 blogs. And leading the list is Sun CEO Jonathan Schwartz, who remains one of the few Fortune 500 CEO bloggers today.
Online networks enable exceptional customer support that goes beyond the basics of just troubleshooting; they allow customers to connect with experts in an organization who have deep knowledge in a particular area.
Connecting companies to customers: Online networks enable exceptional customer support that goes beyond the basics of just troubleshooting; they allow customers to connect with experts in an organization who have deep knowledge in a particular area. Similarly, a strong online network enables experts within an organization to be alerted when a problem that requires their knowledge comes into the customer support queue, and facilitates the creation of strong communities in the form of valuable user groups and member networks.
Locating implicit knowledge: Only a fraction of an organization's "knowledge" exists in databases. Another portion exists in the form of explicit documents and reports that may be found on an organizational intranet. The vast majority of organizational knowledge, however, exists only in the heads of its members. Inside an organization, online networks with even basic profiles of its individuals' experience, location and interests can greatly reduce the time required for organizational problem-solving, through enabling faster connection between a questioner and the person who has solved similar problems in the past.
Bolstering recruiting efforts: Organizations have discovered that social networking sites are excellent sources of candidate information. In addition, these sites provide the ability to more specifically target the recruiting efforts, mapping the enterprise requirement with that of the candidate's ability. This helps in segregating the categories and the selection process is less tedious.
Increasing differentiation: In a number of industries, the fit between customer and service provider is the differentiator. If a customer can easily identify his or her areas of commonality with a prospective service provider, that customer can have some assurance that the service provider will understand the customer's point-of-view, and provide the type of service that the customer expects and supports.
Often it is pondered to what extent should top management participate in social networking? The consensus is — it depends. It depends on the social network being considered, what is to be accomplished, and the personality and skills of the executive.
Blogging is one aspect of social networking that executives and managers can use to get their voice heard. If the executive has a flair for writing, it definitely helps to connect with employees, colleagues and peers across geographies and time zones. In terms of virtual worlds, it helps executives to get avatars and start exploring virtual universes such as Second Life, where plenty of good social events, including concerts, jazz clubs, and art galleries allow new users to get their feet wet in "familiar" surroundings and get to know the executive better.
Enterprise content management systems are already showing signs of "social features" and modules. Companies should treat enterprise social networking like all other enterprise communication tools: have governance, set a process, and train and entrust employees to communicate well online as well as in the real world.
Social networking is unfolding in a broad range of technologies and formats, and it is not just the consumer driving this trend. Enterprises are increasingly aware that if they are not seen to be actively participating in an honest, transparent mode in this network, there is a good chance that they will be left behind.
Anil Valluri
Vice President & Managing Director
India GEM
Sun Microsystems
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