The use of social networks as a collaboration tool in business

10/02/2010
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This morning I was sent a most interesting press release; a global study conducted by IESE for Cisco on how companies use social networks highlights the growing need for control and involvement by the IT department.

I cannot simply share it through the blog; it is excellent.

As a headline: the lack of IT policies, processes, and architectures puts organizations at risk.

Cisco has published the results of a global study aimed at evaluating how companies use social networks to collaborate externally. Among the study’s conclusions, it highlights the increase of social networks in the business environment and the need for a control system and more direct involvement from IT departments. The study, conducted by IESE, the Rochester Institute of Technology in the US, and the Henley Business School in the UK between April and September 2009, involved 105 participants and representatives from 97 organizations across 20 countries worldwide.

“The increase in connected users is driving a change in attitude toward the market within the company, generating ‘people-driven businesses,’ where social networking tools and cooperation technologies are the fuel for next-generation productivity,” says Nick Earle, Senior Vice President at Cisco Services. “In adopting the tremendous capacity of social networks, companies that succeed will be those capable of designing a collaborative IT architecture that supports the use of these technologies while protecting themselves against the risks they pose.”

Social networks, a collaboration tool

The study’s findings indicate that the business world is in the early stages of adopting social networks as collaboration tools. The use of social networks, such as Facebook and Twitter, as collaboration platforms is connecting organizations with the outside world in a multitude of formats. These tools bring technology closer to companies, providing new collaboration experiences, new information channels for individuals, and establishing potential sales tools that improve brand perception and user confidentiality.

Furthermore, the study highlights that organizations currently face the need to increase control over the use of social networks and to achieve more direct involvement from IT departments, which can affect the integration and adoption of these new platforms and technologies.

“The study’s findings highlight that the capacity and influence of social networks in companies are not sufficiently valued, nor are the transformations that companies must undergo, not only to protect themselves but to encourage and leverage the cooperation methods offered by these tools and social networks,” says Evgeny Kaganer, lead researcher and assistant professor at IESE. “Failing to account for the growing use and influence of social networks and Web 2.0 tools exposes organizations to the risk of misuse, which can lead to the disclosure of information and the deterioration of the companies’ own image.”

Key highlights of the study

This is the first study in a two-part series commissioned by Cisco to explore the impact of social networks and collaboration applications within the enterprise. Some relevant data from this first barometer include:

  • 75% of the organizations interviewed identify social networks as the social dissemination tools they use most, while barely 50% also identify the widespread use of microblogging.
  • Social networking tools are reaching core areas of the value chain, such as marketing, communications, human resources, and customer service departments. In marketing and communications, these tools are already an integral part of organizational initiatives; and communication departments have understood and begun to act on ‘broadcast’-centered communications based on ‘conversation’ and much richer interaction.
  • Small and medium-sized enterprises actively use social media channels to generate leads, but this remains a growth opportunity largely reserved for larger companies.

Need for more IT control and involvement regarding social media

  • Only one in seven companies participating in the research states that it has a formal process associated with the adoption of social networking tools for corporate purposes, indicating that the potential risks of these tools are being ignored or misunderstood.
  • One in five participants identifies some form of existing regulation regarding the use of social networking technologies in the company. Among participants, the control of social networks usually involves more stakeholders than in other corporate initiatives, as these organizations have yet to define who owns external social media strategies.
  • Due to the unstructured nature of social networks, companies continue to struggle with creating and adopting appropriate policies, as copying control processes already established in more structured areas (e.g., Information Technology) often does not work with social networks. Companies also appreciate how difficult it is to strike the right balance between the personal and social nature of these tools while trying to maintain a degree of corporate perspective.
  • Only one in 10 participants recognizes direct IT involvement when addressing social media initiatives. Although the IT department is not usually involved initially in decision-making, respondents recognize the need for these tools to be properly scaled and integrated into existing business processes to get the most out of them.

The future of social networks and collaboration tools in the enterprise

  • Overall, respondents assume that social networks and collaboration tools will continue to evolve, as will their complexity. Furthermore, these tools will continue to influence how business activities are currently conducted. The key for organizations will be how these tools are adopted and integrated into the company’s IT environment.
  • Regarding the adoption, deployment, and control of social networks in the enterprise, it is necessary to address when, how, and which initiatives will be launched (or not), how enabling technologies should be handled, and how employee use of these technologies will be managed.

You can see more about the study on my slideshare channel

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