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NineMSN: Social networking sites help boost business: expert

Ross Dawson, February 14, 2008 2:24 AM US PT

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.

For the most current insights and trends in the living networks, follow @rossdawson on Twitter!

Ross Dawson is globally recognized as a leading futurist, entrepreneur, keynote speaker, strategy advisor, and bestselling author. He is Founding Chairman of four companies: professional services and venture firm Advanced Human Technologies, future and strategy consulting group Future Exploration Network, leading events firm The Insight Exchange, and influence ratings start-up Repyoot.

Ross is author most recently of Implementing Enterprise 2.0, the prescient Living Networks, which anticipated the social network revolution, and the Amazon.com bestseller Developing Knowledge-Based Client Relationships (click on the links for free chapter downloads). He is based in Sydney and San Francisco with his wife jewellery designer Victoria Buckley and two beautiful young daughters.