Join the site called Linkedin.com and setup your “business” profile. While many businesses use social networking sites or buy islands in virtual worlds, some argue that their use is not a model for doing business.
What are the arguments for and against social networking being classified as a business model?
Traditional business models assume a vertical organisational structure in which communication flows are mainly top-down. Dutta and Fraser (2009) argue that this model is outdated and failing (think of the global financial crisis) and it’s time for business leaders to recognise the social architecture of their companies and adopt a Web 2.0 business model. While social networking is well-suited to organisations which are non profit-orientated, eg in areas such as education and medicine, there are some good reasons for profit-making organisations to carefully consider the pros and cons before deciding to include social networking in their business models:
FOR:
Possible release of confidential information
Possible source of “governance violations or breaches of company protocol” (Hoover, 2007)
Time wasting
Lack of control if site is outside a firewall – possible risk situations eg potential imposters
What are the arguments for and against social networking being classified as a business model?
Traditional business models assume a vertical organisational structure in which communication flows are mainly top-down. Dutta and Fraser (2009) argue that this model is outdated and failing (think of the global financial crisis) and it’s time for business leaders to recognise the social architecture of their companies and adopt a Web 2.0 business model. While social networking is well-suited to organisations which are non profit-orientated, eg in areas such as education and medicine, there are some good reasons for profit-making organisations to carefully consider the pros and cons before deciding to include social networking in their business models:
FOR:
- Importance of relationships in obtaining business in some fields, eg law
- Facilitates information sharing
- Increases opportunities for work-related collaboration
- Marketing opportunities
- Recruiting tool
- Peer networking opportunities
- Enables speedy co-ordination and communication within an organisation and between organisations
- Improves communication for isolated employees
- Communications are accessible by all members
- Management can monitor employee contributions, eg to identify issues or to identify staff skills
AGAINST:
References:
Dutta, S. and Fraser, M. (2009). Global leadership in a Web 2.0 world. OECD Observer, 273. Retrieved October 22, 2009, from ABI Inform database.
Hoover, J. (2007). Social experiment. Information Week, 1155. Retrieved October 22, 2009, from ABI Inform database.
No comments:
Post a Comment