Web 2.0: Companies Gain Competitive Edge with Social Networking Tools

Facebook-like apps and social networking tools are enabling companies to encourage innovation, create flexible work arrangements, establish virtual teams, bring new employees up to speed, improve collaboration, increase retention among people who hadn't felt a strong sense of belonging, and more.

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Microsoft
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IBM: Beehive

Eight years ago, IBM created BluePages, a Web-based corporate directory that includes profiles with contact information, employee photographs, name pronunciation, experience, self-descriptions, bookmarks and blog entries, as well as "friending" and information-tagging capabilities.

"Very early on, we recognized the importance of connecting people within IBM and moving beyond a static view of the individual," says Jeff Schick, vice president of social software. The heavily used directory includes 450,000 employees and gets 6million lookups per day.

With an initiative called Beehive, IBM is experimenting further. The application uses the code base of BluePages, which is based on Lotus Connections, but it's a separate system.

Beehive is intended as a collaborative platform that emulates the physical work environment, where employees display personal items like photographs and trophies and chat about last night's game. "We've added new dimensions to the profile capability to create the old-fashioned camaraderie of the office," Schick says. The idea is to discover whether what Schick calls "the water cooler effect" will help people build stronger relationships and thus create a more effective organization.

For Michael Ackerbauer, a manager in the CIO's office at IBM, the results are already in. He learned about Beehive a year ago, and "I quickly got hooked," he says, especially since he manages a team of developers who work remotely. "It's valuable for the team to get to know me on a personal level, and I like to get to know them."

Ackerbauer says he can now connect with people on a social level that's typically absent when working remotely. Such connections help his teammates relate to one another like human beings and not just as resources or assets. Just recently, Ackerbauer says, he ended up speaking at a technology leadership conference, thanks to a connection he made with another employee who wouldn't have otherwise known he had expertise in the subject area.

Despite its experimental status, Beehive's user population has grown to 38,000 in nine months, mainly through viral adoption. "People find it through word of mouth, when others blog about it or bookmark it," Schick says. Adoption is strongest in the areas of product management, HR, talent management and the global services consulting business.

Because Beehive is behind the firewall, Ackerbauer says, people feel free to discuss internal business topics. For instance, he has used Beehive to explain his views on the topic of breakthrough thinking. "I've had people come up to me and say, 'I didn't know you knew all that stuff. Can we talk more?'" Ackerbauer says. "The connections lead to collaboration, which leads to innovation, which leads to transformations in the industries IBM serves."

Web 2.0

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