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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Best Buy: BlueShirt Nation

Two years into implementing BlueShirt Nation (BSN) at Best Buy Co., Gary Koelling and Steve Bendt see internal social networks as organic entities. Many of the goals they had for the platform in 2006 had to be scrapped once the site -- which now hosts more than 20,000 participants -- took off.

Now senior manager of social technology, Koelling was a creative director in Best Buy's advertising organization when he and Bendt first thought of using technology to harvest marketing ideas from store employees. "The promise of being able to go out and tap into 140,000 employees and use computer magic to do it was really attractive to us," Koelling says. He figured it was a matter of gathering support, getting funding and laying out the steps to meet that goal.

Instead, "we got schooled quickly that not only did we not know about [technology], we also didn't know how people would react to a planned social network," he says.

For instance, instead of providing answers to Koelling's and Bendt's questions, participants preferred to talk about World of Warcraft or something funny that happened at work.

BSN is based on open-source software, and since internal IT lacked those skills, Koelling hired a development firm. The network was promoted virally; all participants found it through referrals or word of mouth.

On the site, employees can create their own profiles and host forums on topics of their choosing. The result, Koelling says, "is more scrumptious than what we hoped for."

Now that employees are connected, the site is rich with idea exchanges and discussions that have even helped change company policies. For instance, when one employee posted his thoughts on why it would be beneficial for all full-time employees to have e-mail access, it sparked a conversation that eventually led to a shift in policy to enable just that.

To Nick Pfeifer, a retail associate in one of Best Buy's Colorado Springs stores, the site provides a social outlet, a protected place to discuss work- related topics and a way to close the gap between store workers and corporate employees. "As with any big company, it's easy for the message of the customers to be lost when you don't turn your attention to the people who interact with them on a regular basis," he says. "Until BSN, there's always been a schism between the two."

To help close that gap, the site now includes an application called Loop Marketplace, where people can post new ideas, with the hope that a Best Buy executive will notice one and fund it. The challenge is to encourage more execs to visit it, Koelling says. "We're trying to find ways to make visiting the Loop Marketplace a part of their workflow."

Web 2.0

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