Paper Presented at the Emnet 2011

Paper presented at the EMNet 2011

December 1 – 3, 2011, Limassol, Cyprus

(http://emnet.univie.ac.at/)

Social Networking and Knowledge Management

Zeljko Panian, Ph.D.

Professor at The Faculty of Economics and Business

University of Zagreb

Croatia

Abstract – Social networking is an outstanding part of a broad range of Internet technologies named Web 2.0 technologies. The concept of Web 2.0 is often referred to as an umbrella term, used to explicitly express the framework of ideas and technology it creates. An essential part of the Web 2.0 is user contributed content and knowledge creation. This knowledge is published, enriched, shared, communicated and combined. From a knowledge management point of view, the essential aspects of Web 2.0 can be summarized into six important processes. Social network analysis is a highly effective tool for the analysis of knowledge sharing in networks as well as for the identification and implementation of practical methods in knowledge management.

Keywords: Web 2.0, social networking, knowledge management, social networking analysis, knowledge networks

1. Introduction

The theory of social influence states that an individual’s behavior is intentionally or unintentionally affected by other people according to how that individual perceives himself in relation to his influencers. In the social networking arena, this theory holds true. Behavior and actions vary according to how people view themselves within the various online social communities.

The term “social networking” is used to describe a set of Internet tools that enable shared community experiences, both online and in person. A community, in this context, is a group of people with common interests who connect with one another to learn, share knowledge, work, organize and socialize (AT&T, 2008). Social networking was born out of the personal empowerment and freedom the Internet offers.

Social networking is an outstanding part of a broad range of Internet technologies named Web 2.0 technologies. The concept of Web 2.0 is often referred to as an umbrella term, used to explicitly express the framework of ideas and technology it creates. An essential part of the Web 2.0 is user contributed content and knowledge creation. The user contributed content is collaboratively annotated (e.g. by tags), shared in social network platforms and collaboratively improved (e.g. in wikis) harnessing the collective intelligence of the individual users and leveraging network effects.

Social networking was born in the race to imagine and test new frameworks of interaction among people, and exploded into common usage as it responded to the needs of a new generation of Internet users, their lifestyles, working habits and their concerns (Salpeter, 2011). Its success through applications such as MySpace, Facebook or LinkedIn has made it compelling although the business models and thus possible longevity of these tools are still evolving. The corporate world follows closely behind the consumer space: many companies already communicate on their experiments and a large and fast changing portfolio of solutions is being made available.

The knowledge managed within social groups lies in content contributed by the users. This knowledge is published, enriched, shared, communicated and combined. From a knowledge management point of view, the essential aspects of social networking can be summarized into six important processes: knowledge syndication, collaborative knowledge creation, collaborative knowledge exchange, knowledge and meta-knowledge sharing, group and organizational knowledge development, and knowledge orchestration.

2. The Business Impacts of Social Networking

2.1. Major characteristics of social networks

Like many things related to Web 2.0, social networking has numerous definitions. Three viewpoints from the perspective of three globally known companies are listed in Table 1.

Organization / Definition
McKinsey / Social networking refers to systems that allow members of a specific site to learn about other members’ skills, talents, knowledge or preferences (McKinsey & Company, 2007).
Pew/Internet / A social networking site is an online location where a user can create a profile and build a personal network that connects him or her to other users (Pew/Internet, 2007).
Wikipedia / A social network service focuses on the building and verification of online social networks for communities of people who share interests and activities, or who are interested in exploring the interests and activities of others. It provides various ways for users to interact - chat, messaging, email, video, file sharing, blogging and discussion groups (Wikipedia, 2011).

Table 1 - Selected definitions of social networking

In academic terms, a social network is a group of people or organizations that are bound together by some common set of values, ideas or interests. The individual participants in a social network are generally called “nodes”, and the relationships between the nodes can be measured in a number of ways. A social network map shows how each node interacts with the others, and the number of interactions is an indicator of a node’s “social capital”. A node which is tied directly with many other nodes is more connected with the network, and therefore has a higher capital value.

The current interest in social networks is driven by Web sites that have applied the theories of social networking to support online communities. The Web eliminates at least some of the need for face-to-face interaction, letting people connect no matter what the geography and no matter what the time. Initially popular with teens and college students, sites like Facebook and LinkedIn are now being used by people of all ages and occupations. Online social networking reflects main issues of contemporary culture, and this motivates businesses to consider the opportunity it represents.

At the core of an online social network there is generally a Web site and some associated tools, usually based on Web 2.0 technologies, to help participants establish connections and grow their networks. Some social networks are free, others have a membership fee. Users typically sign up for an online Web page (generally called a profile), where they create and share their personal information. Most social networks have ways to publish photos, create blogs and wikis, as well as to find and connect with people who have similar needs and interests to share content.

For business people, the networking benefits emerge as the individual members view each other's information and begin to communicate. People may exchange information about shared business issues, try to fill a job vacancy or look into ways to collaborate on a project. Privacy controls let users decide who can or cannot see their profiles; in some systems, they are encouraged to ask for introductions from current contacts rather than approach a stranger directly. Connections form between people with mutual acquaintances who see some business value in the relationship.

A social network is a tool that is working for people involved all the time. It can help them gain inside connections and gather information that could provide them a competitive advantage. In a hiring and recruiting context, huge numbers of job seekers can be connected to. The potential marketing and public relations benefits can be significant as well, but will depend on the degree of each individual’s engagement (Kabani, 2010).

But, not everyone is comfortable with virtual connections. The ability to explore and take advantage of the technology depends on an individual’s personality. Workers cannot be pushed into using social network platforms, and the value derived from a social network depends heavily on how much effort people put into it. For those who are willing to engage and participate, a social network can offer some real business value. It can increase their number of personal contacts, thereby helping them build their business. It can be a way to find sales opportunities, learn from others, share best practices, connect with new clients, and generate referrals. It can also help find others in the industry who might be interested in partner relationships.

The social networking experience is not without a down side. Putting personal or business information on the Web always carries an element of risk. A recent article reported that hackers have begun to target high-level executives, using the email addresses found on social network sites. Also, it needs to be understood that the benefits won’t accrue over night; Web-based networking takes time and effort, just like traditional networking.

2.2. Types of social networks and their business benefits

While originally a consumer-based technology, social networking has been adopted by enterprises as a way to share ad hoc information. Although the term ‘social networking’ sounds incongruous within a corporate workplace, the technology and the practice of sharing personal information that grew out of Web 2.0 consumer applications provide a faster and easier way to connect with people and share information.

In many cases, the adoption of social networking applications was driven by users who adopted consumer technologies for use in the business environment. Recently, large enterprises began deploying these applications to make them more widely used and to bring the software under the IT umbrella to standardize technology and practices.

Enterprise users can participate in many more ‘communities of knowledge’ and ‘communities of practice’, both inside and outside the company, thus changing the way organizations communicate and innovate (Hara, 2010). Whereas individuals used to have to join each group separately, social networking applications allow users to associate their profiles with many groups, centralizing personal information and content and avoiding the need for replication and reiteration. The result can mean better leveraging of corporate knowledge and can lead to increased corporate productivity.

Enterprise social networking applications are optimized to collect unstructured information and connect users to relevant people and content. Enterprises typically use these applications to create communities for employees, partners, customers, or developers. The constants that define enterprise social networking applications are:

·  User presence, typically visible via a profile or collection of content and comments

·  Ability to link between users and make connections, thus creating a networked ecosystem of nodes

·  Functionality (blogs, wikis, forums) that enables interaction between users, which also adds richness and informs the community about the user.

Organic on-line communities have tantalizing potential value for the business world, whether they are used internally to help colleagues find others to incubate ideas into tangible projects or used to create closer relationships with customers, suppliers or business partners. However, the task of integrating a number of disparate applications looms large for any enterprise environment.

Fortunately, as the market for these applications has evolved, vendors have begun to do the integration themselves, offering solutions with user profiles and various social media applications (e.g., blogs, wikis, forums) all on one platform. These integrated applications bring new value to the enterprise by linking individuals to one another and providing relevant content and tools across the organization. And, of course, this networking can extend beyond the firewall to engage partners and customers in the dialog.

Table 2 shows the typical types of company-sponsored social networks and associated business benefits.

Type of Community / Typical Reason Why Companies Deploy Social Networks
Customer / ·  Increase Web traffic with persistent engagement
·  Gather real-time input from customers on their needs
·  Increase brand awareness and loyalty
·  Solicit customer-driven innovation
Employee / ·  Enhance teamwork
·  Discover new ideas and accelerate innovation
·  Encourage cross-functional inputs to drive better decision making
·  Create a company culture of knowledge sharing and learning
·  Increase communication by leveraging intra-employee communications to a broader audience
Partner (suppliers, channel partners, developers, consultants) / ·  Coordinate communications, accelerating cross-company performance
·  Increase sales through real-time market intelligence and collaboration
·  Encourage co-innovation to better serve joint customers and markets
·  Create an interdependent ecosystem of partners that drives increased revenue for all participants

Table 2 - Social network deployment by type of community

2.3. Business value of social networking

Having the facts mentioned above in mind, and parallel to growth in popularity of Web 2.0 technologies, particularly social networking, businesses strategists and managers are trying to recognize their power and potential they offer to better conduct and govern corporate activities, both in the B2C (business-to-customer) as well as in the B2B (business-to-business) sphere.

In most cases, the business value of participation in a social network can only be seen indirectly. Social networks exist at the individual level, so the primary value accrues to the individual employees who are using the network to connect with other people. To the degree that those employees are effective ambassadors of their company’s brand, they will improve their company’s reach and reputation, while building their own store of social capital. However, if those individuals leave the company they will carry that earned social capital and knowledge acquired with them.

As social networks mature, their importance to business will increase (Safko, 2010). Social networks are becoming more important as tools for building relationships with customers, prospects, employees, and business partners. Business-oriented applications are just beginning to emerge, since so many sites have been focused on young, consumer-side audiences. As a platform for supporting business, the technology has real promise. We can imagine the value of an application that could highlight upcoming industry events, as well as identify all the people in the network who planned to attend. That could greatly increase the potential for face-to-face networking, as well as the value gained from participation.

In certain situations, companies may even find that sponsoring a social network of their own makes good business sense. For example, a globally popular company Starbucks has recently launched a re-branding initiative that includes MyStarbucksIdea.com. It is a site where anyone can submit suggestions for improving the company’s products and services. Dell Computer has sponsored a similar site as a way to “crowd source” innovation and let its customers vote on suggested product improvements. Companies like YourMembership.com offer integrated platforms to help organizations establish their own social networks, whether they are nonprofit groups or for profit enterprises.

A private social network could also be extended to include people from outside the company, depending on the situation. Many business relationships tend to funnel communication through a single customer representative; broadening that contact point can improve process efficiency. A social network could be established to connect company’s technical staff to their customers’ or partner’s technical staff, or their accounting personnel to their customers’ or partner’s accounting personnel. In the end, social networks are always about making human connections, in order to improve communications and open new avenues for collaboration at any level.