IBM and Employee Centred Social Media - Case Study Example

IBM and Employee Centred Social Media Introduction Humans across the globe from days immemorial have formed formal or informal groups and communities to pursue common interests and communicate ideas and beliefs. The process of communication has however evolved over the ages to encompass a host of technology tools and applications that have provided a new dimension to the way people communicate with each other. The use of social networking tools by global enterprises has re-defined conventional managerial strategies to include innovative practices at work. This paper provides an insight into the various aspects of social networking technology based on the paper “Social Network Analysis: Insight into collaboration in the workplace” by Annemieke Zonneveld (2007). The author provides practical insights into ways in which social networks have changed business communication and increased market efficiency. Business collaboration is changing Technology has proved to be a great enabler of change and this is evident in the way it has manifested itself in all sectors of business and commerce and individual spaces. The advent of the Internet has triggered an increase in market opportunities and new business models that have revolutionized the face of management strategies and practices. One of the major contributors to the increasing globalization concept is the communications technology that has opened new vistas of collaboration between individuals and business enterprises. Business enterprises are adopting new and innovative technology and tools for the purpose of improved communications and collaboration between the customers and its associates. The Internet has assumed great significance in improved accessibility and communication revealing a new dimension to sharing and disseminating information across the globe. It has changed the way people perceive markets and communicate with their potential clients or suppliers. The global reach of the Internet has provided businesses with increased scope of connectivity, interactivity, and information transfer between remote corners of the globe. The time and cost advantage provided by this technology has led to optimum utilization of business resources and effective performance standards. The business environment has undergone rapid changes over the past few decades in terms of technology and work culture. The changes in the operating environment have resulted in increasing dynamism among entrepreneurs and organizations to devise and implement strategies for growth and development. Organizations today are more dependent on information technology to support their day-to-day operations and work processes. The information system is being used for various business objectives that include operational efficiency, speedy transactions, managerial decision support, long term and short term strategic planning and to minimize human error rates. Information handling, processing, and transmission are vital to any organization irrespective of business areas. The increased opportunities provided by the Internet have opened new avenues of business growth and development. Access to information systems and data is far easier today than it was a few decades back. The globalization and development in communication technologies have led to the growth of virtual organizations that are visible in the forms of virtual linkages with supply chain partners, outsourcing, virtual malls, or electronic market places and teleworking. The rise of virtual organizations was greatly facilitated by the innovative applications and developments in the field of Internet commerce. Developments in scope of applications have enabled the suppliers and service providers to directly communicate with their customers online and this has created a whole new concept of business management. The emerging collaborative tools include online web forums, social networking applications, blogs and conferencing technologies that enable individuals to share information and ideas for promoting efficiency at work. Overview of social networks Collaboration is one of the age old methods used by human beings to relate and exchange information and ideas. Social gatherings and communities have been instrumental in relaying messages across individuals and groups that serve to satisfy the curiosity and interests of the members. With the advent of the Internet and advancing technology the process of social networking has assumed new dimensions. Individuals have found a new and effective means of connecting and collaborating online through the use of social networks. Social networking has defined a new way of communicating and exchanging information between individuals sharing similar interests. Social networking has enabled enriched communication through “greater global connectivity, the availability of affordable, high quality content and communication devices, and the rise of social software” (IBM GBS, 2008). There are numerous social networking applications that have become the channels of communicating interests and information. These applications such as Facebook, MySpace, Cyworld enable individuals to connect to each other across remote locations. The growth and popularity of these social networking applications is largely attributed to the increasing penetration of broadband and multimedia devices that has provided its users with an interesting and novel mode of connectivity round the clock. “Web sites like MySpace, YouTube, and Flickr have seen their popularity boom with quick and easy technologies for doing everything from creating blogs and forming communities to posting photos and videos on the Web” (BusinessWeek, 2007). Social networks have members with an online profile that serves to identify the individual interests and traits to others within the networked community. The profiles contain details related to the member’s work experience, educational background, interests and skills. The connections formed within the social networks are either past acquaintances or new members who share similar interests. This kind of networking applications has provided individuals, groups and business enterprises with increased power to spread their messages and enable connectivity among users sharing similar thoughts. It has become an effective platform for marketing ideas and thoughts to people across the globe. Social networking hence has created a new form of human bonding that relates to mutual interests and thoughts. “The connections enabled by social networks are the glue that put the humanity back into business to solve the trust problem” (Cerado, 2009). Business value of social networks Businesses have adopted innovative technologies to derive increased commercial benefit and drive business growth. Organizations and business enterprises have adopted social networks to promote new relationships and improved customer service based on improved understanding of consumer needs and requirements. It is a well recognized fact that employees gain confidence through effective coaching and mentoring strategies within the organization. Peer coaching and team collaborations are highly effective in sharing vital information and knowledge resources required to complete the assigned tasks. Hence improving communication within the organization can result in increased efficiency and productivity at work. There are numerous tools and strategies used by organizations to improve communication and social networks have provided a new, innovative and interesting platform for transferring and sharing of knowledge resources. It provides the employees with an instant message sharing service and a useful tool in promoting innovative practices within the organization. A well informed workforce having improved access to requisite knowledge resources and the means of collaborating with individuals having expertise in the specified area are the prerequisites for promoting innovation at work place. The social networks allow the employees and managers to gain an insight into the target audience and their expectations of the line of products or services. It facilitates the organization to conduct market research activities on a global scale and study consumer habits and preferences. Additionally this type of research activity is pursued without incurring much cost. The technology platform enables the organization to gain opinion, consensus and statistics on vital aspects of product marketing, features, and customer service issues. The feedback gained through this medium provides the company with a competitive edge and create an effective differentiation strategy in areas of marketing and product positioning. The overall process of communication is thus effective in increasing the success rate of projects and building a collaborative environment that is driven through improved deliberation and discussions on potential issues and challenges. The use of social networks by organizations to gain business advantage has enabled the employees to remain connected to their peers, customers and suppliers and stay updated on recent market trends and events that have a direct impact on the business strategies. Knowledge sharing and instant access to vital statistics and information is extremely critical in devising appropriate market strategies. Increased and direct communication with customers provides the businesses with instant source of feedback and useful insight into consumer behaviour. A vital factor influencing consumer loyalty and customer retention is effective communication, feedback process and customer service efficiency. This ensures increased customer satisfaction and growing consumer confidence in the company and its products or services. Customer relationship management and development is one of the key features of this technology. Online social networks enable “genuine business relationships to form and puts an authentic human face on interaction, changing the external perception of an organization from a sterile, faceless behemoth into a collection of individuals who are ready to help” (Cerado, 2009). A globalised business environment makes it imperative for multinationals to create and imbibe a feeling of oneness among its employees across the globe. Social networking provides the platform to the employees across various locations to interact and communicate on a regular basis. This is extremely useful in building a positive work culture and increase employee motivation levels. Source: IBM Global Business Services – The Changing Face of Communication, 2008 The chart above provides an overview of the application of social networking in driving business growth and strategies. Social networking tools have been used by organizations to recruit individuals and search potential applicants suitable to the roles and responsibilities required by the companies. The network can hence be used to find expert opinion, knowledge resources, customer support, market research, employee collaboration, and increase flexibility in operations through improved understanding of market trends and changes in the business environment. Case Study – IBM and integrated business social networking IBM is one of the leading global players in the field of Information Technology providing its customers with customised business solutions in the field of computer networking and information processing. The company is well known for its use of innovative technology to leverage business models and strategies for increased market share and growth. IBM has effectively integrated social networks for increased efficiency in operations and enhanced employee productivity. The move towards social networks is justified by the changes in the business environment and the fact that in this “global environment an enterprise must dissolve the boundaries that defined it before while internationally empowering its employees to think of themselves as creative contributors to an ongoing and transparent endeavour” (Carey, 2007). IBM has integrated social networks with customer relationship management (CRM) solutions to build communities and relationships with online contacts to help increase sales, improve response rates and offer efficient customer service (IBM, 2009). This strategy has helped the company in improving customer relationships and developing new contacts for business development and expansion. The recent launch of “Bluehouse”, the company’ first web based application that connects people across the boundaries of the organization to come together and work for business growth and development has provided IBM with a leading competitive edge in the market (IBM, 2008). The Bluehouse technology accommodates features of different social networking and online collaboration tools to facilitate individuals to share and exchange information, data, ideas, conduct online discussion forums, create professional groups and work communities. The technology has the capability to collaborate with customers, suppliers, partners, agencies and experts in various fields to build a network of professionals who can work together to come up with new ideas and means for effective service delivery. One of the strategies used by IBM to promote its services were online “Jam” sessions that were moderated and threaded conversations with employees, customers, suppliers, subject matter experts to encourage innovative ideas, creative thinking and fostering increased collaboration. The online brainstorming session conducted by the company in 2006 was attended by 150,000 people across the globe from 104 countries and 67 companies. The result of this jam session was the launch of 10 new IBM business ventures having a total investment of $100 million (Carey, 2007). This is an outstanding example of how the company has managed to utilise this global platform to extend business operations. IBM has integrated five social networking technologies to form a single application package called Lotus Connections. This collaborative application can be used by any business enterprise to communicate, create and share ideas across physical boundaries on an online platform. The package has five modules – profiles where employees post information about their expertise and interests; communities that are formed by people sharing similar interests; activities that are used to manage group projects; bookmarks that are used to share documents, data, and information; and blogs where users can upload their comments and opinions on specific subject matter (BusinessWeek, 2007). The Web 2.0 technology launched by IBM has provided businesses with a new innovative platform to gain business advantage through simplified communication channel and extended access to knowledge sharing resources. “Using Web 2.0 approaches, companies can cost effectively sell and market wider varieties of products and services to fewer people in niche marketplaces” (IBM, 2009). This enables the companies to differentiate their products and increase market value. The efficient use of this technology will enable businesses to strengthen relationship with customers and associates, provide a collaboration tool for team members widely dispersed across the globe, enable managers to respond to market changes and trends, and improve access to knowledge sharing resources. The effective and successful integration of this tool within the business environment requires open communication channels within the organization that promotes a uniform flow of information. Moreover, the individuals engaged in the operation must have an in-depth understanding of the work specifications, operational procedures and intricacies of the task at hand. It is often felt that managers do not fully comprehend the ways in which this type of technology can be used to gain market advantage and increase company revenues. The managers must be provided a detailed background knowledge and information on how the system works and the ways in which it can be integrated to provide a successful platform for leveraging company products and services. IBM believes strongly that social networks can provide businesses with extended reach and utility in terms of assisting enterprises in adapting to rapidly changing business environment through adequate knowledge management applications, information sharing platform and enhanced communication tools. With organizations shifting a global operational environment it is increasingly important to drive growth through innovation and for this an organization has to depend on people. People or organizational workforce can implement innovative practices provided the company provides them with the necessary information and knowledge resources that can be strengthened through increased collaboration. Social networks can hence play an effective role in driving business growth and development as is evident in the practices of a multinational organization like IBM. Future Trends The past few decades have witnessed a radical shift in the way individuals and business establishments communicate and interact with their customers or associates. The growth of open communication channels has promoted the emergence and development of healthy communities or group practices that have made a visible impact on business growth strategies. The future of social networks and its successful application in business growth is largely dependent on effective management practices and strategies that promote knowledge sharing practices. The significance and increasing reliance of organizations on knowledge management practices is largely accountable to the increasing globalisation of the economies that warrants business enterprises to stay updated on market trends and changes in the industry dynamics that has a direct impact on profitability and growth. Hence, the use of social networks for spreading information and updated statistics on the market movements can be extremely useful in deciding managerial strategies and designing effective business growth models. The communication channels and tools can be further used to promote healthy relationships in the business community that work for social welfare and consumer interests. This requires integration of collaborative tools and technologies to create awareness among the business communities on safe and ethical practices that take into consideration various aspects of the environment in which they operate. This includes social obligation, environmental safeguards and healthy economic growth across various cultures and geographic locations. References: 1. Cerado. 2009. Social networking for businesses and associations. http://www.cerado.com/download/Cerado-Haystack-Executive-Briefing-Social-Networking-for-Businesses-and-Associations.pdf 2. IBM. 2008. Bluehouse. http://www-03.ibm.com/press/us/en/attachment/25100.wss?fileId=ATTACH_FILE2&fileName=IBM%20Opens%20Online%20Collaboration%20and%20Social%20Networking%20Service.pdf 3. BusinessWeek. 2007. IBM’s social networking push. http://www.businessweek.com/technology/content/jan2007/tc20070122_532199.htm?chan=top+news_top+news+index_businessweek+exclusives 4. IBM. 2007. Getting into social software. http://www-01.ibm.com/software/lotus/news/social_software.html 5. Global Human Capital Journal. 2008. IBM drives enterprise adoption of social networks with new enterprise adaptability practice. http://globalhumancapital.org/?p=230 6. Carey, Robin Frey. 2007. IBM and employee centred social media. 7. IBM GBS. 2008. The changing face of communication. IBM Global Business Services. 8. IBM. 2009. IBM. http://www.ibm.com/us/en/ 9. Zonneveld, Annemieke. 2007. Social networking analysis: Insight into collaboration in the workplace. 10. IBM. 2009. The business value of Web 2.0 technology. ftp://ftp.software.ibm.com/software/lotus/pub/lotusweb/web20/10709800_Web_2.0_brochure.pdf Read More