Social networking "white elephant" warning

Businesses should be wary of web 2.0 hype, says Gartner

By Tim Ferguson, 13 December 2007 16:44

NEWS

Social networking could turn out to be a costly "white elephant" for businesses that rush to invest in the technology.

Many companies are thinking about whether they can take advantage of social networking technology but analysts at Gartner are warning corporates against getting caught up in all the Facebook-led web 2.0 hype.

The list from A to Z

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A is for ADSL
B is for BT
C is for Cable & Wireless
D is for Dial-up
E is for Education
F is for Fibre
G is for Goonhilly
H is for HSDPA
I is for In-flight
J is for Janet
K is for Kingston
L is for Landlines
M is for Murdoch
N is for Next generation
O is for Ofcom
P is for Power lines
Q is for Quad-play
R is for Remote working
S is for Satellite phones
T is for Trains
U is for Unbundling
V is for VoIP
W is for WiMax
X is for Xbox
Y is for YouTube
Z is for Zombies

Issues that businesses need to consider before investing developing internal social networking tools include protecting personal intellectual property and people's preference for using existing non-professional external networks such as Bebo, Facebook and MySpace.

With Facebook saying it will licence its developer platform to other organisations it could soon be even easier for companies to develop their own social networks.

But the Gartner report says the hype around social networking doesn't necessarily mean it's a mature enough technology to make it a critical business requirement.

There is also little evidence that social networking will be as beneficial for businesses as other web-based communications tech such as instant messaging and VoIP.

Ultimately, Gartner suggests, the value of social networking tech comes from content rather than the product itself.

The analyst recommends IT departments should think very carefully before committing to expensive "social networking white elephants".

Further bringing business and social networking together, business network LinkedIn this month said it will allow third parties to develop apps for its site and allow them to take LinkedIn content to other sites.

Comments

There are 2 comments. Join the discussion

  1. 1. anonymous

    There are a handful of initiatives that remove the barriers to entry into this space and minimize the risk of introducing a solution network by making deployment of the application fairly seamless and free. Applications like Ning, and kickapps (which are more of a destination site play) and a new entrant which enables you to introduce a social network directly from an existing website - in2community.

  2. 2. Charles

    The Gartner report is actually more positive than negative about social networking, and its purpose is to point some pitfalls to avoid, for organizations that have chosen to engage in enterprise social computing.

    Some excerpts below:

    Unlike IM and VoIP, social networking is a far more intricate form of collaboration...No consistent pattern has emerged on how Facebook-style social networking can support work outcomes…

    Corporate social networking solutions are generally good products and offer some security advantages over Internet-based social networking sites. However, IT departments would do well in realizing that ultimately the value of social networking resides in content and not code....

    * IT departments should focus their primary attention not on products but on the human factors that affect the uptake of social networking technology.

    * IT departments shouldn’t overplay the security risks of Internet-based social networking sites.

    * IT departments should consider making social networking investment decisions on a component-by-component basis rather than as a suite.

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