It's not news. What started as an "underground" fad mostly used by students or teens has (as usual) now gone mainstream - the online social network. Here's how Wikipedia defines "social network."
A social network is a social structure made of nodes (which are generally individuals or organizations) that are tied by one or more specific types of interdependency, such as values, visions, idea, financial exchange, friends, kinship, dislike, conflict, trade, web links, sexual relations, disease transmission (epidemiology), or airline routes.
But in the virtual world, social network services such as MySpace, Facebook, Multiply, and Bebo (to name a few), are not only blazing trails in the mainstream world, but the business world as well. Businesses are realizing the gains of establishing and maintaining an intimate networking relationship with customers, employees, and stakeholders.
Not just the realm of politicians (check out Obama's or Giuliani's) or celebrities anymore either, companies such as Starbucks and Weight Watchers have extensive myspace pages, and even Pfizer is joining the bandwagon by creating their own version of facebook for doctors called Sermo. ( read more in the Financial Times article called Pfizer Takes a Leaf out of Facebook) More and more small business startups are beginning to see the opportunities that come with social networking according to the Houston Chronicle's article "Internet Startups going Social"
Whether it's leaving comments at the bottom of news stories, posting vacation pictures on a photo-sharing site or creating MySpace pages, the Web has gone social. Gone are the days of Web users passively surfing, reading and consuming.
The astronomic success of social-networking sites such as MySpace and Facebook, whose 23-year-old founder recently turned down a $1 billion bid to sell the company to Yahoo, has prompted others with dollar signs in their eyes to chase the trend -- with a twist. Instead of aiming for massive networking sites aimed at pretty much everyone, the latest wave is trying to reach specific audiences.
There is a down side - going overboard with social networks Max Kalehoff talks about "Socialnetworkitis." in his post about the perils of being involved in too many social networks. Love them or hate them, this "fad" is not going away, according to the Wisconsin Technology Networks' The Expanding World of Social Networking:
College students aren't the only ones that think Facebook is "really hot," with Microsoft reportedly in discussions with the company to take a 5 percent minority for an investment of $300 to $500 million, an interest valuing the total company at close to $10 billion , according to MSNBC. Beyond Microsoft, entrepreneurial software developers have jumped on the Facebook phenomenon - 70,000 developers have already signed up with the company to develop site applications , according to The Wall Street Journal.
Another accelerating trend, according to Business Week, is the growth of in-house social networks. Large multi-national corporations are seeking to capture the "wisdom of crowds" and to encourage employees, alumni, retirees, and other stakeholders to interact with one another. Among the companies that are creating these networks are Ning, Visible Path, Mentor Scout, Web Crossing, and Select Minds. SelectMinds is reported to have created "networks for 60 companies, including Lockheed Martin and JPMorgan Chase."
Bottom line is, social networking is here to stay. It pays to look deeper into the different networks and what might work best for you. The next post in this series will be an analysis on the different social networking sites and how to decide what will work best for you and your business.
