Enterprise 2.

0: The Impact
of Social Networking
Biscocho*de Leon* Estanislao*Gumabon*Lope*Punzalan*Rojas
 Definition of Terms
• Social Media / Social Networking Sites
– refers to the group of Internet-based
applications that build on the ideological
and technological foundations of Web 2.0,
a term commonly associated with web
applications, that facilitate interactive
information sharing, interoperability, user-
centered design, and collaboration on the
worldwide web

I. Setting the Stage

I. Setting the Stage
 Definition of Terms
• Enterprise 2.0
– is the use of social media in an organizational or
business-type setting
– Andrew McAfee: the use of emergent social
software platforms within companies, or between
companies and their partners or customers
– aims to help employees , customers and suppliers
to collaborate and share information

I. Setting the Stage

 Definition of Terms
• Enterprise 1.0
– refers to the traditional enterprise software used
in large corporations
– made up of customized applications that aid
employees in performing business functions such
as order processing, procurement, production
scheduling, customer information management,
and accounting

I. Setting the Stage

 Capabilities of Enterprise 2.0
1.Expertise Location Capability
– Enterprise 2.0 help employees find the right person or
group for the appropriate task
2.Corporate blogging
– effective tools to communicate leadership messages,
online journals and knowledge-management forums
3. Corporate Wikis
– user-friendly environment for subject-matter experts to
document their interpretation on any subject

I. Setting the Stage

 Capabilities of Enterprise 2.0
4.Internal community platforms
– provide an environment for corporate employees to
create a virtual forum to share their opinions, knowledge
and subject-matter expertise about topics of interest
5.Idea generation
– involve a structured business methodology for collecting
and incubating innovative ideas that could mature with
community participation

I. Setting the Stage

 Fast Facts
• Facebook:
– for everyone; has over 500 million users
• Buzznet:
– for Music and Pop Culture; has 10 million
members
• CafeMom:
– for Mothers; has over 1.2 million members
• Classmates.com:
– for school, college, work and military; has over
50 million members
• Flixster:
– a movies site; has over 63 million members

I. Setting the Stage

 Problem Statement

Will business effects of using Enterprise

2.0 influence the decision of the
company to adopt the system?

I. Setting the Stage

II. Literature Review/ SWOT Analysis
 • Facilitates faster information flow through online
media
• Popular and dominant means of communication for
its simplicity and its ability to connect wide
networks of people
• Wider audience reach – within and outside the
organization
• Good venue for collaboration between internal
groups, suppliers and customers - medium for
contribution and solicitation of ideas, techniques,
knowledge and experiences in the form of forums,
blogs, video and podcasting, among many others.

II. Literature Review/ SWOT Analysis

• Over-reliance on the technology can mean
disastrous consequences should system failure
occur.
• Flooding of advertisements and spamming
• Spread of information is hard/difficult to
control
• Information is publicized w/o boundaries
• Information quality from an online forum may
not be reliable

II. Literature Review/ SWOT Analysis

 • Social networking sites have started to
redefine the behavior of almost anybody
who has access to the internet - users begin
to favor information coming from social
media.
• Companies can capitalize on the popularity
of social networking to their advantage -
improve communication and collaboration
amongst employees, customers and
suppliers in order to boost productivity
• Huge marketing opportunity – good venue
for advertising and promotion
• Will have positive business impact if used
hand in hand with other ERP systems

II. Literature Review/ SWOT Analysis

• Security issues such as piracy and leakage
of trade secrets and other confidential
information
• Tendency of people to misuse the new
technology
• Risk of receiving malicious/fraudulent data.
• Corporate reputations can also be at risk -
negative news about a company gets
circulated fast
• Since negative feedback from particular
customers are made public, it can also be
used as black propaganda by competitors

II. Literature Review/ SWOT Analysis

“To deny enterprise workers the benefit of
social networking is equivalent to, ten
years ago, forcing them to communicate
with colleagues by telegraph” - Matthew Cowan
• The benefits of implementing Enterprise 2.0
overweigh the risks
• Enterprise 2.0 is bringing significant gains to
companies of all sizes, and in all industries

III. Group Stand

 Companies that adopt Enterprise 2.0 and
Testimonials from Users (International Setting)
• www.IHGMerlin.com – used by employees of InterContinental
Hotels Group.

332 people
online

Upcoming
events

IV. Examples
 Companies that adopt Enterprise 2.0 and
Testimonials from Users (International Setting)

• www.IHGMerlin.com – used by employees of InterContinental

Hotels Group.
– “With IHGMerlin.com, employees are up to date with new
information on the business as important announcements, upcoming
events, commendations, etc are posted on the site. Enterprise
software and streamlined reports are also made readily available
through this channel. We also get to see online employees around the
globe and interact with them instantly”

IV. Examples
 Companies that adopt Enterprise 2.0 and
Testimonials from Users (International Setting)
• Sametime Connect – used by employees of Rohm and Haas
Company.

Sales Team

Human
Resources

IV. Examples
 Companies that adopt Enterprise 2.0 and
Testimonials from Users (International Setting)

• Sametime Connect– used by employees of Rohm and Haas

Company.
– “less telephone charges by using chat; able to conduct quick team
meetings between colleagues in various locations through virtual
team meetings through chat; reduced the need for face-to-face
meetings since presentations can also be conducted through
Sametime Connect”

IV. Examples
 Companies that adopt Enterprise 2.0 and
Testimonials from Users (Philippine Setting)

• Multiply partnered with ABS-CBN Interactive to tap local advertisers and

launch mobile services for Filipino Multiply users.
• ABS-CBN Interactive is the exclusive reseller of advertising on Multiply for
the Philippines.

IV. Examples
 Companies that adopt Enterprise 2.0 and
Testimonials from Users (Philippine Setting)

• The power of social networking was also tested in the Philippines's 2007
general elections when senatorial candidate Francis Escudero created his
own Friendster profile to bolster support from Filipino users.

IV. Examples
• Companies who use and advocate Enterprise 2.0 are
usually companies who rely on the collaboration between
its employees, suppliers and customers for its day-to-day
activities. Enterprise 2.0 is recommended for companies
such as these.
• As seen in the experience of other companies however,
the extensive use of IT can also be a hindrance in meeting
the objectives of a company. There are risks involved with
regards to privacy and security if Enterprise 2.0 is
implemented.

V. Lessons Learned
• There's a massive disconnect between Enterprise 2.0
technologies and traditional enterprise applications and
infrastructures. Both Enterprise 1.0 and 2.0 has its own
advantages and disadvantages, but when adopted
together by companies, each system can offset each
other’s limitations. Refer to Figure 2 of Diagrams for
comparison of both Enterprise 1.0 and 2.0.
• SNS is beneficial to the company but precautionary
measures must be in place in case the system fails. SNS is
prone to downtimes, failures and attacks.

V. Lessons Learned
• The choice of SNS site to use is crucial for a company that
wants to enhance its competitive advantage. Issues of SNS
sites may affect the company positively or negatively.
• Due to security risks associated with the use of SNS (social
network service) and the internet, strict filters and internal
controls must be in place, which also means further costs
for the company

V. Lessons Learned
Thank you for listening!