This document discusses the evolution of social networks and how enterprises can leverage them. It covers how social networks have grown from academic research to popular consumer platforms. Generational shifts are changing work models and expectations. The benefits of social networks in enterprises include improved productivity, communication, collaboration and knowledge management. However, there are also risks to consider like cultural issues, governance, and information security. The document provides recommendations for enterprises on how to strategically adopt social networks.

1. Deciphering Corporate Social Networks Thursday – 19 June, 2008 Mike Gotta Principal Analyst [email_address] www.burtongroup.com mikeg.typepad.com

2. Deciphering Corporate Social Networks Agenda Understanding The Evolution Of Social Networks Leveraging Social Networks Within The Enterprise Recommendations

3. Evolution Of Social Networks Why social networks? In General Relationships Community (including self-organization and teaming) Information sharing (including backchannels and gossip) Information harvesting Collaboration Influence (including brokering information & connections) Situational awareness Support, mentoring, advice, sense-making Personal value For consumers Lifestyle (peer interaction, fun, education, personal finance, politics, social causes, sports, hobbies or other interests)

4. Evolution Of Social Networks Some history, terminology and market trends History A long timeline of academic research (1850’s-1970’s) Key terms Social network, social networking, social graph Actors (sometimes referred to as nodes or agents) Relations (sometimes referred to as links or ties) Strong, Weak and Latent Ties Degrees of separation “ Social Roles” (connectors, brokers, boundary spanners) Consumer market trends 2003-2009: Facebook, LinkedIn and Myspace 2006 and onward: “lifestreaming”, data portability and interoperability

5. Evolution Of Social Networks A specific destination where connections are often declared and visible; acts as a social hub Social structures that are embedded within a variety of tools (e-mail, buddy lists) Analytical engines that assess and correlate relationship connections Combines all elements into a cohesive set of infrastructure services

6. Enterprise Evolution Of Social Networks

7. Deciphering Corporate Social Networks Agenda Understanding The Evolution Of Social Networks Leveraging Social Networks Within The Enterprise Recommendations

8. The Business Automation Dilemma What’s next?

9. The Business Of Social Transformation People as catalyst

10. Baseline (Background Context) The modern-day world is a complex environment that supports multiple generations with different experiences and expectations related to technology Age brackets according to a report published by The Center on Aging & Work/Workplace Flexibility at Boston College: Generation Y (“Millennials”): Includes those born approximately between 1981 to 1999, (making them 8-27 in 2008) Generation X: Includes those born approximately from 1965 to 1980, (making them 28–43 in 2008) Baby Boomers: Includes those born approximately from 1946-1964, (making them 44-62 in 2008); Traditionalists: Include those born between 1930–1945, (making them 63+ in 2008) The Times They Are A-Changin'

11. Generational shifts are unleashing a variety of social dynamics Strategic Talent Initiatives Boomers Gen X Millenials (Gen Y) Work Tools Career Supervisor Manager Vice President

12. Societal expectations are expanding ideas on value creation Corporate Social Responsibility (CSR) Do Business at Marriott Help Save a Rainforest Lilly Employees from Nearly 50 Nations Participate in Company's First-Ever Global Day of Service Starbucks Increases Commitment to Supporting Coffee Farmers and Communities Anheuser-Busch, National Fatherhood Initiative Launch Online Forum for Parents on MySpace Launch CSR-related Reports: Dow Engages in Dialogue on Future of Water at GWI Conference BD and Direct Relief International Launch Second Volunteer Service Trip to Improve Healthcare in Ghana

13. User-Led Innovation Social interaction creates synergistic conversations Assumption Companies drive innovation by observing users Research Many commercially successful products first developed by users Leveraging co-creation “… users actually develop prototype products and show their value and use of what they really want.” - Eric von Hippel Professor of Management and Innovation at MIT

14. New work models rely increasingly on relationships Web 2.0 And Enterprise 2.0 Participation, Community & Outreach Web 2.0 Enterprise 2.0 Knowledge Management Social Software (Tooling) Productivity Collaboration Content Communication

15. Social networks promise to catalyze participation, community and outreach across such strategic initiatives Gen Y workers are attracted to companies that blend work and lifestyle and also those that are socially active with good reputations internally and externally… Leadership teams are awakening to the idea that new work models and “good citizenship” adds top/bottom-line value to employee, customer, partner and supplier relationships… Innovation is often something that occurs jointly among organizations and their customers, employees, partners and suppliers… Advancements in social software enable people (regardless of generation) to communicate, share information and collaborate in new ways that are often informal, transparent and emergent… Everything Is Intertwined

16. Benefits From Social Networks Differences between consumer and enterprise environments Productivity (business focus, activity-centric) Communication Information sharing Collaboration Knowledge Management Expertise location Community-building Workforce Transformation Connect people across work models and boundaries (organizational and/or generational) Human Capital Management Relationship Onboarding Retiree, alumni and referral networks

17. Beware “Rose-Tinted Glasses” Authenticity Sponsorship and commitment over the long term Business case and metrics Governance program Management practices Workplace / workforce virtualization Cultural factors (e.g., politics, generational tensions) Security, identity, compliance and privacy Technology maturity Existing IT investments Participation models (external and/or internal social networks) Role of consumer social networks Recommendations

18. Where to start History is important, learn from it Be aware of terminology, methods and practices Assume a need for new skills and competencies in social network analysis Monitor, track and analyze consumer market trends New work models will likely emerge outside the firewall The totality of a worker’s computing experience is more greatly influenced by their digital lifestyle vs. their digital work style Implement governance programs Address cultural aspects of social networks; c Consider the impact and influence of management structures Social relationships do not stop at the firewall Don’t over-reach, prioritize solution areas Avoid irrational exuberance, focus on adoption (not deployment); keep an open mind to possible technology solutions Look for synergies with strategic business initiatives such as talent management, corporate social responsibility and user-led innovation Recommendations

19. About Us Burton Group provides in-depth, vendor-independent research and advisory services focused on enterprise IT infrastructure technologies. Known for our principle-based architectural approach and technical depth, each of our six highly-focused research services provide practical insights and direction for enterprise technologists and executives. http://www.burtongroup.com/ http://catalyst.burtongroup.com/ http://ccsblog.burtongroup.com/ http://mikeg.typepad.com/ Deciphering Social Networks