Still in The HBR List: Breakthrough Ideas for 2007, an article on the buiness value of social networks, by Christopher Meyer
Networks lend themselves to at least five basic tasks. They can scan the horizon, as the Global Business Network does, for events and patterns with implications for corporate strategy. They can help to solve problems: InnoCentive does this by posing problems to a far-flung population of scientists. A network can innovate for its own benefit. Members of the Polycom User Group, for example, seek new ideas for using Polycom’s conferencing products by interacting with other users and by sharing best practices. Networks can be used to exert influence: It was only when researchers experiencing errors with the Pentium microprocessor banded together that Intel took the issue seriously. And a network can efficiently allocate resources. The staffing company Aquent uses its substantial network to match marketing and communications professionals with projects that need them.Then the author explains the five steps in designing a valuable network:
- 1-Define the work
- 2- Identify the talent
- 3- Engineer the exchange
- 4- Design the experience
- 5- Assemble the technology
The founders of Facebook, a network to enable students to make and manage their social contacts, learned this lesson in the summer of 2006, when they moved to allow nonstudents access to the network in order to create the possibility of greater ad revenues. Core members considered this an invitation to stalkers and staged a revolt.Why is it that the strongest advocates of a networked economy fail to see the importance of communities, which they wrongly equate to social networks?

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