 |
|
|
|
|
By July 2007, the online social networking utility Facebook boasted 34 million active users worldwide, and the average member spent 17 minutes per day there. Welcome to Web 2.0 - an online world of social networks, collaborative intellectual pursuits and the "wisdom of crowds." Are you ready?
Sean Wise, venture capital expert for CBC's Dragons' Den and author of Wise Words: Lessons in Entrepreneurship & Venture Capital, says, "Web 1.0 was really just an 'electronification' of standard business practices. Indigo has a bookstore where people come in, browse and buy books; in Web 1.0, they have a bookstore online. Web 2.0 is a manifestation of rethinking the way business is done."
Rob McEwen, CEO of Toronto-based Goldcorp Inc., unwittingly helped found Web 2.0 when he implemented a strategy formerly considered unthinkable in the secretive mining sector. In 2000, he made the company's Red Lake mine data available online, and offered $575,000 in prize money to whoever could tell him where the "next six million ounces of gold" could be found. More than 1,400 geologists, scientists and engineers from 50 countries responded.
"Nine billion dollars in market cap later," says Mr. Wise, "they've found gold at 80 per cent of the sites submitted for the challenge. An astounding eight million ounces of gold have been found - worth well over $3 billion. But Goldcorp is no longer the exception; collaboration is becoming the norm. Procter and Gamble and Eli Lilly have opened their research and development to retired scientists, professors and chemists around the world. The cost of the solution in a Web 2.0 world is the cost of the prize, which is much less expensive than old fashioned R&D."
The shift to Web 2.0 and the proliferation of social networks such as Facebook and YouTube has been fuelled by a demographic cohort referred to as "Millennials" - people born after 1980. "This demographic is much larger than that of the baby boomers, and they don't operate the same way. They're active and have a very low tolerance for spin," says Mr. Wise.
Phillip Djwa, CEO of Agentic Communications in Vancouver, says, "There are now 2.7 million Canadians on Facebook. Companies should be aware that their employees are forming Facebook networks now. In Ontario, a grocery store company recently fired an employee for comments made online - it's a reminder that employers need to be engaged in the interplay if they aren't already."
While individuals may want to think about the information available to current and potential employers, there are even greater challenges and opportunities facing organizations. "TELUS has a Facebook network for employees and one for people who just like TELUS. There are some very different approaches to managing your brand developing."
With almost one in 10 Canadians on Facebook, says Mr. Djwa, it is cheaper and faster to connect with Facebook than to buy a billboard in downtown Toronto. "People are choosing their service providers because of recommendations from their friends more than ever before, and that is only going to increase."
Organizations also need to be prepared for almost instantaneous consumer action. "We've already seen very focused campaigns - this is a tool that can be quickly manipulated by knowledgeable lobbying groups. An organization can find itself on the receiving end of a negative campaign very quickly. We haven't yet seen that affect a large company's stock price, but we will."
Feeling left behind? Strategy experts recommend these steps to get on track.
Sean Wise:
Think about which of your core business processes can be influenced in a new technological setting, including R&D, product development, focus group testing and employee attraction and retention.
Review all internal and external communications, with a view to 'mining' information from front-line employees as well as customers.
Phillip Djwa:
Join Facebook, import your contacts, find out who you know who is already on, and begin the process of understanding the capabilities Facebook provides.
Search for your company name to find out what's being said and what groups are being formed around your brand.
Try forming your own group. If you have company e-mail, you can create a private company group.
Return to main page »
Find ideas to inspire your digital life.
How to connect to hotspots