Social media strengthen companies

Disseminate knowledge internally and increase the rate of innovation. Companies can benefit significantly by using social media – they only need to get started. This is the opinion of Logica consultants Albert Bengtson and Paul Joosten.

“Social media will be companies’ new fuel for innovation and success. A paradigm shift is in progress”
-Albert Bengtsson, Logica

Simply because he is based at his Logica's office in Nacka, outside Stockholm, does not mean that Albert Bengtson has his closest contacts among his colleagues in the corridor or in his unit. He makes extensive use of social networks in his work. This means that he is able to locate expertise and maintain contact with like-minded people among Logica's 40,000 employees, regardless of where they are located in the world. "My geographic location shall not determine who I speak to. That is an old-fashioned approach," says Albert Bengtson, who is one of Logica's social media evangelists.

For example, employees can communicate with each other using Logica's public network, logicalive.com, which is also accessible to customers and partners, or in Logica's internal mini-blog system, similar to Twitter. In just a few years, social media have spread like a wild fire - to a high degree in private life, and now they are making a strong impact on business life. "They will become companies' new fuel for innovation and success. A paradigm shift is in progress," he says.

Is that true? Isn't social media in companies some type of hype?  

This question was put to Paul Joosten, Program Manager Knowledge sharing of Logica's ECM community, in Maastricht, the Netherlands. "No", he says. "Social media are here to stay. What we are seeing, in our time of globalisation, is that you need to have continuous contact with individuals, regardless of where they are located. This is also only one of the strengths of these networks."

At Logica, work is in progress to initiate and utilise social media in the company's operations. There is a pioneering spirit surrounding this and the search is on to find the best format and procedures. Thousands of employees have joined. Many are writing blogs. Networks are being created for new customer projects, for example. "People are opening up their networks to each other and sharing knowledge and ideas. Speaking with each other propels matters forward," says Paul Joosten.

But, isn't there a risk that social media could be a distraction from actual work? For example, Facebook, which is forbidden at many companies.

Albert Bengtson shakes his head: "I often receive this question, when I am giving lectures. It involves separating your private life and your work life. The tools with which we work and which we offer our customers have a clearly-defined focus on job-related operations. In addition, if you use personal networks, like Facebook, it can be beneficial to your work in certain situations. Naturally, it is a good idea if the company has a clear policy."

Albert Bengtson believes that discussions about social media often generate these types of questions with the risk of missing the essential message, which is unfortunate. "Do you want employees who work 40 hours or do you want committed individuals who believe in their work", says Albert Bengtson, rhetorically.

What are the benefits of social media?

1. Sharing knowledge

One of the major strengths of social media is that employees are exposed to limitless sharing of information and establish contacts with each other. This is in direct contrast with a traditional organisation, where employees are supposed to sit quietly in front of their computers and do their jobs and network at meetings arranged by the employer. In traditional corporate cultures, a large portion of the information is controlled by company management.

Albert Bengtson believes that corporate control has already been diminished by the Internet and will diminish further with social media. "Today, we are accustomed to having easy access to information. The key is knowing how the information should be interpreted and the creative manner in which it should be used. This is the foundation for innovation," says Albert Bengtson. "In this sea of information, it can be difficult finding the relevant information. This is where the networks play a key role. "If someone I trust recommends that I read an article, I will read the article. This will save me searching for information in unknown places."  

2. Solving problems

Another opportunity of social media is using networks for creative purposes. If you need to solve a problem and cannot find a solution, a question can be sent to your network to see if anyone has had a similar experience or has any suggestions or tips. Or, you can share your experience in your network or your blog. "I am currently working on a business involving an unusual amount of Web 2.0 components in Microsoft SharePoint technology. Many are interested. I received requests from colleagues in the Netherlands, the UK and Germany, who are involved with similar projects."

3. Assisting in change

Social networks can also be used to assist in change efforts, for example, organisational changes. They often require a significant amount of information. "The only successful changes I have seen involved an extreme amount of dialogue," says Albert Bengtson. The social networks raise concerns and issues. It will be easier for management to see what the problems are and address rumours.

4. Recruiting

It is expensive to recruit qualified personnel. A question about personnel in a relevant network may often lead to finding candidates without costs. If these individuals write blogs or are in any way active, it is possible to obtain an impression of them on the Internet prior to an interview.

Albert Bengtson sees the development as a natural part of "Web 2.0," which represents web services and business models on the Internet with a high degree of interactivity and opportunity for cooperation. "For younger people, the strength in social media is obvious. Most have already learnt to use the internet privately. They are digital natives and for them it is natural being a 2.0 employee. They will be the driving force to make the company into a 2.0 business," says Albert Bengtson.