Networks in Business
http://www.forbes.com/sites/karlmoore/2011/09/15/from-social-networks-to-collaboration-networks-the-next-evolution-of-social-media-for-business/
Social networks have altered how companies interact and communicate with customers, but they are also fundamentally changing how some companies operate. Many companies are establishing collaboration networks to better facilitate problem solving by connecting experts together. The referenced article explores case studies of businesses that have successfully utilized internal and external networks to profit and solve difficult problems.
A network is the foundation of all collaboration because it contains all possible colleagues that one may work with. If an individual has more connections, there is a greater likelihood that collaboration will occur, but the solution isn’t simply having more social people around the office. There are too many obstacles preventing valuable connections from being formed. For instance, global companies station employees all over the world, which decreases the number of strong connections that can be made without the assistance of a professional network. The intention of these collaboration networks is to allow employees to create and maintain relationships with people that they would not have otherwise met. The effectiveness of an online network in improving collaboration is evident through the application of network theory to the corporate structure.
In large corporations, there are often several internal networks, which are strongly connected within the network, but virtually isolated from other internal networks due to departmental, geographical, and hierarchical barriers. With few connections outside, these networks struggle to solve problems that fall outside of their area of expertise. Even if an isolated network can create one strong connection with an outside network, it yields tremendous benefits due to the strong triadic closure property. This single connection would yield weak connections to most of the other network, if the other isolated network contains mostly strong connections. Therefore to have a well connected company, it is not necessary to have every employee connected to all other employees. It is only necessary that there be a singular connection to all other departments. One of main categories of use for IBM’s collaboration network is aimed at creating these interdepartmental connections. This is essential because current business issues often require an interdisciplinary approach. A well connected company facilitates collaboration and allows development to occur at the pace required by modern business.
Collaboration networks which currently provide a competitive advantage will soon become standard business practice. A company will not survive if it cannot efficiently connect their experts together to solve issues. The application of network theory shows that an online collaboration networks will assist in the development of several strong and weak connections that span across departments and countries.