What businesses need to do in the changed environment
Melvin Yuan
Mon, May 28, 2007
The Business Times
S'pore scene: Influential bloggers, like Mr Brown, are challenging the conventional norms of institutional influence
WHEN the magazine Business 2.0 was conceived almost a decade ago, it prophesied a revolution in the ways of business. And we are beginning to see a manifestation of that foretelling - with Web 2.0 technologies forming the backbone of what we know as the social web, creating a radically different landscape in which businesses must learn to operate and succeed.
Up to this point in time, social computing has been predominantly on the agendas of marketing and communications professionals because of its immediate relevance to the mandate for stakeholder and customer influence.
But business leaders would be wise to watch for signs of change as the effects of the social web continue to extend.
Right where we are in Singapore, there is a groundswell of activity surrounding new web technologies that enable us to connect, communicate and collaborate like never before. Influential bloggers, epitomised by local Blogosphere celebrities like Mr Brown, are challenging the conventional norms of institutional influence.
Today, 'Citizenship Journalism' is no longer thought of as a phenomenon, but very much a way of life; and as it is in most parts of the world, business and political issues that would not have otherwise seen the light of day, are emerging online and making their way into the mainstream media.
Faster networks
Bloggers and active Netizens that once lacked clear directions in their online activity are finding their niche - creating and participating in conversations on business and marketing, workplace issues and current affairs.
And 'collectives' like Ping.sg, SingaporeAngle.com and Tomorrow.sg have emerged to build communities around blogs of similar interests.
In sharp contrast to formal societies and associations, like-minded individuals are forming networks faster and more spontaneously than before. Examples include the Gahmen Bloggers - a community of civil servants who meet to discuss the use of blogs within their agencies; and the Second Life Singapore community - an example of a virtual community with members that extend their interactions to real-life gatherings.
Two months ago, The Digital Movement (www.thedigitalmovement.org) - a non-profit group that seeks to champion the use of emerging technologies - organised Nexus 2007 (www.nexus2007.com), bringing together for the first time in Singapore, over 600 technology enthusiasts in a full day conference. Other organisations such as Singapore Entrepreneurs (www.sgentrepreneurs.com) and Entrepreneurs 27 (E27) (www.entrepreneur27.org/sg/) have been founded to help encourage technopreneurism at the grassroots level.
And the government, through the Media Development Authority's Interactive Digital Media (IDM) Office, is investing heavily in nurturing talents, funding research and development, and encouraging entrepreneurship within the IDM sector. Results have been encouraging with the emergence of promising start-ups in recent weeks.
Experimental activities
The activity in the local Blogosphere, online forums and social networks has certainly drawn some interest from companies that are enthusiastic about engaging the newly aggregated customer segments.
Online marketing budgets have increased significantly, and companies like LG and Nokia are trying new PR tactics by seeding influential local bloggers with phones and hosting online contests on blogs.
While interesting, and somewhat encouraging, all these activities have been more cautious and experimental in nature than bold and ambitious.
Businesses still appear to be watching warily from the sidelines, unsure of the new marketplace and of possible consequences.
Some are oblivious; others, waiting for the right time, fearful of making the first move or tripping up; and some corporate sceptics still need to be convinced that all this is not just a passing fad.
And so the perennial questions to business leaders remain: What does social computing have to do with my business? What should I be wary of? How can I further my business goals through it?
To answer these questions, businesses must start by understanding the fundamental changes that have taken place. Most significantly, the dynamics of influence has changed tremendously.
Time magazine's December 2006 cover named 'You' as Person of the Year. The point is clear - the social web has empowered individuals beyond what could have been imagined just five years ago. For good or bad, seemingly ordinary individuals with the right information, and connected through the Internet to thousands of online communities, can exalt a corporation or bring it to its knees.
We also live in an age of unprecedented transparency. The world has clearly been moving towards greater social public disclosure. Financial standards, food and drug labelling and manufacturing data, amongst many other aspects, have to abide by stricter standards of social disclosure than before.
Top priorities
In what seems like natural progression, corporations today are forcibly more transparent than before; with citizen journalists probing at every outlet, and with the power to draw public attention - for good or bad - vested on every employee from CEO to janitor.
Similarly, outside corporate walls (and payrolls), there are customer evangelists who speak more for a company than the designated spokespersons or individuals from the corporate communications team itself. The point is, there are more faces to a company today than there were three years ago; and there are more public inquirers in the form of citizen journalists.
As a result, trust and honesty have become paramount in corporate stewardship, and companies today have to make their highest priorities: integrity and accountability to act in the best interest of every stakeholder. Failing to do so would most certainly subject the organisation to unforgiving scrutiny by a very watchful and empowered public.
These are just some of the many intricate changes that have taken place in the business landscape as a result of social computing. Every company should venture beyond a superficial or skewed perception, and understand these changes on technological, social and psychological levels.
Businesses must also prepare to engage stakeholders and customers in online conversations, be it on blogs or forums.
Preparation is especially crucial because issues and public discourse can evolve at hyper-speed and become increasingly complicated, especially when more voices join in the conversations - both from within and outside the organisation.
And preparation should include helping every representative of the company to understand the nature and agenda of the social web and online communities before they participate in it.
Finally, after taking the effort to understand the social web, and to prepare for engagements with customers and other stakeholders online, few factors should prevent businesses from taking bold and well-planned leaps into the social web where tomorrow's customers, employees, partners and investors exist.
The social web has made today's business landscape an increasingly complex playing field, fraught with danger and potential pitfalls.
But in the same place lie great opportunities for building trusted relationships to an extent never made possible before. And it is imperative that business leaders view the path ahead as a journey to lead and not a walk in the dark.
The writer is a PR consultant and blogger specialising in social media and its impact. He blogs at ThePR2.0Universe.com. He also works at MDA's PR agency and is a member of The Digital Movement.