Far from the days of the old school tie and unusual handshakes, the last decade has seen an unparalleled rise in business networking. Many of the traditional networks, such as the IoD, Chambers of Commerce and Rotary have had to rise to the challenges posed by a host of groups, both international and local.
While the majority of British businesses still do little proactive networking, an increasing minority do so with vigour. Opportunities abound, ranging from breakfast meetings, through lunch and into dinner. There have even been twenty-four hour charity ‘networkathons’, so you don’t even have to go home for want of an event to go to!
There’s a new kid on the block now, however, and he’s making a big impact very quickly. Over the last ten years there has been a slow but steady growth in the number of networking organisations appearing on the internet. In the UK, Ecademy, formed in 1998, has grown to become the most recognised online network, while internationally, networks such as Linked-In from America and the German network Open BC (now Xing) have become well-known brands.
In the early days of Ecademy, it was seen as an organisation for ‘tecchies’, with few people not interested in the growth of the internet participating. Now, however, it boasts over 100,000 members worldwide, with several thousand people online at any one time.
All of a sudden, networks like Ecademy have started to appear on a frequent basis. Every day I hear about new websites for businesses, whether they be general b2b forums, industry focused or niching in other areas.
Why this sudden growth in networking online? I put it down to two main reasons.
First of all, the internet is suddenly much more accessible. With the advent of broadband, people are much happier spending time surfing websites, posting profiles and messages and blogging. Without the long download times that frustrated us when we were using telephone modems, we can do so much more online.
In addition, we can access the internet more of the time. Previously we were tied to our offices. But with more people working from home, owning a home computer as well as their office one, or working from a laptop, more of us have internet access 24/7. Don’t believe me? Post a message on a site like Ecademy or send an email after midnight and see the number of responses you get!
With new mobile technology, such as the Blackberry, allowing us to access the internet while we travel, the online world has suddenly become even more open to us.
The other key reason for the growth of online networking is demographic. Many of us have had to learn about the internet, emails, text messaging and other new technology as adults. However an increasing number of people are entering the job market and business community for whom texting, instant messaging and blogging are a way of life. A whole new vocabulary has emerged, which even my computer hasn’t kept up with given the amount of words in this article it has wanted to spell-check!
Julian Woodward, a software architect and developer with a particular interest in this area, outlined this change to me recently. Julian explained how, while older generations are used to moving on from one set of close contacts to another as our lives and careers progress, younger people are used to keeping in touch with a much wider circle.
“Close contacts are kept in the circle through text messages and instant messaging, while second tier contacts are maintained through the use of social networks.”
The ‘MySpace Generation’ is now having a huge influence on the way we do things. The Social Networking phenomenon kick started by Friends Reunited has been taken on with a vengeance by sites such as MySpace, YouTube and, increasingly, Facebook. People now are far more likely to buy, interact, court and market themselves on the web.
What now seems to be happening is an increasingly indistinct border between online networks used for social purposes and those used to promote businesses. Bands are now reaching Number One in the charts purely through building up support online, while an increasing number of business people post profiles and blogs on UTube and MySpace to reach a wider client base.
As a result, the term ‘Social Networking’ has become the catch all for the online networking revolution. Increasingly businesses are being compelled to accept the need to embrace social networks, whether to market themselves externally, or to aid knowledge management internally.
As more of the MySpace Generation come to work, the higher the expectation is that they will be able to connect with others online to get the information they want. Jeff Schick, the VP of social computing software at IBM recognises the importance of this, “the thing that we see is an expectation of these sorts of tools in the business context when these young folks join the workforce.”
For the business who wants to embrace social networking for the first time, it can be a tough decision where to start. There are a vast range of sites, many of whom offer the same, or similar, functionality.
For smaller businesses, who want to use the internet to market more widely, then the first step is to decide what you want to achieve. Like any network, you can usually determine a key benefit to be derived from each of the various opportunities available. These normally fall into one of three areas:
1) Profile Building
2) Brain Building
3) Referral Building
Profile-building networks, such as Ecademy and BT Tradespace, allow you to build a wide range of contacts by posting your own details, searching other people’s, blogging, joining clubs and exchanging messages. Many people will build large personal networks, the trick is to be able to manage these so that it is not just a numbers game.
Brain-building networks focus on an exchange of information and support. Often themed around one area of business, such as Web Wednesdays and Wellbeing Network, they bring together professionals to exchange ideas and help to solve challenges.
Referral-building networks, such as the US’s Direct Matches and the new UK network, Word of Mouse, are more concerned with business building. Direct Matches is very much the home of network marketing businesses looking for referrals for their distribution teams, while Word of Mouse is based around small local groups getting to know each other, rather than global network-building.
Networks such as Linked-In take the referral building approach one step further by inviting members to post up details of who they know to enable them to find connections to the people they want to talk to through their networks. Based around the theory of six degrees of separation, members are able to tell how many steps they are from any person on the site, and to whom they need to speak to get the introduction.
Naturally there is a degree of overlap between the networks and the benefits on offer from each aren’t confined to the areas above. Finding the overriding theme, however, helps the business owner to identify the right network for them.
The big mistake for any businessman to avoid is turning their back on traditional face-to-face networks in favour of social networks. It may be easier to spend a few minutes online each day rather than taking the time to meet people, but business and referrals will always be built on developing trust and understanding. That takes time, and it takes getting to know each other.
Social networks play a tremendous role in initiating and managing relationships; but the development of relationships will still take place at one-to-one meetings, whether in each other’s offices, at networking events or in meeting places such as the IoD Hubs.
As with existing public face to face networks, the corporate presence on social networks appears to be low. There are natural barriers to entry from the corporate perspective; concerns about the time their staff spend unproductively on the net and how they may misrepresent the corporate image are understandable.
Jeff Schick feels that concerns about wasted time are unfounded. “In the clients we’ve worked with to date as well as what we’ve seen within IBM, I think that we see the exact opposite.
“While a person might be interrupted because they are a recognised expert in a certain particular area, when there is just in time information required by another individual in the company, the efficiency and productivity involved in building that network and the fabric of interaction provides a more efficient and productive model for people to do their work.
“The organisation holistically is improved by that level of interaction, by matching people who know to people who need to know.”
IBM’s focus, as with many corporates embracing social networks, is less on marketing themselves to prospective clients but on improving communications internally, between people working on the same challenges oceans apart and involving staff, partners and customers in their development process.
The use of such networks not only makes processes more efficient but breaks down organisational silos, impacting on the service received by customers.
With the internet becoming an increasing part of our everyday life, the social networking revolution is set to gather momentum. As more people work from home, either for an employer or for themselves; take on consultancy roles for other businesses and as customers talk to each other with more ease it is vital for all businesses to embrace and make the most of the new technology.
It is technology that allows small businesses to compete with large, local businesses to trade overseas and which is breaking down traditional barriers to entry rapidly.
Traditional networks are not fading away. They will be with us for a long time to come. They are now being supplemented by another tool, one that will help them to build even bigger networks, exchange more information and win more business.
Links:
BT Tradespace
Direct Matches
Ecademy
Facebook
Linked-In
MySpace
Word of Mouse
Web Wednesdays
Wellbeing Network
Xing
YouTube
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Andy Lopata is one of the UK’s leading business networking strategists. He is the co-author of two books on the subject, including the Amazon UK bestseller ‘…and Death Came Third! The Definitive Guide to Networking and Speaking in Public’. Andy offers a full consultancy service and works with companies to help them realise the full potential from their networking.
