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The emergence of social networking and other “Web 2.0” technologies is dramatically changing the way people and organizations collaborate. Don’t expect these new methods of interaction to go away anytime soon. Research shows that the trend toward using social networking in the enterprise is likely to continue.

Although these applications have clear benefits, they can also present challenges for CIOs.

“The biggest concern, obviously, is security,” says Alex Jefferies, research associate at Aberdeen Group. He cites recent findings that social media applications have become the primary source of virus infections for the enterprise, surpassing e-mail. As a result, security should be a key concern for any CIO considering social media adoption, Jefferies says.

Another concern is setting proper usage guidelines for collaboration tools such as internal social networking sites. Jefferies says organizations are gaining more understanding of how to educate employees about how and when they should use social networking solutions, rather than letting the situation become a “free-for-all where you run the risk of overuse. It would be counterproductive if employees spent a lot of time updating their profiles, messaging their colleagues or posting for the sake of posting.”

While inappropriate use of social networking might be less of a concern than security issues, Jefferies says it reinforces the fact that companies need to have internal processes in place to maximize the return on investment for social networking technology implementations.

Even with these concerns, the potential value of social networking is compelling for many organizations. There’s a growing awareness on the part of companies about the possible benefits of social media, Jefferies says.

Of the 363 social networking end users Aberdeen surveyed for a recent report on the business implications of social media, 60 percent indicated that the business use of social media tools is either a

“top-2 priority” or “high priority” for 2009. Furthermore, 80 percent of respondents think Web 2.0 is a valuable avenue for their organization, and 78 percent think it will be a lasting channel for years to come.

Perhaps most telling about how businesses view social media, Jefferies says, is the fact that nearly two-thirds (64%) of the survey respondents indicated they plan to increase their budget for social media for the rest of 2008 and into 2009.

“Companies are open to any tool that can be used to facilitate knowledge sharing and collaboration within the organization,” Jefferies says. “These internal collaboration tools, such as team-based project wikis or ‘idea’ discussion forums, are serving to break down the barriers that exist for a dispersed, and sometimes global, workforce.”

In addition to the collaborative elements inherent in social media, companies are improving the business by allowing employees to present and rank different ideas and topics, Jefferies says. “This allows for a greater exchange of information between upper management and the workforce, as well as the chance to identify influencers and visionaries within the enterprise.”

From an external standpoint, social media applications such as blogs, wikis and discussion forums allow organizations to provide another touch point for customer interaction, Jefferies says.

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