Now Reading: Rise of the networked enterprise: Web 2.0 finds its payday – McKinsey Quarterly

This is an analysis of a survey of 3,249 executives by McKinsey that declares:

A new class of company is emerging—one that uses collaborative Web 2.0 technologies intensively to connect the internal efforts of employees and to extend the organization’s reach to customers, partners, and suppliers.

Looking a little more closely, though, shows that just 3% of the organizations surveyed are classified as “fully networked,” which includes internal and externally facing web 2.0 use. 79% are in the “developing” category, and report less benefit.

One interesting correlation found is that companies who report “market leadership” in their industry have a negative association with being externally networked, and a positive one with being internally networked. Companies that report market share gains are associated with being externally networked, with the conclusion that:

Market share gains reported by respondents were significantly correlated with fully networked and externally networked organizations. This, we believe, is statistically significant evidence that technology-enabled collaboration with external stakeholders helps organizations gain market share from the competition.

An unanswered question that I have is whether the collaboration comes about because of the technology or a collaborative communication approach results in the technology being deployed. As @vincegolla reminds me, “it’s a communication strategy, not a social media strategy.” In any event, good to see that this is a tool that helps those who want reap the gains of being networked with customers, business partners, (patients!), reap the benefits. Especially since, as today’s Photo Friday shows, these are our next employees and leaders.

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