Because OS offers a method to analyse IS in
different levels, we believe that it is a useful method
for investigating SM in a business environment. As
SM contains some factors that can be found in the
semiotic ladder, we use it to clarify some important
issues related to SM adoption in different levels.
3.2 Analysis based on the
‘Organisational Onion’ Model
Here we attempt to identify the factors that influence
the adoption of SM in a business environment from
the three layers in modelling organisation as
information systems: informal, formal and technical.
Informal Layer: Through SM, people’s activities
shifted from a static environment of writing
documents via computer applications to a more
dynamic environment: living life online, searching
and sharing information, watching video on
YouTube, buying and selling products through
eBay, and building relationships using Facebook or
LinkedIn.
Regardless of whether it is the evolution of SM
that has changed user behaviour or the evolution of
user behaviour that has caused the evolution of SM,
customers and employees have come to embrace the
culture of SM tools. Employees, as part of this
society, have seen the benefits of using SM in their
personal lives to communicate, cooperate,
collaborate and connect with others. These same
employees have begun to adopt these familiar SM
into their work life (Cook, 2008). As the younger
generation moves into the workforce they will
increasingly expect to use the same participatory
tools.
However, managers have some concerns because
they believe by introducing SM into the workplace,
productivity and profits will be lessened, as it will
take the place of the “water cooler” and only
encourage gossip and waste valuable employee time
(Cook, 2008). Consequently, organisational culture
can influence the adoption of SM (Newman and
Thomas, 2009) because technology itself cannot
change organisations’ culture. In Web 2.0,
information and knowledge are built and shared
through social interaction. Therefore
, for SM to be
adopted, communication, cooperation, collaboration
and connections
with SM must be a norm, not
expectations, as they are a key factor in Web 2.0
technologies usage.
If the use of SM is adopted as a norm in the
informal layer, it provides the basis for it to be
introduced into the formal layer as more employees
adopt the technologies and demand to use them in
the workplace. Subsequently, organisations may see
the benefits of interactions supported by SM in the
business process.
Formal Layer: According to a McKinsey Global
Survey (McKinsey&Company, 2008), the rate of
organisation that were experimenting with SM
between 2007 and 2008 has increased;
approximately 60 percent of participants were
satisfied with Web 2.0 initiatives and 87 percent of
organisations were using them in customer
relationship. An impact of SM can be highlighted in
organisations across sectors. It can be used for
improving internal work process, recruitment,
product design and quality, and customer
relationship (Ala-Mutka et al., 2009).
Because of the success of SM use in an informal
environment, early adapters are using SM internally
and externally for business purposes. Dresdner
Kleinwort Wasserstein (DrKW), an investment
bank, is an example of a company applying SM to
internal business processes (Klobas and Beesley,
2006). At DrKW, the user-centred team started to
use wikis to help with interaction among their 6,000
geographically dispersed employees. DrKW
“adopted the wiki as a communication tool, a
collective discussion tool, as a repository for
documents and information and as a project
management tool” (Klobas and Beesley, 2006, p
105).
For external outreach, some organisations are
building online SNS websites for business
innovation, engaging customers (Newman and
Thomas, 2009) and outsourcing intelligence. This
approach was proposed by Procter and Gamble who
developed a program called “Connect-and-
Develop”. This program aims at connecting external
sources like universities, government labs, web-
based talent markets, and suppliers with the P&G
innovation team in an effort to create new products
which meet worldwide consumer performance and
costs needs (Huston and Sakkab, 2006). Through
this program, P&G produces over 35 percent of their
innovations which saves billions of dollars in
revenue (Huston and Sakkab, 2006).
However, there are some concerns regarding the
published information such as type of information,
information quality, information credibility, and
reliability. As the organisation needs authentic,
reliable information to make their decisions, a
framework for information evaluating process has
been developed to control this issue (Huston and
Sakkab, 2006). Another concern is that many
customers use SM to assess products and services
delivered by companies Therefore, organisations
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