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It struck me today what an uphill battle we’re facing in the new media / web 2.0 / social networking industry. These shiny new communication and engagement tools are an unknown and feared art. What’s more frightening to a business than the phrase “perpetual beta”?

Let’s examine some of the reasons why…

Bandwidth
It’s a moot issue. I’ve heard mutterings of a national bandwidth crisis. What bandwidth crisis? It’s always been sub–standard. The true miracle of South Africa is how we’re managing to innovate on the world stage while operating within the confines of our monopolistic gateway provider.

It’s too open
You can envision the board meeting. Hasty decision needs to get made on a company’s pioneering venture into the brave new world of the web. The cynics raise a concern: what happens when someone posts a complaint or slanderous phase. Why must we have our brands trashed on an open forum?

Whoosh. That’s the sound of understanding as it flies by.

It’s too quick
That same board meeting . The cynics rise, stamping their authoritative fist on the oak–paneled table: now what happens when the “kids” come along, turn the complaint into a video and spread it all over the Internet? Why must we have our brands trashed at speed?

Yes, the speed at which information travels in the digital age is frightening. Yet tantalizing? The minimal costs of communication, combined with increased reach and frequency should be viewed as a competitive weapon — not a threat.

It’s too shallow
I agree. FaceBook and its brethren are shallow, vacuous holes of valueless communication and excessive poking. FaceBook isn’t going to turn your business around. Unless business becomes more about the beer you had with your colleagues last night than the simple concept of buy low sell high…

That’s why the future of this medium is in smaller, more manageable and more focused communities. I’m not talking about a FaceBook group. I’m talking about a niche community, where all the stakeholders in the value chain can use the speed, flexibility and functionality of social networking to collaborate on business issues. That’s where it gets exciting.

Niche business networking. Another topic for another time. Check out www.designmind.co.za for a local example of niche networking in play.

If I think about it, we don’t have all the answers. Social Networking is still in the “wild west” phase of adoption. You might just have to take a risk. But trust me here. Would you rather try and control the tone and intent of 100 sales reps engaging with your customers on an off day – or a technology platform where you can aggregate, measure and respond to conversations as they occur?

Social Networking will always mean mixing the good with the bad. It’s how you handle the bad that counts.




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7 Responses to “Why are South African businesses scared of Social Networking?”

Thank you Andy - I am talking to people about Enterprise social networks - with more and more interest.

But uphill I agree.

(Report abuse)

Walter Pike on May 16th, 2008 at 3:58 pm

Andy - I think part of why business doesn’t understand or embrace social networking is because business itself largely hasn’t sought to be social. Sort of: “Bring your brain to work, leave your personality, soul, emotion and everything else about you that’s human at home.”

Then there’s the question of who owns championing this space? Traditional agencies just haven’t understood the medium. They largely just don’t get it. There are very few traditional agencies who have the skill to understand and engage the medium. Ad agencies for better or for worse largely own the strategic marketing relationship with business, and new media or specialist agencies are an adjunct.

However this will have to change. With advertising inflation and relevance of advertising increasingly becoming an issue, brand owners and marketers are looking for innovating, alternative and more relevant ways of engaging their audience online. Mediums that deliver and are quantifiable.

It’s the beginning of the curve with social networking, but I think savvy business will want to get in on the action. Relevant brands will lead the way.

But once they do what will this mean for the medium?

Interesting article.

And Walter - thanks for posting the link on Twitter.

(Report abuse)

Mandy de Waal on May 16th, 2008 at 4:22 pm

Lovely post, thank you Andy. The caution and cynicism you describe is one reason why I’m excited about working with smaller, more entrepreneurial companies who are less likely to be precious about their brands and more likely to take some measured risks — especially since they don’t have the budgets to merit the time of day from a traditional ad agency.

And one more thanks to Walter for the link!

(Report abuse)

Pam Sykes on May 16th, 2008 at 6:02 pm

@WalterPike. It’s a pleasure Walter. The more we talk, the more we present - the easier it’ll become. I just hope the Web 2.0 “industry” understands that, like any immature, new industry - it’s all about how you treat the first couple of years. The web has always been measurable - it’s most fantastic advantage. I hope we don’t lose that in a mess of “any chatter is good chatter”… :)

(Report abuse)

Andy Hadfield on May 20th, 2008 at 7:53 am

@MandydeWaal. Ah, quantifiable. Nail on head.

It is interesting about how traditional agencies have failed to adapt. It’s not often the “creatives” don’t hop on a new idea. I think that’s changing though. BMW / Aqua Online have done some great work at pushing traditional boundaries. It helps that they have a aspirational brand - but still.

Do you think some needs to own the championing of the space? Perhaps I’m misunderstanding - but the very nature of the “collaborative web” is that it’s owned by the community.

Perhaps THAT’s why we’re battling here. It’s the idea that a community owns your product as opposed to you. Paradigm shift.

I’ve got an interesting post coming up soon on the rules of building communities. Some Guy Kawasaki wisdom. Watch this space.

(Report abuse)

Andy Hadfield on May 20th, 2008 at 8:00 am

@Pam Sykes. Only a pleasure. It is a scary world where tiny companies with minuscule budgets can compete with the behemoths. And win. I just hope it doesn’t affect the “quality” of the space. It’s all very well having everyone and your grandmother collaborating - eeking true business ROI out of that is the slighly more complex next step…

(Report abuse)

Andy Hadfield on May 20th, 2008 at 8:02 am

[…] has gone this route. I do foresee many brands following, although at the moment many brands are fearful to tread down this new path, some brands don’t even have their own websites or […]

(Report abuse)

Tech Leader » Muhammad Karim » Marketing 2.0 on May 21st, 2008 at 12:23 pm

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Andy Hadfield is a digital native (can’t remember life without the Internet) and is fascinated with the impact it is having on our lives and businesses. An entertaining and compelling personality, Andy speaks with authority and insight about the new shape of life, work and play in the digital world.

Importantly though, he’s not a “techie”! Andy understands the hard realities of business, and delivers pragmatic, realistic lessons from the future, which every business will find valuable. His intensive front-line experience underpins these viewpoints.

He has played in every corner of the digital industry, launching his first startup at age 19 - getALife (gAL) was a social network before the word was even invented. The site was a political and community mouthpiece for South African students between 1997 and 2005 and was covered on every major media platform, including Time Magazine. It also has the dubious honour of being sued by Robert Mugabe.

He then spent the next 7 years honing his strategic skills across a range of industries, including finance, professional services, construction and media. With The Virtual Works, this included building the digital platform that underpins “The Deloitte Way”, a real time strategic assessment, staff engagement and reward programme. He was also involved in creating Africa’s first monetised niche social network (www.designmind.co.za) which drives communication and collaboration across the construction industry.

At First National Bank, Andy helped develop a team to manage digital strategy across the consumer banking segment. This included projects such as corporate crowdsourcing, the bank's first official FaceBook presence, a major overhaul of www.fnb.co.za and a world-class “Amazon-style” online sales system for financial products.

Since 2010, he founded and operates www.OneBigWidget.com, a boutique strategic consultancy and stable of pioneering digital projects. You can find him on www.andyhadfield.com or tweeting his love for cricket, wine and the new style of business on www.twitter.com/andyhadfield.
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