The impact of Social Networking 2.0 on organisations

The purpose of this paper is to increase the understanding of what electronic social networking encompasses. The article also aims to educate IT, business decision-makers and knowledge workers about the various applications benefits and risks associated with social networking. After a literature review of the available resources (academic literature, journal articles, white papers, popular media and books) the benefits and perceived risks associated with electronic social networking on organisations are investigated. An individuals’ success in society depends on the shape and size of his social network and his ability to network and form connections with other social groups. Organisations who can harness this innate human ability to manage knowledge will be able to lower transactions costs and become more profitable. This article increases the understanding of: what electronic social networking encompasses and how it can be utilised for business purposes