Forget about the space age. It feels more like the MySpace age. And by that I’m simply stating what has probably become apparent to everyone…social networking is in. It’s everywhere, and if you don’t believe me you just might want to ask the nine year old next to you. It’s true, websites like club penguin, Habbo Hotel, and Imbee.com are already introducing social networking to tykes (Find out more at: <<http://www.msnbc.msn.com/id/17266131/site/newsweek/>>). That’s right tykes!
This is serious. How serious? Well, let me just say that about 10 to 20 states are considering imposing strict regulations on social networking sites. True, the legislation is intended to protect children from sexual predators, but the point that I’m trying to make is that social networking is getting a lot of attention (<<http://www.informationweek.com/story/showArticle.jhtml?articleID=197801465>>). And it seems like it’s only going to get worse; or better, however you want to look at it. Mark Zuckerburg, the creator of Facebook, certainly isn’t complaining. I wouldn’t either if someone told me that my website had the potential make 100 million dollars in revenue this year alone (<<http://www.msnbc.msn.com/id/17285000/>>). It seems everyone is getting on board. Even Sony is in the works of unveiling its own online network (<<http://www.msnbc.msn.com/id/17504219/>>).
But even with all that’s going on, the following news came as a shock. Social networks within the financial community? I know, it sounds unnatural. However, Microsoft’s latest brainchild aims at creating a series of communities focused around work roles; the latest of which is the as of yet unnamed forum for financial professionals. It’s true that there are already similar products offered by IBM and sites like CFO, but Microsoft is promising a more dynamic product (<<http://www.informationweek.com/story/showArticle.jhtml?articleID=198000284>>). My question is what does that look like? I’m sure that there is a well intentioned idea in there somewhere. But I can’t help but wonder what the ramifications are of having financial professionals talk to one another. That is, looking at it from a corporate perspective? I wonder if it’s going to take off, and it’ll be interesting to see the way these forums are used and what they are used for.
This is serious. How serious? Well, let me just say that about 10 to 20 states are considering imposing strict regulations on social networking sites. True, the legislation is intended to protect children from sexual predators, but the point that I’m trying to make is that social networking is getting a lot of attention (<<http://www.informationweek.com/story/showArticle.jhtml?articleID=197801465>>). And it seems like it’s only going to get worse; or better, however you want to look at it. Mark Zuckerburg, the creator of Facebook, certainly isn’t complaining. I wouldn’t either if someone told me that my website had the potential make 100 million dollars in revenue this year alone (<<http://www.msnbc.msn.com/id/17285000/>>). It seems everyone is getting on board. Even Sony is in the works of unveiling its own online network (<<http://www.msnbc.msn.com/id/17504219/>>).
But even with all that’s going on, the following news came as a shock. Social networks within the financial community? I know, it sounds unnatural. However, Microsoft’s latest brainchild aims at creating a series of communities focused around work roles; the latest of which is the as of yet unnamed forum for financial professionals. It’s true that there are already similar products offered by IBM and sites like CFO, but Microsoft is promising a more dynamic product (<<http://www.informationweek.com/story/showArticle.jhtml?articleID=198000284>>). My question is what does that look like? I’m sure that there is a well intentioned idea in there somewhere. But I can’t help but wonder what the ramifications are of having financial professionals talk to one another. That is, looking at it from a corporate perspective? I wonder if it’s going to take off, and it’ll be interesting to see the way these forums are used and what they are used for.
3 comments:
Hey Peter, yes, social networking sites already exist for professionals, such as http://www.linkedin.com, but one for Finance professionals might be a jump start.
In fact, I doubt it can be used as effective as it intends to be. I mean why would professionals share their best practices on a public network? Maybe those companies already have their own networks with their affiliates to share the best practices and experience.
Also, what about security issues or confidentiality? Moreover, are professionals from Goldman Sachs willing to share their best practices with JP Morgan or Morgan Stanley? If these professionals are competing against one another, will this networking site eventually become a platform to spread rumors?
Afterall, I think it might become some kind of platform to meet professionals to talk about daily work rather than sharing best practices if it is free and public. However, it might work out too if there are certain policies and security protections against the materials posted, or have a fee charged for the service. It really depends on Microsoft's strategy, and how Financial Corporations react to this.
Internet = Interactive. It really depends on how smart we can use the internet effectively and securely.
Hearing about this move in social networks reminds me of the capital one case we saw in class. There already are established social networks for professionals (representing an already segmented social networking market), but Microsoft further identified a niche segment that is supposedly unfilled and has a very high profitability gradient. As we saw with the capital one case, competitors (e.g. Microsoft) eventually imitate the established strategy by further segmenting the market, which erode at total profitability.
With all the risks that you and peony posed, I'm starting to doubt if such a network will attain the critical mass needed to sustain it, and even if it does the segment might be so small that the strong profitability gradient might not add up to much. Furthermore, even before it does reach that threshold I wonder how much Microsoft is willing to gamble in marketing to get it going.
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