Hoffman backs Enterprise 2.0

Reid Hoffman, founder of Linkedin predicts the future will see more developments in Enterprise 2.0, web applications for business and not consumers, according to an article published in the Business Section of the Sunday Times on 30 November 2008. The article gives an interesting insight into the man and his driving passion for web-based business community websites.

Enterprise 2.0 moved and developed Web 2.0 tools and technologies into the workplace. It enables business communities of suppliers, partners, employees and customers to harness the potential of social websites for like-minded people to share information. These Web-based customer communities, focused around a brand or a set of products and services, come together and interact online. It takes the original concept of the Web to feed content and instead of a one-way dialogue, allows communities to converse, comment and share information using forums, blogs and social networking in a business environment.

UKOCN at http://www.ukocn.com/ fits this model perfectly and brings together the tried and trusted methods of social networks with the more demanding needs of a professional group within a business community (i.e. the Oracle Community). It is flexible enough to adjust and evolve its services as the markets and business environment change and adapt accordingly.

Whilst the global economic downturn is beginning to bite in Silicon Valley, Hoffman sees this as an opportunity. In the area of recruitment he has adjusted some of the Linkedin services to help jobless executives find temporary contract and consulting work. Linkedin expanded into an advice service and recruitment companies now buy subscriptions to enable them to go hunting for job candidates.

Linkedin is profitable and is valued at $1 Billion. In October it had its best month when 1.8m new members joined – it has 2m members in Britain alone. It currently has 31m members and a third of these ‘check-in’ to the site every month. It derives most of its revenues from corporate subscriptions and individuals paying to search data. On-line advertising is slowing but the business is fortunate that only 25% of its revenue is from this source. “Their simple aim is to recruit one in four of the world’s population: anyone aged 22 to 65 with an eye on their career.” To help achieve this aim, Linkedin has just launched a French local language version.

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I.T. Response to the Pre-Budget Report

Are high-tech companies going to lead the way to Economic Recovery? Intellect, the leading trade association which represent its members in the UK technology industry welcomed Chancellor Alistair Darling’s Pre-Budget Report but warned more had to be done and would like to see greater emphasis on innovation and technology. Especially, as this sector is seen as the future creator of high value jobs.

John Higgins, director general of Intellect welcomed the announcement that the government’s Technology Strategy Board would look at how to improve its support for innovation in time for the next budget in 2009 but urged the government to “act decisively”.

Peter Mandelson, the Business Secretary outlined the need for diversified growth in the economy, fed by amongst others, the innovative high-tech sector. Other countries (eg USA) are already planning to act boldly to maintain their high-tech sectors. It is to be hoped that the Government’s £1 billion new Government Small Business Finance Scheme which will lend directly to small business, has an appreciable and positive effect.

Darling has urged retailers to pass on the VAT reduction immediately it comes into effect on Monday 1 December but IT advisory firm the Butler Group, feared this will challenge businesses and in particular their business management systems, financial management and enterprise resource planning (ERP) applications. This could be especially difficult in the run up to Christmas when the changes will have a massive effect on Point of Sale Systems, Stock Control, Back Office Systems and goods already on the shelves.

To see the Intellect Press Release in full please click here.

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