THE 2010 NEW SYMBIOSIS OF

PROFESSIONAL NETWORKS

STUDY RESULTS

DON BULMER, SAP

VANESSA DIMAURO, LEADER NETWORKS

PETER AUDITORE, SAP

About This Study

Focus of the study:

Users of online professional networks

Examination of current use of online professional networks

Online preferences

Changes and predicted changes in use of online professional networks

Sample composition:

The survey “The New Symbiosis of Professional Networks” was administered online to 114 participants

Participants were notified through blogs and direct email invitation by study sponsors

Close to two in ten (18%) respondents identified themselves as the CEO of their organization, with close to half

identifying themselves as a “Director” (20%) or “Manager” (24%)

Company size ranged from less than 100 to over 50,000 full-time employees

Age was well distributed with the greatest proportion in the 36-45 range

10 countries were represented, with 76% of respondents living in the US

All respondents were either the decision makers or influenced the decision maker

2

4 Key Research Findings

• Business professionals are changing how they collaborate as a result of online professional communities and peer networks.

• Social networks have evolved to become knowledge and communication networks.

• Access to thought leadership content is now the #1 reason why professionals surveyed visit networks and communities.

• Professionals are collaborating with each other visa vie the thought leadership content they generate, curate or share. No longer is collaboration an experience between a limited number of people.

Thought Leadership is the new currency of online professional collaboration.

• While nearly all professionals surveyed (97%) use LinkedIn, the use of smaller (niche) professional network are activity being used to find peers and content specifically related to the work that they do (by role, industry, geography, etc.).

• Professionals are finding the right mix of large open networks and private communities to support their learning, networking and decision-making activities.

The collaboration recipe = 1 to 2 large networks + 1 to 2 niche communities

• Professional communities are being used more frequently to inform business strategy and supporting new products and services (much more than in 2009).

• 80% of respondents are able to accelerate decision process and information/strategy development by participating in communities.

Social Business is starting to happen within professional communities of practice

• Endorsement (via like, read, share, retweet) is at the center of collaboration in social media communities.

•“The Crescendo Effect” in social media environments has great impact on the buying decision. High quality content yields transparency and credibility.

• Professional collaboration is changing from a small professional exchange into an interaction with content in public ways. The consequence of sharing content online = influence

Professionals share and consume quality content within their professional networks as a way of exerting influence

3/7/2011 3

Online Professional Network Usage

4

5%

20%

33%

97%

13%

51%

40%

92%

0% 20% 40% 60% 80% 100% 120%

Plaxo

Facebook

Twitter

LinkedIn

2009 2010

5

The “Big Three” Networks Remain Constant From 2009 To 2010, But Facebook Is Losing Significant Ground

Question: What are the top three online professional networks that you use? (Open Response)

– Essentially all respondents indicated that they use LinkedIn

– One third of respondents also mentioned Facebook, while just over two in ten mentioned Twitter

– Hundreds of other networks were mentioned, many by only one or two respondents

Top Professional Networks

n= 113

6

Professionals Have Chosen Their Online Professional Networks

Question: How many ONLINE professional networks do youparticipate in (e.g. Industry-specific communities, Linked-In,professional discussion forums, online customer support groups,etc.)?

Note: Those who indicated that they do not participate in any online professional networks were excluded from the study

- The age of professional networking experimentation is starting to end, as professionals have stabilized on the

number of networks they participate in over the past two years.

- 3-5 is the range of online professional networks that decision makers participate in. This is up by five percent

over 2009 study (55% of respondents in 2010 they participate in 3-5 networks)

- 68% of professionals surveyed report that they are satisfied with the communities that they have chosen to join.

n= 114

Question: Generally, how satisfied are you with your experience using online

professional networks?

7

Mobile Devices To Access Professional Networks are On The Rise: 59% of Respondents Use them To Access Professional Networks

– Essentially all respondents access social networks on a PC or Mac and about 6 in 10 respondents in

2010 access a professional network using a mobile device

– 2010 showed a significant increase in the use of mobile devices to access online networks (15%)

increase. 59% of respondents access online networks via mobile devices (vs. 44% in 2009).

n= 114

8

And Apple Is The Preferred Mobile Device

– Apple is dominate as the mobile device of choice that people use to access online networks (67%)

followed RIM/Blackberry (37%) and Android devices (15%)

n= 67

Quick Facts about Mobile

• At the time the study was

conducted, the iPad was in the

market only 6 months

• In 2009 there were 180 iPhone apps

for social networking, in 2010 there

were 736 social networking apps for

iPhone/iPad

9

The Majority Of Professionals Use Online Networks Daily To Inform Their Work

Question: On average, how often do you visit the networks or communities you belong to?Question: How has this changed over the last three years?

– 80% of respondents access social networks one or more times a day with change in use increasing for

88% of respondents over the last three years

– More than four in ten visit professional networks many times each day

n= 110

10

Many Professionals Use A Combination Of “Big Three” Networks Plus Smaller, Selective Online Communities

– Almost all respondents participate in large public networks or communities

– Two thirds participate in open social media networks such as Twitter or Yelp

– About half participate in midsize or specialized communities

n= 114

11

And They Prefer To Engage Deeply With Peers In A Few Networks

– Most respondents were split evenly between preferring to deeply experience a limited number of

networks and joining many networks but only participating heavily in a few

n= 101

12

Professionals Value Online Communities To Connect and Compete

– Networks have evolved to become trusted environments for relationship management and decision

support

– Most respondents find value in establishing or increasing their professional network and in increasing

competitive brand monitoring and positioning

– Significantly more professionals value professional networks for monitoring competitive brands over

their own company brand

n= 114

Top Three Benefits Of Online Community Participation

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Thought Leadership Content Is Central In The Use of Professional Networks As Business Decision-Making Platforms

- Gaining access to thought leadership is the top reason that respondents visit online networks and

communities (keeping track of peers ranked #1 in purpose for 2009)

- 80% of respondents are able to accelerate decision process and information/strategy development by

participating in communities via access to thought leadership

- People collaborate for need not for speed as reduce travel costs is the least popular reason in 2009 &

2010

n= 98

14

Search Engines Are Used More Frequently Than Company Web Sites to Inform Business Decision-making

Top Three Online Steps Typically Taken To Inform Your Decision-making

– The overwhelming majority of respondents (87%) conduct research via search engines to inform

decision-making

– The value of a company website as a destination for supporting/informing a decision has dropped by

half from 2009 but still ranks #2 (43%)

– Online professional networks and communities are now equal in importance to the corporate website to

support decision-making

n= 98

Community and website share relative rankings

15

Sources Of Influence Are More Concentrated Online: Professionals Are Consuming More And Creating Less Content

– About eight in ten respondents listen to or read information on their professional networks, and this is

the top activity for two thirds of respondents

n= 98

16

High Levels Of Trust Exists For Information Received via Professional Networks

Question: How much do you rely on professional networks for information/advice/insight to support business decisions?Question: How has this changed over the last three years?

– Three quarters of respondents rely either lightly or heavily on professional networks to support business

decisions. This is consistent with 2009.

– Reliance has increased for essentially all respondents over the past three years, and increased

significantly for about four in ten respondents

Reliance On Professional Networks Change in Reliance On Professional Networks

n= 95

2009

2010

17

People And Content Found Within Online Communities Are Widely Used To Identify Business Trends And In Support Of A Professional Decision

When Faced With A Professional Decision, Survey Respondents Are Likely To…

– Eight in ten respondents use online social networks to identify trends and key topics for

further exploration

– Just over a quarter use them to help reach a professional decision

n= 95

18Question: Which statements best capture your experiences collaborating with others in an online environment? (select all that

apply)

Online Collaboration Is Considered A Meaningful Professional Activity

– Respondents clearly see the value in online collaboration

– They most appreciate the ability to reach out and connect with others and to gain fresh insight, ideas,

and actionable information

Statements Percent Agree

I am able to reach and connect with other professionals and experts due to the network 73%

Collaborating with others provides me with fresh insight, ideas, and actionable information 71%

My collaboration with peers is strengthened by online connections and made more efficient 65%

My connections online have shared information with me that inform the work I do in meaningful ways

60%

Collaborating with others saves me time and money 49%

I find people are more willing to collaborate online and share information than offline 47%

I only collaborate or connect online with people I already know 19%

Online connections are best for sales and marketing but not for collaboration 6%

Connecting to others or collaborating does not interest me 3%

19

Most Companies Have Internal Collaboration Tools But Only About Half Are Reported To Be Effective

– About seven in ten respondents indicate that their company has collaboration tools in place, half of

those indicate that they are used effectively

– Fifteen percent of respondents indicate that, while their company does not sponsor social media tools,

they are used informally to collaborate

n= 91

20

Company Internets Of The Future Will Strive To Connect People (Forums) With The Work They Do (Content)

Question: In what ways do you see your company’s use of internal social media tools increasing over the next 1-2 years? (select the top three)

– In a global workforce, context is more important than ever. Consequently, the intranet of the future will

be focused on context of information.

– More than four in ten respondents expect that in one to two years their company will be using social

media for more content sharing and company-wide communications and for forums and discussions

n= 95

21

While Professionals Value Collaboration, Their Companies Seek To Invest In Social Media Marketing Programs

Question: In what ways do you see your company’s external use of social media changing over the next 1-2 years? (select up to 3)

– More than half of respondents foresee more marketing programs and content distribution in the next

one to two years

– Very few foresee no change in social media usage

n= 95

22

Satisfaction with Company’s Internal Technologies for Collaboration for Business Purposes Is Increasing

Question: How satisfied are you with your company’s internal technologies for collaboration for businesspurposes?

– Just over one in ten respondents are extremely satisfied with their company’s internal technologies for

collaboration for business purposes

– Overall satisfaction with their company’s internal technologies for collaboration has increased over the

past year

14% 15%

30%20%

47%53%

10% 12%

0%

20%

40%

60%

80%

100%

2009 2010

Extremely Satisfied

Somewhat Satisfied

Somewhat Dissatisfied

Extremely Dissatisfied

Internal Collaboration Tool Satisfaction

n= 91

Summary

Professionals are now using their social media peer groups and online communities as reliable in-puts into their decision-making 2009-10 was about exploring and experimenting with online relationships whereas

2010-11 is about capitalizing on them.

Thought leadership is the professional currency of the future Professionals and organizations are now being defined by the quality of the content

they exchange, curate and create. However, few content creation channels have stood the test of time as there is less

content being created as professionals have learned to curate only the best

New rules for collaboration in social media environments emerge Endorsement is at the center of collaboration in social media communities The endorsement (via read, share, like, retweet) drives influence that enables better decision

making

And, anytime anywhere access to our professional peer groups is a growing necessity Mobile access to online communities and professional networks is the new norm Therefore, relationships are more fluid and on-demand as professional now have the

online networking skills to reach the experts they need, when they need them.

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Demographics

24

25

Gender and Age

Question: What is your gender?

Question: What is your current age?

– Slightly more than half of the respondents were male

– A wide range of age groups were represented, with about two thirds of respondents falling between the ages of 36 to 55

n= 92

26

Professional Role

Question: Which of the following categories best describes your professional role in your organization?

– Close to two in ten respondents reported that they are the CEO in their organization

n= 114

27

Primary Business

Question: Please indicate your organization’s primary type of business

– One third of respondents described their organization’s primary type of business as “Business Services”

– Another quarter reported that their primary type of business was computer products

n= 114

28

Number of Employees

Question: Approximately how many full time employees does your organization have worldwide including all divisions and

locations?

– About half of respondents indicated that they work for an organization with less than 100 full time employees

– At the other extreme, more than a quarter work for organizations with 10,000 or more employees

n= 114

29

Responsibility

Question: Which of the following best describes your responsibilities in making decisions on products and services in your

company or organizational unit?

– Close to half of respondents reported that they are the final decision-maker

– More than four in ten reported that they participate in the decision-making process, while one in ten do research in support of the decision-maker

Note: Those who indicated that they had no decision-making responsibility

were excluded from the study

n= 114

30

Size of Budget Managed and Influenced

Question: What is the average size of the budget that you 1) Manage and 2) Influence?

– A third of respondents influence budgets of $1 Million or more, while just over one in ten directly manage budgets of that size

n= 105