Cumulus Partners

9. March 2010 03:13

B2B networks bring efficiency to business operations

9. March 2010 03:13 by mike barlow | 0 Comments

Kevin Costello, the president of Ariba, has an interesting column in, "More Useful Than a Social Network," in which he reminds us that B2B networks have been around for years, and that many of the Fortune 100 already use them for reducing the inevitable friction created by routine business transactions. That friction, BTW, has a huge cost, which Costello pegs at $650 billion annually in lost productivity.

I mention Costello's column because it argues agains the grain of the common complaint I hear from business executives about social meda, which is that it has yet to prove its business value. B2B networks have more than proven their worth, so the idea of questioning the value of a network approach to business process optimization seems a tad outdated. At any rate, it's good to remember that networks come in many sizes, shapes and flavors -- so don't rule out the notion of leveraging social networking to achieve tangible business objectives.

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