Online social networking: The productivity paradox

The Web 2.0 revolution is transforming the very fabric of business and society today. But does banning wikis, blogs and sites such as Facebook at work boost productivity, or damage engagement, networks and creativity? Matthew Fraser and Soumitra Dutta discuss.

The loudly trumpeted Web 2.0 business revolution has been frustrated by a powerful paradox. While advocates claim that Web 2.0 platforms such as wikis boost productivity by harnessing collective intelligence and fostering innovation, the hard reality is that many corporate managers fear that these same tools will actually undermine productivity at the office.

How can we reconcile this productivity paradox?

It's important to grasp the basic dynamics of Web 2.0 platforms. Wikis, blogs and online social networks are essentially horizontal and open. This explains why they are frequently regarded as threatening inside corporate hierarchies, whose architecture is vertical and closed.