What's interesting is the discussion on whether the proliferation of online social networks will replace traditional exclusive social networks. The Economist does a great job illustrating the value of old-style networks that emphasize trust relationships that accelerate a wide variety of transaction requests, especially complex ones. Two examples cited in China and France are:
Old-style networks can also facilitate serious wrong doing inside companies operating around hidden networks. The article Software that spots hidden networks, in the Economist reports that "informal cliques often communicate in ways designed to execute a fraud or to cover it up". Such rogue employees are motivated by such behavior, in effect, to protect their jobs and line their own pockets. The now infamous case of Bernie Madoff,
sentenced to 150 years in prison this week offers further evidence on the dangers of old-style networking. Madoff's talents lay in his extrodinary ability to read people and exploit their social networks courting investors at rotary clubs through trusted close friends and family referrals. Madoff's list of 14,000 victims ranged from the rich and famous to Ian Thiermann, the oldest investor, who at 90, was forced to get a job after losing his $700,000 in savings.One benefit of online networks is they support a more open and efficient competitive global business environment compared to closed networks. Online social networks support communities that share information in a highly collaborative and creative manner. As Thomas Friedman pointed out in The World is Flat, whom we engage with is based on a person's access to online communities and collaboration tools. Where they are located becomes less important once shared goals, values and interests are realized.
So what is the optimal solution for enhancing one's social network? This is more an individual's choice about how they feel about their preference for networking. Gen Y will continue in a multi-channel universe using gadgets. Gen X will cross over between new and old communication channels while the Boomers may choose to keep their feet firmly planted in traditional face to face networks.
What is clear is that the complexity involved in solving problems requires today requires increased attention by participating in online and offline channels. Missing a valuable piece of information may end up being very costly. Take a one size fits all approach to networking no longer works. A balanced outlook is likely the best option where you test what works best when solving different tasks of varying complexity.



