When a company turns to a private social network, it does so with an eye on the ROI.

While there are free tools like Ning for basic social networking needs, solutions for complex organizations are definitely not free. A recent article called “Social Networking in the Enterprise: What’s the ROI?” states that the implementation price tag for one company was $250,000. Are ESN (Enterprise Social Networks) worth it? That’s a question on the mind of anyone interested in determining how a private social network can provide a solid ROI. For John Parkinson of TransUnion,  the savings were big. More than two-thirds of his employees were already on Facebook or MySpace. So he used an ESN that harnessed the familiarity of public social network platforms. Parkinson soon discovered his company’s problems solvers and authoritative sources. His estimated savings in the first year – $5 million – compared to $50,000 to implement.

The SSN Take: Find hidden gems through in-house social networks.

David Thimme, March 11, 2010

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