Social networking has clearly reached a tipping point. Sites like MySpace and Facebook boast hundreds of millions of members. Barack Obama's presidential victory demonstrated that platforms like YouTube and Twitter could transform electoral politics. Yet in corporations where such tools have been expected to bring profound transformations, there has been strong resistance to change.

Many corporate executives either dismiss social networking as a time-wasting distraction or regard it as a risk management problem. Much of their fear has focused on potential risks like security breaches and data privacy.

Web 2.0 evangelists, on the other hand, argue that social software can be used to boost productivity. They say it can facilitate an open-ended corporate culture that values transparency, collaboration and innovation. Most important, it can be an effective way to build a customer-centric organization that not only communicates authentically but also listens to customers and learns from that interaction.

In the current stormy economy, as companies look for new ways to market their products and engage their customers, chief executive officers are finally looking more and more at how social networking tools can extend their brands, create corporate cultures based on listening and learning, and establish their own leadership profiles.

Nonetheless, big brands, generally speaking, haven't successfully tapped the potential of social media; they tend to regard Web 2.0 platforms as just another way to push out short-term marketing campaigns. They fail to grasp that the new media require new ways of doing business. Old ways need to be tossed out.

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