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Many organisations nowadays are constantly seeking ways to improve their competitive edge and remain profitable. Organisations use new technology as a strategic tool which help create new ways of satisfying customer needs and working practices. Developments in internet technologies have led to the growing dependence on web-based technologies and more recently, collaboration software platforms. In spite of the vast amount of literature which describes the benefits organisations may reap through the use of these technologies, there is also skepticism regarding the adoption of these tools. This paper takes a critical look at the adoption of collaboration tools, focusing on social media, in the enterprise especially looking at the reason for skepticism in adopting these tools. Through surveys carried out amongst users of social media and case studies, the research looks at the value adding capabilities of social media in business, the challenges and opportunities, and adoption issues.