Strategic Corporate Investment in Social Media – Leveraging LinkedIn

LinkedIn raised $22.7 million and their new investors include enterprise systems company SAP and publisher McGraw-Hill.

Strategic reasons? (just guessing)

An enterprise system company like SAP can port LinkedIn’s personal profile data, networks and network communications within the enterprise system. This automates the user experience so they may continue to work on LinkedIn, and have SAP capture this work. That’s only the first step; SAP and other enterprise systems will likely find ways to port bookmarking applications like Delicious and micro-blogging applications like Twitter or Yammer. They would use feed-based aggregation to port these data into their systems until they start looking like “Enterprise Facebook or Friendfeed“.

A publishing company like McGrawHill could leverage LinkedIn profile information to provide context to their articles in their magazines like Business Week. For example, LinkedIn could provide a “opt-in” on user profiles that allows publishers like Business Week to link quoted personage to their LinkedIn profile. Example: Pat Kitano says “blah blah”… LinkedIn would become the online Who’s Who, as well as a Who knows Who.

About Pat Kitano

Patrick Kitano works with brands in developing hyperlocal engagement solutions and is administrator of the Breaking News Network, a national hyperlocal network devoted to community service. He is the author of The Local Network on Street Fight, and is reachable via Twitter @pkitano and email pkitano@gmail.com.

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