Nick Carr may be down on IT, but he’s hot on social networking software. The author of IT Doesn’t Matter has sparred frequently with Harvard colleague Andrew McAfee on the value of Enterprise 2.0, but makes the following admission in one of his latest posts:

“It seems increasingly clear to me that the social networking phenomenon will, in some yet-to-be-determined form, invade corporations.”

Nick says that social networking applications will occupy a very different place within enterprises than traditional enterprise software, however. Social networking applications will be part of the informal organization (collaborative and non-hierarchical), versus the way software has traditionally been applied within the formal organization (very hierarchical, procedure oriented, highly political).

Here’s the challenge: The informal organization has the greatest impact on companies, since this “governs the real flow of information and influence in a company, that defines who’s in the loop and who’s not, what’s important and what can safely be ignored.”
However, the catch is “most corporate IT systems, unfortunately, are geared to the needs of the formal organization and ignore the informal one. Designed through elaborate, top-down processes, these so-called enterprise applications usually end up as rigid, cumbersome systems that are disconnected from the everyday jobs of workers.”

Ultimately, the future of corporate computing may actually lie with online services such as MySpace, Facebook, Bebo, Nick Carr predicts. “It’s easy to make fun of these sites. Used mainly by kids and students, they often resemble the junkyards of popular culture – crude, silly, and disposable. But don’t be fooled by the garish surface. Social networks are popular – and powerful - because they are constructed in response to, and through, the actions and conversations of their members. In stark contrast to corporate IT systems, social networks shape themselves to their users rather than forcing the users to adapt to preset specifications.”

The proof is already here. FastFoward blogging colleague Bill Ives recently surfaced the role Facebook is playing as a corporate intranet.

As Bill reports, Serena, a software company, is replacing its existing intranet with Facebook as a front end linked to a low-cost content management system behind the firewall:

The 800-employee firm “is going through a major transition as they move from more traditional enterprise applications to web 2.0 mashups. The leadership wanted all employees to be better connected so they could be on the same level of understanding, excitement, and commitment to this transition. They also thought that using a web 2.0 tool, like Facebook, represented the best way to take the whole company into this new space.”

Using Facebook, Serena enjoys far more collaboration between internal groups, as well as with external constituencies, than they would with a far more expensive and maintenance-heavy traditional intranet.

Nick Carr observes that social computing services “do what corporate systems so often fail to do: they make the codification and sharing of valuable information easy.” This is certainly the case with Serena. However, ever the skeptic, Nick also cautions that such services face hurdles in enterprises — “matters of data security need to be worked out, as do protocols for sharing sensitive information within and between organizations.”

He also predicts headwinds of resistance from many within management ranks. “Just imagine what will happen when the informal organization suddenly becomes as visible as the formal one. I suspect that some people at the top of the org chart will be less than pleased.”

Back in my days as director and editor of AMS, the management association, the mantra for greater productivity and peak performance was “invert the pyramid, flatten the hierarchy.” Perhaps social computing will make that a reality.