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Plenty of people still use newsgroups, email and bulletin boards.
Just FYI. All the new tools get all the buzz, but there are still plenty using the basic, simple and effective things. They're not glamorous but they still foster community.
To address Adam's comment about plenty of people still using newsgroups, email and bulletin boards... true, but as with any technologal evolution, the catalyst for change is efficiency and in this case the driver is content explosion. Social media tools allow us to create our own filters and categories, where we used to have to depend on the media, the record companies, etc. to provide that filter.
If my blog search window in NetVibes wasn't set for Technorati to send me a constant stream of blog posts related to Enterprise 2.0, I never would have found this post.
http://tinyurl.com/6x8qdj
And other photos: http://tinyurl.com/6yknbb
Start small, so the costs and risks are low is great advice. I like to say that you should give senior management a dial rather than an on/off switch--don't ask them if we should do blogging or not; ask them if it's OK for these three people to blog--you can cut that back or add more as you see how it goes. Management needs control, but you can do it the way you do with a three-year-old. Not, "Do you want to put on your shirt?" but rather, "Which shirt do you want to put on?"
Duality reality is still churning inside Intel, but more attention and resources are now moving in the right direction -- where the people are thanks to energized employees working together to help do great things. It's an amazing time of culture shifting and reinvigoration.