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Limitations of computer systems

Kling says that with social software, the interaction is no longer between you and your computer, but between the groups you belong to and networks of computers. ... So, is social software hype or reality?
I used to work with a company that did a lot of acquiring of small and mid-sized manufacturing companies. Some of the initial tasks upon acquisition: shut down all e-mail systems. Terminate all large-scale "ERP" or "business management" software and replace with simple inventory and bookkeeping systems. Close all stand-along headquarters locations and move personnel to closest factory. Demolish all walls in office spaces and move desks to central "pen". Move office personnel into open locations in the middle of the factory floor. Prohibit all use of studies, whitepapers, and Powerpoints, and 98% of all memos. In some cases they took out fax machines. Require all personnel to talk to everyone they did business with 4 times per day, either in person or on the phone.

After taking these actions, the typical acquired company would see a doubling of productivity and a tripling of profitability in 18 months.

So I guess I have to say I am a bit skeptical of "social software" in any kind of business setting. Blogs are fun to read in the evening for one's personal enjoyment, but turning the business day into a blogging session doesn't seem to me to have much promise.