Businesses are moving to a new virtual reality; Issue of the week: Networking The digital revolution is rapidly changing the face of business-to-business networking, says JEZ DAVISON.

Byline: JEZ DAVISON

PRESSING the flesh used to be the best way to secure a new business contact and keep them sweet - now video conferencing, online marketing tools, and social websites such as Facebook, Bebo and MySpace have opened up a whole new world for socially-pluggedin executives.

If you're in any doubt, just look at the Facebook phenomenon, which grew its unique audience in the UK from about 1m in January 2007 to more than 8.5m in 2008.

Darlington-based Recognition Marketing and Public Relations even goes so far as to insist its staff have at least one online profile to help spread word of its activities, while the evolution of the Blackberry or email-enabled cell phone can transport the virtual business card to a customer's inbox within seconds - a practice no doubt accelerated by news from brand specialists Kyp Systems that only 38% of people ever look at the printed alternative.

But even in today's rapidly evolving multimedia environment, we're loathe to give up our breakfast, lunch and dinner clubs.

Liz Slade, managing director of Darlington-based Ambassador Recruitment, says: "Face-to-face meetings are more personal. They allow you to read people's body language.

"I'm in a people-oriented business. I won't take on a client unless I've met them in the flesh."

Nevertheless, a combination of online and offline networking can reap tangible commercial benefits.

Online business directory and social networking service, Partners4Business, has almost 700 members from 37 countries on 21 different sites including Partners4Automotive, Partners4Engineering and Partners4Technology.

Describing it as a "business dating agency", the man behind the network, Phil Eadon, who organised this year's Partners4Engineering conference on Teesside, says: "Increasingly companies are getting their internet presence out there to make connections on a global scale. Social and online networking is developing at an exponential rate."

He believes online networks are ideal for busy executives whose hectic schedules prohibit them from attending important face-to-face events and can widen the pool of contacts you make.

The recent explosion in sector-specific clusters designed to drive business through the local supply chain is based on the same principle.

The North East Process Industries Cluster (NEPIC) has developed a new web portal that will allow firms to advertise their services and network with each other. Meanwhile, NOF Energy is taking a similar approach in developing supply chains in the North-east's burgeoning oil and gas sector.

CEO George Rafferty claims larger clients often prefer to deal with an established consortium of companies to achieve an "all-in-one solution".

He says: "The client can achieve economies of scale by working with a consortium - especially if it means they can deal with a single point of contact. Experienced firms like working with a connected supply chain because it can open them up to new technologies used by emerging smaller firms."

NOF has about 7,000 contacts globally and almost 300 members, including Stokesley-based construction consultancy Armstrong Davis Associates Ltd (ADA).

Jeremy Wright, ADA's business development manager, welcomed the emergence of cluster groups because they "help to keep trade local".

CAPTION(S):

POSITIVE: Jeremy Wright, above, business development manager at Armstrong Davis Associates Ltd, welcomes the emergence of cluster groups because he believes they help to keep trade local; DYING OUT? With the increased use of electronic cards, could we see the end of the paper variety?