Category: Business Process Management
November 12th, 2009
Enterprise 2.0: What do we know today about moving our organizations into the 21st century?
We spend 60-80% of our time in the workplace on interaction and collaborative activity. This week in Frankfurt at the Enterprise 2.0 SUMMIT and last week at the inaugural Enterprise 2.0 Conference West in San Francisco has been an good microcosm of the state of the industry.
It does appear that we’re entering a new stage in the maturity of enterprise social computing. The good news: Most of the lessons learned are good ones, yet as we’ll see, some challenges remain.
Based on my conversations with practitioners and thought leaders here and the many discussions over the last two weeks, the practice of Enterprise 2.0 has effectively moved beyond the initial novelty of years past. There’s now a much more practical focus on how to create, manage, and govern social business communities, the specific ways to deliver measurable business value, and most of all, a desire to learn what works best (or not) in the realm of collaboration and social software.
The broad outlines of what it actually takes to apply new social business models have emerged lately along with the techniques to deliver on them successfully in the longer term. In particular, these include topics such as business case, tool selection, worker policies, community management, and the governance of social business environments.
Just as importantly, we are also starting to see customers implementing Enterprise 2.0 in scale. These typically include enterprise social networking, wikis, and social CRM. This is different than a year ago when there were only a handful of stories about Fortune 1000 and Global 2000 companies seriously exploring the potential benefits of social computing.
In the sense that the hard work has started, we are also seeing the end of the beginning for Enterprise 2.0. We’ve learned a lot along the way, particularly from early adopters, and it has been interesting to participate back-to-back in two of the largest enterprise social computing events of the season. This has helped get a sense of what’s taking place in Europe and North America with customers as well as the industry growing up around Enterprise 2.0 in terms of tools and services.
Related: Social applications are now well-entrenched in enterprise networks around the globe
Where is Enterprise 2.0 headed?
Here are my top takeaways from the discussions, research, and findings here in Frankfurt this week and San Francisco last week:
- Businesses are actively seeking information about how best to implement Enterprise 2.0. While last year they were kicking the tires and evaluating what the benefits are (establishing why) there’s a lot more actual project activity this year and this is driving significant demand for knowledge about how. The rise of the 2.0 Adoption Council is one demonstration of this need to share information about what works. Further providing evidence that there’s a need for how: A recent survey showed that 36% of their members were currently managing multi-million dollar budgets this year for Enterprise 2.0. In other words, they’re in the “how” stage. Finally, the end-users I talked with in my workshops at both events demanded detailed, specific information about how to make Enterprise 2.0 work for their businesses.
- There is still lots of debate about how to
September 2nd, 2009
Enterprise 2.0: Finding success on the frontiers of social business
It’s entirely possible something may cause social tools to abruptly stop their broad movement into the workplace, but history tells us that it’s just not likely. Success is in the eye of the beholder and with it often spawns a growing body of followers, adherents, acolytes, as well as nay-sayers that won’t be convinced until it’s an inescapable conclusion. In this very manner, at least so far, seems to go Enterprise 2.0, a moniker for corporate social software that has been inspired by widely popular online Web 2.0 tools such as blogs, wikis, social networks, and other social software.
As we’ll see, this is an intriguing case of a nascent business, social, and technology movement that seems to — despite some claims to the contrary — actually have had a rather humble and unheralded ascent while making surprisingly deep inroads in business including some higher profile successes. Make no mistake however, despite the apparent numbers, this is a movement that’s in its early days yet and which has years — if not a decade or more — before it has its largest impact.
What exactly the impact of Enterprise 2.0 will be however, has been the subject of an active and lively debate online over the last couple of weeks.
Uptake moving faster than absorption
My recent exploration of the potential causes of Enterprise 2.0 failures here on ZDNet managed to spark quite a discussion in the blogosphere about enterprise social computing and its overall appropriateness, motivations, and benefits to business. In particular, well-known contrarian Dennis Howlett weighed in last week with fairly severe criticism of Enterprise 2.0 which ultimately resulted in a direct response from Andrew McAfee today (who described it originally). For those wanting to follow the rest of the conversation, Paula Thornton probably did the best round-up of the discussion. The range of responses shows a wide variety of opinion reflecting both the scope and timeliness of this subject.
For my part, I would observe that the points that Dennis makes, while resounding with business importance (and being a bit disingenuous since I believe Dennis knows better given the information available), almost completely ignores the discussion and experiences with Enterprise 2.0 up to this point. This includes both the extensive efforts taking place in companies around the world right now as well as the already widespread nature of these tools. Far from being a solution waiting for some kind of business problem, at present Enterprise 2.0 describes a new way of working together that is already being used by millions of workers every day.
Figure 1: Stats, Adopters, and Motivation
That not every Enterprise 2.0 effort will benefit the business is also certainly true, as it’s occasionally misapplied and overused, like any new business or technology idea. However, the many people finding value in these tools today or who are working hard to make them successful are poorly served by broad generalizations, that for some reason, Enterprise 2.0 “is a crock.” That it’s not a well-known term is certainly true; most people using social tools at work are just doing it and not giving it a name. This does not distract from the numerous stories of success that have emerged over the last few years.
As JP Rangaswami pointed out recently, social computing is increasingly moving beyond the perception of being “interesting, but of no commercial value” and into a place where it’s thought to provide a range of bottom-line business results for most that apply it.
In working with and examining the results of many early Enterprise 2.0 efforts, I’ve been forced to come to the conclusion through repeated example that there is something fundamentally unique and powerful about social computing. Though not all uses of social tools result in rapid adoption or instant results, those that establish an early network effect can and do push existing IT systems (often ECM, knowledge management, and communication tools) into rapid irrelevance or completely upend and replace older, less dynamic databases or information repositories in surprisingly short amounts of time. That this almost always happens with just minor disruption is fascinating to me. And as we’ll see below, despite Dennis’ skepticism, these emergent tools have a rich and wide set of use cases. In the end, senior managers that may not “give a damn” about the emergent nature of the enterprise do in fact care about better ways of running their businesses.
That there is such a wide range of positions about Enterprise 2.0 from highly experienced people inside the worlds of technology and business is intriguing but probably inevitable due to the early stages of these changes and their rapid onset. In large part, I believe this is because of the distributed and muted nature of the information about what’s happening with social computing inside the workplace (this is in contrast with B2C-style corporate social media, which is still getting the lion’s share of buzz and attention right now.) Many projects are also adopting early advice and aren’t heralding the massive change that these tools may bring, are flying under the radar, and setting expectations low in a business world that is fatigued with the failures of big-bang IT. That adoption is happening as fast as is apparent today is intriguing given the warning that McAfee himself makes about expecting too much change from all of this:
[C]ertain E2.0 enthusiasts adopt the language of revolutionaries. They rail against the old corporate order and proclaim that they’re working for its downfall. They portray hierarchy, standardization, and management as enemies of innovation, creativity, and value creation. And they maintain that E2.0 is an unstoppable force that will only gain power as Millennials enter the workforce and that resistance to it is, ultimately, futile.
McAfee does point out that he indeed believes that those organizations without these tools will eventually fall behind, but he notes it generally won’t happen that quickly.
So while revolution is almost invariably not taking place in organizations adopting social computing tools, the pace of uptake has actually been quite impressive given the rate at which enterprises typically adopt new technologies (translation: usually with glacial pace compared to the consumer world). The numbers and profiles tell the story as you can see in the State of Enterprise 2.0 visual above. While a “disruptive revolution” is not what’s happening, and Enterprise 2.0 is certainly not inevitable for most organizations (yet), the adoption of the tools has in fact been taking place at what some would call near-revolutionary velocity, including the number of companies reporting they are consciously engaging in it as some level.
Although I’ve been following Enterprise 2.0 closely since 2006 and I’m generally known as an advocate, I should be clear that I’ve also tried very hard to be impartial and balanced (hence, for example, my Enterprise 2.0 failures post). No one is served by unrestrained hype. As much as possible, I have gathered data and examined the trends to see if indeed 1) the tools of Web 2.0 have begun to move into the enterprise and 2) improve business results. The first is now virtually a foregone conclusion; we are clearly beyond the
August 18th, 2009
Using social software to reinvent the customer relationship
The elimination of decades of inadequate communication channels will suddenly unleash a tide of many opportunities, as well as challenges, for most organizations.As Web 2.0 applications move more deeply into the strategic operations of enterprises, a unique hybrid of social software has emerged to help businesses deal with the giant sea of customers that awaits them on the other side of the network. While Enterprise 2.0 tools, primarily aimed at collaboration, are certainly part of this story, they often don’t help companies enjoy the full range of possibilities when it comes customer-facing social computing.
Enter the rapidly emerging Social CRM space, an area that’s become significant enough that there’s now a dedicated blog on the subject here on ZDNet by the terrific Paul Greenberg.
This year’s rise of enterprise social computing is opening a new front line in many businesses where the old ways of engaging with customers is no longer sufficient or even competitive. Many organizations I talk to these days are now evaluating the way social software seems to be altering the CRM landscape. In particular, Social CRM has recently come into its own as a leading model for this transformation. For comparison’s sake, online customer communities were a very hot topic last year in this same space, but as I pointed out then, it was surprisingly hard to create them repeatably. My sense is that Social CRM will be a more predictable, reliable model for applying Web 2.0 to customer relationships using many of the strengths of the community model.
Read Michael Krigsman’s 3 Big Reasons CRM Initiatives Fail
This is not to say that many of the social media tools that companies have deployed already aren’t good examples of Social CRM. Many of them are and this highlights a major discussion in the blogosphere last week sparked by SocialText’s Ross Mayfield, who posited that with Social CRM, the people are the platform. The key point here is that where online tools let customers have a social relationship with a business — in other words, interaction that is visible to them and other customers whenever possible — then some Social CRM is taking place. Without a fundamentally community-based relationship, you’re just back to traditional, one-on-one push management of customers. This latter model, a closed and asocial mode of customer interaction, is the very antithesis of Social CRM.
Social CRM: It’s all about people
For its part, Social CRM paints a vision of creating a deeper and more engaging community-based relationship with your customers, instead of the traditional approach of managing them, in a very Cluetrain Manifesto way. Part online community, part crowdsourcing, part customer service, Social CRM can create an emergent, collaborative online partnership with customers that can result in an array of improvements to business performance.
Far from being just for the benefit of the business however, with Social CRM customers tend to 1) be much more in control, 2) are in sustained contact with the organizations they care about, and 3) can use self-service, mutually visible participation, collective history, and peer relationships to assist each other as much — and often much more — than the classic CRM model ever could.
But like any composite, heterogeneous group of participants, Social CRM necessarily entails less deterministic control and outcomes. For example, these new Social CRM tools will let anyone ask a question publicly and anyone else in the community (customers or employees) answer it. Or provide a means to let new ideas flow in from the community in a very Dell IdeaStorm fashion. The question of who decides what the right “official” answer is, or which ideas will be selected and how non-employee submitters will be compensated are currently hard questions to answer for many organizations.
Then there is the challenge that by its very nature Social CRM is
August 11th, 2009
Pragmatic new models for enterprise architecture take shape
The best outcomes result naturally from self-organizing thought leaders in an organization that seek each other out and collaborate on shared solutions to their problems.Hear the words “enterprise architecture” and many people will turn away automatically. It’s not that they aren’t aware that technology drives so much of the modern world, they just think it doesn’t apply to what they do. The famous IT/business divide is too often kept this way because of mutual incomprehension, not-invented-here thinking, and apparently incompatible mindsets. However, this is beginning to change.
High technology continues to relentlessly pervade practically every aspect of today’s business world, prescribing what is potentially possible and often conferring enormous leverage when harnessed fully. But it has been the advent of the Web 2.0 era and its inexorable movement (some might even say infiltration) into the workplace that is making traditional IT — and the master planning version of it, enterprise architecture — an entirely new beast by popularizing simple, egalitarian tools and approaches that can be understood and applied more easily and quickly by a broad audience across most organizations.
Increasingly, in some IT departments and business units around the world, a closer new relationship is forming in which technology is deeply interwoven into continuous joint business processes of creation, change, and adaptation. Like so many grassroots tech culture movements, this one doesn’t yet have a formal name, but increasingly some are calling it emergent architecture.
The first seeds of this change began to be felt with advent of agile development processes a few years ago along with the subsequent rise of software mashups, and the popularity of user-distributable widgets, badges, and gadgets. These technology approaches combined with emerging business trends such as tacit interactions and pull-based systems driven from with bottom-up within organizations, particularly when co-existing with social computing and Enterprise 2.0.
The result: A new environment for creating technology-driven business solutions using different, more open communication channels with richer information and ground truth as well as significantly more adaptive technology elements often strongly influenced by the Web 2.0 world.
Meeting in the middle: Emergent Architecture
In recent years enterprise architecture has been moving from a discipline that provides top-down, a priori technology blueprints to the business side to one that articulates key, strategic possibilities and only the most critical high-level constraints (such as security standards) and then operates as a conductor, promoter, problem solver, and evangelist across the organization through the vehicle of a cohesive community to co-develop needed solutions.
When I wrote that most organizations were badly in need of a technology and software process “angioplasty” a few years ago, I highlighted the trends that will increasingly drive the agenda for new initiatives and projects when it comes to the strategic application of technology to business:
- Individuals and interactions over processes and tools
- Working software over comprehensive documentation
- Customer collaboration (internal or external) over contract negotiation
- Responding to change over following a plan
This is more true than it’s ever been and has been contributing to a growing discontinuity in the way that enterprise architecture will be conducted in the future. Going away are overly formal procedures, detailed technology prescriptions, complex software frameworks, and dreaded compliance checks. Replacing them are highly collaborative, adaptive processes, technology opportunism, simple (frequently Web-oriented) technologies, and dynamic — even spontaneous responses — to organizational and marketplace needs.
Enterprise architects of the near future will still dispense clear guidance that carries the requirements of the entire organization with it, but it will be appropriately broad and EAs will actively help tailor it to local needs across the organization. Self-service IT will become much more common as workers are comfortable using today’s extremely easy-to-use, adaptive, and flexible tools, many of them using Web 2.0 ideas such as simple, open architectures and malleable pieces and parts, especially open APIs, and even new, open business models such as crowdsourcing and community-based involvement.
While organizations such as Gartner are just beginning to map this trend, there’s increasingly little doubt that the infamous chasm that often disconnects IT and business is being crossed in many quarters by business users unafraid of today’s populist technologies combined with IT practitioners that strongly desire to solve immediate and important business problems. That today’s collaborative and communication technologies in the workplace are much more open, social and collaborative than they were even a couple of years ago are likely to be
July 27th, 2009
Ten top issues in adopting enterprise social computing
Last week ZDNet’s Larry Dignan wrote an insightful post that analyzed the recent report from Charlene Li and the Altimeter Group/Wetpaint about early data that seems to show an intriguing correlation between social media engagement and corporate financial performance. The key finding was this:
To be specific, companies that are both deeply and widely engaged in social media surpass their peers in terms of both revenue and profit performance by a significant difference.
This report (details and copy here) is encouraging news for those embarking on applying social software to various parts of their business. But, as Larry points out, these numbers can be interpreted a number of ways. Many organizations would rather wait for best practices to solidify before climbing very far up the social computing adoption curve. So while there’s increasingly less question that there is genuine ROI in social media, the question still remains whether it can directly drive fundamental, bottom line performance in the average organization today.
This highlights a key conversational thread that came out of last month’s Enterprise 2.0 conference: Does social computing really deliver significantly better business performance? Or is it merely a minor incremental improvement?
Unfortunately, despite an growing body of encouraging case studies, evidence, and research, the jury is still out on total impact social computing will have on businesses. This return will even vary widely for many organizations for a number of reasons will explore below. At present, the uncertainty is simply because that there are not enough organizations that have incorporated social computing approaches (which encompasses the full range of social software as applied to business that include social networks and Enterprise 2.0 to things like crowdsourcing and social CRM) across their lines of business for us to get a complete enough picture. Even the ones that have done it, haven’t done it long enough to see what the results actually are.
Instead, as companies begin pilots and initiatives, we are seeing the first wave of issues cropping up as the larger cultural, IT, and business impact of social tools begins to be felt.
Sidebar: What is social computing? It’s the use of social software within and between organizations and any interested parties such as employees, customers, and partners. Social computing, as explained here, can usher in significant large-scale shifts in where productive forces and innovation come from. Organizations will all adopt enterprise social computing tools in slightly different ways and will generally proceed from ad hoc usage, often by applying widely available consumer tools at first, to more evolved open business models. As of this year, about half of all large organizations now have social computing tools deployed in some manner.
The following is a summary of the issues I’m hearing from practitioners in the field as well as from our clients and industry contacts.
While these ten issues with social computing are the ones I hear about most, your mileage will almost certainly vary. However, I believe them to be representative of where we are in 2009. Please note that these are by no means insurmountable obstacles and merely represent a good cross section of what early adopters typically encounter as they begin climbing the social computing adoption curve (see diagram above).
Ten top issues with social computing in business
- Lack of social media literacy amongst workers. Anecdotally, the farther a business is from the technology industry, the less likely that line workers will be familiar with the latest software innovations. Those who haven’t been maintaining blogs, updating wiki sites, using social networks, sharing information socially, etc. will require more education than those who do. Even the basics of netiquette as well as key techniques to get the most from social computing platforms such as encouraging the building of links between data, tagging information, or establishing weak ties over the network are often poorly understood even by frequent users of social computing tools. In short, social computing requires some literacy efforts in most organizations to achieve effectiveness, just like personal computing skills did a few decades ago.
- A perception that social tools won’t work well in a particular industry. There is often an assumption in many specialized industries — such as medicine or manufacturing, just to cite two random examples — that social tools won’t
March 3rd, 2009
Cloud computing: A new era of IT opportunity and challenges
It doesn’t take long to get a good feel for the potential of cloud computing and how it can offer ready access to entirely new business capabilities, less expensive IT resources, and unrivaled flexibility for businesses of every size. Since becoming a hot topic early last year as major vendors, including top firms such as Amazon, Google, and Microsoft, jumped on the bandwagon with a wide-range of offerings, cloud computing has consistently stayed on the industry’s radar. One of the bigger challenges IT departments will face this year is whether they can take the plunge with cloud computing quickly enough to benefit their organizations as a whole.
With leading companies still joining the movement — including IBM, HP, and Salesforce — cloud computing has moved from a cottage industry to one of the bigger growth areas in the computing business, just as the industry as a whole begins to take serious lumps from the recession.
The onus is now on businesses to take advantage of cloud computing to cut costs and become more agile. In the process, they will have some hard choices to make — and some intriguing ones as well — if they want to access the many advantages that cloud computing platforms can provide.
There are also some non-trivial challenges involved in adopting cloud computing that must be watched closely as well. These includes a long list of issues such as the security and privacy of business data in remote 3rd party data centers, the dreaded concerns about platform lock-in, worries about reliability/performance, and even fears about making the wrong decision before the industry begins to mature.
However, in a business environment where change is almost mandatory in order to survive, cloud computing appears to offer significant economic benefits if the risks can be offset. Hence, one of the bigger challenges IT departments will face this year is whether they can take the plunge with cloud computing quickly enough to benefit their organizations as a whole.
ZDNet’s own Phil Wainewright has covered some of the more interesting issues swirling around cloud computing of late including the default lock-out that occurs in the event of the demise of a cloud computing provider as well as the brewing SLA battles between the major providers. This underscores how the cloud computing space is where the new platform wars are forming and it’s sizing up to be as big or bigger than earlier ones. The good news for now: In a wide-open new industry, there is no clear leader today and choice prevails.
This brings up the side discussion of what actually constitutes cloud computing, since everyone seems to be applying the label to anything that runs on the network. Is it Web hosting of your application code? Is it a software platform as an on-demand service? Do SaaS applications count as cloud computing? The answers to all these questions are a qualified yes; the answer hovers roughly around the outsourcing of computing of any kind (CPU, storage, apps, etc.) using a shared cost, commodity utility model. In general, you know if you’re involved with cloud computing of some kind if you’re receiving a bill for computing services being done for you somewhere else but which you can access directly.
I used the term commodity utility model since cloud computing providers aren’t monopolies today (unlike a lot of the other utility services we use in business) and currently compete actively with each other on features and pricing. This means that CPU cycles, bandwidth, and application logins in the cloud will be extremely cheap and extensively commoditized for the foreseeable future. This constant competition creates continuous pressure to drive down the costs and increase the capabilities of cloud computing platforms in a way that just doesn’t happen naturally within IT organizations today. In other words, just like most businesses don’t generate their own power or create their own financial institutions to keep their money in, increasingly they won’t keep their computing in largely parochial, private capabilities that can’t leverage the economies of scale, innovation, and efficiencies of dedicated providers.
Enterprise cloud computing: Some assembly required
As a new industry, there is a lot of choice in cloud computing today and will continue to be more until the inevitable shake-out occurs and the winners begin to emerge. That also means there is no dominant model for how cloud computing should be delivered and this is resulting in some interesting fragmentation in the market already. Some cloud computing offerings are so generic (Amazon’s Elastic Compute Cloud, aka EC2) that they are nothing more than sophisticated on-demand hosting services while others offer nearly everything you need to create software, as long as you use their programming model, frameworks, tools, and management systems (Google App Engine). Which model a business chooses will have deep ramifications for how they can take advantage of cloud computing and because of this, most organizations will likely have multiple providers.
Is it time to declare the death of the enterprise data center? No, not quite yet, but it’s coming.
Let’s also make no mistake, most IT executives currently think very few cloud computing solutions are properly enterprise ready today. Though a number of them have come a good bit of the way towards
January 29th, 2009
Using Web 2.0 to reinvent your business for the economic downturn
We are very fortunate that, given the generational challenges we face today, we have tools that those that came before us could not possibly imagine.At this point it’s more than clear that 2009 will be a challenging year for a great many businesses. Most organizations these days are now actively engaged in activities that are taking a look at what they can do to make the best of the current economic situation.
Some business leaders will be looking at paring things back to the basics while a different sort will be looking at entirely new avenues to survive and thrive. The decisions we make now can greatly affect what happens to our organizations going forward.
The good news is that most enterprises actually have a fair number of compelling options right now if they are willing to think outside the box. While some might look at the social aspects of things like Web 2.0 as marginal subjects when things get tough, nothing could be further from the truth when it comes to the deeper implications of Web 2.0 in the enterprise. Many of the more transformational aspects of the 2.0 era now have extensive groundwork laid for them, are available in genuinely enterprise-ready solutions/pilots, and many have just been waiting for the right situation; the driving need for businesses to change and transform in the face of radically different business conditions.
Why is Web 2.0 particularly interesting right now for the enterprise? Web 2.0 has always been about making the most of the intrinsic power of the network and whatever is attached to it. This can be people (social computing and Enterprise 2.0), low-cost dynamic Web partners (open APIs and cloud computing), the world’s largest database of information, lightweight integration (mashups and Web-style SOA), or maximizing the value of the network itself (the network effects that everyone talks about), and much more. These collectively represent better, more efficient, and less expensive ways to accomplish things that we previously used to do without the network’s help or with methods that didn’t take advantages of how the network works.
Read this year’s Enterprise Web 2.0 predictions for 2009 for more perspective on this topic.
Fortunately, our businesses have become so thoroughly network connected that the inherent efficiency of most 2.0 approaches will now work just as well inside the firewall as outside, though there still remain a few differences.
So what does this mean to the harried businesses looking for new approaches to creating value in a chaotic and unpredictable time? How can this help in cutting costs or driving growth? Here are some practical ways that 2.0 approaches can help organizations grapple with the challenges of 2009. Though some of these have an IT slant, many of them are strategic approaches to Web 2.0 that most organizations can embrace across their lines of business to capture substantially better outcomes.
Note that the struggle with many of these, as with so much of Web 2.0, is that there is a major shift in control, a much higher level of transparency, and an openness that many businesses can be uncomfortable with. However, to organizations that are willing to overcome these largely political, cultural, and mindset challenges, significant opportunities are available for the taking, often for relatively modest investment.
Strategic use of Web 2.0 for growth and resilience
As always, this is not an exhaustive list, though it’s a good start, and only gives a sense of the possibilities. I pointedly left out important areas like mobile, despite prognostications like mine or others lately that it’s a hot subject; it is, it’s just not fundamentally transformative enough at this point. I am sure readers will contribute more below in TalkBack.
- Move to lower-cost online/SaaS versions of enterprise applications. - Face it, paying for yearly upgrades and new license fees is a major, recurring budget line item most organizations would like to eliminate now that most companies have a computer in front of every worker. Open source software is an option and is certainly cheaper up front, until the support costs and other factors come in. There are, in fact, numerous lower-cost options today for virtually any type of business software but unless it’s browser-delivered, or even better, externally hosted as SaaS, you can’t use the provider’s economies of scale to drive down the full range of costs from deployment of upgrades and technical support to hosting, backups, and management. In general, moving to SaaS for anything that isn’t strategic to the business is the best place to start if you’re trying out externally hosted apps for the first time.
Strategic applications might be more difficult to migrate to a SaaS model both from a customization and change management standpoint as well as from concerns about governance, reliability, compliance, and regulation. Retraining and data migration are a cost component in SaaS scenarios but are manageable in today’s increasingly online and data standardized world. How much will you actually save? The numbers vary, but recent reports say that moving to a SaaS version of your Customer Relationship Management (CRM) system will save the average firm
April 17th, 2008
Web 2.0 success stories driving WOA and informing SOA
The striking contrast between the stories that we’ve been hearing lately about the slow going of SOA initiatives in the enterprise and the vibrant and rapidly growing ecosystems similar to them on the consumer Web has been generating a lot of debate and discussion in the enterprise IT community recently. This discussion was brought into sharp relief when ZDNet colleague Joe McKendrick recently reported on Burton Group’s Anne Manes stating that it “has become clear to me that SOA is not working in most organizations“, based on a wide ranging study they performed.
It’s become clear that the SOA world will have to change some basic assumptions.This is just one data point of many recently showing the continued shortfalls we’ve experienced in trying to get our enterprise systems to work together in the ways that we would like. Organizations clearly want to leverage high levels of interoperability to seize new business opportunities, innovate on top of existing assets, and properly leverage the extensive landscape of software, data, and infrastructure that most organizations have accumulated in large quantities over the years. But we are still having a great deal of difficulty doing so and SOA investments are just not reaping the types of return on investments that most businesses would like to have.
Looking for answers on how to improve SOA
This has driven a search for new models since there’s little question that the core ideas behind SOA seem to be the right ones. Rather, it’s been how we’ve gone about designing and implementing SOAs that appears to be at the crux of the issue. As we look at the most successful examples of SOA actually working, we keep being drawn back to the Web itself, with companies such as Amazon and their highly successful Web Services Division (with hundreds of thousands of business consumers of their global SOA), Google and its numerous and varied open Web APIs from Google Maps to Google Data, eBay and billions of dollars in listings it generates through its public SOA, or the rise of applications like Twitter (which gets 10 times the use through its APIs than from its user inteface) and applications that are primarily used via their SOA presence. Then there is the increasingly widespread adoption by millions of users of a sort of “visual SOA” with Web widgets and gadgets as well the rapidly growing story of software mashups, aka composite applications in the SOA world. There are many more SOA-ish success stories like this on the Web, but few in the enterprise.
John Musser’s ProgrammableWeb remains the best directory for finding all the APIs that Web companies have contributed to the Global SOA. Over 700 APIs are listed currently.
So if so-called Web 2.0 companies — which value participation almost above all else, both from consumers and organizations that want to integrate them into their offerings — are seeing highly desirable levels of adoption and significant ROI, how can this help understand how to improve our efforts in the enterprise? Most new Web 2.0 applications start out life with an API since getting connected to partners that will help you grow and innovate is a well-known essential for success online today. Despite years of SOA, we still don’t focus on consumption and openness as fundamentally essential characteristics to building an internal partner ecosystem that have beat a path to your door to use the services you are offering to them to build upon.
One big issue, as I’ve written about in the past, is
May 14th, 2007
Mashups: The next major new software development model?
At last week's Mashup Ecosystem Summit held in San Francisco and sponsored by IBM with an invited assemblage of leading players in this space, I gave an opening talk about the current challenges and opportunities of mashups. And there I posed the title of this post as a statement instead of a question. The reason that it's a question here is entirely driven by the context of who is currently creating the majority of mashups these days. Because even a cursory examination of what people are doing every day on the Web right now tells us that mashups — also known as ad hoc Web sites created on the fly out of other Web sites — are indeed happening in a large way, albeit in simple forms, by the tens of thousands online every day.
The consumerization of the enterprise as younger workers bring their Web 2.0 skills and habits to work has already begun.But inside our organizations, both in the IT department and in business units, mashups are a much rarer phenomenon. And in fact, this is one of the classic hallmarks of the Web 2.0 era; the much larger community of the Web as a major source of innovation and leading edge behavior that subsequently moves across the firewall and into our workplaces.
However, the topic of this blog is aimed at the application of Web 2.0 to the enterprise and so whether mashups will be a significant new model for application development inside our businesses anytime soon is still somewhat of an open question. It's worth noting that McKinsey's recent global executive survey of Web 2.0 in business said that a whopping 21% of large businesses across the board are planning investment in mashups in 2007, but a sobering 54% of business executives also said mashups were not even under consideration. Understanding the timing on mashup adoption therefore is important along with the challenge of communicating their potential.
Since the mashup story is primarily being driven by spontaneous activity at the edge of the Internet, an accurate and updated picture of what's actually happening with them is harder to make out than if it was being driven by a centralized industry effort. And as it turns out, this makes what's happening richer and more exciting than it would be otherwise while at the same providing significant challenges for those that want to take these compelling ideas and apply them deliberately to solve business problems.
So in the interest of making sure we have the broadest industry discussion we can about mashups — and to make sure there is some kind of snapshot of what we think we're seeing in this space — I thought I'd summarize the notes from my talk at the Mashup Ecosystem Summit.
To bring folks that are just joining the mashup conversation up to speed on why mashups are so exciting, I'll start with my take on the key aspects of mashups from a value proposition perspective.
Key Aspects and Benefits of the Mashup Approach
- Effective leverage of Web parts and the Global SOA. Mashups are generally built out of the bits, pieces, and services of other Web applications that already exist, adding code only when it can't be sourced from internal or external suppliers or to provide integration "glue" between the parts. This reuse can quickly and easily leverage millions of dollars in previous investment and results in a
May 5th, 2007
Enterprise 2.0 as a corporate culture catalyst
I've only recently had a chance to catch up and read Tom Davenport's post a few weeks ago about his skepticism of Enterprise 2.0's ability to wreak significant cultural and hierarchical change inside organizations. Those of you tracking the Enterprise 2.0 story know the drill, namely that applying Web 2.0 tools and platforms inside organization may or may not — depending on who you are talking to — improve the way we collaborate, run our businesses, and even potentially tap major new veins of previously unexploitable worker productivity. I myself tend to be a bit biased because I'm very close to many uses of these technologies and their use in the field. And that's shown me that if one trend stands out clearly above the fray, it's that most organizations are rapidly embracing these tools today, either from the top-down or at a grassroots level, and often both.
Viewpoints like Tom are entirely right on however if we were looking at tools that are hard to use, highly complex and overspecialized, and required significant resources and special skills to acquire, deploy, and maintain. But this is entirely not the case in this wave of software applications that seem to systematically address virtually all the barriers we've seen in the past to getting new tools adopted, rapidly providing immediate value, and broadly used. One of the most important reasons for this is simply that the constantly evolving Web has continually refined and guided through competitive pressure — and other feedback loops — the design of sites until we have hit upon very effective models for collaboration and communication. These include the now-ubiquitous blog and wiki but many others as well including mashups, roaming Web desktops, and highly-customizable SaaS apps. Applying these to the enterprise is now extremely easy for anyone to do, highly applicable in many if not most business situations, and certainly last but not least, very inexpensive.
But as Tom goes on to note, the real obstacles to applying Web 2.0 platforms inside our workplaces may very well be our corporate cultures. Cultural impedance is something that's also inhibited many otherwise highly useful and potentially beneficial IT initiatives including SOA, BPM, EAI and others. The gap between what's technically possible and what the corporate culture is willing and able to accept — must less actively encourage — is often wider than many people automatically assume. Clearly the exciting things happening on the Web today from the explosion of user-generated content, ad hoc collaboration in the large, rapid self-service global information discovery via Web search, and collective intelligence stories like Wikipedia are outcomes that many would like to replicate inside our enterprises.
And the very openness of Web 2.0 platforms, the control and power that must be handed to
An internationally recognized enterprise architect and business strategist, Dion Hinchcliffe has been working for two decades with leading-edge methods to accelerate project schedules and raise the bar for software quality. You can follow Dion on Twitter.
See his full profile and disclosure of his industry affiliations.
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