Category: Crowdsourcing
October 5th, 2009
Twenty-two power laws of the emerging social economy
Traditional measures of business success are becoming less and less important.There is a time for big picture thinking and there is a time for details in business and IT, the latter which make business and technical strategy a reality and the former which provides needed direction and focus.
Highlighting the big picture side last week we saw Steve Ballmer’s exploration of the efficiencies he believes are being driven by something he calls “the new normal”. In this view, he tries to frame up how a reset of economic expectations during the downturn has created an environment that is putting pressure on business to do more with less, affecting IT at least as much as the rest of the organization, if not more.
We’ve seen also seen similar and broader variations on this theme this year, such as John Hagel’s capable attempt to define the “Big Shifts” in business taking place in this century. Just recently McKinsey published a similar reported titled The 10 Trends You Have to Watch: And What They Mean For IT in the Harvard Business Journal (summary is by Gartner).
If we factor out the commonalities in these views, it highlights a core set of strategic trends in IT and business in 2009, namely:
- New resource constraints. Today’s new economic baselines (the downturn, green business, etc) are requiring that we find ways to accomplish our goals using fewer resources. This includes identifying the means to capture opportunity and transform “in process” business activities using newer, more efficient models. Business leaders will need to effectively link IT and business much more so than in the past to accomplish the movement to this new baseline. This also doesn’t mean everything is constrained. As we’ll see on the technology side, abundance is being produced that may address shortcomings in the business side.
- Value shifting from transactions to relationships. This is the growing realization that the traditional rote business transaction as the core source of organizational value is diminishing and value is now coming from relationship dynamics. This has many implications including using new management methods (example: from top down command-and-control to community curator and facilitator), tapping into new reservoirs of innovation, adopting new ways of interacting with customers, or driving better tacit interactions. Web 2.0 and social computing will be key enablers of this for business units and IT organizations that want increased relevance.
- Industries in flux with new ones emerging. Previously stable industries such as finance and media are feeling the pinch the strongest, but most others are as well. The recession is creating a bigger gap between healthy and unhealthy businesses while many industries are being unbundled or transformed into new ones (traditional software companies moving to SaaS and cloud computing for example or the rise of crowdsourcing competing with outsourcing at the low end.) Again, today’s dynamic Web-driven global knowledge flows and agile online models for computing and collaboration — as well as economic and intellectual production — are now a significant change agent.
- Moving from change as the exception to change as the norm. Today we’re seeing faster consumer behavior shifts, quicker pricing changes, more rapid product cycles, and faster media feedback loops. While this can also lead to more extreme market conditions, it also enables opportunities to be turned into bottom-line impact for organizations that can adapt to market realities quickly enough. The network is the culprit (and solution) for much of this again: We now have pervasive social media instantly transmitting and shaping cultural phenomenon and faster financial cause-and-effect in the markets, real-time online markets, and so on. In the 21st century, following a plan is increasingly less important than responding actively and effectively to change.
- A shift of control to the edge of organizations. This has been predicted at least as far back as the Cluetrain Manifesto, if not farther. It’s not even really a shift, it’s more like the addition of a new dimension to how we operate organizationally, something I’ve referred to previously as “social business.” This new addition changes the dynamics of where useful information comes from, how decisions are made, and how more autonomy and self-organization will be needed (and tolerated) in modern organizations to meet more dynamic and changing global marketplace.
As I explored recently in “How the Web OS has begun to reshape IT and business”, today’s Internet has become a central driver of how we do things today. It’s the richest marketplace that
September 9th, 2009
Government 2.0: A tale of "risk, control, and trust"
Yesterday in downtown Washington DC I was fortunate to be able to attend two important Government 2.0 events: the LMI Executive Forum on Mission 2.0 and O’Reilly/TechWeb’s Government 2.0 Expo. Both of these events highlighted the benefits as well as the challenges of improving the way the government does so much of what it does today.
Self-organizing and self-directed behavior is much more likely in the government of the near-future.
Social collaboration, information sharing, and open data were broad themes extensively explored and certainly championed by many at both events, admittedly myself one of them. Cautious optimism was apparent in the participants as there seems to be a broadening consensus that there will be striking changes in government over the next few years. This optimism was occasionally overshadowed in many discussions by the recurrence of issues such as the challenges that bureaucracy poses to progress including HR, policy, reward systems, and management motivations. Especially evident were worries about the classic issues of hierarchical management which LMI Executive Forum participant Mark Oehlert summarized smartly in three broad themes: “Risk, control, and trust.“
The interest, however, in improving government through the innovative use of the latest Web 2.0 approaches and tools is at the moment reaching nearly a fever pitch in the public sector, at least in the nation’s capital. Throughout the summer and fall there have been events and meetups around the Washington DC area exploring how social computing, Enterprise 2.0, agile integration, and data sharing between agencies in the federal government can achieve many of the goals for next-generation government that those, including national CIO Vivek Kundra, have been expounding in recent months.
A lot of this recent interest has been spurred by a new administration, particularly President Barack Obama’s early moves this year, and the issuance in particular of the Memorandum for the Heads of Executive Departments and Agencies on Transparency and Open Government. In this document, Obama says that:
Government should be collaborative. Collaboration actively engages Americans in the work of their Government. Executive departments and agencies should use innovative tools, methods, and systems to cooperate among themselves, across all levels of Government, and with nonprofit organizations, businesses, and individuals in the private sector.
While orders and memoranda are issued all the time in government, often without substantial impact, the broad influence of social computing these days, both in the consumer space as well as the enterprise, has made social systems one of the top approaches of interest when it comes to open government initiatives this year, as we’ll see from the discussions yesterday.
Exploring Mission 2.0: An emerging subset of Government 2.0
The LMI Executive Forum yesterday was attended by senior members of various government agencies including the CIA, DNI, and the DoD. The attendees, including myself as a guest, discussed at length social computing in the federal workplace, in particular the more secure, mission-oriented environments such as the intelligence community. The use of Web 2.0 tools in this environment can be called Mission 2.0.
A number of key points came out of the discussion that highlight the differences between private sector use of Web 2.0 approaches and their realization in a so-called Mission 2.0 environment. In particular is
September 6th, 2009
How the Web OS has begun to reshape IT and business
These days in the halls of IT departments around the world there is a growing realization that the next wave of outsourcing, things like cloud computing and crowdsourcing, are going to require responses that will forever change the trajectory of their current relationship with the business, or finally cause them to be relegated as a primarily administrative, keep-the-lights-on function.
IT is going to either have to get more strategic to the business or get out of the way. Businesses too must grow a Web DNA. The proximal cause of this seems to be the growing domination of the global network that surrounds all businesses today: The Web. If you’ve read my writings here since 2006 you largely know what’s happening: Today’s highly evolved Web has grown far beyond its original roots in content distribution and communication. It has become a fully fledged platform for media (TV, movies, music, newspapers, gaming, etc. have been strongly disrupted by the Web and now largely reside there) as well as more strategic pursuits. Probably most significantly is computing in all its many forms. This ranges from low-level services such as raw compute power and storage to social computing, semantics, and collective intelligence.
But the advent of a Web OS is certainly not just an IT story. It’s also — and really mostly — a business story. Those who are trying to track the so-called “big shifts” in the 21st century, thinkers like John Hagel, are attempting to pin down the specific changes taking place in the world today. John recently noted that “we are moving from a relatively stable business environment to one characterized by rapid rates of change with ever more disruptions generating increasing uncertainty and unpredictability“. In this way, routinely transforming instability and rapid change from a threat (which it is to most businesses today) into opportunity is a core skill that organizations increasingly must be able to cultivate.
That much of the pace of change today is driven by the modern world’s pervasive and instant global flows of knowledge is largely due to influence of the Web and its billions of two-way touchpoints with nearly a third of the world’s population (including practically all of the developed world). In addition to ultra fast feedback loops that drive real-time action/response scenarios in the marketplace, the Web has also become an incredibly efficient, inexpensive, and easy-to-use delivery system for just about anything that an interface can be wrapped around.
This has created a new form of leverage in terms of the ability to change and adapt by tapping rapidly and deeply into on-demand resources (be they computing, data, or even people and ideas) in virtually real-time. A recent article in the Wall Street Journal noted that because of modern technology, particularly the Web, business “initiatives that used to take months and megabucks to coordinate and launch can often be started in seconds for cents.” Clearly, this is a brave new world, even if it’s one that’s still happening more on the edge than in the core of businesses today.
WOA = Web-Oriented Architecture
CC/SRR = Creative Commons/Some Rights Reserved
AOP = Architectures of Participation
It’s a world where scarcity practically doesn’t exist and access to abundance is virtually free. It’s also true that the business models of the Web OS are only emerging as well. While monetization is prevalent for those consuming or participating in the Web OS, there is also a real and ongoing concern that it’s also the modern version of sharecropping. That traditional management approaches often don’t understand the nuances of these issues and aren’t designed to take advantage of this modern economic landscape, much less compete with a growing number of businesses that do, is a whole side story I’ll explore when I’m able. But it’s one in which the Web OS is increasingly forcing a serious reevaluation of modern business practices as well as the very notion of how an opportunity is defined, identified, and targeted.
What is the Web OS?
While there are multiple ways of looking at the Web as an operating system, from cloud environments that mimic a desktop operating system to sets of services packaged together and bundled as an individual product to companies, the largest — and the most significant — is the idea of an overarching and emergent Internet operating system. The data, services, and even communities of the Web are now programmatic and can be incorporated and remixed into any other business or product at will. The concept of a Web OS isn’t new. But its arrival on the scene in compelling form with serious impact to the enterprise is.
Over the last few years, as open APIs, social networking platforms, cloud computing, open identity services, sensor-driven databases (such as with GPS and OpenStreetMap), or even people (example: Amazon’s Mechanical Turk) have created open ecosystems in which anyone can participate, including business, both to contribute and to consume. The Web has become the ultimate outsourcing platform and one that is incredibly agile too, combined with economies of scale that are very hard to match. There are challenges too: Unpredictabilities and risks exist that must be dealt with both routinely and successfully.
But to perform well in this changing business environment organizations have to
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
June 8th, 2009
Reconciling social computing with the enterprise
Umair Haque wrote an impressive tract on his Harvard Business blog late last week about Twitter and how it changes the rules of innovation. It’s an incisive and challenging piece that well worth reading if your looking at cutting-edge business trends. It also helps surface what’s turning into an increasingly larger gap between what happens in the business world and what happens everywhere else.
It will sometimes be a challenge to find the right metrics that help you to drive decisions about your social computing behaviors that improve the business. Jeff Jarvis and Michael Arrington made similar points over the weekend about process vs. product, ostensibly about their particular industry (journalism) and how social processes are competing — often more effectively, though very differently — with traditional, non-social “product” creations, namely news stories. As we’ll see, you can find similar examples of this now in many other industries. The key point: The processes involved in how we accomplish our daily work are being transformed by social tools on the network. Along the way, the act of work itself is becoming more of a collective journey instead of a final destination as our individual work experiences become more open, collaborative, participatory, and social.
The net result is often better and richer outcomes, though the journey can occasionally devolve into a less-than-deterministic result that can be (for the time being) rather unsatisfying, though rarely does it come to a complete stop until everyone who wants to has a crack at it.
On the other hand, the classical way of working has been to create finished, perfect-as-possible outcomes (products, services, etc.) from opaque, unknowable, lengthy processes which outsiders, within or outside the organization, could not directly perceive, alter, or improve. As Jarvis writes of traditional work methods:
It is the byproduct of the means and requirements of mass production: If you have just one chance to put out a product and it has to serve everyone the same, you come to believe it’s perfect because it has to be, whether that product is a car (we are the experts, we took six years to tool up, it damned well better be perfect) or government (where, I’m learning, employees have a phobic fear of mistakes - because citizens and journalists will jump on them) or newspapers (we package the world each day in a box with a bow on it - you’re welcome).
The key point here is the broader changes we are experiencing today: The pervasive presence of social software and today’s highly open, interactive, and remixable Web embedded deeply into our personal lives is increasingly allowing us to experience a new way of living. And it’s one that bears less and less resemblance to the workplace all the time, with significantly differing behaviors, skills, tools, and expectations. This situation creates a delta that, sooner or later, will simply become untenable for many organizations. We simply aren’t keeping up with the pace of change, never mind that not all workers are experiencing the change of the modern world the same way or at the same speed. Media sharing sites, social networks, and social tools have become embedded deeply in a large percentage of people’s lives, just as long as we remember it’s not everyone.
This increasing distance between these two worlds creates a gap — a disconnect, even — that increasingly cuts organizations off from their most valuable assets (their people) and also exerts a subversive force on organizations as their workers help themselves to the tools of their own volition, bring their (and arguably better) new behaviors and processes to work, and try to get things done with them, whether that’s crowdsourcing, Enterprise 2.0, online customer communities, etc.
So what will happen? Will there just continue to be a growing chasm between the worlds of business and how we do things outside of work? Or will the gap just become too large to sustain, with an equilibrium shift suddenly taking place in some way that creates what I’ll call (for want of a better term), a social singularity.
Singularities are popular topics with tech audiences. Read about technology singularities and Internet singularities.
A social singularity would be embodied by a convergence of
June 3rd, 2009
Building a vision for Government 2.0
Government 2.0 isn’t waiting for a federal mandate. Earlier this week, the nation’s first ever CIO, Vivek Kundra, urged the use of Web 2.0 approaches to address the needs of government and citizens at the Management of Change conference in Norfolk, Virginia. Kundra outlined several important areas where he believed Web 2.0 can help improve government: connecting with citizens and their ideas (social computing), routing around the horizontal and vertical silos surrounding government data (open APIs), and tapping into the potential savings of low-cost new software applications and processing capabilities (SaaS and cloud computing.)
Among the three areas, Kundra’s perception that citizens were a true peer group in the process of governing seemed to come through clearest:
“We’ve got to recognize that we can’t treat the American people as subjects but as a co-creator of ideas. We need to tap into the vast amounts of knowledge… in communities across the country. The federal government doesn’t have a monopoly on the best ideas.”
That the global, pervasive network known as the Internet can directly connect citizens with their government is obviously an idea well-aligned with Web 2.0 ideas. Not that the vision for something known as Government 2.0 is a new one. It goes back to the very beginning of the Web 2.0 discussion. But with a new administration in place in Washington and a passionate CIO that by all appearances is progressive and understands the modern IT era, the timing seems to be ripe for a remaking of government and perhaps even democracy itself.
Fixing what isn’t broken?
Our democracy is not quite 250 years old and its mechanisms have largely served us very well over the years. That we currently have representative government is for a variety of reasons, not the least of which were that the vast distances in our large country used to make wide-scale direct democracy difficult and that considerable expertise and knowledge were perceived to be required to make important government decisions. The Internet, however, with its ability to make any distance equally close and to let us research virtually anything in real-time, has seemingly erased the need to impose such constraints on how we govern ourselves.
But of course there is more to the story. The state of government today is also still very much a “we the people” vs. them, the government. There is a distance between us and our government, at least for most of us, that is reminiscent of paternal days of old when getting involved, unless it was your local assembly, was something that few people had the ability to do. Government was for people who could join it and make a career of it, and many have indeed dedicated their lives to public service. Now, however, there is the means to enable many, many more to be involved and to potentially create a government that fits us and serves us, in our time, better than it can in its present form.
We should also not forget the classic sayings that “bureaucracies exist to perpetuate themselves” and “power corrupts, and absolute power corrupts absolutely”, which are old chestnuts for a reason. The roots of these concerns occasionally need tending to as well.
In short, events of the last couple of years and vast changes in our modern society seem to urge some essential improvements upon our government, if only we had the means:
Improving Government 1.0
- More transparent and accountable. Too much government information is inaccessible from the citizens that paid to create it. Much more than just raw data or collated statistics, which is increasingly opening up already, its the very deliberations of the government machine; the decision making, who made them and why, as well as the actual actions taken, all of which are often far too closed to the governed, yet affect us so profoundly. Make no doubt about it, like Web 2.0 was to the rest of society, opening up daily activity to the daylight is a sea change and governments around the world, never very comfortable with scrutiny or criticism to begin with, will be seriously challenged in an era where their constituents have as much power as they do to communicate. It’s also true that too often the information that is intentionally kept from coming to light that is the most significant. I’m not talking here about secure or classified information; there is information that simply must be kept highly circumscribed for security reasons (though that too is often overdone). For an example of a move in the right direction, OpenSecrets.org is an excellent example of transparent and accountable government information, while Data.gov is also a good start, but only a start. Globally visible, persistent government activity is the enabler here, and Enterprise 2.0, which will be used much more internally within government at first over the next few years, is part of the answer.
- Less expensive, cumbersome, wasteful, and heavyweight. Our current government is largely a construct of the 20th century, when most of the growth and development of the federal government as well as our state and local governments took place. This is a traditional paperwork and hierarchy-driven system where, despite impressive adoption of Web 1.0 as well as numerous bright spots (some dramatically so), far too many of the cowpaths have merely been paved. The way we run our government must be reinvented for a world that has gone decidedly connected, digital, and is increasingly ready to be directly participatory. Not only can the way we interact with citizens and within government be made enormously better and more lightweight, it could cost dramatically less with the application of new technologies and social structures. And as we saw with the rise of nearly revolutionary open business models 10 years ago on the Web, engaging the greater world on the public network is often the best, easiest, and cheapest way to accomplish things, if only we have the freedom to fundamentally rethink the way we do things today. With the federal budget skyrocketing and no end in sight, dramatic means will be required to cut costs sooner rather than later, and some of the more powerful aspects of 2.0 will likely be the answer.
- Not as impersonal and imprecise. Not many people have a regular, meaningful relationship with their government other than paying their taxes and obeying the law. Most of the time, we are a government statistic instead of what we really are: living, breathing citizens. And while the debate on large vs. small government will probably never be over, a new form of government that is far more direct and personal is coming. The very nature of how citizens can connect with, engage, and gain mutual value from our government is changing because of the Internet. With 2.0, the government’s ability to provide a customized experience to each and every citizen so that the services that are provided, whatever they end up being over time, are exactly what we need, right when we need them, often powered by the rest of us. And mass customization is likely just the beginning; Facebook groups and political online communities began to help us self-organize but the legislation of the future as well as national decisions will increasingly be tailored by us and for us in a form of modern digital gerrymandering to fit us like a glove, potentially overcoming at long last the winner takes all tyranny of traditional democracy. E-mail gave us ability to reach our representatives instantly, but social tools, online community, government tools powered by collective intelligence, and participatory citizenship will change our civic lives a great deal more. In the very near future, for better or worse, our relationship with our government is almost certainly going to be closer, more personal, dynamic, and custom fit.
A quick glance at this list shows that it tends to parallel
April 12th, 2009
Determining the ROI of Enterprise 2.0
Despite recent statistics showing that Enterprise 2.0 tools have spread to about a third of businesses globally, there remain ongoing questions being asked in the enterprise software community about the real returns that they provide to businesses that deploy them.Many IT solutions create value only after traveling through an indirect chain of cause and effect. Certainly blogs, wikis, and social networks are popular on public networks, but does that translate to meaningful bottom line value to organizations? In other words, is Enterprise 2.0 truly strategic in the unique way that information technology can so often be?
This is a key question since actual penetration of these tools is almost certainly lower than the one third figure I mention above. Most organizations today, even the ones where the applications are available to employees currently, are not yet exhorting workers to adopt these tools en masse despite a suite of compelling arguments and a growing set of case studies. Even impressive citations such as the recent TransUnion Enterprise 2.0 case study that claims an eye-opening 50x return on investment (using the most basic ROI formula for calculating returns) are not yet initiating widespread inquiry.
Instead, while we’re seeing widespread interest and acceptance of Enterprise 2.0 in the workplace, there is still mostly a wait-and-see attitude amongst IT managers and business leaders at the moment. The reasons for this seem to fall into three general categories:
One is an broad wariness of a new horizontal information technology approach that purports to solve so many problems and will overlap extensively with existing solutions from e-mail and instant messaging to content/document management and knowledge management systems, to name just a few. Other related concerns are feelings that workers already have a lot of software to use today, that the tools already exist in the organization (see my Enterprise 2.0 and SharePoint discussion a few weeks ago), or that the available tools aren’t fully enterprise-ready yet.
A second set of issues is related to corporate culture and its fundamentally hierarchical nature, which seems anathema to the flattened, highly social nature of Web 2.0 in the enterprise. At this point, it’s becoming increasingly clear that in some tightly controlled, top-down organizations, culture is indeed an impediment to the use of emergent, social computing. Fortunately, there is now enough evidence visible in current case studies that many industries can indeed benefit from Enterprise 2.0.
The last issue is one that has bedeviled software and its strategic application to business since the very beginning, namely the
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
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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