Category: Innovation marketplace
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
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 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
January 13th, 2009
8 Predictions for Enterprise Web 2.0 in 2009
We are starting 2009 off in a particularly inauspicious economic climate, though as we’ll see, important opportunities also exist. 2008 was a very tough year for many businesses and industries and it’s almost as hard to see how things could get worse as it is to understand how things can get better. To survive and thrive, organizations will be looking to make the most of what they already have while gearing up to weather an unknown landscape of challenges this year. These concerns frame up the majority of my Enterprise Web 2.0 predictions for this year, though not all.
I predict a rebuilding year for most organizations, with a few that will use innovative new ideas to break out with major successes.Before we review what’s likely to happen this year, let’s take a quick look at 2008’s predictions:
I led off my list last year with the pronouncement that SOA was becoming lighter weight and more Web-oriented, which was largely borne out. Last summer’s numerous online debates about things like Web-Oriented Architecture and the future of SOA eventually culminated in some bold conclusions by industry leaders such as Anne Thomas Manes who went as far as to declare SOA dead as of a few days ago, being eclipsed by “mashups, BPM, SaaS, Cloud Computing, and all other architectural approaches that depend on ’services’“. It’s clear that SOA isn’t really dead however, but evolving markedly in response to years of experience as well major business and technological changes in the industry.
My predictions for little progress on enterprise search and for growing security concerns around Enterprise Web 2.0 also seemed to do well with many IT leaders expressing frustration in both fronts in my discussions with them throughout the year. The rise of social networking in the enterprise, the adoption of Enterprise 2.0, and the use of mobile applications in business also scored well with numerous surveys and research showing impressive uptake.
Other predictions didn’t fare as well or their outcome is unclear or hard to determine. These include significant early adoption of tools to take the unstructured information in blogs and wikis and mine them, the rise of Microsoft Silverlight in the enterprise (though Adobe AIR seemed to do fairly well), significant early adoption of collective intelligence applications/decision support, and a push by IT for governance budget for Enterprise Web 2.0 systems and applications. I also missed out on predicting the advent of cloud computing, one of the year’s biggest news stories.
Finally, two of last year’s predictions in particular are going to be much bigger in 2009 than in 2008. These are the shake out of Enterprise Web 2.0 vendors and the uptake of enterprise mashups, more on those below.
As for 2009, I predict a rebuilding year for most organizations, with a few that will use innovative new ideas to break out with major successes. With the large network effects that have been built online over the last few years by the major internet players, we will have fewer fast growth businesses in the major categories, but there is still plenty of room for major new products in industry sectors and classes of data that haven’t seen wide penetration online yet. This will also include, as we’ll see, areas that have only partially thrived online traditionally, like real estate and investment banking, that now must be completely transformed and remade, as the downfall of these industries leaves a large vacuum that must be filled by something.
8 Predictions for Enterprise Web 2.0 in 2009
1. Tight budgets will drive the adoption of low-cost Web 2.0 and cloud/SaaS solutions. This seems like an obvious prediction but how it plays out will be very interesting. This could end up actually helping the smaller Enterprise Web 2.0 players as companies look to get away from the big-ticket, enterprise-class offerings from major vendors like IBM, Oracle, and others. But in reality, once enterprises make the decision to move to platforms for wikis, enterprise mashups, cloud services, SaaS enterprise apps, and so on, they may find the one-stop shop of pre-integrated solutions from entrenched software providers more than they can resist. Make no mistake, however, IT shops and businesses alike will be looking to cut costs and I expect a lot of IT and business downsizing to happen in a surge of “Economics 2.0″.
2. Online community and 2.0 technologies become a priority for most organizations. The early data from our IT and Business Outlook Survey for 2009 shows these two areas as
December 4th, 2008
The emerging case for open business methods
The Internet has been the genesis of countless useful business innovations over the last several decades. These include a globally unified e-mail network, the advent of search engines, the rise of rich user experiences and SaaS, and most recently cloud computing to name but a few. But perhaps one of the most far-reaching innovations was the Internet’s ability to enable the creation and organization of the open source movement, arguably the most important progenitor to most things 2.0 and perhaps eventually to business in general.
The business world of the next decade will look quite different from today and require different values and management styles to match.While open source itself is mostly closely associated with the creation of free software in the Internet age, the associated concepts of open collaboration and open information sharing has roots in the early scientific community, where the (mostly) transparent sharing of ideas and data was the most effective way to enable progress. Related trends such as open data and the Web 2.0 model of open content reflect the now widespread activity of open information sharing and exchange using primarily a commons-based approach, enabled greatly by pervasive world-wide networks such as the Internet.
Given the current size of the Internet, about 1.2 billion people, tapping into and unleashing the enormous productive capacity and latent knowledge at the edge of the network has become one of the most powerful and underutilized economic resources available to businesses today. Accessing this effectively ahead of the competition has been the explicit (though too often unstated) premise of countless Internet startups. It’s turned out that companies with a native “Web DNA” have the best perspective to see the fundamental potential here better than their traditional business counterparts. Most businesses still look at the network mostly as a secondary channel for activities such as value inputs, customer relationships, and worker communication and collaboration and not the most valuable one. This is primarily because they’ve traditionally had more dominant and important channels.
But this is starting to change. Through continuous and very widespread experimentation and endeavor, open models of communication, information, and even the creation of products and services, have emerged as a proven and highly effective way to directly drive business activity in entirely new and powerful ways. It’s largely thanks to things like open standards, open source, and open content (aka user generated content and peer production) which have tremendously challenged and even up-ended the old world models of proprietary formats, commercial software, and traditional media respectively.
All this might seem a familiar story but these methods, still too pent-up in a world of high technology and Internet businesses, have begun to spread beyond their origins in software and content and become an significant avenue of opportunity across all aspects of business, albeit involving both great rewards and significant challenges. Particularly in these trying economic times, open models have begun providing the crucial, raw ingredients for a fresh, new perspective in the way we look at how we operate our businesses.
Enterprise 2.0 is just one good example of the emerging intersection of many of these open trends combining open collaboration where anyone can collaborate with globally visible information sharing. It’s also one of the most immediately appealing models to most businesses since it doesn’t necessarily entail many of the risks and challenges that more external modes of open engagement would require. In other words, businesses today are generally comfortable with achieving objectives with the assistance of 3rd parties in an outsourcing or partnership model, but they are generally not as comfortable with using open sourcing or crowdsourcing to achieve the same objectives.
The reasons organizations are wary of more open and 2.0 models for sourcing work and information are many and varied but it generally boils down to four reasons:
- Lack of familiarity. Despite the extensive body of knowledge that has accumulated, particularly in the software and media industries, there is a broad lack of understanding of how open models work for those whose line of business lies outside the technology industry. These include how to start and successfully manage open business methods as well as the various governance, legal, and brand issues that open models involve, to name just a few. While many businesses are in fact evolving and expanding their Internet channel, most executives are not yet tracking how these open methods can potentially generate much greater value for less cost across their organization, something that most businesses would find very attractive right now.
- Poor evidence in their industry. Most organizations are medium-to-slow adopters or fast followers, not
October 22nd, 2007
The state of Enterprise 2.0
Industry analysts, CIOs, and business leaders around the world are continuing to try to read the industry tea leaves in 2007 when it comes to the subject of Enterprise 2.0, the increasingly popular discussion of using Web 2.0 platforms in the workplace. The primary topic of interest? Whether Enterprise 2.0 brings real bang for the buck by making the daily work of organizations measurably more productive, efficient, and innovative. Investors and executives are just not going to make significant bets on Enterprise 2.0 in terms of resources and risk exposure without good information on the likely returns of implementation.
The increasing pervasiveness of the tools and awareness of Enterprise 2.0 will continue to have a growing impact on our businesses for better and worse.Up until recently, the lack of mature Enterprise 2.0 products, good case studies, and feedback from early experiences that successfully dealt with some of the challenges that these frequently disruptive and occasionally subversive tools introduced. This immature state of affairs was often holding back even corporate pilots of highly promising candidate Enterprise 2.0 technologies such as enterprise blogs, wikis, and even mashups.
However, increasing evidence abounds that Enterprise 2.0 adoption has begun in earnest with a typical example being Wells Fargo taking the plunge, having rolled out Enterprise 2.0 platforms to 160,000 workers. It has become clear that we’re moving out of the early pioneer phase to a broader acceptance phase. From the production side, a brand new analysis indicates that the business social software market will be nearly $1 billion strong this year and over $3.3 billion by 2011. In these and other ways, such as the growing collection of success stories, Enterprise 2.0 has arrived.
The big question for many of those on the fence now is: 1) Do we now have the right capabilities in terms of ready Enterprise 2.0 products? And 2) Do we generally understand how to apply them properly to obtain good returns on our investment in them? Knowing the answers to both questions will almost certainly tell us if we’re ready for mainstream adoption of adoption of Enterprise 2.0 any time soon.
Enterprise 2.0 redux
Professor Andrew McAfee of Harvard Business School famously introduced the term and concepts behind Enterprise 2.0 last year and it’s had a heady ride across the industry and in the press ever since. Initially defined by McAfee as “the use of emergent social software platforms within companies, or between companies and their partners or customers”, the broader global community has attempt to expand, reinvent, and co-opt Enterprise 2.0 with varying degrees of success. But the essential, core meaning has largely stayed the same: Social applications that are optional to use, free of unnecessary structure, highly egalitarian, and support many forms of data.
McAfee even coined a mnemonic to make it easy for everyone to remember what appeared to be the key aspects of these social platforms. Called SLATES, it was an easy checklist to verify that the tools you were considering had the right essential ingredients. Under this initial definition Web 2.0 poster children blogs and wikis were identified as Enterprise 2.0 platforms (provided that they provided reasonable support for SLATES) as well as more sophisticated tools such as prediction markets and even vertical business applications like customer directed taxi cab dispatching were given as early examples of richer Enterprise 2.0 applications.
What platforms failed to make the cut as Enterprise 2.0 because they didn’t have the qualities that were believed to be important for better business outcomes? These included most corporate intranets and portals, most groupware, as well as e-mail and “classic” instant messaging. Why? They either didn’t provide access to a voice for workers to communicate and collaborate with or they didn’t create results that were persistent and globally visible. In the end, Enterprise 2.0 takes most of the potent ideas of Web 2.0, user generated content, peer production, and moves them into the workplace.
Did the original articulation of Enterprise 2.0 have the right Read the rest of this entry »
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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