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The deck I used today for the closing keynote for the Enterprise 2.0 SUMMIT in Frankfurt on November 12th, 2009.
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Enterprise 2.0
Chance or Fool's Paradise for Business Transformation in Economic Crisis
Dion Hinchcliffe
socialcomputing
businessvalue
Introduction
Dion Hinchcliffe• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• Social Computing Journal – Editor-in-Chief• http://socialcomputingjournal.com
• ebizQ’s Next-Generation Enterprises• http://www.ebizq.net/blogs/enterprise
• Hinchcliffe & Company• http://hinchcliffeandco.com
• mailto:[email protected]
• Web 2.0 University• http://web20university.com
• : @dhinchcliffe
• New economic, cultural, and business models have emerged on the world stage
• Using social Web technologies
• Creating new forms of resilient and sustainable business activities and processes
• Driven by change on the global network and rising bottom up in many organizations today
• But the external world driving how businesses work is often an uncomfortable subject
The E2.0 Backstory
The Big Questions• How can we adopt Enterprise 2.0 most
effectively?
• What have we learned so far about the benefits?
• How do we get the upsides without potential downsides?
• Can we identify best practices or are organizations too different to do this?
• Where is E2.0 going?
The Map of Opportunity
Creating new rapid growth online products powered by:• Peer Production• Jakob’s Law • The Long Tail• Blue Ocean• Network
Effects
Reinventing the customer relationship to drive revenue:
• Customer Communities• Customer Self-Service• Marketing 2.0
Driving costs down through less expensive, better 2.0 solutions:
•Lightweight IT/SOA•Enterprise mashups•Expertise Location•Knowledge Retention
Improving productivity and access to value:
•Enterprise 2.0•Open APIs•Crowdsourcing•Prediction Markets
Business Remodeling and Restructuring
•BPM 2.0•Employee Communities•Cloudsourcing•Pull Systems
Change Management•Transformation Communities•2.0 Education•Capability
Acquisition
Fostering Innovation
•Internal Innovation Markets•Open innovation•Database of Intentions
Leveraging Innovation•Product Incubators•Open Supply Chains•Product Development 2.0•Some Rights Reserved
Innovation
Transformation Cost Reduction
Growth
Current Business
State
Top Down
Internal Knowledge ‘-Pedias’
Social CRM
BottomUp
Social Media Marketing“Official” Customer Communities
Social Portals & Intranets
“Guerrilla” Customer Communities
Enterprise Social Networks
Departmental Wikis
Reconciliation & Maturity
Business
Workers
Off-Premises Social Networks
Types of Enterprise 2.0
Lesson Learned:Jakob Nielsen Reported
That Many of The Successful Enterprise 2.0Projects They Surveyed Originally Started As a
Grassroots Effort
The major shifts
• In who creates value (the network does)
• How much control we have over our businesses
• How intellectual property works
• Great increases in transparency and openness
• Open supply chains, community-based processes and relationships
Avoiding “cargo cults”
• Cargo Cult n. A group conducting rituals imitating behavior that they have observed among the holders of desired objects.
An evolution in collaboration
• The motivation:
• Cheaper: Less waste, more efficient, and lighter weight.
• Better: Faster, richer, and other intrinsic improvements.
• Innovative: New ways of solving problems, different strategies for reaching business outcomes. A future.
The challenges
• Cultural “chasms”
• Disruption
• Cost
• Risk
• Difficulty
• Repeatability
• Adding a social context
The biggest challenge is in changing our thinking
However, it’s usually a people problem:
Where business and IT change is happening now...
Product Development
Marketing
Sales
Operations | IT | Back Office
Line of Business
Customer Service
crowdsourcing
onlinecommunity
cloud computingmashups
open APIsSaaS
Enterprise 2.0 &Open Business Models
2.0development
platforms
(social media in the
enterprise)
Product Development 2.0
1st Wave: Information Explosion
2nd Wave: Information Filters
3rd Wave: Information Shadows
MostOf Us
Are Here
consumer blogs/wikis
Enterprise 2.0?
social networks
Is Enterprise 2.0 Still In TheAdoption Chasm?
• Lessons learned accumulating into early best practices• A growing increasing body of knowledge on how to
create network-based communities in the workplace
• Top issues this year with Enterprise 2.0:
• Community management• Social media guidelines for workers• Change management methods• Driving adoption• Measurement of outcomes
• But it’s just a beginning, we have years to go
• A rapidly maturing vendor space• All of the big software vendors are now talking
about or actively offering Enterprise 2.0 products
• Dozens of startups now have Enterprise 2.0 products that offer most of the key capabilities required to be worthy of the name
• Older products are also being adapted, retrofitted, and/or relabelled
The
The Unstated Challenges
Other Common Enterprise 2.0 Challenges
• Selecting tools first
• Achieving critical mass (self-sustaining participation)
• Turf wars with information owners
• IT implementation schedules
• Underbudgeting for community management
• Engaging business too early/too late
• Boiling the ocean and not achieving early wins
• Creating a generic toolbox vs. solution to specific problems
Emerging Developments
• The economic downturn
• The rise of social messaging (ala Twitter)
• “SharePoint Ate My Enterprise 2.0 Implementation”
• Major vendors have entered the space: IBM, Oracle but especially Google
Investment On The Rise
Source: 2.0 Adoption Council
2009 Project Budget forEnterprise 2.0 Efforts
Determining the ROI of Enterprise 2.0
• Project costs tend to be lower than classical IT efforts (Example: Transunion, $50K to reap $2M+)
• ROI is richer and more complex, but hard to determine. Often not tied to fixed business processes.
• Most organizations are unwilling to do the measurement during the pilot
• Simple models are most credible (i.e. reduce overhead of collaboration by 20%)
Distributed Value
What are the benefits of Enterprise 2.0?
Potential E2.0 Benefits
Productivity
Knowledge Retention
Information Discovery
Business Agility
Cross-Pollination
Fostering Innovation
Competitive Advantage
Modern Workplace
More Transparency
Less Duplication
Better Communication
Cost Reduction
How Can We Adopt Enterprise 2.0 Most
Effectively?
E2.0
ValueROI
Key E2.0 Aspects
• Does your E2.0 approach?
• Embody waterfall or agile (iterative)? (Latter is better)
• Encourage the key aspects and enablers of Enterprise 2.0 (FLATNESSES)
• Focus on the lifecycle and community management issues beyond rollout
• Manage risk and concerns
• Put culture change and adoption issues on (at least) the same level of importance as tools and technologies
Deloitte’s ECM Process
Ross Dawson’s Enterprise 2.0 Implementation Framework
Adoption Success Factor #1
Engage Your Community and Enlist Support From It
The 90/10 rule
Adoption Success Factor #2
Seed/Migrate ContentAnd Use The Community To Build Critical Mass
Create a strong network effect(Overcome the optional aspect
of the E2.0 environment.)
Adoption Success Factor #3
Get ActiveParticipation From Senior Management
Proactive Change Leadership
Adoption Success Factor #4
Clear Usage Policy and Lowest Possible Barriers to Use
Guidance and low complexity
Adoption Success Factor #5
Support And ManageThe Community
Change Management & Community Management
Online Community Management
Software Know-How
Feature Selection
Priority & ScheduleManagementDocumentation
Incorporation of Experience
OutreachEvents
IncentivesIssue Management
Networking
Identification of Best Practices
Attend Trade Events
Brand SupportSituation Management
Listen/Join Conversation
Marketing AnalysisImpact Reporting
Ad Rotation
Team Building
Staff Training
BudgetingGoal Definition
Business AlignmentControl/Management
Moderation & Rule Enforcement
Elicit Participation
Content Plan
Platform Management
Project Management
Product Management
Upgrades and Improvements
Customer Management
Product Selection
Professional Development
Brand Management
Advertising & Marketing
Staff Development Recruiting
Business Planning
Community Management
Rewards & IncentivesContent
Management
Research & Insight
Capture Brand Feedback
Content “Gardening”
Other important success factors
• Proactively educate and communicate
• Demonstrate a clear plan to mitigate risks
• Keep getting better about user and data security
• Don’t be afraid to switch tools, but if you must, do it earlier rather than later
• Good search is a pre-requisite for ROI
• Have the discipline to measure what you do
• Find ways to combine E2.0 “silos”
What it all looks like
Risk Management & Change Management
Social Computing Patterns and Best Practices
Top Down
Social Computing Strategy, Architecture, Policy, and Governance
Enterprise Vision
Local Problem Solving
Corporate Initiative
Community Management & Support Processes
Content Management
Tools & Infrastructure
Project Management
Knowledge Management Business Intelligence
Delivery Models Communication Plan
Access, Search, & Discoverability
Business Needs & Requirements Exploiting Ad Hoc Opportunities
Security & Identity
BottomUp
Anatomy of an Enterprise Social Computing Effort
Cultural Change
Reactive ResponseCost Cutting
Viral Adoption
What’s Next?
• The trough of disillusionment
• More mature frameworks and approaches
• New modes of operation (Google Wave-style)
• Less treatment of Enterprise 2.0 in tech and business isolation (ECM, DMS, BPM, UC/UM)
• The next frontier: Going beyond the firewall
• Deep ROI: Business intelligence from internal social economies
Pragmatic Enterprise 2.0tm
Effective Low Risk Social Computing
IntroducingPragmatic Enterprise 2.0
The Power of Social Business
MinusThe
Downsides
Exclusively from Hinchcliffe & Company and Partners
October 20th, 2009
See Also
