Enterprise 2.0 Summit 2009 Closing Keynote by Dion Hinchcliffe

Enterprise 2.0 social computing business value Chance or Fool's Paradise for Business Transformation in Economic Crisis Dion Hinchcliffe

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:dion@hinchcliffeandco.com • Web 2.0 University • http://web20university.com • : @dhinchcliffe

The E2.0 Backstory • 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 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 Innovation Creating new rapid Growth Leveraging Innovation growth online products • Product Incubators powered by: • Open Supply Chains • Peer Production • Product Development 2.0 • Jakob’s Law • Some Rights Reserved • The Long Tail • Blue Ocean • Network Reinventing the Fostering Effects customer relationship Innovation to drive revenue: • Internal Innovation Markets • Customer Communities • Open innovation • Customer Self-Service • Database of Intentions • Marketing 2.0 Current Business State Driving costs down through Change Management • Transformation Communities less expensive, better 2.0 • 2.0 Education solutions: • Capability • Lightweight IT/SOA Acquisition • Enterprise mashups Improving • Expertise Location Business Remodeling productivity and • Knowledge Retention and Restructuring access to value: • BPM 2.0 • Enterprise 2.0 • Employee Communities • Open APIs • Cloudsourcing • Crowdsourcing • Pull Systems • Prediction Markets Transformation Cost Reduction

Types of Enterprise 2.0 Business Social Media Marketing “Ofﬁcial” Customer Communities Social CRM Lesson Learned: Top Enterprise Social Networks Social Portals & Intranets Jakob Nielsen Reported Down That Many of The Reconciliation & Maturity Successful Enterprise 2.0 Bottom Up Departmental Wikis Projects They Surveyed Internal Knowledge ‘-Pedias’ “Guerrilla” Customer Communities Originally Started As a Off-Premises Social Networks Grassroots Effort Workers

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

However, it’s usually a people problem: The biggest challenge is in changing our thinking

Where business and IT change is happening now... (social media in the enterprise) Enterprise 2.0 & Product Development 2.0 Open Business Models Product Development Marketing Sales crowdsourcing online Customer Service cloud computing community mashups open APIs Line of Business SaaS 2.0 development Operations | IT | Back Ofﬁce platforms

Most 1st Wave: Of Us Are Here Information Explosion 2nd Wave: Information Filters 3rd Wave: Information Shadows

Is Enterprise 2.0 Still In The Adoption Chasm? consumer blogs/wikis social networks Enterprise 2.0?

• 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 Unstated Challenges The

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 2009 Project Budget for Enterprise 2.0 Efforts Source: 2.0 Adoption Council

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 Competitive Advantage Knowledge Retention Modern Workplace Information Discovery More Transparency Business Agility Less Duplication Cross-Pollination Better Communication Fostering Innovation Cost Reduction

E2.0 ROI Value How Can We Adopt Enterprise 2.0 Most Effectively?

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 Content And 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 Active Participation 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 Manage The Community Change Management & Community Management

Online Community Management Brand Support Brand Management Situation Management Upgrades and Improvements Capture Brand Feedback Software Know-How Advertising & Listen/Join Conversation Feature Selection Platform Management Marketing Marketing Analysis Priority & Schedule Impact Reporting Management Ad Rotation Documentation Project Management Staff Development Recruiting Incorporation of Team Building Experience Product Management Staff Training Product Selection Business Planning Budgeting Outreach Goal Deﬁnition Events Customer Management Business Alignment Incentives Community Control/Management Issue Management Management Moderation & Rule Networking Enforcement Professional Development Elicit Participation Identiﬁcation of Best Content Practices Rewards & Incentives Management Attend Trade Events Content Plan Research & Insight 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 Anatomy of an Enterprise Enterprise Vision Social Computing Effort Corporate Initiative Reactive Response Business Needs & Requirements Exploiting Ad Hoc Opportunities Cost Cutting Project Management Top Tools & Infrastructure Access, Search, & Discoverability Down Security & Identity Delivery Models Communication Plan Content Management Knowledge Management Business Intelligence Up Bottom Community Management & Support Processes Social Computing Strategy, Architecture, Policy, and Governance Viral Adoption Cultural Change Social Computing Patterns and Risk Management & Change Local Problem Solving Best Practices Management

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

Questions Slides: dion@hinchcliffeandco.com

tm Pragmatic Enterprise 2.0 Effective Low Risk Social Computing See Also The Power of Social Business Minus The Downsides October 20th, 2009 Introducing Pragmatic Enterprise 2.0 Exclusively from Hinchcliffe & Company and Partners

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Enterprise 2.0 Summit 2009 Closing Keynote by Dion Hinchcliffe

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