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Enterprise 2.0
Chance or Fool's Paradise for Business
Transformation in Economic Crisis
Dion Hinchcliffe
social
computing
business
value
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
• 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
Bottom
Up
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 2.0
Projects 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
online
community
cloud computing
mashups
open APIs
SaaS
Enterprise 2.0 &
Open Business Models
2.0
development
platforms
(social media
in the
enterprise)
Product Development 2.0
1st Wave:
Information Explosion
2nd Wave:
Information Filters
3rd Wave:
Information Shadows
Most
Of Us
Are Here
consumer blogs/wikis
Enterprise 2.0?
social networks
Is Enterprise 2.0 Still In The
Adoption Chasm?
Enterprise 2.0 Summit 2009 Closing Keynote by Dion Hinchcliffe
• 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 for
Enterprise 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
Value
ROI
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
Software Know-How
Feature Selection
Priority & Schedule
Management
Documentation
Incorporation of
Experience
Outreach
Events
Incentives
Issue Management
Networking
Identification of Best
Practices
Attend Trade Events
Brand Support
Situation Management
Listen/Join Conversation
Marketing Analysis
Impact Reporting
Ad Rotation
Team Building
Staff Training
Budgeting
Goal Definition
Business Alignment
Control/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 & Incentives
Content
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
Bottom
Up
Anatomy of an Enterprise
Social Computing Effort
Cultural Change
Reactive Response
Cost 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
Questions
Slides:
dion@hinchcliffeandco.com
Pragmatic Enterprise 2.0
tm
Effective Low Risk Social Computing
Introducing
Pragmatic Enterprise 2.0
The Power of Social
Business
Minus
The
Downsides
Exclusively from Hinchcliffe & Company and Partners
October 20th, 2009
See Also

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Enterprise 2.0 Summit 2009 Closing Keynote by Dion Hinchcliffe

  • 1. Enterprise 2.0 Chance or Fool's Paradise for Business Transformation in Economic Crisis Dion Hinchcliffe social computing business value
  • 2. 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
  • 3. • 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
  • 4. 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?
  • 5. 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
  • 6. Top Down Internal Knowledge ‘-Pedias’ Social CRM Bottom Up 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 2.0 Projects They Surveyed Originally Started As a Grassroots Effort
  • 7. 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
  • 8. Avoiding “cargo cults” • Cargo Cult n. A group conducting rituals imitating behavior that they have observed among the holders of desired objects.
  • 9. 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.
  • 10. The challenges • Cultural “chasms” • Disruption • Cost • Risk • Difficulty • Repeatability • Adding a social context
  • 11. The biggest challenge is in changing our thinking However, it’s usually a people problem:
  • 12. Where business and IT change is happening now... Product Development Marketing Sales Operations | IT | Back Office Line of Business Customer Service crowdsourcing online community cloud computing mashups open APIs SaaS Enterprise 2.0 & Open Business Models 2.0 development platforms (social media in the enterprise) Product Development 2.0
  • 13. 1st Wave: Information Explosion 2nd Wave: Information Filters 3rd Wave: Information Shadows Most Of Us Are Here
  • 14. consumer blogs/wikis Enterprise 2.0? social networks Is Enterprise 2.0 Still In The Adoption Chasm?
  • 16. • 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
  • 17. •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
  • 19. 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
  • 20. 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
  • 21. Investment On The Rise Source: 2.0 Adoption Council 2009 Project Budget for Enterprise 2.0 Efforts
  • 22. 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%)
  • 24. What are the benefits of Enterprise 2.0?
  • 25. 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
  • 26. How Can We Adopt Enterprise 2.0 Most Effectively? E2.0 Value ROI
  • 27. 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
  • 29. Ross Dawson’s Enterprise 2.0 Implementation Framework
  • 30. Adoption Success Factor #1 Engage Your Community and Enlist Support From It The 90/10 rule
  • 31. 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.)
  • 32. Adoption Success Factor #3 Get Active Participation From Senior Management Proactive Change Leadership
  • 33. Adoption Success Factor #4 Clear Usage Policy and Lowest Possible Barriers to Use Guidance and low complexity
  • 34. Adoption Success Factor #5 Support And Manage The Community Change Management & Community Management
  • 35. Online Community Management Software Know-How Feature Selection Priority & Schedule Management Documentation Incorporation of Experience Outreach Events Incentives Issue Management Networking Identification of Best Practices Attend Trade Events Brand Support Situation Management Listen/Join Conversation Marketing Analysis Impact Reporting Ad Rotation Team Building Staff Training Budgeting Goal Definition Business Alignment Control/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 & Incentives Content Management Research & Insight Capture Brand Feedback Content “Gardening”
  • 36. 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”
  • 37. 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 Bottom Up Anatomy of an Enterprise Social Computing Effort Cultural Change Reactive Response Cost Cutting Viral Adoption
  • 38. 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
  • 40. Pragmatic Enterprise 2.0 tm Effective Low Risk Social Computing Introducing Pragmatic Enterprise 2.0 The Power of Social Business Minus The Downsides Exclusively from Hinchcliffe & Company and Partners October 20th, 2009 See Also