The deck I used today for the closing keynote for the Enterprise 2.0 SUMMIT in Frankfurt on November 12th, 2009.

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

18. The
The Unstated Challenges

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%)

23. Distributed Value

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

28. Deloitte’s ECM
Process

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

39. Questions
Slides:
dion@hinchcliffeandco.com

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