The document discusses the future of enterprise technology and the transition from Enterprise 1.0 systems to Enterprise 2.0. It notes that Enterprise 1.0 systems like ERP do not capture tacit knowledge, while Emergent Social Software Platforms of Enterprise 2.0 allow for collaborative knowledge discovery. It outlines some differences between Enterprise 1.0 and Enterprise 2.0, such as split vs emergent knowledge and intimidating vs social approaches. The document also discusses elements of an IT operating model for Enterprise 2.0, including processes, governance, services, measurement and organization. Finally, it raises questions about an organization's readiness for Enterprise 2.0 and the potential risks around disruption and changes to culture.

1. SAARC CIO Conference, Dhaka, Bangladesh
September 26-27, 2010
ENTERPRISE TECHNOLOGY – WHAT LIES IN
THE FUTURE?
- Subrato Das, CIO

2. ENTERPRISE 1.0 SYSTEMS DO NOT
CAPTURE: TACIT KNOWLEDGE
Companies have spent a fortune during the last
decades implementing business critical Enterprise
wide systems such as ERP, CRM, SCM or PDM
but these systems have strict boundaries.
2

3. HOW DOES THE ‘EMERGENT SOCIAL SOFTWARE
PLATFORMS (ESSP)’ FIT ALONGSIDE THE ALREADY
EXISTING ENTERPRISE IT SYSTEMS WITHOUT
CAUSING ANY RISK FOR THE BALANCE OF THE
WHOLE COMPANY IT STRATEGY ?
3

4. ENTERPRISE 1.0 VS ENTERPRISE 2.0
Enterprise 1.0
Split knowledge
Engineering Approach
on OLTP implementation
Intimidating KM policy
Knowledge leaks and
productivity issues
Enterprise 2.0
Emergent
Gardener’s tool for
‘feeding and weeding’
Social
Collaborative Platform for
knowledge discovery
4

5. ENTERPRISE 2.0 KNOWLEDGE CAPTURE IS
MORE EFFICIENT THAN ENTERPRISE 1.0
It is easier and less intimidating for knowledge
workers to capture knowledge on collaborative
platforms (wiki, blogs, forums etc …) then on
word documents and then knowledge
management (KM) systems.management (KM) systems.
Collaborative platforms offer a single entry point
from the same application (web browser) to a set
of tools and application where information has
been captured.
5

6. ENTERPRISE 2.0 SYSTEMS
ESSP are open systems whose usage may evolve
as per user needs and to adapt themselves to the
usages of the knowledge workers.
ESSP make it easy to build communities which,
in the enterprise context, are built around
ESSP make it easy to build communities which,
in the enterprise context, are built around
common areas of knowledge, business expertise,
and professional know-how. These communities
juxtapose different types of experts (technical,
marketing, sale, integration) on a specific
domain. This allows to build multi-dimensional
expertise in very confined and otherwise
unreachable locations in the company activity
and knowledge map.
6

7. ENTERPRISE 2.0
To leverage collaborative platforms to foster
Knowledge
Productivity
Innovation
Engagement
It’s not a question on underlying technologiesIt’s not a question on underlying technologies
but to discover:
We know a subject ourselves, OR
We know where we can find information upon it!
“If HP knew what HP knows, we would be three times
more profitable” - Lew Platt, Former CEO of HP 7

8. EXPLORING IT OPERATING MODEL FOR
ENT 2.0
A business operating model is:
• the basic framework that a company follows to
get its products or services into the hands of
consumers.
If we translate this to the IT space, we could
say that –
an IT operating model is the basic framework of an IT
organization follows to get its products and services
into the hands of its consumers and customers. 8

9. IT OPERATING MODEL FOR ENT 2.0
9

10. WAYS OF DESIGNING AND EXECUTING AN
IT OPERATING MODEL
Functionality: SLATES forms the basic
framework of Enterprise 2.0
Search: allowing users to search for other users or
content
Links: grouping similar users or content together into
a meaningful information ecosystema meaningful information ecosystem
Authoring: ability to create and update content leads
to the collaborative work of many including blogs and
wikis
Tags: allowing users to categorize the content to
facilitate searching, without dependence on pre-made
categories. Collections of tags created by many users
within a single system may be referred to as
"folksonomies” (i.e. folk taxonomies) 10

11. WAYS OF DESIGNING AND EXECUTING AN
IT OPERATING MODEL …..
Extensions: recommendations of users or content
based on profile. Software that makes the Web
an application platform as well as a document
server
Signals: use of syndication technology such asSignals: use of syndication technology such as
RSS feeds to notify users of content changes
o [Ref: McAfee, Andrew, P. "Enterprise 2.0: The Dawn of Emergent
Collaboration" (MIT Sloan Management Review), Spring 2006,
Vol.47, No.3]
11

12. WAYS OF DESIGNING AND EXECUTING AN
IT OPERATING MODEL …..
In 2007, Dion Hinchcliffe expanded the list above by
adding the following four functions:
Freeform function: no barriers to authorship
(meaning free from a learning curve or from
restrictions)restrictions)
Network-oriented function: requiring web-
addressable content in all cases
Social function: stressing transparency (to access),
diversity (in content and community members) and
openness (to structure)
Emergence function: requiring the provision of
approaches that detect and leverage the collective
wisdom of the community 12

13. WHILE SLATES FORMS THE BASIC FRAMEWORK
OF ENTERPRISE 2.0, IT DOES NOT CONTRADICT ALL
OF THE HIGHER LEVEL WEB 2.0 DESIGN PATTERNS
AND BUSINESS MODELS
13

14. WAYS OF DESIGNING AND EXECUTING AN IT
OPERATING MODEL IN A WEB 2.0 CONTEXT
Web 2.0 draws together the capabilities of client
and server side software, content syndication and
the use of network protocols.
Standards-oriented web browsers may use plug-
ins and software extensions to handle the contentins and software extensions to handle the content
and the user interactions.
Web 2.0 sites provide users with information
storage, creation, and dissemination capabilities
that were not possible in the environment now
known as ‘Web 1.0’
Flickr, a Web 2.0 web site that allows its users to
upload and share photos. 14

15. TYPICAL SCREENSHOT OF
15

16. ELEMENTS OF AN IT OPERATING MODEL
FOR ENT 2.0
16

17. PRIMARY ELEMENTS OF AN IT OPERATING
MODEL FOR ENT 2.0 :
Processes – how do we perform activities that
deliver predictable and repeatable business results
through competent people using the right tools.
Governance – how do we make and sustain
important decisions about IT.
Sourcing – how do we select and manage the
sourcing of our IT products and services.
Services – our portfolio of IT products and services.
Measurement – how do we measure and monitor our
performance.
Organization – how do we structure and organize
our IT capabilities. 17

18. 1. PROCESSES
how do we perform activities that deliver
predictable and repeatable business results
through competent people using the right
tools. e.g.
i) how do we shape demand?
ii) how do we surface and clarify demand?
iii) how do we turn demand into solutions that deliver
the intended (or better) business results?
iv) how do we continuously improve the way we do IT
work? 18

19. 2. GOVERNANCE
how do we make and sustain important decisions
about IT. e.g.
i) how do business needs and initiatives get
prioritized?prioritized?
ii) how do we manage the tensions between local
and global optimization?
iii) how are ‘standards’ chosen and what are the
consequences for deviations?
iv) how do we govern major business programs?
19

20. 3. SOURCING
how do we select and manage the sourcing of our
IT products and services. e.g.
i) how do we leverage our scale?
ii) what do we offshore, near shore, onshore, inii) what do we offshore, near shore, onshore, in
house, in source, contract?
iii) how do we manage key vendors?
20

21. 4. SERVICES
our portfolio of IT products and services. e.g.
i) what is in our service catalog (ITIL)?
ii) how do we define and manage service levelsii) how do we define and manage service levels
(SLA)?
iii) do we offer differentiated services by customer
segment?
21

22. 5. MEASUREMENT
how do we measure and monitor our
performance. e.g.
i) what are the shared goals of the IT organization?
ii) how does the business determine value realizedii) how does the business determine value realized
and delivered through IT investments?
iii) how are we improving over time?
iv) what are our leading indicators of performance
and trends?
v) what customer experience are we creating for users
of our products and services? 22

23. ALIGNING BUSINESS VISION WITH IT KPIS
23

24. ALIGNING DEPARTMENT KRAS WITH IT
KPIS
Dept.
1
Dept.
2
Dept.
3
KRA KRA
KRA
24
KRA
KRA KRA
KRA KRA
KRA
KRA
KRA KRA

25. 6. ORGANIZATION
how do we structure and organize our IT
capabilities. e.g.
i) what capabilities should be located within the IT
organization and what can be within theorganization and what can be within the
business?
ii) how do we organize around major projects and
programs?
iii) how do we organize around major products and
platforms?
25

26. ENT 2.0 IS NOT JUST ABOUT USE OF
WEB 2.0 TOOLS
collaborative approaches
to follow agile development like iterative methods
delivering value sooner
organizational and cultural change
engaging the stakeholders into end-to-endengaging the stakeholders into end-to-end
process management including their design, use
and improvement
‘design for implementation’ approach – helping
eliminate design flaws up front, and to iron out
kinks faster
26

27. COLLABORATIVE PROCESS FOR ENT 2.0
27

28. IMPLICATIONS OF IT GOVERNANCE FOR
ENT 2.0
IT governance deals with how the business makes
decisions about the deployment and delivery of IT
aligning IT decision making with enterprise
governance and business unit objectives through
an interrelated set of processes, policies and
decision-making structures
o with clear goals, roles and functions
o sponsored by the CEO
o with clear consequences for compliance or lack
thereof
IT governance is about the specification of decision
rights and responsibilities required to ensure
effective and efficient use of IT in an Enterprise. 28

29. FIVE DECISION DOMAINS OF IT
GOVERNANCE FOR ENT 2.0
IT Principles: strategic choices between competing
perspectives. e.g. should we optimize IT investments for
the enterprise rather than for individual business units?
IT Architecture: the organizing logic for data,
applications, and infrastructure captured in a set of
policies, relationships and technical choices.
IT Infrastructure: centrally coordinated, shared ITIT Infrastructure: centrally coordinated, shared IT
services that provide the foundation for the enterprise’s
IT capability.
IT Investments and Prioritization: how much and
where to invest in IT, including project approvals and
justification techniques.
Business Application Needs: specifying the business
need for purchased or internally developed IT
applications (in-sourcing vs. out-sourcing).
29

30. IT GOVERNANCE 2.0
On the one hand, with ‘transparency’ a watchword of
good governance capabilities offer several important
mechanisms to bring transparency
o to the design of effective IT governance processes
and structures,
o and to their ongoing execution and management.
On the other hand, dealing with decision rights and
accountabilities in the types of highly diverse,
distributed and fluid information environment
enabled by social networking tools can become quite
complex.
Hence, we need to strike a Balance!!
30

31. R U READY TO INTRODUCE ENT 2.0 IN
YOUR ORGANIZATION ?
1. Your company is NOT comfortable with
innovation.
Managers and employees alike have been doing the
same routine job for the last ten years, they don’t
want any innovation to emerge and disrupt the nice
and quiet day-to-day work in real life business.and quiet day-to-day work in real life business.
2. It is business critical to foster politics.
Your company loves it when people in the hierarchy
feels they are powerful. This is the raison d’être of
your enterprise. They have dedicated parking
spaces, business card for travels, dedicated
secretary, guaranteed pay rise and many other
advantages. 31

32. R U READY TO INTRODUCE ENT 2.0 IN
YOUR ORGANIZATION ? …..
3. Strong managers are pivotal in the
organization.
Managers make sure any bottom-up or top down
information go through them so they can filter and
make sure they stay in control. A proof of how
important they are : they spend 20% of their timeimportant they are : they spend 20% of their time
fighting with their email box.
4. Employees are engaged or else …
Employees have to behave. They’ve been hired to
produce and apply the methods, processes and
strategy coming from above. They are not here to ask
silly questions that would disrupt the regular process.
32

33. R U READY TO INTRODUCE ENT 2.0 IN
YOUR ORGANIZATION ? …..
5. The IT division defines the organization.
It is very handy for the IT department that all different
department (Marketing, Sales, Professional Services,
R&D, Production, IT) has its own hermetic silo : then it
can ensure that all communication go through the
Strong manager to help preventing any IT securityStrong manager to help preventing any IT security
issue.
6. Does Collaboration is perceived as dangerous?
One could exchange VALIDATED & CORRECT
information with somebody from another department
without going through the Strong manager. The latter
would then be terribly upset and upsetting managers
goes against your company core values.
33

34. R U READY TO INTRODUCE ENT 2.0
IN YOUR ORGANIZATION ? …..
7. Employees need to know where to find the
required ‘knowledge/information’
The IT department have structured ‘what there is to
know’ in directories in different network drives and in
Real Time Database Management Systems. All your
employees have to know is the name and location ofemployees have to know is the name and location of
every bit of information they are supposed to work
with.
8. Does it encompass High Fear / Low Trust
Culture?
You make sure that any mistake is severely
punished and ridiculed so that people don’t lose
other people time with any idea/document. 34

35. R U READY TO INTRODUCE ENT 2.0 IN
YOUR ORGANIZATION ?
9. Culture on Customer Engagement
Should your teams ask any question to the
customers and question the way they use your
product? Asking questions to your users is
perceived to make them think you are clueless and
lose market share! And to communicate with the
customer, a couple of annual/quarterly corporatecustomer, a couple of annual/quarterly corporate
statements and ad campaigns are taken as
sufficient.
10. Business Methodologies are just a way for
consultants to make big bucks
Your company has been in the business for 30 / 40
years and it has been doing things the same way
ever since. Why should it change?
35

36. CONCLUSION
If any of the above 10 principles is true for your
company, the initiative of Implementing Enterprise
2.0 is very risky, as:
Ent 2.0 encourages collaboration and knowledge
sharing for employees to be more efficient.
Ent 2.0 fosters weak links, networking, questioning
and associating; at the risk of some peopleand associating; at the risk of some people
discussing the same problem from different
perspectives and come with some ideas or even an
innovation.
Ent 2.0 fosters employees engagement and helps
leveraging flow of information to create value.
Ent 2.0 facilitates participation, reputation,
emergence, transparency, simplicity, agility and
trust.
36

37. POINT TO PONDER……..
How scary and disruptive ideas!
Better be safe in running the business!
IN that case make sure you stay out of
Enterprise 2.0!!
37

38. THANKS FOR YOUR PATIENCE!
SHALL MEET ON NEXT SAARC CIO CONFERENCE…..