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Web Unique Alternative to the
The 2.0 Impact on the Enterprise Big Four®




                                                              ®
The Unique Alternative to the Big Four

Web 2.0 Impact on the Enterprise

September 11, 2008




                        Member Horwath International   © 2008 Crowe Horwath LLP   1
The Unique Alternative to the Big Four®




Purpose of Presentation
1. What is Web 2.0?                                                             With You Today:

                                                                                Daan De Brouckere
2. Rich Internet Applications                                                     Executive
                                                                                  Crowe Horwath LLP
3. Social Software                                                                Office: (630) 575-4211
                                                                                  Mobile: (630) 452-3881
                                                                                  daan.debrouckere@crowehorwath.com
4. Best Practices




                      Member Horwath International   © 2008 Crowe Horwath LLP                                  2
The Unique Alternative to the Big Four®




Web 2.0 Defined




     Think of Web 2.0 as a set of related concepts… rather than a single product



                      Member Horwath International   © 2008 Crowe Horwath LLP      3
The Unique Alternative to the Big Four®




Web 2.0 Technologies & Concepts
• Rich Internet Applications: (RIA)
      • AJAX, Adobe Flash, Flex, Java, Silverlight and Curl
      • Mashups


• Social Software:
      • Networking (MySpace, Facebook, LinkedIn, Friendster)
      • Collaboration (wiki, blog, IM, virtual worlds)
      • Publishing (social tagging, social bookmarking)


• Web Platform:
      • CSS, REST, SOAP, XML, RSS, Atom



                      Member Horwath International   © 2008 Crowe Horwath LLP   4
The Unique Alternative to the Big Four®




Web 2.0 Enables: Cloud Computing
• allows you to increase capacity
  or add capabilities on the fly
  without investing in new
  infrastructure, training new
  personnel, or licensing new
  software.

• encompasses any subscription-
  based or pay-per-use service
  that, in real time over the
  Internet, extends IT's existing
  capabilities.



                      Member Horwath International   © 2008 Crowe Horwath LLP   5
The Unique Alternative to the Big Four®




Software as a Service (SaaS)
• Alternative to the high cost of On-
  Premise Software
• Subscription-based model for
  delivering software
• Initial markets showing success:
   • Accounting
   • Customer relationship
       management (CRM)
   • E-mail
   • Human resources
   • IT service management
   • Video conferencing
   • Web analytics
   • Web content management
                      Member Horwath International   © 2008 Crowe Horwath LLP   6
The Unique Alternative to the Big Four®




Global Enterprise Web 2.0 Spend

            $5B


             $4B

             $3B
                                    You
                                    are
             $2B
                                    here
             $1B



                                                                                Source: Forrester Research, April 2008
                                                                                Forecast: Global Enterprise Web 2.0 Spend
                                                                                By Technology, 2007 To 2013
                      Member Horwath International   © 2008 Crowe Horwath LLP                                        7
The Unique Alternative to the Big Four®




Why Are Customers Adopting Web 2.0?




                       Base: 106 CIOs at firms using at least one of six Web 2.0 technologies
                       (multiple responses accepted)
                      Member Horwath International   © 2008 Crowe Horwath LLP                   8
The Unique Alternative to the Big Four®




                         Rich Internet Applications




                      Member Horwath International   © 2008 Crowe Horwath LLP   9
The Unique Alternative to the Big Four®




AJAX Defined
• “quot;Ajax,quot; or asynchronous JavaScript and XML, refers to a
  browser-based repertoire of techniques for implementing
  Web applications in which page elements and content are
  retrieved asynchronously in the background, and in which
  the page display is updated incrementally without
  redisplaying the entire page.” – Gartner

• Addresses the issue of having to refresh a web page when
  only a small piece of content needs to change!




                      Member Horwath International   © 2008 Crowe Horwath LLP   10
The Unique Alternative to the Big Four®




 AJAX Example: amazon.com




• Customers stay on the current item while being able to browse a list
  of other books




                       Member Horwath International   © 2008 Crowe Horwath LLP   11
The Unique Alternative to the Big Four®




AJAX in e-Commerce




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The Unique Alternative to the Big Four®




Silverlight in action
http://www.mscui.net/PatientJourneyDemonstrator/




                      Member Horwath International   © 2008 Crowe Horwath LLP   13
The Unique Alternative to the Big Four®




Mashups Defined




                      Member Horwath International   © 2008 Crowe Horwath LLP   14
The Unique Alternative to the Big Four®




Mashup Typical Architecture

                                                                                Platform
                                                        RSS Feeds
        Web Services                                                            Services



                                                           Mashup
                                                            Site
    Data




                      Member Horwath International   © 2008 Crowe Horwath LLP              15
The Unique Alternative to the Big Four®




Mashup Example: zillow.com
                                                                                • Home value estimates +

                                                                                • Real estate listings +

                                                                                • Microsoft Virtual Earth =

                                                                                • Visualization of homes for
                                                                                  sale and home value
                                                                                  estimates by geographic
                                                                                  area




                      Member Horwath International   © 2008 Crowe Horwath LLP                              16
The Unique Alternative to the Big Four®




Mashup ideas in the Manufacturing Industry
• “Consolidate a large volume of data created by R&D
  scientists and a wafer fabricator to understand metrics that
  can improve R&D tool utilization and time-to-market.”

• “System performance monitoring and customer service
  support for electronic products.”




According to Forrester Research, the enterprise mashup market, which emerged
just three or four years ago, will grow to nearly $700 million by 2013.



                      Member Horwath International   © 2008 Crowe Horwath LLP   17
The Unique Alternative to the Big Four®




Mashup ideas in Information Technology
•   “Combining Portal and Data Warehouse Reporting elements.”

•   “10 Year old legacy backend, not able to interface to modern supplier
    organizations.”

•   “Dynamically merge top line data from key organizational functions like
    billing information, new business requests information, staff timesheets,
    accounting bottom lines, etc, in short/small packets to make constant
    decisions.”

•   “Allowing business people to create their own set of information and
    services based on well managed services to solve their individual problems.”

•   “Knowledge Management and Actionable decision dashboards.”



                      Member Horwath International   © 2008 Crowe Horwath LLP   18
The Unique Alternative to the Big Four®




                                          Social Software




                      Member Horwath International   © 2008 Crowe Horwath LLP   19
The Unique Alternative to the Big Four®




Public Social Networking Sites




                      Member Horwath International   © 2008 Crowe Horwath LLP   20
The Unique Alternative to the Big Four®




What is Facebook all about?
• Started by a Harvard student in
  2004
• 85% of college students use it
• More than 100 million active
  users worldwide

• Users create profiles, connect
  with friends, join groups.
• Facebook launched a software
  development framework in 2007
  allow applications to interact with
  core Facebook features

                                  Crowe is now using Facebook as a recruiting channel
                      Member Horwath International   © 2008 Crowe Horwath LLP     21
The Unique Alternative to the Big Four®




What is LinkedIn all about?
• Founded in 2002 as a professional
  networking site.
• More than 24 million registered
  users

• Users create profiles, maintain a
  list of professional connections,
  join groups.

• Used to find jobs, people and
  business opportunities
  recommended by someone in
  one's contact network

                      Member Horwath International   © 2008 Crowe Horwath LLP   22
The Unique Alternative to the Big Four®




What is Plaxo all about?
• Founded in 2001.
• More than 20 million
  registered users
• Acquired by Comcast

• Plaxo provides automatic
  updating of contact
  information.
• Users and their contacts
  store their information on
  Plaxo's servers.
• Extending their platform to
  support other social tools
                      Member Horwath International   © 2008 Crowe Horwath LLP   23
The Unique Alternative to the Big Four®




Public Social Collaboration & Publishing
Software




                    Is your sensitive enterprise content here?

                      Member Horwath International   © 2008 Crowe Horwath LLP   24
The Unique Alternative to the Big Four®




Public Social Publishing Software




                      Member Horwath International   © 2008 Crowe Horwath LLP   25
The Unique Alternative to the Big Four®




Should Enterprises Block Access to Public
Sites Like YouTube and Facebook?
• Short answer: No (usually)
• Don't apply technical solutions to
  solve management issues                        One-quarter of
      • If employees waste time, deal with them enterprises block social
      • Today it is Facebook. Tomorrow?         networking URLs*

• This is the most exciting and
  innovative part of the market.
  Why cut off access to it?
      • Learn from it; maybe even use it
      • No exposure = No experience
• Blocking causes recruitment problems
• Regulated industries, and low supervision and low
  bandwidth environments can be exceptions
                      Member Horwath International   © 2008 Crowe Horwath LLP                         26
                                                                                * Security/hygiene vendors
The Unique Alternative to the Big Four®




Why Social Software in the Enterprise is
unavoidable
• #1 - Demographics of today’s workforce
      • Digital natives
      • Architecture of participation
      • New personal computing behaviors




                                                                  Workplace expectations
                                                                  Workplace behaviors
                                                                  Worker capabilities
                      Member Horwath International   © 2008 Crowe Horwath LLP         27
The Unique Alternative to the Big Four®




Why Social Software in the Enterprise is
unavoidable
• #2 - Consumerization of technology
      • Free technology
      • Personal computing technology
      • Global-class computing



                                                                 Blending of work and leisure
                                                                 Unified communications
                                                                 Grass-roots behavior
                                                                 Control over computing
                      Member Horwath International   © 2008 Crowe Horwath LLP             28
The Unique Alternative to the Big Four®




Main Drivers For Social Computing




                      Member Horwath International   © 2008 Crowe Horwath LLP   29
The Unique Alternative to the Big Four®




Challenges in Social Computing




                      Member Horwath International   © 2008 Crowe Horwath LLP   30
The Unique Alternative to the Big Four®




Social Networking – Del Monte
• “I Love My Dog” offers a
  community where canine
  owners can interact and
  share ideas

• Get closer to customers
      • Identify pressing issues
      • Understand buying
        decision process


• Explore new product
  concepts


                      Member Horwath International   © 2008 Crowe Horwath LLP   31
The Unique Alternative to the Big Four®




Enterprise Social Networking Tools
                                                                                                Magic Quadrant for Team Collaboration and
• Enterprise vendors address                                                                    Social Software, 2007
  consumer gaps:                                                                                  challengers         leaders

      • On-premises and software as a
        service (SaaS)
      • Security, integration, support
                                                                                                              Microsoft
• Major vendors enter the




                                                                           ability to execute
                                                                                                                       IBM
  market:                                                                                                     Atlassian

      • New products: IBM Lotus                                                                                                    Socialtext
                                                                                                      Vignette        BEA
                                                                                                                                    TWiki
                                                                                                                                          Jive Software
                                                                                                 Leverage Software
        Connections                                                                                                        Six Apart     MindTouch
                                                                                                              Open Text
                                                                                                                                      SuiteTwo
      • Added functions: Microsoft                                                                                        Communispace Awareness
                                                                                                    Telligent         SiteScape
        SharePoint                                                                                 blueKiwi           GroveSite
                                                                                                                  Traction Software
                                                                                                  EMC
• Many startups adopt a best-of-                                                                                 Social Platform
                                                                                                               OutStart
                                                                                                  Ramius
  breed approach                                                                                               CustomerVision

                                                                                                 niche players              visionaries

                                                                                                               completeness of vision
                      Member Horwath International   © 2008 Crowe Horwath LLP                                                                     32
                                                                                                                                     As of September 2007
The Unique Alternative to the Big Four®




IBM Enterprise Social Networking Tools
• IBM Lotus Connections – v2 shipped June 2008
      •   Profiles
      •   Communities
      •   Blogs
      •   Dogear
      •   Activities




                      Member Horwath International   © 2008 Crowe Horwath LLP   33
The Unique Alternative to the Big Four®




Microsoft Enterprise Social Networking Tools
• Microsoft SharePoint 2007
      • MySites
            • Workspaces
            • MyLinks
            • Colleague Tracker
      • Wikis
      • Blogs
      • RSS


• Microsoft Office Communications Server 2007
      • Instant messaging
      • Presence


                      Member Horwath International   © 2008 Crowe Horwath LLP   34
The Unique Alternative to the Big Four®




     Enterprise Web 2.0 Best Practices
             8 steps for success                                                      8 mistakes to avoid
1.       Start small and cultivate success                                            Don't ignore accountability and
                                                                               1.
                                                                                       responsibility
2.       Make it open and easy to use
                                                                               2.     Don't ignore Web 2.0 as a
     -     Accessible, Web-native, extensible,
                                                                                     passing fad
           reusable, user-manageable
                                                                               3.     Don't try to solve all with Web
3.       Expose connections and let users:
                                                                                     2.0
     -     Create structure, organization, shared
                                                                               4.     Build it and they won't come —
           bookmarks, tags and rich user profiles
                                                                                       have a purpose (business
     -     See emergent structure and use-based
                                                                                     value)
           people relationships
                                                                               5.     Don't over engineer — build for
4.       Links to e-mail, syndication
                                                                                       adoption
5.       Identify the right context
                                                                               6.     Don't over-restrict — enable
6.       Focus on people                                                               emergence
7.       Provide some initial structure, spark                                 7.     Thinking too local
         self-governance                                                       8.     Not having a plan for growth
8.       Lead by example

                           Member Horwath International   © 2008 Crowe Horwath LLP                               35
The Unique Alternative to the Big Four®




Discussion




                      Member Horwath International   © 2008 Crowe Horwath LLP   36

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Web 2.0 Impact on the Enterprise

  • 1. Web Unique Alternative to the The 2.0 Impact on the Enterprise Big Four® ® The Unique Alternative to the Big Four Web 2.0 Impact on the Enterprise September 11, 2008 Member Horwath International © 2008 Crowe Horwath LLP 1
  • 2. The Unique Alternative to the Big Four® Purpose of Presentation 1. What is Web 2.0? With You Today: Daan De Brouckere 2. Rich Internet Applications Executive Crowe Horwath LLP 3. Social Software Office: (630) 575-4211 Mobile: (630) 452-3881 daan.debrouckere@crowehorwath.com 4. Best Practices Member Horwath International © 2008 Crowe Horwath LLP 2
  • 3. The Unique Alternative to the Big Four® Web 2.0 Defined Think of Web 2.0 as a set of related concepts… rather than a single product Member Horwath International © 2008 Crowe Horwath LLP 3
  • 4. The Unique Alternative to the Big Four® Web 2.0 Technologies & Concepts • Rich Internet Applications: (RIA) • AJAX, Adobe Flash, Flex, Java, Silverlight and Curl • Mashups • Social Software: • Networking (MySpace, Facebook, LinkedIn, Friendster) • Collaboration (wiki, blog, IM, virtual worlds) • Publishing (social tagging, social bookmarking) • Web Platform: • CSS, REST, SOAP, XML, RSS, Atom Member Horwath International © 2008 Crowe Horwath LLP 4
  • 5. The Unique Alternative to the Big Four® Web 2.0 Enables: Cloud Computing • allows you to increase capacity or add capabilities on the fly without investing in new infrastructure, training new personnel, or licensing new software. • encompasses any subscription- based or pay-per-use service that, in real time over the Internet, extends IT's existing capabilities. Member Horwath International © 2008 Crowe Horwath LLP 5
  • 6. The Unique Alternative to the Big Four® Software as a Service (SaaS) • Alternative to the high cost of On- Premise Software • Subscription-based model for delivering software • Initial markets showing success: • Accounting • Customer relationship management (CRM) • E-mail • Human resources • IT service management • Video conferencing • Web analytics • Web content management Member Horwath International © 2008 Crowe Horwath LLP 6
  • 7. The Unique Alternative to the Big Four® Global Enterprise Web 2.0 Spend $5B $4B $3B You are $2B here $1B Source: Forrester Research, April 2008 Forecast: Global Enterprise Web 2.0 Spend By Technology, 2007 To 2013 Member Horwath International © 2008 Crowe Horwath LLP 7
  • 8. The Unique Alternative to the Big Four® Why Are Customers Adopting Web 2.0? Base: 106 CIOs at firms using at least one of six Web 2.0 technologies (multiple responses accepted) Member Horwath International © 2008 Crowe Horwath LLP 8
  • 9. The Unique Alternative to the Big Four® Rich Internet Applications Member Horwath International © 2008 Crowe Horwath LLP 9
  • 10. The Unique Alternative to the Big Four® AJAX Defined • “quot;Ajax,quot; or asynchronous JavaScript and XML, refers to a browser-based repertoire of techniques for implementing Web applications in which page elements and content are retrieved asynchronously in the background, and in which the page display is updated incrementally without redisplaying the entire page.” – Gartner • Addresses the issue of having to refresh a web page when only a small piece of content needs to change! Member Horwath International © 2008 Crowe Horwath LLP 10
  • 11. The Unique Alternative to the Big Four® AJAX Example: amazon.com • Customers stay on the current item while being able to browse a list of other books Member Horwath International © 2008 Crowe Horwath LLP 11
  • 12. The Unique Alternative to the Big Four® AJAX in e-Commerce Member Horwath International © 2008 Crowe Horwath LLP 12
  • 13. The Unique Alternative to the Big Four® Silverlight in action http://www.mscui.net/PatientJourneyDemonstrator/ Member Horwath International © 2008 Crowe Horwath LLP 13
  • 14. The Unique Alternative to the Big Four® Mashups Defined Member Horwath International © 2008 Crowe Horwath LLP 14
  • 15. The Unique Alternative to the Big Four® Mashup Typical Architecture Platform RSS Feeds Web Services Services Mashup Site Data Member Horwath International © 2008 Crowe Horwath LLP 15
  • 16. The Unique Alternative to the Big Four® Mashup Example: zillow.com • Home value estimates + • Real estate listings + • Microsoft Virtual Earth = • Visualization of homes for sale and home value estimates by geographic area Member Horwath International © 2008 Crowe Horwath LLP 16
  • 17. The Unique Alternative to the Big Four® Mashup ideas in the Manufacturing Industry • “Consolidate a large volume of data created by R&D scientists and a wafer fabricator to understand metrics that can improve R&D tool utilization and time-to-market.” • “System performance monitoring and customer service support for electronic products.” According to Forrester Research, the enterprise mashup market, which emerged just three or four years ago, will grow to nearly $700 million by 2013. Member Horwath International © 2008 Crowe Horwath LLP 17
  • 18. The Unique Alternative to the Big Four® Mashup ideas in Information Technology • “Combining Portal and Data Warehouse Reporting elements.” • “10 Year old legacy backend, not able to interface to modern supplier organizations.” • “Dynamically merge top line data from key organizational functions like billing information, new business requests information, staff timesheets, accounting bottom lines, etc, in short/small packets to make constant decisions.” • “Allowing business people to create their own set of information and services based on well managed services to solve their individual problems.” • “Knowledge Management and Actionable decision dashboards.” Member Horwath International © 2008 Crowe Horwath LLP 18
  • 19. The Unique Alternative to the Big Four® Social Software Member Horwath International © 2008 Crowe Horwath LLP 19
  • 20. The Unique Alternative to the Big Four® Public Social Networking Sites Member Horwath International © 2008 Crowe Horwath LLP 20
  • 21. The Unique Alternative to the Big Four® What is Facebook all about? • Started by a Harvard student in 2004 • 85% of college students use it • More than 100 million active users worldwide • Users create profiles, connect with friends, join groups. • Facebook launched a software development framework in 2007 allow applications to interact with core Facebook features Crowe is now using Facebook as a recruiting channel Member Horwath International © 2008 Crowe Horwath LLP 21
  • 22. The Unique Alternative to the Big Four® What is LinkedIn all about? • Founded in 2002 as a professional networking site. • More than 24 million registered users • Users create profiles, maintain a list of professional connections, join groups. • Used to find jobs, people and business opportunities recommended by someone in one's contact network Member Horwath International © 2008 Crowe Horwath LLP 22
  • 23. The Unique Alternative to the Big Four® What is Plaxo all about? • Founded in 2001. • More than 20 million registered users • Acquired by Comcast • Plaxo provides automatic updating of contact information. • Users and their contacts store their information on Plaxo's servers. • Extending their platform to support other social tools Member Horwath International © 2008 Crowe Horwath LLP 23
  • 24. The Unique Alternative to the Big Four® Public Social Collaboration & Publishing Software Is your sensitive enterprise content here? Member Horwath International © 2008 Crowe Horwath LLP 24
  • 25. The Unique Alternative to the Big Four® Public Social Publishing Software Member Horwath International © 2008 Crowe Horwath LLP 25
  • 26. The Unique Alternative to the Big Four® Should Enterprises Block Access to Public Sites Like YouTube and Facebook? • Short answer: No (usually) • Don't apply technical solutions to solve management issues One-quarter of • If employees waste time, deal with them enterprises block social • Today it is Facebook. Tomorrow? networking URLs* • This is the most exciting and innovative part of the market. Why cut off access to it? • Learn from it; maybe even use it • No exposure = No experience • Blocking causes recruitment problems • Regulated industries, and low supervision and low bandwidth environments can be exceptions Member Horwath International © 2008 Crowe Horwath LLP 26 * Security/hygiene vendors
  • 27. The Unique Alternative to the Big Four® Why Social Software in the Enterprise is unavoidable • #1 - Demographics of today’s workforce • Digital natives • Architecture of participation • New personal computing behaviors Workplace expectations Workplace behaviors Worker capabilities Member Horwath International © 2008 Crowe Horwath LLP 27
  • 28. The Unique Alternative to the Big Four® Why Social Software in the Enterprise is unavoidable • #2 - Consumerization of technology • Free technology • Personal computing technology • Global-class computing Blending of work and leisure Unified communications Grass-roots behavior Control over computing Member Horwath International © 2008 Crowe Horwath LLP 28
  • 29. The Unique Alternative to the Big Four® Main Drivers For Social Computing Member Horwath International © 2008 Crowe Horwath LLP 29
  • 30. The Unique Alternative to the Big Four® Challenges in Social Computing Member Horwath International © 2008 Crowe Horwath LLP 30
  • 31. The Unique Alternative to the Big Four® Social Networking – Del Monte • “I Love My Dog” offers a community where canine owners can interact and share ideas • Get closer to customers • Identify pressing issues • Understand buying decision process • Explore new product concepts Member Horwath International © 2008 Crowe Horwath LLP 31
  • 32. The Unique Alternative to the Big Four® Enterprise Social Networking Tools Magic Quadrant for Team Collaboration and • Enterprise vendors address Social Software, 2007 consumer gaps: challengers leaders • On-premises and software as a service (SaaS) • Security, integration, support Microsoft • Major vendors enter the ability to execute IBM market: Atlassian • New products: IBM Lotus Socialtext Vignette BEA TWiki Jive Software Leverage Software Connections Six Apart MindTouch Open Text SuiteTwo • Added functions: Microsoft Communispace Awareness Telligent SiteScape SharePoint blueKiwi GroveSite Traction Software EMC • Many startups adopt a best-of- Social Platform OutStart Ramius breed approach CustomerVision niche players visionaries completeness of vision Member Horwath International © 2008 Crowe Horwath LLP 32 As of September 2007
  • 33. The Unique Alternative to the Big Four® IBM Enterprise Social Networking Tools • IBM Lotus Connections – v2 shipped June 2008 • Profiles • Communities • Blogs • Dogear • Activities Member Horwath International © 2008 Crowe Horwath LLP 33
  • 34. The Unique Alternative to the Big Four® Microsoft Enterprise Social Networking Tools • Microsoft SharePoint 2007 • MySites • Workspaces • MyLinks • Colleague Tracker • Wikis • Blogs • RSS • Microsoft Office Communications Server 2007 • Instant messaging • Presence Member Horwath International © 2008 Crowe Horwath LLP 34
  • 35. The Unique Alternative to the Big Four® Enterprise Web 2.0 Best Practices 8 steps for success 8 mistakes to avoid 1. Start small and cultivate success Don't ignore accountability and 1. responsibility 2. Make it open and easy to use 2. Don't ignore Web 2.0 as a - Accessible, Web-native, extensible, passing fad reusable, user-manageable 3. Don't try to solve all with Web 3. Expose connections and let users: 2.0 - Create structure, organization, shared 4. Build it and they won't come — bookmarks, tags and rich user profiles have a purpose (business - See emergent structure and use-based value) people relationships 5. Don't over engineer — build for 4. Links to e-mail, syndication adoption 5. Identify the right context 6. Don't over-restrict — enable 6. Focus on people emergence 7. Provide some initial structure, spark 7. Thinking too local self-governance 8. Not having a plan for growth 8. Lead by example Member Horwath International © 2008 Crowe Horwath LLP 35
  • 36. The Unique Alternative to the Big Four® Discussion Member Horwath International © 2008 Crowe Horwath LLP 36