Enterprise 2.0 Summit 2009 Closing Keynote by Dion Hinchcliffe

Enterprise 2.0

Chance or Fool's Paradise for Business Transformation in Economic Crisis

Dion Hinchcliffe

socialcomputing

businessvalue

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

BottomUp

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 2.0Projects 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

onlinecommunity

cloud computingmashups

open APIsSaaS

Enterprise 2.0 &Open Business Models

2.0development

platforms

(social media in the

enterprise)

Product Development 2.0

1st Wave: Information Explosion

2nd Wave: Information Filters

3rd Wave: Information Shadows

MostOf Us

Are Here

consumer blogs/wikis

Enterprise 2.0?

social networks

Is Enterprise 2.0 Still In TheAdoption Chasm?

• 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 forEnterprise 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

ValueROI

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 ContentAnd 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 ActiveParticipation 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 ManageThe Community

Change Management & Community Management

Online Community Management

Software Know-How

Feature Selection

Priority & ScheduleManagementDocumentation

Incorporation of Experience

OutreachEvents

IncentivesIssue Management

Networking

Identification of Best Practices

Attend Trade Events

Brand SupportSituation Management

Listen/Join Conversation

Marketing AnalysisImpact Reporting

Ad Rotation

Team Building

Staff Training

BudgetingGoal Definition

Business AlignmentControl/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 & IncentivesContent

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

BottomUp

Anatomy of an Enterprise Social Computing Effort

Cultural Change

Reactive ResponseCost 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 2.0tm

Effective Low Risk Social Computing

IntroducingPragmatic Enterprise 2.0

The Power of Social Business

MinusThe

Downsides

Exclusively from Hinchcliffe & Company and Partners

October 20th, 2009

See Also