Fact-gathering on 2.0 Adoption

The recent acquisition of Headshift by the Dachis Group was largely celebrated in the e2.0 community. As I commented for RWW, it’s a testament to a growing, maturing market. Enterprise interest in incorporating 2.0 tools and practices has never been higher. With this stage of evolution comes the good stuff, the fact-based data that helps guide our understanding of where we are, what it takes to get this right, who’s behind Enterprise 2.0 initiatives, what expectations are for business results, how much money will move through the market, etc.

I was really excited to see McKinsey’s 2009 “How Companies are Benefiting from Web 2.0” report that came out this week. Having come from a large consulting background tracking the IT services sector, it’s a raw indicator that the 2.0 phenomenon is about to break out of the echo chamber when the large consulting firms start paying attention. Some of our best contributors in the Council are large consulting firms who are rolling out their own initiatives, and I expect these firms will leverage this intelligence to build their own practices at some point. During the first evolution of the web, a whole host of IT services firms cropped up to take advantage of the promise of enterprise transformation via the web. Most of those firms fell flat in the dotcom meltdown bringing down investors, customers, employees, and the echo chamber. I did a huge research report that profiled who those companies were and what dynamics were driving that sector. What did succeed, royally, from that era is the undeniable impact electronic commerce brought to the consumer and enterprise sectors. Seeing “what could be” drove the vision of many of those early firms, and even if their dreams crumbled under the weight of their own ambition (and hubris), they were correct about identifying the potential of the Internet to radically change business.

So, we’ve moved from e-business to social business in a decade. While the hype factor is still a little deafening, I’m thrilled to announce we will be kicking off the first in-depth exploration into the 2.0 adoption phenomenon to bring some clarity to the maturing market sector. To conduct this research, I’m pleased to announce the Council has signed a strategic partnership with Carl Frappaolo and Dan Keldsen of Information Architected to conduct a qualitative research study on the dynamics surrounding 2.0 adoption, as well as quantitative data on our members relative to industry, professional profiles (titles, organization), budgets, and other data points that present a portrait of who the early adopters really are. I’ve done some preliminary inquiries on our Council members and have already discovered a number of surprising findings that I would not have predicted. For instance, budgets for 2.0 are a lot higher than I would have guessed (if at all even established).

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Other interesting findings reveal that IT is not driving many of the decisions to implement a wide-scale enterprise 2.0 initiative. Lines of business comprise the lion’s share of our members.

One of the greatest goals for this research is to finally highlight salient case studies that explain the motivation behind the 2.0 effort as well as the expected business results.

For example, I conducted an interview this week with a very well known Wall Street investment bank. It was the audit and compliance global organization that drove an e20 solution to answer an age-old problem: high inefficiencies and underutilization. It’s an impressive global rollout that incorporates 5 financial center locations with approximately 200 of the firm’s subject matter experts in product, trading desk, regulatory, and banking. The initiative has yielded a “huge leap forward” according to the bank due to the transparency and visibility the firm has now as a result of breaking down the fiefdom walls that impeded the firm’s progress in years past. Greatest challenge? The people issues. It forces employees to communicate more. Additionally, the new processes expose the weak links in the firm and threaten job security/relevance. Greatest benefit? The initiative answers to the Board of Directors and provides predictable, reliable reporting that mitigates risk and ensures regulatory compliance. I asked my contact if the effort played any role in the financial recovery of this particular firm, he said not really because this was purely a cost-containment effort, yet he added, “The platform should, however, allow [the firm] to be more nimble in the face of increased regulatory scrutiny. Management can now see the effects of re-allocating resources to review areas of the firm with a higher perceived risk.”

All good stuff. There are so many exciting initiatives going on within the Council membership, I am thrilled to be able to bring them to light via our research. We will be presenting top-line findings of this research at the Enterprise 2.0 conference in San Francisco (Nov. 2 – 5). The Council has a number of initiatives going on at the conference, and I’ll be blogging about them in the upcoming weeks.

If you are a customer in the throes of adoption and would like to participate in the research, please simply request to join The 2.0 Adoption Council. Membership is free and you will receive a tremendous return on your (non) investment.

A Year’s Summary of Personal Reflection III

DSC00007_3Bear with me. I only do this once a year on ITSinsider after the annual Enterprise 2.0 conference. I post a somewhat more introspective essay of sorts reflecting on what my impressions were from the conference and where I think we are as a micro-movement in the tech landscape.

(If you’re really interested, you can read the first two years’ posts before reading this one: Year I and Year II.)

As I re-read Year II’s post, I realized not too much has changed from last year, and I could probably get by simply reprinting that post. But, no. There are a few things I want to address this year in greater detail.

Here we go:

IMG_07311. My Mind on my Money and my Money on my Mind

I started this post on the plane returning home from Boston (as did Oliver Marks). I snapped this photo of the guy in 27C. Blocked by his left arm is a clever little tool with which he was using to make some decisions. I overheard him telling the guy in 27B, my seat mate, that he was a manager for the terminal division for Continental. He was saying he had three projects he was evaluating, and he was trying to decide which one to do first. As I was gathering my thoughts around this year’s conference and the year ahead, I thought this little bit of eavesdropping would make for a nice intro to this blog post. The deadly little tool in Mr. 27C’s arsenal was a calculator. With a line-ruled notebook, a pen, and a calculator, he was set to make a decision that would most likely affect the work of dozens of people at Continental. And, if he did his ciphering correctly, his decision might even affect the business performance of his division at Continental Airlines. With that vignette, I’d like to suggest a lesson:

“What Enterprise 2.0 Needs to Learn from Enterprise 1.0”

Paramount on the minds of the boards of directors of the types of large firms we’re trying to move to Enterprise 2.0-style thinking and acting are items like… quarterly earnings. So, let me suggest that the currency of the Enterprise is not social connectivity, is not relationships, is not kumbaya, or even whuffie… the currency of the Enterprise is currency (and the colder and harder the better, as those clever credit financial instruments have a way of surprising you). We can debate whether ROI is a sensible metric; whether solutions are off-the-rack or tailored, whether there are enough case studies, whether we have the right brainiac analytical model, and on and on. But at the end of the day, we need to prove our business case in the Enterprise. Just like Mr. 27C, we need to run the numbers and see if our Enterprise 2.0 initiative is generating a positive business result:

  • is it saving us money?
  • is it making something faster?
  • is it helping reduce the cost of something else?
  • is it improving our customer’s loyalty and therefore repeat purchases?
  • is it flattening out a supply chain and thereby reducing our costs?
  • is it identifying new products or services that will throw off incremental revenue?
  • is it measurably improving our performance to our primary customers?

You get the idea.

At the risk of becoming the Paul Krugman of Enterprise 2.0, I can’t emphasize this enough– quit ‘yer socializing and make some money, willya? It’s what we all need to survive. I was actually joking at the conference to my e20 friends that I’m a living example of of the hype factor in this market. I was laid off effectively six months ago, and I have not received a single (real) job offer. Therefore, my joke: “I’m too big to fail” considering (my size – that’s the funny part, and) all the good will I have amassed with my evangelism. Good will doesn’t pay the rent, my friends. I, like all my Enterprise 2.0 compadres, must find a way to make money at this or we will all be looking at working for “The Man” we are so desperate to discredit.

2. Re-thinking Diss-Organization

One of the most interesting socio-anthropological aspects of 2.0 evangelism is the dismantling (at least disrupting) of the power structures that rule large corporations. I heard it best at the conference from Marc Smith, Telligent‘s Chief Social Scientist in residence, who casually reminded us, “All social systems have power structures.” Even in the 2.0-osphere, we have a social structures. Who’s connected to whom? Who’s a social CRM rockstar? Who has more friends/followers than whom? Who gets to speak at the conference? Who gets into the best parties? Blah, blah, blah. Who are we kidding? The cruel reality is: we are social creatures driven by base human motives. Same as it ever was.

In short, it’s unlikely we will re-write the rules on social hierarchy for large organizations. What’s different, IMHO, is the role credentials and pedigree will play as we move forward in an ever-more connected world. The more we give voice to innovative ideas buried in the bowels of the organization, the more we will self-subscribe to a tacit endorsement of social darwinism. This can be liberating, yet troubling in many ways. Our peers, our management, and our reports will judge us exclusively on the merit of our contributions. Are we ready for that?

3. A word on Social Business, Social Enterprise, etc.

This last bit is a familiar refrain for these annual reflection posts. Now, with all due respect for my friends at the Dachis Group, my new writing colleague @technically_women, Jennifer Leggio who writes the Social Business blog, and the Jive marketing team (SBS), I want to raise the inconvenient issue that outside of our circle, Social Business and Social Enterprise, have a completely different meaning. Yes, we can loosely associate what we do with what “they” do, but it’s not really the same thing, is it?

Social Businesses seek to profit from acts that generate social improvements and serve a broader human development purpose. A key attribute of social businesses is that an increase in revenue corresponds to an incremental social enhancement. The social mission will permeate the culture and structure of the organization and the dual bottom lines – social and economic will be in equal standing with the firm pursuing long term maximization of both.

Similarly, academic institutions (including this program from Harvard) have been focused on educating leaders to make a difference in the world long before we came along and decided “social business/enterprise” was a groovy fashion statement for a 2.0-transformed business.

That being said, however…

Not sure what motivated you to get into this space, but “changing the world for the better” with computer technology has always been a passion of mine. I believe it is possible to 1. make money at this and 2. use our mad skillz to right some wrongs on the planet, once we figure some things out about working socially en masse.

With that, I will return to the ITSinsider regular programming. What have you learned this year?

The Urgency of Now

The news about Sarah Palin broke today while I was working.  Where did I see the news?   Twitter (of course).  Seconds turned to minutes, and I found myself impatient with not knowing the inside scoop on the why behind the resignation.  What was the target of my impatience?  The Twitter community.  Seems ridiculous, but it’s just expected these days that you’ll get to the heart of a breaking story within seconds.

To that end, it reminded me I wanted to write a post about the “unbearable heaviness of not-being” current.  Way, way back around the Christmas holidays, I was flattered to be one of only three reviewers for Andrew McAfee’s book on Enterprise  2.0 by Harvard Business Press.    They asked me to review the manuscript, and I accepted (for a small stipend).  They gave me a couple weeks to review it, and I submitted my comments in mid-January.

At the back of mind, however, and something I probably should have included in the review and regret now that I didn’t was a lingering doubt.  “This book will be obsolete before it’s published for the community of folks who track this sector.”

When Andy and I caught up at the Enterprise 2.0 conference, he told me that he too is really troubled by the delay on the publishing schedule.  He had hoped the book would have been published by the conference deadline (June), but it is now pushed back until December.  December?   You’re kidding me.

The demand for Andy’s book is today, not six months from now.  I’m wondering if, as a community, we can lobby Harvard Business Press to move the publication date up as its value is inextricably tied to its timeliness– especially in this fast-moving space.  The Editorial Director in charge of the publication timeline is Jacqueline Murphy .   I urge you to contact her and express your support for moving the book up in Harvard Business Press’ publishing queue.  I also started a Facebook group with the same goal.

Cognizant Global Experiment in the Collaborosphere Pays Off

As many of you know, I spent the first half of my career in the IT space tracking the IT services sector. The business of large-scale systems integrators and outsourcers wasn’t always thrilling, but boy-oh-boy, did those firms rake in the big bucks. Contracts weren’t even worth mentioning if they didn’t register in the hundreds of millions. At one point in the “megadeal” market for IT outsourcing, a contract would have to be in the billions to earn that designation.

Sigh.

I often wonder how my old friends in the SI/Outsourcer space are doing, and if in fact, any are adopting 2.0 technologies or practices internally or recommending them to their large customer bases. So, it was a pleasant surprise to reconnect with an old friend, Alan Alper, who is now working for another old friend, Malcolm Frank, both now at Cognizant— a large-scale integrator/outsourcer.

It turns out Cognizant is making productive use of 2.0 technologies and practices, and has realized some identifiable business results already. The company began an initiative about two years ago called, “Cognizant 2.0.” Essentially, the Cognizant 2.0 platform is a combination knowledge management/project workflow tool that incorporates 2.0 technology to leverage the combined intelligence and skills across Cognizant’s entire 60K workforce. What’s interesting about Cognizant 2.0 is that employees use the same tools they’re used to using in the workplace: Microsoft Project, Office, SharePoint, as well as their ERP systems. The platform integrates these enterprise “native” tools into a unique view that crosses time zones and geographic boundaries to glue the company’s expertise together. Dashboards now monitor critical project tasks and provide project teams with detailed, real-time access to workflow activities, information, targets, and deliverables. Internal blogging for the company has produced some surprising results. It grew essentially organically within the company as a means of communication and sharing and now includes non-related work content such as discussing charitable causes, movies reviews, weather, photography, and affinity-based professional interests.

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Cognizant estimates the new collaborative platform improves project cycle times on average about 20%. With more than a third (37%) of the company’s application development projects running through the platform, it encompasses over 4,000 projects at what will soon span more than 600 customers. One of the greatest gains has been a 70% productivity improvement for project managers who formerly used the company’s previous project management tool. About 20% of the workforce (over 10K), including the company CEO Francisco d’Souza, are blogging internally on the platform with over 3-5 million page views a month.

Customer satisfaction numbers for Cognizant have always been high (near 90% in recent years), but the advantages of working collaboratively and socially has given Cognizant a distinctive advantage vis-a-vis its competitors in a hotly contested space. In essence, the company has moved from “labor arbitrage” to what it now refers to as “intellectual arbitrage.” The Cognizant example is an excellent one that truly demonstrates business advantage to a large enterprise. The company intends on extending the platform to include suppliers and customers in upcoming releases.

If I had to point out a deficiency for Cognizant 2.0, like its enterprise software components, it’s not sexy. It could use a trendy 2.0 UI/UX makeover to make it more appealing to users. But considering most of Cognizant’s workforce is comfortable with plain-old-vanilla enterprise software for everyday use, there is probably no urgent need to doll up the platform. Moreover, as Cognizant is a public company with nearly $3B in revenue and an $8B market cap, the company’s priorities might well be more focused on business results than design awards. I give it a thumbs up for innovation, adoption, and an impressive approach to integrating the old with the new– which is what I’d hope to see from a world-class systems integrator.

Ollie Ollie Oxen Free!* Boston is Home Base for e20 Evangelists this Month.

picture-4Well, it’s that time of year again. The Enterprise 2.0 Conference is once again gearing up for an interesting week in Boston. All e20-loving fans and friends will be coming from all parts unknown to proselytize, share war stories, and re-energize for the year ahead.

The keynotes are exceptional this year. I’m really pleased we were able attract Matthew Fraser, co-author of one of my favorite 2.0 business books this year, “Throwing Sheep in the Boardroom: How Online Social Networking will Transform Your Life, Work, and World.” We also have favorites from last year include Evening in the Cloud, OpenEnterprise09, and one of the stars of last year’s event: the Lockheed-Martin case study duo.

I’m particularly interested in a few sessions. (In fact, I gave up all my speaking slots so I could attend other sessions!) One that I don’t want to miss is Lee Bryant’s “Transition Strategies for e20 Adoption.” Headshift is one of the really innovative boutique consultancies out there focusing nearly exclusively on introducing 2.0 to the enterprise. Another one I’m interested in is Amy Vicker’s “The Sharepoint Factor.” I helped Amy get this on the program, and I’m sure she won’t disappoint. If y’all don’t have a Sharepoint strategy, you’re going to be in for a rude awakening if you’re serious about large enterprise. I think Mr. tell-it-like-it-is, Peter Kim, is going to surprise with his “Does Social Media and Marketing Matter?” panel. That one will probably break Twitter. To be honest, there are so many great sessions this year, it’s difficult to narrow down my must-attend events. I asked Steve Wylie how the registration is going. Surprisingly, the conference is holding up very well against the economic downturn. Steve said the numbers of customers are consistent with last year’s attendance too.

Once again, I will be pitching in on Enterprise2Open. This is a barcamp-style event where everyone gets a chance to present or share their own experiences. Brian Magierski, my former colleague at nGenera will be there, along with Ross Mayfield of Socialtext. Both companies are sponsoring the barcamp and have serious street cred in discussing the challenges and opportunities with making 2.0 in-roads in large enterprises. Last year’s sessions were well-attended, and I think everyone got a lot out of the group discussions. If you have something you’d like to present, sign up at the Enterprise2Open wiki and promote your event.

I’m still waiting on details for the social calendar (parties, dinners, etc.). But, I saw the first tweetup today. About two dozen people have already signed up. You may want to sign up early for the social network associated with the conference at MyE2. This is also where you’ll access the back channel that was very useful last year.

*”Ollie Ollie Oxen Free!” is from the children’s game of hide and seek where the “it” player summons everyone back to base (essentially because they’ve given up, which is kinda how I feel this year…) 🙂

SXSW through the Enterprise Prism

There was something about SXSW that reminded me of trick-or-treating. It’s an amazing opportunity to travel around in groups (in various costumes) and collect delicious bite-sized morsels of innovation. But it reminded me of something my (once) 3-year old son said after he flopped into bed after his first Halloween night, “Let’s do that again tomorrow!”

SXSW is a once-a-year phenomenon, but a great harbinger of trends. Much of the conversation is about web-related design and measurement, politics, the social media revolution, and every-possible-thing-that-could-ever-be-possibly-said about Twitter. In the mix of fun and frolic, there were a couple gems that I picked out that would bring value to the enterprise.

Pepsicozeitgeist

One of the best, IMO, was Pepsi’s sponsorship of the PepsiCo Zeitgeist Twitter Visualizer. This eye-candy visualizer was created by Amy Hoy and Thomas Fuchs, two Ruby on Rails/Javascript knighted heros and the brains behind Freckle and Twistori. Pepsi turned to NY digital strategy stealth firm Undercurrent to link its brand to SXSW. Pepsi had a number of initiatives at the show, but the zeitgeist effort was really interesting to me on a number of levels. Before I discuss how enterprise could make practical use of such a visualizer, I want to highlight how courageous it was for Pepsi to get behind the zeitgeist project. I spoke briefly to Pepsi’s Josh Karpf, Manager Digital and Social Media and Bart Casabona, Sr. Manager, Communications/New Media about it. “It was a leap for us; it hadn’t been done before,” said Casabona. Jordan Berkowitz, Group Director at Undercurrent pointed out that when they designed the application, there was to be, “No filtering based on content.” The PepsiCoSXSW team was integrated into the social media scene and knew there might be objectionable content broadcasting at the event and online, but wanted to create an authentic, digital experience with the Pepsi brand. Even though we were in bluedot Austin, where weird rules, it occurred to me a corporate brand like Pepsi had a lot at risk attaching its logo to random tweets. What I loved about that, however, was the giant brand was willing to move outside of its comfort zone. And the brilliance of the zeitgeist project is Pepsi integrated its brand into the customer experience of SXSW in an authentic and subtle way. “We’re social media folks,” said Karpf. In other words, they get it. Even though the community acknowledged Pepsi was behind the visualization, Karpf pointed out they were saying, “This is a brand, but it’s still awesome.”

The complete visualization can be seen in a series of one-minute videos on the Pepsicozeitgeist YouTube page.

For enterprises, it’s easy to see how this live-pulse tracking visualization could be used during a large Enterprise event such as Oracle’s OpenWorld or SAP’s Sapphire and ASUG events (providing, of course, everyone was a faithful Twitter user). But even beyond live events, the visualization could be customized to monitor conversations among key customers and fed to field sales forces. The location-based data could provide some very interesting G2 for key accounts. HR and internal communications groups could use the visualizer to monitor employee sentiment, as well. The uses go on and on. Worthy of some exploration.

Apture

Another impressive tool was Apture. I ran into CEO Tristan Harris at one of the sessions. Harris himself impressed me because he pitched me while waiting in line from his iPhone. He had his demo-to-go all queued up (presumably, in case he ran into, say, a reporter). In the blogger’s lounge, I signed up. I had a little trouble signing onto the demo with Apture because I don’t manage my own blog server files, but it seemed easy enough to install once you got past that hurdle. Apture is a free blogging tool that lets you instantly find any type of media and link them in-place. It’s used by the Washington Post, BBC News, and since SXSW, The New York Times. I see an enormous potential for this product inside the enterprise… again, providing we can get the Enterprise onto collaborative 2.0 platforms.

Check out Apture’s Twitter demo.

iStockPhoto

I also really appreciated a discussion I had with Marketing Manager, Yvonne Beyer, at iStockphoto. picture-1Here’s a tip for iStockphoto fans: CopySpace (TM). Check it out under Advanced Search. It enables you to “grid” your search by the area where you need room for copy on an image. GREAT tool for those large image slides. Not sure everyone is using iStockphoto in the enterprise, but you should definitely add this to your DIY toolkit. Some quick stats on iStockphoto include the company adds 40,000 new images and other media products a week that are vetted by 100 inspectors around the world. It has paid over $1.1M in royalties to artists, and many members of their community are making more than six figures with iStockphoto. Not really a pure enterprise product, but a great service for business folks who want to create their own visuals coupled with a strong business model that depends on community.

Even though SXSW is in Austin, I’m debating on going next year. There really wasn’t a lot of good enterprise content to be found. My plan is to liven up the Enterprise 2.0 conference (June, Boston), so we have a pseudo-sxsw of our own. I made a recommendation to the Advisory Board that we actively solicit sponsors for more parties and fun venues. Zoho sponsored a cruise a few years ago that was a lot of fun, for instance. Even though the sessions are always great, the best reason to attend events is to network in the traditional sense– meet and greet and share war stories face to face.

Hope to see you in Boston. Pack a lampshade.

UPDATE: Yvonne Beyer pinged me with a staggering correction: iStock pays out around 1.1 million in royalites a WEEK. She also added Lise Gagne from Montreal is one of the iStock contributors disclosing she makes 6 figures with well over 830,000 downloads to date. www.istockphoto.com/lisegagne