Over the past month, I’ve been wrestling with blogger’s block. A number of items have kept me from blogging, but the key agitator is the current economic crisis. I’ve attended conferences; I’ve participated in discussions on social media; I continue to Yammer and Twitter, but in the back of my mind a blaring alarm is sounding off. It seems so many in the 2.0 community (who still have a job or have clients) is either in denial or is missing the bleak macro picture here.
This weekend I was watching the Sunday morning news roundups, Former Secretary of State James Baker, speaking on “Meet the Press” reiterated what we’ve been hearing for weeks now, “…it is very serious. It’s far worse than the downturn that we saw back in the 1987 when we had a stock market collapse when I was Treasury secretary. That one was much less broad and severe, but even that took us two years to come out of.”
Now, no disrespect to my late GenX and GenY readers and friends, but Boomers have some experience here that may prove helpful. Those of us who were engaged in the technology workforce in the late 80s and early 90s had to move fast to help our customers cut costs and work smarter. For me, that meant the birth of Business Process Reengineering and Outsourcing. For others, it meant the birth of Enterprise Resource Planning or ERP. Now, you could argue whether any or all of these initiatives actually delivered the results intended, but the fact remains: lots of software developers and consultants made a huge market in downtime adversity.
This recession/depression is poised to eclipse any downturn we’ve seen in our lifetimes. As I canvas the Enterprise 2.0 landscape, I find myself wondering: what is our killer economic crisis app/movement? Twitter? Facebook? Will we save the U.S auto industry by social networking?
I can assure you, there will be no Federal bail outs for 2.0 startups. Some startups will stretch their life expectancy with VC funds, but at the end of the day, it’s show time. How will you help your customers and future customers grow or at least sustain their business through this economic downturn?
The Enterprise 2.0 Advisory Board is convening in an online forum to discuss themes for this year’s conference. The conversation quickly migrated beyond the soft benefits of social collaboration to the hard, measurable benefits businesses need when navigating through tough times.
Mike Gotta of analyst firm Burton Group contributed this remark:
“Some of the phrases I keep hearing: 1. Efficiency (cost containment/avoidance, streamlining, etc.) 2. Execution (all-things-lean, process refinement) 3. Effectiveness (process and people performance, measurable productivity) 4. Rationalization (of budgets, of projects, of platforms) 5. Governance and metrics to support the above. Operations (run the business) and investment to protect top/bottom line engines (grow the business) are still ok – transformation unless it maps into some of the above areas is more discretionary – a good strategist will not cut to the bone… but overall – it’s a run/grow the business more than transformation. Business transformation (at least in my head) is more than just changing a process. Anything “soft” is getting a hard look – sure – some savvy execs will keep a portfolio perspective and still invest in some long-term areas and not slash things to the point that when the economy rights itself they are strategically behind but they (1) may not have any choice and (2) may not get broad agreement from their peers.”
Even Stowe Boyd, who coined the term “social tools” back in 1999 had this to say:
I am one of the biggest advocates for ‘social’ in the world, but I think it is too limiting for E2.0, and perhaps off message in the econolyptic times we are in.
I think the right theme is something more around ‘making the web work for business’—some blendo idea that allows E2.0 to mean
a/ the adoption of web tools and culture within the enterprise,
b/ the use of the web to better connect the enterprise to the greater world, and
c/ most specifically, the use of web 2.0 IT principles to reinvent enterprise IT, (like cloud computing, AJAX, web services, and so on).
The bottom line is: focus on the bottom line. We are collaborating for survival.
Update 12/01/08: McAfee blogs on ideas for saving Big Auto.