When I spoke at KMWorld07 in Silicon Valley last month, I sat in on the presentation made by Charles Armstrong of Trampoline Systems. One of the interesting points he made is that Web 2.0 is the first set of technologies that have been developed in the consumer space before being taken into enterprise use. All other major information technologies have first been developed and used in large organizations before being adapted for consumer use, not least by becoming accessible on price.
I’ve often observed that Enterprise 2.0 initiatives largely stem from executives seeing their children using sites like Facebook, Wikipedia, del.icio.us, Digg, YouTube or Remember the Milk, and thinking, “Hmm, I can see that kind of tool being useful inside my organization.”
It is very useful to think of it specifically as that issue: adapting consumer tools and software to be useful inside organizations.
One obvious issue is that of scale. As I point out in my Web 2.0 Framework, one of the key aspects of Web 2.0 is that it “collectively transforms mass participation into valuable outcomes.” In the case of the open consumer web, that mass participation can amount to literally hundreds of millions of people. Organizations at the most have hundreds of thousands, and often far fewer people. This means there are a range of issues in effectively scaling Web 2.0 applications to be valuable inside organizations. However the other side of that is that far more detailed information is available on workers inside companies, including their current projects, training background, work objectives and more, all of which means that aggregating information can be far more usefully applied than in the open web.
Building on the theme of adapting Web 2.0 technologies to be valuable inside organizations, Network Computing has recently published a very good piece titled Can Web 2.0 evolve into an Enterprise Technology? It’s well worth a read. Some of the points it raises:
* Since Web 2.0 gives power to users, it can reduce IT staffing levels. Nutritional products firm Shaklee has reduced IT staff by 20%. It is a significant change issue to have IT staff support these shifts.
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ERP: automating processes | Enterprise 2.0: enabling knowledge work
By Ross DawsonThere has been some very interesting discussion over the last week about enterprise software, which began with the question of whether it is sexy or not. It has since covered a wide range of related topics, including the usability of enterprise software, industry structure, how it is bought, its role in attracting talented staff, and whether it can get people laid. (Selected references at the bottom of the post.)
In all of this, there was a gem that I think is well worth exploring. In the context of market opportunities for the biggest enterprise software firm of them all, SAP, Sigurd Rinde wrote (in part):
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Adapting consumer Web 2.0 for use in the enterprise
By Ross DawsonWhen I spoke at KMWorld07 in Silicon Valley last month, I sat in on the presentation made by Charles Armstrong of Trampoline Systems. One of the interesting points he made is that Web 2.0 is the first set of technologies that have been developed in the consumer space before being taken into enterprise use. All other major information technologies have first been developed and used in large organizations before being adapted for consumer use, not least by becoming accessible on price.
I’ve often observed that Enterprise 2.0 initiatives largely stem from executives seeing their children using sites like Facebook, Wikipedia, del.icio.us, Digg, YouTube or Remember the Milk, and thinking, “Hmm, I can see that kind of tool being useful inside my organization.”
It is very useful to think of it specifically as that issue: adapting consumer tools and software to be useful inside organizations.
One obvious issue is that of scale. As I point out in my Web 2.0 Framework, one of the key aspects of Web 2.0 is that it “collectively transforms mass participation into valuable outcomes.” In the case of the open consumer web, that mass participation can amount to literally hundreds of millions of people. Organizations at the most have hundreds of thousands, and often far fewer people. This means there are a range of issues in effectively scaling Web 2.0 applications to be valuable inside organizations. However the other side of that is that far more detailed information is available on workers inside companies, including their current projects, training background, work objectives and more, all of which means that aggregating information can be far more usefully applied than in the open web.
Building on the theme of adapting Web 2.0 technologies to be valuable inside organizations, Network Computing has recently published a very good piece titled Can Web 2.0 evolve into an Enterprise Technology? It’s well worth a read. Some of the points it raises:
* Since Web 2.0 gives power to users, it can reduce IT staffing levels. Nutritional products firm Shaklee has reduced IT staff by 20%. It is a significant change issue to have IT staff support these shifts.
Read more →
Predictions for the marketing and media industries in 2008
By Ross DawsonThe December/ January issue of Marketing magazine includes predictions for 2008 from an array of industry commentators, including myself.
One of the quotes they took from me was:
Some of the other predictions for 2008 I made include:
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Strategy in a networked world for professional service firms
By Ross DawsonThe UK magazine Legal Week has just published an article co-authored by myself and Josh Bottomley, the Managing Director of LexisNexis UK, titled Managing a Law Firm: A networked world.
The genesis of the article is that I will be delivering the keynote to a group of Managing Partners of major law firms in London in late February 2008 for an event organized by LexisNexis. As a prelude to the event, I wrote this article in collaboration with Josh.
The article is available on the Legal Week website, and also below.
Managing a Law Firm: A networked world
Five key factors are driving today’s economy:
* client sophistication;
* connection;
* transparency;
* governance; and
* modularisation.
These forces are steering the professional services sector towards commoditisation, where clients perceive minimal differences between most offerings and often squeeze their suppliers on fees. Only legal services suppliers that actively engage their clients in deep, collaborative relationships are able to differentiate themselves.
We suggest four approaches to improve management, customer service and ultimately profitability.
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The convergence of the Internet and TV: how will it happen?
By Ross DawsonSeveral media executives have asked me about the convergence of the Internet and TV over the last couple of months. I now have a nice reference point for them about the short-term obstacles and possible solutions, courtesy of Nick Wingfield in an article in the Wall Street Journal titled The Internet. The TV. They have even created a brief video – as below – to provide a quick overview of the topic.
Nick frames the issue as a series of problems with potential solutions:
THE PROBLEM: Too Many Boxes
THE SOLUTION: Blend Boxes
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Corporate Australia (finally) engages in Web 2.0 and virtual worlds
By Ross DawsonThere was a good article in The Australian on Tuesday titled Taking residence in virtual worlds, which looked at what some of Australia’s leading companies are doing with Web 2.0 technologies. It quoted me:
I have spent much of the last month or so speaking to Australia’s leading companies, technology journalists, and thought leaders in the field in order to uncover the best examples of Enterprise 2.0 in Australia to showcase at Future Exploration Network’s Enterprise 2.0 Executive Forum on 19 February 2008 in Sydney. More on what I have uncovered and the event itself shortly – there are many very exciting developments on the forum to share.
Certainly what I have found is that just about every major organization has at least a toe in the Enterprise 2.0 waters at least somewhere within the folds of its operations. One innovator in one of Australia’s largest organizations, with a larger international than domestic presence, told me of a number of interesting initiatives in one of its business units, then said, “but of course we’d be forced to shut it down if the senior executives found out about it.” In other cases initiatives are not deliberately hidden from executives, but they receive no support. However a good proportion of organizations are engaging in officially sanctioned pilots of wikis or blogs, taking steps to make social networking useful, or using other social media tools. The majority are pretty early stage, and not experiments they care to share externally. However we are getting to the point at which there are solid examples of corporates getting real value from Enterprise 2.0 approaches.
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Corporate bloggers set up council to share and promote best practices
By Ross DawsonThis is good. A new organization, the Blog Council, has just launched. To quote their release:
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Review of Day One of Enterprise 2.0 conference – Sydney 3 December
By Ross DawsonA quick review of Day One of IIR’s Enterprise 2.0 conference. After my opening keynote, including my six lessons on Enterprise 2.0, Steve Hodgkinson of Ovum addressed the question, ‘Does Your Organisation Need Enterprise 2.0?’ One of the great examples he used is fixmystreet.com, which allows individuals to submit work orders to their local council to fix things. While this is just a website someone has set up, councils are actively responding to the requests. Or at least some are, and it’s easy to find which councils are and aren’t responding to their constituents’ complaints. Steve also presented a useful framework on the relevance of Enterprise 2.0 to organizations, as below, which comes from an interesting Ovum report on Enterprise 2.0.
Factors that influence the extent to which an organization will need, or value, enterprise 2.0
Nigel Watson of Microsoft described the history of blogging at Microsoft, from the early days through to the breadth of blogging across the enterprise that there is today. While I’m familiar with the history, it was good to hear it again. I didn’t realize that Microsoft doesn’t have an explicit blogging policy, and that Microsoft’s general employee policies are seen as sufficient. One of Microsoft’s interesting internal social media channels is Academy Mobile, which uses mobile delivery for its online learning content.
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Keynote: The Potential of Enterprise 2.0 – Six Lessons for Success
By Ross DawsonI will be doing the opening keynote at tomorrow’s Enterprise 2.0 Conference in Sydney. The slides are below for reference purposes for those who attended. As always, note that the slides are not very meaningful without the accompanying speech, explanations, and case studies.
While the slides are similar to the presentation I did at KMWorld in Silicon Valley a few weeks ago, the overall positioning and messages are quite different.
This is best reflected in the closing “Six Lessons for Enterprise 2.0” I will offer in tomorrow’s keynote, summarized below:
1. Make governance an enabler. The reason why most large organizations are slow to adopt Enterprise 2.0 tools is that senior executives are uncertain about the implications, and as a result cautious or worse. Governance needs to be in place to allay those fears, without stifling the emergent, participative nature of how the new tools create value for organizations.
2. Start from business applications, not tools. Far too often people want to implement blogs, wikis, tagging, or other tools. This is completely the wrong way around. The starting point has to be a specific business application, such as project management, product development, sales support or any number of functions that relate directly to business value.
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Presentation: Transcending commoditization in professional services
By Ross DawsonOn December 5 I am giving a “View from the Top” online presentation to US and European members of the Association of Executive Search Consultants on Developing Knowledge-Based Client Relationships:The Key to Avoiding Commoditization.
There is no question that commoditization is one of the most powerful driving forces in the global economy. While this has been starkly obvious in product markets such as textiles and manufactured goods, commoditization is also fundamentally shaping professional service industries.
If clients believe that professional firms are replaceable, then they are commodities. Even if firms boast top talent and long-standing relationships, it is self-deception if you believe no-one else can do the work. The ‘black-box’ style of professonal services that relies purely on expertise is dated, and encourages clients to shop around. Ultimately the only thing that cannot be replicated and commoditized is a deep, collaborative, “knowledge-based” relationship. The field of competition for professional firms is increasingly the ability to build these high levels of engagement with their clients. This requires, among other capabilities, building effective networks to deliver value to their clients.
The slides for the AESC session are below (as usual, do not expect these to make complete sense without my accompanying presentation):
For more detail you can download chapters from Developing Knowledge-Based Client Relationships: Chapter 1 on the big picture of professional services and knowledge-based relationships, and Chapter 6 on implementing key client programs.