Slides from my ten minute talk today...
Notes will probably be shared on the Enterprise 2.0 Wiki.
Sam Weber the VP of Technical Services is a 1.0 veteran on the Enterprise 2.0 launch pad. No longer selling and supporting software that users hate to use. 50% of email is jumk, <20% find portals useful, 16 clicks to find information and 50% of searchers are successful. Sharepoint is a significant problem because of the diffusion of sub-portals. Big architecture slide time: they monitor data from multiple sources, automate relevancy, transform and deliver and manage information. We do more than RSS for integration.
Launches KnowNow Live. Has a Netvibes like homepage where you can drag content objects, with a sidebar on the left of channels to select from. Its an aggregator with a portal like UI you can personalize.
Stowe: I want more demo and less pitch. I see you having a hard slog battling the huge CMS guys who are going to provide this. Then you have consumer options like Pageflakes chipping at you. Like 9k people in your space.
David: I met these guys a year and a half ago, nice to see the launch. Those who do the aggregation make the money. You have a lot of good customers, but the question is it 9x better than email?
Ross: Good component in an overall aggregation play.
Dave Peak, on the Enterprise 2.0 launchpad, with Liquidtalk.
Right now, how many of you are checking your blackberry. The reality is we are out of time, are out of the offfice, have few cracks in the day to get it done and few chances to connect in real time. Difficult to collaborate when out of the office, hard to get knowledge on the go, productivity plummets when on the go. Attracting the best talent means helping the next generation get their information immeadiacy, place value on peer input. Roles are getting tougher while expectations are higher, with rising rep turnover rates, high dependency on top performers. A disengaged and disconnected workforce means lost productivity and lost revenue.
Our answer is mobile workforce engagement. Create, find, organize and push audio/video business content to mobile devices. Leverages the most powerful means for collaboration -- the human voice.
Liquidtalk portal lets a rep gain access to video and podcast files, and synch them to their mobile device. The inbox is about things pushed to his list by his boss to consume as well. Liquidcast lets you phone in a podcast to the Liquidlibrary.
Dave Coleman's take: This is more interesting, would like for new vendors to explain what they do in one slide rather than five or six. I thought this was more of DVD for conversations that you can timeshift. You are more like Tivo than iTunes. I find podcasts useful, but as information transfer than knowledge.
Stowe Boyd's take: I feel to compelled to talk about the slideshow because the buildup was different. I have the sense that this is a feature. Creating content seems like work, but if it was part of something larger, such as being part of Salesforce.com and its activity.
Ross' take: there are a lot of podcasting companies and tools in the space. This seems well focused for enterprise use. Every product starts as a feature.
Speaker - Toby Redshaw, Corporate Vice President, I.D.E.A.S., Motorola
Toby: We had a KM system where you can put information in if you had a password and could remember where stuff was and the password. Turned on wikis 4400 blogs and 4200 wikis. Didn't even tell anybody, just turned it on. Plus forums and FAQs. There is a community that has the collective knowledge of the last twenty years of the company. This accelerates the clockspeed of the company. We are implementing Baynote and Scuttle for folksonomy. I thought it would be utter crap, Arlo Guthrie doing IT, but it actually works, seeing heat maps and accelerating discovery and learning. Widgets, social networking with Visible Path. The key is that it just has to be so easy to use for adoption. Don't train, advertise it, did have to explain scuttle a little bit. The higher up you go in the heirarchy the less it is used, a good thing, the real work is elsewhere.
Oliver: What I see is a bit of a dichotomy. The marketing and communication departments, the lines of business are excited about these tools. But IT has a lot of fear. They look at these tools and think they are decentralized, emergent, not easy to control and my employees are doing this anyway. The command and control thought, keeping CIOs up at night. They learned a lot of lessons from IM, where employees used it anyway. A lot of companies say we can't lock it out, lets figure out how to do this. For those who are bringing it in, it is in an experimental phase. Far less common that you find someone that says lets change things. At Motorola you have cool tech that rolls out under the covers, something common, but it limits the potential impact.
Mike: Coming from the unified communication space, WebEx acquisition, getting into collaboration and deploying it ourselves. We want to give people more immediate access to their experts. A huge amount of growth in real time collaboration, moving people beyond the phone. A ton of inefficiency needs to be driven out. Integrating people, processes and data and making the communications a core part of the effort. Moving from an ad hoc deployment model to a multi million dollar initiative to redo our Intranet. Making it easier to build communities of interest, from mailing lists that overwhelm. Chambers is talking all about collaboration, for our organization and our customers.
Toby: You have to have a small team to do this. One manager and four people. The actual information is driven by 250 knowledge champions, selected by the community. A badge of honor to be a champion, shepard the wiki. I get calls that say, did you know we have 4000 blogs, are they doing anything bad? Yeah, probably. Can we control it? Yes, give me 400 people to monitor it, but it will kill it. They schedule a meeting and I don't show up and life goes on. I don't beat competition through better buildings, companies are human beings solving problems, driving opportunistic events by working with dumb stuff like buildings and cash. Its like Chess. You move once, I get to move twice. Who do you think will win? That's what a community platform gets you.
Oliver: To some extent the security question is paranoia, but all security is paranoia. Stealing a laptop is a bigger risk than email or blogging. External blogging means that with a big organization, someone is, and in regulated industries it is a serious issue. Adoption is happening in your enterprise whether you like it or not. In a survey, leaders estimated 20% were using these tools. Those making no investment had about 3-8%. Need to give guidelines about what is appropriate. SaaS lets a business unit leader get my entire group up and running for $20 on Socialtext, for example. Without involving IT. I have a lot of faith in Socialtext that they are a secure service and not losing data. But you have to have a story if it runs up the chain through IT to explain it. The final way is frankly Sharepoint. Have to put policies in place.
Mike: Cisco is really trying to change the way we work. We are moving to collaborative communities at all levels towards the goal of growth. We have people with deep expertise that are difficult to locate. The mandate Chambers gave to IT, which has done a great job, yet there are ways to better respond to users needs, so they are investigating Enterprise 2.0 and how to integrate it with communications. From the bottom up perspective there are wikis across the organization, they aren't integrated and you have to support it yourself. Wiki is a much better way for managing projects, such as a product launch that is a massive cross functional effort.
Toby: I was a young guy once. A quick comment, not to pick on Motorola because they are a competitor. You have to build it as a platform, with freedom to use, because if it gets big it will be out of control. Needs to be searchable, enable migration. But to answer the question, you can't tell people not to multitask. The old school pre web people were actually some of the biggest adopters. Super simple to use and really useful. These are people with greater knowledge and more to gain by using these tools. In some places, I don't know, Kentucky, it may not be that way. But we found the adoption curves were pretty much even across the age groups. 40+ a little more usage, but the closer you get to real work, the more it is used.
Oliver: some workspaces are earlier adopters and cultures for new technologies. At Northwester Mutual, their employees are mostly older, 33% retiring in 5 years, and they are struggling with this. In youth, 77% are creating content, but at 41-50 only 21% do. Even people who are reading, there is a group of people who don't even participate in this way. You are dead on with the knowledge champion role, the evangelists who can show people the way. One or two people you have the propensity to adopt start using them, and to better effect, and the guy next to them sees and copies so he is not at a disadvantage. The stealth launch needs support for the spread, for the evangelists, but having someone see how it is valuable to them in their business context is the real goal. Asked a law firm and they said the older lawyers weren't jumping on these tools, as they were with Blackberries initially, now he can't pry them out of their cold dead hands. Need time and familiarity, and the right to fork.
Toby: hard to measure the results. Old school companies built campuses for a reason, discovering people by bumping into them which indirectly helps projects. We see this happening 10k times a day. Inside IT we are seeing the cycle time on delivering product and getting stuff done really ramp up. A little medium is the message going on. I see less email, which is the worst thing going through an enterprise.
Oliver: really hard to measure. Same with email or a portal, a soft ROI. Hard to put saving five minutes a day into dollar terms. And it takes a leap of faith. At the same time it depends on the installation. One company that rolled out wikis, took a legacy database that tracked IT standards, said we can put it all in a wiki, have every IT employee update it on their own when things change. Moved two people off of the project and on to something else.
Toby: you can tell lots of stories like this. Before and after with a sales wiki: borrowing materials, building a pitch, find the 12 people who worked on something like it before. People in logistics see four red things in a dashboard, click on them to the wiki. I say cycle times are down 12%, they say that's great how did you measure this? I made it up, but it was based on the best information available.
Oliver: Employee surveys are a good approach. Surface anecdotes.
Mike: (Ross: honestly, I think Cisco will have more to talk about when it comes to results, without defaulting back to unified communications, by next year)
Toby: The question how do you help people understand how to search and tag appropriately. We have 2600 users on Scuttle, but a bunch of people who look across tags. All of it is a simple one page description of how you do it, if you need more it is not the right solution. I stole a rule from the CIA: if you can't feed the team in two pizzas, get someone off the team.
Following the Forrester and McKinsey studies yesterday, I stumbled upon this from a forthcoming EIU report:
One of the most striking bits of data from the EIU’s work (surveying over 400 executives, over 40% C-level) is that over 80% of respondents reported that they view the 2.0 technologies as “an opportunity to increase my company’s revenues and/or margins.” Fewer than one person in 20 view the 2.0 technologies as a threat, and fewer than one in 5 expect it to have no significant impact on their businesses.
The EIU survey also indicates that these executives have formed quite strong opinions about where 2.0 will impact most strongly. Over 75% of them report that the greatest impact from 2.0 will come in “the way my company interacts with customers.” Approximately 40% report that they see strong impacts coming in the way their company is viewed by customers and in the way employees interact with each other and the enterprise. And 40% also report that they see 2.0 impacting their business models.
Value propositions are either increasing revenue, decreasing soft costs, decreasing hard costs or managing risk. I'm encouraged to find a survey where results are positive about the former.
Nick Carr reports on two studies of Enterprise 2.0 adoption by large enterprises:
Some hard data is coming out this week on the adoption of Web 2.0 tools by companies. Yesterday, Forrester released some results from a December 2006 survey of 119 CIOs at mid-size and larger companies. It indicated that Web 2.0 is being broadly and rapidly brought into enterprises. Fully 89% of the CIOs said they had adopted at least one of six prominent Web 2.0 tools - blogs, wikis, podcasts, RSS, social networking, and content tagging - and a remarkable 35% said they were already using all six of the tools. Although Forrester didn't break out adoption rates by tool, it did say that CIOs saw relatively high business value in RSS, wikis, and tagging and relatively low value in social networking and blogging.
McKinsey did a broader survey of 8,300 executives with similar demand and adoption patterns:
It found that social networking was actually the most popular tool, with 19% of companies having invested in it, followed by podcasts (17%), blogs (16%), RSS (14%), wikis (13%), and mashups (4%). When you add in companies planning to invest in the tools, the percentages are as follows: social networking (37%), RSS (35%), podcasts (35%), wikis (33%), blogs (32%), and mashups (21%).
But the highlight of the Forrester study for Nick and Richard MacManus is CIO attitudes towards incumbent vendors vs. startups.
74% of CIOs said they'd be more interested in investing in Web 2.0 if all the tools were offered as a suite, and 71% said they'd prefer the tools to be "offered by a major incumbent vendor like Microsoft or IBM [rather than] smaller specialist firms like Socialtext, NewsGator, MindTouch, and others."
Nick concludes: "You can bypass the CIO on a small scale, but it's difficult to bypass the CIO when it comes time for a company to standardize on a particular product and vendor." Yup. It has always been the case for enterprise software.
CIOs of large enterprises will largely give preference to the incumbent vendors they have relationships with to realize economies and standardize architecture. Especially when almost all of their budgets are sunk with maintainence fees of said incumbents. Part of expressing preference for suites is that suites are now available, beginning with SuiteTwo (Socialtext, Six Apart & Newsgator best of breed core offerings). I find the results of the survey very encouraging -- that SuiteTwo is a comparable preference to Microsoft or IBM.
Some CIOs will go what what (or whom) they know and stick to existing vendor relationships. That's why we created SocialPoint for the best-of-breed wiki to work with Sharepoint. As Lawrence Liu from Microsoft said: "More and more SharePoint customers who want advanced wiki functionality are looking to the specialized wiki ISVs like SocialText to provide it with an integrated user experience in SharePoint by way of 3rd party webparts."
As I've said before, when competing in a market of abundant choices, you have to be the choice leader. Choice is good. In some cases, you create choice through channels and partnerships. But you also have to do so through your core offerings. Today we have more deployment options than any established or upstart vendor.
Part of why we have choice is not all of our customers are CIOs of large enterprises. Lee Bryant of explores choice and the convergence of SaaS and Enterprise 2.0 in Bottom-up and inside out - the future of enterprise IT?
Euan's subtle insight on how to do Enterprise 2.0 is that there are powerful grassroots energies to not only tap into, but if you impede them you risk your deployment more than anything. While there is a certain inevitability of Enterprise 2.0 proliferation thanks not only to SaaS, but namely open source, his message is less about the tools than the demand for them and practices that make it work.
Dion Hinchcliffe explores this and notes "Those that represent to be doing Enterprise 2.0 solely through tool rollout and no infrastructure remediation will almost certainly be among those reporting less encouraging results."
This is all in the context of the alternative to how this post began. Besides large enterprise CIO preferences, there is the bottom up. And smaller companies.
Lee discusses the challenges of a completely bottom-up approach:
On the technical level, the integration challenges are non-trivial:
- identity / Single Sign On (SSO);
- internal application integration;
- legislative obligations for data retention, privacy and audit; and,
But the integration of people, practise and (dare I say) process is even harder, with challenges such as:
- devolving responsibility and promoting a DIY culture;
- encouraging people to grow their own internal and external networks;
- stimulating conversation and debate by overcoming fear of exposure; and,
- for many people, simply overcoming the idea that any form of online communication beyond email is "not part of their job."
Those challenges become opportunities when you have buy in from the top down and IT supports. And when you have actual leadership, as Suw Charman noted: you have the best adoption strategy. Lee specifically explores SaaS and rightly notes that it isn't a fit for many enterprises that have customization needs. He sees two trends in SaaS that have potential to close this gap:
The first is in the area of specialised appliances or systems that live inside the firewall, where they can happily integrate with internal apps ad data, but which can also be updated and fed by managed connections that extend outside the firewall. The Socialtext managed appliance seems to be a good example of this approach, which is a workable compromise between SaaS and purely internal systems.
The second area is enterprise software that takes advantage of managed connections with web services to add value to internal systems. Movable Type was a pioneer of this approach with its blog ping service to feed a public list of recently updated MT blogs. Their impressive roadmap for the enterprise version of this market-leading blog platform suggests they will take this a lot further in MT v4.
You really should go read his post, at least for the Star Wars metaphor. He concludes that SaaS still has a way to go:
...But the emphasis will shift from software, which is just a mechanism, to services, which is the actual product. Some of these will be new and imaginative forms of what we might recognise as applications, but many will be pure data or data transformation or sharing services. But whilst we will see adoption among SMEs for cost reasons, enterprises will not embrace SaaS for their mission critical systems or data until such a time as we find robust solutions for the key integration and data management challenges.
I see promise on resolving some of these challenges for the enterprise from innovations borne on the web. OpenID is a good start for identity and authentication, and will find its way into the bowels of enterprise directory authorization. RESTian APIs are shaking up pre-conceived notions of SOA. Open Source provides more options for not only these challenges, but is the dark horse for Enterprise 2.0 the adoption race.
Last week we quietly launched the Socialtext Managed Service Appliance. Initially we thought this infrastructure innovation would simply give us some operational efficiencies. But as we ran it by customers, passing their security audits and discussing how it changes IT Operations -- we discovered it was something greater, the delivery of Software-as-a-Service behind the firewall.
When we first created the Appliance deployment option, we worked hard to streamline administration, from setup in 10 minutes to simplifying upgrades. Fedex a CD, have someone stick it in and type go for an upgrade. Admittedly, we had one notable failure. One customer put the CD on top of the server, got some coffee or something, came back and couldn't get it to go. Turns out CDs melt. So we started shipping USBs (download has always been an option too).
Practically, the Appliance model is halfway between the latency of SaaS (near zero) and Onsite deployment (near infinity). Even if you make tasks like a routine upgrade fast and simple, it doesn't mean they will actually happen. In some IT departments, particularly those who have outsourced IT with firm SLAs, an upgrade is considered a degradation of service level!
This means that even if the upgrade includes an important patch or desired feature, the vendor gets a scheduled window of opportunity, measured in months or quarters, which can be a lifetime. On our SaaS version we do upgrades measured in hours or days. Given the constraint to get our best stuff behind the firewalls of customers we developed the operational discipline and QA processes to really give them our best stuff. We will serve no wine before its time.
As is common practice for startups, eating our own dogfood (or drinking our own champaign) means our company runs on staging versions. Not the highly experimental branches you might find in our open source repository, but we bang on it before you do and sometimes it bangs on us.
With a SaaS Appliance, our general release process remains relatively the same, but accelerated. Turns out IT departments not only love how they don't have to touch it, it simply works, but they can realize a lower TCO -- and shift the SLA burden to the vendor.
"SOA's impact on SaaS has lead to development of the Extended-Enterprise Service Bus (X-ESB) as a managed-service appliance … We expect to see an increasing number of SaaS Appliances emerge over the next few years as SaaS becomes fully integrated into the enterprise."
One forward looking enterprise we worked with has the strategic version to move all applications off of their network and rely on SaaS across the public internet. Not everyone has this vision. And regulations dictate that some never will. But nobody is in a better position to take the pulse and manage the health of software than the vendor. A Managed Service Appliance is a model that meets security and regulatory needs, enables the service of SaaS while offering SOA integration within the enterprises' security framework. Not all enterprise software will be delivered this way, but it is an option on the rise for good reason.
SEE ALSO: Why Appliances Are Good
It is as though he nailed it to the church door, so I'm quoting Euan in his entirety:
And then your bright, thoughtful and energetic staff will do it for you. Trouble is they will do it outside your firewall on bulletin boards, instant message exchanges personal blogs and probably on islands in Second Life and you will have lost the ability to understand it, influence it, and integrate it into how you do business.
The second easiest way is to find ways of allowing this to happen inside the firewall which can be as simple as sticking in some low cost or free tools and then making sure your existing organisation can:
The third easiest way is to do the second easiest way and then engage those who would have done the easiest way and get them to help you:
And the hardest way .......
Andrew McAfee and Karim Lakhani created the first Harvard Business School case on Wikipedia which is available for free online and published under the GFDL. The case explains Wikipedia mechanics and the story of the Enterprise 2.0 article for deletion debate. I guess we now have peer reviewed evidence that not only does Enterprise 2.0 exist, but Wikipedia exists.
Andrew shares how he will discuss the case with his students:
A small dream of mine came true today. We've been preaching an ecosystem of tools for some time now. We've helped customers stitch them together in interesting ways. In fact, Andrew McAfee's original article on Enterprise 2.0 was borne from observing what was happening in one of our customers and projecting into the future. Well, future happens fast.
Looking back, look what I blogged just before the first Web 2.0 conference:
I'm providing a workshop on Enterprise Social Software with Socialtext Customer Mike Pusateri from Disney. You might recall his great presentation at the at the O'Reilly Emerging Technology Confererence in February. Mike and his team are leading the way with how they are using lightweight web-native tools as a platform for productivity. Not just how they use Socialtext for project communication, but how they stitch it together Moveable Type and Newsgator for an ecosystem of tools with RSS.
That was then, this is now. This morning I provided a workship on Enterprise 2.0.
Today we announced SuiteTwo, The Enterprise 2.0 Suite powered by Intel. Intel is distributing the Best of Breed wiki (Socialtext), blog (Six Apart), Feed Aggregation (Newsgator) and Feed Publishing (SimpleFeed), supported by Spikesource, through its channels including Dell, NEC, Ingram, Novell and Red Hat.
This fulfills Andrew McAfee's vision of Enterprise 2.0. In a box. Made simple for Small-to-Mid-sized Enterprises. Extensible because we've all supported open APIs. Enterprise 2.0 is freeform social software adapted for organizations. SuiteTwo is the first offering to realize the SLATES paradigm:
SLATES = Search | Links | Authorship | Tags | Extensions | Signals
In the latest issue of the Harvard Business Review, McAfee went further to distinguish this Network IT (NIT) from Functional IT and Enterprise IT:
As the DrKW example illustrates, NIT’s principal capabilities include the following:
• Facilitating collaboration. Network technologies allow employees to work together but don’t define who should work with whom or what projects employees should work on. At DrKW, ad hoc teams have formed because employees read one another’s blogs. These teams have used the wiki to accomplish tasks, and they have disbanded without orders from senior executives.
• Allowing expressions of judgment. NITs are egalitarian technologies that let people express opinions. DrKW employees use blogs to voice their views about everything from open-source software to interest rate movements.
• Fostering emergence. “Emergence” is the appearance of high-level patterns or information because of low-level interactions. These patterns are useful because they allow managers to compare how work is done with how it’s supposed to be done. Emergence is also valuable for users. For instance, employees can easily search and navigate DrKW’s blogs and wiki for trends and data even though nobody is in charge of making them easy to use.
...Employees exploit older NITs such as e-mail and instant messaging on their own, but business leaders have a role to play in exploiting newer technologies like blogs and wikis. They can help sustain and increase the use of complements to make the technology continually more effective, primarily by guiding users. Darren Leonard, a managing director in the global equity derivatives business at Dresdner Kleinwort, recalls how he got his colleagues to use the company’s wiki: “First, if a wiki has no structure, it’s perceived not as an opportunity but as anarchy, and our people have no time for anarchy. I went back to my initial pages and rewrote them to be a lot more directive. For example, I made a page with the agenda for an upcoming meeting and asked people to add to it. Second, wikis have to be clearly better than other ways of collaborating. There have to be uses [for them] that demonstrate their power. One of these uses came prior to a special senior management meeting where we could bring questions from our groups and get them answered. I put up a page…asking my [team members] what questions they wanted me to ask on their behalf. People used the page to post questions, edit them, and discuss which ones were the most important and why. That really accelerated wiki use. Finally, old habits are hard to break. The tendency is for people to keep using e-mail because that’s what they know....I have to [tell them], ‘I’m not reading e-mails on this topic. Use the wiki’ or ‘Everyone’s assignments are on this page—use the same page to report on progress.’”
Lead users and enterprises already work this way today. Only they do so without usable efficiency. Integrated single sign-on, search and tag cloud are just the beginning. One click subscription to a page, blog post, search query, report, weblog and wiki make feeds usable (unlike today's user experience, when they click on an orange icon and think their browser is broken). Rapidly form groups, draft together on a wiki page, publish to a blog and track results.
Beyond making such tasks efficient, the benefits to productivity, discovering emergent intelligence and high-engagement marketing are significant. Very soon a user will wake up in the morning, log in to SuiteTwo, immediately recognize something emerging. With the top blog posts telling her what the company is talking about, the top wiki pages showing her what people are working on, top posts from the outside that her company is subscribed to and the feedback from what they are publishing
-- something will emerge. She recognizes the opportunity, pulls on the social fabric and easily forms a diverse group of experts. They follow new feeds and generates others while working with a little productive friction. They develop a plan and draft a new offering in the wiki. They publish to a public blog and track where it goes. The feedback loops continue, she goes home for the day and the organization is bound to adapt again.
This isn't your Dad's enterprise, but one you will be working with soon.