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Is Enterprise 2.0 a Savior or a Charlatan? How Strategy-Driven Execution can pave the path to proving legitimate business value
"In this post, I want to describe what I saw at the conference, what I believe to be the missing components of the full Enterprise 2.0 picture, and also discuss how becoming "Driven to Perform" by understanding Strategy-Driven Execution is the best way to justify the value of Enterprise 2.0 in your organization.
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I believe a significant part of the problem that crops up in the Enterprise 2.0 value discussions stems from the fact that the champions of Enterprise 2.0 significantly underweight the complexity and pervasiveness of the existing information technologies in the enterprise and the reasons why these technologies evolved.
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They key activity steps of enterprise business processes embodied into today's ERP, CRM, SCM et al software, such order-to-cash, procure-to-pay, hire-to-retire, or record-to-report need to be highly structured for a variety of reasons, not the least of which is efficiency, their primary reason for being, but also for significant compliance concerns they address. I don't foresee a point any time in the near future where enterprises will leverage Enterprise 2.0 principles in the core of accounting, or payroll, or order management because there are serious risks to doing so for a business. These enterprise business processes are complicated enough without any unstructured processes surrounding in them, as you can see here in this offer creation process which we diagrammed in Driven to Perform in our chapter on Risk-Aware Marketing Performance Management.
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Does Social Software Have a Place in the Enterprise?
"To save time, Byrne took a vote and the audience helped narrow his discussion down to a handful of topics:
* Can social software consistently bring real ROI?
* Will the social software marketplace consolidate?
* Should we socialize existing applications or invest in new social software?"
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I take the no side on this with the exception of certain scenarios," he said of social software consistently bringing ROI.
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Similarly, another audience member mentioned treating social software as a separate entity is where the problem lies. Someone else suggested differentiating between two different architectures: is the business process correct for a 'webified' experience?
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An alternative way to define IT project results
IT projects need define a combine the engineering work to be done and the results that they create. Doing so requires more than giving the project a business based name. Here are a few steps for an alternative way to define an IT project.
Combining these three ideas, when companies pay to execute a project, it’s not the project they want, it’s the result. They want more revenue generating customer relationships, not processes around a CRM system or even the capability to look up customer names. What they want is the result.
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First, companies don’t pay for activities, they pay for results. As explains in the blog post http://blogs.gartner.com/mark_mcdonald/2009/06/30/activities-vs-results—the-difference-makes-all-the-difference/From this post.
Second, those results come from changing capabilities which are a more powerful definition of the business. So it’s the capability people want. http://blogs.gartner.com/mark_mcdonald/2009/07/02/capability-is-more-powerful-than-process/
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Results can be defined in the following ways:
Web 2.0 in the Enterprise 2.0
And the most successful projects have at least two things in common: They were built with a key business process in mind, and predicting their ROI was not part of the equation.
Reflections on E2.0 2009
The blogosphere moves quickly. You can find many excellent summaries of the events of the 2009 Enterprise 2.0 conference in Boston. But only now are more reflective posts emerging. What is the point of Enterprise 2.0? Can its benefits be measured?
Michael Krigsman started things by writing about the Kumbaya effect. The opportunities for better communication and collaboration afforded by Enterprise 2.0 technologies are interesting, but are they valuable?
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So maybe we should consider Enterprise 2.0 a movement, a management style, or a vibe, instead of something intrinsic to the way business will be done in the future.
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So maybe the right thing to do, if you believe in E2.0, is to engage directly with knowledge workers themselves. Maybe the business of Enterprise 2.0 is not about selling the CEO, CIO, or IT director on the merits of transparency, immediacy, and authenticity. Maybe it’s about winning the hearts and minds of business professionals with tools that make their work easier.
How Cisco uses Social Media
Gibson opened her talk with a statement that captures the essence of social media at Cisco.
“In a world where everything is open, we value openness and transparency.”
There are three ways that Cisco uses social media especially blogs to drive customer engagement:
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While Cisco is very focused on ROI, there are no standard metrics, so it uses a variety of metrics. For example: they look at the free media impressions from social media activities and measure how much does that would have cost them to assess cost savings. However, since social media is resource and management-intensive, the cost for it is still fuzzy.
Productivity in a Networked Era – Assessing ROII (Return on Investment in Interaction)
Today’s networked era requires a new way to make investment decisions that incorporates intangible assets and more accurately depicts how value is created.
The industrial age has run out of steam. Look at General Motors. Look at Chrysler. We are witnessing the death throes of management models that have outlived their usefulness.
The network era now replacing the industrial age holds great promise. Networked organizations are reaping rewards for connecting people, know-how and ideas at an ever-faster pace. Value creation has migrated from what we can see (physical assets) to intangibles (ideas). Look at Google and Cisco.
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ROI is an accounting and financial management concept businesses use to decide where to make investments and to assess the success of investment decisions after the fact. ROI reduces both return — R, what you expect back — and investment — I, what you expect to put in to numbers — making it possible to compare one investment opportunity to another. The numbers tie back to categories on the balance sheet and income statement, (i.e. tangible assets and hard-dollar returns).
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Measuring intangibles involves making judgment calls, so managers often exclude intangibles from their ROI calculations. Several purported authorities on calculating ROI suggest taking intangibles into account by putting them on a list but refusing to estimate their value. This leads you to comparing numbers to words, apples to oranges.
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4 idées pour booster l’entreprise 2.0… pour de vrai !
En complément de cette vidéo qui est longue mais très intéressante, voici 4 idées qui résument mes positions :
Idée 1 : Le Web 2.0 est relié au comportemental et non au financier
Idée 2 : L’art du management paradoxal
Idée 3 : Le Web 2.0 pour vendre et recruter, pour développer sa notoriété et gérer sa réputation
Idée 4 : Dissoudre un individu dans le collectif nuit gravement… au collectif !
Voici le détail de ces idées :
Community 2.0
Challenges in building virtual communities
In reflecting on the experiences accumulated to date by companies seeking to build virtual communities, I’d like to focus on four challenges:
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First Challenge – Language.
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Second challenge – Integrating diverse skill sets
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Reconciling social computing with the enterprise
This increasing distance between these two worlds creates a gap — a disconnect, even — that increasingly cuts organizations off from their most valuable assets (their people) and also exerts a subversive force on organizations as their workers help themselves to the tools of their own volition, bring their (and arguably better) new behaviors and processes to work, and try to get things done with them, whether that’s crowdsourcing, Enterprise 2.0, online customer communities, etc.
What Is Execution 2.0?
All of these engagements enabled me to learn the different nuances of each market and the current status of the markets use of social technology. In each case the fundamentals of engaging and listening to the market of conversations remained the same. The engagements were centric to helping the organization build an effective strategy and related tactics. In each case the one critical element that would determine the success of the proposed plan was the effective execution of the plan.
Will Management Buy Into The Plan?
In management, the ultimate measure of performance is the metric of management effectiveness which includes execution, or how well management’s plans are carried out by members of the organization. Execution is not a singular or silo process rather it encompasses the following attributes:
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Consider the brands who have tried to execute initiatives using social technology. The old 80/20 rule applies. 80% or more fail while 20% succeed. Why? Because 80% consider a Strategic 2.0 plan as a marketing initiative rather than a plan to transform the entire company into a “connected” organization 2.0 which leverages a Strategic 2.0 plan. Execution 2.0 requires a total organizational transformation.
A Curious Case of Enterprise 2.0
When was the last time you used a sequence of dot-separated numbers to describe a large official organization? Yet all the talk about Government 2.0 doesn’t seem to surprise anyone. The lack of surprise however doesn’t imply shared understanding. Just try asking ten people who use the term Web 2.0 what exactly it means – and most likely you will get ten different answers.
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AIIM’s year-old survey, which found that 74% of surveyed organizations had no idea what E2.0 meant or how it could be meaningfully applied, likely would’ve come back with a similar numbers today.
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E2.0 is still primarily a vendor space, dominated by ISVs selling software to businesses who haven’t really asked for it. It is simply not a demand-driven market. By contrast, just think of CRM or payroll software. You don’t need to convince businesses they need that.
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Preliminary Survey Results: Enterprise 2.0 Adoption
We presented a community survey to crowdsource answers on Enterprise 2.0 Adoption in your company. Here are some key findings from our preliminary results:
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98% of those surveyed are using Enterprise 2.0 technologies for internal communication and collaboration within their company.
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Most respondents (64%) say that adoption of Enterprise 2.0 is company-wide
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Entreprise 2.0 : définir un ROI pour convaincre
Il existe certes déjà des outils et des indicateurs traditionnels pour mesurer certaines de ces notions, mais comment rattacher directement une partie de l'amélioration de ces indicateurs aux effets de l'E2.0 ?
Il ne s'agit pas d'une mission impossible, car certaines études remontent des indicateurs de ce type. Par exemple, Intranet Statistics nous donne les informations suivantes :
Dear Enterprise 2.0,
You seem to have nailed the technical aspects down but you’re missing or ignoring the most important aspects of this change. My business imperatives are simple: globalization, information management, innovation, speed, ROI, cost transformation, and survival. So when you come to my leader’s office, please be prepared to answer a few questions:
* How can I integrate these tools within my environment and address my imperatives?
* What do I need to do for my people? Training? Education? Transformation?
* What services can be added to the tools to serve my business needs?
* What solutions can you bring to table to have an immediate impact to my productivity?
* How do I convince my business managers to replace their current processes with you?
* How can I measure success and how will I know that I am heading down the right path?
* What patterns, templates, and success stories do you have to show me?
I have an enterprise full of people that claim to understand Web 2.0. What I need from you is the implication of 2.0 to my business model. My door is wide open and I am waiting for you,
The ROI of enterprise 2.0 learning — Informal Learning Blog
“You can’t manage what you don’t measure” is nonsense. The vast majority of what senior executives manage is immeasurable. They make judgment calls; they play hunches. How else do you select the right people for key jobs? How else do you choose your partners? How else do you divine the future? Organizations pay senior executives handsomely to buy their ability to make wise choices in the absence of simple measurements.
Don’t Look for ROI on Enterprise 2.0 - Look for Value!
And so on. Note, we aren’t building a business case in the financial sense. This is not an ROI exercise - its a business value and outcomes exercise. And this is the type of analysis that needs to be done to shift from the laissez faire “if we build it” to a more thoughtful, targeted approach.
Enterprise 2.0 promise is years off...if it materializes
My overall sense is that the E2.0 problem is not about cost or ROI but about disruption. Time and again it has been shown that blogs/wikis need not require significant business investment. However, the barriers to adoption are a different matter.
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Managements I speak with detest the use of ’social’ in these discussions. To them it smacks of a form of socialism that connotes union control.
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What we need therefore is a fresh way to explain how these models can iteratively change business without unleashing mayhem upon the business. We need dedicated programs where change is introduced by example and persuasive argument that ties into business processes people understand.
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Determining the ROI of Enterprise 2.0
In other words, is Enterprise 2.0 truly strategic in the unique way that information technology can so often be?
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A second set of issues is related to corporate culture and its fundamentally hierarchical nature, which seems anathema to the flattened, highly social nature of Web 2.0 in the enterprise
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The central problem? Assets that are intangible, such as knowledge, social capital, and situated technology — which Enterprise 2.0 is primarily focused on — rarely have direct impact to financial outcomes such as revenues and profits. Its their downstream effects that generate the most value to the business.
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GE : entreprise 2.0 aux grands nombres
SupportCentral est l’environnement de collaboration de GE, démarré en 2000 et amélioré en continu (la plateforme est mise à jour toutes les 2 semaines).
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