Posts Tagged ‘enterprise 2.0 adoption’

Enterprise 2.0: Paradigm Shift or Incremental Change?

December 18th, 2009

shifting changeThis is the third post of a multi-post series covering the discussion between SOCIALtality founder and 20-year Fidelity-enterprise veteran, Wendy Troupe and myself.  The topics of our discussions were around Social Media, the emerging Enterprise 2.0 movement and the issues facing companies contemplating adoption.  Yesterday we addressed why enterprise 2.0 market predictions vary so greatly.  Today we are going to address how the shift towards Enterprise 2.0 in either a paradigm shift or an incremental change.

Question 3: Must a company experience a wholesale paradigm shift in order to derive value from Enterprise 2.0 or can an incremental integration approach succeed?

My response:

You have to start with an incremental approach.  It’s very rare that a rapid shift ever occurs within large companies, especially if we’re talking about something changing across the enterprise.  If you throw an internal collaboration tool at your employees, adoption will not be instantaneous; actually it’s going to be anything but instantaneous.  Adoption is going to take time and could be 6 months to well over a year before you see widespread adoption, use, and actual business impact.

Driving adoption among employees is going to be a key issue for companies.  Technology is also important but is a much smaller piece of the equation.  You can have the perfect technology in place but if you don’t have adoption, then you fail.  That’s a fundamental issue across the entire Social Media and Enterprise 2.0 space.  It’s much easier to buy a tool and implement it.  It’s hard to get people to start using the platform and developing an understanding of it’s real value.  In his book Enterprise 2.0 Andrew McAfee sited John Gourville who did some research which suggests that:

“the average email user will underweight the relative benefits of a replacement technology (such as an internal collaboration platform) by a factor of three, while Enterprise 2.0 enthusiasts will overweight these same benefits by the same factor.  This is the 9x effect deployers of new collaboration technologies will have to overcome.”

Part of the adoption challenge is getting people to slowly start to want to change the way they do things.  In the book, Enterprise 2.0 there was an example of a project manager who informed his colleagues that he’d no longer accept email about a particular project, instead they’d have to discuss it on the collaboration platform.  You have to slowly start replacing the old with the new and migrating people.  It takes time.  One of the reasons I’m so interested in Enterprise 2.0 is because the answers aren’t there yet, it’s a human puzzle that needs to be solved.

Wendy Troupe:

I think the size of an organization and the influence of the leadership factor heavily in adoption.  I think it’s easier for a smaller organization to rally around something new.  In a small organization, the collaborative barriers are thinner and more easily overcome. In a larger organization, adoption of new methods is often stunted by ownership silos.  I think larger organizations have to overcome internal competition to foster true collaboration.

I think organizational leadership has to share a common strategic vision to create wholesale change.  Often the vision is passed down from the central leadership.  They see the potential and work to create an environment where a new concept can proliferate.

I think incremental change is often the result of grassroots support efforts rising within an organization and bubbling up to the top.

External factors can often effect the route change takes.  If there are competitive threats, losses of marketshare, etc. leadership will often force organizational change out of necessity.

Organizational change often starts with the adoption of tool.  A tool has a clearly defined cost, a focused set of expected outcomes and can be applied to a specific set of issues.  Incremental change, a slow and methodical replacement of the old with the new, can be the best route to adoption.  It’s up to organizational leadership to create an environment where the adoption of new methods are encouraged and new ideas can proliferate.

To read the other posts in this series please see below:

Enterprise 2.0 Tools vs Strategies

Why do Enterprise 2.0 Market Predictions Vary so Greatly?

Companies Interested in Enterprise 2.0 Need to Take Strategy Seriously

December 3rd, 2009

A few posts ago I talked about Enterprise 2.0 Adoption where I reviewed a portion of a report that was released by the Enterprise 2.0 council.  Recently, the FULL report was released online for free which provides more insight into how companies are beginning to adopt and implement Enterprise 2.0.  You can find the full Enterprise 2.0 report for free here (thanks to the Enterprise 2.0 Council).  I highly recommend you read the full report but I want to focus on what I believe is the most important section which is where companies are allocating their dollars.  The two graphs below provide a budget breakdown of what Enterprise 2.0 budgets are and what those budgets are going towards.

enterprise 2.0 budgets

enterprise 2.0 budget breakdown

Pay special attention to the fact that almost all Enterprise 2.0 budgets are under 3 million dollars (with a majority being under 1 million).  Notice that only 6% of the total Enterprise 2.0 budget is going towards developing a strategy.  Taking the numbers from above means that:

  • 41% of companies are spending $30,000 or LESS on their Enterprise 2.0 strategy
  • 23% of companies are spending between $30,000-$60,000 on their Enterprise 2.0 strategy
  • 16% of companies are spending between $60,000-$180,000 on their Enterprise 2.0 strategy
  • 13% of companies are spending between $180,000-$300,000 on their Enterprise 2.0 strategy
  • 8% of companies are spending upwards of $300,000 on their Enterprise 2.0 strategy

Strategy is tied for 6th place along with “ongoing technology management/maintenance” and ranks juts slightly higher than community management and training, why?  The strategy is going to be the backbone of the entire Enterprise 2.0 initiative and while the budgeting breakdown above doesn’t signal priority of spending (otherwise we would be in BIG trouble) it does raise the question of what companies are doing and expecting from a budget that is oftentimes under $60,000?  This is part of the reason why I asked the question, “Is Enterprise 2.0 a Crock?

I realize that we are still in the early adopter stages of social media, social business, enterprise 2.0, or whatever else you want to call it but I think we need to do a better job at allocating budgets towards Enterprise 2.0 shifts.  Why can companies justify hundreds of thousands of dollars on software and staffing but not on developing the strategies that support that?  Something doesn’t make sense here and I think we need to rethink how we are approaching this.

Think about that while you look at the graph below which is from Forrester and provides estimated interactive budgets for various companies during 2009.

forrester interactive budgets for 2009

Notice one key distinction, the Forrester budgeting specifies “social media” in the estimates but does not mention “enterprise 2.0″ so I’m making the assumption that these are 2 separate things.  This means that companies have no problem spending between $200,000-$1.4 million on social media (which is external facing) but are not spending anywhere near that amount on Enterprise 2.0 (internal facing).

What we need to realize is that both internal and external social business efforts need to work in tandem to achieve the greatest results.  How can brands justify spending on building external communities when they are still struggling with building internal collaboration communities.

2010 is going to see drastic changes in the Enterprise 2.0 space both in terms of adoption and in how budgets are being allocated (or at least I hope it will see changes)

The Phases of Enterprise Social Business Adoption

November 30th, 2009

Companies that are looking to get involved in social business don’t just jump right in with both feet.  It’s a gradual process that takes a lot of time and effort before change can start to happen.  Over at Chess Media Group we created (and by “we” I mean my business partner Connie) a simple visual [...]