enterprise 2.0 summit 2012 closing keynote - next-generation ecosystems and its key success factors

Next-Generation EcosystemsAnd its Key Success Factors

Dion Hinchcliffe (@dhinchcliffe)

® 2012 Dachis Group 2

Introduction

Dion Hinchcliffe• ZDNet’s Enterprise Web 2.0

• http://blogs.zdnet.com/Hinchcliffe

• ebizQ’s Next-Generation Enterprises• http://www.ebizq.net/blogs/enterprise

• EVP of Strategy• http://dachisgroup.com

• mailto:[email protected]

• : @dhinchcliffe

Spring 2012

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Dachis Group

Social Business Trends 2012

• Implementations are getting bigger andgrowing faster than ever

• Virtually all data continue to show sustainedreal-world benefits (McKinsey, IBM, Frost and Sullivan, AIIM)

• Everything is becoming social: Social features are appearing in virtually all types of applications

• There continues to be considerable confusion about who “owns” social in the organization

• The predicted social data explosion: It happened• Mining insight from social data has now become a

major industry (#bigdata, #analytics)• The blur between internal and external social

business has not progressed as far as many thought• The first serious talk about open social business

standards has begun

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EnterpriseCommunity


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Social Business move to mobile

more budget

social apps

social analytics and BI

better integrated social business processes

enterprise-level organizationfor social business

Other Social Business Trends for 2012

internal

external

blurring begins butdoes not widely occur

community managementbecomes strategic

® 2012 Dachis Group

3 Recent Examples

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Source: Alcatel-Lucent

Status as of December, 2011


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Looking at the data

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Types of Business Gains Possible with Enterprise Social Media

Cost Reduction

Revenue CreationIncreased Productivity

Connected Culture

Self-service content sharing

Shorter external support cycles

Increased customer

satisfaction & retention

Self-Reported Average Industry Improvements From Large Organizations

10-20% reduction in travel and

communication costs

10-15% reduction in communication costs

10% decrease in operational costs

20-30% increase in access to expertise

30% increase in speed of access to

knowledge 35% increase in collaboration20% lower communication costs

30% faster customer care processes

18% higher customer satisfaction10% higher customerloyalty

25-30% faster access to expertise

15% increase in successful innovations & ideas

10% increased revenue

Source: Synthesis of McKinsey, Dachis Group, and other social business benefits data.

More rapid new hire ramp-

up

Faster location of

experts

Overcoming distance and

time zone barriers to

collaboration

Improved connections

between departments and internal

teams

Less time spent

looking for information

Improved global sales processes

Better business decisions


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Fully social organizations get outsized benefits

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Source: 2011 McKinsey Web 2.0 Survey


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Social business is...part of a single continuum...one unified ecosystem

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Social Businessenterprise ecosystem

customers +world

business partners

workers

SocialInnovation Crowdsourcing

Social CRM

Enterprise 2.0

Social Marketing

Customer Communities

integrated vision

intra

net

extra

net

Inte

rnet

The Lesson:


Social isn’t happening in a vacuum• Major forces of change co-exist• Many of these significantly impact social

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The good news: Technology and productivity

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But is this coming from technology investments?

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Who is currently leading innovation?

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Yet 60% of CIOs believe they should be driving growth and productivity.

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Source: Deloitte Survey, 2011


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But technology change is happening faster today than ever before

• A tsunami of new mobile devices and technologies• A pervasive wave of social media• The rumbles of cloud computing and SaaS• The shift to DIY• A flood of Big Data

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A perfect storm of change

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Happening almost all at once

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Key data point #1: Mobile

• Smart mobile devices outshipped PCs in early 2011

• Tablets are expected to on par with PCs by 2015

• Smart mobility strategies (particularly the iPad) have now become a top priority of most Fortune 500 CIOs

• Global mobile data going geometric is going to be the largest challenge to growth and use

• App stores are creating all new conduits between IT suppliers and workers

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Mobile Internet Ramping Up Faster Than Desktop Internet by 5x

Source: Mary Meeker, Morgan Stanley


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Key data point #2

• Social is now the dominant form of Internet communication on the planet

• Enterprises are 2-4 years behind the rest of the world.

• Yet data shows that revenue of social businesses is 24% higher on average. Profitability is better too.

- Source: McKinsey and Frost & Sullivan

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The Adoption Rates of E-mail, Social Networks, and E2.0

20112006

1B

750M

500M

250M

2007 2008 2009 2010

Sources:

Glo

bal U

sers

projected

ConsumerSocialNetworks

E-mail

100%

75%

50%

25%

Enterprise 2.0

comScore, Hitwise, and The Radicati Group, Forrester, APC, Intellicom, Neilsen Norman Group, Social Business Council, NetStrategy/JMC

high estimate

low estimate

Per

cent

of

Ent

erpr

ises


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Hundreds of public social networks...

24...channel fragmentation


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Dozens of internal social channels

• E-mail• Text messaging• Instant messaging• Meetings and conference calls• Enterprise 2.0• Social CMS• Knowledge management• Intranets• Online communities

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The Cloud Is Increasingly Subversive

• It’s in our worker’s homes• It’s on their laptops and PC at work• It’s in our worker’s pockets• It’s the world’s largest IT department• It has all the data• It has all the apps• It has all the people

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Dachis Group

So Workers Have Moved...

• Social • Mobile• New Digital Channels- Cloud- App Stores

And Companies Have Fallen Behind

• Approximately 1 Billion “Digital Natives” Have Migrated In the Last 3 Years


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A new mindset has arrived: Consumerization

• “It’s not so hard, I can do this myself.”• “There’s an app for that.”• “I’ll just use Facebook on my own device.”• “What’s the URL for that?”• “We’ll ask for forgiveness instead of permission.”• “This app is way too hard to use. I’ll use my own.”

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Simple Fast Easy

And WorksThe Way

They Want It To

DIY


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A tidal wave of data

• 80-90% of IT information is not accessible

• The amount of information today is just a trickle compared to what it will be in 2-3 years

• It will require all new technologies and skills that IT departments don’t have

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IT

WorldWorkers

Another Way ofLooking At All This


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Premise: Tech is becoming pervasive and user-driven

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• In 2000, only 10% of IT was unsanctioned or outside of central control

• Today that’s 30% and climbing quickly.• Shadow use of social media is

particularly pronounced

2000 2010

CoIT

TraditionalIT


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Together, all of this is unsustainable

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And it impacts how we build our new ecosystems


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We Must Become Resilient to Constant Change

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There is great economic and social value in achieving this (in pink above)


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How do we design for loss of control?

• “Make change an integral function. Native.” - JP Rangaswami

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growthrefinement

disruptionrenewal

cycles ofchange

frequentadaptivecourse

corrections


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CoIT: Enabling Social Business Innovation

• A consumer notion of IT• Driven bottom-up and guided from top-down• In other words: Cooperative IT

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Consumerized ITCooperative IT

#CoIT

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The Future of IT: Consumerization & Cooperation

CoIT

Technological Disruption

Lineof

Business

ITDept.

Ente

rpri

se E

volu

tion

The Business/ITDivide

Shadow IT Adoption

Consumer Tech

Cloud Computing/SaaS

Social Computing

Next-Gen Smartphones

differing priorities

change backloglack of alignment

unlike competencies

App Stores

• Broad enterprise uptake of consumer tech• Business-led solutions with IT support• Disruptive software distribution models• IT as enabling business infrastructure• Exponential increases in apps/devices• Decentralized governance

profit center vs. overhead

control vs. progress

narrowinggap

pressure tochange

Common Ground

• Consumerization of the workplace

• Rise of shadow IT (10% ten years ago, nearly a 3rd today)

• SaaS makes enterprise cloud apps just a URL away

• Smartphones the new “IT dept in your pocket”

• Tech savvy business users leading the charge with their own vision

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lifecycle of knowledge flows

Customers +The World

Workers

innovation

valuedigital delivery

growthrefinement

disruptionrenewal

cycles ofchange

intentional outcome

emergent outcome

emergent

emergent outcome

outcome

emergent outcome

The 21st Century OrganizationRadical Change, Social Engagement, Ecosystems, and Knowledge Flows:


In the meantime, social data continues to accumulate• Containing vast quantities of useful information• But we’re just learning how to deal with it

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Data (and knowledge) is increasingly visible in social channels

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It no longer “evaporates” or is hidden


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value


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But is all this observable information valuable?

42story


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Observable work: The issues

• 1 day a week is spent by workers looking for info to do their jobs. Source: Forrester

• Half of work in developed nations is tacit knowledge. Source: McKinsey

• Social channels cause data volumes to grow vastly after several years. Source: Jive

• 80-90% of most business data is submerged in IT systems and not accessible. Source: Various including Gartner, IDC, others

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“Information overload is not the problem. It’s filter failure.” - Clay Shirky

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Our information landscape is now measured in millions of exabytes

• Social ecosystems are largely responsible.• The good news: Information is no longer

submerged.• However, it is increasingly becoming an onslaught.

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1 EB = 1,000,000,000,000,000,000 B = 1018 bytes = 1 billion gigabytes = 1 million terabytes

VisibleKnowledge Us


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Comparing analytics with search

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Seeing theshape of the

haystack

Finding the needle

versusanalytics search


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How do we get to the third wave?

• Cloud computing? SOA?• Open APIs and supply chains?• Decentralized IT?• Better data warehouses?• Improved search engines?• Recommendation systems?• Business re-engineering?

• How about analytics?

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The Goal: Breaking down information silos and obscured information inside and outside of our organizations to get to value

® 2011 Dachis Group.

First, it’s about listening

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Listen Analyze

Engage

Social BusinessCapability

informs

informs

• Tap widely and deeply into the top social channels

• Pick up important social signals in near real-time

• Centralized capacity to update listening capabilities as the social marketplace continues to rapidly evolve

• Enable all stakeholders to access vital social activity

• Maintain an understanding of everything the marketplace knows

• Be able to connect the dots of social activity across all channels

• Wield strategic insight that can be leveraged across the organization

• Initiate responses systematically from policy with less duplication and with high degrees of automation

• Share and provide access to data and insight to all stakeholders

Connect with customers in their channel of preference to drive high value activities such as better customer care, product input, innovation, and sales

New products, services, and products

Social Business

Processes

The new flow of business


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How will we listen?

• PersonallyIn our social environmentsOn our devicesWith our social capitalFor our work

• Using strategic toolsTo automateTo scaleWith aggregate social capitalTo guide the business

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http://apps.facebook.com/friendwheel




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Strategic social media data analytics exists

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• But are are just emerging from infancy

• Focus primarily on the outside world

• Strongly favor new social environments over older style and vertical communities

• Have limited analytics abilities• Don’t connect well to existing

reporting tools and data warehouses

• Are relatively expensive (compared to free)

They also exist where you don’t expect them


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• Plug-ins or E2.0 application features that allow user feedback of contributions

• Including posts, comments, and even tags• Example: LiquidPub• Allow quality and portable reputations to be

established over time in E2.0 ecosystems• Most useful for newish or large social

business environments

Nascent social analysis: Reputation systems


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What is social analytics used for?

• Sentiment analysis• Expertise location• Critical situation tracking• Root cause analysis• Trend extraction• Sociology• Knowledge mining & discovery• Social capital management• Social supply chain• And much more


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Social + data analytics = business intelligence


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What a social business ecosystem looks like

Feedback Loopand virtuous cycle

Listen &Analyze

Engage

Big Data

CommunityManagement

SocialBusiness

The World

Strategyand

Policy

• Business objectives• Social business

“rules of the road”• Social media policy• Structural and

process reforms• Transformational

roadmap

• Complete view of internal and external social media

• Analytics and visualization of vital trends and events

• Automated evaluation and prioritization of strategy & policy issues

• Operational pipeline

Gu

ide

• Manage, support, and cultivate the participative aspects of social media-based business solutions, both internal and external

• Interact with customers, business partners, and workers to help and guide them towards useful business outcomes

Social Innovation

Social Marketing

Social CRM

Social Workforce

Crowdsourcing


Dachis Group

Key Success Factors

• Everyone must be able to participate• Turn on network effects by default• Cultivate the right communities• Plan for change and the unexpected• Remove barriers to participation• Listen, analyze, and engage continuously• Integrate social into the flow of work

Thank you

May 2012

enterprise 2.0 summit 2012 closing keynote - next-generation ecosystems and its key success factors

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