Alrik's Blog

A blog about Enterprise 2.0 and it's facets.

Enterprise 2.0 vs. Knowledge Management June 21, 2010

Filed under: Social Software — alrikd @ 23:37
Tags: ,

The present discussion about Entperise 2.0 – the Web 2.0 within the Enterprise is at the same state as the Knowledge Management discussion was about ten years ago. At that time the new concepts guaranteed a new World in Information and Knowledge Management, like Kolumbus or Magellan did with their expeditions.

But what happened? The concepts of knowledge management gaped a big hole between promises and really achievable goals. In 1996, Tapscott wrote a book about The Twelve Themes of the New Economy.

  1. Knowledge – the big theme in the upcoming evolution, from smart clothes to smart roads
  2. Virtual – Everything goes virtual, even Government, Shops or communication hot spots
  3. Digitization – new possibilities unfold in the changing environment of information storage and communication opportunities
  4. Molecularization – Enterprises are subject to change from monolithic and centralized organizations to virtual organizations with a flexible and highly educated workforce
  5. Internetworking – the growing clusters need powerful support by new technologies
  6. Disintermediation – digital networks destroy the barrier between costumers and companies
  7. Convergence – economic sectors which are creating knowledge and other virtual products are becoming increasinlgy important
  8. Innovation – break barriers to innovate first and faster than your competitor does
  9. Prosumption – the shifting importance of the tayloristic organized product consumption by the customers, costumers – consume, create and produce
  10. Immediacy – ad-hoc processes, lower number of pieces of each product line – individuality…
  11. Globalization – welcome to our daily life!
  12. Discordance – globalization and it’s ugly face, poverty, humanitarian dramas and the dramatic climate change

These predictions are pretty precise if you reflect the present developments. The globalization is an unstoppable movement. Web 2.0, Government 2.0 and Enterprise 2.0 are well known buzz words in the present discussion. Companies allow their employees the access to social networks and other new communication platforms like Skype – Digitalization & Virtualization.

But the companies, as well as the discussion around the millennium, just see the new world with fully connected knowledge and information and a well educated knowledge worker within this environment. The organizations failed to adapt the other dimensions which came along with that change. Beside the technical challenges the culture and structure of the companies are on trail. The future of companies is beyond inflexible processes and rigid structures.
Companies are challenged with this development and asking themselves – How can we use the Web 2.0 technologies successfully and how is the Enterprise 2.0 defined in my case?
McAffee, father of Enterprise 2.0, did a reality check of Enterprise 2.0 – Enterprise 2.0: the academic reality check

In short: this is a journey around the world and there is no short cut by a hidden track or something similar.
Here is the fact:
Around 98 % of the people between 15 and 29 use the Social Web pretty naturally as a contact and information source. They’re fascinated by the open sharing and easy access to the omnipresent activity stream of their friends and information sources. If you do not agree with that behavior, it doesn’t matter those people are soon on your payroll.
Your Enterprise will be a continuously changing organism. McAfee describes the three main trends of Enterprise 2.0. You need open platforms for self-expression and emergent structures and processes. The two environmental changes lead to a smart order in the created chaos. Employees will be your guide in the information flood and they organize information like they need it and not as you would like.
The main difference between the promises of Knowledge Management and Enterprise 2.0 are the people. Enterprise 2.0 is strongly focused on the employees and their working behavior. A modern Enterprise 2.0 structure is highly flexible. The change processes are shifting from mainly employee-focused demands to a steady organizational change.

Make it happen!


Social Media Strategy (Map) – First attempt June 11, 2010

Filed under: Social Software — alrikd @ 08:49
Tags: , , , ,

Today I have read a Blog post from the Basic Thinking Blog and the post was dedicated to the investor/public relation managers which are unable to acquire additional budgets from their managers. 60% answered that they definitely do not get any funds and nearly 13% probably get a budget. Those are scary facts for each Social Media strategist or Social Media manager.

The main fact is that only a few people actually knew what Social Media could improve within your enterprise, if you implement it well. Otherwise it is a good way to distract people and spend money without any sense. Furthermore a Social Media strategy should not be focused on external implementations and marketing use cases only. The whole picture is important. Hence I have developed a strategy map, based on my post with some goals, what you can achieve with a fully harmonized Social Software strategy and how the goals are linked together. This map is not the end of strategy development, but it is a nice starter for your thoughts and negotiations with your manager. This map is mainly based on the internal usage.
BUT, if you understand the thoughts behind and you have time to reflect this map for a while, it can be helpful. I agree that it is colorful and maybe confusing at the first sight, but isn’t it also in your company?! I only created the links between the the learning and growth perspective and the internal business processes due to a lack of information what goals you and you company want to reach. Is it a competitive price, the best quality or the fastest customer support of the competition, maybe all of these goals?

Social Software Strategy Map

If I have accidentally dropped some goals or something else is missing, please let me know. And how are you visualizing your way to a Enterprise 2.0 ready company?


It’s all about strategy

Filed under: Social Software — alrikd @ 08:45
Tags: , , , ,

Many blogs and posts are related with the topic of the Return On Investment of Enterprise 2.0, Wikis and Enterprise Microblogging as well. 
Some of them conclude that it is not necessary to measure the impacts and costs of social software. Arguments are mainly:

  • Do you measure the ROI of EMail?
  • The users will adopt Social Software anyway, why should I measure the ROI?
  • The intangibles are too difficult to measure, you can’t get an exact result expressed neither in numbers or Dollars
  • The process of measuring ROI is also very expensive and not worth to perform due to the low investment
  • and so on.

I think this is a misrouted way. Many managers challenge their Social Software leaders with questions like “Which costs are related with the implementation?” and “Which advantages are rising up with those tools?” The question is not easy to answer, I agree. But to answer it like in the cartoon beneath isn’t the right way.

With the rising maturity of Social Software the ROI question will pop up more often in meetings and discussions. The main question question is not, which advantages or costs do occur. The first step should be an analyses of the shortcomings within the Enterprise and possible strategies to correct them. A tool without an underlying strategy is still a piece of quite useless code and hardware components.

Kaplan and Norton established a good way to analyze possible strategies and their value links within the enterprise. The so called Strategy Map is subdivided in four sections. For each subdivision, the company should be able to establish a strategy to decrease own weaknesses and increase own strengths. This is the start of my thoughts.

Strategy Map Kaplan/Norton

  • The financial perspective is seperated in the growth and the productivitiy strategy.
  • The customer perspective helps you to define major goals of your products or services and could be seen as your external excellence strategy (e.g. quality, price, brand, trustworthiness…)
  • In the internal process perspective you define your internal excellence (e.g. your innovation process or the operations management processes and customer management processes)
  • The last perspective is dedicated to the employees and named with Learning and Growth This part is crucial because it focusses on your most valueable resources, your employees. In knowledge intense iundustries there is an urgent need to motivate and align them with your strategy. The training and knowledge is important as well.

This map help you analyzing possible shortcomings and establishing strategies to eliminate them as well. 

The strategy is defined top-down, that is to say you define the financial goals which your company wanted to reach and connect necessary visions and mission in the subdivisions beneath. This value links will help you to find a fully integrated strategy with well defined goals. The value links are connectors of the separate perspectives. e.g. a well trained workforce is connected with excellent production processes, which increases the quality of the products and leads to a higher market share and improved cost structure.  

I think the statement is clear. No value without a strategy. A short Guide to a Return on Investment of Social Software:

  1. Think about your weaknesses within your Enterprise, identify them and write them down
  2. Define strategies which will tackle the weaknesses (e.g. weak communication, less innovations or decreasing process velocity)
  3. Establish measurable goals which you wanted to reach (e.g. increasing communication, transparency of decisions or 20% faster project duration), note: not all of them will be easy to measure but you can use interviews and surveys as well, but always keep it simple!
  4. After you know what you want to reach, the choice of the tool is not easy, but you can choose between classes of tools, like Wikis, Blogs, Microblogs and so on, use google and you will find all of them and plenty more for communities, communication, information sharing…
  5. the next steps are crucial, don’t drop the tools like candy to your employees with the words “Here’s a Wiki, use it or die”, communicate what goals you want to achieve with that Wiki and why. Communication is essential in the ROI creation process.
  6. monitor the activities within the software, is it accepted as you wanted and as quick as you thought, is it used how you wanted and if not, why?!
  7. Now it is time to see what benefits you have reached
  8. Measure your goals after 3-6-12 months, implementing Social Software is not mainly about cuttings costs or generating more revenue, it’s more about your employees, a vital innovation culture or cross-org collaboration.

Now it is up to you. Which strategies do you have implemented with Social Software and how do you measure it?


Social Software ROI model

Filed under: Social Software — alrikd @ 08:41
Tags: , , , , ,

Once upon a time… I had begun my diploma thesis with the title “Return on Investment of Social Software – Enterprise Microblogging within enterprises”.
It focuses on three topics

  1. First of all the classical methods of profitability analysis should be analyzed and investigated for the usage of Social Software
  2. Second new methods should be found, this was quiet hard
  3. last but not least, a case study should be developed for the proof of concept

But one after the other.
New questions appear within companies.

  • How do I secure the future viability / competitiveness my company?
  • How can I quickly and accurately respond to ever-shorter market cycles?
  • How do I improve my ability to innovate and secure / improve my position?
  • How can I improve the productivity of my staff through collaboration and communication?
  • What can current trends, such as “Enterprise 2.0” or “Social Software” do for my company and what it means when I’m idle in these areas?

The model is inspired by three main approaches of profitability analysis. The first approach is the so called Total Economic Impact or TEI model.
TEI model Forrester

  • Costs will be accessed via the Total Cost of ownership framework
  • benefits are mainly measured with qualitative and quantitative Interviews and surveys
  • Flexibility is the most nebulous dimension in the framework, it is used to describe future perspectives, which can be reached with this investment.
  • Risks are considered for all three dimensions mentioned before.

The next apporach is the Maslow’s Hierarchy of Enterprise 2.0 ROI from Carpenter.
Maslow’s Hierarchy of Enterprise 2.0 ROI
This pyramid lit Enterprise 2.0 and Social Software with less framework related thoughts and is mainly based on the measureability of benefits and their impact to the company.

The last thoughts are first mentioned by Rischler and Bächle (the source is only available in German). In their Enterprise 2.0 study they identified 3 main categories of benefit and risk categories, organisation, individual and technology.

The new conceptual approach is combining those three theories and should be understood as a guidance to identify and determine benefits, risks and costs within the enterprise with Social Software related projects.
ROI model fr Social Software
This model is not the final approach for ROI determination of Social Software, but still a already further. What do you think about this dimensions and the hierarchy of the benefits?!


Return on Investment of Enterprise Microblogging

Hello Community,

this blog is created with the intention to create a lively and peppery discussion about the Return on Investment of Enterprise Microblogging.
Quantifiable indicators are still rare for communication processes and CIO’s and other IT-professionals are still asking the same questions about new IT-investments.

“Is there any additional value for my IT environment” ; “What is the benefit for my users”; “Which complexity do I have to cover” and so on. But the main question for managers is always some kind of Revenue, Total Cost of Ownership or even the Return on Investment of the new technique. But presently there isn’t a really suasive concept.
Some people tried to decrypt the code of the revenue of an active community and widespread communication between users.

  1. One of the first attempts was written by Alan Warms, Joseph Cothrel and Tom Underberg. Return On Participation, the principle how communities create an value added for both the sponsor and the participant.
    Return on Participation
  2. A Swedish research group tried to access the topic from another path, the tried to define and measure the non-material assets of a company and possible interactions between them to grow the company value. Thus Return On Communication is an important input for our discussion and should be read attentively.
    Return On Communication
  3. Last but not least, a research group of some IBM facilities wrote a paper about Return On Contribution where they made the first steps to a metric for the benefits of Social Software.
    Return On Contribution

So what are the next steps to an efficient Social Software benefit measurement?!

  1. Discussion
  2. Contribution
  3. Sharing out
  4. Creating… of something new and well defined!!

Now it is up to you folks…

The outcome is also a small support for my pending diploma thesis at Communardo and their leading Enterprise Microblogging solution Communote. Hopefully i started a well formed, efficient and exciting discussion about Social Media… Once again.