Advertisements

The Top 10 Enterprise 2.0 Stories of 2008

The enterprise 2.0 space saw good action this year. I’ve had a chance to see it up close, starting the year with BEA Systems (now Oracle) and closing out the year with Connectbeam. I think it’s fair to say that in 2007, social software was still something of a missionary sale. In 2008, company inquiries increased a lot. The burden still falls on the vendors to articulate business benefits, adoption strategies and use cases. But enterprise customers are now partners in this work.

So let’s get to it. Here are my top ten stories for the year:

1. Activity Streams

Facebook really got this going with its newsfeed, and FriendFeed took it to an art form with its lifestreaming service. In 2008, many vendors added activity streams to their applications: Connectbeam, BEA Systems, Atlassian, SocialText, Jive Software and others.  Activity streams are great for improving awareness of colleagues’ activities, and adding a new searchable object: actions.

2. Forrester’s $4.6 Billion Forecast

Forrester Research made a splash with its forecast that Enterprise 2.0 will be a $4.6 billion market by 2013. The ReadWriteWeb story about it has been bookmarked to Del.icio.us 386 times and counting. Forrester’s projections provided a solid analytical framework for the different tools, used internally and externally. According to the analysis, social networking will be the most popular tool for companies. Whether you buy the forecast or not, they remain the best-known, most visible numbers to date.

3. Oracle Beehive

Larry Ellison is fond of essentially dismissing SaaS. He does not have Oracle invest much in the trend. But Oracle did seem to embrace Enterprise 2.0 in a big way this year with Beehive, which is an “integrated set of collaboration services.”  The New York Times quotes Oracle EVP  Chuck Rozwat: “It is a product we built from scratch over the last three years.” Now since Oracle is a huge enterprise software company, there’s plenty of skepticism about the capabilities and innovation of Beehive. But there’s no denying that Oracle has the ear of the enterprise, and picks up a lot of market intelligence through its customer base. While Beehive itself may or may not succeed, the idea that Oracle came out with Beehive was a big story.

4. AIIM/McKinsey Surveys

Research and consulting firms AIIM and McKinsey each came out with surveys of corporate interest in enterprise 2.0. The AIIM survey looked at levels of awareness and interest among different Enterprise 2.0 technologies. AIIM also took a fairly expansive view of social software. The top 3 “Enterprise 2.0” technologies in terms of corporate awareness? Email, instant messaging, search. That’s actually a funny list, yet there are lessons there for vendors and consultants in the social software industry. If those are entrenched, can you play nicely with them? One other quote I like from the report:

This study of 441 end users found that a majority of organizations recognize Enterprise 2.0 as critical to the success of their business goals and objectives, but that most do not have a clear understanding of what Enterprise 2.0 is.

McKinsey’s survey of enterprises looked at the interest in various tools as well. It also asked respondents what the leading barriers were for success of social software initiatives. Top three were: (1) Lack of understanding for their financial return; (2) Company culture; (3) Insufficient incentives to adopt or experiment with the tools.

5. Facebook Co-Founder Leaves to Start an Enterprise 2.0 Company

Facebook co-founder Dustin Moskovitz and colleague Justin Rosenstein announced they were leaving the hot consumer social network to start a new company. The new company will “build an extensible enterprise productivity suite,” with the goal of “making companies themselves run better.” Why would these young guys, sitting on top of the leader in consumer social networking, choose to exit? As I wrote at the time:

The Enterprise 2.0 market is still quite nascent and fragmented. Combine that industry profile with projected spending in the category, and suddenly you understand why these guys are striking out on their own.

Assuming they’ll be able to tap the mother ship for help, I think this was a fairly important story this year.

6. Microblogging Enters the Enterprise

Joining wikis, blogs, social bookmarking and other incumbent tools this year was microblogging . Given the way Twitter is used by Enterprise 2.0 aficionados, and is enjoying skyrocketing popularity, it’s no surprise we started seeing microblogging emerge for internal use. At the mostly consumer-focused TechCrunch50, enterprise microblogging start-up Yammer won the top prize. Other start-ups in the category include SocialCast and Present.ly. SocialText added microblogging with its release of Signals.

7. Gartner Narrows its Criteria for Social Software

Gartner came out with its Social Software Magic Quadrant in October. As SageCircle notes:

Gartner’s Magic Quadrant is probably the iconic piece of analyst research. With its visibility and status, it also has enormous influence on vendor sales opportunities, especially when it comes time for IT buyers to draw up the all-important vendor short lists.

So it was with great interest when I read that Gartner had narrowed the criteria for whom it puts in the Magic Quadrant:

Added blogs and wikis to the functionality requirements

The effect of that is to establish those two tools as the de facto standard for enterprise social software inside the enterprise. To the extent corporate buyers are listening to Gartner for signals about the market, this will make it a bit more challenging for start-ups with interesting offerings that address other parts of the social software market. Yammer, for instance, won’t make it into their Magic Quadrant.

8. Enterprise RSS Fails to Take Off

RSS is one of those technologies that you know has huge value, and yet continues to struggle for awareness and adoption. Google tracks the leading “what is” searches. The fifth most popular on its list? “What is RSS?” Take that as both good and bad. Good that people want to know, bad that awareness continues to be a struggle.

Forrester analyst Oliver Young has a sharp write-up that shows enterprise RSS did not expand inside companies as many had thought it would this year. As he notes:

Of the three enterprise RSS vendors selling into this space at the start of 2008: KnowNow went out of business completely; NewsGator shifted focus and now leads with its Social Sites for SharePoint offering, while its Enterprise Server catches much less attention; and Attensa has been very quiet this year.

RSS is a great way to distribute content inside companies, but its ongoing limited adoption was a big non-story for the year.

9. IBM and Intel Issue Employee Social Media Guidelines

IBM and Intel each established guidelines for their employees who participate in social media. As I wrote, this essentially was a deputization of employees as brand managers out on the web. These market leaders were essentially saying, “have at it out there on blogs, social networks, Twitter, etc. But make sure you know the company’s expectations.” These guidelines represent a milestone in large enterprises’ comfort with social media. I expect we’ll see more of this in 2009.

10. The Recession

This affects all industries, globally, of course. And Enterprise 2.0 is no exception. Jive Software made news with its layoffs, but the effect was industry-wide. And of course, corporate buyers aren’t immune either.

Those are my ten. Did I miss a big story for 2008? Add your thoughts in the comments.

If you’re interested in tracking what happens in 2009, I encourage you to join the Enterprise 2.0 Room on FriendFeed. It is a centralized location for tweets and Del.icio.us bookmarks that specifically relate to Enterprise 2.0.

*****

See this post on FriendFeed: http://friendfeed.com/search?q=%22The+Top+10+Enterprise+2.0+Stories+of+2008%22&who=everyone

Advertisements

Web 2.0 Inside the Enterprise? Forrester, AIIM Weigh In

Forrester produced a well-covered report this week announcing that Enterprise 2.0 will be a $4.6 billion business by 2013. In my RSS feed of FriendFeed updates containing the term Enterprise 2.0, there were probably a couple hundred related to this report – Google Reader shares, bookmarks, Twitters, etc. Sarah Perez of ReadWriteWeb has a great post about the Forrester report, with dollar figures.

About a month ago, AIIM came out with its own report on the market for enterprise 2.0. It was a work produced in conjunction with the likes of Stowe Boyd and Andrew McAfee.

After reading both of these reports, it’s clear there is a common perspective out there, but some differences worth noting as well. It’s instructive to look at both.

Forrester: Projections Focus

Forrester is paid for its expertise and forecasting. Their reports are well-regarded in this regard. Based on surveys of over 2,200 companies, this report is a forecast of the dominant technologies of Enterprise 2.0. Grounded in the market, fueled by its analysts’ views.

Forrester’s report strongly cleaves the Enterprise world into internal facing and external facing uses.

AIIM: State of the Market Focus

AIIM’s goal seems to be more of an Enterprise 2.0 temperature check of companies today. Surveying 441 company representative, AIIM didn’t try to forecast the future so much as see where companies’ heads are today.

AIIM’s report addresses both internal and external uses, but generally blurs the discussion between the two.

No Unanimous View of Top Technologies

Forrester’s report considers seven different technologies for the Enterprise 2.0 space. AIIM’s report goes much deeper. AIIM’s respondents came up with a much larger set when asked the question, what technologies make up your definition of Enterprise 2.0? To compare the two analysts, I selected the top seven participant responses from the AIIM report. Here’s how Forrester and AIIM show the leading technologies of Enterprise 2.0:

Five technologies showed up consistently between the analyst reports:

  • Social networking
  • Wikis
  • RSS
  • Blogs
  • Mashups

It’s interesting to note the differences between the two reports. Forrester included podcasting as a leading area of spend for Enterprise 2.0. AIIM’s report includes podcasting as well, but survey participants didn’t include it very often in their current definitions of an Enterprise 2.0 platform.

Forrester’s report did not include social bookmarking and tagging, but AIIM did. The Forrester omission probably says something about their view of the dollars to be spent on it.

Forrester included widgets, which is a nod to their strong focus on external uses of Enterprise 2.0. AIIM’s respondents like collaborative filtering, which is the basis for recommendation engines.

A Few Thoughts

Social networking comes in strong on both analyst reports. Forrester has spending here running away from all others by 2013. Call this the Facebook effect (MySpace didn’t seem to inspire the same trend to the enterprise). Generally, Facebook controls its “borders” and has a handle on everything that’s going on. Relationships, groups and activities all occur within the walled garden. Enterprises share a lot of these characteristics. Social networks will become the next generation intranet.

Also, note the disparity here. Companies are just coming to terms with the idea of social networks for employees, while the blogosphere seems to have left the mainstream social networks behind. Call that difference between the easy freedom of thinking and conversations, and the hard decisions of where to spend money and sweating your stock price.

Wikis come in surprisingly low on the Forrester side of things. I say that because some of the best known uses of Web 2.0 technologies inside companies are wikis. In fact, wikis are the #1 thing that respondents consider to be Enterprise 2.0 in the AIIM survey. Perhaps they have a lower cost, so that the same number of implementations will result in lower dollars spent.

RSS comes in strong for both reports. That is great to see! RSS holds so much potential. Just look at the growth of FriendFeed to see how RSS can create really new and interesting applications. RSS inside the enterprise will increase information awareness, and can be a basis for research and discovery the way FriendFeed is on the consumer web.

Blogs are ranked highly in both reports. Very nice to see. There’s still a mountain to climb before employees get comfortable with them. For companies that do have adoption of employee blogs, I expect there will be a boost in innovation.

Company blogs are interesting animals. The worst way to roll those out is treat blogs as glorified press release vehicles. That would be a waste of time. But what do you put on a blog that would be interesting? A couple of companies serve as examples. Google’s blog has a very conversational style of its products, general technology issues and other geeky stuff. Cafepress’s blog talks a lot about their products, which could be boring as hell. But Cafepress manages to relate products to larger issues, which makes it a bit more interesting.

Mashups are in the lower end of the top 7 currently, although Forrester projects spend on mashup technology to be the second highest after social networks. Here’s where I think Enterprise 2.0 will lead Web 2.0: mashup adoption. There are so many existing “big iron” software systems inside companies, that rip-and-replace is an expensive undertaking when you want to add new functionality. Mashups extend the life of these systems. In the consumer web, we’re experimenting with mashups a la Yahoo Pipes and Microsoft Popfly. I’m not sure the average consumer is going to bother with those. However, the average IT professional very much wants to look at mashups.

Those are some general thoughts. What do you think about Enterprise 2.0?

*****

See this item on FriendFeed: http://friendfeed.com/search?q=%22Web+2.0+Inside+the+Enterprise%3F+Forrester%2C+AIIM+Weigh+In%22&public=1