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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.

*****

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How Are Enterprise 2.0 Vendors Pitching Web 2.0? Using Wordle to Find Out

Recently, a website called Wordle debuted. What is Wordle? You can think of it as similar to a tag cloud, except Wordle analyzes words, not tags. You can see people’s blog Wordles on FriendFeed. Wordles are only graphics – you can’t use them for navigation.

A nice use of Wordles is that you can quickly pick up the pulse of a website. Higher word counts show up as larger fonts, the way tag clouds do.

I wondered what enterprise 2.0 vendors are talking about now. We’re a couple years into the introduction of the term “enterprise 2.0“, made popular by Harvard professor Andrew McAfee. The market is still young, but a decent number of companies have entered the space. Given that they’re selling to corporate customers every day, I was curious as to how their message has evolved.

So I “Wordled” the websites of the following ten enterprise 2.0 vendors:

  1. Jive Software
  2. SocialText
  3. Connectbeam (my company)
  4. Atlassian Confluence
  5. Six Apart Movable Type
  6. Newsgator
  7. Traction Software
  8. Near-Time
  9. SpikeSource SuiteTwo
  10. Worklight

I focused on these pages for the vendors: home page, product pages, “about” page. Let’s see what’s going on out there.

Ten Enterprise 2.0 Vendors’ Wordle

For the Wordle, I removed company and product names to keep it focused on themes.

So looking at this Wordle, what do we see?

Content and information get a lot of play, while knowledge shows up less often in the messaging. That seems about right, doesn’t it? Knowledge is information that you’ve internalized. Well, enterprise 2.0 should help people with that task. Still, it does seem that the focus is on the inputs (content, information), not the outcome (knowledge).

Search shows up a lot. If you’re familiar with the enterprise 2.0 philosophy, creating and finding the good stuff that is locked up in workers’ heads is a key value proposition. Search as a basis for let workers’ connect with one another makes sense. As Nemertes Research notes:

Enterprise search is catching on with enterprises.

If search is the leading use case, what’s the next one? Collaboration. Very much in keeping with the web 2.0 ethos. After that, we see learn and networking as important use cases.

Note that RSS is only slightly bigger than email. A good acknowledgment of what the leading application in the enterprise continues to be.

Social as a top word is no surprise. Isn’t that the premise? Community falls in a similar vein.

Two other words I found interesting: can and new. Can is very much in keeping with the spirit of enterprise 2.0. Companies continue along the adoption curve, but there’s lot of opportunity out there. So emphasizing what you can do is in keeping with the state of the market. New has a similar vibe. The sector is continually iterating and innovating. Web 2.0 moves fast, and vendors have to be nimble to keep up.

Finally, note that Microsoft and SharePoint show up in the Wordle, but not Oracle, SAP or IBM. In terms of incumbent corporate software, Microsoft is the most pervasive and has enterprise 2.0 aspects with the collaborative features of its SharePoint application. As InformationWeek notes:

SharePoint dominates collaboration.

Companies’ use of SharePoint and the importance of Microsoft to the enterprise ecosystem is seen in the Wordle.

There are probably other interesting things to be gleaned from this Wordle. What do you see?

I’m @bhc3 on Twitter.

 

The Best Blogs You’re Not Reading? Toluu Knows

Toluu has entered the ever-growing recommendation space with something different: blog recommendations. And the service does a good job of finding blogs you’ll like.

I love the RSS experience of reading various blogs, loading up my reader with a lot of them and checking updates several times a day. So I was happy to have the chance to try this out. The service is new, launching in mid or late March. Louis Gray has a good post detailing its initial launch. Here’s a description of how it works from the Toluu site:

  • After joining, you will be prompted to import your feeds. We have many methods of importing your feeds such as OPML import, URL input, and a nifty bookmarklet.
  • Toluu will do some crazy math to find others in the system who have similar tastes as you.

One thing founder Caleb stressed on his blog: “Toluu is not another social network. I repeat Toluu is not another social network.”

So with that intro, let’s look at the user experience and how Toluu rates versus competitors. First, a brief discussion of recommendations.

Quick Note on Recommendations

The recommendations space is a hot area right now. For instance, Loomia, which recommends web content based on what your friends read, just raised $5 million. Amazon.com has been a real pioneer here with its “customers who bought this item also bought…” recommendations.

Ideally, recommendations are exactly matched to your interests. That’s pretty much impossible, but recommendations engines will employ proxies to get a bunch of recommendations that are close to your interests. And hopefully one or more click with you.

There are myriad ways to approximate your interests, and the world of recommendation engines is full of different methodologies. The key thing for most of them is (i) the amount and quality of information about your preferences, and (ii) the amount of population data available to build out recommendations. Toluu uses your OPML file of feeds, which is a very good source of data about your preferences. And Toluu improves as more people participate.

Finally, I’d want a recommendation service to mix highly popular items that I may be missing, as well as less popular items that are relevant to me. That latter category is the real jewel of a recommendation engine, and its the hardest to get right.

Toluu’s Organizing Principle: Match Percentage

Toluu’s primary organizing basis is its Match %. As Caleb mentioned above, this is their “crazy math” secret sauce. After you log in, you click on matches. A list of 5 people are displayed, sorted according to the Match %. The first 5 people you see are your highest matches. Each subsequent page shows the next 5 highest rated people. Each person has 5 feeds listed beside them. These “feeds you might like” are the top 5 recommendations per person.

I had 60 people in my list of matches. My highest match was at 91%. The bottom of the list was guy with whom I matched at 31%.

As I looked through the people that I matched, I noticed a trend. The best Match %’s were with people who had fewer blogs. The lower Match %’s seemed to be with people that had large numbers of blogs. I pulled together some numbers for 30 people to see if this was true. My top 10 matches, 10 people that fell just below the 50% Match %, and my bottom 10 matches. I then graphed it:


Sure enough, the higher the number of feeds for a given user (red line), the lower the Match % (blue line). I’m not quite sure what to make of that. It may be an outcome of the math – the match percentage is lower just because a user has so many feeds there’s no way to match. Or maybe I don’t match up well with the hard-core RSS addicts. I dunno.

One effect is that people who go deeper in their blog interests will fall lower in my matches. Assuming users don’t go too far down in viewing their matches, this could reduce the chance for finding those golden nuggets of less popular, but valuable blogs.

Top Toluu Recommendations Can Be Limited

I cruised through my people matches, and read the 5 “feeds you might like” for each one. There is a high degree of commonality on the recommendations. The 5 recommendations seem to use popularity as an primary input. And that makes sense. You’re providing a service, and popularity means somethings been deemed worthy by the public at large. Start with that!

Again, I looked at the top 5 recommendations for the 30 people I analyzed above. That meant I was looking at my top matches, my mid-tier matches, and my lowest matches.

There wasn’t a lot of variation in the top 5 recommendations for people in the different groups. Micro Persuasion, Engadget, Lifehacker, a couple Google company blogs and Boing Boing consistently showed up, regardless of the Match %.

This narrowness in the recommendations was something that Allen Stern at CenterNetworks wrote about. If you see a recommendation once, you’ll tend to see it repeatedly.

The Rubber Meets the Road: Toluu vs. Google Reader vs. NewsGator

So all that’s well and good. But how does the service perform? I decided to see how Toluu worked relative to two big established market players: Google Reader and NewsGator.

Google Reader has a Discover function. Here’s how it’s described: “Recommendations for new feeds are generated by comparing your interests with the feeds of users similar to you.” Sounds like Toluu, doesn’t it?

NewsGator has a Recommended for Me function: “NewsGator has analyzed your current subscriptions and post ratings, and recommended these new feeds for you.” Doesn’t say how that’s done.

I compared the top dozen recommendations for each of the three services. To assemble my top 12 for Toluu, I calculated the number of times the different blogs appeared in the 30 people I analyzed above. For instance, the blog Micro Persuasion appeared in 19 of the 30 matched users, making it #1. The table below shows those top 12 for each service:

One thing that immediately was apparent. No blog appeared more than once! Three different sets of recommendations and no overlap among Toluu, Google and NewsGator. Incredible!

I then checked out the 36 different sites. After a quick scan of each one, I decided whether it was one I would add to my RSS feeds. Those are highlighted in yellow above. NewsGator’s recommendations fell flat with me. They were too hard-core tech. Several had blog posts with lines of code on them.

Google Reader’s recommendations were the most relevant for me, with 5 that I liked. I subscribe to a number of Enterprise 2.0 blogs, so blogs like Intranet Benchmarking Forum and Portals and KM were good.

But Toluu did well here. The crowd was right – I like Micro Persuasion. Webware.com and Web Worker Daily are also interesting. There are a lot of Google blogs that show up in the recommendations. Maybe a bunch of Google employees are trying out the service?

More people joining Toluu will probably improve this some. At least push the Google blogs off the top recommendations. But there will be some reinforcing behavior as people join. Sites like Engadget and Lifehacker have large followings, and I’d expect a number of new folks joining Toluu to have those already.

Serendipity: Looking at My Top Matches’ Other Blogs

For each person in your match list, you see all the blogs they have that you don’t. It’s here where some of those golden nuggets, and even better known blogs, can be found. It takes work. You need to click each person, and then click each blog. There’s a limit to how much of this I wanted to do.

So I only looked at the feeds of my top 3 matches. And, I did find more blogs I’m going to add to my Google Reader:

  • Marshall Kirkpatrick
  • Adam Ostrow
  • BubbleGeneration
  • SocialTimes.com
  • mathewingram.com/work

Toluu Assessment = These Guys Are Doing It Right

I picked up 8 new blogs to follow courtesy of Toluu. That’s no small accomplishment. And considering they’re just getting underway and don’t have a ton of users yet, they compete quite well against Google.

I haven’t touched on other features of Toluu has. You can favorite a blog in your collection. I assume this helps the matching algorithm? You can track the activities of others to see what blogs and contacts they’re adding. But remember…this is not a social network!!!

Things I’d Like to See

I’d like to have an easier experience seeing the feeds for my top matches. Since there’s such a commonality in the top 5 for each of them, it would help me discover other blogs if I could see several of my matches’ unique blogs at once.

Show the top ten blogs recommended for me based on my top 10 matches. Criteria = frequency of a blog’s recommendations, with overall popularity as a tie breaker.

I’d like to get a little more info about some of these blogs in a summary fashion, without having to click each one. Maybe the headlines for the most recent 3 posts, or top tags of the blog?

But all in all, a very nice start for Toluu. Thumbs up here. Now I’ve got to go scan my RSS feeds.