Three Enterprise 2.0 Themes You Should Be Watching in 2010

Enterprise 2.0 continued its growth and maturation in 2009. We saw the rise of the Enterprise 2.0 consultancies, including Dachis Group, Altimeter Group and Pragmatic Enterprise 2.0. Andrew McAfee published his book about Enterprise 2.0. We saw the rise of the 2.0 Adoption Council. And based on what can be gleaned from vendors, more enterprises are deploying social software.

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For 2010, three themes will impact the sector. These aren’t the only ones, but I expect to see plenty of news, features and industry mental energy covering these.

#1: Impact of SharePoint 2010

It’s coming. SharePoint 2010. Microsoft’s upcoming release for the enterprise received good attention during the SharePoint Conference in Las Vegas. Features include:

  • Social profiles
  • An actual wiki
  • Blogs
  • Activity streams
  • Status updates
  • Presence status
  • Social bookmarking
  • Tags
  • Ratings

As a list of capabilities, this certainly is impressive and quite a departure from SharePoint 2007’s social software efforts. The devil is in the details, of course.

But generally, customers who have been “making do” with 2007 will suddenly have an attractive option from Microsoft. SharePoint 2010 will likely be a big catalyst for Enterprise 2.0 growth.

The coming release of SharePoint 2010 is forcing many vendors to evaluate their positions in the market. Going head-to-head with the same or fewer features is going to be tough. What differentiates your offering? My Jaws picture refers to this dynamic facing Enterprise 2.0 vendors.

There will be articles reviewing 2010. There will be blog posts dismissing its capabilities or lack thereof. But there will be impact in the corporate world.

#2: Enterprise 2.0 Becomes “Like Air”

At Defrag 2008, I caught Charlene Li’s presentation, where she said, “social networks will be like air“. The premise of her talk is that social network aspects will become less a destination URL and more an integrated part of experience throughout the web and mobile.

We’re seeing signs of a similar shift in the enterprise. Enterprise 2.0 is becoming less a destination and many of its concepts are being integrated into non-social software apps. Salesforce’s Chatter and Tibco’s Tibbr were end-of-year examples of this. As Dana Gardner writes on Seeking Alpha:

This is a clear sign that the enterprise software and social software worlds are munging. Get ready to see a lot more.

Salesforce and Tibco won’t be the last. Expect more announcements in this vein for 2010. Mike Gotta noted that this concept was called “contextual collaboration”, and was promoted by Matt Cain in the late 1990s. The web 2.0 tools of today are better, more diverse, more scalable and better adapted to human behaviors than whatever was available a decade ago.

Putting these tools in-the-flow will be a powerful basis for expanding Enterprise 2.0’s reach. A challenge for standalone general tools of today is that they require employees to toggle between different apps. This can make it tough to get traction. For example, Intellipedia has been making a difference, but it’s still just “a marginal revolution“. Not all agencies have made it part of daily work.

In the European Oracle Enterprise 2.0 Group on LinkedIn, Oracle’s VP of Enterprise 2.0 for EMEA asked this question:

What the article doesn’t cover and where I would be interested in your views is how the use of E2.0 tools would enable the Business Processes themselves to be changed. Or innovated completely. eg how do you bring Crowdsourcing, Idea Engines, Prediction Markets etc and integrate those into ERP systems?

Yes, even Oracle is discussing this concept. Watch how this theme unfolds in 2010.

#3: Enterprise 2.0 Market Stratifies

I see the Enterprise 2.0 market splitting into these two models:

  1. General collaboration suites that replace intranets and portals
  2. Specialized applications that deliver tangible value around a specific activity

Watching the progression of general collaboration suite vendors, I’ve always believed their ultimate goal is to replace existing 1.0 intranets and portals. After all, once an Enterprise 2.0 vendor’s solution…

  • has the ability to store and organize files,
  • provides pages for company-wide and team-specific communications,
  • offers powerful search capabilities,
  • includes APIs for third party integration,
  • can be organized into multiple spaces, and
  • has a superset of the elements of the corporate directory,

…why would a company maintain both the intranet and the social software suite. Pick one. The Enterprise 2.0 vendors still need to mature their product further to become the company intranet/portal. But I see that as their destination.

Meanwhile, a new crop of vendors have dispensed with the pursuit of all-everything suite approach. Rather, they build applications that integrate social in solving specific problems (e.g. Spigit for innovation management). Gartner analyst Anthony Bradley tabs these vendors’ offerings as “activity-specific social applications”. These vendors build in functionality that solves specific problems for companies, usually with definable ROI.

I expect the general collaboration suite vendors will offer their own specialized modules as well, in order to offer tangible ROI solutions to their customers.

Watch how this stratification dynamic plays out in 2010.

Those are my thoughts – what do you think?

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What the article doesn’t cover and where I would be interested in your views is how the use of E2.0 tools would enable the Business Processes themselves to be changed. Or innovated completely. eg how do you bring Crowdsourcing, Idea Engines, Prediction Markets etc and integrate those into ERP systems?

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My Ten Favorite Tweets – Week Ending 110609

From the home office along the former Berlin Wall in Germany…

#1: McAfee: Bad practice of #e20 evangelists = Declare war on the enterprise. Presents a bad msg to corporate buyers. #e2conf

#2: Frappaolo: His work finds that age has little to do with #e20 adoption. Creative thinkers span all ages. Org culture is the issue. #e2conf

#3: Yup, SharePoint 2010 is a platform: Microsoft To Offer Application Marketplace In SharePoint 2010 http://ow.ly/zYM2 via @rww #e20

#4: Google Wave product mgr. Best way to use #googlewave is for collaborative activities, not wholesale replace email. #e2conf

#5: RT @Brioneja: Google’s Wave Might Find Its Real Home Inside Company Servers http://bit.ly/2VJkxP #collaboration #software

#6: For #innovation, conflict is good. Conflict is right. Conflict works. Read @AndreaMeyer‘s post to find out why: http://ow.ly/za7v

#7: Good take @zeroinfluencer: All User Centric Design is modeled around the ego. Good software design keeps that in mind. http://bit.ly/39gim3

#8: Gov 2.0 – City of Manor Taps Citizens’ Ideas for Improvement (via Spigit blog) http://bit.ly/4A1hNc #gov20 #innovation

#9: RT @zee RT @jestei I find twitter #lists weirdly, narcissisticly fascinating; they provide a rare window into how others would define you

#10: http://twitpic.com/noz7d – Tonight’s Jack O’ Lantern is a wink emoticon 😉 My 5 yo’s choice. Future geek.

My Ten Favorite Tweets – Week Ending 102309

From the home office in Kabul, Afghanistan…

#1: Twitter’s Web Traffic Flatlines http://ow.ly/viH9 …while Facebook continues to grow.

#2: Initial take on MSFT’s Twitter integration (http://ow.ly/vLGF)…that is sweet! Now will they show tweets beyond the last 3 days?

#3: RT @danschawbel REPORT: 65.6% of CMO’s feel that social media should be done in-house http://tinyurl.com/ygdjtfb

#4: If the Enterprise 2.0 crowd wanted to share a link, my guess for the top 5 services: Twitter, Facebook, LinkedIn, Posterous, Yammer. Agree?

#5: Study – Collaborative Networks Produce Better Ideas (via Spigit blog) http://bit.ly/3xoPM5 #e20 #innovation

#6: Interesting point from #spc09 – SharePoint is a critical driver of MSFT’s future growth. #e20

#7: Two SharePoint 2010 articles – RWW http://bit.ly/1zjI49 | @olivermarks http://bit.ly/4f9en0 – paint a good picture of its #e20 initiatives

#8: Southwest Airlines is running a “test lab” of ecofriendly products on its new Green Plane http://ow.ly/w3fR

#9: RT @Cubba: @bhc3 I thought this was timely based on our conversation at Patsy’s; http://bit.ly/1WQGwH = “10 Tips for Retrosexing on FB”

#10: http://twitpic.com/m13gk – It’s pumpkin patch time! Kids have their own. #halloween

My Ten Favorite Tweets – Week Ending 101609

From the home office in a balloon 7,000 feet above Colorado…

#1: Well, this was unexpected. The Spigit funding news has hit Techmeme http://bit.ly/3ETPFp #e20 #innovation

#2: LinkedIn: 50 million professionals worldwide http://ow.ly/uq7s “Last million took only 12 days” Wow. Tipping point?

#3: RT @mwalsh: Seth’s best post of the year – get over yourselves…you’re not that cool, interesting or smart. http://bit.ly/3HwrV6

#4: Is Social Media the New Cigarette? asks @billives http://ow.ly/u8IY Looking at social media addiction

#5: RT @nyike First Jive, now Spigit building #e20 and collaborative functionality on top of Sharepoint http://bwbx.io/hina

#6: Within firms, collaboration technologies are dictated by most powerful person involved in the collab http://ow.ly/tJgf by @amcafee

#7: Just as interesting as this WSJ piece is, Why Email No Longer Rules… http://ow.ly/tZpj are the skeptical cmts left by readers #e20

#8: If companies like $GOOG and $MMM excel and incl employee 15-20% personal time for innovation, why haven’t others adopted same?

#9: Wind farm firm makes sure its wind mills are 30 miles away from nearest Starbucks. http://ow.ly/tRQP Why? Best way to avoid NIMBY’s

#10: When a company gets funding, all sorts of interesting “opportunities” emerge. Just got a solicitation for Spigit to sponsor a NASCAR driver.

My Ten Favorite Tweets – Week Ending 081409

From the home office in Taiwan…

#1: Investigating this foreign land, Facebook, now that FriendFeed is to be folded into it. Already had FriendFeed features, so kinda familiar.

#2: Imaginatik CEO @mark_turrell & I (with Spigit) debate the merits of Enterprise 2.0 and innovation: http://bit.ly/Dd55d Good stuff

#3: Jeffrey Phillips: The directed, invitational external community model best for generating disruptive innovations #spigit09

#4: Jeffrey Phillips: Great exercise is to purposely build ‘failure projects’. Learn what can go wrong, pick up signals for innovation #spigit09

#5: Reading: Should you do only things that are “strategic”? http://bit.ly/HTQty by @bankervision Small stuff in aggregate much bigger

#6: Great list by Gary Hamel: 25 Stretch Goals for Management http://bit.ly/vd8om (found via @sniukas) #innovation #e20

#7: Microsoft’s SharePoint Thrives in the Recession http://bit.ly/17g5I2 Microsoft is getting stronger in the #e20 space

#8: What Works: The Web Way vs. The Wave Way http://bit.ly/ZYWPN by @anildash His take: Google Wave will inspire changes, not *be* the change

#9: Has seeing the time “11:11” on a digital clock ever freaked you out? You’re apparently not alone: http://bit.ly/XrqVB

#10: Hiccups tip: Eat a teaspoon of sugar. My Dad taught me that, and it works every time. There must be a scientific explanation.

My Ten Favorite Tweets – Week Ending 072409

From the home office in Sacramento, CA…

#1: AMZN CTO: RT @werner Was asked for definition of real-time web: to go f/ innovator to homophobic censor or book-burning nazi in 60 seconds.

#2: Reading: A First Look at SharePoint 2010 http://bit.ly/15y1tT Includes a great visual mapping of SharePoint 2007 to 2010

#3: Innovating innovation: An Interview with Scott Anthony of Innosight http://bit.ly/5pXbb Disruptive #innovation needs senior mgt support

#4: RT @VMaryAbraham Host a Failure Party http://tinyurl.com/oh99zc #innovation #KM Celebrate the journey, not just the destination

#5: Gary Hamel to keynote Spigit’s Customer Summit Aug 13-14, 2009 http://bit.ly/4wRljR #innovation

#6: The Potato as Disruptive Innovation http://bit.ly/4gqzQa “the potato explains 22% of the observed post-1700 increase in population growth”

#7: I generally avoid following the celebrities. But I’m so impressed with @KevinSpacey that I had to follow. His films and acting rock.

#8: RT @mattcutts A Google easter egg for people who know what recursion is: http://bit.ly/URa8U 🙂

#9: Rick Astley is playing on the radio here. We’re all being rick rolled.

#10: Working with my son on his Snap Circuits Jr electronics kit http://bit.ly/bRsJQ He wants to build his own nightlight.

My Ten Favorite Tweets – Week Ending 032709

From the home office in Fargo, North Dakota…

#1: My alma mater, UVa, to drop its computer labs since everyone has laptops. http://bit.ly/6YnAe I remember the labs well.

#2: MSNBC picks up the cisco fatty story: http://bit.ly/IJH5

#3: ABC News online picks up the cisco fatty story http://bit.ly/HodQ1

#4: The twitterer behind the cisco fatty incident, @theconnor , blogs her response: “Dear Internet Superheroes” http://bit.ly/tDx4k

#5: Connor Riley (@theconnor of cisco fatty fame) sits down with MSNBC online for an interview http://bit.ly/KDcPe

#6: “Business is a good game – lots of competition and a minimum of rules. You keep score with money.” Nolan Bushnell (Atari founder)

#7: A classic Business Week article from 2000 asks “But how will Google ever make money?” http://bit.ly/ovA6x #twitterbusinessmodel

#8: Catching up on this amazing e2.0 post by @dhinchcliffe “Sharepoint and Enterprise 2.0: The good, the bad, and the ugly” http://bit.ly/IAiDW

#9: Still wonder why we don’t have BART ringing around the SF Bay. Instead, we get BART + Caltrain. Why? Tracks is tracks.

#10: Utterly fascinated with the SF K Files blog where parents (i.e. moms) are posting info about the kindergarten arms race: http://bit.ly/sl5fU

My Ten Favorite Tweets – Week Ending 031309

From the home office in Austin, Texas…

#1: @defrag has been saying he thinks the economy is slowly coming around. To that end: http://bit.ly/pP5bd and http://bit.ly/nRkzv

#2: “I think the days of the traditional San Francisco startup approach are numbered.” http://bit.ly/jyw4H

#3: @petefields Companies should follow all who follow them. I’d bet companies’ tweet reading is more keyword & @reply based, not person based.

#4: Maybe it’s just me, but Techmeme has improved a lot recently in terms of the variety of interesting stories. Human editor + user tips = +1

#5: “Facebook is the SharePoint of the Internet” http://bit.ly/4fu73o

#6: This shouldn’t be too controversial…The Case Against Breast-Feeding in April’s Atlantic Magazine http://bit.ly/Xs4ZG

#7: If browsers were women http://bit.ly/kO1su (h/t @mona)

#8: I’ve been blissfully unaware of what Sophie’s Choice is about all these years. My wife told me about it last night. Never gonna watch that.

#9: Actively banishing artists showing up in my Last.fm recommendations: Peter Cetera, Richard Marx, John Parr.

#10: In an email f/ my son’s preschool: One kid: “We’ll take them home in the future”. My son Harrison: “But I’ve never been to the future.”

Microsoft Is Getting Much More from Its Investment in Facebook

When Microsoft invested $240 million in Facebook at a $15 billion valuation, the general reaction was one of disbelief. The valuation is too high to justify. But some people at the time felt like the dollar amount was well within the comfort zone of a giant like Microsoft. Here’s how commenter Prashant put it on TechCrunch:

I don’t think that MSFT expects to make money on the $250MM at a $15B valuation. Internally for them it is a $250MM investment to get an exclusive advertisement deal over the next 4 years. The 2% stake is only icing on the cake. Had they announced that they have given $250MM to Facebook for a 4 year exclusive ad deal, no one would have flinched, this is cheaper than the Google/MySpace deal.

Over the past few days, I’ve read a couple other blog posts that make me think Microsoft may be getting much more from its investment. Here’s a quick list of what what Microsoft seems to be getting:

  1. Exclusivity on a huge number of page views, and experience with social context advertising
  2. Insight into an emerging competitor to its operating system and productivity apps hegemony
  3. Model for bringing social networking into the enterprise

Let’s look at #2 and #3.

Operating System and Productivity Apps

Dan Kimerling wrote a great piece on TechCrunch about how Generation Y looks to the new wave of social media apps for functionality previously provided by Microsoft’s desktop and web offerings. As Dan notes:

Facebook succeeds because it is the killer web application for communications and personal information management

These are in-the-flow tools. Facebook users don’t leave Facebook, open email and send a separate message. They do it all, right there. The level of functionality is just right for their usage.

The original Microsoft email and productivity apps were pretty simple, but they did just what people needed, and with skillful marketing tie-ups, Microsoft became the standard for millions of us. Over time, Microsoft has added new features to each release, because that’s how they grew their revenues. You had to get the latest. But what happened was we got to feature bloat.

Via Kathy Sierra, Creating Passionate Users Blog, 2005

Via Kathy Sierra, Creating Passionate Users Blog, 2005

I think Kathy Sierra’s graphic is spot-on for general mainstream users. Personally, I probably use only 5% of the functionality available with the applications.

I’ve talked previously about the Innovator’s Dilemma here. As market incumbents grow, they tend to move up-market in terms of functionality in their offerings. What this does is open the door for competitors with new functions that are simpler to use. These new competitors target a niche, and grow slowly upward from there.

Facebook’s niche is still heavily Gen Y. But they’re gaining a foothold. Microsoft’s investment gives them a ringside seat for what’s happening there.

Social Networking Inside the Enterprise

I was reading a blog post by Doug Cornelius where he reported out notes from a session at the Real World SharePoint Experiences conference. A Microsoft Solution Specialist was describing the roadmap for SharePoint. If you don’t know, SharePoint is Microsoft’s enterprise collaboration software, where teams can build out individual sites to shhare and work on documents and to communicate. Each employee has a MySite, which includes their corporate directory information as well as the the list of groups and documents that are theirs.

Here’s a quote from Doug’s post:

Social networking. Mysite will be the hub of the social network. There will likely be Knowledge Network integration. They are looking to take some lessons from their investment in Facebook.

The Enterprise 2.0 space is hot, and social networking is a big focus for companies and vendors. Through its investment in Facebook, Microsoft can learn a lot of what drives interactions, how people connect and watch the mistakes the young company makes. As Dave Ferguson put it:

Good judgment comes from experience. Experience comes from bad judgment. The corollary is that the bad judgment doesn’t have to be yours.

Microsoft continues to evolve its SharePoint offering, and I look forward to SuperPoking my colleagues one day.

Wrapping Up

At first, the only purpose for the Facebook investment appeared to be advertising related. I’m sure that’s still primary, because of the huge dollars involved.

But Microsoft is also gaining an information advantage for the new wave of social computing that is finding its way into both consumer and business experiences. Given the vast reach of the company’s product lines, that’s pretty valuable as well.

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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.