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The Two-Year Lag from Web 2.0 to Enterprise 2.0

The Enterprise 2.0 sector draws heavy inspiration from innovations in the Web 2.0 world. Indeed, the name itself, Enterprise “2.0” reflects this influence. From a product management perspective, Web 2.0, and its derivations social networking and social media are great proving grounds for features before coding them into your application.

A fruitful area to review is how long it takes for a feature to go from some level of decent adoption in the consumer realm to becoming part of the mainstream Enterprise 2.0 vendor landscape. The list of features that have made the jump – forums, wikis, blogs, tagging, social networking, activity streams, status updates – is impressive. Let’s look at three features that made the leap, with an eye toward how long it took.

Tool Year of Web Adoption Year of E2.0 Adoption
Wikis 2002 2004
Social networking 2006 2008
Microblogging 2007 2009

Here’s the back-up for those dates.

Wikis: Wikis got their start back in 1995. From there they grew, and the application became popular with computer programmers. But it hadn’t caught hold outside that culture. Wikipedia was launched in January 2001, and grew rapidly over its first two years. It wasn’t yet mainstream, but it clearly had caught a wave among early adopters. As recounted on the history of wikis page in Wikipedia, 2004 – 2006 saw an explosion of interest in wikis from companies.

Social networking: Defined as enabling social profiles, and connecting with others. Facebook started in 2004, and grew very popular among colleges. In 2006, it opened up its membership beyond college students, and turned down a $1 billion offer from Yahoo! Clearly, the company was on fire (even then).

In April 2008, Jive released Clearspace 2.0, which was touted as Facebook for the enterprise. Socialtext 3.0 was released in September 2008, and it included Socialtext People, its social networking feature. And I can tell you that at BEA Systems, there was a second quarter 2008 release of a Facebook for the enterprise in the Aqualogic product line.

Microblogging: Twitter. The source of it all. Twitter actually was conceived as an idea back in 2000, and company was started from a 2006 brainstorming session at Odeo. But it really hit big with the early adopter set at 2007’s South by Southwest.

Microblogging broke into the Enterprise 2.0 world when Yammer won best-of-show at the September 2008 TechCrunch 50. But that doesn’t count as mainstreaming into Enterprise 2.0. Yammer proceeded to grow strongly the next few months. And Socialtext introduced Signals in March 2009.

So there’s some documentation backing my 2-year cycle for Web 2.0 innovations to move from hitting the early adopter set to the Enterprise 2.0 sector. Note that this doesn’t apply to every Web 2.0 innovation. No one ever talked about “MySpace for the Enterprise” and there’s really not a Flickr in the Enterprise 2.0 umbrella.

Which raises a question about today’s hottest Web 2.0 trend…

Foursquare for the Enterprise?

Foursquare, and its up-n-coming competitor Gowalla, are all the rage these days. These location-based social networks are good for seeing what friends are doing. Foursquare also integrates features that reward participation (points), add a sense of competition (mayors) and provide recognition (badges).

Mark Fidelman recently wrote about Foursquare and Enterprise 2.0. And using our handy two-year lag calculation, somewhere in early 2012 the first mainstream Enterprise 2.0 will integrate Foursquare features. Actually, two of them.

Location check-ins

Employees will check in their locations from all around the globe. Sales meetings, customer on-site deployments, sourcing trips, conferences, etc. Sure, this info might be in the Outlook Calendar. But even if it is, Outlook Calendar entries aren’t social objects. These check-ins will allow you to know where colleagues are, including those you don’t know well. But wouldn’t it be nice to know if some other employee visited someplace you’re investigating?

These check-ins can be even more tactical. Folks who are part of a meeting in a conference room all check-in. Voila! Meeting attendance, which everyone can see. For an individual employee, these check-ins become a personal history of what you did over the past week.

Mayorships, Badges, Points

Foursquare makes it fun, and for many people, addicting, to check-in. You get points and *bonuses* when you check into the places you go. If you check in to the same place enough times, you get to be mayor of a venue and tweet it about it. You earn badges for accomplishing different things in the Foursquare system.

These features have had the effect of motivating legions of people to participate. It’s fun to see your stats. It’s fun to get a little competitive.  It’s great when you get that notification that you’ve earned a new badge.

Andrew McAfee wrote a series of posts exploring the question of whether knowledge workers should have Enterprise 2.0 ratings. This chart was from one of his posts:

Well, the Foursquare approach certainly takes us down this path, albeit in a fun way. I’d be remiss if I didn’t call out that Spigit already has these tools in place (ahead of its time?).

So what do you think? Personally, I’m looking forward to more Foursquare in the enterprise.

I’m @bhc3 on Twitter.

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Yammer Gets Bronx Cheers from the Blogosphere. Why?

Yammer, as much of the free world seems to now know, won “best of show” at TechCrunch50. Yammer is an enterprise 2.0 company. The blogosphere had a fairly negative opinion about this. I read a number of these posts, and the table below outlines the reasons Yammer was viewed negatively:

Links to source posts: Dennis Howlett, Rafe Needleman, Rob Diana, Mathew Ingram, Svetlana Gladkova, Chris Cardinal, Chris Brogan, Jennifer Leggio, Bernard Lunn, Joe Duck, Stephen Baker, Mike Gotta, Fred Wilson, Duncan Riley, Liz Gannes

It’s a diverse collection of bloggers, and they each bring different perspectives. But there was enough commonality that I bucketed the reasons into the five groups you see in the table.

The reactions surprised me a bit – although there were positive reactions too. Let’s break down these five buckets.

Another Twitter Clone

Understandable reaction. We’ve seen Plurk, Identi.ca, Rejaw, etc. So I get the weary “Yet Another Twitter Clone” reaction.

Key difference here is the market Yammer is pursuing: enterprise. That makes all the difference in the world.

  • For Identi.ca to succeed, people would have to stop using Twitter (see Louis Gray’s post for analytical back-up to this point)
  • For Yammer to succeed, the more people use Twitter, the better.

Twitter ain’t enterprise, and I’d be surprised it gets there anytime soon. But using Twitter makes people understand the value of microblogging, which in turn helps Yammer.

Twitter/Others Will Do This

Given Twitter’s problems with keeping the service stable, I’d be shocked if they had also been putting in cycles figuring out how to go after the corporate market.

The other key difference is this. Enterprise is a different world than consumer. Probably one of the better explanations of the differences was by Mike Gotta, in discussing microblogging inside the enterprise:

“Within the enterprise, it is highly probable that IT organizations will classify these tools as messaging platforms (I would BTW). As a messaging platform, these tools would have to support security, logging, audit and archival functions to satisfy regulatory, compliance and records management demands.”

To succeed in the enterprise, you really need to focus on the enterprise. Twitter is having a field day in its growth in the consumer world. Wachovia just added their Twitter account to the website Contact Us page. Keith Olbermann is now on Twitter. Twitter should really focus on the consumer market, and own that.

Yammer is more likely to bump up against SAP’s ESME and Oracle’s OraTweet.

Extortion Revenue Model

The extortion is based on the fact that Yammer is free for sign-up and use. But if a company wants to control it, access to the administrative functions costs money. So companies will feel compelled to pay in order to manage the goings-on inside Yammer.

I’ll admit it’s a pretty creative enterprise pricing model. It seems to address two issues that bedevil enterprise software vendors:

  • How do I get a company to try my software
  • How do I prove employees will use it and get value from it

Companies don’t pay until they’ve seen employees use it and get value from it. Not bad, and it really wouldn’t be that hard for a CIO to tell employees to stop using Yammer (and block the site).

It is sneaky, but it’s also a clever way to address the adoption and value proposition issues that enterprise software vendors will always face. Atlassian Confluence achieved a solid share of the wiki market via viral adoption. Atlassian doesn’t have sales people – it’s all word of mouth.

Workers Won’t Adopt

This is where Yammer faces the toughest road. Getting people to microblog. Twitter is available to the hundreds of millions of people around the globe who might be interested. And it’s gotten a very small percentage of them.

Inside the enterprise, you need a much higher adoption rate. People already on Twitter are natural adopters, but a lot of employees will still have the “why would I do that?” reaction.

The “sell” has to compare Yammer to existing communication modes:

  • Email
  • Instant messaging
  • Forums

Note that relative to Twitter, Yammer has immediate context and built-in users. Context comes because the internal messages will generally center around work that colleagues have a stake in. In other words, they care more about each Yammer message than they do about individual tweets out in the wild.

The other thing is that managers at the departmental level can join and start using Yammer. On Twitter, if you don’t follow an A-Lister…so be it. On Yammer, if you don’t follow your boss…you’re going to miss something.

Cloud Computing Is Scary

This is an ongoing issue for the entire cloud computing/web apps world. Amazon S3 and Gmail’s recent outages highlight the issue.

Salesforce.com experienced outages back in late 2005 and early 2006. They were a blow to the software-as-a-service sector, but the company appears to have righted the ship since then.

Salesforce.com has a market cap of $6.9 billion. Yammer doesn’t.

But Yammer doesn’t have the database-of-record mission that Salesforce.com does, so the threshold for Yammer is lower. Still, ideally for Yammer, people will message about critical issues for their companies, not just what they’re having for lunch. So Yammer’s scalability, security and reliability will be important.

Cloud computing still has a sell-job of its own, but I like the way Anshu Sharma put it:

“No one (at least not me) is suggesting that on-premise software will disappear – its just that growth in enterprise software will come from SaaS and not on-premise (which is growing at about 4%). Venture capitalists like Emergence Capital and Humbold Winblad are voting with their dollars!”

A lot of action is around SaaS, it’s a question of how long the adoption curve will be. Yammer is counting on this one.

Gartner’s Hype Cycle

Gartner puts out updates on something it calls the Hype Cycle for Emerging Technologies. The hype cycle tracks the market views of various technologies, which go through predictable cycles:

  • Technology Trigger
  • Peak of Inflated Expectations
  • Trough of Disillusionment
  • Slope of Enlightenment
  • Plateau of Productivity

In July 2008, Gartner released its latest view regarding the hype cycle. This one included both microblogging and cloud computing, Yammer’s model:

Courtesy marketingfacts on Flickr

Courtesy marketingfacts on Flickr

Neither microblogging nor cloud computing is anywhere near mainstream uptake. Gartner pegs that at a 2 to 5 year horizon.

The companies that are in now, though, will be best positioned to figure out what drives the Plateau of Productivity. It takes time to learn a market, get some positive customer stories and gain a wider customer base.

I’ll be watching Yammer.

I’m @bhc3 on Twitter.

Riding Coach: A Day in the TechCrunch50 DemoPit

I spent a day in the DemoPit of the TechCrunch50 launch conference on behalf of my company Connectbeam. We didn’t debut at TC50 (two year-old company already has customers), but it was an opportunity to raise awareness among different communities.

I’ll say this: DemoPit is like flying coach, while the folks on-stage are flying first class. You don’t get the amenities or attention, but you still get to travel.

Here’s a quick summary of the experience.

Demo Tables

The tables are like 30 inches across. Not huge, but they were fine. Enough for a big display screen, a sign and a laptop. And that chip tip jar.

Wifi

Absolutely awful. The wifi was spotty early in the morning. Then it went down for several hours. That’s right…several hours. A bunch web-based companies without Internet access. Brilliant.

Jason Goldberg of SocialMedian went out for an EDVO card at the local Best Buy. He was back in business, so my colleague went out for one too. After an initial blue screen of death, we had Internet access again.

Late in the day, a TechCrunch staffer came by to offer another day to do demos since we had it pretty rough. Cool that they acknowledged the issue, and came up with a solution.

Demo-ing

Enjoyed myself when I could show off the product. It was great to take real-live data from someone visiting, punch it in the app and have it do all the cools things I said it could.

Lots of Visits by Tuesday-Wednesday DemoPitters

A lot of guys hitting the DemoPit on Tuesday and Wednesday came through the area on Monday. Smart. They wanted to see how we pitched, and find out what to watch out for (uh..the wifi).

Ashton Kutcher

Yup, Ashton Kutcher was in the house. He was up on stage pitching his start-up Blah Girls. You can read people’s tweet reactions here. It was amusing to see him on stage talking up his site. 10-12 year old girls might like it. Might…

Later this entourage-like crowd of people came through the DemoPit. It was Ashton Kutcher and Jason Calacanis’s were walking Jason’s bulldogs. There were several people accompanying them. Quite the scene.

And still later, Sarah Lacy was interviewing Kutcher. Do you think he got Zuckerberg’d?

FriendFeed Friends

I had a couple unplanned FriendFeed meet-ups, which was really cool.

Here are their handles on FriendFeed:

Weblebrities

Saw a few weblebrities: Michael Arrington, Robert Scoble, Stowe Boyd, Jason Calacanis, Dan Farber, Loren Feldman.

Big Companies

Three big communities were out in the DemoPit: Yahoo, Salesforce, MySpace.

Jason Goldberg of SocialMedian

Jason’s Social Median table had a steady flow of traffic during the day. And he did well with those DemoPit chips. People give poker chips to companies whose products they like. The company with the most chips gets to go on-stage at TechCrunch50 on Wednesday.

Social Media had a pretty good haul. Hope Jason makes it on-stage Wednesday.

Yammer

I liked TechCrunch50 participant Yammer. Enterprise Twitter.

On to Other Conferences

TechCrunch50 was tiring but fun. I enjoyed the scene. Next, Connectbeam will be at the KMWorld Expo September 23. And Defrag after that.

*****

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