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Slide 1: ENTERPRISE 2.0:  social networks behind  the firewall Unlocking the business value of Social Networks & Web 2.0 technologies for the Enterprise Shannon Ryan - President & CEO shannon@nonlinear.ca | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 2: Objectives » Give a clear understanding to the myriad of technologies that encompass Web 2.0 technologies » Identify and discuss 4 broader internet trends in Web 2.0 » Explore the real power of Enterprise 2.0 within your intranet, your enterprise, and give you a roadmap on how to start. » Hopefully spur some discussion and answer some questions. » Lets get started. | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 3: stepping back to the time of a simpler internet… 95 Theses 1. Markets are conversations. 2. Markets consist of human beings, not demographic sectors. 3. Conversations among human beings sound human. They are conducted in a human voice. 1999© | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 4: Full disclosure » I am bona-fide cynic in this area. » I been through the internet wars … hell, I remember the browser wars, and when the “fish cam” was the coolest thing on the web » Web 2.0 (or whatever we agree to call it) is new, untested and not fully documented … move carefully » I also did an undergrad in Soviet and Eastern European Studies … so I am big on understanding the theory first, before the code. • That being said… » There are some REALLY interesting, valuable and potentially revolutionary trends happening that have the potential to add significant value to your enterprise.
Slide 5: NLC: Executive Summary Technology Partnerships
Slide 6: A Sample list of Clients FinServ
Slide 7: NLC Services
Slide 8: Setting the playing field » Are part of a social network? » Book club, chamber of commerce, hockey team, etc. » Are part of an online social network? » FaceBook, Linked-In, MySpace, etc. » » » » » » » Have contributed to or edited a Wikipedia page? Author a blog(s)? Use a feed aggregator? Have created a YouTube video? Watch YouTube videos? Use social bookmarking tools? Tweet?
Slide 9: Let’s understand the terminology » RSS » UGC » Mashups » Wiki » Blog » Social Bookmarking » Tagging » Twitter The elusive Web 2.0
Slide 10: Blog Examples
Slide 11: Blogs + Tagging
Slide 14: Exploring Web 2.0 outside the Enterprise 4 broader trends you need to know
Slide 15: 4 broader internet trends at play 1. Social Networks have the potential to change the way we think, interact and view our corporation. and they will certainly change the way we think about enterprise knowledge … and software. 2. The applications you thought to be “consumer services only” will be inside the enterprise, 3. The rise of user generated content is upon us like a tidal wave – and its coming to your intranet 4. The age and demographic profile of your users / customers / employees has shifted
Slide 16: What makes social networks so special? » Social networks are not new… “It may have been possible in the past, for things to have happened in isolation, but from this time forth, the world must be seen as an organic whole, everything affects everything.” Polibius born c. 200, died c. 118 BC Megalopolis, Greece,
Slide 17: What are social networks? » A social network is a social structure made of nodes that are tied by one or more specific types of interdependency. » Or in plain English: » Social networks are essentially about who know who, and who knows what. | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 18: Why are social networks important to business? » If you scratch the surface of any business, you’ll find two very different organizations. » The formal organization - the one that can be represented by the boxes of an org chart. » The informal organization - the one shaped by the day-to-day interactions of employees – conversations in hallways or in airport lounges, exchanges of messages through email and voicemail, conversations over a squash game.
Slide 19: Networks in your Organization McKinsey Quarterly Harnessing the power of informal employee networks, 2007 Lowell L. Bryan, Eric Matson, and Leigh M. Weiss
Slide 20: Why should that matter to us? » Unfortunately, most corporate IT systems are geared to the needs of the formal organization and ignore the informal one. » In the “formal organization” software like SAP, PeopleSoft are “enterprise applications” that are designed through elaborate, top-down processes. » The “informal organization” is served, instead, by simpler, personal software … "comfort apps" like e-mail, PowerPoint, Excel, and the watercooler.
Slide 21: What’s the problem with that?
Slide 22: » Most of the really useful information that flows through a company never gets captured or broadly shared by employees.
Slide 23: » The company essentially loses the ability to truly harness, capture, and learn from the knowledge its employees create | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 24: social networks – they’re for kids » In stark contrast to corporate IT systems, social networks shape themselves to their users rather than forcing the users to adapt to preset specifications. » They do what corporate systems so often fail to do: they make the codification and sharing of valuable information easy. » And this MAKES GOOD BUSINESS SENSE!
Slide 25: Ya sure, but Bill said to …
Slide 26: Codified Knowledge vs Context » “using codified knowledge in the form of electronic documents saved time during the task, but did not improve work quality or signal competence to clients, whereas in contrast, sharing personal advice improved work quality and signaled competence, but did not save time,” http://knowledge.wharton.upenn.edu/article.cfm?articleid=1841
Slide 27: Trend number 2 The applications you thought to be “consumer services only” are quickly coming inside the enterprise. | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 28: More ClueTrain Manifesto… 1. We're both inside companies and outside them. The boundaries that separate our conversations look like the Berlin Wall today, but they're really just an annoyance. We know they're coming down. We're going to work from both sides to take them down. | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 29: Outside is coming inside » Bottom up, software-as-a-service, do-it-yourself, monthly subscription, collaborative, modifications of applications are part of a movement that is seeping into corporations, just as PCs did in the early 1980s. » and if IT doesn't provide the tools they will bring them in, and charge them to their credit card. | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
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Slide 33: “No company will build or sustain a competitive advantage unless it capitalizes on the combined power of individualized workers and social dynamics.” Gartner Group also predicts that wikis will become mainstream collaboration tools in at least 50% of companies by 2009.
Slide 34: Trend number 3 The rise of user generated content is upon us like a tidal wave – and its coming to your intranet | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 35: User generated content » Be afraid » Trust me when I say this – UGC is coming to your enterprise, and if the public web is any indication, there is going to be a tonne of it, and quickly. » How much and how quickly…
Slide 36: How embarrassing, Dad’s on YouTube » Four of the top 8 most trafficked sites on the Internet are social media sites that didn’t exist a few years ago: » YouTube.com (more than 100 million videos are served EVERY day) » MySpace » FaceBook (only open to the general public one year ago) » Wikipedia (in 2006, the English Wikipedia celebrated the creation of its millionth article)
Slide 39: Trend number 4 The age and demographic profile of your users / customers / employees has shifted | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 40: Damn … we are getting older » 20% of the American workforce holding executive, administrative, and managerial positions are set to retire THIS YEAR » In a recent Hay Group survey of 5000 executives, 46% indicated that they expected to remain in their position for only 2 to 5 years » In sectors such as manufacturing, oil and gas, utilities, government, and defence, these departures are nearing crisis proportions. » the oil and gas industry, the average employee age has risen dramatically; current estimates suggest that roughly 60% of experienced managers will retire by 2010 | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 41: And it’s costly to replace » General Mills, for example, estimated that the departure of just one experienced marketing manager could cost millions of dollars due to the loss of critical marketing and client knowledge. » More broadly costs of recruiting and filling vacancies, lost productivity, and training, to replace employees is estimated to range from 30% to 150% of an employee’s salary » So we are constantly adding new recruits to the mix, | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 42: Lets take email for example » Legitimate e-mail will drop to 8% this year, down from 12% last year, according to Redwood City (Calif.) e-mail filtering outfit Postini Inc. » Why? » Perhaps the biggest death knell for e-mail is the anthropological shift occurring among tomorrow's captains of industry, the text-messaging Netgens (16-to-24-year-olds), for whom e-mail is so "ovr," "dn," "w/e (over, done, whatever).“ | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
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Slide 45: What have we learned? » What it is » Why it’s important » And know, hopefully we can talk about what you can do about it.
Slide 46: Belief in the individual » Einstein's General Theory of Relativity was not conceived by a crowd. Neither, incidentally, were Beethoven's symphonies, War and Peace or the double helix structure of DNA. » 'The wisdom of the crowd' is the fallacious notion that a herd of humans hampered by groupthink can outperform the solitary genius.
Slide 47: Web 2.0 behind the firewall Making it all relevant for the corporation
Slide 48: The Web 2.0 wave percentage of companies adopting Web 2.0 tools in 2008
Slide 49: Web 2.0 in my Enterprise? » » » “Ciscopedia” wiki (of course the Cisco Wikipedia) Text and video blogs “I-Zone” wiki for cultivating ideas as a key component to their very successful intrapreneurship which is generating new businesses within Cisco. » I-Zone has generated 400 business ideas with 10,000 people actively contributing to the ideas. “we just did three billion-dollar market opportunities without my knowing about it.”, Cisco CFO referring to Emerging Technology executive Martin de Beer’s response to I-Zone. » » Employee profiles (internal version of MySpace) which provides the basics such as title, contact information, etc as well as video, notes, blog, roles, expertise, instant messaging, video messaging. Social bookmarking: “We’re going to use social bookmarking to allow us to take the pulse of the organization”  Advantages » Significantly faster closing and integration of acquired companies such as closing the WebEx acquisition in 8 days. Cisco has been acquiring a new company every 3 weeks on average in 2008. (Yes, the Borg will require you to speak Web 2.0) » Ideas generated from their I-Zone wiki which have launched new products and entire business units. » Reducing expenses and carbon footprint by reducing business travel. » Faster business unit development. Cisco grows one new emerging technology business unit about every 3 months. » “I’m comfortable that I can grow productivity at 10% per year for the next decade (because of social networking / collaboration).” Chambers
Slide 50: Web 2.0 in my Enterprise? » » Wikis  “A lot of the collaborative work that goes on amongst project teams has really benefited from the use of wikis and discussion forums; the ability to have people interact much more quickly, much more immediately on the web has been very powerful for us.”, Fred Killeen Customer facing blogs “We know that we’re competitive with any truck or car company in the world in terms of quality and durability and design, but we felt that message wasn’t really being communicated very well to people outside of GM. As we looked at how we could help change that perception, we felt that blogs were the right way to develop better interactivity with the customers and really communicate our message better.”, Bill Betts, GM Customer Communication Manager Exploring mashups Exploring folksonomies and tagging » » Advantages » Real-time collaboration around the world & across time zones » Developing a common sense of terminology and language across the company » “they don’t have to e-mail Powerpoint presentations or Word documents to each other in order to share ideas; instead, they can just start a wiki” (Killeen) » “you don’t need to be a technical expert to post the content” (Killeen)” » “there’s great potential for changing the way we do a lot of things, from how we engage our users, to how we develop systems, to how we interact with our customers, right through to how we collaborate together in order to design and develop better cars and trucks.” (Killeen) Approach / Advice » “do some pilots, and through those pilots understand how it changes the work and how it impacts the users and what you need to do from a change management standpoint. The thing that makes this technology great is that it’s reasonably simple yet allows you to exploit a whole host of capabilities.” (Killeeen)
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Slide 52: More Web 2.0 in the Enterprise
Slide 53: Why are we talking about the intranet? » The intranet is (should be) “the social hub” of your enterprise » Intranets have not lived up to expectations: » Workers not using intranet to do work » They are not adding any value to the corporation » They are getting bigger and more expensive to run » Adoption rates going down » Ineffective for knowledge management » More information is being created every day | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 54: A little more ClueTrain 1. Companies typically install intranets top-down to distribute HR policies and other corporate information that workers mostly ignore. The best intranets are built bottom-up by engaged individuals cooperating to construct something far more valuable: an intranetworked corporate conversation. While this scares companies, they also depend heavily on intranets to generate and share critical knowledge. They need to resist the urge to "improve" or control these conversations. 2. 3. | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 55: Living together in harmony » Intranet 1.0 is a centrally planned means of gaining access to approved documents, forms and applications. It’s a top-down communication system. » Intranet 2.0 is infrastructure that supports the spontaneous capture of corporate knowledge. It’s a bottom-up communication system.
Slide 56: Intranet 1.0 vs Intranet 2.0 » Intranet 1.0 » Approved Content (think Forms, Brand Guidelines, Tutorials) » Small group of authors and smaller group of approvers » Secure Access to Key Applications » Centralized organization and structure » User research can identify key tasks and processes – intranet designed to support these » Make Critical Content Available » Intranet 2.0 » Spontaneous Content – No approvals » Many, many authors » Ad-hoc creation and decentralized structure » Seamless browsing through internal and external applications and content » Support for tasks and processes is emergent, not planned. » Capture Corporate Knowledge
Slide 57: Intranet 2.0 roadmap 1. Undertake ONA as a roadmap to understanding your social network 2. Build the framework for content contribution and participation » Individual “my space” pages for EVERYONE » Wiki’s for iteratively refined content » Blogs for sequentially discussed content 3. Begin capturing and categorizing the information » Social Bookmarking and tagging technology 4. Aim for more ad hoc “conversations” » Team sites 5. Implement and tune your search strategy 6. Adoption, adoption, adoption
Slide 58: WARNING! “deep thoughts ahead”
Slide 59: Organizational Network Analysis may hold the keys to success » ONA is the logical first step in understanding how work actually gets done in you corporation » Identify key knowledge vulnerabilities in a network by virtue of both what a person knows and how their role (or departure) will affect a network » Gives you a target list of who people in your organization trust and interact – use this! » Provides a tangible metric to gauge the success and health of the information flow within your company. | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997
Slide 60: ONA: consulting company source: Rob Cross
Slide 61: Same company: 5 brokers removed source: Rob Cross
Slide 62: Integration of new hires | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997 source: Rob Cross
Slide 63: Build the framework for Enterprise 2.0 content creation » Personal pages » Key in expanding the network and the interactions » Wiki Examples: » A CV Wiki allows all employees to maintain their profile » A project documentation Wiki allows real-time updates to technical docs » The Payroll team creates a 'How-To' guide that documents the steps of how to submit an expense report. On this same page, they attach the actual spreadsheet template, giving employees everything they need in one place. » Fast, simple, centralized posting of news, announcements by anyone » Blog Examples: » Introduce new technology or highlight lessons learned during a project » Employee “profile” blogs – “Serena Software makes Facebook their Intranet” » Knowledge leadership
Slide 64: Capture and Categorize » Internal content: » Tagging of content – taxonomies, folksonomies » External content: » Social bookmarking and tagging » Collective intelligence » In-bound RSS feeds facilitate aggregation
Slide 66: Ad Hoc Sites » We really like SharePoint as a technology to users to create a new, selfcontained sites » These grow spontaneously around: » Projects » Committees » Social Activities » May be entirely rogue – not known to intranet » Security and permissions vary
Slide 67: Critical Role of Search » Intranet 2.0, if successful, promises explosion of content » No formal information architecture – it will grow organically, from every angle and corner of your organization » Careful selection of enterprise search solution is critical. Look for: » » » » » » Ability to “trim” results by permissions Capability to search structure and unstructured data Capacity to create collections Search analytics Tuning facilities for promoting specific content Again we like MSFT here for a number of integrated and FAST reasons
Slide 68: Adoption, adoption, adoption » What happens if you throw a party and no one comes? » The “hardest” part of the equation will be the startup and adoption – not the technology » There is a reason all the of the Intranet 2.0 is only as good as content contributors » Keys to success: » Use ONA as your roadmap » Focus on absolutely simple ease of use » Identify likely early adopters and allocate time for their use of intranet » Start small and quietly – have executive promote once it has content/is rolling
Slide 69: A few more tips » Assess your organization’s cultural readiness. » Policies are necessary. What can and can’t be done needs to be defined and anonymous postings should not be allowed (everyone needs to own their contribution). » Focus on the people, not the technology. » Everything is about conversation and dialogue. » Everyone gets to have their say. Prepare to relinquish control and share the process. » Don’t obsess about a hard ROI … yet.
Slide 70: Possible Next Step » NLC 3 day readiness assessment » NLC Social Networking in the Enterprise Whitepaper coming in early June » More info: Shannon Ryan shannon@nonlinear.ca http://www.nonlinear.ca | www.nonlinear.ca ottawa 613.241.2067 toronto 416.203.2997