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Slide 1: Enterprise 2.0 Anti-Patterns, ROI and metrics Jennifer Okimoto technology • business • people Seni or Managi ng Consul tant, Human Capital Management – IBM US © 2009 IBM Corporation Not for further distribution 1 Photo by Flickr user and IBMer shawdm, used with author permission
Slide 2: In Twitter: @jenokimoto #e2conf29
Slide 3: About Me • Senior Managing Consultant, Enterprise 2.0 Provocateur and • Jen Okimoto jennifer.okimoto@us.ibm.com • • • • • • Hand Holder with IBM Global Business Services – Human Capital Management Practice Leading our Workforce and Talent Solutions – Connect initiative 17 years as a Consultant – BPR, CRM, ERP, L&D, K&C, WTS Current clients in Electronics, Chemicals & Petroleum and Pharmaceutical industries Co-chairs the Web2.0 for Business IBM Community Political Science and Chinese Studies degrees from Wellesley College MPIA in Comparative Public Policies from University of California, San Diego, International Relations and Pacific Studies In the last year I’ve worked in the US, Toronto, Buenos Aires, London, Paris, Bangalore, Singapore, Shanghai and Beijing
Slide 4: About Me Jen Okimoto jennifer.okimoto@us.ibm.com Tag cloud generated by Wordle, a masterpiece app by IBMer Jonathan Feinberg
Slide 5: Agenda • From Hype to Productivity • Enterprise Web 2.0 Anti-Patterns • ROI and Metrics *
Slide 6: Part I: The Journey to Productivity
Slide 7: Going through Gartner’s Hype Curve Visibility Peak of Inflated Expectations Plateau of Productivity Slope of Enlightenment Web 2.0 Technology Trigger Trough of Disillusionment Time Hype Curve conceived by Gartner
Slide 8: Crossing the Chasm Chasm s ri e na sio Vi gy lo ts no as c h us i Te th En Sk m ag Pr is at ts C iv at rv se on es t ep ic s Early Adopters Early Majority Source: Crossing the Chasm, by Geoffrey A Moore
Slide 9: From “Hit or Miss” to Process Stability & Improvement Initial Manage Defined Quantitatively Managed Optimized Hero-based culture Process-based culture Source: IOA CMM Level 5 Journey
Slide 10: The roadmap to the future Columbus Monument, Santo Domingo, Dominican Republic Photo by Aaron Kim
Slide 11: Part II: Enterprise Web 2.0 Anti-Patterns
Slide 12: In software engineering, an anti-pattern is a design pattern that appears obvious but is ineffective or far from optimal in practice. It’s a pattern that tells you how to go from a problem to a bad solution. It’s something that looks like a good idea, but which backfires badly when applied. Sources: Wikipedia (as of 12/Sep/2008) http://c2.com/cgi/wiki?AntiPattern
Slide 13: Antipattern: <pattern name>
Slide 14: Why the bad solution looks attractive It becomes a pattern because somehow it looks like the right thing to do Why it turns out to be bad Common pitfalls What posit ive pat terns are applicable instead Best (Good?) Practices
Slide 15: Antipattern: Fear 2.0 Photo by Flickr user Violator3, licensed under Creative Commons, Attribution 2.0 Generic
Slide 16: • Fear is not a bad thing, but action paralysis is • Failure comes with a name tag • Innovating is risky, not innovating may be riskier • Full control is no longer in your hands • Fail often, fail quickly, fail gracefully and learn from it * Antipattern: Fear 2.0 * Partially based on a presentation by Mike Moran
Slide 17: The cousin to Fear2.0 Antipattern: Control 2.0 Photo by IBM Beehive user Ole Rasmussen, licensed under Creative Commons, Attribution 2.0 Generic
Slide 18: Photo: Leopard EM Antipattern: New World, Old Habits
Slide 19: Photo by Flickr user dcjohn, licensed under Creative Commons, Attribution 2.0 Generic Antipattern: New World, Old Habits
Slide 20: Photo: StockExchange Antipattern: New World, Old Habits
Slide 21: People as your competitive advantage Frequent e-mails Infrequent e-mails Web 2.0 Collaboration You Mary Jim Susan Friends Jim’s manager Your manager Co-Workers John Helen Akira Roberto Chris Other employees in your company Your business partners Peter Your clients
Slide 22: • “It’s just like phone and email” • A fool with a tool is still a fool • “Web 2.0 is an attitude, not a technology” • It’s about culture transformation, not a toolset • “Ultimately, taking full advantage of Web 2.0 (Ian Davis) may require Management 2.0” (Business Week, June 5, 2006) Antipattern: New World, Old Habits
Slide 23: Antipattern: Build it, and they will come Photo by Flickr user Sister72, licensed under Creative Commons, Attribution 2.0 Generic
Slide 24: Antipattern: Build it, and they will come • “If Wikipedia works, my wiki will too” • People have limited bandwidth 2.0 • The joke, the circus and the soap-opera • Clay Shirky’s plausible promise, effective tool and acceptable bargain (HCE) • User Adoption Plan + Balanced Incentives
Slide 25: Motivations and Rewards Source: C’est la maturité, stupide! Maslow s’invite à la table du 2.0 http://mediapedia.wordpress.com/2006/07/30/c%E2%80%99est-la-maturite-stupide-maslow-s%E2%80%99invite-a-la-table-du-20/
Slide 26: Antipattern: The World Is Flat Photo: Wikimedia Commons, Public Domain, NASA
Slide 27: • • • • • In a flat world solutions should be universally applicable Locations and companies have unique cultures Online ecosystems mimic natural ones The joke, the circus, the soap opera… Think about survival strategies: competition, predation, cooperation, symbiosis Antipattern: The World is Flat
Slide 28: Photo by Flickr user pipeapple, licensed under Creative Commons, Attribution 2.0 Generic Antipattern: Geekness 2.0
Slide 29: • “For it to work, you just need to use Firefox, • Second law of thermodynamics: Energy and Entropy download and install Greasemonkey, edit a Userscript and install it. Anybody can do it.” • Laziness 2.0 • Nudge and KISS Antipattern: Geekness 2.0
Slide 30: Photo: Wikimedia Commons, Public Domain Antipattern: Search, and thou should not find
Slide 31: Flickr: photos tagged with “Cat”
Slide 32: What is Web 2.0? Seven Principles Flickr: “Interestingness” and “The Wisdom of Crowds”
Slide 33: • • • • • Your users embraced Web 2.0 and are creating plenty of content Most of it is likely to be, err, not very good Information overload will quickly overwhelm your users UGC needs to be indexed by the main search facility Not all UGC is created equal, so make the good float to the top Antipattern: Search, and thou should not find
Slide 34: Part III: ROI and Metrics
Slide 35: Photo by Flickr user Memotions, licensed under Creative Commons, Attribution 2.0 Generic Antipattern: Intangible means unmeasurable
Slide 36: • “Nobody asks what’s the ROI for phone and email” • Business value must discount costs • Value creation vs. value capture • Easy to understand business case • Easy to calculate ROI models Antipattern: Intangible means unmeasurable
Slide 37: Antipattern: Measuring supply, not demand Photo by Flickr user Memotions, licensed under Creative Commons, Attribution 2.0 Generic
Slide 38: Antipattern: Measuring supply, not demand • Number of bloggers, posts, wiki spaces, wiki authors are measures of supply • Not all UGC has business value • Not all UGC has business value proportional to its volume • Find which demand metrics can be associated to business value
Slide 39: ROI: The need for an “R” "If there is no 'R', your 'I' is a 'C'. And the cost is always too high." Source: Let's get real or let's not play" by Mahan Khalsa
Slide 40: What is the top barrier to the further success of your Web 2.0 initiatives? 28% “Do not understand potential financial returns” Based on survey responses by 1,988 executives from around the world Source: Building the Web 2.0 Enterprise - McKinsey Global Survey Results, July 2008
Slide 41: How does your organization measure the business value of its Web 2.0 deployments? 63% “We use traditional measures such as ROI, TCO & IRR” Base: 190 IT decision-makers at US firms with 500 or more employees invested in orpiloting Web 2.0 technology (multiple responses accepted) Source: IT Will Measure Web 2.0 Tools Like Any Other App, Forrester Research, July 25, 2007
Slide 42: The 9x Effect: Innovators vs Bean Counters EARLY ADOPTERS/INNOVATORS ARE USUALLY •Convinced the innovation works •Likely to see a need for the product •Dissatisfied with the existing substitute •Set on viewing the innovation as the benchmark BEAN COUNTERS ARE USUALLY •Skeptical about a new product’s performance •Unable to see the need for it •Satisfied with the existing product •Quick to see what they already own as the status quo 3x 3x Value x effort 9x Innovators outweigh the new product’s benefits by a factor of 3 Bean counters outweigh the incumbent product’s benefits by a factor of 3 Adapted from: Understanding the Psychology of New-Product Adoption, by John T. Gourville, Harvard Business Review, June 2006 (modified)
Slide 43: Identifying the right metrics 1. What is your business objective? 2. Is your metric stable? 3. Can a benchmark be established? 4. Do you have the levers to influence it? Iterative and Interactive! Adapted from: 1) Rethinking Measurement: More than evaluating performance (Interview with Dean Spitzer, IBM Research) Consultant’s Edge #146 by Peter Andrews, February 21, 2007 2) The Metrics Maze - Am I Lost?, by Srishti Gupta MediaPost’s Online Metrics Insider, Sep 5, 2008 Photo by Flickr user oskay, licensed under Creative Commons, Attribution 2.0 Generic
Slide 44: Returns need to be broadly defined • • • • • • • • Increased revenue Increased conversions Increased social capital Brand capital Future value of client loyalty/employee retention Proxy metrics: Marketing equivalent Side benefits: New ideas, digitization of knowledge Cost avoidance:  Time saved, travel costs, real estate costs, carbon footprint  Replacement cost: knowledge lost by turnover/retirement  Opportunity costs: what is the cost of status quo or doing Photo by Flickr user zieak, licensed under Creative Commons, Attribution 2.0 Generic NOTHING
Slide 45: We don’t need a Web 2.0 ROI Model... ...we rather need many of them! There is no perfect Web 2.0 ROI model, there are only perfect Web 2.0 ROI models. Source: ROI 2.0, Part 3: We don’t need a Social Media ROI model http://aaronkim.wordpress.com/2009/02/19/roi-20-part-3-we-dont-need-a-social-media-roi-model/
Slide 46: Thank You jennifer.okimoto@us.ibm.com @jenokimoto #e2conf29