Tag Archives: Enterprise communities

Can Web 2.0 Work for Enterprise 2.0?

By Madan Sheina, Ovum analyst

In spite of its roaring success on consumer IT desktops, considerable skepticism still remains about the value of Web 2.0 in business organizations. Can Web 2.0 technologies like wikis, blogs, and social networking really help to grow a business and make the leap to Enterprise 2.0?

It used to be the case that open source was a momentary distraction for CIOs and IT directors. Not any more. More companies are asking their IT leaders to apply open source to their corporate IT strategies. The same cannot be said of Web 2.0 technologies. However, Web 2.0 is expected to creep its way into the vernacular of business software over the coming years.

The success of consumer-led Web 2.0 technologies cannot be ignored. Facebook, MySpace, blogs, RSS, mash-ups, Ajax, and a myriad of other web-based technologies all now rally under the Web 2.0 banner.

Some of these are now starting to show potential behind corporate firewalls to facilitate more effective forms of collaboration (beyond standard email) and provide a richer, more interactive information experience for business IT users, including the two-way use of the Web that allows users not only to access information but also to express their own knowledge.

Enterprise software vendors are also starting to bake 2.0 capabilities into their applications. For example, SAP uses wikis and blogs extensively on its SDN, and Oracle has built social networking into a broad-release CRM offering.

While many Web 2.0 technologies are now deployed for enterprise use, they are still a long way from being mature or universal. The trick is to figure out how to take Web 2.0 ideas and use them in a business environment to interact better with employees, customers, and suppliers. It is not a direct translation. IT users have distinct needs from consumers, and organizations will have to carefully target, evaluate, and refine their initial Web 2.0 deployments.

In particular, companies should consider Web 2.0 not in terms of technology but as an enhanced web information experience for solving business problems. For example, instead of looking at blog-style publishing, wiki-style editing, and social networking as just tools, enterprises should frame their use in business scenarios or goals, both within and outside the four walls of the enterprise as a way to better engage with their most profitable customers or build up a stronger corporate online brand.

Importantly, Web 2.0 is also about advancing information experiences for business users, helping them to make the most of the systems and data management investments that a company has already put in place. Web 2.0 helps to make IT systems user-friendly and accessible. It allows for communities of interest to be built from crowds of business users looking at certain slices of corporate information.

Finally, Web 2.0 information experience also calls for a bi-directional link between users and information. One of the biggest benefits of Web 2.0 is the opportunity to use the activities and business domain expertise within businesses as they interact with information. Rather than being passive information consumers, users participate in its creation and organization through tagging, commentary, and ranking.

Adding Web 2.0 to an enterprise context also represents a democratic and social shift for a company’s IT strategy, moving control from the organization’s IT department to individual users. But traditional views of enterprise IT are still relatively conservative. Few companies are prepared to look outside the box at unproven Web 2.0 models, especially in tight economic times.

As with any new and evolving technology, implementing Web 2.0 tools is a risk. The risk is more pronounced given the unclear return on investment from their use, which is ultimately measured in how effectively people collaborate, as opposed to business optimization or revenue-generating ideas.

Only when companies start to understand the information-democratizing benefits of these tools, the specific business case scenarios for uses of the applications, and the effort and cost of implementing them, will there be widescale adoption.

Related research

Beyond Web 2.0: what’s in store

Enterprise Customer Communities: Hot Topics for 2009

Today we have a guest post from Community 2.0 speaker Joe Cothrel. He is Chief Community Officer at Lithium Technologies, which powers some of the largest enterprise communities on the web. He’ll be speaking at Community 2.0 on five key trends in customer communities. Today he shares some of his insights with us.

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What lies ahead for enterprise customer communities in 2009? I’ve spent the last eight weeks talking to our customers about their plans for the new year, and here are the common themes:

Return: The economic downtown didn’t create the need for return on investment from communities, but it has certainly made the need more urgent. Few companies are abandoning their hard-to-ROI efforts, but every company I spoke to talked about the need to quantify what can be quantified ‘ and to justify any new spend with projected cost savings or revenue increases.

Success: The days of a ‘success neutral’ approach to social media or community will end this year. Companies are asking for ways to measure success ‘ not just in dollars, but in the breadth and depth of impact to their customer base. What that means is that engaging a hundred or a thousand people out of a customer base of thousands or millions won’t be enough. Good benchmarks will be important to this effort.

Integration: Today, social media efforts are often siloed in different locations on company websites. Customers are asked to register once to comment on a blog, again to submit an idea, and again to participate on a forum. Needless to say, these databases are rarely integrated with a customer database that contains transaction data, or prospect databases that track leads. Single sign-on (SSO) efforts abound ‘ those that don’t have them will get them this year.

Flexibility: Companies want more control over how the social media efforts on their web sites are presented to customers. More companies are talking about using APIs to create an experience for users that is distinctive and more ‘Web 2.0.’ Yet there is little awareness of the impact these changes will have on participation, conversion, and customer satisfaction. Look for companies who don’t get good guidance to ‘take some lumps’ in 2009 in this area (not our customers, of course!).

Enthusiasm: In 2008, more than 70% of our customers had community efforts that were two years old or less ‘ which is probably representative of enterprise communities in general. But the number of companies entering the ‘mature’ phase of their community efforts grows every year. These communities have a different set of problems and opportunities than young communities. Flattening growth curves make it harder to assess community health, so new ways of measuring them are needed. On the opportunity side, internal stakeholders are looking at mature communities and asking ‘what’s next’? One big trend is taking well-functioning support forums and moving them up the curve toward greater enthusiasm and engagement. We’ll hear more about ‘superusers,’ ‘enthusiasts,’ and ‘Influencers’ this year as a result.

Every company has a host of other priorities this year, but those are the themes that unite them. I’m looking forward to sharing more on these topics in my presentation at Community 2.0 in May. See you then!