04 November, 2009

Pattern-Based Strategy: Enterprise 2.0 Got It Backwards

Tom Austin's presentation overview: the enterprise 2.0 as a technology is a brilliant concept but it's not easy to setup and to benefit from. External social software provides a better ROI. What has changed? Networks (vs. hierarchical organizations), the collective (informal groups of people talking about you, e.g. Twitter).

Web 2.0 is the "read-write web", social software. Enterprise 2.0 is taking the web 2.0 and bring it inside in the enterprise.


The network economy is: millions of businesses, billions of consumers, and devices, all interconnected. On the negative side, it brings a systemic risk, with panics, manias... with consequences such as uncontrolability, quick propagation of change...

Web 2.0 in the enterprise: r = f(n ^ m) (Austin's law)
r : internal hierarchical resistance
n : number of employees
m : number of hierarchy levels
Other factors to resistance: legal and regulatory, company history and culture. Thus it will not work "out of the box" (example of a telco who setup a blog platform and imposed a review and approval process...).

"Cultural change is hard and takes time"

Tom provides a "test" to identify your cultural model (horizontal or vertical organizations): open information access or "need-to-know basis", collaborative vs. hierarchical... The result is then mapped over web 0.0, web 1.0 and web 2.0. A vertical culture organization will FAIL on a web 2.0 approach, whereas a horizontal culture can find a major opportunity.

The collective is informal groups of people that you can't control and that impact your activity. It has existed for ever but it evolves over time, and the internet has just improved the speed, scope, selectivity and engagement.

Other changes going on: the technology (communication), the black swans (if you don't like something it does not mean it does not exist), death of organizational paternalism and age of innoncence (employer loyalty), self empowerment.

Looking at a map (on any subject), the "collective" is extremely complex (interdependencies) and nobody can control it.

The collective is not all powerful, it is also threatened: excessive expectations, regulation and control, people "gaming" system are the threats.

The classic marketing model (driving the customer to do what you want him to do) went to a CRM model (managing the relationship) and now to making each other successful.

The business impact: help to innovate, provide market intelligence, establish presence in new markets, support customers, encourage customers to share stories, address HR opportunities and problems...

Example: Best Buy wanted to hire an emerging media marketing and asked the community to write the job description.

First figure out what is the impact on your activity, what are the communities talking about you, who are the key influencers in these communities, what they say about you (more useful than trying to create a new community). Use a sentiment analysis tool.

External innovation: examples of Starbucks (seeking product ideas), Ideastorm (ideas exchange and promotion), Netflix Prize (algorithm improvement for movie recommendation), Doritos (outsourced video ads on YouTube), NineSigma (similar to Innocentive, to post RFPs).

Presence, positioning, promotion: WalMart's failure trying to create a community ("The Hub"), the contest for world's best job, Ford Fiesta YouTube campaign in the US (asked people why they should get a free car for a few months, on video).

External communities: a complete slide provides keys to ensure success, with key actions (focus on people, seek existing communities... over a few key dimenstions (ownership, authenticity, relevancy, value...).

Sourcing: example of Threadless.com (submit a T-shirt design, the public votes and the company produces it).

Support: example of Ikeafans (not affiliated to Ikea).

Assumptions: this is not just data collection, it is not just marketing and PR, it is a messy process, get used to it, you'll get burned if you are not authentic...

Action plan
Step 1: sentiment analysis.
Step 2: pursue small targets.

Additional material

Pattern Seeking is the 5th era of IT business value added (the collective being 4th, and it is a component of pattern based strategies).

I did not find much "Pattern Based Strategy" in the presentation but it was quite interesting nonetheless...

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