This Year’s Ten Digital Strategies for the Next-Generation Enterprise

It’s time for most organizations today to uplevel their technology stance: They must become profoundly proactive about external change and innovation. That’s because technology change is currently happening much faster than most organizations can readily absorb, at least how they’re doing it today. But that doesn’t mean they shouldn’t try. More importantly, they should begin putting in place the processes and structural changes required to begin adapting and co-evolving more quickly.

Technology is an enormous amplifier of human effort. However, because it also uses itself as a ladder, it changes more and more quickly as time goes by. Add in the fact that anyone, anywhere can now innovate on top of the current technology curve and distribute their efforts to the world at practically zero cost, and you have a near-perfect recipe for disruption of the traditional status quo for IT in the enterprise. So how can a central bureaucracy that is greatly outnumbered by its customers ever help bring in enough new technology to satisfy the increasingly voracious demand for apps, data, devices, and more?

In short, it’s much later than most IT departments think. Disruption is coming fast in a mobile, cloudy, social world.

Fortunately, there are indeed some ways that might work to address this headon as I’ve explored recently. But as organizations implement these strategies, they also need to bring in the fundamentals of the biggest and most important advances right now. Falling too far behind and becoming a technology laggard means significant and sustained loss of competitiveness that’s very difficult to recover from. With change happening so rapidly, and technology creating a widening gap between the top performers and the 2nd tier, it requires organizations to run a bit faster just to stand still while they make the changes needed to have a more sustainable future. What’s needed is a short list of specific high-impact changes that will also lay the groundwork for future growth and digital transformation.

In my professional opinion, the list below represents the absolute minimum that enterprises should be building skills in and piloting this year. However, most of these are really must-haves now, to have at least in the experimental phase in your organization today. I also realize, from working with hundreds of companies in the last few years, that you’ll typically have less than half of these represented in your organization today. But that’s the point of the list, to find the gaps in your next-generation IT arsenal. I’ve omitted obvious items like BYOD and Big Data platforms like Hadoop, since virtually all organizations have these on their lists already. Note that this is a more tactical viewpoint that what I usually provide. For example, I pick out key planks of new approaches, such as Social CRM and employee social networks, instead of the entire view of social business. Organizations need clarity on where to start to become a next-gen survivor, and this breakdown will help I believe.

Visualizing Next-Generation Enterprises: Social Business, Consumerization, Gamification, Employee Social Networks, Unified Communication, Open APIs, Cloud Computing, mobile CRM, Smart Mobility, Social CRM

First though, what’s a next generation enterprise? My definition is this from my recent breakdown of emerging enterprise IT for 2012:

A next-generation enterprise describes organizations that are proactively moving into the present by changing how they assimilate, architect, apply, and maintain their technology solutions in the context of updating and transforming their processes, structure, and business models to effectively align with and work natively in today’s networked and highly digital economy. While that may be a mouthful, it also accurately describes what most organizations must do to ultimately avoid disruption in the marketplace as technology increasingly defines how our businesses engage with and provide value to the world.

How do organizations start moving into today’s technology present? Below are the top ten digital strategies I believe more enterprises are behind in and need to begin addressing this year:

  1. Mobile customer self-service. This is an official company mobile app that lets your customers engage in (at least) the top ten most frequent customer service activities. The best of these won’t copy the features from your web site but enable new models of customer interaction made possible by mobile device capabilities. Example: The financial services firm USAA turned every one of their customer’s smart mobile device into a mobile bank branch, allowing customers to deposit checks by taking a picture of them inside their app and transmitting it, saving them a trip to the bank.
  2. Open supply chains/APIs. If you aren’t strategically opening up your business for the world to build break-out new products and services on top of, then you should start and start this year. Organizations like the World Bank, Best Buy, and many others are doing what the Internet giants are doing: Building ecosystems. You must too. Get a sense of where the fast moving world of the Internet is heading with this from an overview of my good friend John Musser’s talk at Glue last week.
  3. Employee social network. There are many genuinely potent ways to apply social media to significantly improve outcomes across any organization — see the detailed case studies in Social Business By Design (Wiley, 2012) for game-changing examples — but it’s now clear that every company is getting its own social network. While some will not be strategic to the business or have low levels of use, the data increasingly shows that most organizations get value from them. We already see that organizations are finding social networks proliferating with Chatter, Yammer, Socialcast, SharePoint, and many others. Enterprises much take charge, provide clear leadership, and anoint official social network(s) as appropriate. Bonus points for understanding where ROI in social business comes from and focusing on it with this effort.
  4. Gamified business processes. Perhaps the least important sounding of all of these next-gen enterprise trends, yet I’ve been surprised at how fast some Fortune 500 companies have adopted this. I spoke with the CEO of Badgeville recently and he indicated that nearly 150 of the Fortune 500 were using their gamification platforms. I recently wrote a detailed breakdown of the enterprise gamification space as well that explores some truly impressive results.
  5. Community-based customer care. Organizations like SAP, Intuit, American Express, and others have all demonstrated that customers can support other customers (in general) far better than a company can. Companies have limited resources, customer care is considered overhead, and other customers with similar backgrounds and needs already have better insight they can share. While Social CRM is the official buzzword for this approach and is the industry where you can find the most applicable technology support, you really only need some community software, a simple strategy, and some community managers. Don’t wait, start now. This is where some of the easiest and quickest returns are on this list.
  6. Unified communication. After years of languishing and with market penetration hovering around 30%, unified communication is set to explode this year to help address the channel proliferation problem today. UC is also incorporating social media and otherwise moving beyond the telephony and IM space to become much more strategic. While I’ll be exploring the intersection of UC and social business soon, the latest data from IDG shows that 90% of organizations are looking at unified communications in 2012, a huge leap from last year and one that should be on everyone’s next-gen roadmap.
  7. End-user led IT and competitive #CoIT. Users are going to help lead the technology adoption for next-generation enterprises. Collectively, they have the resources and bandwidth to explore, evaluate, and apply new forms of IT. These include SaaS, disposable apps, mobile devices, and much more to their local technology problems. IT departments will become the curators and enablers, collecting and disseminating best practices across the edges of organizations. As part of this, IT organizations will deliberating put themselves in a competitive position with outside suppliers and 3rd parties. They’re already facing stiff competition from app stores and outsourcing firms, and now they must demonstrate they can effectively compete. You can read up on the CoIT model in my explorations on the topic over the last year.
  8. Mobile IT reinvention. You must be mobile-first for most of your future IT deployment. Mobile is also going to require rethinking IT. Most organizations already know this now, so I don’t need to belabor this point, other than simple translations of legacy IT to tablets will be woefully insufficient and will drive users to 3rd party apps. Read two great cautionary stories about this from Gartner’s Andrea Di Mao.
  9. Migration to the cloud I currently see less focus on moving to the cloud these days. Part of this is because it’s just happening and being baked into many of the services we now use in the enterprise. But I also see a lack of understanding of how strategic the cloud can be. Start moving the edge of IT into the cloud to reap the benefits that go far beyond cost containment and into business agility and innovation. The cloud really does enable entirely new solutions to old problems.
  10. Digital business leadership and transformation. Start laying the groundwork to drive the business when it comes to moving to digital business models, where the future of most companies lies. CIOs and other IT leaders should be moving away from an infrastructure focus and to a business innovation focus as quickly as possible. While this is far easier to say than do, the very future of IT is at stake as CFOs increasingly focus on moving infrastructure out to the cloud. The future of IT is digital leadership, and less in technical plumbing, even though that will remain vital at a strategic level.


What’s on your list of the top digital strategies for organizations this year? Please add your thoughts in comments below.

See Also:

Connecting Digital Strategy with Social Business and Next-Gen Mobility

Reconciling the enterprise IT portfolio with social media

Social Business in Australia in 2012

While traveling around the world recently to discuss social business in Asia and Eastern Europe, I’ve been reminded by the sheer speed at which social networks are changing how we communicate. Most of the Western world has been on social networks for a while but now the rest isn’t far behind.

However it’s people like you and me, sometimes referred to as consumers by the business world, that have been leading this particular technology and societal revolution. Consequently, it’s been taking longer for those in the enterprise to sort out how the “Corporate Spring” will affect them. I’ve written about the concerns over ROI as organizations try to figure out their appropriate level of investment in social media, internally on intranets and externally for social marketing, customer care, and product development.

Australia has been interesting case in particular, and one in which I was fortunate enough to visit for the first time last year when I spoke at Social Business Summit 2011 Sydney. Australia has been listed most recently — along with other highly developed countries such as the U.S., the U.K., France, and Germany — as “social mainstream and mature” by the Boston Consulting Group. 90% of Australians use social networks, ahead of other advanced countries, such as Canada. Facebook usage exceeds 50% of those using social networks.

Aspects of a Social Business: Social Marketing, Social CRM, Enteprise 2.0, Social Intranet, Crowdsourcing

As in other countries, Australian businesses are now catching up now that their customers and workers have change their communication habits and behaviors. The same report I cite above says that 77% of organizations in Australia expect to increase investment in this social media over the next 12 months. But the fundamental question is, given the many directions that social media can take, how best to architect social media into the way a business works? How can social business best be situated in the way that organizations work to derive value that really moves the needle?

To help answer that, I’m pleased to report that I’ll be kicking off the book tour for our new book, Social Business By Design, in Australia with a series of appearances in Sydney later this month, from May 14th-18th. In addition to speaking at Intranets2012, I’ll be giving two workshops that are being exclusively sponsored by Headshift Australia. Details are below as well as here.

I genuinely hope to see you if you’re in Sydney or surroundings so that we can continue the discussion and explore of the future of how organizations will operate and create value for themselves, their customers, and shareholders.

Sydney Workshop Details – May, 2012

Social Business 101

The social media era has arrived and organisations are looking for ways to grapple with the many implications to their business. Companies are increasingly seeing the benefit and need to approach social media activities with integrated external and internal efforts. Professionals can no longer rely on point solutions and isolated activities — no brand, department, or employee is an island in the social landscape. Today, firms can learn from the lessons of early adopters and craft a solid plan for success that includes formulating a winning strategy, applying appropriate game-time tactics, and measuring for meaningful return on investment.
This session provides a cohesive and readily approachable introduction to social business that is immediately actionable by executives, line managers, and workers.

Participants at this session will learn:

  • What social business is and why it matters
  • The key tenets to social business success
  • Strategy and tactics to apply your own situation

When: 9am-12pm, Thursday 17th May, 2012
Who should attend: This workshop will be relevant to people working in different management roles, including sales & marketing, customer service, HR and operations.
Where: Headshift Asia Pacific, East Sydney.
Cost: $275 (excl. GST) per person (includes a signed copy of the book).
Tea, coffee and light refreshments will be provided.

To book this workshop, please use our online registration and payment page here. Please note, that places are strictly limited.

Consumerisation of IT

Employees have begun driving the use of consumer technology in the workplace—bringing their mobile devices, Web apps, and social networking experience with them from home—but the trend goes even deeper than that. It’s a fundamental shift away from IT creating and managing the organisation’s IT assets to accepting that employees now own significant swaths of technology and will lead the enterprise march into the future. Dion has watched organisations large and small struggle with this convergence of mobile, social, cloud and big data, and has helped them prevail in their quest to harness it for innovation to transform the way the enterprise does business.

Dion will explore the new IT landscape and share his consumerisation experiences in the field to set the stage for consumerisation in your organisation by showcasing real-world companies that represent the new generation of IT and business. Participants will be equipped with strategies that will enable them to take steps towards managing the trends and keeping ahead of current trends.

When: 2pm-5pm, Thursday 17th May, 2012
Who should attend: This workshop will be relevant to people working in different management roles, including sales & marketing, IT, customer service, HR and operations.
Where: Headshift Asia Pacifc, East Sydney
Cost: $275 (excl. GST) per person (includes a signed copy of the book).
Tea, coffee and light refreshments will be provided.

To book this workshop, please use our online registration and payment page here. Please note, that places are strictly limited.

10 Leading Books on Social Business

During the research for our forthcoming book, Social Business By Design, I ended up taking a close look at a number of other excellent titles on the subject. In the end, I came away concluding there was more than ample room in the market for another entry, but that’s a story I’ll tell when the book goes into the print in the next couple of weeks. Suffice to say I encountered some terrific thinking, quite useful framing, and plenty of fresh ideas — as well as good company in the form of many of the thought leaders that helped define the social business industry. For an industry it certainly is, with all the requisite ingredients.

In fact, the business landscape is now rife with organizations of all sizes who are attempting to grapple with the rapidly changing business conditions brought on by the global growth of social media, particularly its rising domination as a form of communication. There is also a large and vibrant ecosystem of vendors that supply products and services to help said customers, and analysts and thought leaders that observe the interplay between the two — with the rest of the world for that matter — and try to figure out where it’s all going.

The good news, since we’re near the end of the beginning of the social business journey, is that there is a lot of information that can be drawn upon now, particularly some excellent books on the subject, which I’ll list in a moment. However, one question that has come up often about books on social business is whether the format is appropriate for a way of living and working that is essentially based on open participation. In fact, that’s the core tenet of social business: Anyone can participate. While I’ll save a longer answer for my formal announcement of Social Business By Design when it hits the shelves by the end of April, let’s just say that books are still a widely used communication and learning channel, and one that has a large global ecosystem that remains well established and highly valuable. In other words, books (paper or digital) are still an effective way to reach people and quite acceptable as long as its starts a meaningful conversation amongst their audience that continues onward, which Peter Kim and I hope it will.

But if you’re reading this, you probably just want to know what the leading social business books are and I’ll get to that now. Please keep in mind that this is not a definitive list and I’m aware of several other excellent books making their way to the market. I’ll update this list if appropriate. So, in no particular order, here are the leading books on social business in my opinion…

The Leading Books on Social Business

  1. Smart Business, Social Business by Michael Brito. In his book, Michael clearly conveys why it takes more than social marketing to succeed in today’s deeply connected business world. I particularly liked how he explained what’s often the toughest part: That social business transformation requires a genuine cultural shift in how companies do business and in the way they interact with customers and prospects. Readers are given a detailed tour of the people, process, and technology shifts needed to succeed with plenty of details. The book explores social strategy, governance, tools, and metrics with a healthy dose of real-world case studies.
  2. Socialnomics by Erik Qualman. Views on this book vary widely, yet it’s clearly one of the most popular books on social business, albeit primarily of a marketing and customer engagement bent. Erik explores the impact of social media on business to uncover how businesses can take drive better outcomes in new and innovative ways. His best material is about the changes that must happen to achieve results, specifically the transformation of businesses produce, market, and sell products. Much of the focus of the book is on the different methods businesses must use to connect directly with their customers through today’s global social media platforms.
  3. Engage by Brian Solis. Brian has written a number of books on topics related to social business but this one is the most focused on the specific process of social media enablement and transformation. The book lays out how to develop an online ecosystem for the business and cultivates customers’ loyalty and trust in order to engage them for better business outcomes. Other useful details include how to establish an organizational structure that effectively delivers on social media while being poised for the next-generation just around the corner, including “detailed and specific steps required for conceptualizing, implementing, managing, and measuring a social media program.”
  4. The Mesh by Lisa Gansky. While not directly about social business per se, this book articulates a crucial endpoint for processes that are highly open and where everyone can participate (yes, social business.) In Lisa’s view — and I agree — business today is now about enabling entirely new operating models and ways of creating business value that are highly cooperative and self-organizing. Lisa’s book is vital for understanding the bigger picture for which social business is a key plank. Highly recommended for getting business leaders to think outside the box and get ready for culture and organizational change (and innovation.)
  5. Empowered by Josh Bernoff and Ted Schadler. A follow up for Bernoff of the highly influential Groundswell, Empowered is a detailed look at how employees with great ideas in an organization can be enabled to innovate and transform a business to better serve its customers. In their view, powered by pervasive social technologies, customer service (aka Social CRM) has definitively become the new source of marketing. Empowered lays out a detailed process for getting there with managers eponymously empowering employee innovators (described as HEROs in the book) and IT/business stakeholders to better serve customers directly to generate a wide variety of interesting results, from word-of-mouth marketing to better product ideas. Bernoff’s and Schadler’s analyst roots pay off with many case studies and pragmatic examples that demonstrate how social business empowerment is already happening in scale.
  6. Macrowikinomics by Don Tapscott and Anthony D. Williams. The successor to Don’s hugely successful Wikinomics, this book takes the social business conversation up to a whole new level. While some have pointed out that actionable specifics are largely not included in the book, that’s beside the point: The goal of the book is to present a compelling case for the way we’ll organize our businesses, governments, and society now and in the future. A powerful book for those that want the entire big picture of social business (here called mass collaboration) and how it can solve problems that have been intractable or merely just very hard. While not a practitioners book, I advise everyone to be familiar with the strategic conversation Macrowikinomics lays out to get a clear view of the all moving parts that everyone must support.
  7. Cognitive Surplus by Clay Shirky. Coined from a concept that Clay frequently discusses, namely that we’re just now learning how to tap into the full productive and creative capacity of our collective cultures and communities, this book lays out the whys and hows of using participation to create compelling and unique business outcomes. Subtitled “How Technology Makes Consumers into Collaborators“, this book the means, motivations, opportunities, cultural issues, and supporting examples into a coherent story about how emergent business solutions powered by social media will change business forever.
  8. The Social Organization by Bradley and McDonald. Authored by two of Gartner’s leading analysts, this book makes a very strong case for employing social technology in the enterprise to get work done better. Sharing insights from their research into the successes and failures of four hundred plus organizations that have employed social technologies for workforce and customer-facing business solutions, the authors go well beyond technology and into the human element. Discussion includes how and why to build strategic communities, designing new ways of openly collaborating, and how to guide social business efforts to achieve a purpose, and so on. Bradley and McDonald also identify the core disciplines managers should master in order to transform social collaboration into otherwise unlikely yet highly potent results.
  9. Get Bold by Sandy Carter. One of the most interesting social business stories of the decade has been IBM’s not-so-gradual conversion to being a social business. While such transformation is generally quite hard to do for large companies, the global technology giant did it in record time. This book, by one of IBM’s top social business evangelists, clearly demonstrates that they truly “get” the changes happening and know how to get there. After making the case for what social business entails, Sandy lays out the steps to reach social business maturity and includes her AGENDA framework for achieving it.
  10. The Social Customer by Adam Metz. Metz treats Social CRM comprehensively considering it from many angles and aspects, from process to tools. He explores the 23 use cases that simultaneously provide the fabric for actionable, practical and approachable methods for engaging usefully with the social customer. Metz borrows from and builds on the excellent work of Greenberg’s CRM at the Speed of Light and Kim and Mauborgne’s Blue Ocean Strategy to create a picture consistent with a larger set of thought leadership.

Honorable mentions:

Please note, that while I tended to emphasize books that were highly approachable, all of these are worth the time and effort either for your own edification about social business or to help educate your business and technical leadership teams. Finally, while there is no doubt I may have left a few good titles out of this list, I’m happy to — and will — add any titles to this list that commentors are particularly passionate about. I hope you find this helpful and a useful resource for assembling the definitive literature on social business.

Related Reading:

The Social Enterprise: A Case For Disruptive Transformation

Baselining Social Business Maturity: Why and How

Converging on the Social Enterprise

The Path to Co-Creating a Social Business: The Early Adoption Phase

Enterprises and Ecosystems: Why Digital Natives Are Dethroning The Old Guard

Why is it that so many traditional companies with an enormous wealth of assets largely fail to transform them for the digital era? By assets here, I mean established customer base, closely held relationships with trading partners, mountains of data and IP, as well as their bread and butter, the actual products and services they offer. For large organizations, these assets typically represent many billions in long-term investment and accumulated value that is being stranded beneath a digital ceiling they cannot seemingly break through. The lesson has been a hard one: It’s been surprisingly difficult for many companies to make a genuine transformation to digital.

For those just joining this conversation, this transformation is about opening up and digitally enabling the strategic assets of our organizations for better consumption and participation, with as low a barrier as possible. It’s also means doing so in a way that continually maximizes their value over time in today’s deeply networked marketplace. Achieving this triggers the primary engine of growth for digital ecosystems, namely network effects. This is how Apple, Facebook, Google, Amazon (new guard), and Microsoft, IBM, SAP, Oracle, and many others (old guard) eventually built hundreds of billions in combined value. They tapped into the relevant power laws of networks by carefully and deliberating cultivating and then closely managing them by harnessing peer production over the network.

Digital Business: Cultivating and Managing Digital Ecosystems (Open APIs, Social Supply Chain, Web Services, SOA, Online Communities, Peer Production, OEMs)

How exactly was this accomplished? They did it by digitally platforming their businesses in specific ways: Enabling self-service on-boarding, viral adoption, open participation, best-of-breed data capture, ownership and control, and took advantage of the fact that relationships — and therefore, ultimately transactions — must take place on the network with as little friction and cost as possible. They realized that we are now all connected together continuously in a single global network and then designed their organizations around this central fact of the digital age. They are now reaping the results of this mindset:

Networked ecosystems must be a core focus and competency of modern business.

This begs the increasingly urgent question: Why then are a large number of older organizations neglecting their digital ecosystems, often failing to meaningfully cultivate them at all for many of their most valuable assets?

This is a key question that fellow Enterprise Irregular Vinnie Mirchandani recently asked in an internal EI mail thread and later posed on his blog:

But for every Apple which has gone one way, I see so many others piss away this huge asset that is their ecosystem. I hear about musicians and filmmakers auditing, even suing studios for accounting disagreements. I hear SAP mentors complain about legal issues getting licenses and other access to new technology. It’s easy to dismiss Joe Konrath’s litany of complaints against book publishers as one from an unhappy author, but the 230+ comments it has drawn shows a deeper angst about how poorly publishers are managing their author ecosystems.

Ecosystems, communities – call them what you want. They are a vibrant organism which deserve far more ink from all of us. And they need professional managers at the companies at the middle who nourish them and not just treat them as railcars to be hustled away whenever inconvenient.

As companies remain inadequately connected to their customers, partners, and workers via digital ecosystems, many of which they do not control, they are missing a rapidly narrowing opportunity. That’s because it’s very, very hard to disrupt a well-established network effect, which is much more powerful than the equivalent notion in the pre-digital era: traditional market share. Network effects are primary focused on pull distribution, while marketshare is heavily based on push, which is much harder and much more expensive to sustain. As digital natives sew up more and more industries and lay down network effects years ahead of their traditional brethren, any chance to reclaim the throne will be very unlikely.

For leading examples of potent digital ecosystems, see open APIs, social customer care, and app stores.

Why is this? There are a number of reasons but a few are particularly significant. What I wrote in the EI thread in response to Vinnie’s original question was this:

I find that in general, the farther you are from the tech business, the less native skill or familiarity there is with system thinking, which is perhaps the critical capacity to have in order to regard your business in ecosystem terms. This is something that in tech is standard fare with constant discussion and focus on platforms, network effects, SDKs, open APIs, app stores, etc.

Traditional publishers are typical of the technically challenged industries that are being blind-sided by newer, much savvier, techno-centric, network-oriented new digital businesses.

Business leaders that can’t deeply see the way forward for their organizations as flexible, highly dynamic, and organic digital networks of customers, partners, workers, and other (likely and unlikely) participants will ultimately fail. But this isn’t the set of skills or mindset that made them successful in the first place, so they don’t value it and don’t think in these terms. They literally throw off digital rethinking like a sort of corporate immune system. Surprisingly, from my talks in the C-suite the last few years, everyone individually seems realizes they have to change, but collectively they are resistant, it’s fascinating to watch.

A big part of the problem boils down to this: Companies are inherently designed to perpetuate the problem they were invented to solve. It’s a particularly thorny instance of the Innovator’s Dilemma, which ensures that a company is unlikely to aggressively re-invent itself until it’s in the process of being disrupted. Unfortunately, this often means it’s already too late.

In fact, it may be too late for a growing number of industries to fully make the transition to being ecosystem-centric. This includes media, publishing, telecom, retail, and many software companies. Under looming threat is real estate, higher education, financial services, professional services, accounting, and even venture capital. In each of these categories, ecosystem-centric firms are building network effects with open network-based products increasingly built by worker/open communities and delivered to customer communities. Those products are in turn built upon by hundreds or thousands of loyal 3rd party partners to bring their own customers and ecosystems to the table. This is an embarrassment of riches that only a few companies, again mostly digital natives, seem interested or able to tap into.

As Fred Wilson once said, the Web (and therefore digital business) is all about “building networks on top of networks“, which leads to even more powerful outcomes, like 2nd order network effects.

Fortunately, the force multiplier of the ecosystem model can be stated in a simple, fundamental way: It allows one to tap into the vast size and strength of the external network to drive growth, innovation, and revenue for your own ecosystem. As Peter Kim and I wrote in our new book, the fundamental principle of business in the ecosystem era must be to let anyone participate in every aspect of the business, primarily by inverting the facilitation process of driving shared value (i.e. network effects by default.) Being able to elicit the network (Internet, community, shared data, whatever) to maximum effect to fuel and growth your ecosystem is thus the core competency of the digital era. Unfortunately, this lesson is being lost to most organizations that were built well before this next-generation business model was understood. It will be a great loss that doesn’t necessarily have to happen in my opinion, but will ultimately result in the needless disruption of a large number of companies that just aren’t able to become digital natives.

For additional reading see:

4 Ways to Create Sustainable Business Ecosystems

Why Information Power Is The Future of Business

What Will Power Next-Generation Businesses?

A View of Digital Strategy in the Ecosystem Era

Are We Building Businesses Or Are We Building Platforms? Yes.

How Digital Business Will Evolve in 2012: 6 Big Ideas

How Are CIOs Looking at Today’s Disruptive Tech Trends?

Last October I was invited as a guest to participate in the Tuck School of Business 10th anniversary session of their Roundtable on Digital Strategies. This diverse group of senior IT leaders is comprised primarily of CIOs of some of the world’s largest enterprises. The roundtable members came together to discuss what was termed the present “mega trends” in technology, including the effect they are having in how their businesses currently operate and evolve. It was an eye-opening experience, not the least because of the transformative changes that were evidently taking place in the companies represented.

One fact stood out: Many of these tech trends are happening with or without waiting for information technology departments to embrace them and bring them into the organization in an orderly and controlled way.  I’ve spoken about shadow IT for a few years and it’s clear, particularly with mobility, that loss of control is firmly entrenched in a growing number of large IT organizations.

The mega trends that we discussed that day were the usual suspects. They are the ones that I’ve been exploring in detail recently: Next-gen mobility, cloud computing, social media, consumerization (#CoIT), and big data. In attendance were the CIOs from American Express, Bechtel, Chevron, Eastman Chemical, Eaton Corporation, the Hilti Group, Holcim, Nestle, Sysco, and Time Warner Cable, as well as executives from CompuWare, the Dachis Group (myself), Dell|KACE, and ViON. The Roundtable itself was hosted by the Directors of the Center for Digital Strategies at the Tuck School of Business. The session was moderated by Maryfran Johnson, Editor-in-Chief of CIO Magazine and hosted by Adjunct Professor Hans Brechbuhl, who also wrote his own summary of the day.

Disruptive Megatrends in Technology: Smart Mobile, Social Media (Social Business), Consumerization, Cloud, Big Data

The discussion itself was far ranging and explored all of these megatrends in detail. The resulting outcome, a new 17 page report that has just been issued by the Center for Digital Strategies at the Tuck School of Business, confirmed that companies fall across the spectrum when it comes to adoption of these disruptive technologies. While virtually all the companies represented were feeling the full brunt of smart mobility, others had widely varying experiences with areas such as enterprise social media (aka social business in this context), big data, and cloud, though the first two had the most votes I believe in terms of the trends with the longest term and farthest-reaching impact.

Six key insights about new disruptive tech were derived during the back-and-forth discussions that took place at the roundtable session. These are:

  • “Consumerization of IT” is a core catalyst for other IT mega-trends. The spread of social media and BYOD are clear outcomes, but “consumer” expectations play a surprisingly large role in the development of Big Data and cloud-based applications.
  • Mobility is forcing new approaches to data security. User expectations of anytime/anywhere access to enterprise data conflict directly with IT’s charter to secure and protect the same data; this conflict is one of the sources of the rise of rogue IT.
  • Both mobile and social applications are (finally) adding definable value to enterprises. Social media apps with definable ROI are primarily customer-facing; high-value mobile apps are still mostly internal.
  • Big Data” will affect every aspect of business. From plant operations to stock trading to predicting terrorist behavior, the combination of huge data volumes and massive compute power is beginning to answer questions never even asked before, particularly with respect to predictive analytics.
  • “Designing for loss of control” is one of IT’s key challenges. Between consumerization/BYOD, rogue IT and the cloud, centralized IT can’t keep up with demands yet will still be held accountable for security, reliability and performance.
  • IT’s future differentiation is far more about insight than about operations. With technology so widespread, the ability to compete on IT operations has vanished. IT’s future value lies in delivering immediate, actionable knowledge.

What companies are going to do in order to embrace these trends effectively is going to be the signature generational challenge of our era. I’ve explored the various possibilities (ten strategies to be exact), and no doubt others will discover other routes to success. But the fact that so much of the change is externally imposed on IT departments and the lines of business outside of traditional channels is what makes the transition to them so disruptive. Thus, consumerization may ultimately be the underlying root cause of the rest of the trends as well as the primary driver of enterprise technology for the foreseeable future.

Tuck School of Business CIO Roundtable in October 2011

Tuck School of Business CIO Roundtable in October 2011

Be sure to read the IT megatrends report itself for full details directly from the original sources.  In the meantime, I’ll keep exploring these trends and how companies are planning, coping, and hopefully enabling them for their internal and external customers as IT gears up to have its most exciting decade in a very long time.

Related Reading:

Consumerization in 2012: Cloud and mobile blurs into other people’s IT | ZDNet

The “Big Five” IT trends of the next half decade: Mobile, social, cloud, consumerization, and big data | ZDNet

CoIT: How an accidental future is becoming reality | ZDNet

Dion’s Defrag 2011 Keynote on CoIT | On Web Strategy

What’s Coming Up in Social Business, CoIT, Open APIs, and More

While 2011 was a busy year, I’m expecting 2012 to be a breakout year for a number of key subject areas that I work with closely. The run up of social business over the last five years has been phenomenal but there’s a general sense now that it’s about to go truly mainstream. That’s not to say it hasn’t already happened nearly everywhere already, except for a significant part of the business word. This now appears to be changing as the latest adoption data shows that with few people left on the consumer side, the growth of enterprise social media is about to start closing the steady gap that it’s held behind the world of social media over the years.

Perhaps more than anything else these days I’m getting this increasingly urgent question at an senior executive level: What specifically are the business benefits of social media? While I’ve covered that in detail many times, this new-found interest on exact outcomes shows that the business leaders are increasingly feeling compelled to wrap their mind around the inevitable changes facing their organization. To help with this I’ve recently distilled it into the chart you see below, based on the McKinsey data they collect every year from large organizations. These double digits performance improvements then, embody the social business imperative:

The Business Gains Possible with Social Media (Social Business, Enterprise 2.0, Social CRM, Social Media Marketing, etc.)

Then there is the whole consumerization story that’s unfolding at the moment. This has been a seismic event for many organizations as smart mobile devices, enterprise app stores, and software-as-a-service from the Web all combine to make adoption of the latest apps and IT solutions is just a mouse click or tap on a touch screen. At the same time, there is a growing sense that the classic line dividing IT and business is blurring, just like there is so much blur in many key business boundaries today. The lesson: Everyone can and should be be involved with making these changes happen constructively and effectively for their organization, whether it’s social media, information technology adoption, transformation to new digital business models, etc. Many of you know tat I’ve started to call this confluence of IT trends “CoIT” and it’s something I’ll be researching and speaking about extensively this year because I believe IT is about to change — no, is changing — in a substantial and irreversible way. The changes themselves are largely good but it will certainly leave some ‘creative destruction’ behind, to use the popular euphemism for what happens when innovation cuts through an organization in an unplanned way.

Now that the basic platforms for social business have matured to the point that they’re ready for most organizations — and by this I mean both internally and externally for most common business functions like operations, CRM, marketing, product development, etc. — we’re moving into more sophisticated and higher-order capabilities. Capabilities like social business intelligence, enabled by the rise of both older and radically advanced new technologies now known as Big Data, are making it possible for us to actually make sense of the huge knowledge flows moving around us. I’ll also be closely following analytics, machine learning, natural language processing, metrics, and much more, both in terms of technologies as well as how to best embody them in operational business processes.

2012 is also shaping up to be the year of open supply chains, or as people on the Web call them, open APIs. The number of products and services that are now open to be remixed into other companies’ offerings has exploded in the last year. See this terrific visualization of API growth on ProgrammableWeb to get a sense that something big is indeed happening here. I’m now seeing sustained interest beyond the Internet community by traditional companies that are starting to see how much value they missed by looking at their businesses through like silos, disconnected from the digital rivers of commerce, ideas, engagement, and so on. Open APIs are now officially on the radar of big company CIOs. They are seeing how it will be a significant competitive advantage to offer a compelling API in an industry that does not have strong uptake yet. 2013/14 will start looking bleak for those firms that don’t yet have them, or at least have developed competency in both the technology and business models. In the meantime, the tools, techniques, and business models for making APIs work for a wide range of industry has greatly evolved and will be important to watch.

There’s plenty more I’ll be tracking this year; there’s really no shortage of topics that will be vital for all of us to watch including augmented reality, new mobile technologies like NFC, the rise of HTML5 and its coming battle with iOS and Android, gamification of just about everything, location-based social networking, enterprise OpenSocial, and much more.

2012 Speaking Calendar

In the meantime, my speaking calendar for 2012 has started to fill up quickly. While you can always read the latest on my blogs on ZDNet, ebizQ, the Dachis Group Collaboratory, here, and elsewhere, I’ll also be releasing a major new book on social business that I co-authored with Peter Kim that will be out from Wiley this May. I’ll be writing a detailed blog post about the book soon, but in the meantime, you can get the details here on Amazon. But for those of you that can make any of these conferences, I’ll be sharing my very latest findings at the following events:

  • 60 Minutes with Nir Zuk. January 31st. I’ll be having a live fireside-style chat with Palo Alto Networks founder and CTO, Nir Zuk in a Web-broadcasted discussion about how enterprises must make the right policy decisions, in context, to safely enable social media in their organization in order to attain the corresponding business benefits. It’s a free event.
  • Enterprise 2.0 SUMMIT, Paris. February 7th-8th This is one of the best enterprise social media events in Europe in my opinion. I’ll be speaking here again for the 3rd time, providing the closing keynote on the 2nd day on “Next-Generation Ecosystem and its key success factors”. I’ve arranged a discount code for my readers from conference organizer Bjoern Negelmann. Use code ‘dhinchcliffe10′ for 10% off the registration fee. I’ll be there both days for anyone that would like to meet up.
  • Enterprise 2.0 Virtual Conference. February 16th. I’ll be providing the opening keynote on social analytics at this virtual event. I’ll be bringing with me real case examples, an overview of the latest tools and techniques, and primer on how to get started. You will be able to sign up here soon.
  • CITE Conference & Expo 2012, San Francisco. March 4-6th. I’ll be providing the opening keynote on the topic of consumerization and CoIT, which is also the main topic of this conference. In addition, the day before, I’ll be providing a deep dive on how organizations can make it through the era of IT consumerization in much more detail in a half-day workshop. CITE is run by IDG and they are hoping to make this even one of the leading events on the topic.
  • AIIM Conference 2012, San Francisco. March 20-22nd. This major event being held by AIIM has an all-star cast including Clay Shirky, David Pogue, Ray Wang, and many others. I’ll be providing the closing keynote on the 2nd day on next-gen mobility and mobile/social convergence. Highly recommended.
  • Social Business Summit 2012, Austin, Shanghai, Rio, Berlin, London, Singapore, New York. March-September. This is our official social business conference series for the Dachis Group. It attracts the top thought leaders in the space and is in its 3rd year running. Previous speakers have included John Hagel, Charlene Li, JP Rangaswami, and Dave Gray. It’s invitation-only and most locations sell out quickly, so I’d request an invite now. I’ll be speaking at most of these to promote our new book. Also highly recommended.

That’s it for now, but plenty to mull over. This year we’ll see many of the changes we’ve been tracking that last few years actually happening in the enterprise a widespread way. I’ll be covering them in my blogs and on Twitter as much as possible. As always, I’m interested in hearing from anyone in the trenches making these changes happen in their organization. Happy social business!

Consumerization: Why the Workplace of Tomorrow Looks Like The Internet

The title of this post is almost right. The workplace of tomorrow will look like a lot of things actually, including the Internet; just not a whole lot like the way our organizations look today. For one, the workplace itself has steadily begun to disappear as teleworking becomes more and more prevalent, though the latest data shows this will take longer than other more imminent changes. These other disruptive forces, such as next-gen mobility, social networking, cloud computing, and big data, are so close at hand that most organizations are already extensively affected by them. It’s not a stretch to say they are eclipsing how IT is applied to business in many ways, even as IT shops are significantly underestimating their current impact, according to brand new research from Unisys.

Over the last couple of years, I’ve been following this set of closely interrelated trends, each one that began “out there” on the Internet or in the consumer world, and have little or no roots in the enterprise world. It’s this singular fact that induces in so many IT executives and business leaders a profound feeling of disquiet. Yet the ones I’ve spoken to this year realize that they have to respond to these changes. Why? Because technology innovation today is driven mostly by the Internet or the consumer world, yet technology is one of the leading ways we use to automate and drive productivity improvements in business. High technology — and particularly the fundamental architecture of the Internet — also has an innate tendency to dislocate the old ways of working. It tends to tear down the traditional — yet less effective — means of operation, along with their associated cultures, norms, and expectations. However, it’s fair to say that no one being held to a quarterly earnings cycle or holding a market leading position vulnerable to technology change (media, software, travel, education, etc.) likes to experience dislocation. So it’s up to organizations to get (much) better at realizing an effective digital strategy, just as innovation and change is happening much faster than any other time in human history.

Recently, the phenomenon of “CoIT” has been growing. It’s a new concept that says that the adoption of IT is now proceeding rapidly outside of the CIO budget, often in entirely unsanctioned initiatives by lines of business. In its more mature form, CoIT also stands for a much closer yet decentralized notion of IT where innovation and technology leadership is driven on the ground by the business, yet supported by IT. The business — as well as IT — brings in the latest new cloud services, mobile apps, APIs, data sources, and mobile devices. IT then makes it safe, secure, and manageable, or provides guidelines for doing so. It’s a smart, efficient, scalable new partnership. The former is the “Consumerization of IT” while the latter model is the “Cooperation of IT”. Both are represented by the moniker, CoIT, which was originally coined by Computerworld Editor-in-Chief Scot Finnie a little while back.

Clearly there’s widespread interest in the topic, as one of my most popular writings this year was the exploration of the “Big Five” IT trends of the next half decade, one of which is consumerization, for which it could be argued it’s actually an encompassing supertrend. All of this ultimately culminated in a gracious invitation by Eric Norlin to come and present my research at Defrag 2011, which I did last week.

Below is the deck itself, which I gave as a keynote last Thursday morning:

If you don’t have time to review the deck, the key points to take away are the following:

5 Strategic Points about CoIT

  • Evidence is growing that current productivity gains aren’t coming from traditional IT investments. They are coming from somewhere else, or the cost of IT is collapsing radically. Almost certainly both are true by comparing slides 3 and 4.
  • There is far too much new tech for any centralized process (like IT) to absorb. New types of processes must be created that can unleash and scale the application of powerful new technologies (next-gen mobile, social business, cloud computing, big data, etc.) to the business..
  • If the only real constant is change, change must be in our DNA. But these ‘genes’ are usually not present in large enough quantities in the enterprise. This is the concept of moving from fixed processes to dynamic relationships embodied by the Big Shift in order to transform the enterprise as we know it.
  • Some changes will be more transformative than others. While mobility is the hot topic right now, social business and big data will have the largest long-term impact and especially the former will have truly game-changing and transformative consequences.
  • Ten to hundreds of times more apps and data are coming soon, get ready for it. Cultivate the skills, create enterprise app stores, build social layers into the organization, define decentralized enterprise architectures (really, business architectures), and create a new CoIT playbook. Or this will all route around you. 30% of IT is already outside the purview of the CIO and growing fast.

I’ll be exploring this more soon with new data and examples. In the meantime, I’d love your thoughts on where you are seeing IT going in a rampantly mobile, social, big data world. In addition, here are 10 strategies for coping in the CoIT era.

Transforming the Enterprise As We Know It

As I was reading David F. Carr’s latest piece on The Brainyard today, it drove home again for me some of the practically insurmountable challenges that many organizations have in avoiding the growing forces of digital disruption. David’s piece talked about Don Tapscott‘s proposition that we have to fundamentally remake the way our organizations engage with the world and produce useful work. The very-near future of business consists of new methods that are effective in today’s world, not for the era they were created in:

“When most people think of Enterprise 2.0, they think of the use of collaborative tools,” Tapscott said. “I’m arguing that something much bigger is happening than the application collaborative tools within the enterprise–it’s a profound transformation of the enterprise as we know it.” Basic principles of organization that have been established over the last 100 years are being upended, leading to “huge changes in how we orchestrate capabilities to create goods and services,” Tapscott said.

Like Tapscott, I’ve long been a proponent, along with thought leaders like John Hagel, that there’s a deep and profound Big Shift taking place as we get deeper into the 21st century. To survive, we must think in deeply networked, decentralized terms now, not in the rapidly receding business concepts of an age bygone. This means platforms instead of products, ecosystems instead of businesses, peer production instead of central production, and networks instead of hierarchies, to name just a few of the more significant aspects of the shift.

Emergent Business Processes and Enterprise Transformation: CoIT and Social Business Implications of the Big Shift

But how can traditional organizations get there? Web companies have a hard enough time getting there themselves, as digital natives. Most of them certainly don’t become the next Amazon or Facebook, two companies that virtually embody much of the changes taking place. Instead, I see many traditional firms engaging in the cargo cult mentality, hoping that by adding window dressing like social media, a few APIs, and perhaps some user-generated content, that they too will suddenly have a healthy, sustainable future.

Well, it’s not going to happen that way. The changes required are deep and sometimes painful. In fact, the more I examine the issue, successful transformation to a new mode of existence that naturally avoids the disruption inherent in these shifts boils down to a surprisingly few number of key changes. But those changes, though not generally that complex in and of themselves, are almost impossible to drive deeply into many organizations by virtue of their existing structures and processes. As they say, culture eats strategy for lunch.

Many of you know that I’ve been exploring how to foster social business approaches in large organizations for a number of years. When I see successes, they seem to have much in common with what made things like social media so successful. Yes, that’s network effects but also, and more to the point, about enabling an environment where emergent change can actually take root and thrive. A network effect can’t take hold if everything about the traditional way a business operates is to lock everything down into fixed transactional processes. That just doesn’t work in a fast changing new era where the value is in sustaining dynamic relationships and not fixed transactions.

As JP Rangaswami recenty wrote, it’s now all about “The capacity to change. Designed as an integral function. Native.

How then can businesses “fundamentally remake” themselves? What critical changes are at the heart of moving from regular business to things like social business? I’ve been exploring the answers to that question recently in quite some detail, but I’d start with these three things:

  • Local autonomy. Effective, resilient response to business change can’t only be driven by top-down, hierachies. It’s far too slow, low in innovation, and far from problems on the ground. Restructure the organization so that change along the edge is not only possible, but well-resourced, common, and effective.
  • Freeform collaboration. Going beyond Enterprise 2.0 to reinventing the way business models scale and provide value. I’ve previously written about the orders of magnitude cost reductions that are possible and the things they enable, plus how to get there.
  • A culture of experimentation. Of the three, this is the hardest. The first two are different; it’s always possible to create a startup culture at the edge of organizations and it’s also possible to drive mass collaboration. We increasingly see it done all the time in large companies, though it takes time to really establish itself in a transformational way. But to get an organization to be fundamentally more accepting of innovation is very difficult to instill when it does not already exist. Some of it is a skill problem, but a lot of it is more systemic. Solving this is going to be one of the great generational challenges of the social business era.

There’s a lot to consider when undergoing the large-scale transformations that businesses must undertake today, but a focus on these core issue will go way towards getting started.

Are We Building Businesses? Or Are We Building Platforms? Yes.

A couple of days ago I saw a tweet go by from Michael Cote, referencing some work I did a few years back that tried to articulate the full notion of where Platform-as-a-Service (PaaS) was going. I had been exploring the subject as Google and Amazon had recently been busy expanding their offerings in the space.

I was struck by how well the early depiction held up, given the evolution of the industry since then, including the arrival of new innovative players at the time (Heroku and CloudFoundry) and the struggles of some of the originals (Bungee). I wouldn’t add or change much about the breakdown, other than to update it around the edges and add some examples:

The Moving Parts of Platform-as-a-Service Including Business-as-a-Service and Software-as-a-Service

But as I looked at this, it also occurred to me — as our focus much of the time in business these days is about strategies to deal effectively with the latest disruptive tech — that it’s up to us to have an abundantly clear vision of the big picture of what we’re actually aiming for as a whole. This is particularly true now since the choices we make today on how we build and evolve our businesses will either lead us to 1) break out of the box and thrive or 2) just make incremental improvements that are unlikely to propel us towards a sustainable and successful future.

Key to this discussion is this question: Are we building businesses? Or are we building platforms? Of course the answer to both is yes, but most of us still possess a very 20th century notion of what a business is.

We think of business in very solitary, disconnected terms, where partners can’t rapidly connect with us and integrate their supply chains, where we can’t even readily reuse and build upon what we have ourselves, and most of our data and systems are closed off from us and each other. Unfortunately, we now live in a new time and this is no longer an option. Those days are definitively over. Steve Yegge’s epic and widely discussed rant recently about how Google doesn’t get platforms (and how Amazon does), shows the new chess board that next-generation enterprises must be playing on:

That one last thing that Google doesn’t do well is Platforms. We don’t understand platforms. We don’t “get” platforms. Some of you do, but you are the minority. This has become painfully clear to me over the past six years. I was kind of hoping that competitive pressure from Microsoft and Amazon and more recently Facebook would make us wake up collectively and start doing universal services. Not in some sort of ad-hoc, half-assed way, but in more or less the same way Amazon did it: all at once, for real, no cheating, and treating it as our top priority from now on.

But no. No, it’s like our tenth or eleventh priority. Or fifteenth, I don’t know. It’s pretty low. There are a few teams who treat the idea very seriously, but most teams either don’t think about it all, ever, or only a small percentage of them think about it in a very small way.

It’s a big stretch even to get most teams to offer a stubby service to get programmatic access to their data and computations. Most of them think they’re building products. And a stubby service is a pretty pathetic service. Go back and look at that partial list of learnings from Amazon, and tell me which ones Stubby gives you out of the box. As far as I’m concerned, it’s none of them. Stubby’s great, but it’s like parts when you need a car.

A product is useless without a platform, or more precisely and accurately, a platform-less product will always be replaced by an equivalent platform-ized product.

It’s this last sentence that’s the clicher:

A platform beats a product every time.

In our deeply connected, social, mobile, cloudy, consumerized, and data-driven world, that’s what we must be creating, whether you’re a Fortune 500 company or an Internet startup. Only those with a clue about this will survive the 21st century for very long. Getting there requires real discipline, no cheating (read about Jeff Bezo’s mandate in Yegge’s post above), and minimal compromise. It must be a top organizational priority, especially if you’re a large organization and/or you control large, strategic data sets.

Unfortunately, outside of the Web community, most companies don’t understand how to platform their business, or the urgency. But do it they must if they expect to compete with the new wave of digital native enterprises that will otherwise eat their lunch. Otherwise expect to be run over by Amazon, Facebook, and Apple, and a new generation of platform companies that get it.

For a deeper discussion, please read the “Big Five” IT shifts today, and the 10 strategies I recommend to deal with them and for a detailed exploration of the specific technology and adoption challenges in particular. For specifics on how to platform your business, I recommend Running Your SOA Like a Web Startup and Open APIs Mature Into A Next-Generation Business Model.

Social Business Moves to Workflow, Manufacturing, and Money

I receive e-mail frequently from PR people promoting the latest IT tools and new Web applications. These days a common thread I see is the addition of social features to software to make it easier for users to share information and collaborate with others. Personally, I believe it’s largely beneficial to 1) find ways to take advantage of the social graphs that users have been building in recent years, and 2) add the techniques and channels of the social world to make traditional software more effective and usable in general.

However, in reality these relatively minor tweaks are just the proverbial paving of the cowpath through the addition of limited social features such as collaborative sharing, persistent chat, and perhaps some deeper integration with activity streams. Unfortunately, these actions easily fail the imagination test, which is essentially this:

If you could completely rethink your work in a social business world, what would it look like? How would it be better?

To me, this is the fundamental question that organizations must be asking themselves today. Yet, I also think they should do this while going about the aforementioned incremental improvements such as adding basic social layers to their IT landscape. One reason is that this will happen inevitably as more and more enterprise applications and platforms add social computing features and companies proceed along that vendor’s upgrade path. So, while social impinging around the edges of enterprise applications is worth dealing with from a strategic perspective, it’s going to happen largely whether organizations plan for it or not. As such, it’s not likely to make a huge competitive or qualitative difference in the way most businesses perform. That is, unless they start the process of deliberate and strategic social business transformation, such as what IBM and a few other large organizations have begun.

This process of social business transformation will require both advances in social technology — such as the innovations below — as well as changes to the way we do business. Fortunately, one of the great attributes of the larger social business community is that it generally focuses as much on the business and cultural changes as it does the enabling technology. Some of the best discussions I’ve seen on the people aspect of the transition to the social enterprise are from folks like Luis Suarez, Sameer Patel, Stowe Boyd, and JP Rangaswami, who are just part of a much larger conversation about how we remake our organizations for the 21st century.

The Value Dimensions of Social Capital

So, while there are certainly some companies not tracking the sea changes in the world right now in terms of the way we are globally transforming the way we live and work, we’re also continuing to see fascinating next-generation innovations in social business. Let’s take a look at some of them.

Rethinking Workflow, Manufacturing, and Money in Social Business Terms

In just the last week I’ve encountered several fascinating offshoots of the mainstream social business thread. Social business frequently focuses either on social engagement externally or internally on collaboration and social interaction between workers. This is a limiting view, but it’s also where most of the activity and uptake is today. However, as more and more business leaders and entrepreneurs become digital natives, I’ve theorized that the power laws and principles of social business will encourage them to rethink their traditional modes of business. At the same time, Web startups and large software vendors often put themselves out 2-3 years ahead of the market by predicting where their customers will arrive once current trends reach a mainstream tipping point. Then they adjust their product roadmaps to align with this schedule. The combination of these two trends is starting to give us some interesting new possibilities.

I say possibilities, because unlike social collaboration or Social CRM, the outlook and growth potential for these innovation is still unknown. However, it does give us a sense of what’s coming next in social business.

Social BPM

Last week while I was speaking at Sibos, I had the pleasure of speaking on the phone with Sandra Moran from OpenText Metastorm, a leading workflow/BPM product that recently announced the addition of social computing features to its capabilities. Metastorm now enables workers to engage in real collaborative process design, takes advantage of social profiles to locate needed expertise to plug workers into processes in essentially real-time, and has matching dashboards to provide BPM and social analytics. OpenText had this to say about the new social capabilities, which Sandra told me is now available to over a thousand major customers as a standard part of the Metastorm suite:

These new product enhancements help organizations successfully implement business process improvement initiatives by empowering users to become more engaged and productive. Metastorm’s social collaboration tools provide businesses with a highly personalized workspace and unparalleled access to top contributors, enabling them to drive innovation and increase collaboration and improve efficiency among employees. These tools help employees find other people within their organization with specific skill sets required to help them complete their work. Companies can also route work to the most appropriate employee based on individual skills and workload – ensuring the most cost-effective strategy for work allocation.

I think this is significant for a few reasons. For one, I find that there’s often not enough focus in social tools in collapsing the walls between business processes and social conversations. They often run in parallel, side-by-side, even when they are being used simultaneously for the same piece of work. Putting social in the flow of work in highly process-intensive environments should lead to some interesting outcomes. I pressed Sandra on if there was leverage in Metastorm of existing social graphs and networks, and she indicated there was. What remains to be seen is how easy it will be to integrate the resulting BPM environment with an enterprise’s other social business efforts.

I’ll be exploring the social features of Metastorm in more detail soon on ZDNet, but I think the combination of social computing and BPM has genuine potential. This isn’t the first time social and workflow have been connected but I think it’ll be impactful given their large customer base and how central and useful the features are to the product. I’m hoping to revisit how their customers are faring in a year or so to see what the result has been. I currently believe social BPM technology, combined with the right business and cultural changes, will help companies attain a higher than average level of social business transformation.

Social On The Shop Floor

Earlier this month Derek Singleton over at the Software Advice blog wrote about social manufacturing, what you could call a new subfield of social business that’s focused on improving how companies turn raw materials into finished goods. Discussing Kenandy’s new announcement for improving the efficiency and productivity of supply chain manufacturing, Derek wrote:

Creating accessible and actionable inter-shop floor communication can only work if an entire supply chain and other manufacturers are members of, and logged into, Chatter. In short, it requires organizational change for effective use. While manufacturers using Kenandy wait for that changeover, Chatter can be a useful tool for project management. For instance, the engineer of an aerospace job shop could notify shop labor that they’ve just finished designing the wing component of an aircraft. The job shop could then begin building the wing while the engineer finishes designing the other components they’ve been contracted to build. This has great implications for just-in-time (JIT) manufacturing – as it frees up labor to work on more value-added activities rather than waiting for the completion of another phase of the production.

In my workshops at Enterprise 2.0 Conference in years past, I’ve had manufacturers and assembly line managers come up to me to say that social tools have been moving into their area of the business, but it’s mostly been horizontal tools or very focused niche solutions. We’re now seeing broader and more strategic use of social tools with the arrival of solutions such as the Kenandy social manufacturing platform, which has garnered attention in the New York Times. I’ll be exploring this further in coming months to see whether social manufacturing leads to tactical or substantive social business transformation.

The Rise of Social Currency

An Example of Social Currency: The Reputone From InnotribeFinally, at Sibos itself last week, I participated in Innotribe, a social media event inside the main financial services conference that explored various aspects of social media in financial services. For a more in-depth look, I wrote up a detailed exploration of the event on ZDNet on Friday. One of the more interesting and visionary topics at the conference was the subject of social currency, the transformation of the very concept of money in social world where reputation, trust, and openness are prized much more than information control, the latter which is how the financial industry is mostly structured to leverage for gain today.

As an experiment, a social currency called Reputone was actually in use at Innotribe, see picture right. In fact, peer-to-peer monetary systems such as Bitcoin were a hot topic at Innotribe and for good reason, it represents a major shift of control in how banking, money transfer, and investment will work in the future. If Paypal was the first generation of digital money, then Bitcoin is the Web 2.0 version. From their Web site:

Bitcoin is a new digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to operate with no central authority: managing transactions and issuing money are carried out collectively by the network.

Mark Shead recently provided a good overview to Bitcoin concepts and is worth taking a look at. In the final analysis, Bitcoin falls a bit short of being a true social currency, in that it doesn’t have an explicit capital mechanism based on social graphs or other means that leverages the intrinsic worth of social status and reputation. That doesn’t mean it should be watched closely as money and social reputation appear ready to get deeply intertwined and Bitcoin is at the leading edge of digital currency at the moment. This is a subject that warrants a lot more exploration as companies such as Facebook look at making their global platforms far more relevant from an economic perspective. For additional insight, David Armano posted some useful insights on social currency recently on his Harvard Business blog.

I’ll be exploring all of these concepts in more detail in coming months as social business continues to evolve. I would love your questions and feedback on this emerging social business topics below.

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