enterprise 2.0: the state of an art · ©andrew mcafee, 2006 definition enterprise 2.0 is the use...

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Enterprise 2.0: The State of an Art Andrew McAfee [email protected] Harvard Business School blog.hbs.edu/faculty/amcafee

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Page 1: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

Enterprise 2.0: The State of an Art

Andrew McAfee [email protected] Business Schoolblog.hbs.edu/faculty/amcafee

Page 2: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Agenda

1. Definition2. Underlying trends3. Potential benefits4. Adoption challenges5. Conclusion

Page 3: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Definition

Enterprise 2.0 is the use of emergentsocial software platforms withincompanies, or between companiesand their partners or customers.

Wikis BlogsPrediction Markets

Social Networking Software

RSS LinksTagsSearch

Page 4: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Importance of Enterprise 2.0

Technologies and approaches are novelOffer more than incremental improvement– Innovation– Collaboration– Knowledge sharing– Collective intelligence– Search and discovery

Page 5: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Who’s pursuing Enterprise 2.0?

GoogleAvenue A / RazorfishMcKinseyLockheed MartinUS Intelligence Community

British TelecomFidelityIBMOracleT. Rowe PriceBooz | Allen | Hamilton

Page 6: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

What is the Nature of the Change?

Underlying Trends1. Social software2. Network effects3. Free and easy platforms for communication4. Lack of up-front structure5. Mechanisms to let structure emerge

Page 7: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

Easy and Free Platforms

Page 8: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Channels and platforms

Email = channel– Point to point(s)– Invisible to others– Can’t be consulted

Website = platform– Universal– Visible– Consultable

Blog = free, easy platform– No $, expertise required– Also wikis, Facebook,

Flickr, YouTube, etc.

Page 9: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

Lack of Up-front Structure

Page 10: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

How does IT bring structure to work?

Roles / Identity / PrivilegesWorkflow / process stepsData formats, required content, etc.

Page 11: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Page 12: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Del.icio.us and Tags

Page 13: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

Mechanisms to Let Structure Emerge

Page 14: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Search

How do you find what you’re looking for on the Web?

Page 15: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Del.icio.us tags

“Folksonomy,” not taxonomy

Page 16: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Flickr Clusters

Page 17: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

The Potential Benefits of E2.0

Page 18: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

None

A Knowledge Worker’s View of the Enterprise

PotentialWeak

StrongTies

Page 19: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Strongly-tied teams

Prototypical Tool:- WikiBenefits:- Productivity,

agility, responsiveness

StrongTies

Page 20: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Weakly-tied networks

Prototypical Tool:- Social Networking

Software (Facebook)

Benefits:- Non-redundant

info., bridges to other networks

Weak

Page 21: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Potential colleagues

Prototypical Tool:- BlogosphereBenefits:- Innovation,

serendipity, bridging

Potential

Page 22: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Idea Sharing at Intrawest

Page 23: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

The Avenue A | Razorfish Intranet

BlogPosts

Bookmarks

News

Tags

Uploads

NewPages

Page 24: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

None

People who have nothing to say to each other

Prototypical Tool:- Prediction MarketBenefits:- Collective

intelligence

Page 25: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Collective and Convergent:Hollywood Stock Exchange

Wolfers, J. and E. Zitzewitz (2004). "Prediction Markets." Journal of Economic Perspectives 18(2): 107-126.

Page 26: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

Challenges

Page 27: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Adoption Challenges

Technical Organizational

Ease of Use

Amount of Imposed Structure

Personal Benefits vs. Costs

Comfort with Lateralization

Culture, Norms,and Skills(Email’s 9x problem)

Page 28: Enterprise 2.0: The State of an Art · ©Andrew McAfee, 2006 Definition Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and

© Andrew McAfee, 2006

Conclusions

Enterprise 2.0 is going to increase differences among companies– Willingness to embark– Sincerity of effort– Ability to execute

These differences will be important– Responsiveness– Knowledge capture and

sharing– Collective intelligence

Tools, approaches, and business models are still in flux; much more innovation to comeEnterprise 2.0 will play out over the next several years