enterprise2.0 conference presentation
DESCRIPTION
This is the presentation I delivered on 6/25/09 in Boston at the Enterprise2.0 Conference. It was created by my friend Aaron Kim. The speaker notes and stories are mine.TRANSCRIPT
Enterprise 2.0 Anti-Patterns, ROI and metrics Enterprise 2.0 Anti-Patterns, ROI and metrics
technology • business • peopletechnology • business • people
Enterprise 2.0 Anti-Patterns, ROI and metrics Enterprise 2.0 Anti-Patterns, ROI and metrics
technology • business • peopletechnology • business • people
1 © 2009 IBM CorporationNot for further distribution
Photo by Flickr user and IBMer shawdm,used with author permission
Jennifer OkimotoSenior Managing Consultant, Human Capital Management – IBM US
In Twitter:@jenokimoto#e2conf29
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• Senior Managing Consultant, Enterprise 2.0 Provocateur and Hand Holder with IBM Global Business Services – Human Capital Management Practice
• Leading our Workforce and Talent Solutions – Connect initiative
• 17 years as a Consultant – BPR, CRM, ERP, L&D, K&C, WTS
• Current clients in Electronics, Chemicals & Petroleum and Pharmaceutical industries
• Co-chairs the Web2.0 for Business IBM Community• Political Science and Chinese Studies degrees from
Wellesley College• MPIA in Comparative Public Policies from University
of California, San Diego, International Relations and Pacific Studies
• In the last year I’ve worked in the US, Toronto, Buenos Aires, London, Paris, Bangalore, Singapore, Shanghai and Beijing
About Me
Tag cloud generated by Wordle, a masterpiece app by IBMer Jonathan Feinberg
About Me
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•From Hype to Productivity
•Enterprise Web 2.0 Anti-Patterns
•ROI and Metrics *
Agenda
Part I:The Journey to Productivity
Hype Curve conceived by Gartner
Visibility
TimeTechnologTechnology y TriggerTrigger
Peak ofPeak ofInflatedInflated
ExpectationsExpectations
Trough ofTrough ofDisillusionmentDisillusionment
Slope ofEnlightenment
Plateau ofPlateau ofProductivityProductivity
Web 2.0
Going through Gartner’s Hype Curve
Source: Crossing the Chasm, by Geoffrey A Moore
Technology
Enthusiasts
Visionaries
Pragmatists
Conservatives
Skeptics
Early Adopters
Early Majority
Crossing the Chasm
Chasm
Source: IOA CMM Level 5 Journey
From “Hit or Miss” to Process Stability & Improvement
Initial Manage Defined QuantitativelyManaged
Optimized
Hero-based culture Process-based culture
The roadmap to the future The roadmap to the future
Columbus Monument, Santo Domingo, Dominican RepublicPhoto by Aaron Kim
Part II:Enterprise Web 2.0 Anti-
Patterns
In software engineering, an anti-pattern is a design pattern that appears obvious but is ineffective or far from optimal in practice.
It’s a pattern that tells you how to go from a problem to a bad solution.
It’s something that looks like a good idea, but which backfires badly when applied.
In software engineering, an anti-pattern is a design pattern that appears obvious but is ineffective or far from optimal in practice.
It’s a pattern that tells you how to go from a problem to a bad solution.
It’s something that looks like a good idea, but which backfires badly when applied.
Sources: Wikipedia (as of 12/Sep/2008)http://c2.com/cgi/wiki?AntiPattern
Antipattern:
<pattern name>
Why the bad solution looks attractiveIt becomes a pattern because somehow it looks like the right thing to do
Why it turns out to be bad
Common pitfalls
What positive patterns are applicable instead
Best (Good?) Practices
Antipattern:Antipattern:
Fear 2.0Fear 2.0Photo by Flickr user Violator3, licensed under Creative Commons, Attribution 2.0 GenericPhoto by Flickr user Violator3, licensed under Creative Commons, Attribution 2.0 Generic
•Fear is not a bad thing, but action paralysis is
•Failure comes with a name tag
•Innovating is risky, not innovating may be riskier
•Full control is no longer in your hands
•Fail often, fail quickly, fail gracefully and learn from it *
* Partially based on a presentation by Mike Moran
Antipattern:
Fear 2.0
The cousin to Fear2.0Antipattern:
Control 2.0
Photo by IBM Beehive user Ole Rasmussen, licensed under Creative Commons, Attribution 2.0 Photo by IBM Beehive user Ole Rasmussen, licensed under Creative Commons, Attribution 2.0 GenericGeneric
Photo: Leopard EMPhoto: Leopard EM
Antipattern:
New World, Old Habits
Photo by Flickr user dcjohn, licensed under Creative Commons, Attribution 2.0 GenericPhoto by Flickr user dcjohn, licensed under Creative Commons, Attribution 2.0 Generic
Antipattern:
New World, Old Habits
Photo: StockExchangePhoto: StockExchange
Antipattern:
New World, Old Habits
Your clients
Your business partners
Other employees in your company
Co-Workers
Friends
YouJimMary
Your managerJim’s manager
Susan
JohnHelen
Roberto
Akira
Chris
Peter
Frequent e-mails
Infrequent e-mails
Web 2.0 Collaboration
People as your competitive advantagePeople as your competitive advantage
•“It’s just like phone and email”
•A fool with a tool is still a fool
•“Web 2.0 is an attitude, not a technology” (Ian Davis)
•It’s about culture transformation, not a toolset
•“Ultimately, taking full advantage of Web 2.0 may require Management 2.0” (Business Week, June 5,
2006)
Antipattern:
New World, Old Habits
Antipattern:
Build it, and they will come
Photo by Flickr user Sister72, licensed under Creative Commons, Attribution 2.0 GenericPhoto by Flickr user Sister72, licensed under Creative Commons, Attribution 2.0 Generic
•“If Wikipedia works, my wiki will too”
•People have limited bandwidth 2.0
•The joke, the circus and the soap-opera
•Clay Shirky’s plausible promise, effective tool and acceptable bargain (HCE)
•User Adoption Plan + Balanced Incentives
Antipattern:
Build it, and they will come
Source: C’est la maturité, stupide! Maslow s’invite à la table du 2.0 http://mediapedia.wordpress.com/2006/07/30/c%E2%80%99est-la-maturite-stupide-maslow-s%E2%80%99invite-a-la-table-du-20/
Motivations and Rewards
Antipattern:
The World Is Flat
Photo: Wikimedia Commons, Public Domain, NASA
• In a flat world solutions should be universally applicable
• Locations and companies have unique cultures
• Online ecosystems mimic natural ones
• The joke, the circus, the soap opera…
• Think about survival strategies: competition, predation, cooperation, symbiosis
Antipattern:
The World is Flat
Antipattern:
Geekness 2.0
Photo by Flickr user pipeapple, licensed under Creative Commons, Attribution 2.0 GenericPhoto by Flickr user pipeapple, licensed under Creative Commons, Attribution 2.0 Generic
•“For it to work, you just need to use Firefox, download and install Greasemonkey, edit a Userscript and install it. Anybody can do it.”
•Second law of thermodynamics:Energy and Entropy
•Laziness 2.0
•Nudge and KISS
Antipattern:Antipattern:
Geekness 2.0Geekness 2.0
Antipattern:
Search, and thou should not find
Photo: Wikimedia Commons, Public DomainPhoto: Wikimedia Commons, Public Domain
Flickr: photos tagged with “Cat”
Flickr: “Interestingness” and “The Wisdom of Crowds”
What is Web 2.0? Seven Principles
• Your users embraced Web 2.0 and are creating plenty of content
• Most of it is likely to be, err, not very good
• Information overload will quickly overwhelm your users
• UGC needs to be indexed by the main search facility
• Not all UGC is created equal, so make the good float to the top
Antipattern:Antipattern:
Search, and thou should not findSearch, and thou should not find
Part III:ROI and Metrics
Antipattern:
Intangible means unmeasurable
Photo by Flickr user Memotions, licensed under Creative Commons, Attribution 2.0 Photo by Flickr user Memotions, licensed under Creative Commons, Attribution 2.0 GenericGeneric
•“Nobody asks what’s the ROI for phone and email”
•Business value must discount costs
•Value creation vs. value capture
•Easy to understand business case
•Easy to calculate ROI models
Antipattern:
Intangible means unmeasurable
Antipattern:
Measuring supply, not demand
Photo by Flickr user Memotions, licensed under Creative Commons, Attribution 2.0 Photo by Flickr user Memotions, licensed under Creative Commons, Attribution 2.0 GenericGeneric
•Number of bloggers, posts, wiki spaces, wiki authors are measures of supply
•Not all UGC has business value
•Not all UGC has business value proportional to its volume
•Find which demand metrics can be associated to business value
Antipattern:Antipattern:
Measuring supply, not demandMeasuring supply, not demand
ROI: The need for an “R”
Source: Let's get real or let's not play" by Mahan Khalsa
"If there is no 'R', your 'I' is a 'C'. And the cost is always too high."
What is the top barrier to the further success
of your Web 2.0 initiatives?
Source: Building the Web 2.0 Enterprise - McKinsey Global Survey Results, July 2008
Based on survey responses by 1,988 executives from around the world
“Do not understand potential financial returns”
28%
How does your organization measure the business value of its Web 2.0
deployments?
“We use traditional measuressuch as ROI, TCO & IRR”
63%
Source: IT Will Measure Web 2.0 Tools Like Any Other App, Forrester Research, July 25, 2007
Base: 190 IT decision-makers at US firms with 500 or more employeesinvested in orpiloting Web 2.0 technology
(multiple responses accepted)
The 9x Effect: Innovators vs Bean Counters
Valu
e x
eff
ort
Adapted from: Understanding the Psychology of New-Product Adoption, by John T. Gourville,
Harvard Business Review, June 2006 (modified)
3x
9x
3x
EARLY ADOPTERS/INNOVATORSEARLY ADOPTERS/INNOVATORSARE USUALLYARE USUALLY
•Convinced the innovation worksConvinced the innovation works•Likely to see a need for the productLikely to see a need for the product•Dissatisfied with the existing substituteDissatisfied with the existing substitute•Set on viewing the innovation as the Set on viewing the innovation as the benchmarkbenchmark
Innovators outweigh the new product’s benefits
by a factor of 3
BEAN COUNTERS ARE USUALLYBEAN COUNTERS ARE USUALLY•Skeptical about a new product’s Skeptical about a new product’s performanceperformance•Unable to see the need for itUnable to see the need for it•Satisfied with the existing productSatisfied with the existing product•Quick to see what they already own as Quick to see what they already own as the status quothe status quo
Bean counters outweigh the incumbent product’s benefits by
a factor of 3
Identifying the right metrics Identifying the right metrics
Photo by Flickr user oskay, licensed under Creative Commons, Attribution 2.0 Generic
1.What is your business objective?2.Is your metric stable?3.Can a benchmark be established?4.Do you have the levers to
influence it?Iterative and Interactive!
Adapted from: 1) Rethinking Measurement: More than evaluating performance (Interview with Dean Spitzer, IBM Research)
Consultant’s Edge #146 by Peter Andrews, February 21, 20072) The Metrics Maze - Am I Lost?, by Srishti GuptaMediaPost’s Online Metrics Insider, Sep 5, 2008
Returns need to be broadly defined
Photo by Flickr user zieak, licensed under Creative Commons, Attribution 2.0 GenericPhoto by Flickr user zieak, licensed under Creative Commons, Attribution 2.0 Generic
• Increased revenue
• Increased conversions
• Increased social capital
• Brand capital
• Future value of client loyalty/employee retention
• Proxy metrics: Marketing equivalent
• Side benefits: New ideas, digitization of knowledge
• Cost avoidance:
Time saved, travel costs, real estate costs, carbon footprint
Replacement cost: knowledge lost by turnover/retirement
Opportunity costs: what is the cost of status quo or doing NOTHING
...we rather need many of them!
We don’t need a Web 2.0 ROI Model...
Source: ROI 2.0, Part 3: We don’t need a Social Media ROI modelhttp://aaronkim.wordpress.com/2009/02/19/roi-20-part-3-we-dont-need-a-social-media-roi-model/
There is no perfect Web 2.0 ROI model, there are only perfect Web 2.0 ROI models.
