Enterprise 2.0 advocates launch vague defense that industry is not a crock

enterprise crockA panel at the Enterprise 2.0 conference in San Francisco today tackled the juicy-sounding topic “Is Enterprise 2.0 a Crock?” The speakers fired back against a piece from August by ZDNet’s Dennis Howlett declaring, “Enterprise 2.0: What a crock.” They delivered some interesting, but disappointingly similar-sounding, defenses of how technologies like blogs, wikis, and social networks can benefit big companies.

The panelists said that one of the hurdles to convincing enterprise-scale organizations that these new tools are worth their money is the difficulty in quantifying the business benefits. It’s hard to calculate an exact return on investment when it comes to better collaboration: “When somebody figures that out, they’ll make a million,” said Greg Lowe, social media architect and program manager at Alcatel Lucent.

But the inefficiency of older technologies has a real cost, said Megan Murray, community manager/project coordinator of Booz Allen Hamilton. She said her company once calculated that all the time wasted by an email that was sent to thousands of employees, where many recipients hit “reply all” to unsubscribe to the mailing list, was worth a total of $250,000. That number is only “an indicator” of the huge amounts of money that could be saved by adopting Enterprise 2.0 tools, she said.

Murray also argued that regardless of what skeptics say, company workforces are already adopting a new technologies: “That’s happening, period. These [Enterprise 2.0] technologies are simply allowing us to get that done smarter, faster, better, now.”

More broadly, the panelists identified five principles when it comes to bringing these applications into enterprises:

  • Workforce transformation
  • Business process/operations
  • Intellectual property/privacy/governance
  • Religious wars (technology/generational bias)
  • Bottom-line business benefits

I’d elaborate on how those principles are supposed to tie into Enterprise 2.0, but I found a lot of that discussion rather vague. That’s a general frustration I (and others) had with the panel — there was little direct engagement with the skeptics. Is it any surprise that a bunch of social media consultants and community managers would argue in favor of social, collaborative tools? I would have liked to hear fewer “Yay collaboration!” homilies and more specific responses to criticism. Even when the speakers offered real examples, they tended to involve “knowledge-based” industries, which is the one area where Howlett acknowledged Enterprise 2.0 really makes sense.

With that in mind, I’ll close with a quote from Howlett’s piece:

Therein lies the Big Lie. Enterprise 2.0 pre-supposes that you can upend hierarchies for the benefit of all. Yet none of that thinking has a credible use case you can generalize back to business types – except: knowledge based businesses such as legal, accounting, architects etc. Even then – where are the use cases? I’d like to know.

[image:flickr/mikomatsumura]

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About the Author, Anthony Ha

Anthony is VentureBeat's assistant editor, as well as its reporter on enterprise technology, cloud computing, and tech policy. Before joining VentureBeat in 2008, Anthony worked at the Hollister Free Lance, where he won awards from the California Newspaper Publishers Association for breaking news coverage and writing. He attended Stanford University and now lives in San Francisco. Reach him at anthony@venturebeat.com. You can also follow Anthony on Twitter.

  • Clearly Anthony you need to spend more time looking at customer success stories instead of judging an industry on one article (that was torn to shreds) and one panel discussion. Reading your post was like Deja Vu all over again. I still remember the anti-social networking crowd exclaiming that there is no real benefit to social networking. They used to say, "why should I share anything on the internet, what benefit is it to me?"

    Enterprise 2.0 is both a technological and business strategy approach to improving the way we work today. True, their are not enough case studies, yet the early results have shown real ROI. If you like, I'll introduce you to the studies on the subject by McKinsey, Garnter and Forrester. Or continue to deny the movement and get left behind. Your choice.
  • Geoff H
    Where are the success stories? I'd like to hear how people feel this has improved their business, and what specific technologies were doing what.
  • nenshad
    Hi Anthony,

    I made a very serious attempt to bridge the perspectives in my blog post entitled "Is Enterprise 2.0 a Savior or a Charlatan? How Strategy-Driven Execution can pave the path to proving legitimate business performance" located here: http://bit.ly/3n325o

    I would certainly welcome your feedback and look forward to a continued dialogue around the topic.

    Best Regards,

    Nenshad