I have decided to be ‘buzz-word’ compliant and used the venerable term ‘Enterprise 2.0′ as part of the title to the post.
Disclosure: I am a consultant working for a global consulting firm, and invariably I am interested in SELLING work to clients, by proposing VALUES to them.
Enterprise 2.0 is no different in that regard and nor should it be.
I think there has been quite a lot of articles out there covering the technologies and the concepts behind enterprise 2.0, and to some extend the underlying values it proposes.
There is even recognition that to make enterprise 2.0 successful in an organisation, it requires a cultural change, and you can read Harvard Business School Associate Professor Andrew McAfee’s description on the ‘Empty Quarter‘, where he describes the quarter where the non-adopters reside. I think his depiction of types of people in an organisation with respect to enterprise 2.0 is quite accurate.
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In any organisation there are young graduates and IT professionals whom using facebook, del.icio.us, gtalk is simply second nature. Then there are those who generally (but not always) hold senior posts whom religiously uses e-mails with huge attachments and store everything in Word documents.
Andrew proposes the key challenge for enterprise 2.0 adoption is how to get the people from this ‘Empty Quarter’ to participate and more importantly get value out of it for themselves.
Now I am interested, because the people in the Empty Quarter are the very people, I and many others need to pitch ideas to, to sell consulting services and finally to bill our hours ;-). How do we convince them the value proposition of enterprise 2.0?
Just like all the other works we have successfully pitched and sold in the past to our clients, be it a CRM system, or an EAI project or dare I say an SOA project, we need to travel through the same road.
Then I thought perhaps apart from funky demos and flashy PowerPoint presentations, we need to go for something we all understand, yes something even the people in the ‘Empty Quarter’ will immediately recognise and understand.
That is an economics angle, and more importantly the concept of a market. A market is where its participants trade with each other. Take a look at the stock market as a classic example, traders buy and sell shares. These trades happen as traders make decisions based on the information that is available at the time, and then make a judgement call. Economists devote large amounts time and money to analyse the behaviours of traders in such markets, and how information is shared and flowed and how that in turn influence the market outcomes.
In many economics text books, you will see the following lines quite often.
…assuming rational behaviour;
and everyone has perfect and complete information…
Hmmm… perhaps I was paying attention in my university lectures. It’s really this perfect and complete information that is interesting and relevant here. We now know (perhaps some of us always did) that in any real markets, it is often not possible to have perfect and complete information for all the participants, hence markets are not efficient.
Why? Because information costs money and time to obtain, and sometimes there are inside information whether we like it or not hence not shared, and sometimes information is tacit, and simply requires too much effort to organise and decipher.
Enterprise 2.0 provides a cheap medium of which information can be shared. The cost of participating in this ‘market’ is low, and there is no barrier to entry (at least not technological ones). From an organisation’s perspective, managers and executives need to ensure their time is spent efficiently. Since everyone’s time is finite, they need to ensure that the good set of information is arriving at their finger tips so that they can make sound decisions just like the traders in the stock market are making the right buys and sells.
If we can convince the key decision makers this, then we should be able to get management support to implement such systems and spread the good news.
~paul