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  • June 2010

    The End of the Culture 2.0 Crusade?

    There have been a lot of great summaries of what was discussed at last week’s Enterprise 2.0 show in Boston. But for me, the most interesting topic was one that was not discussed: Culture.

    That’s a big change.

    Right up until a few months ago, Enterprise 2.0 discourse was dominated by a movement which I like to call the “Culture Crusade.” A collection of practitioners, analysts, consultants, and vendors alike have been saying that changing organizational culture is the key to successful deployment of enterprise social software. “If you don’t have a collaborative culture,” says the crusader, “all the tools in the world won’t help you.” The crusaders cited culture as the reason for failed implementations that led to the familiar phrase, “The tools were great, but we just don’t have the culture.” Consultants exhorted companies to make sure that their social software projects included a cultural change component.

    Last week, the Enterprise 2.0 world turned a corner. Nobody pounded the table for cultural change. Nobody talked about incentives or change management. Nobody talked about transparency or modeling collaborative behavior.

    Instead, people talked about process.

    Eugene Lee focused his keynote on process. Mike Gotta and Marcia O’Conner talked about it in a breakout on microblogging. Rachel Happe, Dennis Howlett, Sameer Patel, and Ted Schaedler talked about it in our sidebar conversations and on blogs. The growing consensus: Social software delivers business value when it integrates with business process.

    Process, rather than culture, is increasingly seen as the key enabler of social software in the enterprise. Rather than wringing our hands and gnashing our teeth about how to change organizational culture, we’re looking at how to insert social tools into the existing business process. Conversely, we’re also starting to look at how business processes can be redesigned and optimized now that these social tools are available.

    This is the most pragmatic shift in focus since the inception of Enterprise 2.0. It will have huge effects on the pervasiveness of social software in the enterprise, because it shows a clear path to the business value companies can realize from their implementations.

    I’ve been arguing for some time that social software achieves widespread adoption only when workers use it in the flow of work. Asking your colleagues to step outside their daily processes and tools to share what they know or network with others won’t get you very far. (Trust me, I’ve tried.) Bringing your colleagues collaborative tools and practices that make their daily processes better, faster, cheaper, and more interesting does work. It’s all about process. Improve the process, you win. Don’t improve the process, you lose.

    We are far better at managing process than at managing organizational culture. We know how to study process, how to assess its breakdowns, how to re-engineer it, how to build tools that enable it. The shift to process means that, as they so rarely say in New England, you can get there from here. There’s a way to get to the types of processes and organizations to which we all aspire.

    We also now have a workable approach to quantifying social software ROI. Business process, almost by definition, are measurable. Well-run companies know what metrics matter for each business process. They know how to measure those metrics. They understand the downstream effect that changes in their metrics have on the effectiveness of the process, and ultimately on company’s overall business performance. When we integrate social software into business processes, we automatically inherit the tools, frameworks, and benchmarks that have been developed in support of those processes.

    For the first time, we can get there from here.

    Social is a layer – making the vision a reality in the enterprise

    In Eugene Lee’s keynote speech at Enterprise 2.0 in Boston, he talked about how social in the enterprise needs to be a layer, not a feature. The business benefits of enterprise 2.0 are realized when more people have access to information and are able to work together to solve problems across organizational silos. But if “social” is just a feature of each business application separately, the organization cannot make use of the social network for people to find information and solve problems. (There are business reasons to keep some information in close groups, and nobody wants every message in the organization flooding into their personal stream. But the benefits of enteprise 2.0 are realized when the constraints of silos are loosened.)

    The opportunity for “social” to be a layer across applications is very similar to opportunity in personal social life. In a recent TechCrunch post, Robert Scoble wrote about the missed opportunities and connections because various services, including FourSquare, PlanCast, Tungle, Glympse, and Siri didn’t talk to each other. In Scoble’s stories, the silos create missed opportunities for personal connection – he runs late on a dinner with a friend, and misses a concert that other friends are attending. Earlier this week, I wrote about how existing standards and protocols can enable those connections today.

    The Business Scenarios

    The opportunities for connection, and the costs of missed connection are different in a business environment.

    • A customer-facing social media strategy is only as good as the organization’s ability to actually solve the customer’s problem. Imagine if a customer’s complaint on Twitter could be used privately for internal collaboration about how to solve the problem
    • Sometimes an issue surfaced by a line of business system needs input from people across the organization to solve – for example, an inventory issue that has sales implications
    • Bringing alerts and information from line of business system to the business social network helps get information and solutions from useful and surprising places

    For an illustration, see slides 18-27 in the presentation below. Social streams aren’t about the replacement of business process with networks, but about connecting business processes to the network, and engaging the network to address outside of existing process.

    Fulfilling The Vision With Today’s Standards

    In order to fulfill this vision of social as layer – not a series of tools with disconnected functionality – - a set of protocols are emerging that allow people to follow each other across tools, and to get updates from each other across tools. It is exciting to see efforts to weave together these standards and protocols to enable this social layer.

    Standard and Custom Content: The emerging ActivityStrea.ms standard provides a defined vocabulary for representing common types of social software actions – friending and following, posting, editing, liking, etc. In the enterprise, this will enable common social gestures like following and liking to be aggregated across tools, and across the cell membrane of the organization. ActivityStrea.ms was initially developed as an extension to Atom, but is now being represented in JSON, and in this form will be able to be included as Twitter Annotations.

    Annotations: Twitter has recently announced annotations as a general-purpose way of embedding data and rich content, such as images and animations, into a social message. ActivityStrea.ms JSON representation can be carried as a payload in tweets. In an enterprise context, the beauty of annotations is that they can carry any sort of payload, so businesses can define their own data.

    Interactions: Status updates have been messages. There are interesting opportunities to enable message to contain “actions” as well, like being able to share the message further. In a business context, an action might be a transaction like, for example, closing a support ticket.

    Two-way Realtime: PubSubHubBub pushes feeds in realtime to subscribers over the network. WebHooks allow application developers to create event types that clients an subscribe to. This allows applications to keep data synchronized in realtime without constant polling. Salmon is a new protocol that uses PubSubHubBub and WebHooks to alert people of responses to their status updates, across the network.These new protocols enable realtime alerts and interactions, with web architecture that can cross organizational silos and boundaries.

    Identity and Authentication: This is the area where the business and consumer worlds are the most different. In the enterprise world most good-sized organizations have a corporate directory using LDAP/ActiveDirectory for identity and auth credentials. Users need to access a defined set of applications behind a firewall; the solution is single signon, with SAML recently gaining some traction.

    In the world of social/personal applications, Facebook has become a major identity provider, with OpenID based solutions competing as a distributed alternative; these options may converge as Facebook participates actively in the internet standards process. Instead of single signon, which is appropriate behind the firewall, the problem of the user needing to enter multiple usernames/passwords is solved with delegated authentication, using OAuth. As more enterprises want to use outside-the-firewall cloud applications, and more applications start to connect people across organizational boundaries, the internet standard stack may start to become more common for enterprises in the future.

    Putting the pieces together

    In order for this to work, these layers need to all work together. OStatus is a new initiative to test interoperability in use cases involving multiple parts of the stack. These protocols working together will enable people to engage in social interactions, across tools.

    The central concept in making this vision real is that “social” is not a set of silo’d services with social features – it’s a layer that crosses multiple services. The way to bring this about is to support standards and interoperability. The social layer, connecting people across application and organizational silos, will enable organizations to solve business problems and get business value.

    Socialtext CEO Eugene Lee to Keynote Enterprise 2.0 Conference Tomorrow

    It’s been a busy week in Boston, where the Socialtext crew has been talking with practitioners, analysts and journalists about the benefits of enterprise social software and what to expect in the coming year.

    Tomorrow, Socialtext’s CEO Eugene Lee (@eugenelee) will be keynoting the conference at 10:40 a.m. eastern (which you can watch live here). Among many things, Eugene will highlight the importance of focusing on business value and offer some solutions for how the industry will move forward to better serve companies that want to get the most from their enterprise social software implementations.

    It promises to be a very compelling talk, and we hope you can check it out.

    Case Study: In Disrupted Media Industry, Meredith Drives Profitability with Enterprise Social Software

    If you follow the media industry, you know how much it has struggled to adapt its business model to the Web. But what’s not written about as frequently is how some media and publishing companies are using social software — one of the very technologies that disrupted the industry — to pursue new business opportunities and grow revenue.

    That’s been the case at Meredith Corporation (here is our full case study we published today). Meredith counts 23 subscription-based publications in its portfolio, including Better Homes and Gardens and Ladies’ Home Journal. With its various properties, Meredith serves a readership of nearly 75 million women.

    Meredith has been using Socialtext to manage subscriber campaigns, respond to market changes, and ultimately drive profitability in its circulation. Meredith utilizes Socialtext Signals for microblogging to share and discuss new ideas, SocialCalc (a social spreadsheet) to manage subscriber campaign reports and online workspaces to collaborate more deeply on strategic marketing projects.

    At Socialtext, we focus very heavily on the business value that social tools can generate for companies internally. As someone who cheerleads for media companies who work hard to adapt to market changes (I used to work for one), I was encouraged by Meredith’s strong results during the course of my research.

    “Since Meredith began using Socialtext in the fall of 2008, its subscriber numbers bettered an industry that was in decline. According to the most recent State of the News Media report, the magazine industry’s paid subscriptions, which make up nearly 90 percent of magazines sold, declined 1.12 percent overall. Meredith, meanwhile, in the second quarter of fiscal 2010, increased its circulation revenue by nearly half a million dollars from the same period a year before.
    In a disrupted industry where flat revenue or even light losses are viewed as an accomplishment, the increase wasn’t lost on Meredith’s investors when the company reported its financial results. In fact, the company reported that the “revenues, profit and related margin in Meredith’s circulation activities (that) increased in the second quarter of fiscal 2010 compared to the prior year (were) driven in part by efficiencies in subscription operations.”

    About This Blog

    Weblog on gaining business results from social software.

    On this blog, Socialtext staffers and customers explore how companies can gain the most business value from their use of enterprise social software, including microblogging, social networking, filtered activity streams, widget-based dashboards, blogs and wikis.

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