Idc research on anz enterprise social nzspc

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Social For Enterprise

Understanding evolution of Social in

Enterprises – ANZ

June 2012

Copyright IDC. Reproduction is forbidden unless authorized. All rights reserved. 2

Table of contents

Research Scope

Executive Summary

Enterprise View

LOB Perspective

IT Perspective

Conclusion & Recommendations

Appendix – Survey Demographics


Research scope

What this study entails

3


Research scope

4

Geography

Sample Size (# of respondents)

Clusters

• ASEAN (Singapore, Philippines, Malaysia, Indonesia & Thailand)

• ANZ (Australia & New Zealand)

• Korea

Target

Respondents

Respondent Category

• Quantitative Research – LOB & IT Decision makers & Influencers in

MNCs with PC installed base greater than 500 in APAC

Countries Sample Size

ANZ 151

Singapore + ASEAN 151

Korea 50

Methodology Schedule May – June 2012

Survey Instrument Phone Survey


Executive Summary

Summary of key research findings

5


Executive Summary

6

1Almost three quarters of companies in ANZ will have enterprise social networks in place within

18 months. Of those who won‟t, company policies barring the use of social networks from

work is the main barrier.

2Many different tools are on the wish list for enterprise social networking, but “traditional” tools

are still the most important (IM, email). But the use case for ESN will expand rapidly in the

next 24 months.

3Collaboration is still the name of the game. Most companies see ESN as an important tool for

better employee collaboration and information sharing, for company transformation and

employee morale. But only half see ESN as a means to increase productivity.

4Integration is seen as extremely important. All agree that integration between social tools and

CRM. BI, UC and media tablets are important and IT managers are very focused on

integration with existing IT infrastructure.

5 Whereas all agree that integration is important, LOBs don‟t see their IT departments as being

proactive in this area.

6More than a quarter of LOBs do not directly involve the IT department in the buying process

for Internet-based tools. Only 20% ask the IT department to implement these tools for them.

So although IT departments are seen as very important in driving ESN on a strategic level,

they appear less important in the actual adoption and use of social tools.

7Overall, Microsoft is seen as the vendor offering the most complete set of social tools,

followed by Cisco and Google. Other pure cloud and Internet based solution providers score

very low – including Salesforce Chatter.

Apr-13© IDC

Why so high ESN adoption?

“By „enterprise social

network‟, we mean the use of

software and services as a

means to facilitate

communication and collaboration

internally among employees or

externally with customers and

partners, with a focus on

accomplishing business-related

tasks.”

• Definition intentionally broad

– no „behind the firewall‟

requirement.

• Some would call IM and

email „social‟.

• Some would include „official‟

use of consumer grade

social tools.

Much of the current adoption

is perhaps not „enterprise

grade‟.

7


Enterprise View

Understanding important tools, drivers and constraints for adoption

8


Current adoption of ESN

52%

have an ESN network in place

22%

are planning to adopt one within 18 months

26%

have No plans

9

S5. Does your organization currently have an enterprise social network in place

ESN adoption is quite high with more than half having an ESN in place. 26% have no plans – mostly

because they have policies banning the use of social networks in the workspace (see slide 17).

N = 265


Preferred and top 3 ESN tools used

10

Q1. When you think about enterprise social networking, what kinds of communications and collaboration tools do you believe it should include? Please tick the ones

you think are important for your organization. [MR]

Q1A. Amongst the communications and collaboration tools you selected, what are the TOP 3 most important tools that should be included as part of enterprise social

network? [TOP 3] (Weighted Average)

Email and Instant Messaging are still the cornerstones of ESN but voice (through UC) is also important.

62%

64%

67%

74%

75%

75%

79%

82%

85%

92%

96%

Microblogging

Video uploads (like YouTube)

Company social networks

Community/team sites

Employee news/activity streams

Company/intranet search

Document and file sharing

Discussion forums

Unified communications

Email

Instant messaging

Preferred ESN Tools

7%8%

32%

Email Unified communications

Instant messaging

ESN Tools

N = 151


Usage of consumer type social tools

11

Not surprisingly, IM and video conferencing are the most used consumer type social tools – probably driven

by Skype, Yahoo! Messenger and Windows Live Messenger. But file sharing and external social networks

(Facebook etc.) are also widely prevalent.

1%

43%

79%

81%

83%

90%

Other

Microblogging

External social networks

Document and file sharing

Video conferencing

Instant messaging

Usage of consumer type Social tools in Enterprises

83% use Video

Conferencing

90% use Instant Messaging

N = 151

Q2. As far as you know, which of these CONSUMER TYPE social tools are currently being used for work purposes in your company? [MR]


ESN usage behavior

12

Q3. Do you currently use or plan to use social tools or services for following purposes in your organization? [SR] – Sorted by “Use Now”

Q3a. Which social tools (brand or product) do you mostly use for these purposes?

Collaboration is the main purpose for ESN usage, with little or no use for BPM. But all usage areas will see

high growth in the next 24 months – especially internal knowledge sharing.

19%

18%

18%

11%

18%

20%

5%

11%

7%

5%

38%

42%

38%

55%

35%

39%

56%

47%

43%

34%

34%

29%

32%

19%

32%

25%

22%

23%

25%

34%

10%

11%

12%

15%

15%

16%

17%

20%

25%

27%

Business Process Management

Internal Onboarding HCM

Collecting feedback and insight from consumers social sites

Communicating with partners and customers

Ideation & Innovation Mgmt

Customer care

Internal knowledge sharing

Collaborating with partners and customers

Internal Training & Learning Mgmt

Internal collaboration

Primary usage of ESN tools in the Enterprises

No Plans Plan to use in 6 - 24 months Plan to use within 6 months Use Now N = 151


ESN usage behavior – ranked by adopting plans

13

Q3. Do you currently use or plan to use social tools or services for following purposes in your organization? [SR] – Sorted by “Use Now”

Q3a. Which social tools (brand or product) do you mostly use for these purposes?

Internal knowledge sharing, communication with partners and customers and BPM will be the biggest focus

areas for social tool adoption in the next 24 months.

20%

18%

7%

5%

11%

18%

18%

19%

11%

5%

39%

35%

43%

34%

47%

38%

42%

38%

55%

56%

25%

32%

25%

34%

23%

32%

29%

34%

19%

22%

16%

15%

25%

27%

20%

12%

11%

10%

15%

17%

Customer care

Ideation & Innovation Mgmt

Internal Training & Learning Mgmt

Internal collaboration

Collaborating with partners and customers

Collecting feedback and insight from consumers social sites

Internal Onboarding HCM

Business Process Management

Communicating with partners and customers

Internal knowledge sharing

Primary usage of ESN tools in the Enterprises

No Plans Plan to use in 6 - 24 months Plan to use within 6 months Use Now N = 151


ESN usage drivers – Internal

14

Q4. How valuable do you think social tools and social platforms are for achieving these goals within your organization? Please rate on a scale from 1-

4, with 1 meaning "Least valuable" and 4 meaning "Most valuable". [SR PER ROW] – Sorted by Sum (3:4)

Most companies see ESN as an important tool for better employee collaboration and information

sharing, for company transformation and employee morale. But only half see ESN as a means to increase

productivity.

38%

30%

31%

23%

27%

23%

20%

22%

18%

15%

11%

42%

51%

46%

52%

54%

64%

53%

58%

61%

60%

64%

10%

16%

21%

20%

19%

11%

23%

18%

19%

25%

25%

Increased Employee Productivity

Better problem solving

Search for information, people and skill sets within the organization

Cost savings on travel, traditional conference services etc.

Capturing and storing ideas and content expressed and created by staff

Improving work flow and business processes

Connecting a disparate workforce

More engaged and satisfied employees

Transform our company culture to leverage and embrace modern

Better information sharing

Better employee collaboration

ESN Usage Drivers – Internal 1 - Least Important 2 3 4 - Most Important

N = 151


ESN usage drivers – External

15

Q4. How valuable do you think social tools and social platforms are for achieving these goals within your organization? Please rate on a scale from 1-

4, with 1 meaning "Least valuable" and 4 meaning "Most valuable". [SR PER ROW] – Sorted by Sum (3:4)

ESN is seen as an important way to achieve all the goals we prompted for – especially as a way to better

communicate with partners and customers. This could reflect that companies are more focused on

communicating than collaborating with partners.

3%

5%

2%

5%

27%

21%

19%

15%

10%

61%

60%

62%

58%

50%

10%

15%

17%

23%

38%

Better collaboration with business partners

Analyze patterns among group of users interacting in social sites

Collecting ideas and feedback from customers consumers

Better customer experience

Better communication with business partners and customers

ESN Usage Drivers – External 1 - Least Important 2 3 4 - Most Important

N = 151

3%


Importance of ESN & Voice, Video and Mobile device integration

16

Q5. How important is it to be able to extend, connect or integrate social tools to the following devices and applications? Please rate on a scale from 1-

4, with 1 meaning "Least important" and 4 meaning "Most important". [SR PER ROW]

Voice and video integration is seen as very important – most notably for systems and larger screen devices

(tablets). Respondents are divided when it comes to video and voice integration on mobile handsets.

-43%

-16%

-15%

-14%

-11%

57%

84%

85%

86%

89%

Integration of ESN with..

Media Tablets

Unified Communications Systems

Company Phone Systems

Video Conference Systems

Mobile Devices

5 19

8245

5 16

73 57

3

62 72

14

1 2 3 4

4 18

104

25

(1 = Least important; 4 = Most important)

116

8153

Important

3 + 4

Not Important

1+2

N = 151


Importance of ESN & Application integration

17

Integration with other enterprise SW is seen as very important and so is integration with external social

networks and services. But having all social tools integrated into one use interface appears less important.

-63%

-23%

-17%

-15%

-13%

37%

78%

83%

85%

87%

Integration of Social tools with..

Enterprise systems such as CRM and

ERP

Business analytics

Productivity suites

Internal social tools and external services

such as Facebook and Twitter

Different social tools

4 21

7551

4 18

8940

4 16

111

20

16

7943

13

1 2 3 4

727

85

32

Q6. On a scale from 1 to 4, where 1 being least important and 4 being most important, how important are the following?

N = 151

Important

3 + 4

Not Important

1+2


ESN adoption concerns

18

Q7. What are your main concerns when it comes to implementing a social enterprise solution in your company? Please choose the TOP 3 items that

are of most concern. (TOP 3) (Weighted Average)

The “usual suspects” are the main concerns for ESN adoption: Cost, governance and security. Cost is the

main concern for both IT and LOB as is governance & compliance. LOBs are even more concerned about

security than IT.

1%

2%

3%

8%

12%

13%

14%

16%

31%

Ability to build custom applications that can support the unique use …

Our company culture is not yet ready to leverage/embrace …

Integration into existing systems

Sensitive information can be leaked though employee conduct

Lack of control

Compliance

Security

Governance

Cost

Main Concerns with ESN Implementation

N = 151

For 31%Cost is the

topmost

inhibitor


Barriers to ESN adoption

19

S6. What are the TOP 3 reasons for not planning to develop or buy an enterprise social network in your organization? [TOP 3] (Weighted Average)

Many companies are still completely adverse to the idea of ESN. IT departments in particular still think that

ESN would be a waste of company resources and that employees wouldn‟t use them. About 26% of

companies overall had not plans for ESN adoption in the next 18 months

0%

8%

9%

10%

12%

15%

19%

27%

The ROI for deploying and using social networks inside …

Ad-hoc use of free Internet-based social networks are sufficient

Email and telephones are sufficient for us to collaborate internally

Current solutions are too insecure

Enterprise social networks are too new

Our employees wouldn't use it

It's a waste of company resources

We don't want to allow social networks of any kind in the work …

Reasons against ESN adoption

N = 54

27% do not allow

ESNs**Base: companies that responded “No

plans to implement ESN” in S5


ESN decision makers

20

S7. In your opinion, who creates the strategy for the use of social tools in your organization? [MR]

ESN adoption is still driven by IT and senior management. Lines of business respondents attribute some

importance to sales and marketing and there does seem to be some mismatch between strategy

formulation and social tool adoption.

IT department/

CIO

90%

Senior

Management

85%

Sales

5%

Marketing

5%Others

1%

ESN Decision Makers

N = 151


ESN brand/vendor preference - Overall

21

Overall, Microsoft is seen as having the most complete set of social tools and more than a third had

Microsoft as the first choice (IBM 4th). Apart from Google, web and cloud based vendors had single digit

scores, led by Facebook with 8%. Salesforce Chatter only got 2%..

N = 352

18%prefer Cisco

16%prefer Google

26%prefer Microsoft

Q8. When it comes to Social Enterprise Solutions, which of the following software offer the most complete set of social tools? Please choose the TOP 3

brands/ products? (Weighted average)

8%

prefer Facebook

2%

prefer Jive

2%

prefer Newsgator1%

prefer Yammer


LOB Perspective

Adoption of enterprise social tools

22


LOB ESN decision making

23

More than a quarter of LOBs do not directly involve the IT department in the buying process for Internet-

based tools. Only 20% ask the IT department to implement these tools for them.

5%

5%

20%

23%

48%

I generally don't ask or notify our IT department

We have not purchased Internet based social tools

I ask our IT department to implement the tools for me

I inform the IT department but don't wait for their approval before using the tools

I ask for permission before using any such tools

ESN decision making – LoB perspective

N = 61

LOB1. What best describes your dialogue with your IT department when you decide to buy or subscribe to Internet-based tools such as social

networks, instant messengers etc. for work use? [SR]


Reasons for using consumer type tools

24

LOB2. What best describes your reason for using free consumer type tools? [MR]

The main reasons for adopting Internet-based, consumer type tools are cost and the fact that the IT

department can be circumvented. User friendliness and familiarity also play key roles.

21%

36%41%

54% 56%

62%

70%

I would use an enterprise solution instead if it were

available

They allow us to connect with partners and customers

They look better than similar enterprise platforms

They are more intuitive to use

than similar enterprise platforms

We use them because our

employees use them for personal

purposes

We can use them without involving

our IT department

They are cheaper than similar enterprise solutions

Reasons for using Consumer type tools

N = 61


LOBs perception of IT and social tools

25

LOB3. In your view, what best describes your IT department's attitude towards social tools? [SR]

IT departments are generally seen as helpful and proactive in implementing social tools. But few see the IT

department taking initiative for integration with CRM, BI and UC. This is in stark contrast with how important

such integration is (see slide 15).

3%

5%

7%

7%

16%

28%

34%

They are too slow in implementing social tools and services

They always say "no"

They implement tools that no one uses

They take initiative to ensure that other tools such as CRM, UC, BI, Portals are integrated with the social tools

They actively ensure that the tools comply with our company's policies for security, compliance and governance

They implement social tools - but the initiative is taken by the business units

They take the initiative to implement new social tools

IT department's attitude towards ESN tools

N = 61


IT Perspective

Adoption of enterprise social tools

26


Organization‟s readiness for social

27

IT1. Is your organization more inclined to adopt new social software, or to implement a solution that leverages existing investments/infrastructure? [SR]

Companies are split on how to adopt social software. Roughly 50% are inclined to adopt new tools and

50% are inclined to leverage existing IT investment to some extent.

N = 90

Adopt new social

software

53%

Leverage existing IT

investment

29%

A mix of both

18%


Integration need of ESN with existing infrastructure

28

IT2. How critical is it to have your social networking tools integrated with your existing infrastructure? [SR]

Integration of social networking tools with existing IT infrastructure is seen as important. This is in line with

the importance placed on integration with other SW tools and services such as CRM, BI and UC.

12%

63%

21%

3%

Not importantSomewhat importantExtremely importantAbsolutely essential

Need of ESN Integration with existing Infrastructure

N = 90

87%say integration is

“Important”


Thank You

Shoot Us An Email at:

Harish Taori: [email protected]

Claus Mortensen: [email protected]

IDC is the premier global provider of market intelligence, advisory services, and events for the information technology, telecommunications, and consumer technology markets. IDC helps IT professionals, business executives, and the investment community make fact-based decisions on technology purchases and business strategy. More than 1,000 IDC analysts provide global, regional, and local expertise on technology and industry opportunities and trends in over 110 countries worldwide. For more than 45 years, IDC has provided strategicinsights to help our clients achieve their key business objectives. IDC is a subsidiary of IDG, the world's leading technology media, research, and events company. You can learn more about IDC by visiting www.idc.com

mailto:[email protected]

mailto:[email protected]


Appendix - Survey demographics

Enterprise details

30


Survey demographics

31

6%

22%

62%

11%

10,000 or more 5000-9999 1000-4999 1-999

Total Employees

10%

30%

1%

1%

2%

5%

19%

32%

Do not know

Refused

<$100,000

$1 million to <$10 million



$50 million to <$100 …

$100 million or more

Enterprise Revenue Distribution

7%

8%

9%

74%

Finance

Administration/Executive

Production/Operations

Information Technology (IT)/MIS

Respondent's Department

Discrete Manufacturing

5%Retail &

Wholesale6%

Financial Services

6%

Telco6%

Distribution & Logistics -

Transportation Services

7%

Banking8%

Others, please specify

11%

Process Manufacturing

11%

Professional Services

13%

Education19%

Industry Distribution

N = 151


Survey demographics

32

0%

30%

70%

<500 PCs 500 - 1000 PCs >1000 PCs

PC distribution

68%

32%

0%

I have decision making authority on IT Solution purchasing decisions

I do not have decision making authority but I influence IT Solution

purchase decision making

I do not have decision-making or influencing authority

IT Solution Purchase Decision Making

0%

3%

5%

13%

13%

19%

46%

I do not have decision-making authority

Business Decision Maker: I have the decision making authority for the …

Business Decision Maker: I have the decision making authority for …

Business Decision Maker: I have the decision making authority for a …

IT Decision Maker: I have decision making authority for a team within …

Business Decision Maker: I have the decision making authority for my …

IT Decision Maker: I have the decision making authority for IT …

Respondent Decision Making Authority

Countrywide70%

Regional30%

PC Distribution: Country vs. Region

N = 151

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Idc research on anz enterprise social nzspc