RevolutionEnterprise 2.0

Executive Strategy BriefingWednesday, 7 July 2010

IntroductionHugo Leijtens (CTO / MD)

• Nexocial– www.nexocial.com– www.hugoleijtens.com– www.socialcomputingjournal.com– www.xmpce.nl

• Technology Evangelist• Most Valuable Professional• MS Certified System Engineer

Social Collaboration at work

Samen meer business

•Changing workplace•Enterprise 2.0•A Demonstration•Bounding the Opportunity•Recommendation•Conclusion & Discussion

Business Challenges• Rapidly changing market• A drive to return to business

fundamentals• Far-flung and loosely connected

groups, disparate cultures• Desire for better operational

control• A plan to enable future growth

Background• Enterprise 2.0

– Globally visible, persistent collaboration• Employees, partners, and even customers• Leaves behind highly reusable knowledge

– Uses wikis, blogs, social networks, and other Web 2.0 applications to enable low-barrier collaboration across the enterprise

– Puts workers into central focus as contributors

– Builds and sustains strong connections across the organization

– Case studies of early adoption consistently verifying significant levels of productivity and innovation

Enterprise 2.0 systems adapt to the environment, rather than requiring the

environment to adapt to it.

In person

Phone/Voice mail

Emails

Physical mail

Online chat / IM

Mobile text message

RSS feeds posted on portal

Widgets

80

76

74

38

6

5

5

1

58

49

46

20

21

18

12

9

Communication Methods

How should your organization be communicating How is your organization communicating

Best Practical Vehicle for:

Enterprise 2.0

Social Networks vs. Collaborative Networks

Feature Function Benefit

Profiles & Friends Self managing Corporate Address book

Easy expert and resource location to save time and money

Activity Feed List of recent activities of you and your colleagues

Information becomes relevant again, reduce information overload

Blogs Offers individuals a way to communicate/share information with broad set of other individuals

Reduced training cost per employee on average by 14%

Wiki Facilitates co-creation of content/applications across large, distributed set of participants

Improved new employee time-to-productivity on average by 19%

Discussion forum Ask and answer questions or discuss new ideas or issues

Shortened time-to-resolution on average of 22%

Groups Self organizing groups of people and information of the same interests

Reduced project time-to-completion on average of 34%

Tagging / RSS Adds additional information to primary content to prioritize information or make it more valuable

Get metadata on your content to find the right information faster and save time and money

Benefits

Outcomes with Enterprise 2.0

• More information is left behind by workers at the end of business processes that results in re-use and leverage-over-time

• Faster and improved access to a wider range of ideas and expertise across an organization– 20% of worker time on average is spent

finding information• Active facilities to find and use

institutional knowledge before it gets out-dated

• Persistent, global conversations are created naturally to develop a more unified and coherent business culture

Demo

Software Required:But It’s Process and People:

Community Management

Case Study

• Heavily use of forums• Use blogs throughout

the organization– Though Leader– Venture Team Blogs– Run the Hill blogs

• The Directory• Wiki for workprocess

Enterprise 2.0 ROI for Financial Services

• US credit reporting agency TransUnion recently claimed an initial estimated saving of $US2.5 million within 5 months after using an Enterprise 2.0 social networking platform to connect their 2,700 employees.

• In this specific case, the social networking platform coexists with Microsoft Sharepoint, which is utilized for more formal structured workflows.

• Transunion estimates the platform can deliver an estimated $5 to $8 million in total savings this calendar year for an outlay that is a tiny fraction of that amount

• $US50K total expenditures was reported by the CEO, resulting in an extremely impressive 50x return on investment .

Why connectivity and community tools are key to succeed

• The general information worker spends more than 20% of his time searching for the right information. Having the right information at their fingertips will reduce that time, and improve productivity. The right decisions can be made if all the information that is needed is at the decisions maker disposal.

– Connect people (connect people to purpose)– Be able to find the right experts within the organisation (connect people to the right

people)– Find local experts that can assist in tailoring a common approach to a local situation.– Capture and share experience and knowledge from implementation in one country and

use it for implementations that will follow in other countries (connect people to the right information).

– Facilitate formal and informal learning: 80% of what people learn is learned on the job and via networking (informal).

• An enterprise community platform can enable this.

Strategic Uses• Cost Reduction: Increasing innovation and agility can be effectively addressed with the intelligent use of

appropriate Enterprise 2.0 tools and technologies: this will have a significant impact on reducing expenses in structured information while greatly increasing efficiencies around unstructured information amongst knowledge workers.

• Agility: While foundational structured IT continues to play the role of backbone of most business units, it will not be possible to achieve the target operating model of services and sub services using a traditional, more inflexible approach exclusively.

• Unified Business Culture: Seeing the various services as bricks, the unstructured interoperability can be seen as the mortar or cement that binds the various regional units closer together.

• Alignment: The focus on people needs to capitalize on innovative uses of enterprise 2.0 to draw employees closer together and align objectives with services and subservices where needed.

• Ease of Adoption: Low entry barrier way to engage the workforce and have positive bi-directional communication on the objectives, progress and needs of the program.

• Rapid Start: A strong way to stimulate sharing of expertise and knowledge in the region that exceeds country borders

• Leverage of New Technology: Lightweight integration to help secure knowledge about new technologies, such as business process management tools and middleware, more efficiently and between many different IT staff. This will strongly drive enthusiasm and a feeling to contribute and work together.

• Cost Effective: Low cost implementation and low entrance fee. • Silo Reduction: Integration with back-end knowledge and content management repositories, such as Sharepoint,

web-based GUI systems and other internal sources. This should ensure efficient collection, consolidation and sharing of knowledge and expertise which should then stimulate people to read, learn and change.

Business Case• Direct productivity gains• Regional growth• Cost savings• Low cost implementation and low entrance fee.• Average Reported ROI: 10%-40% (first year only, levels off 2nd+)• Estimated ROI Ceiling: 15% (Where applied)• Cautionary Note: Aberdeen Group Suggests As Little As 1%

• Costs per Employee: +/- 20-40 EUR

• Most cost are community management, integration, customization, and management:

Enterprise 2.0 Program Cost Component Proportion

Tools (Licenses) 0.1

Integration, Customization, Security, Operations 0.3

Community Management 0.3

IT and Business Steering Overhead 0.1

Program Management and Metrics 0.2

Risks of not adopting a formal approach to Enterprise 2.0 methods and technologies:

• Continued fragmentation and the development of parochial new silos of tools, often with informal and inconsistent use of Enterprise 2.0 technologies

• Lack of effective centralization and unification of workers and efforts at regional units

• Expensive updates and integrations of enterprise class technology to provide services more agile, flexible and inexpensive Enterprise 2.0 technologies are more effective at providing

• No formal role for Enterprise 2.0 in the target operating model• No central platform for development, launching, and managing

enterprise-wide initiatives• Electronically Stored Information siloed and inaccessible; findability

an increasing problem

Discussion

What can we do for you?

Social productivity at work

Business opportunity• Additionele business ingang, concernbreed: Communicatie, HRM,

Business Development, CIO/IT Management, ………

• Tussenoplossing voor klanten die nog niet naar SP2010 willen

• Business generator voor additioneel werk:– Infrastructuur– Custom Development

• Applicatie management• Integration management

– Consultancy• Community Management• Content Management• Implementatie Management

• Propositie voor klanten: 3 maanden uitproberen, daarna license fee per gebruiker per maand

• Kickbackfee voor Partner op jaarlijks vooruit te betalen license fee

Nexocial services• Co-selling

– Dmv online demo of– Invliegen van Hugo vanuit China (onkosten worden doorberekend)

• Level 200 training dmv online demonstraties voor Partner

• 2e en 3e lijns Support

• Mogelijke aanvulling/ondersteuning vanuit Nexocial:– Infrastructuur– Custom Development

• Web 2.0 Applicatie ontwikkeling• CRM/ERP integratie

– Consultancy• Community Management• Content Management• Implementatie Management

ContactNexocial

Laan van Vredenoord 25 2289 DA Rijswijk Gebouw POSEIDON+31(0)70 390 12 17 www.nexocial.com

Jaap van Raalte – jaap.vanraalte@nexocial.com +31 647 180 872