I just got back from Lotusphere after waiting out the sixth blizzard of this "snowmaggedon" Boston winter. The venerable Notes developer and administrator conference received an injection of business relevance on Monday when Lotus GM Alistair Rennie announced IBM's Social Business strategy. The conference motto was "Get Social. Do Business." In a private conversation, Rennie called Monday "day one" for social business.
The importance of Rennie's announcement was reinforced by the IBM brand presence and by presentations from IBM senior vice president Mike Rhodin and IBM senior vice president of marketing and communications, Jon Iwata. I believe that for IBM, social business is a strategy on par with its e-business strategy in importance and transformational potential. This will be clearer to everybody once IBM's advertising and product engines get cranking.
As for us, well, we're an easy sell on the strategy's transformational potential because what IBM calls social business, we call Empowered, and we wrote a book about it. Here are some charts to help make the connections clear.
The first picture is a diagram that captures the technology dynamic of the empowered era and indicates the organizational response that will be required. In a nutshell, companies will need to respond to the demands and expectations of empowered customers by:
Empowering employees to respond to the needs of empowered customers. (This is what our book Empowered is about.)
Listening to the market conversation using social listening platforms. (That's the subject of our book, Groundswell.)
It's important sometimes to step back from the obvious trends and look at things that lie just beyond the light. So in addition to the clear trends in play: mobilizing the entire collaboration toolkit, moving collaboration services to the cloud (often in support of mobile work); and consolidating collaboration workloads onto a full-featured collaboration platform, here are six counterintuitive trends for 2011 (for more detail and an analysis of what content & collaboration professionals should do, please read the full report available to Forrester clients or by credit card):
Consumerization gets board-level approval. Consumerization is inevitable; your response is not. In 2011, tackle this head on. (And read our book, Empowered, while you're at it -- it has a recipe for business success in the empowered era, a world in which customers and employees have power.)
The email inbox gets even more important. I know the established wisdom is for email to get less relevant as Gen Y tweets their way to business collaboration. But come on, look at all the drivers of email: feeds from social media, universal, pervasive on any device. Email's here to stay. But it's time to reinvent the inbox. IBM and Google are leading this charge.
The cloud cements its role as the place for collaboration innovation. The cloud is better for mobile, telework, and distributed organizations. And cloud collaboration services will get better faster than on-premise alternatives. Full stop. The math isn't hard to do. A quarterly product release cycle beats four-year upgrade cycles and every time.
What will business and technology be like in 2020 – and what’s IT’s place in this new world? This is the subject of a teleconference that James Staten and I held for our clients yesterday and also the subject of an upcoming Forrester report.
In this teleconference, we painted a picture of the impact of business-ready, self-service technology, a tech-savvy and self-sufficient workforce, and a business world in which today’s emerging economies dwarf the established ones, bringing a billion new consumers with a radically different view of products and services, as well as in which surging resource costs – especially energy costs – crush today’s global business models.
In the past, when new waves of technology swept into our businesses – everything from the 1980s’ PCs to today’s empowered technologies – the reaction was the swinging pendulum of “decentralized/embedded IT” followed by “centralized/industrialized IT.” These tired old reactions won’t work in the world 2020. Instead, businesses must move to a model we call Empowered BT.
Empowered BT empowers business to pursue opportunities at the edge and the grassroots – but to balance this empowerment with enterprise concerns. Key to this balance is the interplay between four new “meta roles” – visionaries, consultants, integrators, and sustainability experts – combined with a new operating model based on guidelines, mentoring, and inspection. Also key is IT changing from a mindset in which it needs to control technology to one in which it embraces business ownership of technology decisions.
The teleconference chat window was busy as James and I presented our research. Here are the questions we weren’t able to answer due to time.
Forrester’s recent book, Empowered, describes the type of technology-based innovation by frontline employees that can cause nightmares for enterprise architects. New tools for business innovation are readily available to anyone, ranging from cloud computing and mobile apps to social networks, scripting languages, and mashups. Faced with long IT backlogs and high IT costs, frontline employees are building their own solutions to push business forward.
What worries architects is that (1) solutions built with these new tools — with little or no vetting — are being hooked to enterprise systems and data, opening potentially big risks to reliability and security, and (2) the siloed, quick-hit nature of these solutions will drive up ongoing costs of maintenance and support. Traditionally, architects use enterprise standards as their primary tool to ensure the quality, efficiency, and security of their organization’s technology base. However, when applied in the typical “lockdown” fashion, standards can stifle innovation — often because vetting a new technology takes longer than the perceived window of business opportunity.
To deal with these conflicting pressures, architects must forge a new equation between responsiveness and technology control. The business value of responsiveness, combined with the typically limited size of enterprise architecture teams, means that most organizations cannot wait for architects to vet every possible new technology. Thus, you must find ways to use architecture to navigate the tension between the business value of responsiveness and the business value of a high-quality technology base. The key is to build innovation zones into your architecture; Forrester defines these as:
Customers already use social technologies to wrest power away from large corporations. Now employees are adapting social technologies in pursuit of innovations to support these empowered customers; Forrester calls these employees HEROes (highly empowered and resourceful operatives). By designing social technologies as part of their Innovation Networks, CIOs and their IT teams help establish new Social Innovation Networks — innovation ecosystems employing social technologies to enhance HEROes' innovations. These Social Innovation Networks help drive faster, more effective innovation across the enterprise. And CIOs must rise to the challenge of nurturing and developing these networks while structuring their IT teams to fully support them.
We inhabit an age in which empowering technology is readily available first to individuals, not institutions. Consumers and employees will always get the new good stuff first. And it will always be so. The economics of technology investment seal that deal. The consumer market is bigger and easier to get started in.
In this empowered era, smart mobile devices, social technology, pervasive video, and cloud computing are the anchor tenants of the new technology platform. These technologies are available to every consumer and employee, even yours. The question is what to do about it? Two things:
Because customers can hijack your brand (consumers in the US make 500 billion impressions on each other online every year), you have to use empower your customers with better information than they can get from their networks. You have to honor your customers as a marketing channel.
Because employees have ready access to technology to improve their working lives, you have to give employees permission -- and protection -- to adopt these technologies. You have to honor employees' use of consumer technology as a source of incremental and sometimes breakthrough innovation.
Many of my colleagues in the eBusiness & Channel Strategy team at Forrester have been working extremely hard for the past few weeks, preparing for next week's Consumer Forum, which is taking place at the Hilton in Chicago on October 28th and 29th. Among my colleagues who are presenting their latest research are Brian Walker, Diane Clarkson and Zia Daniell Wigder, while Carrie Johnson is hosting the entire event. I'm sure it will be two days well spent.
As you probably know by now, I really enjoy engaging with all of you through social media like this blog or via Twitter. Of course, I like doing research and writing reports, but that's very much an academic exercise. The blog and Twitter are about direct communication and instant feedback (and, in a way, instant gratification). However, these are still all virtual contacts. So, I thought I would share with you where you can find me, and my team, in the next couple of months so that you can meet us in person.
I will be speaking at Forrester’s upcoming Consumer Forum in Chicago, October 28-29, and our Marketing & Strategy Forum EMEA in London, November 18-19. The theme of Forrester’s Consumer Forum 2010 is “Unleash Your Organization To Serve Empowered Customers.” Lots of the content will be related to the new book Empowered, by Forrester analysts Josh Bernoff and Ted Schadler.
The market research track will show why the ability to understand customers’ needs and wants from several data sources is the key to supporting the organization with actionable insights. It will include the following presentations:
“If The Company Only Knew What The Company Knows: How The Introduction Of A Knowledge Center Can Empower Market Research Professionals,” Reineke Reitsma.
“Trends And Best Practices In Social Market Research,” Tamara Barber.
“Understand Influential Young Online Consumers: A Global Perspective,” Jacqueline Anderson.
Just when you were getting your mind around Social Computing, Forrester has concluded that Social Computing is a steppingstone along the path to the empowered era. At least that’s one of the findings you’ll discover in the new book Empowered, co-authored by Groundswell author Josh Bernoff and Ted Schadler, published today by Harvard Business Review Press.
It’s not that Social Computing has ceased to be relevant, far from it — it’s just that we are now evolving rapidly into a new era of commerce, the empowered era. A perfect storm of evolving technologies — smart mobile devices, pervasive video, cloud computing, and social technology — has kick-started this new era to empower customers and employees. Empowered is more than a claim to a new technology paradigm. In the empowered era, customers and employees are tapping into technology in new ways and learning how to deliver value (and demand service) with game-changing potential. Forrester identifies these innovative employees as HEROes: highly empowered and resourceful operatives.
From an IT perspective, CIOs are firmly in the driver's seat at one of the three corners of what Forrester defines as the HERO compact. In this role CIOs must build an empowered IT strategy to pursue business opportunities and solve business and customer problems. CIOs and the IT team can find HEROes, help HEROes, and be HEROes.
There were certainly some compelling arguments made in favor of this approach — not the least being that it's a highly cost-effective way to provide improved services to taxpayers who ultimately foot the bill for government IT efforts. As an investor in government IT (I pay taxes), I'm fully supportive of anything that improves services and reduces costs!
One of the most memorable quotes came early on from Carl Malamoud when, in his opening keynote, he suggested, "If we can put a man on the moon, surely we can launch the Library of Congress into cyberspace." (See his keynote below).