Pretzel Logic – Enterprise 2.0

Tom Davenport (who holds the President’s Chair in Information Technology and Management at Babson College, my alma mater) has a post on Harvard Business Review where he makes the case that Knowledge Management may well have been the most palatable solution to preventing Underwear Bomber security breach that look the peace and joy out of Christmas Day, 2009.

Professor Davenport concludes:

There are, of course, some remedies to this problem. One would be a really nasty police state, with a lot of false positive detentions. Another would be an international data management agency. A third would be lots more money and intrusiveness spent on airport searches, behavioral screening, etc., a la Israel and El Al. All seem somewhat unlikely.

Perhaps the only palatable remedy would be an intelligence community that views high-quality information and knowledge management as its primary job. If I were Barack Obama, that’s the approach I would be viewing as the real solution to the "connect the dots" problem.

I’d contend that, in this case, knowledge was too managed. And that’s the crux of the problem – too much general purpose management of data, silos, content artifacts. And too little context around discrete tasks that in actuality is what should have been manage -Where data, content and people would wrap around the task to solve it.

There’s plenty of analysis on how the billions spent on information sharing post 9/11 failed. The New York Times writes:

Some government officials blamed the National Counterterrorism Center, created in 2004 to foster intelligence sharing and to serve as a clearinghouse for terrorism threats, as failing to piece together information about an impending attack.

Others defended the center, saying that analysts there did not have enough information at their disposal to prompt a broad investigation into Mr. Abdulmutallab. They pointed the finger at the C.I.A., which in November compiled biographical data about Mr. Abdulmutallab — including his plans to study Islamic law in Yemen — but did not broadly share the information with other security agencies.

KM is hardly the place to start to wrestle this challenge. The problem with KM is that it’s often (not always) measured by somewhat nebulous yardsticks such as amount of shared and reusable content, amount of contribution, lowered email use and number of docs stored on the network. All of this is done in closed networks. As a result, just like we see in the enterprise and its use of Content Management Systems, the government also suffers from ‘silo-ization’, poor findability, and poor analytics.  The fact is, no amount of closed loop information sharing is enough of an air tight strategy to prevent intelligence from falling through the cracks. There’s too many systems in place to let computer based intelligence automatically throw up red flags every single time.

The solution lies in putting people at the core of this difficult problem. The Social Computing Frameworks that we use, in contrast, consider the concept of ‘closed’ to be an exception rather than the rule. This allows those responsible to take ownership of the task but other unknown “experts” get to watch the flow and participate where they can enrichen the quality of the outcome or even better, as in this case, raise a big red flag. Once clear unified objectives are set across agencies, open up the execution so that the best known and unknown minds can chime in.

Whether Social Computing or traditional KM, the larger problem is with lack of objective setting to getting the right information to the right people. It’s about setting the right objectives upfront at the highest levels and identifying which of these objectives can in fact be addressed by information management solutions and frankly, which can’t. And whether the right incentive structures are in place for individuals and groups to collaborate towards a common goal. I’m willing to bet that the strategic and execution objectives laid out by the chiefs of each agency don’t line up in a way that can practically lead to a unified collaboration and intelligence discovery execution plan.

I’m afraid the crotch bomber event will result in hundreds of millions being thrown at "information/knowledge management” solutions that centers on better sharing, transparency as a strategy in and of itself,  as opposed to as an execution path towards defined strategic goals that everyone is firmly behind.

I hope I’m wrong.

Marc Benioff unveiled what he described as Salesforces’ “biggest breakthrough” – an enterprise social networking platform dubbed Chatter.

Here’s a video interview, courtesy of Dennis Howlett, that provides insight into the drivers, challenges and opportunities for moving to more open constructs in the workplace, as Salesforce sees it:

VentureBeat has a straightforward run down of the proposed feature list. Some other good commentary as well:

Jeremiah Owyang chimes in with what, I sense, is on the minds of many right now:

Trying to grapple with understanding Salesforce’s Chatter, is it something *new* or just a *me too*? #DF09

I’ve seen all of these Chatter features (at least in parts) from Jive, Telligent, Lithium(client), Socialtext(client), Yammer, #DF09

Dennis Howlett’s skeptical:

Salesforce.com may well be the poster child for hip and cool apps that bring the consumer experience to the enterprise but it will likely find CXO’s baulk at the idea of Chatter as a useful addition to their Salesforce.com environment. Only time will tell whether Salesforce.com marketers have judged this correctly.

And Michael Krigsman concludes:

Regardless of where Salesforce decides to take Chatter, the announcement demonstrates that social computing space is reaching a tipping point, which I think is great.

I’m baffled by the name of this service but on the whole, my sense is that this is a huge development for the enterprise software business, as well as a definitive stamp of validation for Enterprise 2.0 constructs and technologies. Assuming of course that Salesforce.com gets this to market as promised.

Context Built In

Chatter is different. Its got the one thing baked in that other applications don’t – context. Built in from the ground up.

Back in February of this year, I wrote about how social computing constructs can make a difference to enterprise sales organizations. Based on our work with sales and marketing organizations at leading enterprise and voice of customer (sales reps) interviews with over 900 sales reps, I laid out a simplistic illustration of what makes a sales rep tick:

• Media watching is not a sport for sales reps. Feed them the good stuff and they’ll consume it.
• Data/Intelligence extraction over collaboration. “Give to Get” doesn’t fly with most sales reps.
• Good reps know exactly which 8.75 data types help them bust quotas. No more, no less.
• In spite of the above, don’t expect them to dig for it. They’d rather use the time to cold call a lead.
• Sales reps often ignore a lot of what marketing might offer or recommend.
• They don’t personalize portals & intranets.
• They rather search than browse; they want answers, not search results. (ok, who doesn’t!)
• CRM apps often morph into reporting mechanisms that sales reps are mandated to use.
• Pre-sales engineers (in the case of High Tech) often do most of labor intensive tasks in the sales cycle (assembling proposal components, finding SMEs and references, etc).

Super impose these characteristics on the features presented in the Chatter demo and I say we have a solid start. Chatter’s got context and intent built in for the sales organization given its close out of the box linkages to Salesforce.com’s flagship CRM application. Next, the activity stream/ feed metaphor was made for the sales rep: Why? Given how they prefer to work, it 1) enables them to pluck important nuggets out of the stream that support the sales process and 2) lets the best minds wrap around a task at hand (RFP, prospect inquiry, customer support issue and the like). It won’t all just happen out of the box but the application has the potential to make it a hell of a lot easier.

Process + Social

Last week I wrote a post called “Why Process Barfs on Social”. My central point was that unless we see a social + process in context, Enterprise 2.0 won’t realize its full potential. Whilst tools certainly won’t provide the solution alone, Chatter has the capability of being the first integrated showcase where social concepts are unleashed to enrichen discrete processes (in this case, closing and keeping customers) towards established performance goals.

There’s no question that some of the most important data that sales reps need reside outside of the confines of traditional CEM and sales applications. They sit in home grown contract registries, support agreement databases, 3rd part news and social media platforms, ERP systems and very important – the minds of known and unknown colleagues. Chatters’ platform capabilities enable access to these data sources and people. This, along with the ability to collaborate around an object ( a lead, a competitor, a customer, a topic) brings process + social closer than ever before.

One Part Offence, Two Parts Defense

Despite the very convincing assault on Microsoft SharePoint by Marc, my sense is that this is more defense than offence on Salesforces.com’s part. Taking on the installed base of SharePoint may be a longer term goal but for now SalesForce needs to make its existing applications useful to sales reps and move away from being a glorified reporting application for operational bean counters or (as Scott Schnaars suggests), a contact management system. Not to mention the rising interest in so-called “social CRM” services. Chatter gives reps a reason to stay within Salesforce.com a little while longer and amps up the sustained utility of the service.

Distribution

Whilst this is validation around the concept of social computing in the enterprise and pureplay vendors will see a rising tide effect, there’s a downside as well. Its tempting to say that pureplay vendors had these capabilities for a while and can hold their own. The reality is that feature shoot outs play but one role in enterprise purchase decision making. Salesforce brings its powerful distribution channel, out of the box process integration, and a now social marketplace in AppExchange – together providing a very compelling reason for enterprises to consider this as a company-wide social networking platform.

Customer Centricity

This, in my opinion, was the biggest lost opportunity in the launch of this service.

One of the reasons for Bloomberg LPs ungodly success is that every single employee’s bonus is tied to new sales and renewals. IT, Product, Marketing, Support, everyone. That means everyone prioritizes their work around revenue. That’s extremely difficult to do especially since only a chosen few at most companies have any control or even insight into the sales process. Now, with Chatter being seeded in the nucleus of managing customer relationships in the enterprise (i.e. CRM), there’s the opportunity, for the first time, to provide a universal lens into the process of courting, converting and servicing a customer. Everyone can see the sales and support process live and chime in with expertise, helping cradle the process to revenue and customer satisfaction. The big value proposition of the enterprise social web is improved customer centricity and there’s a unique opportunity for Chatter to make this a reality. I wish Salesforce had seized this opportunity to present a model that can transform how organizations and their partner ecosystems can be structured around the customer.

$50 bucks a user per month? Ouch!

Yes it’s a lot. But what strikes me as odd was that Salesforce did not offer some sort of basic/read-only access to Chatter for non Salesforce users at a given customer. What better way for others to see where their input is crucial to an ongoing project, RFP, discussion etc and make the case for purchasing that additional seat? That’s free marketing and a straight forward conversion strategy for Salesforce to move laterally, out side of sales and marketing. It’s still early so I won’t be surprised to see something similar to this.

Closing Thoughts

All up, this is excellent news for the Enterprise 2.0 space and I’m thrilled that a process facilitator such as Salesforce has dipped its toes in the social computing arena. Its about time Enterprise 2.0 grew up and started talking business. And Salesforce is one of the few companies that can lead that charge. It’s a separate post but pure plays will gain more than they will loose with increased awareness of the business association of social computing concepts. Good for the entire ecosystem.

For a detailed look at Chatter, see Marc Benioffs (very long) interview at TechCrunch’s Realtime Crunch Up Event.

I’m bullish.

Update: Great analysis on the infrastructure view point by Esteban Kolsky.

I’m at the KMWorld Conference in San Jose for a couple of hours this afternoon, sitting in on the Intranet 2.0 session with Toby Ward. Toby’s got some good pointers on the value and current state of Intranet 2.0. Many findings from his firms Intranet 2.0 research report as well.

I’ve tried to capture some of these here for your reading pleasure:

• 2.0 brings structure to informal conversations
• Nearly 70% of all internet users use social networks
• 30% of employees under the age of 25 would leave their job if the company banned tools such as Facebook
• British Telecom has 900,000+ Wiki Pages
• Reason for using Enterprise 2.0 tools: 77% for collaboration; 49% for knowledge management, only 19% for cost savings
• Satisfaction levels are low in the Exec Suite for (38% are not satisfied)
• Barriers to success: Minimal Exec Support (33%), Lack of a Business Case (30%), No IT Support (31%)
• Sabre’s Intranet Social Network is built on Ruby on Rails for less than $10k

    – 60% of questions answered within one hour of posting

    – Each question posted received an average of 9 answers

    – 65% of employees joined within the first 2 months

    – More than 90% participation rate after 1 year

    – Estimated $500K savings in year one

• Verizon using Present.ly, has activity feeds internally, alerts
• 1/3 of IT projects exceed budgets and schedules by almost 100% in SMB companies (Gartner)
• “Intranet will always be the poor cousin of external facing properties”

Toby showcased some solid intranet examples from leading organizations such as Verizon, Sabre and Coca Cola using everything from homegrown tools built on Ruby and Websphere to SharePoint. No usual suspects from the Enterprise 2.0 software category came up.