Enterprise 2.0 Summit 2010 – Day 1

Dr. Frank Schönefeld, Chief Technology Officer, T-Systems Multimedia Solutions GmbH, GermanyHere we are at the opening of the Enterprise 2.0 Summit 2010 in Frankfurt. I will try to cover most of the sessions that I’ll be following during today and tomorrow.

After the opening speeches, the conference will have two tracks: one addressing specific project issues/aspects and a second one delivered through case studies and focused on success stories. The final part of the conference will feature some workshop and a final keynote.

Manager 2.0 – Key Elements of Leadership Concepts in an Enterprise 2.0

  • Richard Collin – Executive Partner, NextModernity and Professor & Director of the “Institut de l’Entreprise 2.0 Grenoble Ecole de Management” France
  • Rolf Schmidt-Holtz – CEO, SONY Music Entertainment USA

Richard Collin on the stage:

  • Towards the leader 2.0
  • Enterprise 2.0 has not having to do with Web 2.0. Enterprise 2.0 is a new model of Enterprise 2.0, not the introduction of new social technologies into the Enterprise. So we need to reflect on this
  • Let’s start from some management books: The Future of Management (in French was translated The End of Management), The Rules of Management (People can management themselves if you let them), Here comes everybody (Self organization when the cost of coordination gets smaller), The Changing Nature of Leadership (shifting competition bases, drive for innovation, need for reinvention, greator collaboration)
  • These are only words. So what? What is really happening?
  • The history shows that value creation was based on owing terrority. I was a good leader because I was a genius in the army, creating value through violence. Over time a new space, the economy of transactions, has been created to exchange value. You were good if you could build a company that produces richness and capital. But there’s another space, the one of information. We are in the economy of information (the new energy). Information can be sold but I still keep the value. We are in position to manage another transition to cope with a new model, different than the bottom line.
  • We need to invent and anticipate this new world because we it is changing the composition of the output (look for diagram here). We are still thinking in the industrial age but that’s only a 100 yrs story. Information is the new theme.
  • The world has gone through tree phases: Invention of the writing, Invention of book, Internet. Every time is faster
  • We are moving from imposed authority to freedom to initiate, from predictable tasks (repetition) to unpredictable tasks (creativity)
  • Stowe Boys: the rise of networks is the end of process. The process should be secondary to the strategic principles of the firm
  • Competitiveness. To values is moving to services
  • The only way to meet the unpredictable change is to match it with an unpredictable continuous change of our own
  • We don’t know how the world will look tomorrow. Let’s inventing it with Enterprise 2.0
  • The value chain is changing through conversations. The enterprise 2.0 is dying as the model we have in mind. The ecosystem will survive as a group of people willing to achieve something together. The intranet is dead
  • We are just at the beginning also with technology
  • We are taking off folks. Ownership is dead: I need to use a car not to own one.
  • We need to invent the planet we want to reach. If the Enterprise is changed, leadership is requested to change
  • Now a leader can be defined through the ability to get others to be connected willingly. People are replacing trust in authorities with trust in each other
  • Leader for the Enterprise 2.0: towards the knowledge entrepreneurs and farmers of trust
  • We are on the front-end of the change. You never change things by fighting existing reality. To change something, build a new model that people can trust, walking the talk, being transparent, to imagine, to recognize & to give, to update and be updated, to dare (risk has to be taken), to be connected, to focus on IT usage not tools, to stimulate, to coach, to have solidarity and humility

Rolf Schmidt-Holtz CEO of Sony bmg

  • You can create huge value unlocking creativity and communicating
  • Most successful companies are about great leadership and open communication
  • What is great leadership: there’s a link between being a great leader and having success, but to do that you have to be a good communicator, being able to talk to people, listening instead of broadcasting
  • CEOs and the boards don’t know anything anymore. Too far from people, colleague, marketing
  • It’s a nightmare because you don’t know enough about your people and you cannot see the future in three years
  • Not the most strongest species survice, not the smarter but the most adaptable
  • Great ideas very rarely come out of big organizations (the flight is not an incremental improvement over railways. Two people did that. The same with cars. The same for Google, Facebook). It’s about people in garage talking to each other
  • People who have dynamic, constant dialogue are our feature
  • How to bring these ideas into the company? Only a few genius can come up with great ideas without dialogue
  • Steven Johnson: where good ideas come from? (video on YouTube). From an environmental perspective there are recurring patterns to create innovation. Slow hunch (most ideas take time) because great ideas usually comes from clashes of smaller hunches. Great ideas come by sharing
  • If you run a company and have no competence you are in big shit. You find out that you have fantastic people, mostly not at level one. He travelled 30 countries to grab ideas from every countries to come out with a picture of the company. Sony was dying. They implemented a constant dialogue to save the company. Bring people together to understand what to do. They turned the company upside down in 2yr from 1.5% to 12% of the market, only by sharing ideas, from big losses to huge gains
  • A company is nothing else than a social organization. So the communication tool should be a social network
  • If you use all the new tools you can bring a lot of value and a lot of fun
  • Excellent people need to be treated excellently and it means giving them space, freedom
  • Oxford, Harvard, Princeton are useless. Most leaders don’t know anything about their people and about life. How to understand, motivate people. Nobody is teaching this at university. Teach how to embrace people

Enterprise 2.0. State-of-the-art, objectives, consequences & critical success factors

  • Prof. Dr. Thorsten Petry, Professor for Organization & HRM, Wiesbaden Business School, Germany
  • Cécile Demailly, Founder&Executive Consultant, Early Strategie, France

The session discusses the results of two research reports from France and Germany. First on the stage Dr. Thorsten Petry:

  • Social media is already dominating the internet
  • Enterprise 2.0 is the internal use of social media for efficiency and effectiveness
  • It’s mostly about organizational & cultural change. A new communication paradigm
  • The Study composition: 281 participants (companies) from different industry sectors in Germany, Switzerland & Austria, 57% with international offices, 56% with more than 500 employees to look for the understanding of  Enterprise 2.0, the State of the Art, the Objectives, Organizational & cultural consequences, critical success factors
  • Comprehension: 14% never heard of it, 31% understand the term, 32%….. 80% of use of social media technologies in companies and 60% social media technologies communication to stakeholders. But if you choose only those that understand E20 cultural change as relevant 74%-82%
  • The majority of participants is already working on Enterprise 2.0. 16% planning, 29% not systematically, 17% systematically
  • There is a boom since 2008 from 17 (6%) companies before 2006 to 175 companies in Spring 2010 (it was 157 companies and 56% in 2009). Companies that started before 2006 are piooners, before 2008 early followers, 2010 large majority. Companies that work on E20 since 2007 or earlier, recognize culture as an essential factor
  • The stage of social media in business has not reached the stage of development of its use in private life. i.e Communication in social networks (57% vs 20%), Wikis and forums (30% vs 18%), collective work with collaboration software (25% vs 16%), virtual networking (75% vs 52%). So there is a gap and people are willing to use social media
  • Why are companies doing Enterprise 2.0? Providing implicit knowledge (51%) following Lewis E.Platt ex CEO of HP “If HP knew what HP knows iwe would be 3 times as profitable”, increase ability for innovation (39%), improvement of storage of knowledge (49%) while motivation of employees is only 14%
  • What do companies expect to happen as a consequence of E20 initiatives? More open communcation (63%), more open access to information (53%), more coooperation (48%), improved innovation culture (41%) while flatter hierarchy is only at 13%, more cooperative leadership on 11%, more participation of people in decision making only 10%. Flatter hierarchy is a reality already only in 5% of the responses. Also innovation culture is a reality only in 13% of cases (while 41% aspire to it)
  • Critical success factors: 3 major factors are exemplification of openness or leadership 2.0 (management has to give the example as mixed top-down and bottom-up implementation), clear responsibility from the corporate management, maintainance of control of competitive intelligence.

Cécile Demailly  talka about Toward Enterprise 2.0. Making the change in corporation research:

  • Study on 50 multinational companies
  • 60% are people are core evangelist team, 40% are involve in the deployment of change, mostly managers
  • Findings and critical success factors:
    • Give it sense. Benefits of Enterprise 2.0, ROI, need for evolution and adaptation are not enough. At organizational level you must support the strategic vision, at individual level it must help daily work, at management level must help create the new management level. 32% only intangible ROI
    • Make it balanced. Change facilitation need to balance people, knowledge and technology. You need a balanced change in leadership with collab between IT, HR and Communication. Reconcile top-down and bottom up adoption to build change effectiveness. Employee need help to understand how to participate and change their work balance in E20
    • Sustain the change. 4 faces Awakening to understanding corporate culture and use that to guide the transformation, Envisioning change governance and engage early adopters. Re-architecturing to integrate and foster employee adoption discussing with the users. Leveraging & Stretching to make it sustainable and mature.

Driving Enterprise 2.0 Maturity

  • Dr. Frank Schönefeld, Chief Technology Officer, T-Systems Multimedia Solutions GmbH, Germany
  • Jamil Ouaj, Communications Manager, Deutsche Bank AG, Germany

Frank Schonefeld presents it’s Enterprise 2.0 Maturity Model:

  • At which level of maturity may you be? Stages towards enterprise 2.0: traditional enterprise, social technologies using (you are still at the pilots and technology level), social technologies integrated (Transformation of collaboration level), participative enterprise (Adaptation of the entire enterprise level), the open enterprise (innovation of value chain and business models when you involve external entities), connected enterprise (customer centricity for growth opportunities and connection with the entire society)
  • You have 4 dimensions to look at the process of Enterprise 2.0 adoption:
    • usage in working processes (WP additional, intertwined with WP, new defined WP, integrated for all WPs, emergent Wps)
    • technology management (ad hoc approach, project driven approach, strategy driven approach, strategy driven + integration, strategy driven + integration + use cases)
    • cultural and organizational development (isolating, identity supporting, participative, transparent, flow culture)
    • radius of usage of social technologies (in team, bridging teams, enterprise wide, customer and partner, sociosphere)
  • You can use this model to assess your own company

Jamil Ouaj from Deutsche Bank

They have dbWiki,DbBlog, dbForum, dbClub (profiles and expertise location), the wire (instant messaging), dbTag (tagging & bookmarking), EVE (Enterprise Video Engine). dbWiki integrated with people behaviors:

  • 26,800 pages, 5000 active users, 8900+ uploaded files, 109,300 page edits, 4.07 average edits per page, 65 active users in the last 7 days, 13M+ total views
  • Most viewed pages are abbreviations (1,5M), glossary (340K)
  • Maturity: New forms of governance? Still bottom-up approach? Most likely a hybrid approach, need oriented, more divisional, project specific. They are in the middle of Frank’s model but with that kind of tendencies
  • Processes are changing

Exploring Adoption Archetypes

  • Dr. Alexander Richter, Research Associate, Cooperation Systems Center Munich (CSCM), Germany
  • Dr. Alexander Stocker, Project Manager & Business Developer, Joanneum Research, Austria
  • Luis Suarez, Social Computing evangelist, IBM Software Group, Netherland
  • Lee Bryant, Founder and Director,Headshift Ltd

First a speech about Exploration and Promotion by Dr.Alexander Richter and Dr.Alexander Stocker. Their research showed two archetypes:

  • Exploration: using the technology while continuously identifying feasible usage scenarios. Experimentation in the process where practices gradually co-evolve and tools don’t’ force a particular kind of use
  • Promotion: coordinated communication and targeted training of IT-services with focus on certain mode of use. Clear goal, expectation and communication. Tools are selected according to the business case. Change management through early integration of stakeholders
  • Most cases exposes both Exploration and Promotion

Luis Suarez on the stage next:

  • Will use a study written by Rawn Shah (Nurtuting BlueIQ: Enterprise 2.0 Adoption in IBM – http://bitl.ly/blueiq)
  • BlueIQ is the internal adoption program in a Promotion approach. The objective is achieving business value being more efficient in a 400K people company. Initial target was client facing teams. The program now is open to everyone in the rest of the company, from 16K people to 400K. The mission so is to address the market while being confortable with the tools
  • Program elements: Break down barriers, formalize practical techniques, tap into the spirit of voluntarism, integrate to workflows, enable leadership by example. clarify alternative methods and tools
  • The program addresses individuals (bottom-up) with one to one coaching (8 ppl, 1500+ ambassadors on 400k employees), teams with a targeted outreach to specific roles, communities as the biggest accelerator (also a community of communities leader), executives
  • 40K managers with only small numbers of them (<1000) using social software. So a long way to go
  • Stages of adoption: see value, recognize biz, all together now, workflows integration, shift perceptive. Ibm between 3 and 4 with strong differences due to pockets in large corporations. Nobody is at stage 5
  • Guidelines and governance, adoption, measurement, infrastructure need to be addressed in different ways at different phases
  • Road ahead: organizational change (change habits and culture shift are happening and it takes time), measurement (indicators of activity vs indicators of business & success), enterprise workflows (siloes are still there)

This post is also available in: Italian

Emanuele Quintarelli

Social media enthusiast and Social Enterprise Leader in EY. Research, reports and reflections about the introduction of web 2.0 inside the enterprise.

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