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The value of enterprise 2.0

Tuesday, 13 May, 2008
by Sean Lew

· 3 Comments-->

Just an extension of my previous post on What is Enterprise 2.0’s measurable value?

Since my definition of Enterprise 2.0 is Communication, Sharing, Collaboration and Collective Intelligence, I will be looking at the value of each component of the definition. Even though,

“Enterprise 2.0 is the use of emergent social software platforms or between companies and their partners or customers.“ (Andrew McAffee, Harvard)

the application of such tools within organisations is not the same as Web 2.0 and organisations are seeking other benefits other than connecting people.

Now I will discuss how you can derive value from enterprise 2.0 and you can then do your own ROI if you are interested.

Communication - Enhanced communication via social networks or instant messengers or collaboration sotfware can help reduce the time spent on searching for information, perceived increase in the quality of decisions made, decreased cost of cross-geographic location communication, etc.

Sharing - I am viewing this as more of a cultural issue than a technical one. After all, sharing in a ideal world is never a bad thing. However, I can’t think of a way to calculate the value of sharing.

Collaboration - allows teams to work from a unified platform, contribute and discuss via a standard channel instead of emails and also capturing knowledge that has been transacted over the platform at the same time. Collaboration can also increase transparency across the project team or organisation and improve knowledge sharing. Value in this case can be calculate by the increase in productivity (depending on the way you apply the platform), increase contribution to knowledge platform thus withholding corporate identity, perceived improved communications across teams / locations and decreased cost of cross-geographic location communication.

Collective intelligence - this allows the organisation to collect more (not all) of the tacit knowledge stored in employees. The benefits of this is similar to KMS or BI. I must say that even though collective intelligence is NOT the same as KMS or BI, but i believe that the value that you can achieve is rather similar.

From the above perspective, one can actually measure value of Enterprise 2.0. Applying Enterprise 2.0 within an organisation is something that is highly customised to the culture, IT environment and business environment. If you require more details for your company or need help in implementing or reviewing the need for Enterprise 2.0 within your organisation, please feel free to leave a comment.

Tags: Collaboration · Enterprise 2.0

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3 responses so far ↓

  • 1 anthony // May 14, 2008 at 11:00 pm

    Thanks for breaking this down so succinctly …

  • 2 Aaron // May 16, 2008 at 2:53 am

    I like the inclusions you have made. Regarding value, as a person looks at these “parts”, I think the value is totally inter-relational; that is, each contributes its unique set of return, or value, which contributes to overall return - perhaps an example of the “sum of the parts being greater than the whole.”

  • 3 Sean Lew // May 16, 2008 at 9:05 am

    Aaron, I totally agree is inter-relational and the “sum of the parts being greater than the whole” would be quite right too. I guess at this point of time when the market and knowledge around this area is still quite green, taking a component approach would probably a good start and we do have to look to “adding” everything up in the near future to understand the total impact and value of Enterprise 2.0 - might be something we could work on. =)

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