Web 2.0 within an organisation is not cheap

Posted by Sean Lew on Friday, 6 November, 2009 under Blue Sky Thinking, Collaboration, Enterprise 2.0, Web 2.0 |

When I first started researching Web 2.0 and Enterprise 2.0, I had the impression that its going to be really easy to implement a technology platform that can help enable Web 2.0 and Enterprise 2.0 within an organisation. I was wrong.

As I discussed in my previous post, in every collaboration instance, the returns on collaboration must be greater than opportunity costs + collaboration costs.The cost involved in such an implementation is not just a social business software or purchasing some SaaS product online and get people to use it. I believe its more than that. In many large organisations, they do not have a central ERP, CRM, Data warehouse and so on. Enterprise 2.0 is not just about getting people to social network together or work on documents together or “tweet” each other. We need to strategically think about why we need employees to collaborate and share information.

Let me provide you with a simple case study. A large company with multiple units across the world would like to get two business units to collaborate to cross sell products to both business unit’s customers. Both business units have their own CRM and ERP systems running. A social business software was introduced hoping to achieve the benefits of Enterprise 2.0. It didn’t work. The following points were attributed to its failure:

1) Teams didn’t trust each other.
2) Performance review of teams was still focus on the individual business units. They were not judge on how effective the collaboration arrangement was
3) They didn’t had a common CRM system to track who did what to which customer. Data was inconsistent, errors were plentiful.

The above three points tells me there are three areas that needs to be targeted.
1) Change in organisational culture
2) Change in organisational performance management and structure.
3) Change in technology systems.

If you are an seasoned profession in the IT industry, you can roughly figure out that just accomplishing these three objectives will not be cheap and would take time.

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