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Web 2.0 artifacts in SME-networks
                 A qualitative approach towards an integrative
           conceptualization considering organizational and technical
                                  perspectives




                                                                        Nadine Lindermann
Nadine Blinn, Katrin Fäcks, Markus Nüttgens
                                                             University of Koblenz-Landau
University of Hamburg
                                                                  Computer Science Faculty
School of Business, Economics and Social Sciences
                                                                    Institute for Management
Institute for Information Systems
                                                    Universitaetsstrasse 1, D-56070 Koblenz
Von-Melle-Park 9, D-20146 Hamburg
KMU 2.0
  … the research question: Web 2.0 - an instrument
     To foster the exchange of creativity and ideas within a network of SMEs
     In order to generate innovative solutions for daily work life problems ?

                          Organizational/ Technical
                             Requirements


             Web 2.0                                  SME-Network

                                  IT-Support
  IT-Perspective                                 Organizational Perspective
                                Exchange of
                                  Creativity
                                     and
                                 Innovative
                                    Ideas


                   Collaborative Innovation Processes


                                                                                2
Overview

 Web 2.0 – Enterprise 2.0 – SME 2.0
    Bringing Web 2.0 into organizational practice
    Enterprises and SMEs with 2.0: A State of the Art
    Research question

 A concept for Web 2.0-based cooperation within SME-networks
    Use case & research design
    Results of a qualitative study
    Recommendations

 Outlook



                                                               3
Web 2.0 – Enterprise 2.0 – SME 2.0:
… Bringing Web 2.0 into organizational practice




      Web 2.0                          Enterprise 2.0               KMU 2.0 (SME 2.0)
“… a business revolution              Web 2.0 platforms used        Web 2.0 applications
[…] to the internet as                “… within companies,          targeted at the
platform … “                          or between companies          necessities of SME-
                                      and their partners and        networks
Actively participating &
                                      customers … “
communicating
Creating & sharing
content
                                                                           von Kortzfleisch et al. 2008
     McAfee 2006; Tim O’Reilly 2006                  Mc Afee 2006




                                                                                                     4
Web 2.0 – Enterprise 2.0 – SME 2.0:
… Enterprises and SMEs with 2.0: A State of the Art (1/2)


             Enterprise 2.0 – Trends:
  Enterprise 2.0 is becoming familiar - companies plan to spend more on it
  Extensive use of Web 2.0 in companies deriving business value from it
      … outside the company (e.g. improving customer service/ interaction)
      … inside the company (e.g. Managing knowledge and information flow)


                  Not all companies are using Web 2.0


Technical Aspects                           Organizational Aspects
  Dissatisfaction with existing tools            “Nature” of the company (SMEs)
  Security
  No clarity about term Web 2.0 and its
  (economical) benefits


                                           Berlecon 2008; McKinsey 2008; The Economist Intelligence Unit 2007

                                                                                                                5
Web 2.0 – Enterprise 2.0 – SME 2.0:
… Enterprises and SMEs with 2.0: A State of the Art (2/2)


            Enterprise 2.0 within SMEs that are characterized by

  The personality of the SME’s owners
  “A real small firm has two arms, two legs and a giant ego”
  A short-term oriented strategic horizon (survival/ reactive strategy)
                                     Bellmann and Gerster 2006, Levy and Powell 2005, Street and Cammeron 2007




       ... that impact the implementation and usage of IT within SMEs


  using Web 2.0 within SMEs remains exception:
  Web 2.0 has no business relevance and is considered with scepticism
                                                 De Saulles 2008; Netzwerk elektronischer Geschäftsverkehr 2008




                                                                                                                  6
Web 2.0 – Enterprise 2.0 – SME 2.0:
… Research question


           … what does that mean for KMU 2.0?
  Successfully implementation of Web 2.0 software depends on
      Organizational and cultural aspects (80 %)
      Technical aspects (20 %)
                                                                     Raabe 2007



  KMU 2.0 – requires an integrative concept for the social software
  development process considering
      The characteristics and challenges of SME-networks
      The technical requirements for the implementation of Web 2.0

      qualitative design science approach towards an integrative
      conceptualization of Web 2.0 artifacts in SME-networks



                                                                                  7
Overview

 Web 2.0 – Enterprise 2.0 – SME 2.0
    Bringing Web 2.0 into organizational practice
    Enterprises and SMEs with 2.0: A State of the Art
    Research question

 A concept for Web 2.0-based cooperation within SME-networks
    Use case & research design
    Results of a qualitative study
    Recommendations

 Summary and conclusion



                                                               8
A concept for Web 2.0-based cooperation within SME-networks:
… Use case and research design (1/2)

… the conceptualization of Web 2.0 artifacts in SME-networks
      Requires to gather organizational & technical requirements


          Requirements collected by means of a qualitative study
     within a specific SME-network: WirtschaftsForum Neuwied e.V.


                           Regional network of SMEs in the north of
                           Rhineland-Palatinate, Germany
                           100 SMEs from industry and business sector
                           Heterogeneous in structure
                           Focus on non-competitive activities




                                                                        9
A concept for Web 2.0-based cooperation within SME-networks:
… Use case and research design (2/2)

   Methodical approach
      Sample (n=6):
          Executives of member companies
          Companies represent the six project’s value partners
      Data acquisition:
          Guided interviews
          Subdivision into modules :

            1    General information about SMEs and their collaboration within network

            2    Usage of internet-based applications

            3    Personal & professional experience with Web 2.0

            4    Requirements for implementation and acceptance of Web 2.0




                                                                                         10
A concept for Web 2.0-based cooperation within SME-networks:
… Results of the qualitative study (1/2)

  The use of Web 2.0 remains exception – BUT

  Web 2.0 is perceived as instrument to optimize cooperation:

                                       No possibilities to represent
             No information about
                                       own company
             member structure:
                  Branches
                                       No possibilities to exchange
                  Business areas
                                       services
                  Provided Services



                             Web 2.0 platform:          … as “playground” to get confident
                           “Who-is-Doing-What?          with Web 2.0 technology


         Incremental software development approach according to the
              company’s strategies, needs and Web 2.0 experience



                                                                                             11
A concept for Web 2.0-based cooperation within SME-networks:
… Results of the qualitative study (2/2)




                                                               12
A concept for Web 2.0-based cooperation within SME-networks:
… Recommendations
9 Steps to transfer requirements into an integrated conceptualization of Web
2.0-base cooperation:
     1    Requirements survey by means of structured interviews

     2    Classification of requirements in dimensions:
          a) Main content b) Design c) Data Security d) Extensions e) Behaviour

     3    Prioritization of (technical requirements) for the first prototype (A; B)

     4    Implementation of A-requirements in a first prototype

     5    Train the users for basic functionalities (economical benefits!)

     6    Testing the prototype in two-tier procedure: Lead users        entire Forum

     7    Requirements survey from testing stage

     8    Implementation of B- and after testing requirements

     9    Testing the extended prototype and monitoring user behaviour



                                                                                        13
Overview

 Web 2.0 – Enterprise 2.0 – SME 2.0
    Bringing Web 2.0 into organizational practice
    Enterprises and SMEs with 2.0: A State of the Art
    Research question

 A concept for Web 2.0-based cooperation within SME-networks
    Use case & research design
    Results of a qualitative study
    Recommendations

 Outlook



                                                               14
Outlook


  … some questions still remain:

     Can Web 2.0 newbies in the SMEs handle the prototype?
     How do individuals accept or decline the Web 2.0 artifacts?
     Do the users apply the prototypic Web 2.0 platform to solve their daily
     work life problems?

  … the concept is going to be evaluated in cooperation with the
    “WirtschaftsForum Neuwied e.V. …




                                                                               15

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Web 2.0 artifacts in SME-networks

  • 1. Web 2.0 artifacts in SME-networks A qualitative approach towards an integrative conceptualization considering organizational and technical perspectives Nadine Lindermann Nadine Blinn, Katrin Fäcks, Markus Nüttgens University of Koblenz-Landau University of Hamburg Computer Science Faculty School of Business, Economics and Social Sciences Institute for Management Institute for Information Systems Universitaetsstrasse 1, D-56070 Koblenz Von-Melle-Park 9, D-20146 Hamburg
  • 2. KMU 2.0 … the research question: Web 2.0 - an instrument To foster the exchange of creativity and ideas within a network of SMEs In order to generate innovative solutions for daily work life problems ? Organizational/ Technical Requirements Web 2.0 SME-Network IT-Support IT-Perspective Organizational Perspective Exchange of Creativity and Innovative Ideas Collaborative Innovation Processes 2
  • 3. Overview Web 2.0 – Enterprise 2.0 – SME 2.0 Bringing Web 2.0 into organizational practice Enterprises and SMEs with 2.0: A State of the Art Research question A concept for Web 2.0-based cooperation within SME-networks Use case & research design Results of a qualitative study Recommendations Outlook 3
  • 4. Web 2.0 – Enterprise 2.0 – SME 2.0: … Bringing Web 2.0 into organizational practice Web 2.0 Enterprise 2.0 KMU 2.0 (SME 2.0) “… a business revolution Web 2.0 platforms used Web 2.0 applications […] to the internet as “… within companies, targeted at the platform … “ or between companies necessities of SME- and their partners and networks Actively participating & customers … “ communicating Creating & sharing content von Kortzfleisch et al. 2008 McAfee 2006; Tim O’Reilly 2006 Mc Afee 2006 4
  • 5. Web 2.0 – Enterprise 2.0 – SME 2.0: … Enterprises and SMEs with 2.0: A State of the Art (1/2) Enterprise 2.0 – Trends: Enterprise 2.0 is becoming familiar - companies plan to spend more on it Extensive use of Web 2.0 in companies deriving business value from it … outside the company (e.g. improving customer service/ interaction) … inside the company (e.g. Managing knowledge and information flow) Not all companies are using Web 2.0 Technical Aspects Organizational Aspects Dissatisfaction with existing tools “Nature” of the company (SMEs) Security No clarity about term Web 2.0 and its (economical) benefits Berlecon 2008; McKinsey 2008; The Economist Intelligence Unit 2007 5
  • 6. Web 2.0 – Enterprise 2.0 – SME 2.0: … Enterprises and SMEs with 2.0: A State of the Art (2/2) Enterprise 2.0 within SMEs that are characterized by The personality of the SME’s owners “A real small firm has two arms, two legs and a giant ego” A short-term oriented strategic horizon (survival/ reactive strategy) Bellmann and Gerster 2006, Levy and Powell 2005, Street and Cammeron 2007 ... that impact the implementation and usage of IT within SMEs using Web 2.0 within SMEs remains exception: Web 2.0 has no business relevance and is considered with scepticism De Saulles 2008; Netzwerk elektronischer Geschäftsverkehr 2008 6
  • 7. Web 2.0 – Enterprise 2.0 – SME 2.0: … Research question … what does that mean for KMU 2.0? Successfully implementation of Web 2.0 software depends on Organizational and cultural aspects (80 %) Technical aspects (20 %) Raabe 2007 KMU 2.0 – requires an integrative concept for the social software development process considering The characteristics and challenges of SME-networks The technical requirements for the implementation of Web 2.0 qualitative design science approach towards an integrative conceptualization of Web 2.0 artifacts in SME-networks 7
  • 8. Overview Web 2.0 – Enterprise 2.0 – SME 2.0 Bringing Web 2.0 into organizational practice Enterprises and SMEs with 2.0: A State of the Art Research question A concept for Web 2.0-based cooperation within SME-networks Use case & research design Results of a qualitative study Recommendations Summary and conclusion 8
  • 9. A concept for Web 2.0-based cooperation within SME-networks: … Use case and research design (1/2) … the conceptualization of Web 2.0 artifacts in SME-networks Requires to gather organizational & technical requirements Requirements collected by means of a qualitative study within a specific SME-network: WirtschaftsForum Neuwied e.V. Regional network of SMEs in the north of Rhineland-Palatinate, Germany 100 SMEs from industry and business sector Heterogeneous in structure Focus on non-competitive activities 9
  • 10. A concept for Web 2.0-based cooperation within SME-networks: … Use case and research design (2/2) Methodical approach Sample (n=6): Executives of member companies Companies represent the six project’s value partners Data acquisition: Guided interviews Subdivision into modules : 1 General information about SMEs and their collaboration within network 2 Usage of internet-based applications 3 Personal & professional experience with Web 2.0 4 Requirements for implementation and acceptance of Web 2.0 10
  • 11. A concept for Web 2.0-based cooperation within SME-networks: … Results of the qualitative study (1/2) The use of Web 2.0 remains exception – BUT Web 2.0 is perceived as instrument to optimize cooperation: No possibilities to represent No information about own company member structure: Branches No possibilities to exchange Business areas services Provided Services Web 2.0 platform: … as “playground” to get confident “Who-is-Doing-What? with Web 2.0 technology Incremental software development approach according to the company’s strategies, needs and Web 2.0 experience 11
  • 12. A concept for Web 2.0-based cooperation within SME-networks: … Results of the qualitative study (2/2) 12
  • 13. A concept for Web 2.0-based cooperation within SME-networks: … Recommendations 9 Steps to transfer requirements into an integrated conceptualization of Web 2.0-base cooperation: 1 Requirements survey by means of structured interviews 2 Classification of requirements in dimensions: a) Main content b) Design c) Data Security d) Extensions e) Behaviour 3 Prioritization of (technical requirements) for the first prototype (A; B) 4 Implementation of A-requirements in a first prototype 5 Train the users for basic functionalities (economical benefits!) 6 Testing the prototype in two-tier procedure: Lead users entire Forum 7 Requirements survey from testing stage 8 Implementation of B- and after testing requirements 9 Testing the extended prototype and monitoring user behaviour 13
  • 14. Overview Web 2.0 – Enterprise 2.0 – SME 2.0 Bringing Web 2.0 into organizational practice Enterprises and SMEs with 2.0: A State of the Art Research question A concept for Web 2.0-based cooperation within SME-networks Use case & research design Results of a qualitative study Recommendations Outlook 14
  • 15. Outlook … some questions still remain: Can Web 2.0 newbies in the SMEs handle the prototype? How do individuals accept or decline the Web 2.0 artifacts? Do the users apply the prototypic Web 2.0 platform to solve their daily work life problems? … the concept is going to be evaluated in cooperation with the “WirtschaftsForum Neuwied e.V. … 15