Enterprise social collaboration executive briefing

2. Business Challenges
• Rapidly changing market
• A drive to return to business
fundamentals
• Far-flung and loosely connected
groups, disparate cultures
• Desire for better operational
control
• A plan to enable future growth

3. Direction of Investigation
• Seek techniques that can
create results not possible
before
• Explore emerging yet proven
new technologies
• Look at new economic, social,
governance, and cultural
models for organizational
improvement

4. Best Practical Vehicle for:
Enterprise 2.0

5. Background
• Enterprise 2.0
– Globally visible, persistent collaboration
Enterprise 2.0 systems
• Employees, partners, and even customers adapt to the environment,
• Leaves behind highly reusable knowledge rather than requiring the
– Uses wikis, blogs, social networks, and environment to adapt to it.
other Web 2.0 applications to enable low-
barrier collaboration across the enterprise
– Puts workers into central focus as
contributors
– Builds and sustains strong connections
across the organization
– Case studies of early adoption consistently
verifying significant levels of productivity
and innovation

6. 6
Recent adopters of Enterprise 2.0
• Enterprise 2.0 tools are being deployed on a wide scale in 2009 by
Fortune 500 firms.
• Wells Fargo has rolled Enterprise 2.0 out to 160,000 workers.
• Knowledge workers are often the major target but unexpected adoption
is also taking place in other areas, especially the call center
• T. Rowe Price, Vodafone, and others have encountered steady
productivity gains. Example: 2 minutes average time savings per
phone call x 1200 workers.
• The BBC can cite numerous instances of innovation being directly
harvested from their E2.0 platforms directly into business value.
• Target used its Facebook user profile to market to and converse
with the incoming 2007-2008 freshman year.
• Enterprise 2.0 is coming in the back door if workplace doesn’t provide
it.
• Similar to PCs in the 1980s. Example: AOL, Constellation Energy,
and the World Bank

7. Reported Benefits Of
Enterprise 2.0
• Increased knowledge
retention
• More collaboration and ties
between workers
• Breaking down
organizational silos to
enable change
• Increased transparency
• Less duplication of effort
• Higher level of productivity

8. Applying Enterprise 2.0 to V4G
The lightweight horizontal collaboration and community building known
as ‘Enterprise 2.0’ (modern ‘social’ online tools) can help drive the V4G
change program towards its goals.
This discussion will include:
• Case studies of other companies
engaged in similar activities and
business value gained.
• Approximate cost/benefit analysis for
using Enterprise 2.0.
• Demonstration that application of
Enterprise 2.0 approach is one of the
likeliest and least-disruptive candidates
for V4G program success.

9. What is ‘Enterprise 2.0’?
• Simple, easy-to-use ‘social’
software tools to engage for
worker activity
– Specifically collaboration,
communication, and community
building - over modern computer
networks.
• These tools are able to support
the unique and frequently
changing daily activities of
knowledge workers in a way
that traditional IT systems and
process automation are only
partially effective in addressing.

10. Identified at Harvard

11. Modern Social Computing:
Enterprise 2.0
• Conceived by Harvard Business School
Professor Andrew McAfee
• Defined as emergent, freeform, social
applications for use within the enterprise
• Primarily to improve the collaboration
problem (discussed shortly)
• The use of blogs and wikis to capture
institutional knowledge, make it discoverable
and let structure and community emerge
naturally

12. Bottom Line Results:
More Leverage, Better Efficiency,
More People Working

13. Social Networks vs.
Collaborative Networks
• ‘Social Media’ – the
freewheeling consumer world of
Facebook, Xing, blogs, Twitter
and other services that facilitate
sociable communication
• This is not the same as
Enterprise 2.0 collaborative
networking to achieve daily
business objectives.

14. Outcomes with Enterprise 2.0
• More information is left behind by
workers at the end of business
processes that results in re-use
and leverage-over-time
• Faster and improved access to a
wider range of ideas and expertise
across an organization
– 20% of worker time on average is
spent finding information
• Active facilities to find and use
institutional knowledge before it
gets out-dated
• Persistent, global conversations
are created naturally to develop a
more unified and coherent
business culture

15. Legacy limitations
• Interoperability and database access
difficult and expensive
• Scattered and fragmented knowledge
• Struggle to manage costs, integration,
and future requirements, while keeping
existing infrastructure running securely
behind the firewalls
• Often brittle, inflexible enterprise class
systems are hard to integrate and
evolve for new uses and emerging
market realities

16. Shadow IT and New Worker
Behaviors
• New employees often turn
to informal usage of Many large organizations, including
AOL, Constellation Energy, and the
outside Web tools to get
World Bank, have reported that
aspects of their work workers have widely adopted Web
done and communicate. 2.0 tools internally on their own
• ‘Shadow IT’ - is a growing initiative.
phenomenon, and occurs In each of these three cases, the Web
at a relatively informal 2.0 tools later became officially
personal and group level, sanctioned applications for
often spreading virally communication and collaboration.
after initial use.

17. Latest Worker Behavior
Findings from Accenture

18. Real-Time Interoperability
• The greater 2.0 technology movement utilizes
an information cross-pollination model
• Enables multiple sources of information and
data to be aggregated into a single user
experience, a term commonly called a
‘mashup’
• information from multiple sources juxtaposed
in context within a single browser window to
the end user

19. Email Shortcomings
• Email has its place in the enterprise but is the
lowest common denominator of
communication.
• One-to-one or one-to-few communication is
highly inefficient
• Doesn’t expose information to teams and
groups effectively and encourages information
hording.
• Interruptive and hard to leverage
• Builds silos of communication

20. Demo

21. The Solution: Aligning Increased Efficiency
Goals with Enterprise 2.0 Initiatives
• Identifying areas where bridging and contextual
collaborative interaction between business units and
systems will provide results within an official
Enterprise 2.0 environment
• This can be quickly achieved with strategic planning
and community building.
• Ad hoc usage of Enterprise 2.0 is increasing whether
desired or not:
– Embrace and shape usage than it is to pass edicts
forbidding use, as many organizations have found

22. Software Required:
But It’s Process and People:
• Work processes are unique in
each distributed organization as
are the people themselves.
• Software isn’t primary solution,
business processes that are more
open, community-based, and silo-
resistant.
• Online business communities
must be tailored to be fit for
specific purposes and business
outcomes

23. Community Management Process
• In successful Enterprise 2.0
rollouts, community
management has proven to
be the enabling capability
• Community management
guides and directs the
participants in an Enterprise
2.0 ecosystem,
• Driven by management goals
and given reach by its
pervasive social nature, a
more unified global culture
of mutually visible and
communicating workers
grows.

24. Case Study
• Fidelity has innovative Internal
collaboration policies.
• Started with email discussion
forums in 2001 with groups of
300-700 people
• Moved to cross organization
wikis, locked and open as
appropriate.
• Forums widely used instead of
email in rolling discussion
areas, such as innovation and
specific application user best
practice.

25. Fidelity Investments:
Social Publishing (Blogs)
Three major success stories internally:
• Thoughtleader blogs - Senior management and recognized
innovators have had great success sharing insight and informing the
greater internal community.
• Venture Team blogs - These have been of great value in exposing
projects to the wider internal audience with some valuable connections
and insights captured from commented feedback.
• Run of the mill blogs - When Fidelity employed 1000 new employees
in a new North Carolina unit they encouraged line of business
employees to blog about their everyday work experiences.
HR and management found the feedback about support desk
process experiences and other descriptions of how workflow
functionality actually happened invaluable.

26. Fidelity Investments:
Directory
• Fidelity have had great success with a sophisticated internal address
book known as ‘The Directory’.
• This was originally a mashup of the existing corporate directory of all
employees adding organizational hierarchy, groups and geography as
well as correct name pronunciation.
• Social search, bookmarking and tagging made this grass roots project
– which originally ran on a single computer under its creators desk –
so popular that well over a quarter of the 50,000 employees worldwide
relied on it as the most efficient source of information.
– Helped build stronger internal community ties
• First generation Directory has been superseded by a more formal
build out to take advantage of the added efficiencies and context the
original innovations brought to the enterprise.

27. Case Study #2
• Call center capture of frequently asked
questions in wiki
• Average call times declined and customer
satisfaction increased noticeably. New
workers had knowledge available that
constantly evolved in open and transparent
fashion.
• As a result much more institutional
knowledge was retained on the network for
future call center employees.
• Cost to organization was low, with
technology forming the smaller part of the
total cost with customization and
community management forming bulk of
investment.

28. Enterprise 2.0 ROI for
Financial Services
• US credit reporting agency TransUnion
recently claimed an initial estimated
saving of $US2.5 million within 5
months after using an Enterprise 2.0
social networking platform to connect
their 2,700 employees.
• In this specific case, the social
networking platform coexists with
Microsoft Sharepoint, which is utilized
for more formal structured workflows.
• Transunion estimates the platform can
deliver an estimated $5 to $8 million in
total savings this calendar year for an
outlay that is a tiny fraction of that
amount
• $US50K total expenditures was reported
by the CEO, resulting in an extremely
impressive 50x return on investment .

29. Strategic Alligenment
• The global financial crisis has changed every industry drastically.
Cost optimizations need to be made as a result of growing operating
and IT expense.
• Meanwhile market perceives a lack of aggression, innovation and
speed along with a low speed to market - even as customers require
increasingly rapid delivery of ever more customized products and
services
• Reduce complexity of operating model as well as reducing risk while
overcoming challenges
• The need for operating and IT cost containment within the goal of a
single IT platform aligned to standardized processes, all at a time
when innovation, aggression and speed need to be ramped up are not
complimentary.

30. Why connectivity and community
tools are key to succeed
• The general information worker spends more than 20% of his time searching for the right
information. Having the right information at their fingertips will reduce that time, and
improve productivity. The right decisions can be made if all the information that is needed
is at the decisions maker disposal.
– Connect people (connect people to purpose)
– Be able to find the right experts within the organisation (connect people to the right
people)
– Find local experts that can assist in tailoring a common approach to a local situation.
– Capture and share experience and knowledge from implementation in one country and
use it for implementations that will follow in other countries (connect people to the right
information).
– Facilitate formal and informal learning: 80% of what people learn is learned on the job
and via networking (informal).
• An enterprise community platform can enable this.

31. Strategic Uses
• Cost Reduction: Increasing innovation and agility can be effectively addressed with the intelligent use of
appropriate Enterprise 2.0 tools and technologies: this will have a significant impact on reducing
expenses in structured information while greatly increasing efficiencies around unstructured information
amongst knowledge workers.
• Agility: While foundational structured IT continues to play the role of backbone of most business units, it
will not be possible to achieve the target operating model of services and sub services using a traditional,
more inflexible approach exclusively.
• Unified Business Culture: Seeing the various services as bricks, the unstructured interoperability can
be seen as the mortar or cement that binds the various regional units closer together.
• Alignment: The focus on people needs to capitalize on innovative uses of enterprise 2.0 to draw
employees closer together and align objectives with services and subservices where needed.
• Ease of Adoption: Low entry barrier way to engage the workforce and have positive bi-directional
communication on the objectives, progress and needs of the program.
• Rapid Start: A strong way to stimulate sharing of expertise and knowledge in the region that exceeds
country borders
• Leverage of New Technology: Lightweight integration to help secure knowledge about new
technologies, such as business process management tools and middleware, more efficiently and
between many different IT staff. This will strongly drive enthusiasm and a feeling to contribute and work
together.
• Cost Effective: Low cost implementation and low entrance fee.
• Silo Reduction: Integration with back-end knowledge and content management repositories, such as
Sharepoint, web-based GUI systems and other internal sources. This should ensure efficient collection,
consolidation and sharing of knowledge and expertise which should then stimulate people to read, learn
and change.

32. Business Case
• Direct productivity gains
• Regional growth
• Cost savings
• Low cost implementation and low entrance fee.
• Average Reported ROI: 10%-40% (first year only, levels off 2nd+)
• Estimated ROI Ceiling: 15% (Where applied)
• Cautionary Note: Aberdeen Group Suggests As Little As 1%
• Costs per Employee: +/- 20-40 EUR
• Most cost are community management, integration, customization, and management:
Enterprise 2.0 Program Cost Component Proportion
Tools (Licenses) 0.1
Integration, Customization, Security, Operations 0.3
Community Management 0.3
IT and Business Steering Overhead 0.1
Program Management and Metrics 0.2

33. Bottom-Line Value Proposition
1. Local acceleration of regional growth
The value propositions of adopting Enterprise 2.0 methodologies and
associated technologies at ING include
– Substantial productivity gains
– improved efficiency
– Nurturing of innovation
– Reduction of work duplication across departments and divisions
– Improved knowledge retention
– Increased expertise location
– faster responses to business situations
• Aligning new internal community engagement with accelerating product
roll out and stronger brand identification will enhance performance and
agility in the regions.
• Greater collaborative connectivity between local units and central offices
will create consistency of effective customer messaging while proving an
invaluable internal feedback loop to identify what works in each region.
• Enables market intelligence to be both received and distributed at all
levels, and avoids reinventing the wheel endlessly and at enormous
expense.

34. 2. A single operating model and system to create scale
– Grow the business in a time-efficient manner while supporting
cost reduction initiatives and adapting to rapidly changing
market conditions requires a degree of centralization.
– By creating an integrated internal online community as part of
the core values of the single operating model, and by designing
this to accommodate scale, informed knowledge workers will
contribute and benefit from ever increasing contextual
information at all levels.
– The primary value of this will be to capture and share tacit
knowledge that will flesh out a more robust and consistent
organizational model.
– Importantly hooks into structured information will inform these
collaboration networks, providing in some cases context
outside the information’s original intent. An important
component of innovation discovery is exposing information and
realizing new purposes for it.

35. 3. Common winning performance culture
– Achieving a single well aligned organizational culture through
the creation of an integrated internal online culture that can
serve ‘point of sale’ teams at the regional level is dependent on
people and processes more than the enabling Enterprise 2.0
technologies.
– Change management is a critically important component of
achieving these values, and is driven by clear top down direction
defining the way ING employees are being asked to work to
achieve goals.
– Ambiguity at a management level coupled with the power of
modern technology can quickly create a new generation of
technology powered silos without clear oversight and guidance.
– Interoperability and connectivity between business unit systems
should be the overarching goals where appropriate – clearly
defining guidelines for adoption and providing appropriate
training as required will get all participants ‘singing from the
same sheet of music’.

36. Strategic and Tactical Alignment
• Informed and considered uptake of Enterprise 2.0 will enable:
– A single high level company roadmap that unifies and clarifies
Enterprise 2.0 operational model and services
– The creation of a unified online community, with subsets of
collaboration networks
– Alignments and awareness between business units for innovation,
consistency and avoidance of duplication
– A centralized market intelligence community which can feed
regional satellites tuned in to customer needs
– Cross pollination of electronically stored information from
regionally hosted IT infrastructure where appropriate and possible
– A framework designed for contextual, organic growth instead of
isolated verticals
– Enterprise 2.0 policy that is aligned and not in conflict with IT
governance and other shared services but successfully embedded
to play a key role in transformation objectives

37. Risks of not adopting a formal approach to
Enterprise 2.0 methods and technologies:
• Continued fragmentation and the development of parochial new
silos of tools, often with informal and inconsistent use of
Enterprise 2.0 technologies
• Lack of effective centralization and unification of workers and
efforts at regional units
• Expensive updates and integrations of enterprise class
technology to provide services more agile, flexible and
inexpensive Enterprise 2.0 technologies are more effective at
providing
• No formal role for Enterprise 2.0 in the target operating model
• No central platform for development, launching, and managing
enterprise-wide initiatives
• Electronically Stored Information siloed and inaccessible;
findability an increasing problem

38. Conclusion
• Enterprise 2.0 has become a widely used approach in the financial
services industry, as evidenced by the four well-known companies
cited in this work.
• The costs/benefit model is extremely compelling and the risks of not
using Enterprise 2.0 models are of roughly the same magnitude as
managed adoption, if not slightly higher.
• It is recommended that a proactive Enterprise 2.0 strategy be used as
a key strategic enabler across the organization.
• Focused initial pilots on where change needs to happen the fastest to
start with, with equal focus on Enterprise 2.0 and strong community
management, followed by a larger initiative using early lessons
learned from the pilots, will form a larger company wide rollout later

39. Discussion