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New Surveys Show Robust Enterprise 2.0 Adoption

by Joe McKendrick

Nick Carr has just posted the results of two new studies on Web 2.0 adoption within the enterprise, which appear to demonstrate that the Enterprise 2.0 trend is growing legs within enterprise settings. However, at this stage in the Enterprise 2.0 evolution, it may be time to start taking a closer look at the business benefits being leveraged by Enterprise 2.0 technologies, rather than obsessing about how many are adopting which types of tools.

Forrester, for example, found that almost nine out of ten of the 119 CIOs surveyed said they had adopted at least one of six prominent Web 2.0 tools - blogs, wikis, podcasts, RSS, social networking, and content tagging. More than a third said they were already using all six of the tools.

Another survey of 2,800 executives (not just CIOs) from McKinsey & Company also found strong interest in many Web 2.0 technologies but much less widespread adoption. McKinsey looked at six tools, including mashups (not covered by Forrester), blogs, wikis, podcasts, RSS, and social networking. Investment in or planned adoption included the following: social networking (37%), RSS (35%), podcasts (35%), wikis (33%), blogs (32%), and mashups (21%). Interestingly, McKinsey found Indian companies leading North America in embracing these tools.

Nick’s report was pretty straightforward, without the spicy anti-IT opinions that usually color his commentary. But Dana Gardner, a leading industry analyst, did step in with a response, questioning whether such surveys should be directed at line-of-business executives, rather than CIOs — who tend to look at the technologies as tools, rather than their usefulness to business. Plus, there needs to be more questions asked about business benefits, not mere adoption. We’re well beyond the tools “adoption” stage in the evolution of Enterprise 2.0.

Such business benefits may include “inexpensive global/long tail communication, marketing, search ranking benefits, and community development and involvement,” Dana said. “The same survey should be given to the marketing executives — who may get this more than the CIOs at this juncture. The better question to ask is, how do the marketing and knowledge management leaders in the enterprise want to best avail themselves of these tools?”

In fact Hadley Reynolds just provided some insights on the business benefits from a recent survey of 400 executives now being put together by FAST and Economist Intelligence Unit. As Hadley relates, more than 80% of respondents reported that they view the 2.0 technologies as “an opportunity to increase my company’s revenues and/or margins.”

In addition, the EIU survey finds that more than 75% of executives report that the greatest impact from Enterprise 2.0 will come in “the way my company interacts with customers.” Approximately 40% report that they see strong impacts coming in the way their company is viewed by customers and in the way employees interact with each other and the enterprise. And 40% also report that they see 2.0 impacting their business models.

“All of these survey results point to a strong sense of connection between 2.0 and future business benefits - particularly in offering the customer web-centric channels for interacting with the firm,” Hadley concluded.

In his own blog response to Nick Carr’s news, Ross Mayfield also urges that we focus on the business applications, and supporting grassroots introduction of new technologies.

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1 Comment »

  jacques bughin wrote @ March 23rd, 2007 at 3:19 am

Good to see people spot some of the work we have been doing on the adoption and benefits of entreprise 2.0. As a speaker at the FastForward conference, I know that a large debate stands to prevail around the use and benefits of web 2.0 technologies within the entreprise. On this matter, our detailed analyses go deeper than Forrester (small sample) as well as than the Economist Intelligence unit, that is:
- we see that the largest momentum is coming outside of the CIO sphere really and that the business drives the adoption
- we see as well that, despite the adoption numbers, only a few companies are adopting the full suite of technologies- (22% in our sample use more than 5 of those technologies)
- for each technology, we can trace a bit of the adoption curve- that is we know the bottlenecks at each step of the adoption funnel (awareness of the technology, consideration of usage, actual test and trial and then use) — the interesting thing is that the bottlenecks are very different from technolgy item to another– for instance, mash-ups awareness is only 36% versus 85% for blogs, and collective intelligence tools will not be considered only by 26% of the companies surveyed versus up to 45% for bolgs. In general, removing bottlenecks like awareness of technology, etc, leaves us with a potential of 45% adoption in the next 3-4 years, that is close to three times the actual adoption.
- we did also analyze the drivers of adoption– the information is not yet fully processed, but basically we found some surprising results such that: a) India leads the way; b) Retail and high-tech co’s are more inclined to adopt those technologies, etc. Not surprisingly, but equally important, companies whixh have exceeded their expectations of web 1.0 are first movers in web 2.0.
- on the latter, those companies tend to have built a competitive advantage in using web technologies, linked more to partnerships with customers and suppliers, and the web 2.0 reinforces this advantage.

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