Comments on: Measuring the Business Value of Enterprise 2.0, Using Enterprise 2.0 http://www.fastforwardblog.com/2009/12/09/measuring-the-business-value-of-enterprise-2-0-using-enterprise-2-0/ Fri, 28 Oct 2011 01:28:22 -0500 http://wordpress.org/?v=2.8.4 hourly 1 By: Steve Christensen http://www.fastforwardblog.com/2009/12/09/measuring-the-business-value-of-enterprise-2-0-using-enterprise-2-0/comment-page-1/#comment-259733 Steve Christensen Thu, 10 Dec 2009 05:33:28 +0000 http://www.fastforwardblog.com/?p=4179#comment-259733 To measure value of Enterprise 2.0 in business you have to measure it in terms relevant to business. There is no dissension in a business about the important metrics: revenue and profit. With one you can create the other. The struggle with measuring E2.0 success is because the current topic of E2.0 are social applications. I won't argue the value of institutionalizing communication and the impact it could have on improved performance. What I do argue is that the intangible nature of that value falls short of what an Enterprise demands. McAfee today, in the Financial Times, identifies three fundamental properties for E2.0. I would add one more: E2.0 solutions must demonstrably increase revenue and/or profit before roll out investment is required. McAfee also deemphasized the use of the term social. The Enterprise market differs dramatically from the consumer market. Not only does social sound like wasting time to business but they aren't lacking for people to talk about problems. There must still be water coolers or break rooms. E2.0 solutions work in three "categories" for business: communication, operation, customer. E2.0 solutions are built for business to meet the needs of the Enterprise. The Enterprise is operating in a highly interdependent network of vendors, employees and customers. E2.0 solutions operate in this network and require no replacement of E1.0 solutions (McAfee's frictionless). Being able to demonstrate increases in revenue and/or profit before investment answers the question of value with the business' own business. To measure value of Enterprise 2.0 in business you have to measure it in terms relevant to business. There is no dissension in a business about the important metrics: revenue and profit. With one you can create the other. The struggle with measuring E2.0 success is because the current topic of E2.0 are social applications. I won’t argue the value of institutionalizing communication and the impact it could have on improved performance. What I do argue is that the intangible nature of that value falls short of what an Enterprise demands.

McAfee today, in the Financial Times, identifies three fundamental properties for E2.0. I would add one more: E2.0 solutions must demonstrably increase revenue and/or profit before roll out investment is required. McAfee also deemphasized the use of the term social. The Enterprise market differs dramatically from the consumer market. Not only does social sound like wasting time to business but they aren’t lacking for people to talk about problems. There must still be water coolers or break rooms.

E2.0 solutions work in three “categories” for business: communication, operation, customer. E2.0 solutions are built for business to meet the needs of the Enterprise. The Enterprise is operating in a highly interdependent network of vendors, employees and customers. E2.0 solutions operate in this network and require no replacement of E1.0 solutions (McAfee’s frictionless). Being able to demonstrate increases in revenue and/or profit before investment answers the question of value with the business’ own business.

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