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It Takes A Long Time For Change To Happen Quickly

by Jon Husband

Taylorism changed a lot about the nature of work in North American and western Europe pretty quickly, all things told … but it still took thirty or forty years to emerge into its relatively full-blown effects.  At its heyday, the manufacturing might and effectiveness of the United States that Taylorism helped create enabled it (along with important agricultural and resources capabilities and growing financial clout) to become the world power economically over several decades at most. 

In an important sense, it was useful to his theories that 1) they helped respond to the massive spread of the Industrial Era’s requirements for growth in the first half of the 20th century, and 2) World Wars I and II came along in the late 1910’s and in the late 1930’s to provide a massive need for manufacturing.

30+ years elapsed from the publication of Principles of Scientific Management in 1911 to the codification of those principles into work design methodologies in the 1940’s and early 1950’s.  He and his theories get a bad rap today, but it seems clear that they were highly useful to the process of creating wealth by improving manufacturing processes and capabilities.

It seems banal to say that those theories are less effective today, but I am not sure that’s the case.  There have been no comprehensive theories and principles come along (yet) to replace them, notwithstanding a plethora of management books published since the mid-1980’s promising enhance organizational effectiveness … more often than not by combining Taylorist principles with developmental workarounds and adaptations.

The recent emergence of the field called Enterprise 2.0, and clarion calls for management innovation that have followed (see Gary Hamel, Andrew McAfee, Tom Davenport, Don Tapscott, Dave Snowden and many, many others) promises much potential disruption.  It also portends significant struggle as the forces of buttoned-and-battened-down efficiency derived from a manufacturing-focused era vie with the forces arising from networked flows of information in an era where economic value is derived from the construction and application of knowledge to product and service design and delivery (manufacturing happens in China now).

Via Wikipedia:

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Taylor published his Principles of Scientific Management in 1911, which elucidated four core principles:

1. Replace rule-of-thumb work methods with methods based on a scientific study of the tasks.

2. Scientifically select, train, and develop each employee rather than passively leaving them to train themselves.

3. Provide "Detailed instruction and supervision of each worker in the performance of that worker’s discrete task".

4. Divide work nearly equally between managers and workers, so that the managers apply scientific management principles to planning the work and the workers actually perform the tasks


Management theory

Taylor thought that by analysing work, the "One Best Way" to do it would be found. He is most remembered for developing the time and motion study. He would break a job into its component parts and measure each to the hundredth of a minute.

[ Snip … ]

He was generally unsuccessful in getting his concepts applied and was dismissed from Bethlehem Steel. It was largely through the efforts of his disciples (most notably H.L. Gantt) that industry came to implement his ideas.

Managers and workers

Taylor had very precise ideas about how to introduce his system:

"It is only through enforced standardization of methods, enforced adoption of the best implements and working conditions, and enforced cooperation that this faster work can be assured. And the duty of enforcing the adoption of standards and enforcing this cooperation rests with management alone." (Taylor, Principles of Scientific Management, cited by Montgomery 1989:229, italics with Taylor)

Workers were supposed to be incapable of understanding what they were doing. According to Taylor this was true even for rather simple tasks.

"’I can say, without the slightest hesitation,’ Taylor told a congressional committee, ‘that the science of handling pig-iron is so great that the man who is … physically able to handle pig-iron and is sufficiently phlegmatic and stupid to choose this for his occupation is rarely able to comprehend

[The scope of] Taylor’s Influence - United States

  • Carl Barth helped Taylor to develop speed-and-feed-calculating slide rules to a previously unknown level of usefulness. Similar aids are still used in machine shops today. Barth became an early consultant on scientific management and later taught at Harvard.
  • H. L. Gantt developed the Gantt chart, a visual aid for scheduling tasks and displaying the flow of work.
  • Harrington Emerson introduced scientific management to the railroad industry, and proposed the dichotomy of staff versus line employees, with the former advising the latter.
  • Morris Cooke adapted scientific management to educational and municipal organizations.
  • Hugo Münsterberg created industrial psychology.
  • Lillian Gilbreth introduced psychology to management studies.
  • Frank Gilbreth (husband of Lillian) discovered scientific management while working in the construction industry, eventually developing motion studies independently of Taylor. These logically complemented Taylor’s time studies, as time and motion are two sides of the efficiency improvement coin. The two fields eventually became time and motion study.
  • Harvard University, one of the first American universities to offer a graduate degree in business management in 1908, based its first-year curriculum on Taylor’s scientific management.
  • Harlow S. Person, as dean of Dartmouth’s Amos Tuck School of Administration and Finance, promoted the teaching of scientific management.
  • James O. McKinsey, professor of accounting at the University of Chicago and founder of the consulting firm bearing his name, advocated budgets as a means of assuring accountability and of measuring performance.

I’ve long appreciated the aphorism that is the title of this post, and I think of it regularly when surfing and reading the latest insight from the many pundits and critics of the Web.  And today I am thinking about "the future of work".

It’s my assertion that the changes social computing will bring to knowledge work and knowledge-based workplaces may be even greater than the generally immature experiments that have taken hold today as early adopters play with tools that allow them to connect, create, converse, convulse, coopt, and carry on about all manner of things … including work issues, challenges and opportunities.

David Weinberger is a well-known expert on knowledge management and the hyperlinked web / organization.  He has from time to time written about how the digital infrastructure and the dynamics it fosters "cuts the slack out of interactions" (The Need For Leeway, October 2002) .  We need "slack" to reflect, to think, to imagine, to support the filling in and filling up of the connections we have made between people, information, task and problems.  And we need analysis and measurement, specialized skills, budgets, accountability and best practices to optimize work and eliminate what is clearly unnecessary, not useful and / or wasteful.

But efficiency is not and will not be the hallmark of human interaction, and human sociology in the modern workplace cannot forever take its architectural design principles for Taylorism.  As we watch Enterprise 2.0 emerge, I watch what seem to be regular waves of dots (widgets, applications, platforms, services and people in equal measure) joining together, using the Web, to meld efficiency and slack … the "both / and" so often cited as characteristic of this new environment.  A flow of questions, responses and pertinent information soldered together to provide a design, or a service, is not the same as carrying out efficient repeatable supervisable step-by-step tasks the result of which are combined with other sets of efficient repeatable supervisable step-by-step tasks to produce repeatable products or services (You can have any Model T you want, as long as it is black).

There’s an enormous amount of resistance, both intellectual and cultural, to acknowledging that maybe work cannot be designed and structured based on the principles that have been in place for more than three-quarters of a century now.  A lot of that has to do with what "management" still means to us (especially the incumbents of managerial roles).  It’s hard to give up power and control, especially when you are charged with making stuff happen and the budgets and performance management and compensation bonus schemes reinforce that charge. So, while it appears that the Internet, and thus the difficult-if-not-impossible-to-control flows of information, are here to stay, it also seems that about every 6 months or so there’s another wave of "this newfangled hyperlink stuff, personal publishing, connecting social-this-and-that is now officially over and it hasn’t yet changed the world".

Generally, I agree but with reservations.  Those reservations are that "we tend to overestimate the impacts in the short term because we overlook all the details of how things are done and the tenacious stickiness of peoples’ habits, and tend to underestimate the impacts in the longer term because we overlook or ignore the scope and depth of accumulated change" (not verbatim).

Today I found this snippet from Clay Shirky’s now-well-known Web 2.0 Expo keynote.

In my opinion he puts none too fine a point on the fact that the Internet seems to be with us to stay, and that it’s impacts will continue to accumulate.  Tomorrow’s workers won’t understand meetings, collaboration, supervision or accountability in the same way we do … all because of gin and that damned mouse.

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Gin, Television, and Social Surplus

a British historian arguing that the critical technology, for the early phase of the industrial revolution, was gin.

The transformation from rural to urban life was so sudden, and so wrenching, that the only thing society could do to manage was to drink itself into a stupor for a generation. The stories from that era are amazing– there were gin pushcarts working their way through the streets of London.

And it wasn’t until society woke up from that collective bender that we actually started to get the institutional structures that we associate with the industrial revolution today. Things like public libraries and museums, increasingly broad education for children, elected leaders–a lot of things we like–didn’t happen until having all of those people together stopped seeming like a crisis and started seeming like an asset.

It wasn’t until people started thinking of this as a vast civic surplus, one they could design for rather than just dissipate, that we started to get what we think of now as an industrial society.

If I had to pick the critical technology for the 20th century, the bit of social lubricant without which the wheels would’ve come off the whole enterprise, I’d say it was the sitcom.

[ Snip … ] 

I was having dinner with a group of friends about a month ago, and one of them was talking about sitting with his four-year-old daughter watching a DVD. And in the middle of the movie, apropos nothing, she jumps up off the couch and runs around behind the screen. That seems like a cute moment.

Maybe she’s going back there to see if Dora is really back there or whatever. But that wasn’t what she was doing. She started rooting around in the cables. And her dad said, “What you doing?”

And she stuck her head out from behind the screen and said, “Looking for the mouse.”

Here’s something four-year-olds know: A screen that ships without a mouse ships broken. Here’s something four-year-olds know: Media that’s targeted at you but doesn’t include you may not be worth sitting still for.

Those are things that make me believe that this is a one-way change.

Because four year olds, the people who are soaking most deeply in the current environment, who won’t have to go through the trauma that I have to go through of trying to unlearn a childhood spent watching Gilligan’s Island, they just assume that media includes consuming, producing and sharing.

[ Snip … }

I think that’s going to be a big deal. Don’t you?

Well, the TV producer did not think this was going to be a big deal; she was not digging this line of thought. And her final question to me was essentially, "Isn’t this all just a fad?" You know, sort of the flagpole-sitting of the early early 21st century? It’s fun to go out and produce and share a little bit, but then people are going to eventually realize, "This isn’t as good as doing what I was doing before," and settle down.

And I made a spirited argument that no, this wasn’t the case, that this was in fact a big one-time shift, more analogous to the industrial revolution than to flagpole-sitting.

I was arguing that this isn’t the sort of thing society grows out of. It’s the sort of thing that society grows into.

But I’m not sure she believed me, in part because she didn’t want to believe me, but also in part because I didn’t have the right story yet. And now I do.

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“Patterns In The Flow” … Pending Interview

by Jon Husband

Over the past two weeks in between a lot of work and some more hard work, I managed to pop in to several sessions at the OpenWeb Vancouver conference, a two-day conference focused on "showcasing open web technologies, communities and culture, and evangelizing the Open Web to developers, designers, organizers and the community at large".

At OpenWeb I was introduced to one of the presenters, Duane Nickull, Senior Global Technology Evangelist for Adobe.  According to Duane, he is Adobe’s only Vancouver employee (nice work if you can get it, jetting all over the world whilst coming home every once in a while to this lovely little corner of the globe).  Duane has also just co-authored a book with Tim O’Reilly … I’m pretty sure it’s about SOA but I can’t quite remember.  I’ll clear that up soon and report back in the interview (see below).

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The main focus of my professional career has been working for both the United Nations CEFACT committee and OASIS for the purposes of writing and building new architectures for global integration of multiple systems. I also work for Adobe Systems which I love. Great company!

Since 1996, I have been fortunate enough to work on multiple enterprise architectures including many service oriented architectures (SOA) within various standards bodies including W3C, UN/CEFACT, OASIS and others. I have also contributed to many SOA papers and articles on service oriented architecture. My focus has shifted towards many web service standards in recent years.

I have worked on many other interesting technologies including the first contextual XML Search Engine, an Alternative fuel hydrogen project and the new UN/CEFACT eBusiness Architecture and related technologies. The next level of this work will probably be linked to Ontology work. I participate in the Ontolog Forum which is a great group.

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Duane’s OpenWeb Vancouver session was titled "Web 2.0 Design Patterns, Models and Analysis".

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"Many enterprises seek knowledge of the design patterns used by successful Web 2.0 companies. This session starts with Tim O’Reilly’s list of Web 2.0 examples and distills the abstract architectural patterns from behind the examples. By using the patterns notation, the core knowledge of the design principles is preserved in a template which can be reused in multiple domains including government."

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I asked Duane if I could interview him … about Adobe, it’s plans for Enterprise 2.0, what flows of information mean to him and his colleagues at Adobe and insights on noticing, and using patterns  to design and build better, easier-to-use, more flexible and more powerful applications.

We’re still looking for a mutually convenient date (he travels a lot and is speaking at the Web 2.0 conference at the moment, so this really means when will Duane next be back in Vancouver ?), but it looks like I will interview him sometime in the first week of May.  I hope you’ll check in for what I will strive mightily to make an interesting and educational interview.

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Survey: Demand for Web 2.0 Skills Hot, Getting Hotter

by Joe McKendrick

I recently completed work on a survey report for Evans Data measuring the impact and trends shaping Web 2.0 projects within the enterprise.

The survey of 385 corporate managers and developers covered Web 2.0-based development mechanisms — such as mashups and gadgets/widgets — as well as social networking tools. Both types of environments are now very much a part of the corporate scene, and have become important tools for corporate applications, the survey finds.

Demand for Web 2.0/Enterprise 2.0 talent is hot, as a matter of fact. Two out of three respondents say their demand for such talent will increase over the coming year. That’s because there is a lot of strategic business-to-business and internal business development going on by software developers in the survey. Developers are working on Web 2.0 software for business applications in several areas, including interface design, gadgets and widgets, and social networking.

Most Web 2.0 applications are being targeted at internal corporate requirements, versus consumer engagements. Close to half of the survey participants are focused on developing applications for internal use inside their companies. Less than a third are building Web 2.0 applications intended for delivery on a subscription base to online users.

Forty percent of interfaces for Web 2.0 applications are “mixed” web-rich clients that include AJAX for fast downloads of pages that include live feeds of data (gadgets) and other dynamic components found in Web 2.0 applications. An overwhelming majority of respondents are using gadgets and widgets (portable Web parts) from Google, Microsoft, Yahoo! and others to deploy fast, lightweight business applications and services.

More than four out of ten companies encourage social networking; however, most feel the business value still needs to be demonstrated at this time. Social networking is strongest among developers in scientific and technical fields, who see social networking as a communications and collaboration medium, and among OEMs and systems integrators, who see benefits in product delivery.

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Social Connection Payouts!

by Paula Thornton

Talk about a unique use of social connections. I’ve reported elsewhere how Twitter is being leveraged by various entities (e.g. mining conversations) to tap the power of social connections. But a spur of the moment event occurred today where the power of connections surged in another direction. Like the strong weather that decended suddenly the past few days in Texas and elsewhere, I hardly had time to recognize what was happening.

The Zappos CEO has a Twitter account — @zappos. Somehow I was following his account (not something all that random for me — I check out the value-add of each ‘voice’ before I connect with them). Earlier today he tweets:

I will be randomly selecting someone to get a free pair of shoes from all @zappos followers later tonight. Thanks @pokai for the suggestion!

I remember reading the note earlier wondering if I had to fill out a form or something. I briefly checked out the Zappos site…and then just went on about my business.

Tonight I was tweeting a number of ‘rants’ as I was reading the fabulous book Power Healing, by Leo Galland (e.g. “74 percent of patients seen…for various common symptoms…no…diagnosis to explain the cause of their problems.” 74% failure rate!!!), when suddenly the following series of messages pass by.

And the free shoes winner is… @rotkapchen - congrats! @rotkapchen has 61 followers but only 3 were also following @zappos (cont..)

@marobella @paulisakson @karllong were @rokapchen ’s 3 friends! Congrats to all, thanks for playing! I will direct msg each of the winners!

I’m thinking @rotkapchen — that’s me! I’m shooting an email to my kids and a few friends when private tweets hit my phone as text messages, with instructions to provide my email address to claim my prize. I jump into the Twitter interface to send a private message back directly to the Zappos account, and minutes later I get an email with a code to go online and shop at Zappos.

I was still reeling trying to figure out exactly what I’d done when I read the tweet:

Winner was randomly selected from all @zappos followers, and up to 10 of winner’s friends also win if they also followed @zappos

This was shortly followed by:

Thanks all for playing, it was fun! Let’s do this again soon! @zappos any suggestions for making it more fun/exciting in the future!

This is not a small thing. Free pair of shoes? It’s not too often that I spend $150 on a pair of shoes! But I’ll sure have fun trying.

What was interesting was the email that I received from Zappos. In the interest of time, an existing process was obviously engaged. The fact that this process is already in place is what intrigues me the most. Check out the wording of the message, its implications and how many ways I’m given direct access to continue the conversation if I was to desire to do so (after having a horrific week trying to engage in conversations with other vendors causing me real grief):

We apologize for any inconvenience we may have caused. Let us assure
you this is not indicative of the high quality of service and products we
strive to provide our customers.

As a token of goodwill, Zappos is issuing a coupon in the amount of $xxx
for your next purchase at Zappos.

Below is the coupon code you will need to place the order.

csxxxxxxxxxx

You can use this coupon with your next order at Zappos.com anytime
within the next 90 days. To use this coupon, place the code in the space
provided at the bottom of the shopping cart page.

Please accept this as an apology for any inconvenience, and do not hesitate
to contact us if there is anything we can do to be of further assistance.
Please note, this coupon code is associated with your account and is only
valid when used with the email address attached to your account. This coupon
is not redeemable for cash and cannot be duplicated, altered or auctioned on
any web site. This coupon is non-transferable.

Sincerely,

Customer Loyalty Team

Zappos.com
Powered by Service
1-800-ZAPPOS-1 (1-800-927-7671) or
702-943-7677
e-mail: cs@zappos.com
http://www.zappos.com

Pretty much says to me, their byline “Powered by Service” is not just marketease.

Can you imagine what would happen to the GDP if this same commitment to customers and unique, direct involvement in new forms of interaction were to be embraced for ALL relationships (internal and external) by all companies? Wouldn’t it be wonderful if, like with Zappos, we didn’t have to imagine it at all but could live it? Why, there probably would no longer BE a justification for a revolution at all.

And what about the others who also get to experience all of this because, simply by association, they too are winners? That’s pretty good payout for social networking. There’s already a lot of goodwill being spread around.

Now if you will excuse me, I have some shopping to do.

Postscript:
Industry colleague David Armano also wrote about this Zappos scenario and pointed out how it’s not about the tools, but about the unique ways in which they get used. Capitalizing (as is Forrester) on the crossover to Marketing audiences, he points out, it’s all about the ‘buzz’!

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Retrospective on KM and the Impact of Web 2.0

by Jon Husband

Cross-posted to the FASTForward blog.

Much of what follows may not be new for anyone who may read this blog.  Nevertheless, I think it’s always useful to look back every once in a while, if only to see how far and fast (or not) we’ve come since this Web thing started to penetrate more deeply and spread more widely into the workplace. 

The changes to what we call knowledge work are now coming thick and fast.

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Knowledge management (KM) sometimes seems like the business buzzword that won’t go away. But that may be changing.  As Web 2.0 penetrates and spreads through workplaces, will it render KM as it was once known obsolete … or not ?

We have all been wrestling with the massive changes brought onto the scene by Web 2.0 technology and capabilities … changes that portend transforming the relationship between information technology, the nature of knowledge work, how organizations are structured and how humans operate when surrounded and penetrated by ongoing flows of information.  It’s doubly important to note and understand that we are in reality still only in the early days of these fundamental changes to both the processes of work and the capabilities of the electronic infrastructure of hardware and software, aluminum, silicon and logic that supports these transformations in behaviour in the digital workplace.

A first wave of what we currently call knowledge management (KM) appeared in the mid-to-late 1990’s as organizations began coming to grips with the potent combined forces of information technology and its twin sister, information-based knowledge work.  Much of the attention and effort centred on integrated information systems and specialized information technology that combined enabled the categorization, archiving and easy access to documents and other codified knowledge.  Debates raged about the best ways to move back and forth between the codified ‘explicit’ knowledge and the less obvious, often invisible ‘tacit’ knowledge that surfaces in human interaction, and how best to enable or enhance the collaborative and interactive use of information and knowledge to get things done or create additional useful knowledge.  

Much water has passed under many bridges over the past five years or so.  Blogs and wikis began to appear on the scene in 2001 and 2002 and some speculated then that these tools - or more accurately their derivatives - would create a major impact on the knowledge workplace.  They were followed by the evolution and expansion of what has come to be known as Web 2.0 … features, functions and web services enabled by plug-ins, widgets and other easy-to-use digital mechanisms.  It was not until the middle of 2006 that IT executives and managers began to realize that lightweight, easy-to-use-and-integrate capabilities for finding information, pulling it apart and putting it together again in different ways, and exchanging that information to build useful knowledge would probably transform key areas of knowledge work and its attendant dynamics. 

Today there is rapidly growing awareness that the Web will play a major, if not dominant, role in the use of information technology by organizations small and large, whether through upgrading to the latest versions of major ERP systems that incorporate social software and collaboration capabilities and a range of useful widgets and plug-ins, or through wider adoption of SaaS or a make-over of an enterprise’s work systems to incorporate collaborative platforms and capabilities. Increasingly, changes to functionality, systems integration and IT architecture will need to be built around both individual and group cognitive and interactive styles and needs as well as the enterprise’s business process requirements

Many interviews with some of the acknowledged experts in the domain of knowledge management and in technology companies have led to forecasts of some version of the points outlined below (and of course many variations on the theme that each point suggests):

1.   KM assumed that knowledge work in information-based organizations basically remains more or less the same … more static or stable as opposed to dynamic (and always under construction) with ongoing reference to core dependencies on knowledge objects.  In other words traditional KM was over-reliant on structure where structure when working with flows of information is difficult to impose and fix into place

2.    “how to create a knowledge sharing culture?,” is not the right question.  It’s more important to ask and understand “what you can do to encourage and facilitate connections?”, supplemented with tools, capabilities and socially-generated context, to help the appropriate information and knowledge be available when and where it is most needed and best used.  This means that a much-needed role and focus is as a catalyst and facilitator of connections, helping others see why it is now this way and how things work

3.     Knowledge transfer is self-assembling and self-organizing.  It really can’t be otherwise … it is done by humans in interaction

4.  By and large, incentives should not be used to stimulate information contributions.  Generally, this leads to gaming by those that are better at managing than at creating/innovating

5.    Had today’s Web 2.0 tools and capabilities had been available a decade ago, what we have called knowledge management would have been embraced and used more successfully

6.    Considering or planning a “knowledge audit” implies auditing static “physical” knowledge assets. The knowledge accessed and used in organizations is better thought of as a dependency relationship of business / organizational processes on knowledge objects which underpin the social construction of just-in-time knowledge from ongoing flows of dynamic information.

7.    We need to think more carefully about combining top-down design and direction of business processes with the bottom-up use of knowledge objects.  The combination of structure and organic generation and synthesis can help manage effectively in continuous flows of incoming and outgoing information (knowledge objects are anything that we can coherently manage).

8.     An appropriate amount of structure (design constraints) is necessary to enable consistent recall and findability of information.

9.     Computers alone cannot competently tag content. Authors must tag the content they create and / or use. Putting names and labels to content is essential and often may be words that do not appear in the content (this is the essence of metadata).

10.  Centralized IT control is on its way out.  Much more of the decision-making about what platforms / applications / software to be used will be made in by line management or by project teams.  Security concerns are real due to Web 2.0 but not apocalyptic and should focus on protecting corporate data, not in regimenting the means of collaboration.

11.  Human Resources (HR) will in all likelihood need to undergo a massive transformation.  The nature and design of knowledge work keeps changing and as that change accelerates, it’s likely that companies will need to move towards the self-organizing of work … including people, tools and methods.

Exploration of the issues in the field of Enterprise 2.0 has also more recently led to the understanding that social computing depends to some degree on the architecture, engineering and specialized knowledge handling technology that has come before.  Numerous vendors with KM-labelled products (mostly leveraging intranets) appeared in the market in the late 1990s and early 2000’s.  During that same period, hundreds of major enterprises developed and implemented KM programmes and / or functionality, to some degree or other.

Social computing in the enterprise  is intended to improve the collaboration, use of information and knowledge and the decision-making effectiveness of individuals, teams or the whole enterprise.  Today, more and more of the established KM-oriented products have added social-computing functionality.  Existing capabilities and implementations are being adapted, re-designed and/or added to by Web 2.0 applications, platforms and capabilities that make it easier and faster for knowledge workers to exchange information, collaborate and build and use

While through the spread of social computing KM may be coming out of an initial identity crisis, the advent and rapid spread of what is termed Enterprise 2.0 has helped create for KM a new Identity Crisis 2.0.   Today it seems clear that the new crop of collaboration tools, platforms and methods for enhanced collaboration are rapidly synthesizing and integrating fragmented or separate components of what was understood to be a KM-oriented system a few short years ago.

And whatever the current guise (which is likely to be different in virtually every organization)  increasingly practicality and ease-of-use will rule the day.


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Size Matters - When Small is Big

by Rob Paterson

Sam Walton’s wife’s deal with Sam when they got married was that he could do whatever he wanted - he wanted to be a retailer - but she would never live in a community that had more than 10,000 people. So his constraint was to build an epochal retail system but in the boonies. Look at what he accomplished with this as a restraint! He also found on his path that being in the boonies also gave him a defence against the huge competitors such as Kmart and Sears. No one took someone who worked in the boonies seriously. That is until it was too late!

My point is that, no matter what you think of WalMart now, that we are predjudiced about the boonies. Smart people in all fields - not the least in Social Media - tend to have a big city bias. We too often over look the boonies and those that live and work there - how could they affect us? We all know that you have to be in the big city to know what is really going on. Of course that is why Warren Buffett is the richest man in the world!

My story today is about a man that you likely have never heard of - who lives and works in a small town that you also may never have heard of. We can never know today if he may become the Sam Walton or the Warren Buffett of media, but my bet is that if he does not then someone like him will be.

My bet is that at the heart of the real social media revolution is that if we do indeed move to a networked world then small communities will be able to stand toe to toe with the big cities.

Meet Brian Hurlburt who lives in Yarmouth Nova Scotia a small port on the southern tip of the province where the high speed ferry comes in from Portland. Brian owns a runs a Web “Something” (Yarmouthcounty.com) that tells the aggregated story of everything that happens in Yarmouth. I call it a web “something” because it is more than a web site - it is closer to the old style of really local newspaper that you might see in a western.

Until Brian, everyone had ignored Yarmouth. The fact that the domain was available told Brian that no one cared. The Province did not care - Yarmouth is off the radar in Halifax. Tourists from the US got off the ferry and drive through town and onto other more exotic places that were better known. (Nothing is really exotic in Atlantic Canada but you know what I mean) The B & B’s were all separated and isolated and could not get their message out.  So were all the social groups such as Church groups. Small business struggled to get noticed and worried about maybe a WalMart coming to town. The social capital of Yarmouth was draining away. At some point, it would no longer be a community at all.

So who is Brian Hulrburt? Is he some flash young techhie? No Brian is a regular guy who knew next to nothing about the web. Everything he now knows about how the web works he has learned by trial and error. All the fears that a church or a B & B may have about the web - he has experienced himself.

Fear is the great barrier that we all have of the new. So how Brian learned and how he is - an open and vulnerable man - is an important key to his success in bringing so many parts of his community together online. He can describe what has to be done in language and in a tone that does not judge or appear mysterious.

He also did not try and monetize the site until it was ready. He had faith that if he was able to reach a critical mass that the money would come. So he also did not carry a lot of costs himself. He could not afford to have costs involved that would force him to force the economics before the time was right.

Is this not the Craigslist model?

What he has been able to do is to aggregate the life of Yarmouth online. Aggregation in a safe and trusted place is going to be one of the key value creation processes in a world of infinite content. By not pushing the economics he has built the trust and now “owns” the space.

The underlying metrics are also emerging that will drive an economic model that benefits not just Brian but all those who inhabit the site.

In 2007 the site had 100,000 visits. Not hits, over 1 1/2 million of those, but real visits. Because of the power of aggregation, all those that live on the site have now access to al this traffic that they could never have reached on their own. The local paper reaches about 20-30,000. So Brian is reaching more and at a fraction of the cost of the paper. He also enables a growing interaction between all parties which is not possible in a paper.

This is more than Google Local or Craigslist - this is a personal aggregation that includes a filtering that is part Brian and part the client. It can therefore be trusted more than a simple mechanical aggregation. It will over time therefore have more value than a simple algorithm.

A growing part of what Brian can now offer his family of clients is the kind of measurement that conventional advertising cannot. Brian is becoming expert in analytics.

Here I think is part of the core of the new economic model. Mass Marketing needed a mass market as there was so much leakage. With no precision possible, as in WWII, only area bombing was possible. So what could a small place do like Yarmouth. Their feeble sums of money wouldn’t even be noise in the larger scheme of trying to get noticed. What Brian can offer is precision - the Long Tail in action. A B & B can see exactly who it is reaching online and can adjust to get a better focus and hence result.

This will kill the mass media alternatives. Niche + precision = high return.

For me the lessons that  I have gained from looking at Brian are these:

  • Niche is where the energy is - the Value will be on the right hand side of the Long Tail
  • Aggregation around niche is where the value is - the more personal the better
  • Precision about what happens in the aggregated niche is what drives the economics and the return
  • Power will shift from the large and diffused to the small and concentrated

I asked Brian “where is it going?” He replied by saying that “The web is changing the world. It is helping us help each other again. We can take charge of our own lives again. I want to be part of this.”

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Enterprise 2.0 and the Chocolate Factory

by Joe McKendrick

Is Web 2.0 a potential peril to productivity? Is there a risk of employees spending their time on the company dime engaged in superfluous online activities, like trashing ex-girlfriends/boyfriends or watching music videos on YouTube?

Both Andrew McAfee and Dion Hinchcliffe have publicly stated that they are seeking examples of serious productivity issues resulting from Web 2.0 deployments. So far, Dion reports, “no one has come forward with a significant story around productivity loss, or misuse of these tools in the enterprise. “We have been unable to hear even one. So far, the evidence is looking favorable.”

Dion had recently joined Beth Gold-Bernstein, my colleague from ebizQ, who hosted a fascinating online panel discussion on the growing convergence between SOA and Web 2.0. Beth and Dion were joined by ZapThink’s Ron Schmelzer, and Doug Wilson, CTO of portals and collaboration products at IBM.

For those managers who fear the ramifications of productivity loss as a result of unleashing Web 2.0 into their enterprises, think back to the first Macs and Windows-based PCs 20 years ago, said Doug Wilson. “When we introduced GUIs 20 years ago, there was the same question. Weren’t we going to waste a lot of time, people moving the mouse around?”

Of course, PCs and Macs had a very different kind of an impact on productivity.

An even more delicious example is employee orientation at a candy factory, Doug added:

“Candy makers indoctrinate people by telling them to eat as much candy as they want off the line for the first day, or anytime else for that matter. After 20 minutes, people will have had their fill.”

Likewise, when a new technology or technique is introduced, it’s only natural for people to try and learn and teach themselves. That’s how human beings learn — they experiment and play.”

Dion also provided this example of how Web 2.0 sweeps through the enterprise:

“AOL rolled out…a very heavyweight content management platform. But users gravitated to a new media wiki platform, the same platform that powers Wikipedia. Within a couple of months, because the tool was so much easier to use, and had been proven on a very large scale, with all the adoption kinks worked out of it in that very large laboratory called the Web… it was successful to the point where 95% of their content management now occurs in those platforms.”

This is a fairly common story, Dion added — analogous to the way the PC came into the back door of organizations 20 years ago.

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One More Good Reason To Read The FASTForward Blog …

by Jon Husband

… is that the contributors to this blog have for the past nine months or more been analyzing and opining upon the issues about Enterprise 2.0 takeup and implementation that are highlighted by this article in today’s ZDNet by Dennis Howlett.

Notwithstanding a substantial amount over the past two years of online and offline "press" about the Web 2.0 and Enterprise 2.0 phenomena and the increasingly participative and interactive online environment (first for consumers and now increasingly apparent as "the" future for the workplace), decision-making about enterprise software in general continues to warily circle the issues involved with implementing community-based collaboration or more broadly defined, "social computing".

You’ll note that in the article (excerpt below) Dennis checks in with FASTForward’s Jevon Macdonald, who is of the opinion that Microsoft Sharepoint may well be the safe, "default" implementation of choice.  Certainly Sharepoint has developed some key alliances over the past year that seem designed to support that point of view.

Here’s a You Tube video (also featured in Dennis’ article .. thanks for the pointer, Dennis) that presents a wide range of views on the question "Enterprise 2.0 -  Hype or Happening?"

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Enterprise 2.0 - Hype or Happening ?

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In the ZDNet article Dennis (and Jevon) make a key point about value propositions.  That said, getting an enterprise IT shop to listen seriously to the value proposition of  a small startup is a key challenge in and of itself, regardless of how good it is.

I also believe (even after a decade or more of general agreement that functional stovepipes and silos are not helpful) that a large number of enterprises do not really know how to come to grips with regular and continuous flows of information across functional boundaries and throughout the organization.  And it’s quite likely they won’t be able to come to grips with using such flows effectively (in any practical sense) until the architecture of their IT systems enables it and supports it, and the management learns, and practices with, using these flows to feed effective collaboration.

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The end of software…

Posted by Dennis Howlett @ 6:43 am

…as you know it. Right now I’m falling over startup vendors vying for attention in the so-called ’social software’ space. The fact enterprise people hate the term doesn’t seem to bother those who are bypassing IT as they sell into the marketing departments of companies at departmental budget prices. But there is a battle brewing on two fronts.

First, we have the mega vendors who think they ‘own’ the enterprise but have little clue what they’re doing when it comes to providing community style collaborative software. As Barry Libert, chairman of Mzinga said to me: “Does Microsoft have a relationship with me? Do any of the ‘monster’ vendors?” Second, we have the startups who are largely making their money by selling social media style solutions to marketers. While the two solution sets may look the same from the outside, they are being bought in fundamentally different ways and are setting up a tension that today is barely felt but which will have a disruptive effect on the software buying patterns of the future.

It is particularly appropriate that Phil Wainewright has penned an article dubbed Enter the socialprise as this plays directly to the themes I am currently exploring.

He says:

But enterprise computing is still designed for the old, stovepipe model in which every transaction took place within the same firm. There’s no connection with the social automation that’s happening between individuals.

[ Snip … ]

I then spoke to another Irregular, Jevon MacDonald who has been working in the so-called Enterprise 2.0 (aka socialprise) space for some time. He said that where the startups fail but where the incumbents succeed is in identifying a specific value proposition within specific industries.

His view is that Sharepoint will be a ‘big winner in the next five years.’ If the amount of noise being made by Microsoft is indicative, then it should be a winner. But…he also says: “Sharepoint deployments are horrendous and I really don’t know why people put up with them.”

I do. They keep IT shops busy.  (Read the whole article here)

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