The document discusses the transition from traditional systems of record used for transactions to new collaborative systems of engagement. It outlines four key phases of technology disruption over the past several decades and how consumer technologies like social media, broadband, and mobile are now influencing enterprise systems. The document advocates that organizations invest in new collaborative systems of engagement that are mobile, social, ad hoc, and real-time to better engage employees. It provides examples of potential new enterprise systems and outlines steps organizations can take to identify priority opportunities and pilot new systems of engagement.

1. Digital Impact
From Systems of Record
to Systems of Engagement
DigitalNow!
April 26, 2012

2. Technology Megatrends
Decades of Disruption to Business as Usual
• 1980s
• Personal Computing, Office Automation
• B2E - documents, presentations, financial analysis
• 1990s
• Internet, ERP, Worldwide Web
• B2B – outsourcing, globalization, business networks
• 2000s
• Broadband, Mobile, Social Media
• B2C – media & entertainment, communication, branding
• 2010s
• Digital commerce, Collaborative Systems
• B2B2C – advertising, retail, customer service
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3. Two Types of Business Network
O C
YOU
Collaborative Coordinated
Networks Networks
• High complexity • High volume
• Relationship oriented • Transaction oriented
• Outgrowth of project teams • Outgrowth of value chains
• Organize around an • Organize around a
orchestrator concentrator
• Focus: expertise, innovation, • Focus: efficiency, speed,
and market development and adaptability
Disney Films Disney Theme Parks

4. Two Types of IT Leverage
O C
YOU
Collaborative Coordinated
Networks Networks
• High complexity • High volume
• Relationship oriented • Transaction oriented
• Outgrowth of project teams • Outgrowth of value chains
• Organize around an • Organize around a
orchestrator concentrator
• Focus: expertise, innovation, • Focus: efficiency, speed,
and market development and adaptability
SYSTEMS OF SYSTEMS OF
ENGAGEMENT RECORD
New Familiar
Idea Idea

5. Systems of Record
The Story of Enterprise IT in the 20th Century
• Transaction systems for global commerce . . .
• Financials, Order Processing, Inventory, HR, CRM, Supply Chain
• Mainframes, minis, client-server, PC, Internet-enabled, SaaS
• Drove three decades of investment
• Databases are at the center of these systems
• OLTP and Business Intelligence have been the key drivers
• Network is seen primarily as a transport mechanism
• Y2K put the capstone on this trend
• Pulled forward a half decade of investment
• Enterprise IT has had to go through a long “digestive” period
• Focus in past decade has been on efficiency investments

6. IT Innovation: 2000 to 2010
Enterprise IT Consumer IT
On a Diet On Fire

7. Redefining IT for Consumers
The Digitization of Human Culture
• Access
• Infinite content, no barriers to entry, no barriers to exit
• Communications are globally democratized
• Microsoft, Google, Facebook, Wikipedia, OpenTable
• Broadband
• Pictures, video, shopping
• Internet touches both the mind and the heart
• Skype, iTunes, YouTube, Hulu, Netflix, Zappos
• Mobile
• PC for the emerging markets
• iPhone and iPad set the bar in mature markets
• IM, email, camera, game, wallet, magazine. . . even a phone!
How will this impact enterprise IT?

8. B-2-B “Enterprization” of Consumer IT:
Investing in Collaborative Systems of
Engagementburden falls on the middle of the organization
• Collaboration
• Not front-line workers engaged in transactional workflows
• Not top executives engaged in strategic issues
• Need to invest in “IT for the middle tier”
• In-the-moment empowerment through Systems of Engagement
• On-demand access to Systems of Record as required
• Systems of Engagement must meet four key design goals:
• Mobile to be in the moment
• Social to share facts and insights with others
• Ad Hoc because that’s how issues emerge
• Real Time because that’s when issues get resolved

9. Enterprise Systems of Engagement Who knows
Communication & Collaboration the head of BD
at IBM?
Can you help me
promote this in • Enterprise Facebook
my community?
• Enterprise YouTube How much did
we spend on
Let’s make sure • Enterprise Search this last year?
everyone registers
for this in the • Enterprise App Store
same way! Let’s keep the
• Enterprise Twitter
buzz going!
• On demand conferencing
We need all
hands on deck, • Global presence detection
right now! I need to talk
• Mobile access to everything to Sherry—
where is she?
• Social content management
Let’s look at
the data and • With more revolutionary What is the
sentiment on
get Larry to applications to come . . . . this in our
walk us thru it
community?
This is the “enterprise-ation”
of consumer IT

10. Technology Disruptions
When Will Your Organization Make the
Transition?
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11. Adoption Dynamics
How Will the Transition Unfold?
Power Performance
Gear Gear
Virality? How many?
Churn? ENLISTMENT ACQUISITION How soon?
Starter
Motor
Performance Power
Gear Gear
What ROI? MONETIZATION ENGAGEMENT
How often?
What IRR? How much?
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12. Focusing to Accelerate Adoption
Where Should the Transformation Start?
• Every customer-facing strategy is made or broken during a
handful of moments of engagement—what are yours?
• What person or system represents you in these moments, and
how effective are you at meeting the new expectations?
• Where could you introduce systems-of-engagement capabilities to
amplify your organization’s power at these specific moments?
Use these questions to target your first
project on a moment that matters

13. Final Takeaway: A To-Do List
How Could I Go About Putting This into
Effect?
1. Review your strategy and identify your top-priority moments of
engagement.
2. Determine what systems of engagement would have the biggest
impact on your effectiveness in these moments
3. Assess your organization’s Technology Adoption style and
calibrate your ambitions accordingly
4. Identify your early adopters and recruit them to this effort
5. Engage with outside help to design and prototype your first
systems of engagement effort
6. Focus on user experience as your critical acceptance criterion
7. Use anecdotal feedback from early adopters to create the case
for crossing the chasm to widespread pragmatist adoption
8. Focus the pragmatist investment case on a critical pain point, and
do whatever it takes to put that issue to bed
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14. gmoore@geoffreyamoore.com
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