enterprise 2.0 study

Enterprise 2.0
State-of-the-Art, objectives, consequences &
critical success factors

Table of Contents

1. Background
2. Objectives and participants
3. Key results
4. Conclusion

Wiesbaden Business School 2

Social Media sites are dominating the Internet
Top 10 web sites

03/2006 06/2010
1. Yahoo 1. Google
2. Microsoft 2. Facebook
3. MSN 3. YouTube
4. Google 4. Yahoo
5. AOL 5. Live
6. Ebay 6. Wikipedia
7. Mapquest 7. Baidu
8. Amazon 8. Blogger
9. Real 9. MSN
10. Myspace 10. QQ
Quelle: Nielsen//NetRatings Quelle: http://www.alexa.com
Basierend auf Unique Visitors Basierend auf Unique Visitors


„Enterprise 2.0“ describes the internal use of Social Media to achieve
greater effectiveness and efficiency within companies
Enterprise 2.0 vs. Web 2.0

Social Media
Company- Company-
externally internally

Web 2.0 Enterprise 2.0
• 2003 mentioned in CIO Magazin for • The term was defined in 2006 by
the first time Andrew McAfee
• 2005 made popular by Tim O‘Reilly • It describes the use of Social Media /
• The term describes the changing use Web 2.0 in companies as well as in
of the Internet communication with business partners
and clients
• Internet-Users generate, change and
share information themselves • Areas of application: internal and
external communication, knowledge
• Possibilities of use: wikis, webblogs, management, business process
web forums, social networks etc. optimization, project coordination etc.

Improvement of
Interactive use of
effectiveness &
the Internet
efficiency


But Enterprise 2.0 doesn‘t end with the use of Web 2.0 technologies, it
requires organizational & cultural change
Enterprise 2.0 – A combination of technolgies & cultural change

Use of technologies & tools Organizational & cultural change

+


Table of Contents

1. Background
3. Key results
4. Conclusion


This study concentrates on the organizational & cultural consequences of
the development towards an „Enterprise 2.0“ company
Objectives
Objectice category Precised research questions

• What is a company‘s understanding of „Enterprise 2.0“?
Comprehension • How important do they consider cultural change?

• How many companies work on E2.0 concepts?
State-of-the-Art • To what extent do companies implement E2.0?

• What are objectives?
Objectives • Is the existing potential used?

Organizational & • What organizational & cultural changes are expected?
cultural consequences • What changes have already been realized?

Crititcal success • What factors are particularly critical for success?
factors • What are the biggest risks?


The results of the study are based on the answers of the 281 participants
Participants
Overview of the participants by branch of business Supplemental explanations
• Size of the company:
437 Total respondents − 56% >500 employees
Others − 44% <500 employees
Public sector 7% • Company locations:
9%
− 43% only national
Industry 16% − 57% international
281
• Area of function:
68%
− 42% HR
Service − 16% Management board
− 8% Marketing/PR
− …
not completely
156 analyzable • Gender:
data sets
− 47% female
− 53% male


Table of Contents

1. Background
3. Key results
4. Conclusion


Table of Contents

1. Background
3. Key results
• Comprehension
• State-of-the-Art
• Objectives
• Organizational & cultural consequences
• Critical success factors
4. Conclusion


The majority of participants know the term „Enterprise 2.0“ – but not even
a third can give a precise definition
Comprehension – Acknowledgement of the term „Enterprise 2.0“

No I know and
14% understand
the term
31%

I have heard of it,
but have no precise 23%
imagination of what
it really is

32%

I know the term, but
cannot give a definition


For most of the participants „Enterprise 2.0“ describes the use of Web 2.0
concepts and technologies
Comprehension – Comprehension of the term „Enterprise 2.0“ (1/2)

Use of Web 2.0 – technologies in companies 80%

Use of Web. 2.0 – technologies
61%
in communication to stakeholders

Change in corporate culture towards an open internal
55%
and external communication

Direct participation of employees
50%
in creation, development and repartition of information

Approach of activation of „collective intelligence“
49%
that already exists in the company

Enabling unhindered exchange of knowledge 49%

Use of Web 2.0 by companies
49%
for marketing and PR purposes

Companies that provide Web 2.0 technology
19%
(Facebook, Twitter)

Others 3%


Participants that know and understand “Enterprise 2.0”, see cultural
change as an essential part
Comprehension – Comprehension of the term „Enterprise 2.0“ (2/2)

Acceptance of cultural aspects of those participants that know
and understand the term

…

Change in corporate culture towards
81%
an open internal and external communication • Participants that really
know and understand
Direct participation of employees the term „Enterprise
in creation, development and repartition 74% 2.0“, recognize the
of information cultural aspects in a
much higher extent
Approach of activation of „collective • Obviously it requires a
intelligence“ that already exists 77%
in the company
certain level of maturity
for „Enterprise E2.0“

Enabling unhindered
82%
exchange of knowledge

…


Table of Contents

1. Background
3. Key results
• Comprehension
• Objectives
4. Conclusion


The majority of the participants is already working on the Enterprise 2.0
topic
State-of-the Art – Status

No, we purposely don‘t
get engaged in this topic Yes, the topic is
11% systematically managed
17%

No, we didn‘t give a thought about
this topic yet 26%

29% Yes, but only situational, not
systematically managed

16%
Yes, we are currently
in planning


There is a boom since 2008
State-of-the Art – Development over time (number of Enterprise 2.0 companies)

56%
175+
157

31%

86
13%

9%
6%
37
24
17

before 2006 since 2006 since 2007 since 2008 since 2009 since 2010

Pioneers Early followers Large majority?


Noticeably, companies that work with Enterprise 2.0 since 2007 or earlier,
recognize culture as an essential factor
State-of-the Art – Development over time & cultural change

175+
157

86

37
17 24

before 2006 since 2006 since 2007since 2008 since 2009 since 2010

Rejection
24%

76%
Culture is recognized as an essential factor

Apparently it requires a certain level of maturity for „Enterprise 2.0“ to acknowledge the importance
of the cultural aspect.


The use of Social Media in business has not yet reached the stage of
development of its use in private life
State-of-the Art – Active use of Social Media (privately vs. on business)
75%

70

60 57%

50
52%

40
34%
30% Private use
30 25%

20
20% Usage in companies
18%
16% 15%
10

0
Virtual Communication Exchange Collective Distribution
networking in social of work with of
networks knowledge Collaboration information
in Wikis & Software & news
Forums

Even the rate of private use of Collaboration Software is higher!


Table of Contents

1. Background
3. Key results
• Comprehension
• Objectives
4. Conclusion


Enterprise 2.0 focusses mainly on knowledge and innovation – it is not
supposed to satisfy employee interests
Objectives

Providing implicit knowledge 51%

Improvement of the storage of knowledge/information 49%

Increase in the ability for innovation 39%

Improvement of the company‘s image (externally) 39%

Identification and activation of unused potential of employees 37%

Improvement of internal coordination 36%

Improvement of the recruiting of new employees 31%

Closer customer relationships, direct communication to customers 27%

Increase in identification of employees with the company 23%

Improvement of employee motivation 14%

Increase in employee satisfaction 10%

Improvement of the employee‘s Work-Life-Balance 7%

Others 3%


Table of Contents

1. Background
3. Key results
• Comprehension
• Objectives
4. Conclusion


As a consequence of Enterprise 2.0 activities a more open and innovative
corporate culture is expected
Organizational & cultural consequences (expected)

More open communication 63%
More open access to information 53%
More intensive cooperation between areas and departments 48%
Improved innovation culture 41%
More possibilities for virtual working 31%
Higher degree of autonomous self-monitoring 29%
Less physical meetings 26%
Less rounds of approvals 23%
„Indistinct“ separation of private and business life 20%
More decentralized external communication 17%
Flatter hierarchy 13%
More cooperative leadership style 11%
More possibilities for participation concerning strategic decisions 10%
Encouragement of entrepreneurship 9%
Others 2%


The expected organizational & cultural consequences are only partly
realized – especially concerning innovative culture
Organizational & cultural consequences (expected vs. realized)

More open communication 63%
48%
More open access to information 53%
30%
More intensive cooperation between areas and departments 48%
29%
Improved innovation culture 41%
13%
31%
More possib ilities for virtual working 29%
29%
Higher degree of autonomous self-monitoring 17%
Less physical meetings 26%
22%
Less rounds of approvals 23%
15%
„Indistinct“ separation of private and business life 20%
25%
More decentralized external communication 17%
9%
Flatter hierarchy 13%
5%
More cooperative leadership style 11%
6%
More possibilities for participation concerning strategic decisions 10% Erwartet
8%
Encouragement of entrepreneurship 9% Realisiert
6%
Others 2%
2%


Table of Contents

1. Background
3. Key results
• Comprehension
• Objectives
4. Conclusion


The most critical success factor for Enterprise 2.0 projects is the
exemplification of an „open“ culture by the corporate management team
CSF No. 1: Exemplification of an „open“ culture by the corporate management team

Required implementaion measures:

Exemplification of an „open“ culture by the corporate mgmt. 72%

Specific & more active informing of employees 51%

Encouraging of independent working 39%

Implementation of training programs (managers) 39%

Implementation of training programs (employees) 39%

Recruiting of managers that live the Enterprise 2.0 culture 37%

Recruiting of Web 2.0 affine employees 35%

Adaption of company‘s guidelines 34%

Recruiting of employees that live the Enterprise 2.0 culture 29%

Removing of organizational hierarchy levels 9%

Others 3%


In many companies a clear and central responsibility for the topic is
missing – the corporate management is only rarely in the „Driver Seat“
CSF No. 2: Definition of clear responsibilities
Enterprise 2.0 responsibility:

Everyone that is concerned with the topic 27%

Marketing department 14%

Department of strategy, planning and organization 11%

HR department 9%

Enterprise 2.0 project 7%

IT department 7%

Corporate management / management board / owner 6%

Company communication 3%

The company department „Enterprise 2.0“, „Web 2.0“ 2%

Others 2%

None 4%

Not applicable 8%


It is also critical to maintain control – especially companies that are
already working on Enterprise 2.0 recognize a high risk of losing control
CSF No. 3: Maintenance of control

Enterprise 2.0 risks:

44%
Risk of loss of control
15%
31%
Risk of a decrease in productivity (for example through chats, blogs etc.)
18%
30%
No measurable use observable
31%
27%
Risk of losing know-how
13%
17%
High implementation costs
12%
10%
Risk of losing authority
10%

Companies that are working on E2.0
Companies that aren‘t working on E2.0


Table of Contents

1. Background
3. Key results
4. Conclusion


The key results of the study can be summarized as follows
Conclusion

• Despite the facts that many companies know the term „Enterprise 2.0“ and that there is a
boom since 2008 – many companies have not yet realized all consequences of E2.0

• To activate the existing knowledge within the company a rethinking in the heads of the
employees and especially the managers is required

• The study shows that the importance of cultural changes as well as the risks of E2.0
are often only recognized with a certain experience and a certain level of maturity

• The creation of an “open” culture that enables the company to activate the collective
intelligence in combination with the protection of key competitive knowledge will be
the key challenge on the way to become an real Enterprise 2.0 company


Finally, I would like to give you an Enterprise 2.0 definition based on our
study results
Conclusion – Definition of “Enterprise 2.0”

„Enterprise 2.0“ describes companies that use Social Media concepts and
technologies internally and with business partners.
The objective is the activation of the collective intelligence through the direct
involvement of different stakeholders in the creation, processing and
distribution of information and knowledge.
The transformation to an „Enterprise 2.0“ goes hand in hand with a cultural
change towards an open internal and external communication.


Feel free to contact us
Contacts / Authors

Prof. Dr. Thorsten Petry
Organization & HRM
Wiesbaden Business School / Hochschule RheinMain
thorsten.petry@hs-rm.de

Florian Schreckenbach
Managing Director
Talential GmbH
florian.schreckenbach@talential.com


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