Friday 4 March 2011

Why the time is right for the Networked Enterprise

Here I blogged about the cloud as an enabler for the ‘networked enterprise’.

The reasons why I think the concept will take off now are:
  1. The emergence of truly collaborative platforms that leverage the enterprise network.
    (Disclosure: I’m the owner manager of http://www.sabisu.co/)

    Only now is the technology in place; social business software (or Web 2.0 or Enterprise 2.0) situated in the cloud is the only way for the networked enterprise to return value.

    Without these technologies enterprises are back to building specialised point to point bridges with increasing expense blocking implementation and complexity nullifying returns.

  2. Studies are beginning to show the benefits of deploying web 2.0 and cloud technology; this should convince the pragmatists that the emphasis in ‘social business’ is on the ‘business’ part. Until this point, they've had ample anecdotal evidence to belittle the impact of social networking. It's the arrival of studies like this that should change things.

    Of course, the social networking side of things is important but without point 1, the collaboration platforms, you've got nothing better than LinkedIn (which is great, but to a point). If the 'networked enterprise' concept is going to return value, you need the collaboration capability too.

  3. People are ready; Facebook/Twitter/LinkedIn have rocketing user numbers – each of those users is getting a starter course in the power of the network and the ease of using a web 2.0 application. Collaborating with a user in another organisation isn't scary when you've already LinkedIn with them...and even if you haven't, the very existence of these platforms gives you the permission to work beyond your organisation - the psychological barrier has been removed, so the boundaries fall too (as explored in Malcolm Gladwell's The Tipping Point).
  4. Corporates are (almost) ready:
    • Deperimiterisation is coming as Execs start to drive adoption of ‘consumer’ technologies (oh go on, I’ll mention the iPad) in the enterprise. This removes a psychological boundary; they expect at work what they get at home, but crucially vice versa.
    • Savings seduce: IT departments are seeing the time, cost and hassle savings. If an end user can get the service they need direct from the cloud - and for very low cost - then the temptation is to stay out of the way.
    • Corporates are beginning to understand that the biggest security risk is people, rather than some esoteric hack attack.
    • Corporates understand that the ‘cloud’ is an extension of ‘vendor hosted’ and generally they have experience of this already. So it’s not too scary.
Of course, there are obstructions and gaps which will slow adoption. But those who do adopt will have a significant competitive advantage - and now for the first time, they can.