Archive for April, 2009

Social Media for “Real Business”

Social mediaI will start with an anecdote. It was the last session of my IS MBA course and I was talking about all the new and exciting developments surrounding the rise of Web 2.0. The class was going well till one of the students, in fact a really good student, raised his hand and fired a question. How is it, he asked, that we’ve spent almost the entire course discussing serious stuff – IT governance, ERPs, outsourcing etc. – and now all of a sudden we’re talking about Twitter, Facebook, and Steve Balmer’s blog. What does it all have to do with REAL business?  …I did come up with some sort of an answer, of course, but the question stuck with me.

A few months ago we launched a research project that hopefully will help me do much better next time I’m asked this
question.
The project is run jointly by IESE, Henley Business School (UK), and Rochester Institute of Technology (USA), and is sponsored by Cisco. The idea is quite simple – we want to get a better grasp of the what, why, and how companies employ Web 2.0 and social media tools to collaborate across traditional organizational boundaries. Five areas are of particular interest to us: (1) what initiatives companies engage in, (2) what audiences they interact with, (3) what tools they deploy, (4) what governance mechanisms they put in place, and finally (5) what kind of impact that they observe …or don’t observe.

The project is still in the early stages but we already have a number of very interesting participants. They come from a
variety countries and range from the stalwarts of traditional economy (3M, Xerox, Emerson) to banks (Bank of America, La Caixa) to educational institutions (Arizona State University, Academy of Executive Coaching) to online ventures (LinkedIn, Viadeo, Tempero). And this is just the beginning. If you have an interesting story, please join us. Social media is all about openness. So, let’s be open about how we can use it to improve the way business is run. Everybody is going to benefit in the end.

Mobility 2.0

These are tough times for many. Countries are struggling with debt, people get laid off and entire industries are being wiped out. So the news three days ago that Nokia’s profit last quarter slumped by 90% may not come as a particular surprise.

Nokia is suffering from a slump in consumer demand, not alleviated by a parade of new products. These include new handsets (which, some say, look suspiciously like spruced-up versions of some old ones) and Ovi, its new music, maps and more internet portal.

Nor is Nokia suffering alone. Its mobile industry cousins, the operators, have long fretted about becoming merely “dumb pipes, through which traffic flows but someone else gets the real money (much like you access the internet through your local internet service provider, yet it is Google with its online services who earns billions). New customers, an important engine of revenue growth in the past, are rarer, and ARPUs are stagnating despite a surge of creativity from marketing departments.

Yet, just as countries that were slow to implement structural reform are now painfully discovering, it might not have been that bad. Many of the mobile industry’s real and as yet imaginary woes come from being overwhelmingly exposed to the capricious consumer market. At this year’s Mobile World Congress, the industry’s largest get-together, only one out of nearly 30 sessions was devoted to enterprise solutions.

Mobility and enterprise IT seem to be in denial about each other. IT departments are staffed with people who know, well, IT. The IT industry obliges by providing them with applications that cater to companies’ business processes and with ways to deploy and manage these applications enterprise-wide. It listens to the desires of companies and makes new software in tight integration with them. In other words, IT needs of companies are well understood and catered for.

What of the mobile industry? Innovation even in the consumer market looks sporadic: companies (particularly mobile operators) churn out hundreds of applications and services in the hope that some will stick. Mobile video conferencing was a failure; the fate of music download subscriptions bundled with phones remains to be seen. Apple’s much-touted AppStore brandishes its billionth download just nine months after opening, but look at what downloads are these: a Native American flute simulator, a flight game and an application that imitates an x-ray machine. Small wonder enterprise IT isn’t particularly excited in embracing mobility. Of course, there have been successful enterprise mobility implementations, and employees have welcomed mobile e-mail. But by and large, mobility hasn’t got deep into internal workings of the enterprise.

Opportunities for mobility in the enterprise may be huge. By weaving itself into business processes, the mobile industry will be less exposed to the now-you-see-it-now-you-don’t demand from consumers. But the industry should take the task of understanding the needs of the enterprise — and indeed, of individual consumers for that matter — seriously. They should also start making their way into enterprise IT departments. At the moment mobility and enterprise IT look like two distant and overly polite relatives at a big party: both know they are kin, but neither dares to start a conversation without proper introduction.