By now the Forrester report stating the potential of the Enterprise Social Networking has been widely distributed and read. In short Forrester states, “Enterprise 2.0 will become a $4.6 billion industry by 2013 and social networking tools will garner the bulk of the money”. This statement reflects that we are at an inflection point where social applications, once considered to be the domain of the consumer Internet world, are rapidly being embraced by the enterprise. Why? Because in a hyper competitive global environment and a flattening global economy, agility and collaboration are critical factors for an enterprise to be able to compete and succeed. This new model for cross enterprise communication, “Agile Communication” is described in this ReadWriteWeb article.
In contrast to this, enterprises still largely are both not adopting the existing public social networking applications for enterprise collaboration applications or in many cases not allowing individual employees to leverage such applications for individual use. Oliver Young, a Forrester Analyst, summarized this well as follows, “When big business is unable to stem the use of Software as a Service tools and things like social networks by employees, rather than allow untested software and services on their networks, they will “mitigate risk by deploying enterprise-class tools in their stead.” In August of 2008 Gartner analysts Anthony Bradley and Nikos Drakos sparked a fierce debate by suggesting that “social apps be allowed in enterprises with the caveat that businesses craft a trust model” (ReadWriteWeb article). A survey by Challenger, Gray and Christmas of more than 200 HR managers discovered that up to 1 in 4 enteprises blocked complete access to public social networking applications and a study by Barracuda Networks found that 50% of clients using their web filtering device completely blocked access to popular public social networking applications.
So what is an enterprise that is serious about embracing social applications across the enterprise to do? The answer to date has been a relative hodge podge of solutions and led to a highly fragmented market in which legacy enterprise application vendors including IBM and BEA are social enabling their legacy software and a host of “private label” intra enterprise social networking applications that get deployed behind the firewall have emerged. Today, a new Twitter like application designed for intra-enterprise use, Yammer, http://www.yammer.com, was announced at the TechCrunch 50 event and another called Socialcast also recently launched. The logic is that by utilizing these applications and deploying them behind the firewall, the security, manageability, and control concerns that enterprises have with respect to public social networking applications will be negated while the enterprise will get the same collaborative benefit.
Unfortunately by embracing these enterprise specific social applications, the enterprise is not considering the following:
- Over the past 5 years hundreds of millions of dollars of VC funding have poured into building world class, highly robust functionality at the public social networking application level and the consumerization of technology means that consumer software advances are now outpacing enterprise software advances.
“Fifteen years ago, enterprise technology was higher-quality than consumer technology. That’s not true anymore. It used to be that you used enterprise technology because you wanted uptime, security and speed. None of those things are as good in enterprise software anymore [as they are in some consumer software]. The biggest thing to ask is, “When consumer software is useful, how can I use it to get costs out of my environment?” – Douglas Merrill, CIO for Google from a Wall Street Journal article March 18th, 2008.
- The use of existing public social networking applications continues to explode (as of August 2008 Facebook has reported more than 100 million users as reported by Facebook)
- The over 40 year old professional segment is the fastest growing segment utilizint these applications
- As more Gen Y/Millenials enter the work force they will bring these applications into the work place with them
- A survey by Coleman Parkes recently found that “more than 75 percent of companies worldwide admit that social networking will come into the business by stealth mode if not proactively managed”
- Importantly, a social application deployed behind the firewall does not include one key characteristic that public social networking applications offer; namely access to a broad network of professionals, experts, and contacts beyond the four walls of the organization
So in short, powerful social networking applications that will meet the enterprise demands as enterprise evolve to a social application/collaboration model are publicly available, expanding in feature/capability sets rapidly, are now using standards such as OpenSocial, OpenID, and Oauth, and are familiar user experiences to both professionals and incoming Gen Y employees. Additionally, whether or not enterprises leverage such existing public social networking applications, they will be brought into the enterprise one way or another by individuals to enhance their own ability to collaborate and be productive.
So what is the answer. In short, technology needs to be developed at the intersection point between the existing public social networking application layer and the enterprise user behind the firewall. This technology must give the leadership at the enterprise and within the IT group the ability to truly have control over connection security, control over data, control over who uses solutions and for what purposes and with what level of access, and finally the ability to integrate data from public social networking applications to existing legacy applications. This is truly the missing element that will allow the enterprise to unlock the potential of the public social networking infrastructure and put it to use as corporations seek to become more agile, more competitive…to become Social Enterprises.