Interactive Austin – Dion Hinchcliffe – Opening Keynote

don-hinchcliffe Dion Hinchcliffe from Hinchcliffe & Co opened Interactive Austin 2009.

Dara Quackenbush opened the event and Hinchcliffe (twitter link) took the stage.

Enterprise 2.0 isn’t a boring topic in today’s economic climate.  He informs us that his presentation will give us a panoramic perspective as well as how are we relating new modes of collaboration and communication using enterprise 2.0  and what kind of results are people are getting.

These tools are not “nice to have”, rather imperative for businesses.  It truly gets to the heart of servicing customers.

He writes and analyzes this topic on zdnet zdnet and  founded Web 2.0 university.  

web-university

The network is moving so quickly, the terms, the technology concepts are moving so fast.  He developed Web 2.o U so that businesses don’t get left behind.  

Enterprise 2.0 is really an exploration of new ways of doing old things.  Start by examining economic, social and cultural models.  Then ask “how do we take this and affect our businesses in a good way?”.   Go on to to build sustainable business models and provide evidence that they work (or debunk them…or confirm that they are promising).

A Map of Opportunity flashed on the screen which included

  • Innovation
  • Growth
  • Transformation
  • Cost Reduction.  

Organizations are facing at least one area of challenge, if not all.

amazonFor example, Amazon has been doing extraordinarily well in map.  They are interactive – quickly becoming one of the most successful companies today.

Hinchcliffe touched on Jakob’s Law in the Growth area (users spend most of their time on other sites).

dollar-signHe began to discuss network effects such as customer relationships and how to use enterprise 2.0 to help your company grow and increase your bottom line.  

There’s been a major shift – Who creates the value?  Our customers do.  Companies are outnumbered by it’s customers.  Your customers are on the network, so let them create the value.  

Another topic touched on was how intellectual property works and using open supply chains and community-based processes and relationships.   By bringing it into enterprise 2.0, it increases your transparency and openness.  

youtube1Also, open source software has moved into the media space.  For example,  YouTube has more viewers on a given day than all viewing medias combined.  Even more powerful is that this is all free content for YouTube.  

By looking at your business through the Enterprise 2.0 lens, you can broaden your horizons about what is possible.

Blogs, Twitter, and Facebook – these tools just scratch the surface of what is possible.

When evaluating candidates (tools/resources) – what will help you?  What’s cheaper, better, innovative?

The challenges you may face when adopting enterprise 2.0 methods and tools are:

  • cultural chasms
  • disruption
  • cost
  • risk
  • difficulty
  • repeatability.  

The model will flatten everything.  Social media tools allow anyone in the organization to circulate their ideas (which can create uncomfortableness).  

There may also be a concern about spending money on new things – when really the new things are more cost effective.

Come to an understanding of how that works.  Tap into the network and leverage your business.  We have to change our thinking.

When rating the social media contenders you have to weigh the challenges against the repeatability (which I took to mean, it might be challenging to produce and publish the information, but once it’s complete, the repeatability factor will actually end up saving you time) and weigh uncertain results versus the proven benefits.

The network is a big place today and includes customers, competitors, ideas, and innovation.  

Fortunately, there are a few proven strategies for long-term competitive advantage

Stats show that 1/3rd of businesses globally have and use social media tools already.  In North America, email & search are the only tools ahead of socal media.  In much of Europe, only search is used more than social media (social media is used more than email!)

Tools to improve bottom line include:

  • online community
  • crowdsourcing (vs outsourcing)
  • cloud computing
  • product development
  • enterprise 2.0 and open business models
  • 2.0 development platforms.  

The network is the world’s largest marketplace.  The rest of the world will interact with these areas of the company if you’ll let them (my example of what I think he meant here – your customers are on the network…the rest of the world will interact with them if you will empower them – connection, resources, referrals) 

The new business models are:

  • network effects
  • peer production
  • self-service
  • open business models
  • new social power structures

Your customers are already going off and doing what they want – give them tools to empower themselves.

Network effect is:

  • postal mail
  • phones
  • email
  • instant messaging
  • web pages
  • blogs
  • anything that has an open network structure 

Your network node is to potential connection.  Connection established by push or pull (more on that below).

Web 1.0 era was central production & institutions.  
Web 2.0 is peer production & communities of individuals.  
The output is unpredictability, variety & volume.

For people who say they are too busy to blog, Hinchcliffe says that the reason you’re  so busy is cause you aren’t blogging.  You are the expert – blog it.  Calls, emails, questions…can be handled on your blog.  Provide links to blog posts covering frequently asked/discussed information about your products, services and field of expertise.  

Emergent, freeform, social applications are primarily to improve the collaboration problem.  

The use of blogs and wikis are to capture institutional knowledge, make it discoverable and let structure and organization emerge naturally.  

yammerHe mentioned Yammer as a way to get the Twitter experience inside your organization.   Be globally visible and provide instant collaboration between employees, partners and customers.  This leaves behind highly reusable knowledge and puts workers into central focus as contributors.
expert1
There are case studies verifying significant levels of productivity and innovation.  Remember that the ones in your organization that are putting out the information become the de facto expert, the influencer, and people come to know them as a knowledge base.

Perceived benefits of enterprise 2.0 are:

  • knowledge retention
  • adoption of knowledge management tools
  • emergent structure and processes
  • increased transparency
  • less duplication 
  • a higher level of productivity.

Why enterprise 2.0 is different:

It provides a maturation of techniques that leverage how people work best
A realization of the power of emergent solutions over pre-defined solutions
There are nearly zero-barriers to use.  It’s low cost.  It’s network effect driven.  

When taking a look at organizations, there are Push vs Pull Based Systems – Push is top down, centralized prescription – Pull is Bottom Up decentralized emergent solutions.

Taking a look at communication channels – the phone, instant messaging and email are interruptive (immediate)……Enterprise 2.0 blogs, wikis & others are non-interruptive (synchronous).  

By using the non-interruptive methods, when you want the information you can go get it.  

You can replicate a 15 person conference call by doing it as a virtual conference.  It’s more efficient and a more natural way of doing business.  Imagine thousands standing by while one person talks (conference call) versus thousands accessing information in a convenient, interactive way.

The enterprise is not the web.  The enterprise ecosystem would be social media applications participating with peer produced knowledge connected to enterprise mashups supported by internal applications.

industrial-revolutionThere have been two revolutions – Industrial is one, where machines were built to replace manual labor.  Information is another, where we automate via technology.  

Today, we do stuff that can’t be automated.  About 40% of what we do is on demand (figuring it out as we go in order to achieve a desired result – in some cases, never replicating that action).  Enterprise 2.0 has the potential to increase productivity of complex interactions.

Benefits of enterprise 2.0 are:

  • more awareness
  • transparency
  • feedback
  • collective intelligence
  • knowledge retention 
  • and more.  

Anyone can participate.  The more open you make it, the more you get back.

Majority of global 2000 firms are now buying web 2.0 tools.  (only 20% of small co’s are – but it’s changing)

Major case studies now exist and most results are very positive.  Most of old concerns aren’t happening (such as information being stolen and replicated).

Enterprise 2.0 methodology is repeatable, with medium risk, a proven benefit, and a rapid ROI.  

He touched on the Transunion example of how $50k was turned into $2.5 million in savings within 5 months by adopting enterprise 2.0 methodology (reference articles here and here)

Online Community = social media and collective intelligence.  Amazon figured out early on how to convert users (buyers) into community by creating a review system.

Three spheres of web strategy – Community, Business & Technology – long term planning of a website must balance each sphere.

Customer engagement today is much more than products and their marketing campaigns.  

Customers can create strong, highly engaged communities on their own.  

These are people who care about a product or brand, and can now meet, share ideas, socialize and help each other.

yattitThey are little vertical communities.  Hyatt’s Yatt’it community is an example.  These become an ideal vehicle for collective intelligence.

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Shannon Aronin also recapped this keynote on her blog.

Visual Innovations, a sponsor of the event, captured Hinchcliffe’s keynote on video.  
Click below to launch the player & view. 


One response to “Interactive Austin – Dion Hinchcliffe – Opening Keynote”

  1. Interactive Austin Keynote Videos | The Pragmatic Contextualist

    […] already are keynote coverage posts by Ricci Neer, for each Dion Hinchcliffe, Sam Lawrence and whurley. (Additional coverage of the first and second breakout sessions can be […]

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