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The difference between consumer & enterprise software

By | October 27, 2011, 1:56pm PDT

Summary: There’s lots of confusion around enterprise and consumer technologies and their use models

A ‘consumer‘ is primarily a label for any individuals or households that use goods generated within the economy.

(The 13th century early origins of the word are derived from ’squanderer’ and in more recent history the word is associated with folks flocking to shopping malls, as the 1990 era artifacts in the photo above by Michael Galinsky illustrate, with modern economists claiming the more they show up and spend there the healthier the economy is).

An ‘Enterprise’ is comprised internally of a whole bunch of people working together to try and make enough money to go to the mall - or these days shop online - and keep a roof over their head. Organizing these people to stay motivated and focused to do the job they are supposed to and grow the business so everyone keeps their job and get paid more requires complicated technology.

Ok I’m being simplistic and facetious, but there remains a remarkable lack of understanding of the different whims and needs of the individual and the work requirements for employees to collaborate in a business.

I’ll  be debating ‘Pushing the Limits of the Consumerization of IT’ with Robert Scoble moderated by Larry Seltzer at next month’s Silicon Valley edition of the Enterprise 2.0 Conference where I’m also chair of the ‘People, Culture & Internal Communications‘ track..here’s some thoughts to kick that off.

Consumer technology is almost invariably aimed at the individual, while enterprise software caters to large and complicated organizations with many different processes and connections. Remember all those early ‘1.0′ mobile phones with incomprehensible user interfaces - weird little icons and features that only sort of worked? Web 2.0 and mobile placed a high premium on consistency and ease of user experience, such as one click shopping on Amazon and mobile interfaces that are a pleasure to use wherever you are.  We’re going through a huge technology usability revolution…but in comparison the underlying technology that powers enterprises has the complexity, security and failover requirements of multiple nuclear power stations.

These mission critical systems are the infrastructure thousands of people work on and in and are absolutely fundamental to the way businesses work and have historically been extremely clunky to use. Most consumer applications do a small number of things well, whether as a mobile app or a 2.0 website. The iPad is a whole new genre of consumption and lightweight communication device which has been in existence since April 2010, has spawned an array of competitors and is probably the current poster child for ‘consumer in the enterprise’.

Apple, with their terrific hardware industrial design and styling coupled with easy to understand and use, reliable and efficient user interface and underlying operating system have led the operating system fashion pack since Microsoft’s Windows Vista failed to take off after the XP generation. Apple have never been interested in the complexities and limitations of serving enterprise customers however - there is a huge, ripe market for bleeding edge consumer technologies, as the willingness to put up with short battery life on iphones in exchange for cool new features illustrates. (I have an LG mobile phone whose battery lasts for days and an iphone which on a good day lasts twelve hours: guess which one would be useful in an earthquake…)

Enterprises provision technology for enduring use and to fit a complex set of needs for a reasonable price - historically that has lead to a lot of ‘check the boxes’ behavior in selecting suites of products that all to often have nominal features in them to satisfy requirements. This can be not unlike those disappointing holiday gift baskets we sometimes get around this time of year - full of straw and nicely designed boxes containing tasteless, cardboardy versions of salami, cookies or whatever.

There is no question of course that the combination of broadband internet, software as a service, Cloud hosting, improved mobile connectivity and the shift to online shopping has had a massive impact on all aspects of our lives both as individuals and working together collectively, spawning ever greater access to information and publishing.

However, managing people in an enterprise is very different to within a small business, which is typically much more exposed to the ‘outside world’ and running on a lean profit and loss model. Large enterprises can feel like a separate universe once you’re inside the culture with no sense of how the company is doing outside of corporate communications and the media.  A few years of the hierarchy, along with your budget allocation, goals from above, problems below and the internal rat race (never to be underestimated) can cause you to loose touch with ‘the outside world’, with many pining for a more entrepreneurial existence outside of the secure but restricted world they live in.

Drucker’s fabled ‘knowledge worker’ - created in very different times and much referred to by academics and software marketers - is sometimes in danger of being confused with senior decision makers, who are often to be seen consuming concise information prepared for them by their underlings on ipads. Workday have done a terrific job with their new iPad app (”…Navigate the organization using Workday’s unique organizational swirl to navigate the organizational structure and drill in on an individual worker’s profile. Get insight into how the business is running with interactive analytics on Workforce Planning, Compensation and Talent Management“) but we are still mostly talking about using ‘consumer’ style apps to drill down into pre-prepared (by people living all day in Workday and other HR application), existing and meaningful information for decision makers.

The difference between origination of information and its consumption and dissemination can be dangerously blurred as anyone who has slaved over creating something and then losing the credit for it knows all to well. We have an ongoing problem with the ’social’ web of information flipping - an almost manic daily easter egg hunt where people skate across the internet finding nuggets of new information and exposing it to their online networks for personal exposure and credibility building. As I write this Isaacson’s biography of Steve Jobs (now available for your Kindle!) has fragmented into a million partworks on blogs: basically found-in-the-book nuggets of information on a given theme embedded across multiple pages. This isn’t ‘knowledge work’ of course, this is good old fashioned hustling for page views.

Throwing out fashionable ideas in presentations of any type, whether your own or not, isn’t new of course, but has never been easier than today whether inside companies or online. In the work environment when the going gets tough the agile have moved on in your worst case ‘left holding the baby’ scenario at work - we’ve all been there…

More fundamentally though the whole notion of ‘Facebook in the enterprise’ social networks inside your company relies on quality original information input by individuals for greater collaboration and not the massive social climbing frame individuals often use their external networks for. Managing people to achieve these goals - and hiring the right people to concierge the communities - is often misunderstood as an afterthought. Technology is improving in leaps and bounds around consistency and usability but never confuse that with the way we shop as individuals.

At this point in history Workday’s iPad app is available free to the individual through iTunes, which has replaced several stores in the mall for ‘music, movies, tv shows, apps and more’ to quote Apple’s website, which says a lot about where we are in the arc of commercial maturity. As a former user interface designer I’m very enthusiastic about any design work that makes life easier for those whose job revolves around an application - data entry and configuration for example. don’t confuse that with drilling down into that info to consume it from an attractive dashboard on your sexy new tablet between restaurant courses. That’s a whole different use case…

Photo from Malls across America series from Michael Galinsky/Kickstarter

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Oliver Marks provides seasoned independent consulting guidance through the Sovos Group to companies on the effective planning of 'Enterprise 2.0' strategy, tactics, technology decisions and roll out.

Disclosure

Oliver Marks

Oliver Marks professional work is defined by an objective viewpoint of the broad spectrum of vendors and options available to his clients and readers of this blog. Oliver provides an impartial perspective of vendors and is focused on contractual affiliation with clients in order to select appropriate solutions. As such he has no business relationships with the companies or services he recommends. Oliver is a founding partner of The Sovos Group. The opinions, concepts and views put forward in this blog are solely those of Oliver Marks.

Biography

Oliver Marks

Oliver Marks is a founding partner at SovosGroup.com which provides seasoned independent consulting guidance to companies on the effective planning of 'Enterprise 2.0' strategy, tactics, technology decisions and roll out.

With extensive senior management practical experience in international enterprise collaboration, Oliver previously managed the Sony PlayStation 'WorldWide Studios' collaboration extranet, and has worked with the American Management Association, Sun, Docent/SumTotal Systems, Harvard Business School and McKinsey & Company on major initiatives around knowledge transfer and change management.

Oliver has dual US/UK citizenship and has worked on Asian, European and American global enterprise collaboration, and spoken at various conferences. He is based in San Francisco.

His personal blog is at www.olivermarks.com.
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RE: The difference between consumer & enterprise software
pfarmer Updated - 15th Nov
"Apple have never been interested in the complexities and limitations of serving enterprise customers..."

There's some truth to this. Apple never wanted to create the sales infrastructure necessary to go after Fortune 500s, probably because it seemed futile to try to displace Windows as the prevailing OS for PCs. The only way for them to succeed in the corporate market was with a game-changer.

With the iPhone and iPad, Apple had a first-mover advantage and is winning corporate customers on the merits of the technology. By offering these devices and stellar, free tools for creating apps for them, Apple is moving into the corporate market. See http://www.nytimes.com/2011/11/16/technology/businesses-too-have-eyes-for-ipads-and-iphones.html.

Microsoft seems to be betting that by having a unified OS (Windows 8), they'll do an end-run around iPad/iPhone. The idea seems to be that their corporate customers will be able to port their proprietary Microsoft-based PC apps to tablets and phones and that this will be compelling to corporate IT folks versus creating new apps for iPad/iPhone. I think this is a risky bet and will result in a mismatch of form and function. Ugly corporate PC apps that are ported to tablets or phones will look hideous and will frustrate users. A good app for a tablet or a phone will have a UI that's been designed specifically for the form factor. If Microsoft doesn't play this well, Windows 8 tablets and phones could end up as the next Zune.
0 Votes
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Oliver, I agree. The simplicity and ease of use of consumer devices and services need to inspire enterprise solutions. They are not enterprise solutions in and of themselves. I'm talking to you, iCloud, iPhone and iPad. Oh, and where did you find that picture of me from the 90s?!
In the consumer marketplace you see a cool Apple commercial on television and immediately think, "Jezz, I gotta have that!" In the enterprise software marketplace, you listen to someone like Oliver ramble on at great length (sort of like the way he writes) until you can no longer figure out the message. Then a consultant moves in for the kill; and you buy a heap of stuff that has little (if any) value to your daily operations!
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Overly, and unnecessarily wordy...
adornoe@... 28th Oct
and I had to skip reading beyond the first few lines, because, sometimes, detailed and lengthy explanations for what should be readily apparent, or easily explained, can be tiring and/or boring.
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That's Easy
m0o0o0o0o 28th Oct
Having worked on both, the biggest difference I have seen is this: When you don't have the backstop of an IT department/support staff to help with a customized, small-scale deployment (i.e. enterprise), it gets put together with twine and wire, is tested just until it works, and is from thereon a work in progress. In the consumer arena, it is focus-grouped, studied, beaten on, tested, retested, considered and reconsidered to death before it makes it out the door.

The difference is that the consumer product tends to be more refined, the enterprise product tends to be more bleeding-edge.
Enterprise software is chronically crappy, with obsolete design principles and dependencies, along with it often being grossly bloated and super touchy. If you are a talented young programmer, working on obscure, boring, vertical market software is probably not your first choice for a coding career, regardless of the financial incentives. This is probably the main reason certain government agencies have been struggling to update their software -- too often they end up with very, very expensive rubbish that may have to be discarded.
"Apple have never been interested in the complexities and limitations of serving enterprise customers..."

There's some truth to this. Apple never wanted to create the sales infrastructure necessary to go after Fortune 500s, probably because it seemed futile to try to displace Windows as the prevailing OS for PCs. The only way for them to succeed in the corporate market was with a game-changer.

With the iPhone and iPad, Apple had a first-mover advantage and is winning corporate customers on the merits of the technology. By offering these devices and stellar, free tools for creating apps for them, Apple is moving into the corporate market. See http://www.nytimes.com/2011/11/16/technology/businesses-too-have-eyes-for-ipads-and-iphones.html.

Microsoft seems to be betting that by having a unified OS (Windows 8), they'll do an end-run around iPad/iPhone. The idea seems to be that their corporate customers will be able to port their proprietary Microsoft-based PC apps to tablets and phones and that this will be compelling to corporate IT folks versus creating new apps for iPad/iPhone. I think this is a risky bet and will result in a mismatch of form and function. Ugly corporate PC apps that are ported to tablets or phones will look hideous and will frustrate users. A good app for a tablet or a phone will have a UI that's been designed specifically for the form factor. If Microsoft doesn't play this well, Windows 8 tablets and phones could end up as the next Zune.

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