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NEXT09: deconstructing the enterprise gulf

By | May 7, 2009, 10:39am PDT

Attending NEXT09 was a breath of fresh air for me. As seems to be the way, there’s always a good showing by controversial polemicists. You won’t for example get two more strident and different speakers than Jeff Jarvis and Andrew Keen.

As an enterprisey guy, Keen’s assessment of how things are changing is more appealing. It has a sense of realism and is a call for debate that I find is missing from much of what I hear around Web/Enterprise X.0 topics.

In most discussions I hear you are either a disciple of Andrew MacAfee’s emergent enterprise or cast as a Luddite. Neither of those positions is appropriate because emergent means it has yet to materialize. In drawing such harsh battle lines real debate is stifled about the issues that really matter: survival and sustainability in an uncertain world.

Internally I struggle with much of what I hear about Enterprise 2.0. Not because it is fundamentally flawed but because it feels misguided and out of touch with what I see around me. Jarvis for example bangs on about ‘What would Google do?’ - holding them up as some sort of business paragon. Yes Google is important but in enterprise terms? It’s a minnow, an afterthought. People who live in this bubblicious world find it disarming when I say that Google is a bit player. It’s almost as though I’ve pooped on the front door mat.

There is a sense in which we’re caught up in a mass of contradictions that we barely see let alone understand. For example, the race to the bottom of ‘free’ everything is a massively flawed idea. It simply isn’t sustainable to think you can build applications with any enterprisey rigor on fresh air. It’s not even a case of developer reward. The notion that because tools and services are low cost it is somehow OK to believe enterprise class development can be achieved at almost zero cost is wishful thinking. CODA has been able to push out CODA2Go in lightening time and low cost (by enterprise standards) because Salesforce.com spent 10 years getting the platform right.

Even so, I can almost hear the MacAfites roaring the common epithet: ‘You don’t get it.’ What about Stowe Boyd, the best walking example I know of an enterprise’s worst anarchic nightmare? He is starting to acknowledge there is something different about enterprise that needs taking into account. He seemed genuinely surprised (my interpretation) at some of the cultural challenges facing large companies attempting a transition to more collaborative forms of operation.

Where I think his research findings are most worrying is in the notion that it will take 10 years to bring the transformation to this utopian world he and others are envisaging. If that’s right then don’t bother. Colleagues have been talking about these exact same issues for 10 years and more. The problems are identical to what they were all those years ago. Culture, belief systems, control in all its forms. I’d be far more impressed in seeing the solutions framed for providing a sustainable future. That argument is almost entirely missing from the discourse of today although Intel is definitely one to watch in this regard. What’s more, in 10 years we will have been through or be in another economic cycle during which you can almost be 100% certain that vendors will have become as dumb, fat and happy as some were last year. Rinse and repeat?

The difference today is that we have a chance to air these topics with people who do understand the problems - the educational and organizational social psychologists who have battled with the conflicts and politics of organization. Where are their voices included in this often tech led discussion?

This is not about some trough of disillusionment. It’s about failing to provide satisfactory public answers to the questions that are inferred time and again. My best example comes from Kevin Eyres of LinkedIn who talked about the introduction of email at Compaq in the early 1900s and the fear that someone would do something silly. This is a frequently reprised war story by those struggling to introduce social computing to big business. Nowhere in the public discussion do I see anyone asking the far more fundamental question: Why do we keep making the same mistakes? What is it about the nature of organization that drives fear rather than an ability to see benefits?Instead I hear cart before horse thinking most often expressed as ‘change management.’ No, no and no. Please understand first the real problem you’re facing. Because you might find it isn’t about change.

The closest we got was Umair Haque’s unpicking of industrial age economics and the ‘new.’ Many people found his presentation lacked pazzazz. I agree. This is not about being a showman or entertainer but about addressing deep and serious questions. The kinds of question that large enterprise wants answering. A song and dance routine played to the E2.0 tune doesn’t cut it.

The fears attached to a loosening of the control mechanisms are often cited but that is no more satisfactory than it was 15 years ago during the dawn of email. Eyres came close to providing an answer when he talked about the co-existence of the informal and formal hierarchies inside business. But he swerved away from providing any explanation as to HOW this happens or if it should. Then there is the parallel problem of assuming that Google is the benchmark against which innovation occurs.

As I listened to elevator pitches and young hopefuls with unquestionably great ideas I could not help but wonder why they are drawing their cue from Google, a company that isn’t open, is difficult to trust at the enterprise level and which still remains a one trick pony. Is it the case that commenters with well honed oratory skills are successfully sucking the rest of us into believing in this make believe Googley world? It seems so. Listening to Jyri Engestrom, Jaiku’s founder and now with Google, it seemed weird to be talking in terms of ‘open-ness’ and Google in the same breath until I heard the magic word: trust. So we all trust Google and it is on THAT foundation we’re building a new world. OK.

But when I asked one person who was oozing Googleyness: “Where are they? Do they sponsor these gigs?” it suddenly dawned on the person that not only does Google rarely involve itself in these types of event, the Googlers who show up rarely say anything that isn’t already in the public domain. It is the almost blind acceptance of this baffling paradox I can’t fathom.

Even so, I have to applaud the genuine invention I did see and hope to heck it appears in enterprise thinking sometime soon. An example. TechCrunch’s Robin Wauters introduced me to Renato Valdes Olmos, co-founder of hellomynameise.com. Currently in late beta this startup is solving the business card problem we all share. How to input random contact data and then keep it up to date. A combination of RFID, cell phone connectivity and social computing principles converge in this incredibly simple yet complex and alluring solution. I want one. It’s got all the ingredients of being an enterprisey smash hit.

Given that next week marks SAP’s annual SAPPHIRE customer conference and will attract some 8,000 people, isn’t this EXACTLY what business folk need instead of yet another conference bag? I can (almost) guarantee SAP won’t have that type of goody on offer. Because the flip side of this open world to which Jarvis et al wish us to go is the dominant model: closed, proprietary and not invented here. That’s not sustainable either but dissecting that is an altogether different discussion. I’ll kick it off with this thought: SAPPHIRE is billed as:

SAPPHIRE® 2009 and the ASUG Annual Conference are together again in 2009, bringing unparalleled insights and opportunities from the world’s premier business technology events to one place. For industry professionals who want to maximize their conference experience, this is the must-attend business outing of the year.

By bringing SAPPHIRE and the ASUG Annual Conference together, industry professionals gain access to the full spectrum of SAP offerings and the entire ASUG community—a comprehensive and collaborative experience that will drive business results across all levels.

Tell me what part about that not being a sales fest are you not getting? They’re not alone. IBM, Oracle and Microsoft all do the same. So here’s the difference. Yes there were pitches at NEXT09 but mostly in the context of attracting funds but more importantly, the introduction of ideas. That’s what’s missing at enterprise conferences. New, fresh…dare I say it…innovative ideas.

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Dennis Howlett has been providing comment and analysis on enterprise software since 1991.

Disclosure

Dennis Howlett

Dennis Howlett is committed to maintaining the independent and opinionated stance that his writings are well known for and does not enter into contracts that would limit his freedom of expression in any way. However it is important in the interests of full disclosure to inform readers of those relationships so they can form their own judgment. This page therefore lists all Dennis Howlett’s current business relationships.

Dennis’s consulting arrangements occasionally bring him into direct or indirect business relationships with some of the companies about which he writes, and/or their competitors. Where such a relationship exists, it is disclosed at the end of any article that references the company concerned.

Dennis owns AccMan, an independently produced blog covering the professional services market, primarily focused on Europe. It is currently sponsored by selected TextLink Ads and named sponsors in the ‘Sponsored Content’ block.

He is a member of Enterprise Advocates, a loose association of consultants, and analysts who are concerned with the buyer side of the buy-sell enterprise relationship.

He is a paid contributor to IT Counts, a site dedicated to discussing technology issues as they related to ICAEW members. He also advises ICAEW on certain aspects of its member outreach programs.

He is an SAP Mentor and participates in SAP Mentor webinars. He has recently produced a guide for SAP resellers wishing to record customer videos. Other than as disclosed here, Dennis maintains no business relationship with SAP and is not financially rewarded for his role as a Mentor.

Dennis maintains relationships with a range of end user organizations and in all cases is subject to non-disclosure agreement. He has no current ‘paid for’ relationships with ITC vendors except as disclosed above although certain vendors comp travel and expenses claims. For the benefit of doubt, T&E reimbursement is a common practice among European based writers. It is often the only way we can attend important events. Even so it doesn’t impact our analysis of what vendors have to say. If you believe otherwise then feel free to ignore what is written here.

Except as mentioned above, Dennis has no other investments in any tech industry participants. This page last updated 23rd February, 2010.

Biography

Dennis Howlett

Dennis Howlett has been providing comment and analysis on enterprise software since 1991 in a variety of European trade and professional journals including CFO Magazine, The Economist and Information Week. Today, apart from being a full time blogger on innovation for professional services organisations, he is a founding member of Enterprise Irregulars and an investor in a European start-up. Prior to, Dennis was technology and tax partner in a British firm of Chartered Accountants for 10 years. Prior to that held various senior finance roles across a broad range of industries.

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deconstructing the enterprise gulf
martin.english 11th May 2009
OK, so pick any medium and large enterporises, and you'll it is a Command-and-Control organisations. There are standard tools and methodologies used throughout a particular enterprise.

Just as an IT person doesn't get to decide that for this project, they will store the data on AWS S3, while project bugalug stores it's data in a datacentre somewhere in Australia, neither does an individual or an office get to decide that they'll move from MS-Office to Open office, let alone a browser based office suite.

All the stuff that was drummed into over the last years, about TCO and SOE's and so on, has come to roost happy We are so standardised that business units are financially penalised for stepping away from the 'corporate standards'. For example, one of the ways the 'enterprise' has of stifling (what it thinks as) non standardisation is that anything 'standard' is much cheaper than anything non standard - support for ms-office comes from the help desk and is free to a project, but we will have to charge YOUR project more for supporting Open Office. And we have no control over what happens in Google Docs, so the risk of managing, supporting and not loosing ALL your Project Documentation is up to you....

Obviously, this affects the ROI and therefore the CALCULATED value of the project (unless you keep using the 'standard'). This is on top of the risk-averse mentality... This meands that, depending on the enterprise, individual business units find it difficult (or impossible) to do anything 'outside the standard'.

yes, you MAY find things like agile development and RoR coming to the IT department, but really, how old are these methodologies and tools ? The other major fault with the 'enterprise' is the cost of communication and decision making... It can take a long time for a consensus to grow that something fundamental needs to be changed, let alone for people to decide what that change will be, then implement it.
0 Votes
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Corporate struggle with email...
daftkey Updated - 7th May 2009
Email in the enterprise is still a major challange.. However, I think Compaq has set an exemplary example:

"My best example comes from Kevin Eyres of LinkedIn who talked about the introduction of email at Compaq in the early 1900s and the fear that someone would do something silly. "

I'll give kudos to Compaq, though.. Most people were struggling with the whole concept of the horseless carriage back then.. happy
0 Votes
+ -
yes, Yes and YES! Nice article Dennis.
0 Votes
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Contributr
Thanks Scott - so riff
dahowlett 7th May 2009
@scott: thanks for the kudos but I'd prefer a PROPER debate so if that works for you then please riff. I don't care if anyone agrees but I do care the debate is not being made.
0 Votes
+ -
deconstructing the enterprise gulf
martin.english 11th May 2009
OK, so pick any medium and large enterporises, and you'll it is a Command-and-Control organisations. There are standard tools and methodologies used throughout a particular enterprise.

Just as an IT person doesn't get to decide that for this project, they will store the data on AWS S3, while project bugalug stores it's data in a datacentre somewhere in Australia, neither does an individual or an office get to decide that they'll move from MS-Office to Open office, let alone a browser based office suite.

All the stuff that was drummed into over the last years, about TCO and SOE's and so on, has come to roost happy We are so standardised that business units are financially penalised for stepping away from the 'corporate standards'. For example, one of the ways the 'enterprise' has of stifling (what it thinks as) non standardisation is that anything 'standard' is much cheaper than anything non standard - support for ms-office comes from the help desk and is free to a project, but we will have to charge YOUR project more for supporting Open Office. And we have no control over what happens in Google Docs, so the risk of managing, supporting and not loosing ALL your Project Documentation is up to you....

Obviously, this affects the ROI and therefore the CALCULATED value of the project (unless you keep using the 'standard'). This is on top of the risk-averse mentality... This meands that, depending on the enterprise, individual business units find it difficult (or impossible) to do anything 'outside the standard'.

yes, you MAY find things like agile development and RoR coming to the IT department, but really, how old are these methodologies and tools ? The other major fault with the 'enterprise' is the cost of communication and decision making... It can take a long time for a consensus to grow that something fundamental needs to be changed, let alone for people to decide what that change will be, then implement it.

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