McKinsey Survey Shows Value of Web 2.0 Technologies in the Enterprise
Monday, January 25th, 2010The deployment of Web 2.0 technologies in the corporate environment (often referred to as Enterprise 2.0) is following a novel path. In the past innovation has begun in the enterprise and then passed into the consumer sphere. With Web 2.0 technologies the reverse is happening and the introduction of such technologies into the enterprise is often being triggered by employees who use the same technologies outside work.
In a sense the deployment is happening in a haphazard and bottom-up fashion and this has raised concerns, notably about security and the return on investment of such initiatives. Nevertheless recent data is showing that, when properly implemented, these technologies deliver measurable business value.
In particular a major survey by McKinsey, a leading organisational consulting firm, provides data showing that the level of usage continues to grow and companies are increasingly seeing competitive advantage from the results.
Usage is Growing
McKinsey have been conducting this survey for the past three years. Over this time they have seen an increase in the proportion of employees using the tools for internal collaboration and communicating with customers.
65% of respondents use the technologies for internal collaboration. Companies that have embedded the tools into their processes have seen the largest impact – mainly through improved communication outside silos. This avoids duplication of effort and leverages knowledge in other areas.
58% of respondents use the technologies for customer communication (principally customer service and marketing). The main benefit has been as a cost-effective channel to a broad range of customers. There is concern about the negative impact of unfavourable opinions but this has been mitigated by using moderators.
Benefits
69% of survey respondents said their companies had gained measurable business benefits. These included:
- Better and faster access to knowledge and subject experts, both within and outside the company.
- Reduced communications and travel costs as better tools allow collaboration over distance.
- Improved marketing results and customer satisfaction as the tools allow relationships to be extended outside traditional boundaries.
Partners
One area where usage is still in its infancy is connecting with business partners and suppliers. Only 40% of respondents use the technologies for this purpose. It is concluded that such interactions typically follow a structured process that may not be compatible with the informal nature of Web 2.0 technologies.
Andy Miller of McKinsey concludes that:
“To drive increased usage for managing interactions with suppliers and partners, companies will need to find ways use these technologies to augment the formal relationships between business entities and not substitute formal interactions with more ad hoc ones.” source
This is undoubtedly true but companies also should consider how the technologies can support the so-called conversation-model of sales, especially for services.
Conclusions
Web 2.0 technologies are increasing accepted in the workspace and are demonstrating real value. Another notable results from the survey is that investment in these technologies has continued apace even during the recent downturn. As innovation continues apace in the consumer field it is becoming clear that:
“ … expertise in the use of Web 2.0 technologies is becoming a required skill for all enterprises.”
Hugh Fordham
Chief Technology Officer
Tel: +44 (0) 1727 811132
Email: hugh.fordham@employerconnections.com
Website: www.employerconnections.com