(If you’re really interested, you can read the first two years’ posts before reading this one: Year I and Year II.)

As I re-read Year II’s post, I realized not too much has changed from last year, and I could probably get by simply reprinting that post. But, no. There are a few things I want to address this year in greater detail.

Here we go:

1. My Mind on my Money and my Money on my Mind

I started this post on the plane returning home from Boston (as did Oliver Marks). I snapped this photo of the guy in 27C. Blocked by his left arm is a clever little tool with which he was using to make some decisions. I overheard him telling the guy in 27B, my seat mate, that he was a manager for the terminal division for Continental. He was saying he had three projects he was evaluating, and he was trying to decide which one to do first. As I was gathering my thoughts around this year’s conference and the year ahead, I thought this little bit of eavesdropping would make for a nice intro to this blog post. The deadly little tool in Mr. 27C’s arsenal was a calculator. With a line-ruled notebook, a pen, and a calculator, he was set to make a decision that would most likely affect the work of dozens of people at Continental. And, if he did his ciphering correctly, his decision might even affect the business performance of his division at Continental Airlines. With that vignette, I’d like to suggest a lesson:

“What Enterprise 2.0 Needs to Learn from Enterprise 1.0″

Paramount on the minds of the boards of directors of the types of large firms we’re trying to move to Enterprise 2.0-style thinking and acting are items like… quarterly earnings. So, let me suggest that the currency of the Enterprise is not social connectivity, is not relationships, is not kumbaya, or even whuffie… the currency of the Enterprise is currency (and the colder and harder the better, as those clever credit financial instruments have a way of surprising you). We can debate whether ROI is a sensible metric; whether solutions are off-the-rack or tailored, whether there are enough case studies, whether we have the right brainiac analytical model, and on and on. But at the end of the day, we need to prove our business case in the Enterprise. Just like Mr. 27C, we need to run the numbers and see if our Enterprise 2.0 initiative is generating a positive business result:

• is it saving us money?
• is it making something faster?
• is it helping reduce the cost of something else?
• is it improving our customer’s loyalty and therefore repeat purchases?
• is it flattening out a supply chain and thereby reducing our costs?
• is it identifying new products or services that will throw off incremental revenue?
• is it measurably improving our performance to our primary customers?

You get the idea.

At the risk of becoming the Paul Krugman of Enterprise 2.0, I can’t emphasize this enough– quit ‘yer socializing and make some money, willya? It’s what we all need to survive. I was actually joking at the conference to my e20 friends that I’m a living example of of the hype factor in this market. I was laid off effectively six months ago, and I have not received a single (real) job offer. Therefore, my joke: “I’m too big to fail” considering (my size – that’s the funny part, and) all the good will I have amassed with my evangelism. Good will doesn’t pay the rent, my friends. I, like all my Enterprise 2.0 compadres, must find a way to make money at this or we will all be looking at working for “The Man” we are so desperate to discredit.

2. Re-thinking Diss-Organization

One of the most interesting socio-anthropological aspects of 2.0 evangelism is the dismantling (at least disrupting) of the power structures that rule large corporations. I heard it best at the conference from Marc Smith, Telligent’s Chief Social Scientist in residence, who casually reminded us, “All social systems have power structures.” Even in the 2.0-osphere, we have a social structures. Who’s connected to whom? Who’s a social CRM rockstar? Who has more friends/followers than whom? Who gets to speak at the conference? Who gets into the best parties? Blah, blah, blah. Who are we kidding? The cruel reality is: we are social creatures driven by base human motives. Same as it ever was.

In short, it’s unlikely we will re-write the rules on social hierarchy for large organizations. What’s different, IMHO, is the role credentials and pedigree will play as we move forward in an ever-more connected world. The more we give voice to innovative ideas buried in the bowels of the organization, the more we will self-subscribe to a tacit endorsement of social darwinism. This can be liberating, yet troubling in many ways. Our peers, our management, and our reports will judge us exclusively on the merit of our contributions. Are we ready for that?

3. A word on Social Business, Social Enterprise, etc.

This last bit is a familiar refrain for these annual reflection posts. Now, with all due respect for my friends at the Dachis Group, my new writing colleague @technically_women, Jennifer Leggio who writes the Social Business blog, and the Jive marketing team (SBS), I want to raise the inconvenient issue that outside of our circle, Social Business and Social Enterprise, have a completely different meaning. Yes, we can loosely associate what we do with what “they” do, but it’s not really the same thing, is it?

“Social Businesses seek to profit from acts that generate social improvements and serve a broader human development purpose. A key attribute of social businesses is that an increase in revenue corresponds to an incremental social enhancement. The social mission will permeate the culture and structure of the organization and the dual bottom lines – social and economic will be in equal standing with the firm pursuing long term maximization of both.

Similarly, academic institutions (including this program from Harvard) have been focused on educating leaders to make a difference in the world long before we came along and decided “social business/enterprise” was a groovy fashion statement for a 2.0-transformed business.

That being said, however…

Not sure what motivated you to get into this space, but “changing the world for the better” with computer technology has always been a passion of mine. I believe it is possible to 1. make money at this and 2. use our mad skillz to right some wrongs on the planet, once we figure some things out about working socially en masse.

With that, I will return to the ITSinsider regular programming. What have you learned this year?

To that end, it reminded me I wanted to write a post about the “unbearable heaviness of not-being” current.  Way, way back around the Christmas holidays, I was flattered to be one of only three reviewers for Andrew McAfee’s book on Enterprise  2.0 by Harvard Business Press.    They asked me to review the manuscript, and I accepted (for a small stipend).  They gave me a couple weeks to review it, and I submitted my comments in mid-January.

At the back of mind, however, and something I probably should have included in the review and regret now that I didn’t was a lingering doubt.  “This book will be obsolete before it’s published for the community of folks who track this sector.”

When Andy and I caught up at the Enterprise 2.0 conference, he told me that he too is really troubled by the delay on the publishing schedule.  He had hoped the book would have been published by the conference deadline (June), but it is now pushed back until December.  December?   You’re kidding me.

The demand for Andy’s book is today, not six months from now.  I’m wondering if, as a community, we can lobby Harvard Business Press to move the publication date up as its value is inextricably tied to its timeliness– especially in this fast-moving space.  The Editorial Director in charge of the publication timeline is Jacqueline Murphy .   I urge you to contact her and express your support for moving the book up in Harvard Business Press’ publishing queue.  I also started a Facebook group with the same goal.

The number UNO issue on the minds of this year’s customer conference attendees was: HOW THE >>>> DO WE DO THIS??? Customers wanted to hear from other customers, not us (the so-called experts in Enterprise 2.0). The best sessions for me were definitely the unconference sessions where real practitioners could talk frankly about their challenges and share their successes.

Listening to customers during the conference, as well as culling the data that has been coming in from various surveys, I’ve decided the time is right to launch a community for “Internal 2.0 Evangelists.” As I’ve been a 2.0 Evangelist for the broader sector (and I thought my job was difficult), I realized the job of the internal evangelist is far, far more difficult. These folks toggle between fighting the good fight every day and then slipping uneasily into a sort of DMZ where they can peek out into the broader community for support and the rejuvenation they need to go on fighting another day. It’s often a thankless job with no clear roadmap for advancement, yet the majority of them do it because they believe in the principles of the 2.0 movement. I celebrate them!

So, that said, I’ve begun the 2.0 Adoption Council on LinkedIn. Once we reach a critical mass, we will be moving the Council to a more fluid socio-collaborative platform. If you are a customer of a large enterprise rolling out an enterprise 2.0 initiiative, you are invited to join the Council. Here is a LinkedIn invite I sent to some key customer contacts that explains the Council’s mission and goals:

You can reach me on LinkedIn on my profile if we’re not already connected. Send me a note you want to join, and I’ll send you an invite. The Council is free; there are no strings attached. Andrew McAfee has joined the Council, as well as several prestigious global enterprises.

The answer from my vantage point is: this year’s customers/buyers are so plentiful, I am falling over them.  In our unconference session yesterday, the customer stories were riveting.  They came to find answers to their roll-out questions, not necessarily from us (the spin/guru machine), but from each other.  I was rendered speechless for most of the discussion topics.

In short, the Enterprise 2.0 movement is beginning to show real life.  There are real war stories replete with joys and challenges.  And even though I’d probably say the “0″ in Enterprise 2.0 still stands for startup profitability, I will definitely confirm: Yes, @dahowlett, there is a Santa Claus.  Customers are interested and engaged in socio-collaborative technology.  So much so that I’ve finally found a business model that makes sense for my own company here. (More on that later.)

This post is just a quick update.  I will be posting my annual “reflections” post when I return to Austin.

p.s. I wish you were here, really! (@dahowlett and all skeptics).

There are some news items breaking this morning that I want to get out, although I don’t have time to go into a deep dive on them.  Some interesting news out of SAP and Jive includes and OEM agreement where Jive will integrate its business intelligence software into Jive’s “social business” platform offering community analytics to Jive’s customer base.  The new software will offer a means of capturing and understanding the behavoirs and content that flows through social communities in order to make intelligent decisions.  The rumor, of course, all week was that SAP was buying Jive, but that appears to be unfounded.  This new venture, however, marks a clear initiative by SAP to (finally) take social software seriously, and likewise, it provides a grownup capability for a social software platform like Jive to deliver some clear business benefit.  I’ll be taking a look at the new happy couple later in the day in the demo area.

Secondly, Socialtext has finally announced its long-promised SocialCalc which was developed by VisiCalc’s co-creator, Dan Bricklin.  Additionally, the company is offering free use of its social software platform for the first 50 users aptly called, “Socialtext Free 50.”  The move to a freemium model for Socialtext follows on the heels of Socialcast’s similar free offering for its social software.  In my experience, once folks are exposed to working socially and encouraged to do so by their peers, social software grows virally.  The freemium model is probably a smart move to take the edge off early adopter user resistance.  I will be curious to see how this move impacts adoption for Socialtext and others experimenting with the model.

Finally, my alma mater, nGenera has made some announcements this week at the conference.  The company launched four “Collaborative Enterprise Management” solutions for Enterprise Collaboration, Collaborative Selling, Customer Experience, and Talent Management.  nGenera is hosting a small event tonight in the hotel (Hancock Room) at 5:30 and will feature well-known author and speaker Tammy Erickson.  If you’re curious about who nGenera is and how they fit into the Enterprise 2.0 landscape, I encourage you to attend the session or talk to the nGenera folks at the show.  The company is uniquely positioned in a high-end slice of the market.

Also, if you’re here at the conference, please consider attending the unconference/barcamp sessions I’ll be participating in on Wednesday afternoon with Ross Mayfield and Brian Magierski.  There has been a lot of talk recently about framing the market and establishing a universal view of the semantics that surround the space.  I have a slide I’d like to invite the community to perhaps validate and improve on that I will be presenting Wednesday afternoon.  Barcamps are fun and interactive.  The best part is if you’re bored or a session’s not interesting, you can get up and walk out at any time.

Sigh.

I often wonder how my old friends in the SI/Outsourcer space are doing, and if in fact, any are adopting 2.0 technologies or practices internally or recommending them to their large customer bases. So, it was a pleasant surprise to reconnect with an old friend, Alan Alper, who is now working for another old friend, Malcolm Frank, both now at Cognizant– a large-scale integrator/outsourcer.

It turns out Cognizant is making productive use of 2.0 technologies and practices, and has realized some identifiable business results already. The company began an initiative about two years ago called, “Cognizant 2.0.” Essentially, the Cognizant 2.0 platform is a combination knowledge management/project workflow tool that incorporates 2.0 technology to leverage the combined intelligence and skills across Cognizant’s entire 60K workforce. What’s interesting about Cognizant 2.0 is that employees use the same tools they’re used to using in the workplace: Microsoft Project, Office, SharePoint, as well as their ERP systems. The platform integrates these enterprise “native” tools into a unique view that crosses time zones and geographic boundaries to glue the company’s expertise together. Dashboards now monitor critical project tasks and provide project teams with detailed, real-time access to workflow activities, information, targets, and deliverables. Internal blogging for the company has produced some surprising results. It grew essentially organically within the company as a means of communication and sharing and now includes non-related work content such as discussing charitable causes, movies reviews, weather, photography, and affinity-based professional interests.

Cognizant estimates the new collaborative platform improves project cycle times on average about 20%. With more than a third (37%) of the company’s application development projects running through the platform, it encompasses over 4,000 projects at what will soon span more than 600 customers. One of the greatest gains has been a 70% productivity improvement for project managers who formerly used the company’s previous project management tool. About 20% of the workforce (over 10K), including the company CEO Francisco d’Souza, are blogging internally on the platform with over 3-5 million page views a month.

Customer satisfaction numbers for Cognizant have always been high (near 90% in recent years), but the advantages of working collaboratively and socially has given Cognizant a distinctive advantage vis-a-vis its competitors in a hotly contested space. In essence, the company has moved from “labor arbitrage” to what it now refers to as “intellectual arbitrage.” The Cognizant example is an excellent one that truly demonstrates business advantage to a large enterprise. The company intends on extending the platform to include suppliers and customers in upcoming releases.

If I had to point out a deficiency for Cognizant 2.0, like its enterprise software components, it’s not sexy. It could use a trendy 2.0 UI/UX makeover to make it more appealing to users. But considering most of Cognizant’s workforce is comfortable with plain-old-vanilla enterprise software for everyday use, there is probably no urgent need to doll up the platform. Moreover, as Cognizant is a public company with nearly $3B in revenue and an $8B market cap, the company’s priorities might well be more focused on business results than design awards. I give it a thumbs up for innovation, adoption, and an impressive approach to integrating the old with the new– which is what I’d hope to see from a world-class systems integrator.

The keynotes are exceptional this year. I’m really pleased we were able attract Matthew Fraser, co-author of one of my favorite 2.0 business books this year, “Throwing Sheep in the Boardroom: How Online Social Networking will Transform Your Life, Work, and World.” We also have favorites from last year include Evening in the Cloud, OpenEnterprise09, and one of the stars of last year’s event: the Lockheed-Martin case study duo.

I’m particularly interested in a few sessions. (In fact, I gave up all my speaking slots so I could attend other sessions!) One that I don’t want to miss is Lee Bryant’s “Transition Strategies for e20 Adoption.” Headshift is one of the really innovative boutique consultancies out there focusing nearly exclusively on introducing 2.0 to the enterprise. Another one I’m really interested in is Amy Vicker’s “The Sharepoint Factor.” I helped Amy get this on the program, and I’m sure she won’t disappoint. If y’all don’t have a Sharepoint strategy, you’re going to be in for a rude awakening if you’re serious about large enterprise. I think Mr. Tell-it-like-it-is, Peter Kim, is going to surprise with his “Does Social Media and Marketing Matter?” panel. That one will probably break Twitter. To be honest, there are so many great sessions this year, it’s difficult to narrow down my must-attend events. I asked Steve Wylie how the registration is going. Surprisingly, the conference is holding up very well against the economic downturn. Steve said the numbers of customers are consistent with last year’s attendance, as well.

Once again, I will be pitching in on Enterprise2Open. This is a barcamp-style event where everyone gets a chance to present or share their own experiences. Brian Magierski, my former colleague at nGenera will be there, along with Ross Mayfield of Socialtext. Both nGenera and Socialtext are sponsoring the barcamp. Both these companies have serious street cred in discussing the challenges and opportunities with making 2.0 in-roads in large enterprises. Last year’s sessions were well-attended, and I think everyone got a lot out of the group discussions. If you have something you’d like to present, sign up at the Enterprise2Open wiki and promote your event.

I’m still waiting on details for the social calendar i.e., parties, dinners, etc. But I saw the first tweetup today. About two dozen people have already signed up for that already. You may want to sign up early for the social network associated with the conference at MyE2. This is also where you’ll access the back channel that was very useful last year.

*”Ollie Ollie Oxen Free!” is from the children’s game of hide and seek where the “it” player summons everyone back to base (essentially because they’ve given up, which is kinda how I feel this year…)

The reality is SAP and its global customer base are just not ready for the socialization of the enterprise. It’s just not a topic that commands attention at this massive event (despite my valiant efforts to bring it up in every executive briefing). The majority of conversations at SAPPHIRE revolve around common themes such as decision-making, analysis, data, spreadsheets, databases, reports, statistics, and business processes. In other words, the real work that goes on in real businesses. Is that surprising? No. SAPPHIRE is to SAP what Disney World is to young families. (The Orlando location only reinforces my impression). With the pressure on to decrease costs and make smarter, faster decisions based on easily accessible real-time data, SAP customers and its ecosystem of suppliers and partners were buzzing with excitement and possibilities here. Extending the metaphor, Enterprise 2.0 might be considered the Pleasure Island nightclub of the enterprise (which Disney closed last summer, btw). Just an aside– whenever I was face to face with a “real” customer and it happened several times as I did some reporting-by-walking-around, I would ask the simple question: “Have you ever heard of Enterprise 2.0?” The answer was unanimous: “No.”

So, what can we deduct from this experience? SAPPHIRE may just be the best harbinger of the Enterprise 2.0 market’s maturity. Last year, if I searched on Enterprise 2.0, I’m fairly certain I would have found zero returns for scheduled sessions. That there are two this year is, indeed, progress. Further, the soft language of 2.0 has seeped into SAP’s strategic speak and hopefully, strategic consciousness. Leo Apotheker, SAP’s co-CEO and reigning commander in chief name-dropped a smattering of prevailing social buzzwords in his opening address i.e., transparency, collaboration, trust, and social communities. So, a big high-five from me to the speech writer for positioning SAP as a “we get it.” And, in reality, they do get it. They just haven’t incorporated deep social-collaborative functionality into their product suites (yet). This is about where the majority of large customers are. They “get it.” Some may be even experimenting with it (even if they’re not calling it Enterprise 2.0), but it’s not yet core to their business.

We spent some time with Marge Breya, EVP and GM for Business Objects who assured us in the next 6 – 12 months we’d see major social software additions to SAP’s traditional software, but was reluctant to say anything further. I encountered that reaction many times from even my fellow bloggers/analysts who were sworn to secrecy on SAP’s 2.0 plans. Some of the innovation may come from SAP’s innovation labs where the petri dish is hopping already with social trials. For me, the best demonstration at SAPPHIRE was by Timo Elliott, Senior Director of Strategic Markets, BusinessObjects Innovation Center. Elliott showed us various efforts that they’re testing in the labs including a social network analysis tool, but he too was very careful to make it clear that none of the existing experimental work was officially sanctioned as a product offering or improvement. Elliott also pointed us to a rogue, yet informative, web 2.0 site he manages where he is tracking how SAP uses 2.0 with its customers and partners, as well as explains various 2.0 projects underway within SAP.

Once again, I’m reminding that we’re still super early in our evangelism. I sensed some of the SAP employees I spoke to also felt some of that frustration and dare I say, disappointment, that the needle is moving so slowly in the enterprise. Next month, of course, I will be attending the Enterprise 2.0 conference in Boston. I’m sure I’ll be re-energized there, although I remember good ole’ Tom Davenport who debated Andrew McAfee at the first conference in 2007 where he pooh-poohed Enterprise 2.0 in general. Davenport was right then, and he continues to be. I understand more now what he meant when he said, “I feel like an atheist at a Baptist convention” on the day of the debate. At SAPPHIRE, I was feeling a little like a Baptist at an atheist convention. SAP may one day stand for Social Applications and Programs, but it’s not clear to me when that day will arrive. (Or– why it should, frankly. Which is a blog post for another day.)

Somehow in my canvassing of the e2.0 universe, I missed this really cool company. I had a chance to see a demo last week with CEO, Paul Pluschkell and ask him some questions about the product and their journey.

Spigit is a beautifully designed “idea-based” social network for any size enterprise. What’s uniquely interesting about Spigit is it is action-oriented: its sole purpose in the enterprise or within its external ecosystem of customers and suppliers is to generate good ideas that lead to better products, better usability, revenue-producing initiatives and/or cost savings recommendations. In fact, anything can be a good idea and you can virtually find it anywhere– inside the company or out. With Spigit, now you have a way to get support for a good idea and refine it further.

The company offers two basic platforms: one for internal idea generation, InnovationSpigit, and one that faces externally, IdeaSpigit, to reap good ideas from its external community of suppliers/partners/customers/fans, etc. Judging from the live demo I saw, the user interface on this product is gorgeous and has an addicting “game-like” quality to it that encourages adoption. For management, there are over one million different variables for tracking metrics and user behavior. Additionally, this is the first Enterprise 2.0 product platform I’ve seen that incorporates prediction markets technology, PredictionSpigit, (which Andrew McAfee is so fond of).

The good news on Spigit is a single great idea can deliver a mind-numbing ROI. The somewhat bad news is it’s a little pricey. Enterprise licenses range from $25K for less than 1,000 people to $300K for over 100,000 people annually in a standard SaaS-based monthly pricing contract. If you want to host Spigit behind the firewall, that’s also an option. But, it’s probably the most expensive option, as you must buy the license in perpetuity. With each license, Spigit bundles in a dedicated community manager, a kickoff and training program, and a variety of helpful services that encourage adoption and promote meaningful results. Spigit received very favorable reviews from Bearing Point’s Nate Nash who alerted me to this post.

Innovations on the horizon with Spigit include an iPhone app in the works and customizable widgets that can house the entire product which has already been sold to one large customer. Once customers “get it,” the Spigit choice is easy. Companies prone to innovate and tout the people power of their workforce are eager to get into a relationship with Spigit. Marquee customers include IBM, Sun, Intel, Southwest Airlines, AAA, and Wal-Mart.  Additionally, Spigit has a major initiative underway to layer the product on top of SharePoint.

So think Digg, Dell’s IdeaStorm, Innocentive, mashed and wrapped up in a customized, user-addicting collaborative social network (that also has reporting, analytics, and prediction markets) and you have Spigit, the wonder platform.

Kick me before I miss a product like this again.

It was important to make a clean cut sooner rather than later. We have all parted friends and hope to continue to work together on Enterprise-related projects. In the meantime, I have a number of consulting engagements I’ll be spending my time on. As well as writing the occasional blog post here where I can add some community value.

I have a world of respect for what Richard has created with RWW, and even more respect than ever for the writing team there. Bernard Lunn and I will continue to explore ways we can bring Enterprise thought leadership to the RWW community of readers. I look forward to that as well.

So, new day, moving on. Back to business. Thanks so much, everyone, for the enthusiasm surrounding last week’s announcement. It was a great match, but not the right formula. No worries.