9 Replies Last post: Sep 5, 2008 11:08 AM by User: 2031 [ddi] [patrick@weev.org] Patrick  
Keri Pearlson Contributor 7 posts since
Aug 25, 2008
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Aug 29, 2008 11:43 AM

Barriers to 2.0 Adoption in the Enterprise

At the Enterprise 2.0 conference in Boston earlier this summer, Susan Scrupski and I did a session on barriers to 2.0 adoption in the enterprise. We thought this community might be interested in this topic, too. We are interested in your comments and experiences. We have been doing a research project with our colleagues at nGenera. We have been surprised by the slow rate of adoption of 2.0 tools and philosophies within the companies we have studied (mostly large, global enterprises). Further, we have seen that most of the adoption that has occured is outside the tranditional IT organization, in pockets around the enterprise, and is often done at home (we joke that it used to be that people went home to get away from work, but now people go home to work since they have access to tools and apps in the cloud that they don't have access to in the office).

 

Here are 5 categories of barriers we've noticed:

 

  1. Culture: resistance to change, resistance to new tools, familiarity with current environment, lack of rewards

  2. Awareness: lack of awareness of what the tools are. At client site, I was talking about twitter and a business problem we were working on, and using twitter to get some ideas. For the client, the firewall prevented them from using it. Most people know about LinkedIn and Facebook, but there is a lack of awareness beyond that.

  3. Technology: concerns about privacy, security, protection, particularly in financial services. Hospital argument — spend money in case someone might die. Same thing with security.

  4. Security: privacy protection, etc.

  5. Generational differences: if the organization doesn’t have a lot of younger workers, there seems to be no acceptance. Many companies are not worried about the younger generation.

 

What have you seen? What barriers have you encountered? Where is the resistance coming from?

Alan Smith Contributor 13 posts since
Aug 30, 2008
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1. Aug 30, 2008 12:02 PM in response to: Keri Pearlson
Re: Barriers to 2.0 Adoption in the Enterprise

Hi Keri:

 

I would be interested in knowing a bit more, but my SaaS solution is for individual users, not for corporations. Has there been any studies on the adoption of SaaS in the direct to consumer market? We launched our product this January, and although growth has been good it seems that we are in a bit of an educational sale to the consumers, but once they get it they are hooked and love what we do.

Alan Smith Contributor 13 posts since
Aug 30, 2008
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3. Aug 31, 2008 8:00 PM in response to: Keri Pearlson
Re: Barriers to 2.0 Adoption in the Enterprise

Hi Keri by John do you mean me or did I not see another post ?

Alan Smith Contributor 13 posts since
Aug 30, 2008
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4. Sep 1, 2008 10:20 AM in response to: Keri Pearlson
Re: Barriers to 2.0 Adoption in the Enterprise

Keri:

 

Well, just to give you some background on our product so you can understand where I am coming from, we sell a hosted Sales Tool and CRM system for individual users. There is no sharing because it is targeted to a single user in a small company, although we have clients with 19+ accounts in sales companies that don't need sharing of contacts. One example is a Xerox office that uses our system for their sales team due to the ability to customize it for their team and how simple it is to use. If you want to take a look at the functionality, please feel free to go into the demo account on our site, or sign up for a free 30 day trial. We are one of the few apps with a completely integrated hosted email client that you can use to check all your emails and consolidate it into one place, and automatically attach it to your contacts history, etc.

 

Due to the fact that our system is geared for an individual, we are usually dealing with customers and industries where the person in charge of sales is not always a sales person. Some examples would be Consultants, Engineers, Architects, Photographers, Realtors, Investment Brokers, and we even have a person managing a horse farm with it. Adding to that, we have some unique functionality that goes far beyond the usual CRM tool, and we are having to educated people about the uniqueness and ability of our software, as well as what a hosted app is. We have free unlimited telephone and email support, and we constantly get calls that end with the user saying WOW, I had no idea that you could find a system that can do all that so easily — without having to install anything.

 

Here is the hosted app educational part:

 

I think Salesforce.com and others paved the way for hosted apps at the enterprise level, but we are having to educate the small business and individual sales people about hosted apps. We are finding that in the small business circles, there is little understanding of hosted apps, and we are forced to hold their hand a lot through the sales process (or our 30 day free trial). We host free weekly Oprius 101 Webinars (30 min demo and 30 min Q&A, as it's on our conference call lines) for potential and trial users, so we can teach them about the benefits of hosted apps as they are in the purchasing process. We constantly have questions about hosted apps, and what they are, and how they work. After a 30 min demonstration (on a webinar), they still ask questions like "so do I just download it and install it and then it links up with your system" or "how do I install it?" We also get a lot of questions about security, speed, where the data is stored, etc. Very simple hosted app questions.

 

It seems to me that the small business market place is still quite behind in their understanding of hosted apps, and we have to do a lot of education for a $14.99/month app. That said, once we have helped them they are usually ecstatic about our app, and think we are completely ahead of our competitors because we introduced them to this "new" way of using software.

Patrick Contributor 2 posts since
Aug 9, 2008
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5. Sep 1, 2008 10:21 AM in response to: Keri Pearlson
Re: Barriers to 2.0 Adoption in the Enterprise

An interesting aspect that is very influential is the freedom of expression and subsequent folding of corporate communication guidelines. I believe traditional control and risk freaks in corporate communication and marketing to be clearly against adoption — corporate culture may have strong a influence to promote the use of alternative tools than those supervised by IT.

Alan Smith Contributor 13 posts since
Aug 30, 2008
Currently Being Moderated
6. Sep 1, 2008 10:41 AM in response to: Patrick
Re: Barriers to 2.0 Adoption in the Enterprise

Thanks Patrik

 

Could you elaborate on what you mean by "folding of corporate communication guidelines"

 

You could be right that support for hosted office apps could be pushed in by corporate culture. Once consumers realize that they are already using hosted apps like hotmail and facebook. I think that we are still in an educational game in this space though.

Mike Oswalt Contributor 2 posts since
Sep 2, 2008
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7. Sep 5, 2008 8:22 AM in response to: Keri Pearlson
Re: Barriers to 2.0 Adoption in the Enterprise

Your list is a good starter and captures the bulk of the barriers.  Related to concerns about privacy, security, and protection there is and has been for at least the past 20 years a barrier between formalized Information Technology (IT) and people bringing tools into the workspace.   While there is training, degrees and a profession for IT, there are many other professionals who aren't IT by profession but, bring a great deal of information savvy to the table.  A natural friction occurs in most enterprises between these groups. While IT works to protect enterprise information and provide governance over how information resources are utilized, I view IT as a barrier to change and particularly 2.0 adoption.  As a group IT wasn't that keen on personal computers or the Internet (at least at company I work for) and those became been pretty well accepted over time.  I think there are real concerns about security and what happens when for whatever reason the cloud or a critical component of it is not available or accessible.  They are under the (mistaken) perception that information under their control is more secure and reliable than information in the cloud.  Everyone likes to be able to "kick the tires" and own data. 

 

Investment in the current infrastructure stands in the way as well.  There is some irony in the fact that high license and maintenance cost prevent enterprises from trying things that will be more efficient and effective.

 

Persistence drove past changes. 

Online work is inevitable. 

It is more a matter of time.

Patrick Contributor 2 posts since
Aug 9, 2008
Currently Being Moderated
9. Sep 5, 2008 11:08 AM in response to: Patrick
Re: Barriers to 2.0 Adoption in the Enterprise

Sure Alan - the educational curve is there - but as we witness the adoption speeds, the levels of experimentation and creativity by users with environments such as Flicker, Facebook, myspace, Ning etc...that argument as a real barrier is less sustainable.

Additionally in sectors like Travel, although online apps and innovation has always come from people with non-traditional travel backgrounds, the users are not complaining, but experimenting at the highest level of participation/engagement - proof of which, is the uneasyness created for business owners by User Generated Content trying to cope with interactive opportunities.  And it is a case that reinforces your point - where we have a sector with a most ready 2.0 audience and a least prepared business/services providers - which is a true window of opportunity for those wanting foundational change.

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