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Beauty is in the eye of the beholder: Why Scoble is right AND wrong about enterprise software

Robert Scoble, made quasi-famous for blogging early and often while an employee at Microsoft, now rarely revisits topics that revolve around enterprise computing. But this weekend, in reaction to comments recently made by Bill Gates, Scoble opines about why enterprise software isn't sexy or more specifically why it doesn't garner the attention that consumer-centric software does.

He comes to the following conclusions:

  1. Bill Gates is right, bloggers and journalists DO prefer to talk about consumer technologies
  2. The buyers of enterprise software are a minority that doesn't consult with the majority of the users before making decisions
  3. Media are paid to deliver eyeballs; and talking about consumer topics generates a lot more of them

He concludes his missive with a question:

Any of you have any ideas on how to make business software sexy?

Eimain Finally, he asks for we Enterprise Irregulars to weigh in on the topic:

I wonder what the Enterprise Irregulars think about this? (They are a group of bloggers who cover business software).

Scoble asked what we Irregulars thought, and boy did he get some answers:

I am really proud of the diversity and thoughtfulness that many of my fellow Irregulars brought to bear on this topic over the last 48 hours.

1wood_2 At the end of the day, beauty really is in the eye of the beholder.

<=== I'm no George Clooney, but my wife finds me sexy (I hope!). Heck, even Bea Arthur managed to get married...TWICE!

The consumerization of software is underway; but it's absolutely a SLOW GOING process within large enterprises. I think it's vitally important to keep perspective.

Good software, whether it's sold for millions of dollars to a Fortune 500 CIO or distributed freely to millions of users directly and paid for by advertising, is only as good as the processes it enables.

It can't be said enough...it's not about the code, it's about the PROCESS!

Make users lives easier. Sounds simple, but it's really not.

Don Tapscott joins BSG Alliance

Susan Scrupski left the Garden State (where I call home) to move to Texas and join the BSG Alliance. Today, she let another big cat out of the bag. BSG Alliance is merging with New Paradigm; best known as Don Tapscott's company. I've been a big fan of Tapscott since hearing him speak right after college; and devoured his Digital Divide book which was way ahead of its time (he basically predicted the emergence of social media platforms before any of us know our MySpace from a crawlspace). Since then I've run into him many times at various and sundry conferences, most recently at Enterprise 2.0 in Boston. Don is a well-known author, consultant and speaker. Currently, his book Wikinomics is sitting on a great many best-seller lists. I recently included it on my list of 2007 books; and Amazon.com nominated it as one of the best books of the year.

Don understands cultural change and its impact on business better than most. And the prospect of his insight and outward facing presence in conjunction with the BSG team should be a compelling one.

Congratulations to all concerned, and my apologies for not being able to make it to the Marriott today for the conference. Thank goodness for Veodia and vidcasting.

CIO influence waning?

Friend and fellow Irregular Sadagopan recently penned a thought-provoking article at Sandhill.com discussing the changing role of the CIO:

Meet the New CIO

...
Historically speaking, the CIO role was created to signify an increasing sense of awareness that information had to be managed similar to other important resources such as people, finance and materials. This required managers to plan, budget, evaluate and use information efficiently and effectively.

This new function of managing centered around information called for a different breed of manager – one capable of understanding the management of information and IT in the context of the business’s priorities and challenges. Today, across industries, leading-edge enterprises are completely dependent on IT as their internal engine. When the business model needs to be adapted, changed or shifted to changing economic or market circumstances, it turns to the IT engine to make it happen.

Paradoxically, in this information age, corporate data is increasingly becoming a company asset. While data and information may not manifest on the balance sheet, these are critical business enablers and differentiators not unlike Google's brand or 3M's innovation culture. Gartner recently did a survey with Forbes magazine that found fewer than 50% of CEOs surveyed hold the CIO responsible for the strategic exploitation of information today, but expected that that the CIO would wrest back this responsibility in the coming years...

I encourage you to read the article in its entirety. Sadagopan is an executive with Satyam (recently re-located to the U.S.) and works directly with CIOs of some of the world's largest companies. He goes on to discuss the challenges traditional CIOs face in establishing themselves as strategic decision-makers within the enterprise.

Coincidentally, InformationWeek recently published its own analysis of the changing role of the CIO. It noted that the Society for Information Management recently found that just 31% of CIOs report directly to the CEO. M.S. Krishman, who chairs the BIT program at the University of Michigan said:

"It's IT that runs every business process today," Krishnan says. "And while the IT department takes the responsibility for running those processes--the applications are doing fine, transactions are going great--they don't take ownership."

But somebody will take ownership, he predicts, and soon. "As companies become global, this will become a critical position," Krishnan says. The overseer might be called one of several things: chief operating officer, chief process officer--or chief information officer. But if the CIO doesn't step up, he predicts, "the CIO will be subsumed."

His comments take me full circle. One of the first conversations I ever had with Niel Robertson revolved around the need for Chief Process Officers to emerge. At the time, I was skeptical about adding another layer of CxO complexity in an IT constrained environment. But he countered that the strategic demands of IT would make this an inevitability. I'm still not sure a CPO is the answer, but I do think that the evidence is mounting against CIOs who don't have line of business experience and understanding.

What do you think?

sadagopan cio sandhill.com informationweek woodrow enterprise irregulars

SAP Business ByDesign: Peter Zencke discusses the product evolution

Peter Zencke walks us through the evolution of SAP Business ByDesign; equating early work on the mid-market SAP solution to a "concept car." It's been 4+ years of development and more than 1,000 software engineers.

He highlighted the four key points of differentiation between ByDesign and other midmarket ERP solutions:

  • Completeness
  • Adaptability
  • Ease of Use
  • TCO Reduction

Zencke then showed a video of several of SAP's initial beta customers. Although the video showed four or five, it's my understanding that SAP has 20 live customers with 40+ more in pilots.

The product is designed to provide COMPLETE business process functionality from "order to cash."  The functional footprint covers eight segments:

  • Compliance Management
  • Executive Management Support
  • Financial Management
  • Customer Relationship Management
  • Supplier Relationship Management
  • Project Management
  • Supply Chain Management
  • HR Management

...now on to the DEMO

Note: This is not a recommendation to buy or sell SAP or any other security, but is merely a personal analysis to foster discussion for informational purposes only. At the time of this writing, I and/or funds I maintain discretionary control over, did not maintain a position (long or short) in SAP. We also may, at times, carry derivative options on underlying positions as a hedge.

sap erp business bydesign midmarket ondemand investing software woodrow enterprise irregulars


SAP unveils mid-market solution…ByDesign

The much ballyhooed and oft-discussed evolution of SAP's midmarket software strategy is finally upon us. As I type this, SAP's Henning Kagermann has just announced the availability of SAP Business ByDesign; formerly referred to as A1S.

Business ByDesign is, "the most important announcement of my career" according to Kagermann; heady words for someone who was rather dismissive of the impact of on-demand software architecture just 18 months ago.

Segmenting the Market

One of the biggest challenges SAP will have is segmenting the new offering. Take a look at the opening paragraph of the Fact Sheet we were provided in today's press kit:

The SAP Business ByDesign solution is a new addition to the SAP portfolio of solutions for small businesses and midsize companies. The on-demand business software solution complements and does not replace any of the other solutions in the SAP portfolio. [note: emphasis mine] SAP Business ByDesign specifically addresses a new market of prospective customers: growing midsize companies that typically have not invested in the types of integrated business solutions SAP provides.

To my mind, there is tremendous need and opportunity for a hosted, subscription-based, easy-to-use ERP solution for small and mid-market companies. That said, I don't see how the demand doesn't, at least in part, cannibalize the traditional SMB on-premise ERP solutions; of which SAP has several already in the market.

Henning put up a chart describing SAP Business ByDesign as a solution that addresses an entirely new segment of the market.

Large SAP BUsiness Suite >2500 employees ~$30B market
Midsize SAP Business All-In-One <2500 employees ~$15B market
Midsize SAP Business ByDesign 100-500 employees ~$15B market
Small SAP Business One <100 employees ~$15B market

Note: This is not a recommendation to buy or sell SAP or any other security, but is merely a personal analysis to foster discussion for informational purposes only. At the time of this writing, I and/or funds I maintain discretionary control over, did not maintain a position (long or short) in SAP. We also may, at times, carry derivative options on underlying positions as a hedge.

sap erp business bydesign midmarket ondemand investing software woodrow enterprise irregulars

Reunited and it feels so good

It feels good to be back.

For the sake of my all-too-fragile ego, I'm going to assume many of you noticed I haven't been blogging. In fact, I stepped away from the blogosphere for the entire month of August. What started as simply being a hiatus born out of a lot of real-world developments (more on these later); turned into a cathartic exercise in self denial.

My Problems with the Blogosphere

Truth is, I began to lose my passion for all things blog-related. Writing the blog started to feel more like a job than a way to stretch my intellectual muscles in creative ways. I began to fret that the days I wasn't able to pen something, I had somehow let down my subscribers (many of which are friends and colleagues of some sort). Once I realized I had over 50 half-written blarticles, it just became untenable. But my self-imposed stresses of writing the blog were matched equally by my loss of appreciation for those blogs I was reading.

At the end of July, I had over 600 active feeds coming into my reader. At some point, the collective value of the information began to be superseded by the feeling of noise, redundancy and rhetoric. It seemed like I was reading 50 people's opinions on the credit crunch; and as a result, none felt original. The great voices within the blogosphere were being drowned by the mundane. In the tech world, I began to feel like I was reading the same stories in ten different forms. There are great aggregation blogs and sites which cast a pretty wide net; so why have many of those individual blogs also coming into my reader?

Solution #1: Culling the Wheat from the Chaff

As I type this, I now have 105 blogs in my Google Reader. Down from well over 600. The process was surprisingly easy; and I can't recommend enough the value of pruning your own blogroll. Here were my steps:

  • Walk away for 30 days -- Does absence make the heart grow fonder? I was going to find out.
  • Remove any blog I couldn't remember -- There were blogs in my reader I simply couldn't remember anything about upon my return; they were the first to get the axe
  • Remove any "dead" blog -- Some bloggers just stop blogging (some of you may have put me into that category by now :) ). So anyone that hadn't posted at least once in the last three months is gone [with one exception, Neil!]
  • Remove most aggregation/list blogs -- We live in a long tail world. I'm all for smart people calling my attention to things I might have otherwise missed. But enough already with list blogs. I have my own del.icio.us account. I have my own Technorati favorites. I use my own aggregation tools. So if a person's blog was largely for linking to other people's stuff; it's gone.
  • Remove Valleywag, TechCrunch, Engadget, Scoble -- Given their readerships, I somehow think they'll manage to survive. But the truth is, it's been a long time since I felt I was getting incremental value for the time spent reading stuff that wasn't germane to me.
  • Remove 80% of the financial/investing blogs -- For some reason, I've found far less satisfaction reading about what other investors are doing/thinking/saying than I do reading about what other technologists are up to.

What's left you might ask?

  • The Enterprise Irregulars -- The vast majority of my fellow EIs made the cut; and if there's anything I most regret over the last month it's the lessened frequency of my interaction with all of them both personally and through our blogs
  • Techmeme -- For my needs, Techmeme is the king of aggregation. Gabe hits on the things I care most about; and I never feel like I'm missing out on a major tech story by visiting the Meme a few times a day
  • TechDirt -- Mike and his team are SMART, thoughtful and hard-working people. For my money, TechDirt + Techmeme are basically the perfect daily infusion of what's relevant in the tech landscape
  • SeekingAlpha Alerts -- SeekingAlpha is an incredibly ambitious financial aggregation service that's doing exceptionally well. I've come to know David Jackson (I was a SeekingAlpha contributor in their early days) and think he's building something terrific. SA provides me the tools to get news from the blogosphere that I want, and nothing else. As a stock-specific investor, this is far more valuable to me than the myriad trading oriented blogs I see on so many people's "best of" lists
  • Investment Blogs: Roger, Mish, DealBook, Barry, Ed, AllAboutAlpha, Jeff Matthews -- That's the sum total of my investment-focused blogroll
  • VC Blogs: Brad, Fred Wilson, AskTheVC, Ed Sim, Peter Rip, Paul K   -- A lot of VCs used to be on this list, very few remain
  • Technology Blogs: There are really too many to name here, but they include the ZDNet guys, Eric Savitz at Barrons, Bill Burnham, Sandhill, Om, Marc, Michael, Don, and Ben to name a select few.

Solution #2: Enjoying the Conversation

If I'm to believe my Feedburner statistics, I actually added almost 300 new readers over the five+ weeks I wasn't blogging. I'm guessing that means the key to my cracking the Technorati Top 100 would be to extend my sabbatical for another 17.3 years. :) The point being, seeing that made me remember that my sole reason for blogging is to extend the conversation. I could care less if 50 or 50,000 people read any given post, as long as it a) gets me thinking, b) fosters discussion among my friends and colleagues, and c) invites one or two new people into my sphere of influence that I might never have met otherwise. In 18 months blogging, I've met at least 100 people that I would probably never have otherwise. If I can come away with another 100 over the next 18 months, I've hit the lottery.

But with that realization comes my own "new" self-imposed blogging rules:

  • Sometimes I'm going to have a lot to say
  • Sometimes I'm going to have very little to say
  • Sometimes I'm not going to have anything to say

If there's a subject you want my opinion on, there are ways to approach me. Email always works, or you can leave a comment on my blog, or best yet, you can offer to say hello the next time we're at the same venue.

Alright folks, that's all for now. I'm looking forward to catching up with you all. Although the summer is quiet in many respects, the technology and investing worlds certainly didn't slow down. Time to jump back into the fray and see how my views alter the equation.

The myth of "pull" economics vis-a-vis SaaS?

Charles Zedlewski is one of a handful of bloggers I selfishly wished blogged more often (before the jokes start, yes I realize I firmly deserving of that label too, of late). Every time he puts fingers to keyboard, I know I'm in for thought-provoking analysis.

With the recent rash of SaaS filings, Charles decided to look at the costs associated with the SaaS model and whether or not the "pull" aspect was in fact playing itself out.

What struck me with all three companies was the losses. The first order explanation is quite simple: all the companies spend a ton of money on sales & marketing (between 65% and 100% of revenues). Most of these businesses are the farthest thing from the oft discussed but seldom witnessed “pull model” that’s supposed to lead to superior profits.

The root cause for the losses is a little more subtle. In a recent article, McKinsey consultants asserted that the primary cause is scale. In fact they go so far as to say that these scale economies are nearly identical to those of on-premise software companies.

It's hard to argue with Charles' conclusion, which is that, at least to date, SaaS vendors have foregone margin as a trade-off for growth.

I also wholeheartedly agree with him that it's a question of scale and, Salesforce.com is approaching a point where they will need to make good on the promise of margin delivery. As long as the incremental spend translated one-for-one to the top line, one could make a logical case to continue, but now that the marginal utility of each additional SG&A dollar is driving less than a dollar in revenues, show me the profits.

Note: This is not a recommendation to buy or sell any publicly-traded security nor is it a recommendation to participate (or not to participate) in upcoming IPO offerings of Constant Contact, SuccessFactors, NetSuite or any other company. This discussion is merely a personal analysis to foster discussion for informational purposes only. At the time of this writing, I and/or funds I maintain discretionary control over, maintained a long equity position in CRM and, through a passive investment in a venture capital firm, have exposure to SuccessFactors (privately held). We may, or may not, have interest in participating in the IPOs of these companies or other securities listings. At times, we may maintain derivative options as a hedge on underlying positions.

Facebook: Now that's a platform...

Logo_facebookrgb7inch Facebook has been, by any measure, a runaway success story. Yet, because of its original nature [exclusively for college students], I never really peeled back the layers of the onion and figured it was something "not meant for me." But as most of you know, Facebook has opened its kimono to everyone and, in the process, has become far more accessible for old (class of '96) fogies like me.

Even so, it wasn't until the last two weeks that I've really begun to understand what Facebook represents. I've never been much of a MySpace guy, so I still had little reason to think Facebook would be beneficial for the way I network, communicate, and collaborate. That is, until I started getting invites from colleagues around the world asking me to become their Facebook friends. I would've chalked up one or two requests as random curiosity on the part of my friends, but dozens? That was worth creating a profile and checking it out.

Within minutes I could already see Facebook would be more useful to me than LinkedIn. You can add a layer of detail to your interpersonal relationships that LinkedIn has failed to embrace.

Facebookprofilescreenshot_2
And then I read Marc Andreessen's blog post analyzing Facebook. Make no mistake, Andreessen has taken to blogging in a way few can rival. In fact, it almost pains me to read his blog now because in a matter of weeks he's mastered a form of expression I still toil at after 18 months actively blogging.

Marc does a fantastic job explaining what Facebook is, why it's far more important than many realize, and why it's only going to get more important.

[Marc's Blog] Analyzing the Facebook Platform three weeks in...

After spending some time building up my Facebook Profile and talking to colleagues about its power as a platform, my mind began racing about how Facebook (and other popular social networking sites like MySpace) is potentially disruptive in a way that many corporate focused "platforms" really aren't. I've spent a fair amount of time dissecting Salesforce.com's AppExchange, and SAP's SDN, and WebEx Connect; yet none of these hold the power that Facebook has, in my view. Despite feeling like I was onto something intuitively, I have been racking my brain to articulate why Facebook is more important than the aforementioned business platform plays.

Thanks to my good buddy Jeff, I no longer need to worry. Jeff hits the nail on the head as he posits the importance of Facebook and why it's different from other "platforms" we hear about so often in the world of enterprise software.

...Without question the large vendors look at Myspace and Facebook as mere toys and that reflects as much a misunderstanding of what these things are as it does the cultural disconnect that many enterprise software executives have with the broader market. They will say things like "our customers don’t use those services" without considering that while the CIO isn’t using them it’s an odds on favorite that a good number of people in the organization are.

It’s also worth pointing out that enterprise vendors consistently put themselves at the center of the universe like an aging movie star that doesn’t realize s/he is told old to play the role (think Sharon Stone in Basic Instinct 2). SAP/Oracle/Microsoft/IBM may be the gorillas in the global enterprise market but selling to 50,000 global customers out of a market of 100 million businesses (that’s a guess, I don’t know what the actual stat is) is hardly going to drive the growth each is predicting. This dovetails with something else I talk about frequently, selling to users instead of organizations.

The initiatives that each of the MISO vendors have spawned around widgets is a good start, but it’s not enough. Prosumer users really require the ability to create rich applications outside of the usual development platform, and to that degree SAP and Oracle in particular should be expanding their API support to include Facebook and Myspace integration...[cont.]

When we talk about things like "Enterprise 2.0", I think the myopic view that focuses on new tools [i.e., wikis, tools, RSS aggregators] completely misses the sea-change we're undertaking. We've all been asking ourselves when (and if?) business-centric analogs would emerge for the massively successful social networking platforms; without realizing that these sites may BE THEIR OWN BUSINESS ANALOGS.

What's going to be the Enterprisey version of Facebook? FACEBOOK.

EI Dinner...good food, good friends, good ideas

Ei_green_rounded_banner_1_3 This evening, the Enterprise Irregulars descended on La Famiglia Giorgio restaurant in Boston for a get together. As with all EI get-togethers, I was sure it would be a worthwhile experience, but tonight proved to be particularly entertaining.

  • While Andrew McAfee and I may agree on the importance of Enterprise 2.0, we vehemently disagree about the place Led Zeppelin holds in the rock 'n roll pantheon
  • Luckily, Andrew came to his senses when it came to ranking the Beatles (best all time) and Ray Charles (more important than Elvis) among music greats
  • Virtualization is a grossly underappreciated tectonic shift in the technology landscape. Calling VMWare the most important IPO in the last five years would hardly be a stretch
  • The quest for platforms continues apace, with an ever-decreasing line between consumerized portals (e.g., Facebook, MySpace) and enterprise portals (e.g., AppExchange, WebEx)
  • Facebook is a MUCH more important platform play than I realized
  • Google is going about things in the right way, they are building a development community and charging nothing for it
  • The situation with Yahoo! is a house divided, some believe Jerry will bring much needed change, while others wonder why he represents any major change at all
  • We have some brilliantly talented entrepreneurs in the group, including Neil Robertson (Newmerix), Greg Reinacker (NewsGator) and Charlie Wood (Spanning Sync)
  • Atlassian is an impressive company. Self-funded, cash flow positive, significant revenue base with a high growth rate. Yet, the founders are in no rush to monetize their company. They're more focused on pushing toward $100mm revenue mark and expanding levels of employee ownership. I had the chance to spend time with Jeff Walker (CEO) and Scott Farquar (co-founder) this week and they are top notch guys, both personally and professionally
  • There are a ton of startups at the conference that fall into the "me too" category, but it only takes one or two of them to emerge to make the entire effort worth the while
  • I may not be the best looking Wood in the Irregulars, but I'm damn sure the youngest :)
  • There is a lot of fear that the U.S. equity market is due for a major correction, and some are wondering when we'll see an end to the M&A engine
  • The Enterprise Irregulars is a powerful community, and we haven't begun to tap into its potential
  • EI should be a sounding board for ideas big and small
  • We underestimate our impact and presence within the enterprise technology ecosystem
  • EI is powered by the confluence of disparate viewpoints; the value is in the differences, not where we agree
  • We, as a group, need to do a better job of eating what we grow. There are a lot of collaborative tools to increase the effectiveness of our day-to-day communication, and we've done a poor job of leveraging them

I probably left out a lot of meaningful nuggets, but these will do for now. If you were at the dinner and think I missed something, say so in the comments. Otherwise, until next time...

McAfee vs. Davenport: McAfee wins 12-rounder on points

As promised, the Enterprise 2.0 conference started off with a much ballyhooed debate between Tom Davenport and Andrew McAfee over the importance of Enterprise 2.0. Dan Farber moderated the discussion and, in his usual manner, asked poignant questions and knew when to get the conversation moving on in another direction.

Overall, there was more agreement than disagreement, which speaks to the courteous and professional nature of both participants. Unfortunately, I think the debate left a little something on the table as a result. There were times, in my humble opinion, when they both had VASTLY different viewpoints on a subject but refused to cut into one another's underlying premise. Again, not surprising, but as an observer I would've liked to see a little more passionate opinion than dispassionate logic.

Is it evolutionary or revolutionary?

Boiling down their disagreements to the core, it comes down to Davenport believing the large corporations have an embedded culture that changes slowly and over time. Enterprise 2.0 technologies, in and of themselves, aren't revolutionary enough progressions to alter the glacial nature of changing business processes. Meanwhile McAfee believes we're early in the process, but we've seen enough anecdotal evidence to suggest we're about to see a tipping point where social, freeform collaborative tools lead to the next way of productivity improvement.

Some Hits (& Misses)

  • Why isn't SharePoint considered Enterprise 2.0? -- Davenport tried to point toward Microsoft SharePoint as evidence that blogs and wikis aren't game-changing technologies. Yet, where he missed the boat is assuming (incorrectly) that SharePoint isn't part of the Enterprise 2.0 revolution. Just because it's a Microsoft product hardly removes it from the equation.
  • It's not about the technology, it's about the people -- In this vein, both agreed. The big difference is that Davenport seems to think people can't and won't change, that the inherent nature of today's worker encourages them to protect their silos of knowledge and allowing an open, non-hierarchal platform simply won't work. McAfee agrees that conventional business process is the biggest gating factor to E2.0 adoption, but sees this as an opportunity for "leaders" vs. "bureaucrats."
  • We still need proof points -- Andrew freely admits that, to date, we have limited evidence of enterprise-wide adoption of E2.0 practices. Given the nascent state of the market, this is not surprising but neither does it help further the cause. Technology adoption is often a self-fulfilling prophecy, so we need those forward thinking organizations who are embracing E2.0 to open up their doors and be studied. With that, we'll help further the path of adoption.
  • The components of SLATES aren't new, but the aggregation of them IS -- Tom took the time to break down each component of SLATES (Search, Linking, Authoring, Tagging, Extensions, Signals) and made the point that we've had variations on those components for decades in many cases. While that's true, he misses the entire point of E2.0. It's the COMBINATION of these components in an easy-to-deploy paradigm that opens the door to evolutionary business practices. This is a classic example of the total being greater than the sum of its parts.

You can watch the entire debate HERE, courtesy of Veodia. Andrew blogged about the experience, and believes the key point of disagreement relates to whether E2.0 is something new:

After one review of the video, it seems to me that our main point of disagreement concerned the extent to which the E2.0 toolkit really is something new, or whether it's just an incremental extension to the longstanding set of technologies for collaboration, interaction, and information sharing. Tom stressed repeatedly that companies have been deploying such tools for decades, and he kept explicitly and implicitly asking the important question:  what, if anything, is new now?

In my opening remarks and a few times subsequently, I tried to articulate my answer to this question: that digital platforms that initially impose little or no structure on interactions, but that contain mechanisms to let patterns and structure emerge over time, are actually quite new. I've written about this a few times before, and for me it's the key to understand what's going on currently, and why so many of us are hopeful that the new toolkit will take off within companies. The idea of using group-level technologies not to impose structure (roles, identities, hierarchy, workflow, data formats, taxonomies, etc.) but instead to try hard to get out of the way and let structure emerge is, I maintain, a pretty novel one. And, I further maintain, a pretty important one.

Dan Farber has a synopsis from his POV as the moderator, and sits squarely on Andrew's side of the "is it new?" debate:

Davenport countered that Enterprise 2.0 doesn’t offer much new and it’s not revolutionary. Tags, search, knowledge management, email and links have been around for years, and haven’t done much to democratize corporate cultures, he said.

That’s like saying the Internet is not new. Yes, it’s been around since 1969, but in the last decade the Internet has revolutionized communications globally. That’s new. Enterprise 2.0 doesn’t have to be completely new to have a significant impact on corporate culture, productivity and competitiveness. Imagine Facebook in a business context, mashing up people and information in ways that help companies run faster, smarter and more efficiently.

In the end, and as a user of Web 2.0/Enterprise 2.0 technologies and services, I have to side with McAfee’s sense, as opposed to empirical evidence, that Enterprise 2.0 will eventually become mainstream.

I credit Andrew with the win, but not by knock out. While ultimately I think Andrew's view on things is much closer to the reality, one can't dismiss the very early nature of E2.0. We're clearly in a hype cycle right now, it's just a question of whether the promise actually matches the hype. Sometimes it does (targeted ad placement, virtualization), sometimes it doesn't (B2B marketplaces, ESBs). What do you think? Is E2.0 a revolutionary paradigm shift or an evolutionary one?