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All Contents © 2007 Burton Group. All rights reserved.

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1 All Contents © 2007 Burton Group. All rights reserved.

2 Harnessing Collective Intelligence: Shifting Power To The Edge Mike Gotta Principal Analyst April, 2007

3 Harnessing Collective Intelligence What you should know about me… Involved in collaboration and knowledge management strategies since early 1990s (Aetna) Industry analyst since 1996, joined Burton Group in 2005, formerly with Meta Group Principal Analyst, Collaboration & Content Strategies Located in north-central Connecticut (home office) Research focus: real-time collaboration, social software, and the organizational dynamics around teaming, community-building and social networks Fascinated by how people connect, communicate and find/share information within group & network contexts Coached Little League ponytail softball for 11 years 3

4 Agenda What I will cover today… Thesis Social computing trends are having a disruptive and transformational impact on communication, information sharing and collaboration strategies Socially-oriented systems create inter-connections across groups and communities that enable workers to leverage the collective intelligence of an organization Sense-making tools and decision-making systems are more critical than ever before but need to be re-invented for a net- centric environment Key Points Social software does not mean no structure / no formality Collective intelligence should lead to purposeful action 4

5 Why Shift Power To The Edge? Many organizations are defined by need to know structures 5 Top-down hierarchy & command-control culture diminishes awareness Formal information policies, process rules & workflow roles obstructs engagement 1 2

6 Why Shift Power To The Edge? Despite best intentions - enterprises live in a house of pipes Communication flows are noticeably constrained Information sharing is pushed into walled gardens Collaboration occurs within activity-focused groups Result: Unreliable sense & respond mechanisms impair organizational agility and resiliency Unrevealed insight & resources hinders decision-making Avoiding risk ends up creating risk 6

7 The Answer: Collective Intelligence Moving from a need to know to a right to know mindset The two truly transforming things, conceivably, might be in information technology and information operation and networking and connecting things in ways that they function totally differently than they had previously. And if that's possible, what I just said, that possibly the single-most transforming thing in our force will not be a weapon system, but a set of interconnections and a substantially enhanced capability because of that awareness. It can simply be in connectivity. It can be in interoperability. It can be in taking things that every single of which exists presently and managing them, using them, connecting them, arraying them in a way that has a result that is transformation. Secretary of Defense Donald Rumsfeld, 8/9/2001,Town Hall Meeting, Washington, D.C. Note: Bold emphasis added 7

8 Net-Centricity Transforms Participation Levels Digital Life is redefining consumer awareness and engagement Blogs Blogger, LiveJournal, Typepad, WordPress… Wikis Google (JotSpot), Wetpaint, Wikispaces… Tagging & Social Bookmarks, Flickr, Ma.gnolia, StumbledUpon… Social Filtering coRank, Digg, Reddit, YouTube… XML Syndication (e.g., RSS) Bloglines, Google, NewsGator, Yahoo… Social Networks Facebook, LinkedIn, Twitter, Xing, YouTube… 8

9 What Does This Mean For The Enterprise? Management and strategists are re-discovering that people matter - talent, teaming, community, crowd sourcing… Falling communications costs, globalization, and the increasing specialization of knowledge-based work are making collaboration within and among organizations increasingly important Nearly 80% of senior executives in a 2005 survey said effective coordination across product, functional, and geographic lines was crucial for growth, yet only 25% described their organizations as effective at sharing knowledge across boundaries Source: McKinsey Quarterly, 2006 Number 3, Mapping the Value of Employee Collaboration 9

10 Broadcast-post communication models help inter-connect people with similar attention areas, enabling shared awareness Social Systems Promote Collective Intelligence 10 Blogs Bookmarks Feeds Stream Processing Systems Aggregation, Profiling, Pattern & Scenario Building, Correlation, Management & Augmentation Tags Feeds Blog This Notification Services Expertise Location, Communities & Social Networks Comments

11 Collective Intelligence Is Environmental 11 Network ecologies can be influenced but not managed Ambient Noise Walled Gardens Dis-engagement Command & Control Low Relevancy Low Delegation Low Transparency Low Reciprocity Social Network Diagram Source:

12 Net-Centricity & formal structures are not mutually exclusive Empowering Process With Social Software 12 People Work & Organizational Structures Know-how Collective Intelligence Transform Cost Reduction & Avoidance Productivity Growth & Innovation Performance Status-Quo

13 Collective Intelligence & Handling The Unexpected Disruption: When something happens – what happens? 13 Probability Consequences Low (Unexpected) High (Anticipated) Enormous Firefighting Triage Crisis Management Catastrophe Problematic

14 Disruption & The Moment Of Need Crisis Management: Social systems augment applications that help structure collective decision-making 14 What experts do we have? 1. CXO informed of a health crisis that threatens local operations Weve effectively handled incidents like this elsewhere 2. People search to identify available resources 3. Presence-enabled expertise application locates experienced people available at the moment-of-need 4. IM messaging establishes rapid response team 5. Escalation to a real-time group conferencing application enables collective decision- making in a structured environment to weigh options and define an action plan

15 Collective Intelligence & Sensing Before Knowing Detection: What changes by anticipating vs. reacting? 15 Probability Consequences Low (Unexpected) High (Anticipated) Enormous Early Warning Tactical Alternatives Strategic Planning Connecting The Dots Problematic

16 Detection & The Aha Moment Connecting the dots: Social systems and group conferencing applications enable connected decisions 16 Jane Doe Blog This looks Interesting 1. Local analyst updates team wiki on quality control issues In Asia/Pac market 2. European sales manager tags entry ABC in a social bookmark system 3. U.S. field tech subscriber to ABC tag blogs it, adding correlation to current service issues 4. Product manager picks up Jane Does post, alerts sent to all parties to attend brainstorming meeting 5. Real-time group conferencing application structures decision- making options for production and helps prioritize next steps and define supply chain action plan A/P Wiki A/P Wiki

17 Harness Collective Intelligence: Points To Ponder The trends are undeniable and the opportunities compelling Growth and innovation demands are compelling organizations to explore new ways of leveraging talent across organizational boundaries Demographic trends are causing management to fundamentally rethink employee work models Evolution to network-oriented organizational models is forcing strategists to re-think the role of core institutions Convergence between a digital lifestyle and digital work style is causing a collision between how workers and management view socially-oriented technology 17

18 Harness Collective Intelligence: Act Now The trends are undeniable and the opportunities compelling Understand and address the organizational dynamics blocking evolution towards net-centricity Agree on a governance framework for information sharing, communication and collaboration Leverage informal groups, communities and networks – they are the building blocks for collective intelligence Understand that socially-oriented systems require new design criteria and a focus on adoption patterns Sense-making tools and decision-making systems are more critical than ever – but need to be re-invented for a net-centric environment 18

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