Managing Automation - September 2008 - (Page 6)

david r. brousell/EIC TAKE 1 The adoption of new technologies often follows predictable patterns. Experimentation at the grassroots level leads to ever-wider proliferation, which, ultimately, leads to the formulation of policies and procedures to govern and channel the experimentation. There are now early signs that this pattern is playing out with so-called Web 2.0 technologies. A new survey by McKinsey & Co. reveals that business expectations surrounding Web 2.0 tools — such as wikis, blogs, social networks, and mashups — are quite high. In a survey of more than 1,900 organizations completed in June, 60% of those satisfied with Web 2.0 technologies said they consider 2.0 tools to be a driver of competitive advantage for their companies. At the same time, though, the survey reveals a looming problem common to the historical pattern now unfolding: More than a quarter of respondents indicate that their companies can’t understand the financial return from 2.0 investments. Prior technology eras showed similar conflicts. Whether it was distributed computing, PCs, or client/server systems, emotion always preceded rational planning. This is the way it should be. Someone or some group has to get excited by the idea of the technology without regard for such considerations as return on investment or market share. Passion drives experimentation; experimentation reveals the possibilities. And each new chapter in technology appears to develop faster and persist for a shorter time than the preceding one. Web 2.0, according to McKinsey, today appears to be at the crossroads of experimentation and more serious business usage. McKinsey says there is a discernible shift from experimentation to use of the tools “as part of a broader business practice.” Of those who are satisfied with their tools, some 2008 Web 2.0 Gets Real Dbrousell@thomaspublishing.com A McKinsey & Co. survey shows that such technologies as wikis, blogs, podcasts, and Web services are taking root in business, but they need cultivation. are changing their companies’ management practices and organizational structures, including opening up their “business ecosystems” by encouraging customers to participate in product development. “Successful companies already use Web 2.0 for business applications such as communicating with customers and suppliers; soon they may use it to drive innovation,” the survey concludes. But what the survey also suggests is that the adoption of 2.0 is moving quickly. Take Web services, for example. McKinsey says that 58% of respondents use Web services in their companies. Thirty-four percent are using blogs, up from 21% last year, and 29% are conducting podcasts, up from 23%. At the same time, though, there’s a rising tide of issues with 2.0. In addition to the 28% who say their companies can’t understand the financial return, another 22% say their corporate cultures still don’t encourage the use of Web 2.0 ideas. Nearly as many complain that their companies are too hierarchical and that they don’t have the internal skills to implement 2.0 technologies. Where all of this friction will lead us, of course, is down a road well traveled. And that road takes us to management’s door. In companies now moving beyond experimentation with Web 2.0 technologies, management needs to shift the business mind-set from tactical exploitation of 2.0 to strategic positioning and deployment. Yes, it’s that old refrain — you need a comprehensive strategy to do 2.0 right. But be careful to keep experimentation alive through this process. After all, technology is a never-ending story. What’s your experience with Web 2.0? Write to me at Dbrousell@thomaspublishing.com. s maonline managingautomation.com For more of David R. Brousell’s views, visit: t After Gates www.managingautomation .com/takeone50 t The Culture Gap www.managingautomation .com/takeone49 t Unlocking Energy Efficiency www.managingautomation .com/takeone48 ma 6 September Photo: Peter Kolk http://managingautomation.com http://www.managingautomation.com/takeone50 http://www.managingautomation.com/takeone49 http://www.managingautomation.com/takeone48

Table of Contents Feed for the Digital Edition of Managing Automation - September 2008

Managing Automation - September 2008 Contents Take 1 Letters Tech Vendors Defy Economic Slump by Plugging into Developing World Growth New E2open Chief Outlines Plan to Accelerate Growth Is This Marketing as It Used to Be or Something New? The OMAC Group Attempts to Widen Its Influence Automation Federation Names Chief, Plots Growth Notes Cover story: The Innovation Gap Special Report: Meet the Progressive Manufacturing High Achievers Progressive Manufacturer of the Year Business Model Mastery Innovation Mastery Customer Mastery Supply Network Mastery Data & Integration Mastery Education & Training Mastery Leadership Mastery Operational Excellence Mastery Special Report: Catching the Wireless Wave Part 1: No Clear Infrastructure Winner Part 2: Wireless Apps Take Wing Part 3: The Human Side of Wireless Product Scan Advertiser Index Next

Managing Automation - September 2008

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.