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Are social collaboration features useful/ appropriate for enterprise software?

Earlier today, NetSuite announced a strategic partnership with enterprise social networking company, Yammer. In Q3 of this year, Yammer will be integrated into the NetSuite application and allow users to collaborate & discuss "records" in real time. The demo this morning showed the products working together in a familiar Facebook-like activity stream.

Are social media/ collaboration-type features useful for enterprise software applications like ERP and CRM? What benefits would this bring to the market. Also what risks are there, especially with security??

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Steve Christensen
Chairman/CEO, Babbleware Inc.
Posted on June 22, 2011

Social collaboration already has an impact on the enterprise. Glen is right, you can't do much with it unless the actual processes are modified. New versions of ERP will likely start to include, as NetSuite is doing, collaboration platforms such as Yammer. These types of platforms are important because they are secure. But according to Ray Wang with Constellation Research, the average ERP is 11.5 years old. Gartner estimates to become "current" on the version of ERP would have cost $500B in 2010 and $1T by 2015. Modifying, upgrading or replacing these versions just doesn't happen without tremendous cost, risk or disruption.

You can "retrofit" existing ERP technology to include Social Collaboration. Our software can achieve this without modifying, integrating or replacing the ERP. In fact, IT doesn't even have to be bothered. Here is a blog summarizing how/why that can happen: http://www.babblewareinc.com/?p=3245

The Social Supply Chain Strategy is a draft document we are completing that identifies how, where and why companies can transform their old-school ERP. If anyone would like to receive a copy of it, pre-release, please contact us at: http://babblewareinc.com We will send you a copy and hope to receive your feedback.

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Sean Kline
President & CEO, Turbotek Computer Corporation
Posted on May 11, 2011
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Absolutely. This is core Web 2.0 technology that brings the network effect to enterprise software. The more users collaborating, the more value to the network of users. As I understand it, this is meant for intra-Enterprise collaboration, so security is a function of how good the Enterprise security profile is rather than some new threat introduced by Web 2.0 capabilities.

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Rushabh Mehta
Founder, ERPNext
Posted on May 11, 2011
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I would say it will change the way Enterprise Software will be designed and at the same time this is an opportunity to explore how social features can be used to facilitate better communication.

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Glen Marshall
Principal, Grok-A-Lot, LLC
Posted on May 12, 2011
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Social collaboration is useful *if* the relevant business processes are modified to allow such collaboration and there is a formal accountability for the level and quality of participation. This includes championing the use of the collaboration tool.

Technology that does not support a defined and accountable business purpose is wasteful.

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Brett Beaubouef, PMP, CISA
IT Director, NTT America
Posted on May 15, 2011
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I believe that social media/ collaboration-type features may be useful in a supporting role at best. To have effective collaboration the parties must first have a common understanding and language for the business process. Organizations that are more functional-based (organized) and not business-processed based may not get additional value from collaborative technology. For an example of generating this alignment please see the following blog article:

http://gbeaubouef.wordpress.com/2010/10/27/erp-business-it-alignment/

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Manuel Jaffrin
Co-Founder & MD, GetApp.com
Posted on May 16, 2011
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Integrating social media into customer relationship is really an important trend because, on the Internet, the channels are much more dynamic Not only traditional CRM but also new generation help desk software such as Assistly are now embedding Social Media capabilities to enhance customer service. A good list of Social CRM platform can be found at http://www.getapp.com/social-crm-software

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Manuel Jaffrin
Co-Founder & MD, GetApp.com
Posted on June 21, 2011
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A good way to understand how social collaboration can be implemented in enterprise software is to have a look at Podio Collaborative Work platform. It actually introduces many concepts taken from traditional social networks tools and embed them into a project collaboration environment. You can check out a full review of the product at http://www.getapp.com/blog/podio-is-fun-clean-and-simple-user-interface-to-cr...

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Steve Christensen
Chairman/CEO, Babbleware Inc.
Posted on June 22, 2011
  • Recommended by:

Social collaboration already has an impact on the enterprise. Glen is right, you can't do much with it unless the actual processes are modified. New versions of ERP will likely start to include, as NetSuite is doing, collaboration platforms such as Yammer. These types of platforms are important because they are secure. But according to Ray Wang with Constellation Research, the average ERP is 11.5 years old. Gartner estimates to become "current" on the version of ERP would have cost $500B in 2010 and $1T by 2015. Modifying, upgrading or replacing these versions just doesn't happen without tremendous cost, risk or disruption.

You can "retrofit" existing ERP technology to include Social Collaboration. Our software can achieve this without modifying, integrating or replacing the ERP. In fact, IT doesn't even have to be bothered. Here is a blog summarizing how/why that can happen: http://www.babblewareinc.com/?p=3245

The Social Supply Chain Strategy is a draft document we are completing that identifies how, where and why companies can transform their old-school ERP. If anyone would like to receive a copy of it, pre-release, please contact us at: http://babblewareinc.com We will send you a copy and hope to receive your feedback.

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Harvey Justmann
Supply Chain Manager
Posted on June 23, 2011
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With people being the greatest asset of any company, to omit the team and threads of Emotional Intelligence out of an ERP solution during these days of Socialization in business would be an incomplete ERP system.

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Steve Christensen
Chairman/CEO, Babbleware Inc.
Posted on June 24, 2011
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Harvey...don't you think they've stretched ERP's far enough? 20 years ago they were complex, integrated applications that consolidated all of the corporate functions. There scope has crept so much now that there isn't a corner of the business they don't pretend to cover.

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Harvey Justmann
Supply Chain Manager
Posted on June 24, 2011
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Thanks for your comment Steve. I know well what I know, and won't pretend to know what I don't know. I've had very limited experience with ERP systems. During my career I have had the opportunity to work at every level of an organization, from the factory floor, to plant and warehouse manager, product development manager, partner, president, COO and CEO, with 2 successful start ups, one for 16 years.

If, in fact, ERP systems contain some element of people management that's good. My point is it really doesn't matter how many IT or manual systems a company has. A company can never meet it's potential without senior and middle management having it's eyes wide open to measure and monitor the Emotional Intelligence factor, the dynamics and efficiencies of it's people. My point may be overstated, but it only takes a few bad apples to spread organizational cancer. It's ALL about your people, their attitudes and their level of productivity. And everything, all that I've mentioned starts with the CEO.

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Steve Christensen
Chairman/CEO, Babbleware Inc.
Posted on June 24, 2011
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Harvey - I completely agree. I think secure social networking as part of any business is a great way to avoid isolation for the employees. By being able to contribute to the improvement of the company and not have their results recognized certainly causes the organizational cancer you've identified.

I was simply stating that an ERP has stretched far enough functionally. Especially since it is all about the people anyway.

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