How the BRM Mindset Prepared Me for C-Suite Leadership

From BRM to CIO

I have been CIO with Mark Anthony Group for barely three months and it’s been an amazing ride already.

My story as CIO is still being written.

In preparation to be a keynote storyteller I asked myself, how has Business Relationship Management (BRM) impacted my journey?

Well, let me tell you…

I began volunteering in 2013, the year BRM Institute was founded. It was my way of giving back and supporting the global BRM community. Little did I know, this experience would transform me as a technology professional, as an individual and as a leader. Through BRM, I found my purpose and built lasting relationships. BRM changed my mindset which ultimately strengthened my leadership capacity. Let’s dive deeper into the themes which have proven most important in shaping my story – purpose, relationship, mindset, and leadership.

Purpose

After an unusual turn of events, I ended up in a technology career and, ultimately became a CIO. However, this was not supposed to be. When I was growing up, my dream was to have a successful career in finance and accountancy working for the biggest conglomerate in my home country, the Philippines. This company is the San Miguel Beer Corporation. As a kid, that was my goal. After high school, I was accepted to one of the best finance and accountancy university programs in my country and I was ready to get started on my dream.

In 1993, my parents went to the university in Manila to enroll me. In those days, you had to physically enroll at the university and my parents were doing this for me. Soon after, I got a call from my mom. She said, “We forgot your birth certificate at home and it’s a mandatory requirement for enrollment.” Long story short, I lost my accountancy slot which was a quota program and was relegated to Information Technology (IT). I went into the program thinking I’d shift to Accountancy the following semester, but here I am in IT 27 years later.

Ironically, my younger brother is a finance manager in San Miguel today. He is very happy, but I can’t imagine doing what he does. I am happily where I’m supposed to be.

Declare Your Dreams

At BRMConnect 2018 in San Diego, I shared a framework used to find purpose which is centered around reflection and actions within three concepts: storybeliefs and aspirations.

Story – is the context of who you are. It’s your personal journey. Your story evolves as you go through life and professional experiences. Your stories shape who you are.
Beliefs – is what you believe in, your ideology will give you the compass you need to remain consistent and likeable over time. It drives your behavior and mindset.
Aspirations – are what you want to be, it is the idealistic view of what you want.

Aspirations is the ability to dream about the future, while being inspired in the present to reach those dreams.”

Dr. Russell J. Quaglia

​Deep reflection and determined action toward one’s story, beliefs and aspirations are when purpose-finding becomes self-sustaining and powerful. Deep reflection can sustain inspiration for your purpose but without action, it can’t sustain itself; without action, the purpose is just an inspiration.

In San Diego, I called out my aspirations and my dreams to become CIO.
Visualizing your goals and desires solidifies your intention. Solid intention opens your heart and mind to the people, resources, and the help needed to realize them. There is amazing power in visualizing your intention, it is the origin of action! For me personally, discovering purpose is accomplished through reflecting and acting on your stories, beliefs and aspirations. If you get lost, do it again and again.

Relationships

Roughly 11 years ago, I started to venture into some serious blogging. At the time, I was working for CEMEX, a global building materials company, and I remember attending a townhall meeting hosted by CEMEX USA’s EVP, Ira Fialkow. After his talk, Ira came over to me and said, “Hey, I read your blog and I love it.” Ira was the boss of my boss’s boss so, you can just imagine what it was like for me. Our interaction started a mentor-mentee relationship which continues to this day.

Months later, I met Vaughan Merlyn, a sought-after management consultant online and one of the co-founders of BRM Institute. At first, we were just collaborating and engaging with each other through our respective blogs. Simple collaboration led to emailing, and to phone calls. One such call, Vaughan told me, “If you ever need anything or would like advice or talk about IT, you can call me anytime.” Through my relationship with Vaughn I found free consulting, a mentor and a friend.

Vaughan invited me to join BRM Institute in 2013 as one of the founding members. A year after, I took on a role at Constellation Brands as VP BRM. The executive recruiter discovered me through BRM Institute with CEO Aaron Barnes’ recommendation.

This year, I found myself in countless calls with many of my mentors to explore the CIO opportunity with Mark Anthony Group. There are many others I learned from in my vast relationship network: Ibrahim Jackson, Sheila Smith, Arnie Weatherall, Roy Youngman, Peter Lijnse, Aaron Monroe, Sergio Zarate, Kip Fanta. The list is seemingly endless.

This is the power and value of my BRM community – which has been so good to me – manifested in the strength of my relationships. This is an example of accessing infinite value through relationships. If I take a moment and think about the best work relationships I’ve ever had and picture them in my mind, I think about these people. In a great relationship, individuals invest in each other. They become partners, mentors, friends.

Leadership

Fortunately, before the pandemic, I was able to travel home to the Philippines to celebrate my father’s 70th birthday. Before my trip, I reached out to the head of my hometown alma mater to pitch an idea. Spending time giving back to my old high school by speaking to upcoming high school graduates was something I desired to do. I spoke in an auditorium full of graduating students for an hour, sharing steps to a purpose-driven career. When the students spontaneously sang a happy birthday song for my father when I introduced him, was my favorite part of the day.

In the past, I’ve viewed leadership mainly as an exercise of power performed by particular individuals in leadership positions. To me, those were the individuals with the leadership traits and behavior.

Maintaining a goal-oriented, driven and focused mindset, I aspired to achieve those leadership positions. I pushed myself every step of the way, which got me to a certain point. Unfortunately, I became stuck for a few years. In fact, in 2009, I strongly considered investing time and money to attend a premium MBA program thinking it was a career booster or my way up the leadership chain. I seriously looked at several programs, researched options and did my financial analysis.

I remember consulting with my mentor, Ira. He immediately commented how I could be mortgaging my future by going in that direction. He said, “Knowing you, I believe you can achieve your goals just working out your strengths.” His advice struck me like a bolt of lightning. Immediately, I realized my mindset was wrong. Ultimately, what I needed to do was to expand my network, connect and engage. One way to expand your network is to give your time, to volunteer and to mentor others. By giving back you receive so much in return; you sharpen your knowledge by learning from others and you find mentors.

My renewed resolve to focus on others and add value to them inspired me even more. It eventually increased the energy of those I partnered with and the teams I led.

• I volunteered and led various teams at BRM Institute
• I doubled down on mentoring others which energized me and I learned a lot in the process
• I gave back where and when I could

Look for opportunities to give your time to others and volunteer. In my experience, the return will surprise you.

Instead of an MBA, BRM became my accelerator. I learned the most important shift anyone must make to become a leader is from a soloist to a conductor; from a soloist to an orchestrator; from a soloist to magic-in-the middle. You can be a successful person on your own, but not a successful leader. I aim to be a successful leader.

Now, I see the essence of leadership in a more practical way. I see leadership as a practice rather than residing in the traits or behaviors of particular individuals. I realize the potential in driving leadership that is convergent, collaborative, collective, and compassionate.

Mindset

During my Philippine trip earlier this year, I jumped into the Ulot River, or Monkey River translated from the local dialect. So-called wooden torpedo boats powered by a 16-horsepower engine, cut through rapids at speeds of up to 160 kph. We got to a point where I could jump into the river and get swept away several hundred meters, eventually clinging to a rope which pulled me to safety. I did the jump twice!

You know the feeling when you’re determined to do something and you’re really excited about it, but you’re scared at the same time? You’re ready to act, but you keep finding excuses to delay because of fear.

Maybe it’s because you’re:

  • Telling yourself it might not work
  • Not confident about what you know
  • Afraid of what other people will think or say about you
  • Focusing on your previous failures

Every single one of these thoughts and feelings is driven by fear, or more accurately, your mindset around fear. If you are dedicated to understanding why you feel a certain way at any given time, you have the ability to shift your mindset for the better.

When I jumped into the Ulot River, I was scared. But I was also determined to jump.  When I talk about breaking through fear, I don’t mean the absence of uncertainty. As a result, I’m able to (and you can, too) embrace the fear and break through it.

BRM taught me two ways to break through fear by changing your mindset.

1. Community – surround yourself with the right people
2. Language – Cultivate the right mindset

Surrounding yourself with the right people on your journey makes all the difference.

For me, it all began with a declaration in 2018 at BRMConnect, San Diego. There, I shared how I aspired to become a CIO. I believe visualizing your goals and desires solidifies your intention. Solid intention opens your heart and mind to the people, resources, and the help needed to realize them.

Having support is unparalleled, because when you feel like you can’t take that next step – when you doubt your capabilities and fear what you have to say won’t matter – my BRM community has been there in those moments to help me move forward and break through.

The language you use when you talk to yourself and others can shift how you think, feel and perform. It can be something so simple people often overlook it. For language is a lens into one’s behavior. Meaning, the words you use to communicate are a precursor to your actions. Through the process of advancing BRM capabilities and philosophies, BRM changed the way I “speak IT”. This internal shift in language usage began a mindset cultivation process which then caused my approach to life, business and leadership to change.

Relationship-Centered Organizations are Equipped to Face any Challenge

When the collective knowledge on BRM was first assembled for the first Body of Knowledge in 2013, it centered around frameworks, processes and competencies to support BRM as a role and organizational capability. Looking back, I am in awe of how much those team efforts accomplished. The effort did not end there as BRM continues to evolve with the contributions and experiences from the single, global BRM community. The great thing about this community and its leaders is its openness and boldness to evolve.

As I reflect on the topic of my keynote, “how my CIO journey began with BRM”, it resulted in a realization which eventually became the theme: Through BRM, I found my purpose and built lasting relationships. BRM changed my mindset and strengthened my leadership capacity. I discovered what propelled my journey to become a CIO is embracing and advancing BRM as a philosophy. BRM is a mindset, a value system and a purpose-driver. I came full circle with BRM philosophy.

Business and organizational challenges have intensified due to the major impact of the global pandemic. When such challenges intensify, you may need to redesign strategies, merge or dissolve businesses, find new channels for your products, or reimagine work and go-to-market tactics.  These big challenges have no easy answers.

Perhaps even more difficult, the solutions to challenges like these don’t reside only in the executive suite. Solving them requires the involvement of people throughout your organization accessed by leveraging employees’ collective intelligence and capability. This can be done through strength in relationships.

The year 2020 has been full of obstacles, tragedies and challenges. As we go through these unprecedented times, we find our resilience, our connections and our relationships are the best things we have. I think about medical workers, doctors, nurses and care givers who have been helping humanity face the emerging health concerns in the last several months. What they are doing is caring for their fellow human beings at their moment of greatest vulnerability. To me, it’s powerful and inspiring.

This is the time we need more relationship-centered groups of people, be it families, teams, or organizations. Take a moment and think about the best work relationships you ever had. Picture that person or team in your mind. Think about what you accomplished together, the fun you had, and the creative sharing and mutual growth. Now, imagine the same kind of relationship existed between you and everyone in your immediate team, your partners and peers. What could you accomplish?  Nothing will stop you to evolve culture, build partnerships, drive value; satisfy purpose. This is the purpose of BRM.

Take a look at the full-length recording of Glenn’s keynote presentation given during BRMConnect Virtual 2020.

Learning “Future IT” from Digital Natives

Digital transformation offers IT organizations the unique opportunity to create value by becoming digital change agents for the enterprise.

Early in my career as a young technology professional, I asked why our IT organization often changed. It changed more frequently than other functions within the company. Every other year, new methods emerged and new ways of working. Business requirements of technology capabilities evolved as well as capabilities of newer technologies that impact every aspect of the business. And of course, the usual pendulum swing between centralizing and decentralizing management and control of IT, then to shared services and then to outsourcing. Change is still the norm today, only the rate of change is accelerating and intensifying. Exploration of disruptive business models driven by digital capabilities will no longer be the exclusive domain of digital natives but will become the aspiration of traditional companies as well.  As a response to unrelenting forces of disruption, many companies are embarking on this journey. A company’s long-term survival in this new reality relies on digital excellence as the new norm.

What is your business’ toughest challenge? Shifting markets? Stiffening competition? Combined pressure from digital savvy and restless customers? When such challenges intensify, you may need to redesign strategies, reimagine other business possibilities, models, go-to market tactics and outcomes. In recent years, we have seen the effect of Amazon on retail giants like Walmart. In recent months, we have seen healthcare companies like CVS and Aetna looking to merge in order to redefine themselves and combine their capabilities to become stronger. Healthcare companies like CVS and Aetna know that Amazon already has many of the core competencies needed to compete in healthcare, including ready access to capital, a massive distribution infrastructure, a strong technology base, a robust data analytics capability, and a deep, talented executive bench. Companies respond by transforming themselves to abate competition from digital native companies like Amazon. In the future, the question will not be how we transform to become digital natives, as this will be the norm even for traditional companies. How to get there and survive is the tough challenge of today.

Digital transformation offers IT organizations the unique opportunity to create value by becoming digital change agents for the enterprise. But first, we must learn from digital native companies about how to reshape the way our companies manage and exploit technology. What does it take to transform to be the next digital leader in your space? Apart from understanding where you are today, it is also advantageous to investigate blueprints of success. The IT leadership team in my current organization did just that when our CTO Ricardo Bartra took us to Silicon Valley and San Francisco last month to visit Facebook, Google, CISCO Meraki and Salesforce.

  • At Facebook, we saw how the digital native culture looks like in a campus setting supported and enabled by its facilities, people, and ways of working. When Facebook CEO and cofounder Mark Zuckerberg filed for the company’s initial public offering in 2012, he wrote that one of the sayings he and his employees live by is, “The riskiest thing is to take no risks.” “We encourage everyone to make bold decisions, even if that means being wrong some of the time,” he wrote.
  • At Google, we saw that the challenge is not that technology evolves faster but how visionary companies like them understand and capitalize on them by innovating early and often and converting them into a competitive advantage. I saw their pursuit for bleeding edge technology and always looking for what is next. Google strives for continual innovation, not instant perfection. The presenter told us the story of how GMAIL came to be, from a series of prototypes to a subsequent release of a beta version that quickly took off.
  • Walking around the halls of Meraki’s office, you’d be hard-pressed to guess you’re on a Cisco campus. It still feels like a start-up! At Meraki, we saw how employee experience is increasingly dependent on technology. How DevOps teams and engineers can quickly spin off capabilities to support employee experience by enabling applications eliminating the need to buy.
  • At Salesforce, we saw what agile transformation looks like driven by top management. How salesforce has managed its organization transformation focused on agile culture and ways of working, transforming organizations to empowered teams with clear missions. They provided an environment where their employees become more comfortable and develop expertise in navigating fluid structures made up of teams formed from diverse skills and experiences.

IT functions have historically been built based on the context of specific expertise, IT standards (ITIL), Operating Models and proven BPM and BRM approaches. I spent my first 15 years as an IT professional with a global building materials company and understood how to leverage the power of technology. I learned to recognize the importance of process methods and goals in ensuring harmony between processes and technology platforms, speeding up solution deployments, and enabling continuous improvement and innovation; to understand the impact of IT processes in integrating a large acquisition; and to recommend an appropriate model for integrating an acquisition. Much of what I learned from my first 15 years still applies and I believe will apply to the next 15 years. But I also realize that I need to evolve and be “bi-modal”, embracing digitization and agile thinking. This is my focus today and I am happy that this is also the journey my current IT organization is undertaking. I want to be an IT leader that will be adaptive and dynamic in pulling together capacity and competency from a broader range of sources—traditional and future capabilities such as AI, robots, IoT, cloud, blockchain and alike.

Digital Transformation

Past, Present and Inevitable Future of the Internet

We have “known” for decades that telephones would eventually become portable, wireless and small enough to carry around just like a wallet. Do you recall the Communicator device in Star Trek? It resembles the current flip mobile phones. They were used for voice communication connecting individuals between Star Ships. Dr. Martin Cooper, inventor of the modern mobile phone, credits the TOS communicator as being his inspiration for the technology. Although the first “brick” mobile phones were much larger, modern flip phones strongly resemble the original series communicator. 

Early on… 

For me, the development of mobile phone technology is kind of the same thing as the development of the Internet. Our generation has been fortunate to witness its exponential advancement. I remember the first time I used the Internet in the early 1990s. It was through the old Vax mainframe computers at the De La Salle University in Manila and later on, with the more user-friendly Netscape browser in Personal Computers (PCs). Computers at that time were exclusively housed in laboratories where they kept the temperature low to protect the equipment. Despite the tropical heat of the Philippines, we would wear sweaters if we planned to stay longer in the lab to survive the low temperature. I remember the web pages were simple, text-based, had limited contents and features. We were glad to just send emails and read static content that we found online. De La Salle University was one of the first Philippine schools to be connected to the Internet. By the time I graduated in 1997, the Internet had already gone through a series of major developments. 

Advancements today… 

Today, we are in the midst of continuing development of the web fueled by advancements in the Internet and technology. The most notable application is “Social Media” which led to the  inevitable creation of a vast content and knowledge base. There is an abundance of information and the size of social interaction has reached a colossal scale. We are in the age were ordinary people break the news. Just recently, CNN reported that “some of the first public accounts of the military operation that killed the terrorist leader (Osama bin Laden) came in the form of tweets from Sohaib Athar, an IT consultant in Abbottabad — the city where bin Laden was found.” This breaking news spread fast and made ecstatic fans at a game in Philadelphia hold up their mobile phones to show the news of Bin Laden’s death as they received messages from friends. Later on, President Obama announced the news to the world on mainstream TV. This shows that within a span of just one generation, the availability of information, capabilities to create and share, and our access to them has changed dramatically. 

Family interaction platform… 

It was not until a couple of years ago that my parents in the Philippines have started using the Internet, or a computer for that matter. I was determined to help them catch up with new trends and I knew introducing them to the use of computers and the Internet was something that could create value for them, personally and as well as in their retail business. On the other hand, my hidden agenda was to utilize another communication channel with my family that is effective and cheaper as compared to international calls. The last time that I visited home was December 2009 and one of my objectives then was to convince my father to invest in a laptop. To sweeten the deal, I would pay half of the cost and would stay a little longer so I could teach them how to use it. Teach them I did, starting with the basics of switching the computer on and off, use of the keyboard (comparing it with typewriters used during my parents’ time). Soon, we ventured off to the more fun stuff– the Internet. The first thing that we accomplished was to create an email account, then Windows Live for chat, Skype for video conferencing and then Facebook for social networking. Eventually, we ventured into Excel so that my father can use it to upgrade their process of recording daily sales (he usually just used paper notepads!). After I returned to the United States, in less than two months, they were adept in using their new-found tool. My parents processed their US visa application online, bought plane tickets (even helped friends buy tickets online) and they were also everywhere in social media. I could chat with them, video call using Skype with them, and send them blogs that I have written. A month ago, I was even able to share with them photos and videos of when my twins were born through Youtube and Facebook. The social media and the web have become our platform for family interaction. 

Inevitable Future and Questions… 

The Internet has enabled humans to develop new technologies and social structure that allow us to participate in content creation and dissemination (such as blogs and social networking sites). The advancement and innovation that has catapulted the Internet to ubiquity also reveal enormous use in business. Nowadays, users participate in solutions building through collaborative platforms. Internet has developed social structures that allow interaction without boundaries– thus making our small world even smaller. 

In 10 years, humans and computers will join forces to create “collective intelligence”. Technology will evolve as such that the Internet (and information within it) will be accessible and available to everyone— this will exponentially increase the already massive data we exchange today. How we (and machines) will make sense of as well as analyze and synthesize this collective information, is what will bring us to Web 3.0 and beyond. 

In closing, I leave you with some questions:

  • How do you see the Internet impacting the world, business and human interaction in 10 years?
  • Does the Internet in its generative form need new kinds of control to avoid problems in society and loss of opportunity?
  • Are we looking at a prospect of a better world for our children with seemingly exponential cycle of innovation and growth of the Internet?

Photos courtesy of jscreationzs and Idea go.

Follow Glenn Remoreras on Twitter.

Understanding IT’s Value in Organizational Transformation

Do you spend a significant amount of time measuring performance and looking for ways to improve your service? When you delve into that process of evaluating your effectiveness and efficiency of service, you are, in fact, evaluating your value. Typically, big companies invest one percent to four percent of revenue in IT. This investment is usually spent on integrated digitized platform implementations, continuous innovations, and day-to-day IT operations. Businesses must see the value and return of these investments; otherwise, they won’t put their money in it. What are businesses doing with all that hardware and software IT is providing?

Andrew McAfee is a principal research scientist at the Center for Digital Business in the MIT Sloan School of Management. In one of his articles for the Harvard Business Review entitled IT’s Three Key Organizational Transformations, he outlined what he thinks are main organizational transformations that IT provides the businesses. He wrote that companies in all industries are using Information Technology to accomplish three broad and deep transformations: they’re becoming more scientific, more orchestrated, and more self-organizing.

Run Scientific Methods 

Andrew McAfee mentioned the need for making the company more scientific. He meant that companies are able to use advanced scientific methods using new technology. “Computers, of course, are amazing tools for science” he wrote, “they can gather huge amounts of data, conduct sophisticated analyses of it in the blink of an eye, run elaborate simulations, and serve as experimental testbeds.”

I attended the most recent SAPPHIRE conference hosted by the German software giant SAP in Orlando, Florida. SAP presented its newest innovation on In-Memory computing. Co-founder of SAP, Hasso Plattner, declared that by using In-Memory Computing technology, companies can now store data of the whole enterprise in memory. This technology will increase the computing and processing speed of enterprise applications and will give rise to next generation business analytics. You can just imagine the type of scientific analysis companies can run with such high speed databases.

Orchestrating End-to-End Business Processes 

In this article, McAfee defined orchestration as designing how work will be done, and then assuring that it is actually executed as designed. Once re-engineered processes gets embedded in ERP and other enterprise systems it becomes much easier to ensure compliance. He gave an example to illustrate his point saying that applications like— CRM, sales force automation, supply chain management, procurement, and so on have brought tight orchestration to every part of the company, and pushed it down to almost microscopic levels.

One of IT’s major roles in most big firms is to implement and run digitized platforms. It is usually anchored on a major piece of purchased enterprise resource planning software- such as SAP and Oracle. Software companies are moving quickly on innovating applications to keep up with business demands. The unforgiving global economy brokers no excuse. Business expects IT to provide solutions that help them to stay competitive and in position for growth.

Enable Self-Organization 

“Self-organization, the most recent IT-fueled transformation”, McAfee wrote, “is the exact opposite of orchestration. It is employing technology to let people interact as they wish, with few or no workflows, rules, or hierarchy, and then harvesting the good results that emerge.” The paradigm of self organization has exploded in this part of the decade. In some ways, it started outside the confines of enterprises. There are over a billion users of social media sites on the Internet. Between Facebook and Twitter alone there are more than to 500 million unique user accounts. Companies, with the help of IT organization, have stepped up to leverage these new social tools to enable self organization teams in the business with the objective of encouraging more collaboration, information sharing and innovation.

How does your IT contribute to these key organizational transformations in your company? Does the business you serve view you as a value creator and partner? What’s your value proposition?

Web 2.0 + Application in Business = Enterprise 2.0

People as the platformIn the world of Information Technology, many buzz words and phrases are created everyday. It’s hard to keep up. It’s not only because too many of these words are thrown at us everyday but also because their definitions often change rapidly. One of these phrases is Web 2.0 – which I talked about in my previous article.  Now, let me throw you another one of those technology buzz words – Enterprise 2.0. 

The term Enterprise 2.0 was coined in the spring of 2006 by Andrew McAfee. As an Associate Professor of Harvard Business School, he studies the ways that IT affects businesses. His research efforts are focused on investigating how IT changes the way companies perform, organize themselves and compete. Andrew McAfee defines Enterprise 2.0 as the use of emergent social software platforms within companies, or between companies and their partners or customers. It is quite simply the application of many of the Web 2.0 ideas to the enterprise.

AIIM, a non-profit organization that provides education and research, takes this further. According to AIIM, Enterprise 2.0 is a system of web-based technologies that provide rapid and agile collaboration, information sharing, emergence and integration capabilities in the extended enterprise. 

Enterprise 2.0 Adoption 

Until now, many firms have yet to recognize the potential advantages Web 2.0 could bring to the business. Traditional command and control management is directly opposed to the distributed and collaborative style advocated in Enterprise 2.0 and there are always a set of rules that discourage change. For this reason, adoption of Enterprise 2.0 tools is happening from the bottom up. Enterprise 2.0 is being brought up gradually by ordinary users. It is uncommon to see adoptions and initiatives – such as establishing a corporate-wide blog or wiki – spearheaded by top management. More often, blogs are started by individuals and small groups in one department as an independent initiative. In some cases, these blogs, social media sites and microblogs succeed and evolve as key components of the corporate internal and external communications arsenal. 

Few companies right now are pioneering the use of Web 2.0 platform. One of then them is Sun Microsystems. Sun uses Open Source and Enterprise Social Software to build a YouTube-style portal for social learning. They have implemented a learning environment called Sun Learning Exchange (SLX) to provide training programs to employees and contractors in more than 50 countries. The entire solution was built for $60,000. One week after launch, there were more than 3000 unique visitors and hundreds of unique content were uploaded. The viral rollout strategy proved to be a success and allowed Sun to create more value with less investment in training. 

UniversalIn my article last month, I talked about how Universal Studios used Web 2.0 platform to announce the opening of the Wizarding World of Harry Potter project. They invited seven avid Harry Potter fans to a top secret webcast and informed them about the plans for the new theme park. By word of mouth, these seven people told thousands through emails, internet forums and blogs. Eventually, mainstream media picked up the buzz and wrote about it in magazines, news, and TV reports. In a few days, the news reached millions of people. Universal was able to reach its global audience by first reaching out to a select group of fans through the Internet. They were able to save thousands and perhaps millions in advertising costs. 

Enterprise 2.0 Challenges 

It is understandable that in spite of the current momentum, Enterprise 2.0 is experiencing strong resistance from business managers. I think the challenge is two-pronged: cultural and structural. There will always be cultural challenges when you are trying to make people work, collaborate and organize in a different way. Companies are so used to the traditional management and coordination style that it’s hard to imagine a quick transition. On the other hand, the Enterprise 2.0 model and its supporting structure also need to strengthen. Experts argue that it’s hard to implement something that has no commonly accepted business model and runs in an immature services landscape. Application management, support, security, ownership and identity are also common challenges being confronted by early implementers. 

To be continued… 

We already discussed about Web 2.0 and Enterprise 2.0 in two separate articles. We’ve laid out the groundwork. In my next post, we will further explore these topics and talk about how to incorporate cutting-edge Web 2.0 services within the enterprise networks, create internal social networks, blogs, wikis and manage Enterprise 2.0 security and compliance.

“New Internet Version” is All About Participation

Just by reading this article in this weblog, you become an official user of Web 2.0.  If you have a Facebook account, keep track of 200 or more friends, tweet at least once a day, have a professional LinkedIn account and rely on Wikipedia for the definition of things – you are an active user of Web 2.0. Congratulations! You are officially part of “generation Web 2.0 plus”! It might surprise you to know that although you might be hearing about Web 2.0 for the first time, you have actually been active users of it for quite some time.   

Comparing Web 1.0 vs Web 2.0

I think the best way to explain what Web 2.0 is to compare it to Web 1.0 which is its earlier version. Web 1.0 is a general reference to the World Wide Web before the developments of advance internet collaborative applications. This was during the period when the internet was dominated by companies who maintained heavy and static sites for promotion and marketing. At that time, it was difficult to maintain personal websites. Many attributed the dot-com-bubble in 2001 as the turning point of the internet. 

Web 1.0 and Web 2.0Basically, what happened was a change in paradigm. This was due to two main factors: people and technology. With people, I refer to us.  Yes — you and me. We who make up the critical mass of internet users who use the internet as a platform for simple, light-weight services that leverage interactions for communication and collaboration. Additionally, advancement in technology enabled these platforms, network and services. The attached illustration contrasts the differences between Web 1.0 and Web 2.0. Look at the boxes closely and try to imagine how the internet has evolved from the time you started going online until now.

Web 2.0 is the portion of the Internet that is being developed continuously and interactively by participating Internet users. It is commonly associated with web development and web design that facilitates interactive information sharing, interoperability, user-centered design. Web 2.0 is a catch-all term used to illustrate a variety of developments on the web and a perceived shift in the way the web is utilized. This has been characterized as the evolution of web use from passive consumption of content to more active participation, creation and sharing – to what is sometimes called the read/write web. 

Example of Web 2.0 Tools

Web 2.0 is a platform that enables the user to comment, tag, modify, improve and rank. The most well-known examples of this technology are found in sites like YouTube, Amazon, and Google where user ratings make it easier for other users to find what they are looking for. Social media tools like Facebook and Blogs allow users to write stories and stay connected with friends. Twitter opened up the world of sharing short thoughts. And Wikipedia is powered by users who provide and keep content up-to-date and accurate. 

Personally, I am particularly attracted to the aspects of communication and free online expression of ideas. That’s the reason why I invest time writing articles. A few years ago, it would have been extremely difficult for me to find a medium to express my ideas.  Web 2.0 tools have reduced barriers to the publication and distribution of information. 

In its most basic form, Web 2.0 is about participation. It is about communication and collaboration. It has indeed change the way of life of this generation and it is still evolving! 

Enterprise 2.0 – A Peek into my next Post 

Many of the Web 2.0 platforms began as customer-facing sites designed for marketing and communications until people looked for ways to apply these ideas to the enterprise. You might have noticed already that blogs, social media and microblogs have evolved as key components of the corporate internal and external communications arsenal. This use of the Web 2.0 paradigm and technologies in business is now widely known as Enterprise 2.0. On my succeeding posts, I will elaborate on this further and provide business practical applications of Enterprise 2.0.

Incremental Change vs. Radical Improvement

Building an engine that generates a steady stream of innovations in processes, technology and product development is difficult, but companies that are able to do it, differentiate themselves from competitors. Innovation groups (other companies call it evolution committees or R&D groups) should focus their energy on: 

  • Incremental Improvements (streamlining, optimization, reengineering, cost reduction, reliability) 
  • Radical Periodic Improvement (New platform, new methods, new strategy, new philosophy, Enterprise 2.0, leap to Process Culture, etc)   

Examples of two companies who have mastered innovation are Toyota and Google. Both are leaders in their respective industries. Toyota’s success is tied up to its well-known business model– the Toyota Way that has been duplicated by other companies in different industries. The Toyota business model has been so successful that the company has relied on it for decades now to run its global business successfully. Toyota, for a long time, has a strong process culture and its continuous dominance is driven by its focus on incremental process improvement that is tied up to its quality operations and production management. 

Google, on the other hand, grew rapidly because of the radical rules they initiated that redefined the use of the Internet. Roberto Verganti in his book Design-Driven innovation compares this radical change to having a vision, and taking that vision to the heart of the customers.   In the case of Google, this means the Web users. Think about it.  This company has overturned our understanding of the use of information and networking. Jeff Jarvis in his book What Would Goggle Do?, talked about Google differentiating itself from the likes of Yahoo and AOL. Unlike the previous search giants, Google is not a portal; it is a network of platforms. Google, in a way, empowered the users of the internet, changed media and redefined the advertising rules. We as users have not asked for these new necessities, but when we experienced them, it was love at first sight. 

Radical vs Incremental Change

It’s hard to imagine how already huge companies such as Toyota and Google can continue to improve and sustain growth well into the future. They have perfected the fuel that keep them competitive and well ahead of everyone else. They rely on the combination of continuous incremental changes and periodic radical innovations. I think it is mandatory for companies who aim for sustainable growth and continued primary industry position in the future to push for visionary innovation. There is no single scheme to follow. It is a transversal process that depends on combining industry experience and strong innovation methodologies that create new ideas, new technologies, new products and new processes. 

Design-Driven Innovation- Book Recommendation 

Last weekend, I came across a book entitled “Design Driven Innovation: Changing the Rules of Competition by Radically Innovating What Things Mean”.  This recently-published book is written by Roberto Verganti — a professor of Management of Innovation at Politecnico di Milano. He is the founder of PROject Science, a consulting institute that provides consulting services on management strategic innovation. 

Design-Driven InnovationThe book caught my attention initially because of its title. I have a close affinity for design initiatives, having moved early last year across the Pacific from Asia to the company headquarters to join a Global Design Team. I have always believed that innovation from a well-thought out design initiative can radically improve a company and change the rules of competition in its industry — be it product innovation, organizational, technological, process and company philosophy. 

From the front flap of his book, Professor Verganti presented his vision of a bold new way of competing. He wrote, “Until now, innovation studies have focused either on radical innovation or incremental innovation pulled by the market.” He explains that “…design-driven innovations do not come from new markets; they create new markets. They don’t push new technologies; they push radically new meanings.” His book talked about innovative products like Swatch in the 80s and as well as Nintendo’s Wii and Apple’s iPod – both of which are currently dominating their respective markets.   In the fourth chapter of his book, Professor Verganti provided a comparison between the innovation strategies of Nintendo, Sony and Microsoft in the US$30 billion game console industry. Nintendo, after dominating the game market in the 80s, was experiencing a downturn, until they released their revolutionary Nintendo Wii. Meanwhile, Microsoft and Sony were focused on incremental improvements on their Xbox and Playstation products through better speed and graphics.  Nintendo, on the other hand, introduced the radical idea of using game consoles as an active physical entertaining medium. It generated new meaning to game consoles and appealed to different consumers worldwide. 

I think managers who are interested in innovation should get a hold of this book. This can be used as essential reference for all those interested in design and determined to make innovation the driving factor in their business and profession. In my case, the reason I bought this book is because I am interested in Processes and IT innovations. I believe this book will definitely provide me insights on methodologies that can drive process innovation initiatives. It is something that I want to write about and explore.

Book Cover Image Courtesy of Harvard Business Press.