From services management to enterprise 2.0

Summary : the shift from the old manufacturing model to a service one is key to the future competitiveness of lots of industries. Rather than adding a layer of service at the point of contact with customers, it’s about reinventing businesses, value propositions and the way it’s executed. It’s easy to understand that the paradigm shift needed for this revolution is very similar to the one needed for enterprise 2.0. And is surely more understandable for lots of organizations.

 

A couple of weeks ago I discovered and read with a lot of interest Du management au marketing des services : Améliorer la relation client – Développer une véritable culture de services (in english from services management to services marketing – Improving customer relationship – Developing a culture of services) by Benoit Meyronin and Charles Ditandy. You may wonder what is the link with the topics I usually discuss on this blog. In fact it’s quite about the same thing but seen from a different point of view. It’s even possible to consider that the ignorance or misunderstanding of some issues related to services management is a real barrier to enterprise transformation, to the paradigm shift that is needed to rethink old manufacturing models and turn them into a services model and prevents from drawing all the organizational consequences.

As am matter of fact, as the book says, the key question est about implementing a culture of service within organizations. Let’s start with a quick aside. There are many ways to define a culture of service. A first one applies to people in their day to day actions and behaviors, most of all when facing customers. The second one is more global. It’s about execution but, also, the way things are seen, thought and designed. The first can come without the seconde but is only to dazzle customers. It makes employees embody a system, a policy that as no structural and operational reality in organization that don’t question themselves. It prevents value creation through services. Pratically speaking, when organization add a service layer on an old industrial/manufacturing model without trying to reinvent the whole, it’s like putting some polish on the customer interface. It has no impact no the delivered value and even less on the perceived value. In such a context, services are a cost that is easy to cut instead of being a value lever.

In short, adding a service layer to a system designed with an industrial/manufacturing approch costs money while rethinking the model as a service one makes organizations make more money. Examples are numeros in our day to day lives. I’ll spare you my usual and favorite digression on the airline industry (which really need to understand this !) but the book is full of examples from many industries (hotel, transportation, car parking…).

Take a minute to think of what “selling mobility” vs “selling cars” means for a car manufacturer. If the old car selling model survives, the “mobility” option costs a lot because it’s layer added on the system. If mobility becomes core, it’s differentiating and helps to create more value. That’s the path that’s followed by lots of car manufacturers. In B2B industries, tire manufacturers have stopped selling tires to airlines for years : they now sell a number of landings and take-offs.

In the end, here are a couple of examples of what a service culture means, taken from the book. [Read more...]

Are we sure people prefer openness rather than constraints ?

One of these last years most important trend that is lasting enought to be more than a fashion, is the switch from a closed and constrained world to an open and flexible one.

- from proprietary and closes information systems to open ones

- from a communication model where those who can speak and those who must listen are defined in advance.

- from a rigid and structured working model to an adhoc one

- from a top down management model based on command and control to a model that’s rather based on support and facilitation.

According to many specialists these are major aspirations that are the consequence a of societal change. 40 years after “prohibiting was prohibited”, now imposing is prohibited.

There are two reasons to switch from one mode to the other. The first is nearly philosophic and political, the other is more rational and has to do with the limits and advantages of each model in today’s economy. But businesses are more likely to prefer the old one and they don’t care at all about the philosophical discourse and, most of all, in retrospect, assumption according to which employees are expecting such a change in the workplace can be questioned. Are we actually facing new aspirations or only choices made by default ?

Whoever has already experimented this kind of switch in the workplace has to admit it’s much more difficult than expected and that either the expectations were overestimated or employees are afraid to turn what they ask for into action. Managers are afraid to lose control, employees fear their new autonomy.

If employees ask for flexibility and autonomy, they also want structure and sense, a guiding principle to rely on. In short, if they want more freedom on the “how”, they want to be reassured about “what”, “what for” and “when”. Business processes were in many discussions at the Enterprise 2.0 Conference, and these two topics are very close :it‘s the articulation of the informal layer with structured activities that leads sense and alignment.

Isn’t it paradoxical that to get rid of one constraint people need to grab hold of it ? No if we take a different standpoint. Do people, internauts, employees look from freedom and openness or are they looking for the reassuring comfort of systems and methods that give them few autonomy ?

In restrospect, if we put integrists of all kind aside, those who hate constraints and authority and those for refuse to take any responsability, what’s left ? Average people don’t care about this debate, they’re not looking for either openness or constraints, they only want things that work.

- open information systems because they’re fed up being locked in systems that does not work and don’t provide them with the information they need

- open work models because the rigid ones prevent them for achieving their objectives.

People do not challenge closed and constrained approaches when they work, reassure them and lead to the expected results. The question comes when these models do not work anymore.

We seldom mention that but their are rigid models that work and employees do not question them because the can do their work without having to accomplish miracles everyday.

Autonomy and freedom in the workspace seem to be less a quest than stopgap solutions to what does not work. At end end it’s quite the same but not totally.

In the workplace, some things have to be known before trying to implement any open system ;

- people won’t buy it it it does not replace / complement, a closed system that does not work. If the actuel system works, support will be poor.

- people need a framework, guiding principles, even when it’s about autonomy. When can they take intiatives, to what extent, when to switch back to the “nomal” system. There’s a need for a system of graduated constraints instead of the manichean “process vs no control”.

“Open” is not an expectation in itself but the solution to a problem. So don’t forget to tell what problem and explain the relationship between the problem and the solution to make people adopt it.

At the end this is a paradoxical situation : employees reject rigid systems that does not work and worry when the new systems are not rigid enough.

Survey on the use of IT in french companies

Two weeks ago I was invited by Microsoft to attend the presentation of a survey on the use of IT in fench companies. Two things made it really interesting

• Although the fact new generations were transforming the use of IT, there was no global study to quantify and qualify it.

• The methodology was neutral and exhaustive : they started with general considerations and focused step by step to get to business cases. So the survey provides sociological elements, that were qualified, assessed, turned into busines practices etc… Each step was managed by a specialized partner (Eranos, Added Value, Ifop andt BearingPoint ).

Let’s see what’s in.

[Read more...]

CIOs don’t care about web 2.0 ? Neither illogical nor grave

A recent Robert Helf survey tells us CTOs seem not to consider web 2.0 as a priority in their projects. I don’t find this worrying because it’s logical due to the very nature of those tools.

It’s now an established fact that the “web 2.0 question” is very present at companies’ heads. In terms of tools but also in terms of organization. Il aslo remind you the McKinsey-Cigref survey about IT depts role in value creation which have been also available in english for a few weeks. What conclusion can we draw from all that ?

• IT depts role is to keep the existing systems running, make the too, maintain a high level of availability and security, so its logical they focus on thses points.

• The use of web 2.0 tools is the consequence of the will of working differently and develop new practices and behaviors. This choice and the success of such projets is linked up to the existence of a project in terms of working mode. So it’s rather up to operative people to identify their own issues, build the adequate working mode and then look for the suitable tools.

• So that’s not IT depts but operative people, managers, who have to have projects in this aerea. Once this done, IT depts role will be to check if the tools meet their requirements in terms of security / reliablity etc. Because what the survey sais (sorry for the enticing title of this post) is that CTOs don’t have projects, which is not about value, relevance or tool’s ability to do what they’re make for.

Web 2.0 tools’ characeristics being not to do things by themselves but make it easy for people to do things together, their human and social dimension make them closer to management and HR projects than infrastructure projects.

• Que si le rôle d’une DSI est de maintenir l’existant, garantir une disponibilité optimale des outils et de l’infrastructure et que logiquement toute son attention est focalisée sur ces points.

• Que l’utilisation d’outils de type web 2.0 est la conséquence de la volonté de travailler quelque peu différemment, de développer de nouvelles pratiques. Ce choix, ainsi que la réussite de tels projets est intimement liée à l’existence d’un besoin et d’un projet en termes de mode de travail. C’est davantage le rôle des opérationnels que d’identifier leurs propres enjeux, construire le monde de fonctionnement qui permet d’y répondre et ensuite se mettre en quête des outils adéquats.

• Dès lors c’est à ces derniers que revient d’avoir des projets en la matière. A la DSI ensuite de valider si l’outil correspond à leurs critères en termes de sécurité / robustesse etc… Car ce que dit l’étude (désolé pour mon titre un peu aguicheur) c’est que les DSI n’ont pas de projets, ce qui n’est en aucun cas un jugement de valeur ou opinion sur la capacité des outils en question de faire ce pour quoi ils sont faits.

La caractéristique des outils en question n’étant pas de “faire” mais de permettre aux individus de faire, leur dimension sociale et humaine les rapprochent davantage des projets managériaux que des projets d’infrastructure.

Information flows needs a plumber


Web 2.0 Expo Europe 2008

Information overload has thress main causes : the first is information dispersal among too many tools which force people to continuously switch from one to another in order to be sure not miss anything, the second is the fact people are affected by the information flow that fall on them as is they were at the bottom of the waterfall, forcing them to continuously sort and establish priorities without forgotting the time needed to refocus after interuptions, the third is the gap between the information people receive according to what others want them to known and the information people really need and spend a lot of time to find.

Sometimes I dream of seing within companies what we have on the net : millions of information sources which contents go “on the cloud” through RSSS feeds and APIs and are gathered in a sort of “common base” from which, according to searchs on people, tags, plain text…I extract feeds that really interest me in order to read them in an unique tools, according to my priorities, to the time at my disposal, mastering what I read instead of being bombarded with messages.

To illustrate this point I often the comparison between being under a waterfall and having a shower with multiple jets massaging me. Instead of experiencing the violence of an unique and uncontroled flow, I set every jet direction and power and comfort replaces pain.

It implies companies open their eyes, think about the notion of information flow (vs stock), governance and think in terms of marketplaces and personal information supply chain rather than in termes of massive and inefficiant spraying.

For those who are interested in that and would like to get more on these issues, I advise to have a look at Stowe Boy’s keynote at the next Web 2.0 expo, “Better Media Plumbing for the Social Web” in order to become more familiar with these new logics and issues and begin to wonder about new ways to live out information and transform the way people will exchange and interact in the upcoming years.

It’s not conceivable that two worlds will co-exist : the general public’s and the enterprise’s (which is made of the same people), with two radically different conceptions of information flows, separated by a will. And it’s not conceivable either that those who live in one side of the wall forget in a second what they are and the way they behave when they are at home, on the other side of the wall.

Otherwise, if you wish to attend the Web 2.0 expo, you can get a discount code here.