Design Simple, Part 1: Enterprise 2.0

A question I am constantly being asked by up and coming tech entrepreneurs: "How can we better leverage the web, and new web2.0 models to spark growth or create a new market segment or revenue channel altogether?" But now I being asked the same questions by serial entrepreneurs and seasoned fortune 1000 executives alike. The answer is not the same for all scenarios, but indeed there are some battle-tested rules that everyone should know. In a multi-part blog series, I will be addressing various aspects of this new era and the dilemmas that most companies, old and new, will come to face at some point in the not too distant future.

In my mind, this question can not be answered unless you've built online businesses in both web worlds, Web 1.0 and Web 2.0. I've sat on countless panel discussions and debated with a wide variety of journalists, analysts, bloggers, and 'pundits' whom all have their own 'unique' spin on the subject. Sideline referee versus quarterback perspective, I suppose. Mostly what you hear from this crowd are catch phrases like: the long tail, viral marketing, scalability, network effects, social mediums, participation age, the list goes on and on. Judging by the ever expanding definition for Web 2.0 at Wikipedia, it's no wonder that many joining the fray quickly become shrouded in the vagueness of their own Web 2.0 execution.

As you might expect, Tim O'Reilly presents a reasonably sound analysis of the web2.0 conceptual framework, and the new 'levers' that can influence the adoption of a web business, product, or service. A good primer to get you oriented before attempting the recommendations that follow. Bear in mind that there is a big difference between the conceptualization of web2 strategies and real world execution and producing tangible, measurable results. Don't be fooled into thinking there are shortcuts and quick hits by simply regurgitating what you've read online. The list here is by no means complete how-to, rather, it is dialed in to address the most common problems with executing the vision.

1. Get focused. Converge on single idea. Don't zoom out. Resist the temptation to lump 10 separate features, 5 unique value propositions, or even just 2 different products into something you defend as your sole mission.

2. Repeat step #1

3. Repeat step #2, this time have a colleague or customer test your focus for clarity.

Let the value proposition sell itself. Too often people equate Web 2.0 with Hype 2.0. A marketing blitz will only dilute the DNA of the product's key value to reach the user in a meaningful, sustainable way. You need to get the product right out in front of the audience. If you cannot articulate or demonstrate the core value proposition with one picture, or one sentence, all subsequent strategies to leverage the Web effect will be ineffective. I see this all the time with the companies I am advising today. Great products, great teams, great ideas, but all of the value creation gets buried behind logins, passwords, downloads, and other forms of "friction in the adoption curve", as I have coined it. This friction does nothing but keep the best assets and value from being discovered and adopted in market place. It's sort of like self-inflicted wounds that never heal quite right.

This is most prevalent with enterprise companies trying to become enterprise 2.0 companies overnight. I've watch Cisco try it, Sun try it, and hoards of other companies large and small. Each with varying (read: minimal) degrees of success thus far. And without some serious reprogramming, none will truly garner the uptake of the web2.0 pro's like Jot, (which at the moment is off line for new customers because of the recent acquisition).

What constitutes a good example? First, it is the company whose product or service is the website itself, and vice versa. Think about that for a moment. Second, the Web must be an integral part of the value proposition, and an integral growth driver. More on this topic in part 2 of the series to follow.

What constitutes a weak example? Brochureware is not 2.0. Demoware is not 2.0. Screenshots, Flash movies, and 30-day trials are so not 2.0.

The challenges most companies face with embracing the Web and '2.0' as a new market for growth can be complex and subtle. Conventional sales and marketing techniques only create surface-level awareness. They don't spark adoption and they don't promote viral uptake. Only an immediately recognizable value proposition and a legitimate social incentive will put 2.0 in motion. Instant gratification is vital. Without it, it's only a matter of time before you're back to the drawing board.

Enterprise companies today have tremendous potential for growth in a 2.0 world because of the vast asset bases they are sitting on. Unlocking new potential and new markets for these assets can conceivable give them a tremendous unfair advantage. Though it is indeed an art and a science to getting it right; and producing tangible, scalable results doesn't come easy. What's more, the process can easily backfire without a qualified team in place to execute. Brands, credibility, and market share can easily be swept away with ill-fated attempts to join the "in" crowd on whim. Same can be said for start-ups. Though the assets are not necessarily vast, they are potent, high-value, fresh concepts that risk becoming the greatest technical innovation that never took off. 2.0 is a powerful concept that when used responsibility, can make reaching critical mass, a closer reality. More to come. Stay tuned.

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