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The Rise of CRM 2.0 and Enterprise 2.0

Whether social media culture and tools are more hype than substance is a matter of arguable debate. However, there should be no debate that Web 2.0 has cascaded into CRM 2.0 and Enterprise 2.0 and will continue to have a growing effect on both the customer relationship management software market and the enterprise resource planning software market. This last year has provided several tell tale signs which can be extrapolated (with some reasonable logic and some guess work) to give us a glimpse of social media's future within the CRM and ERP industries.

CRM 2.0 has been defined. Actually its was defined quite some time ago however only in the recent past have I witnessed more of a consensus definition. I'm also now seeing a widely accepted definition for Enterprise 2.0. Near universally accepted industry definitions provide a basis for customers attempting to educate themselves (before software vendors attempt to skew the definitions) and demonstrate a growing level of maturity.

crm 2.0

Social media tools of questionable business value and business models are beginning to demonstrate answers. For me, Twitter has to be a prime example of a Web 2.0 tool which offers an answer however is in search of a problem. Twitter is a message service (sometimes called a micro-blog) for contacts to communicate through the distribution of quick, often frequent, posts. The most common message seems to answer the question of "what are you doing right now?". While early skeptics suggested Twitter had no redeeming business value - and Twitter itself has yet to identify a viable long term business model, companies such as Dell have shown how they made over $1 million by posting sales alerts (tweets) during 2008. Expect to see many more of these measurable benefits in the coming year.

Google and other cloud computing vendors are getting more serious - and strategic - with their Web 2.0 deliveries. Google just delivered its voice and video chat for Gmail, empowering its 50 million e-mail users with a simple messaging application that is beginning to resemble Microsoft SharePoint. Google's solution is largely consumer focused and falls well short of Enterprise 2.0, however, perhaps like Microsoft, at about the fourth version release it will begin to show enterprise functionality.

Blogs, Wiki's and RSS have traversed the enterprise. An end of year survey among eWEEK readers found that blogs and wikis are the most broadly deployed social media tools in the Web 2.0 category - 49% of respondents employed blogs, 48% employed wikis and 43% employed RSS feeds. These are particularly interesting adoption rates when you consider that many of the Web 2.0 tools were initially brought in through the back door and without IT approval.

Also expect to see cloud-based Web 2.0 tools step up to corporate information security standards - or otherwise be replaced by internal (behind the firewall) collaboration tools within the enterprise. The pervasive infection by the Koobface worm this month across Facebook demonstrated another malware targeting social networking sites. Expect to see these attackers combine their destructive exploits with traditional old school social engineering methods to infect greater numbers of social users in the upcoming year. Any only then expect to see Web 2.0 and cloud-based networks step up their information security practices.

While the direction and deliveries are less certain, there should be no doubt that CRM 2.0 and Enterprise 2.0 social media tools will continue their impressive growth and infiltration in the enterprise. According to a 2008 Forrester Research report, the analyst firm predicts that by 2013, investment in customer-facing Web 2.0 technologies (including CRM 2.0) will outstrip spending on internal collaboration software by nearly a billion dollars.

TechnoratiTechnorati: CRM2.0
blog postPost: December 30, 2008 in Social Media | Permalink | Comments (0) | TrackBack (0)
tagTags: CRM 2.0, ERP 2.0, Enterprise 2.0, social media
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