We're continuing on in our "Top 20 Enterprise 2.0" Questions & Answers series! In the coming weeks, we'll be posting topics around some of the challenges, best practices and strategies regarding Enterprise 2.0 adoption. We hope you'll join in the conversations!
E2.0 Top 20 #3:How can E2.0 produce a tangible ROI?
In a McKinsey survey of 3,249 executives in Dec 2010, “Web 2.0 finds its payday”, among respondents at companies using Web 2.0, a large majority continue to report that they are receiving measurable business benefits. The 1,598 executives that had implemented them for internal purposes reported the following benefits:
- Increase in speed of access to knowledge - 77%
- Reduction in communication costs - 60%
- Reduction in travel costs - 44%
- Reduction in operational costs - 40%
- Average reducing time to market for products/services - 29%
- Average increase in number of successful innovations for new products and services - 28%
- Average increase in revenue - 18%
Evidences from self-reported performance metrics:
- Overall, 27% per cent of the companies in the survey reported having both market share gains against their competitors and higher profit margins
- Market share gains correlated with technology-enabled collaboration with external stakeholders. How? Customers engagement in products development and support
- Higher margins than competitors correlated with the ability to make decisions lower in the corporate hierarchy and with the willingness to include in working teams both in-house employees and individuals outside the organization
- Enterprises that report a widespread use of Web 2.0 - involving employees, customers, and business partners - were 50 percent more likely to fall in the high-performance group
The following quotes from our customers help to illustrate how E2.0 can produce a tangible ROI.
“Oracle WebCenter Spaces, and its flexibility to allow business users to create collaborative spaces and maintain their content, has helped us control our support costs.” Wayne Roberts, Director of IT, Canadian Partnership Against Cancer
“The technical solutions provided by Oracle have helped us in such a comprehensive fashion that we completely succeeded in our goal of 100% availability.” Borja Letamendia, Director of Services, Panda Security Spain
To learn more about the ROI benefits of E2.0, we invite you to view the following resources: