Thanks to Twitter, I ran across a post by Jevon MacDonald about an Enterprise 2.0 market. More specifically, the post was Jevon arguing that there is no Enterprise 2.0 market. His valid points include:
- There are very few companies with Enterprise 2.0 budget line items.
- Enterprise 2.0 is too loosely defined at this point to make it valuable as a solution (or set of solutions) for organization problems.
- There aren’t enough companies providing Enterprise 2.0 solutions (and providing them successfully) to roll up into a larger market.
What I gathered from Jevon’s article was something that we strongly believe at BSG Alliance: if what you’re selling doesn’t provide some bottom-line benefit (read: increase in profitability, productivity, and market share), then you’re not selling something that’s got a valid market value.
Here’s my take: A good Enterprise 2.0 startup doesn’t need an Enterprise 2.0 market. A good Enterprise 2.0 startup needs to address a real business problem, and do it well enough to make some money. It’s all about the Benjamins, baby.
Enterprise 2.0 startups need a market for what they’re selling – and they’d better be selling something that creates efficiencies, cost savings, and competitive advantages.
Take a look at Jeff Nolan’s “Dude, Where’s My Market?” post from last month to see a great example of a startup, Echosign, with a product that solves a real business problem, and does it well enough (using Enterprise 2.0 tools, technologies, and philosophies) to make money for themselves and their customers. Here is how Jeff explains Echosign’s success:
This company is growing not because they have a trendy set of buzzwords they use consistently, but because they solve a real problem that spans a significant number of prospect buyers, understand how to target and sell it at the price points they do, and manage their costs by taking advantage of efficiencies that technology enables and eliminating potential expenses by having discipline about the product management and development cycles.
At BSG Alliance, we’re focusing on our customers’ needs to increase efficiency and profits. Next Generation Enterprises are all about the bottom line: cost savings that come from increased collaboration, better systems that come from using agile methodologies, increased sales that come from a focus on the customer (rather than the competitor), and increased productivity that comes from engaging talent in unique, efficient ways. BSG Alliance is one of those Enterprise 2.0 startups that didn’t look for an Enterprise 2.0 market – instead, we saw that companies were struggling because of their inability to effectively manage talent, technology, and customer expectations in an wired world. Their lack of flexibility is their pain point, and becoming a Next Generation Enterprise is what solves it. Just like Echosign, we’re building our solutions to solve real business issues, and we’re continuing to be successful because of it.