Enterpise2.0 – better to be small than big?

By December 11, 2006 No Comments

This is a follow on from my earlier post Enterprise Culture 2.0 – shift from control to co-ordination where I argued that going forward in order to be agile successful companies will delegate power right to the edge of the enterprise, and the dominant culture will move from control to co-ordination.

If I am right then I think this will be very good news for entrepreneurs and VCs.

My train of thought runs something like this:

  1. If power is delegated to the edge then adoption of new technologies will be from the edge in replacing today’s model of imposition from the center out (this will work because they will be lightweight web services that can be used without integration – to start with at least)
  2. Finding and communicating with these customers will be via the web and the blogosphere
  3. The IT director will no longer be the gate – he is the guy who never gets fired for buying IBM and is often in the pocket of the major vendors
  4. In fact (and I may be dreaming here) the big companies might miss a lot of opportunities because they are listening to their customer (the IT director) who will be resisting this trend

If I am right then even more than in the past small companies will be engine of growth and innovation.  

The guys who might really suffer are the kings of the old enterprise software world – Microsoft, Oracle, IBM, SAP etc.  Companies like Google and Salesforce already have an edge-in model.