Skip to main content

Enterprise Online Community Apps Demand

Consumer social networks are mainstream applications, so people are now demanding similar applications in the workplace that provide personalized online experiences for creating, publishing, locating, and sharing content internally and externally with colleagues, customers, and partners.

If these applications are not provided by an IT organization, IDC observes that employees are bringing them in through their own initiatives. This emerging business need has created a suddenly crowded market of online community software providers aiming to make the business world a more social place.

IDC forecasts that the U.S. online community software market will grow from $278.4 million in 2008 to $1.6 billion in 2013 at a CAGR of 41.8 percent. While the U.S. online community software market was not immune to the recession, dominant vendors in this space reported double-digit growth rates in 2008 and higher-than-expected growth in the first half of 2009.

Overall, the U.S. online community software market doubled in revenue from $135.3 million in 2007 to $278.4 million in 2008 based on the promise of online community software to help organizations deepen relationships with customers and innovate at much faster speeds.

The overall growth rate for U.S. online community software did not meet expectations for 2008 due to the tough economy and drastic cuts in marketing budgets. However, IDC expects a resurgence of growth in 2010 as the economy recovers, more traditional enterprise players enter this market, and methods for measuring return on investment become more standardized.

Still, gaps in adoption will remain based on the failure among some organizations to adjust to these more transparent ways of operating, and some community initiatives will fail due to the lack of understanding about the human capital investments required by the community management model.

"The lesson that technology is only as good as its user will be a hard lesson learned for many companies needing to focus more on community strategy and management than on the technology solution," says Caroline Dangson, IDC research analyst.

Online community software enables new ways of working that require a shift in mindset and culture. IDC finds that traditional corporate culture acts as a major barrier to adoption today, even more so than the economic downturn.

Popular posts from this blog

Digital Transformation Spending Reaches $1.8 Trillion

Ongoing investment in business technology will remain on track, despite concerns about the global economic outlook which continues to evolve in 2022. Enterprise CIOs and CTOs are focused on operational profitability and digital business growth goals that are enabled by strategic IT initiatives. Global spending on the Digital Transformation (DX) of business practices, products, and organizations is forecast to reach $1.8 trillion in 2022 -- that's an increase of 17.6 percent over 2021, according to the latest market study by International Data Corporation (IDC). Many anticipated DX investments will sustain this pace of growth throughout the 2021-2025 forecast period, with a five-year compound annual growth rate (CAGR) of 16.6 percent. Digital Transformation Global Market Development "IDC expects to see aggressive DX technology investment growth in 2022 following a minor slowdown during the pandemic period," said Craig Simpson, senior research manager at IDC . "As orga

Flexible Working: Why Company Culture Matters

The main reasons for the Great Resignation are obsolete leadership, fearful middle managers, and a toxic culture that hinders employee engagement. Perhaps that's why some organizations are still struggling with the consideration and development of a flexible working model.  They're incapable of evolving to a more enlightened approach to work where employees are treated with respect. They're stuck in a bygone era of the 20th-century industrial revolution where 'shareholder value' tops all other values, and where spreadsheets and financial data analysis drives all key decision making. We should not be surprised that 76 percent of human resource (HR) leaders now feel that hybrid work challenges an employee's connection to organizational culture, according to a recent survey by Gartner. A 2022 poll of HR leaders reveals the most challenging aspect of setting their hybrid strategy is adjusting the current organizational culture to support a hybrid workforce. In fact,

Energy Sector IoT Cybersecurity Gains Momentum

The electric distribution industry continues to invest in digital transformation projects. Advanced Metering Infrastructure (AMI) technology is becoming a driver for connected electricity meters, which will reach an installed base of 1.3 billion by 2027. AMI growth is prompting utilities and energy suppliers to revisit their IT infrastructure security and device management operations, according to the latest worldwide market study by ABI Research. Energy Infrastructure Security Market Development Digitization of traditional electricity grids and the modernization of the aging energy infrastructure is among the top concerns for utility operators and governments worldwide. Security for last-mile energy consumption applications was frequently overlooked. "However, the introduction of AMI, smart metering, and grid digitization is steadily increasing spending for secure management services, assisting implementers to transition to IT (information technologies) and OT (operational techno