To start with the positive: This is a really solid business book, which sets out a clear methodology (including the Social Technographics Profile and the POST method with which Forrester clients / subscribers are already familiar), walks through a broad range of well explained case studies, and situates the business benefits of the different approaches.

Bernoff and Li have clearly done their research here, talking to a wide variety of companies in different industries about their experiences with “social technologies,” and they do a very astute job of avoiding oversimplification (never suggesting, for example, that every business should follow a simple formula) while also not falling back on the consultant’s refrain (“it depends”) or failing to give real, useful, pragmatic, and actionable advice.

The book is laid out into three key sections (you can see the whole table of contents online):

1. Understanding the Groundswell – in which they lay out the basic context of what has changed and why businesses need new approaches, as well as the social technographics profiles
2. Tapping the Groundswell – in which they lay out the POST method, and walk through all the ways companies can benefit from / leverage this new world
3. The Groundswell Transforms – in which they extend the argument to include how this new set of conditions can transform the enterprise.

Each section is supported by a handful of specific case studies and other examples, which are drawn from a wide variety of industries. There are indices by company and by strategy at the end of the book, so you can quickly find examples from your own vertical or place on the adoption curve.

Li and Bernoff are at their rhetorical best when they are describing the veritable sea change that the groundswell represents:

You cannot ignore this trend. You cannot sit this one out. Unless you are retiring in the next six months, it’s too late to quite and let somebody else handle it. The groundswell trend is unstoppable, and your customers are there. You may go a little slower or a little faster, but you have to move forward. There is no going back.

They also offer solid, sound advice to those looking to manage the cultural change required within an enterprise to successfully pull of “Groundswell thinking”:

• First, start small.
• Second, educate your executives.
• Third, get the right people to run your strategy.
• Fourth, get your agency and technology partners in sync.
• Fifth, plan for the next step and for the long term.

Not exactly radical or wholly original advice, but wrapped in the context of real business decisions made by people facing the issues, and informed by real experiences.

In short, I’d say the book is a must read for anyone from a traditional (by which I mean anything existing before the web) business looking to adapt to the internet age, anyone trying to convince their more traditional colleagues or bosses to adopt new strategies, and anyone hoping to sell such folks consulting and technology services.

Having said all of that, there are some minor blemishes – for example, when did del.icio.us become “a simple downloadable application”? Are they talking about the bookmarklets (javascript buttons for your browser to submit things to del.icio.us)? But that is really an exception in an otherwise well researched and well documented book.

Rather more difficult to ignore is the almost complete absence of Free and Open Source Software from a discussion of “Social Technologies.” There is a section titled “people collaborating: wikis and open source” (the lack of title capitalization is in the original – even the book title is in all lower case), but it really should be called “people collaborating: wikis.” Granted, Bernoff and Li aren’t technology analysts per se – in the sense of analyzing development approaches and platforms – and in the POST methodology technology is the last element. But I’d argue that it is critical to understand the context of mass collaboration rising out of open source communities in order to better understand the mechanisms by which communities are created and sustained, thrive or fail, and interact with each other in an online world.

Instead, the whole of the analysis of this phenomenon comes to a paragraph in which we learn:

The same sort of cooperation [as that which drives wikipedia and other wikis] drives other forms of online collaboration, including open-source software products like Linux (a version of the Unix operating system), Apache (a Web server), and Firefox (a Web browser). In open source, technically adept developers combine their efforts to build, test, and improve software products, and the code is available for all to see. Before you scoff at this form of development, recognize that Linux now underpins many Web servers and consumer electronics devices, including TiVo; Apache is the dominant Web server software on the Internet, and Firefox has gone from zero to over 25 percent market share in less than two years.

That’s it, basically, for open source. No analysis of the massive collaboration efforts behind those projects, or how they are managed, arise, die, become businesses, become communities, etc. No analysis of how these and other open source projects provide either models or anti-patterns to be avoided. Not even any analysis of how the open source development methodology and licensing practices have influenced other cultural practices through things like creative commons licensing, open access, and challenges to many fundamental corporate notions of intellectual property.

Bernoff and Li seem to assume that their reader has no familiarity with and no interest in development – which may be accurate – and don’t seem to have much interest themselves in the impact open source can and has had.

(Readers interested in these issues would do well to check out Chris Kelty’s Two Bits and Clay Shirky’s Here Comes Everybody – the former on the cultural significance of free software, the latter on how technology changes have enabled and facilitated changes in social organization – both of which I hope to write more about in the future).

What ultimately left me dissatisfied with the book, however – and here we return to the question of whether this reveals more about me as a reviewer than the text – is that it never steps outside its tightly constructed frame, which essentially comes down to “how do I use this to improve my business”?

It isn’t that I expected, or even wanted, Li and Bernoff to craft a revolutionary manifesto – a sort of Cluetrain II or Wealth of Networks for the MBA set – but that the tone is so relentless in its focus it can begin to feel like the only valid reason for the Internet’s existence (and the only valid use of it now that it exists) is to sell more widgets, make people feel better about the widgets they’ve bought, and maybe help a few companies make better widgets.

It ended up reminding me of one of my favorite 80s movie scenes, from Say Anything, when John Cusack is asked what he wants to do with his life, and answers:

I don’t want to sell anything, buy anything, or process anything as a career. I don’t want to sell anything bought or processed, or buy anything sold or processed, or process anything sold, bought, or processed, or repair anything sold, bought, or processed. You know, as a career, I don’t want to do that.

Again, to be fair, I’ve got no problem with businesses trying to understand how to adapt to the changing environment the Internet and social media represent, or even with helping businesses figure out how to leverage these new approaches to generate profit or awareness – in fact, that’s a fair description of what I do at Optaros, and what Optaros does more broadly.

It’s just that in the middle of the focus on tapping, listening to, talking with, energizing, embracing, and connecting with the Groundswell (every single chapter title involves doing something with the groundswell or enabling it to do something to your company), there’s precious little exploration of what is driving the Groundswell in the first place, or what it means more broadly as a social and historical phenomenon. Why the groundswell now? What impact is it having on us as a culture, other than just what toothpaste we think is cool?

(Yes, there is a section in the opening chapter on what the groundswell is and why it is happening now – but it is reduced to this level of causality: “These three trends – people’s desire to connect new interactive technologies, and online economics – have created a new era.”)

Ultimately, Groundswell presents “the groundswell” as something which is happening to us – something we are not creating but either passively suffering from or being carried by, like a surfer on a wave. It seems almost a force of a nature – an inevitable technology tsunami – rather than a collective project in which we are all engaged in actively constructing a specific historical reality.

So is it fair to critique Groundswell for staying within its own well-defined purpose? To criticize it for not being The Wealth of Networks?

If what you’re looking for is an eminently readable, well researched, pragmatic guide to business strategies for dealing with this set of social changes, Groundswell delivers. But in doing so, I wish it had taken more time to step outside the framing of this social change as a kind of natural consequence of the inevitable march of technology and understand the set of changes themselves in greater detail.

Disclosures: Forrester sent me a review copy of the book, as they did to a number of bloggers. Optaros co-sponsored a webinar with Josh Bernoff earlier this year on the topic of open innovation. Several of the companies discussed as case studies are or have been Optaros clients, though Optaros was not involved in any of the specific projects described. Swisscom Mobile Labs, an Optaros client project, was a finalist in the groundswell awards. Optaros is a Forrester client. I know a number of people who work there or have worked there.

Registration (free) is required.

Description:

February 27, 2008 2–3pm – Are Your Products Open or Closed? How to Respond to the New Openness– at Online

Overview: Companies in many industries are struggling to determine how best to deal with the power that social computing gives their customers as an open forum to share how they feel about products with millions of fellow consumers. This newfound power in the hands of customers is creating an openness of information (positive and negative) that is having a dramatic impact on the success of new products and overall company revenues.

Join Josh Bernoff, Forrester Vice President, Principal Analyst and co-author of “Groundswell,” along with Colby Dyess, Product Manager from Endeca for this live TechRepublic Webcast to hear how leading companies such as Endeca and Swisscom Mobile are engaging with their customers to drive new product innovation through the “new openness”.

Tags: open innovation open source community marketing product development social computing customers groundswell forrester Josh Bernoff Colby Dyess Endeca Optaros

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This Webcast will address these important topics followed by interactive Q&A:

• ROI of Engaging with Your Customers for New Product Innovation
• What You Should Do to Tap Into Your Customers for Innovation
• Case Study: Building an Online Customer Community–Endeca’s Developer Network “EDeN”

Key point: Objectives, not technology, need to lead your effort

Don’t build a community just because your competitors do. Don’t just try to “generate buzz” – what is the goal you hope that buzz will accomplish? Figuring out what you’re trying to achieve will let you then measure what you are doing.

It isn’t “how do we get involved in the groundswell” but what problem are we trying to solve or what opportunities are we trying to create.

These are the main objectives:

1. Listening
2. Talking
3. Energizing
4. Supporting
5. Embracing

Analogies to organizational roles:

Research -> Listening
Marketing -> Talking
Sales -> Energizing
Support -> Supporting
Development -> Embracing

In the groundswell (ie, in the web 2.0 era), each of these needs to be transformed a bit. He went through each of them with some examples, including vendors.

Unfortunately, I didn’t hear a single mention of the use of open source to help deliver on these objectives – each objective ended with a brief table listing approaches and vendors – but no mention of assembling your own solutions with open source frameworks, despite the reality that open source frameworks are often the best solutions in many of these spaces.

I know Forrester hasn’t historically focused on open source and I don’t expect them to – but buying product solutions from proprietary vendors isn’t the entire universe. He also didn’t really cover how you integrate these solutions together – so that you don’t end up with five siloed solutions but a cohesive strategy and integrated set of applications which exchange and share data. [Note: this did come up during the Q & A - see the end of the notes below.]

Listening

Listening – this is like your old research department, which is designed to get information from customers.

Example of Lynn Perry, cancer patient, on waiting for treatment at the treatment center – sitting in the waiting room, recognizing “my time is more precious than theirs” – the importance of scheduling and managing people’s tasks in that context – while spending tons on treatment equipment, don’t ignore the need to manage people’s time.

National Comprehensive Cancer Network forum – supporting patiences and caregivers everywhere (SPACE?) – built by Communispace.

This is an example of using a private community (he points to vendors like Communispace, MarketTools, Think Passenger) to create listening opportunities.

The other approach is monitoring buzz in the blogosphere, etc.

Talking

This isn’t just about talking – but it is about conversation, and building brand by participating in the conversation.

Adidas Soccer page on MySpace – when you friend this profile, you get graphics you can use in your own MySpace layouts.

4 million impressions for 100k. This is highly effective talking strategy.

Talking can also mean blogging, something Forrester gets lots of questions about.

Energizing

This is about helping your best customers recruit other customers.

Jim Noble and eBags – energizing with ratings and reviews. He wrote a good review. The zipper broke. He engaged with the head of design from eBags, who actually took his changes to the factory in HongKong where they implemented the suggestions he provided.

Use ratings and reviews (vendors like Bazaarvoice, PowerReviews)

Or designate lead customers to energize others – by creating a brand ambassador program.

Supporting

Dell Support Forum – Posts from predator – 20,452 since 1999.

“I actually enjoy helping people. That’s what got me hooked: when you help people and they say ‘Thank You’.”

The point is people will be willing to help each other. (Vendors: Lithium, Jive, Prospero)

Or, enable customers to build solutions together (Vendors: SocialText, Confluence, Wikia)

Embracing

Work with users to create and prioritize new features, new products.

Salesforce.com idea exchange as the primary example. (Vendors: Communispace, MarketTools)

What about objectives before technology?

Getting back to objectives, Bernoff went through some ROI calculations – cost of running a forum versus answering support calls, cost of corporate communications (in and outbound) versus blogging, etc.

But it isn’t just about ROI – as you start doing this it is a reformation in the way you do things – it will change the company in more profound ways than just the ROI calculation.

–
First question from the audience – is about “who can help us” – he mentions that there are many companies which “can help you build communities” (quick plug – mine not Bernoff’s – companies like Optaros).

Another question from the audience asked about “an integrated approach” – he cautions that companies shoudl start with one objective and then grow from there – integrated is good, but it should be integrated which grows from initial successes – know where you are going in being integrated, but don’t try to do everything all at once.

(Note: somewhere in between disclosure and a plug: Optaros‘ work with Swisscom Mobile Labs is a Groundswell Awards finalist).