Blog entry number 3 coming up and this week im looking to tackle the benefits and risks associated with implementing Enterprise 2.0 by using a real world case study to highlight how this relative new form of technology is transforming the way some of the worlds largest companies are doing buisness.
The Home Depot for those who are not familiar with the company is the largest home improvement store and the fourth biggest retailer in the United States so for the Australian readers its there version of Bunnings. For more information on the business of The Home Depot feel free to check out there home page
or Wikipedia entry
(a good example of web 2.0 technology!!!).
The Video link below shows a short presentation of Home Depots Web 2.0 use:
The Home Depot has been using varying degrees of Enterprise 2.0 for a number of years and as a general rule found it to be a huge success. One of the these first areas of success came in late 2008 when the retailer used Twitter as a method of communicating with possible customers regarding storm damage caused my the hurricane season. The retailer had previously used Twitter to share home improvements tips but switched to tweets about general hurricane preparation tips, suggesting people to locate their main water and electric shut off switches, the moving of appliances and the danger of carbon monoxide posing from leaking generators. Not only did this receive hugely positive feedback and greatly improved the reputation of the brand it also improved sales.
Not all of Home Depots experiences of using Twitter have been positive, when the company first set up the sites Twitter page a number of complaints where being tweeted, where previously these would of been kept in house they where now out there for the whole world to see. This created a number of possible issues to the brand, which varied from loss of control, loss of reputation and even the perception of reliability of there products. Despite this The Home Depot managed to transform these possible negative effects into a positive by relieving any issues these customers may have by resolving there issues and complaints in the public eye. These issues and fixes can still be seen on there companies twitter page
Another area of the enterprise 2.0 world that The Home Depot is heavily involved is a YouTube Channel
, here the company uses videos to show there market base “How to…” complete a wide variety (144) of DIY jobs around your own home. The retailer has been careful not to use this has a clear advertising method instead focusing on the knowledge part and getting customers to do jobs themselves. These videos are not also being used for customers but are a great method of getting a small understanding of different aspects of the store for there employees and thus improving diversity. The YouTube channel also shows a series of videos labeled “Behind the Apron..”, these videos act as recruitment and even inform the viewer about difficult parts of the job and this honest enhances reputation in my opinion.
These are only a number of the Enterprise 2.0 methods used by the retailer to improve there brand and despite a small portion of negatives its one area many companies like The Home Depot will continue to invest in.
Some links to stories/posts about the Home Depot and Enterprise 2.0