Yahoo is a company that has always intrigued me. Over the past few years we have all read about the issues facing Yahoo – lack of a clear strategy, management challenges, the on again off again romance with Microsoft and a stock price that has gone from about $35 about 5 years ago to $16 today. And even todays stock price has built into it a significant value from China’s Alibaba.
Clearly Yahoo needs a growth strategy. So here is the “Right Question” Should Yahoo develop and execute on a strategy to provide a comprehensive set of services for the enterprise ? I think they should seriously explore this as an option.
Lets review what some of the current trends are in enterprise software – let me throw out some buzz words – cloud computing & SAAS, social media in the enterprise, social CRM, crowdsourcing, structured and unstructured data, Enterprise 2.0 and so on. In essence, many of the innovations in the enterprise are being driven or inspired by innovations in the consumer web. This is the core of the Enterprise 2.0 approach.
On one hand you have the pure consumer focused companies – Facebook, Google, Twitter etc. On the other hand a new generation of enterprise focused companies are extending these new approaches and seeking to integrate them into the enterprise, SocialCast, Yammer, Ning, Jive etc.
Now lets take a look at Yahoo. Despite its challenges the company is still a consumer technology leader. Some ideas – if a consumer online store – Amazon – can create the leading cloud platform for the enterprise Amazon EC2 then why cannot Yahoo leverage its data center and web management expertise to provide an enterprise cloud infrastructure and apps. Yahoo Finance is a strong product and has interesting potential to be connected with other enterprise apps to provide integrated structured and unstructured information. Yahoo knows how to build communities (maybe not as good as Facebook) but still good enough. Yahoo can be a strong player in providing social media capabilities for the enterprise. You can even consider integrating Yahoo Jobs into enterprise HR systems to provide an end 2 end business process for talent management.
I know that Yahoo has considered some of these options in the past and considered partnerships with enterprise software firms – but these plans never took off and the company focused on its consumer roots. Maybe some of these ideas are currently being discussed in the company – I hope they are.
So I don’t know if a more enterprise focused strategy (to complement the consumer work) is a viable option for Yahoo at this stage but I think it is certainly something that the Yahoo management should explore carefully – certainly if there is any truth to a private equity buyout of Yahoo this should be part of the strategy.
As usual, I appreciate your thoughts and comments – especially from current and past Yahoo employees and experts.
Filed under: Consumer Technology, Enterprise Software, Innovation, Social Media, Social Media in the Enterprise, Uncategorized | Tagged: Design Thinking, Enteprise 2.0, Enterprise Software, Innovation, Social Media, Software, Yahoo | Leave a comment »