Web 2.0 – is that a new style guide for Web sites?  A new technical specification?  A new release version for Microsoft?  Doesn’t that have something to do with Facebook?  How is that going to affect my current Web site?  

In a marketing agency, these types of questions come up frequently as organizations look to us to update or launch a new Web site project or online strategy.  While Web 2.0 is not a new term, it has definitely picked up momentum and is weaving itself into the mainstay of the entire business world.  The variety of Web sites, conferences and businesses lending their credence to Web 2.0 has increased immensely over the past few years, creating a buzz among organizations to learn more about this technology and how it works. Yet even with all this information, there remains confusion around what Web 2.0 really is. 

Surprising?  Not really.  This seemingly simple term can be quite complex, especially for those outside of the IT world.   And while some organizations have a much better understanding of what Web 2.0 entails, all too often the true value gets overlooked – the impact it can have on a business’s strategy and operations. 

So What Is It?
While the name might indicate a ‘new Web release’, in reality it’s not new technical specifications at all, just a way in how current technology is used.  According to Wikipedia this term is used to describe the trend in the use of World Wide Web technology and how developers and end-users utilize the Web.  Most of us are not foreign to this concept at all and utilize this technology in some fashion every day. Social networking sites (Facebook, My Space), wikis, RSS (real simple syndication), even this blog—all are tools that support the inherent concepts of Web 2.0—enhanced creativity, information sharing and collaboration.

But How Is It Really Affecting Business?

The Good:
Obviously this technology is growing into more than just consumer tools and Internet pastimes.   Businesses have recognized the benefits and relevance of Web 2.0 technologies and are readily investing in this concept. In fact, studies done by Forrester Research found that one in three businesses across North America and Europe is planning to invest in Web 2.0 tools and technologies in 2008.  They also stated that enterprise spending on Web 2.0 technologies will grow strongly over the next five years, reaching $4.6 billion globally by 2013.

In fact, many organizations have already incorporated some level of Web 2.0 into their strategy, without even knowing this was part of the buzz.  Companies have learned that this technology is an inexpensive and easy way to interact with their users.  By fostering business communities, corporate blogs and Facebook pages, etc., companies can reach their customer base more quickly and enhance their products and services more regularly based on end-user feedback.  Even internally within an organization, Web 2.0 applications can increase information sharing through wikis and internal blogs as well as incremental releases—all greatly reducing time-to-resolution of key issues and problems in an organization.   In a TopCoder survey conducted for ComputerWorld, seven in 10 coders stated that traditional corporate development teams could benefit from Web 2.0 techniques, specifically the incremental feature releases, quick user feedback loops and quality assurance programs that include users. 

The Bad and The Ugly:
It’s apparent though that not all businesses are ready to open their doors and embrace Web 2.0.  While this technology acts as a catalyst for collaboration, it has also opened up a real vulnerability—greater access for hackers, more susceptibility to viruses,  risk of employees inadvertently (or purposefully) sharing proprietary information, negative information posted over user groups—that organizations have not had to focus on so intensely in the past.

There also remain a lot of questions and concerns regarding legalities and liability around public disclosure as well as ownership of intellectual property when utilizing these technologies.  While companies can (and should) incorporate more procedures and controls to protect themselves, there has been very little regulation as to what that looks like.  Just recently the U.S. Securities and Exchange Commission issued a statement addressing the need for greater guidance regarding many of these applications for businesses. 

So What’s Next for Businesses?
Web 2.0 is essentially a paradigm shift in the way we not only socialize and communicate, but also in the way business is conducted.  Clearly not all aspects of Web 2.0 are a match for every company and not every company is immediately ready to incorporate any of these processes or applications, but it is certainly gaining popularity across the masses and finding new ways to integrate into every day business.  Organizations do not really have a choice in IF they will utilize this concept, but rather HOW they will utilize it. So, what about your business; how is Web 2.0 affecting your strategy?

Nikki Leonardi
Marketing Director
ClearEdge Marketing