 "Web 2.0 Catalyses Rapid User/Consumer-driven Change")
Enterprises are quickly adopting Web 2.0 based applications in order to gain a greater level of insight into their enterprises internal data. This quick adoption of Web 2.0 in the enterprise has given rise to a new term Enterprise 2.0.
“Enterprise 2.0” as a term derives from Web 2.0 and is sometimes used to cover the introduction and implementation of social software within the enterprise, and the social and organisational changes related to its use.
Biztech 2.0 spoke to Asheesh Raina, principal research analyst for Gartner’s software group regarding some advancements in the use of Enterprise 2.0 and a few trends in that regard.
How has Web 2.0 affected enterprises?
The broad impact of Web 2.0 is potentially compelling and confusing. It is useful to deconstruct it into three key focal points, dealing with technology, people and business issues such as Web Architecture, Web Community, Web Business respectively.
In general, Web 2.0 catalyses rapid user/consumer-driven change, which is accelerating market share growth for companies that exploit it.
What are the business implications of “Web 2.0” technologies?
Well, the implications can be broadly categorised according to ecosystem, process models, and value models.
• Ecosystem: Vendors can now, deliver business processes as a service to be remixed (the business side of mashup), viral marketing, syndication.
• Process Models: Process models can be formed around, customer/community dependencies, business of remix, information replaces relationships as key ingredient.
• Value Models: As a result of this kind of technology one can have various kinds of pricing models (usage, subscription, derivative/commission, revenue sharing), micro-payments and advertising models (impression, intent, conversion).
Many companies have established themselves around Web 2.0. Do you believe these companies will be long term players?
Web 2.0 represents a fundamental shift toward a more open, flexible and participatory model for creating content, systems and business models. Its application can reduce costs, enhance adaptability and create new business opportunities. The companies which keep changing and adopting new technology and trends in sync with time usually remain long term players.
How can CIOs take advantage of these emerging Web technologies?
Advantages can be taken as Information-based products can be distributed and developed in shorter periods of time. These include:
• Rapid information sharing.
• The role of Web influentials (such as bloggers who have built social networks that, when linked together, challenge traditional media channels) means that information-based products and services, and Web sites can rapidly gain “mind share” in short amounts of time, and with lower budgets than what were required in Web 1.0 many-to-one information models.
• Web 2.0 rich-client technologies will expose new markets to new forms of information-based content (such as MapQuest mashups for location support).
Is there any clear cut way to measure ROI with such technologies?
Measurement of ROI depends on the business model. If the organisation is one based on information and services, then ROI will be more visible than compared to say traditional manufacturing industry.
What is the future of Web 2.0 applications with regards to usage in enterprises?
Gartner believes that most of the enterprise software providers will look to have Web-based software as a service delivery model that includes Web APIs to create mashups. Web mashups will be the dominant model for the creation of composite enterprise applications.