If you're a business who has been ignoring the Web 2.0 trend and the spread of social media: look out, the tide is shifting and you're about to be left behind. The rise of social media didn't happen overnight, the power of the internet to unite people, the ubiquity of broadband, the rise of Gen Y, the development of new technologies for socializing on the web - all of these things and more have led to the rise of social media. And this new force is affecting change in the way that companies do business - now and for many years to come.
Just recently, Business Week ran an update to their 2005 study "Beyond Blogs," saying that today the title should be "Social Media Will Change Your Business." The story highlighted the current trend of workers not just using blogs, but also social networks and other Web 2.0 applications to spread news, connect, create buzz, interact and socialize with others -both for business and for pleasure.
While this lack of control frightens upper management and causes I.T. nightmares in some cases, businesses are already becoming aware of these new trends as the next Generation, Gen Y or the "Millennials," as they are sometimes called, enters the workforce.
Even 60 Minutes recently updated their story about this new generation, 80 million strong, who are rapidly taking over the web...and the world (as we said here). Besides their seemingly alien values - everyone's a winner, me-first, work isn't everything, I'm a commodity I can sell myself to the next business who wants my talents, needing to always know why?, and more, one of the most visible changes is their interaction with technology. Born into a time when computers had always existed, Gen Y embodies the definition of a digital native and they have mastered the tools of social media and use them as easily as we check our email.
As companies struggle to adapt to this new trend in order to deal with both their employees as well as their customers, the business of social media consulting has gotten a boost as the consultants teach the old school execs how to navigate this brave, new world. A recent book on this Web 2.0 movement dubs the change a "groundswell," and provides tools to these companies who have found themselves needing to adapt but that did not know what to do or how.
And adapt they must because the number of companies who are already integrating Web 2.0 technologies into their businesses processes and I.T. infrastructure is on the rise. A study by Forrester on this topic points to hard numbers that back this up.
In fact, the adoption rate of Web 2.0 technologies by I.T. is actually stronger in enterprises than it is in SMBs, with 42% of enterprise businesses now utilizing Web 2.0 technologies like AJAX, Flash, Flex, etc. to 32% of SMBs. Additionally, there is growth in the areas of Web 2.0 app investing, with a number of companies investing, piloting, or considering investment in Web 2.0 technologies like RSS, podcasting, wikis, and blogs.
Internally, the trick to getting the right mix of Web 2.0 and other technologies has to do with the speed of change and the amount of risk to the business. Where risk is lot and speed of change high - in areas like web publishing, team management, and help desk technologies, for example - Web 2.0 applications and technologies can help the business become more efficient.
Externally, Web 2.0 technologies are used to take content to the customers. RSS, social networks, web and desktop widgets, blogging, user communities, and more can help a company easily reach customers to communicate a company's message and increase brand awareness. This topic is discussed in more detail on the Employee Evolution blog in an article titled "Every Company Should Use Social Media," where the techniques for utilizing social media to improve credibility, brand, "coolness," and more are examined.
Ultimately, companies ignoring this shift will only do so their own peril. The numbers don't lie: your customers have adapted and your competition has adapted - turn a blind eye and prepare to lose marketshare. You may even just lose altogether.
The chart in this post is courtesy of a Forrester webinar sponsored by the Forrester Leadership Boards Application & Program Management Council, a role-based knowledge community for senior Application & Program Management Professionals: http://www.forrester.com/leadershipboards. Photo credit for Web 2.0 logos: shopping2null
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i recently helped a medium sized specialty manufacturer decommission a poorly implemented SAP SCN supply chain solution that can only be described as, "a non-performing asset", and replaced it with off the shelf Web 2.0 services and minimal REST glue.
The training savings alone were able to recoup the total SAP bust.
Posted by: abm
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May 30, 2008 10:39 AM
BTW, in regards to that job:
The SAP VAR and the consultants can only be described as, Thieves. No other way to put it.
Posted by: abm
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May 30, 2008 10:40 AM
No question its happening..you only have to go to web 2.0 conference to see all the big companies there.
Thanks, Jitendra
Posted by: Jitendra | May 30, 2008 11:49 AM
"Every Company Should Use Social Media"
and
"Ultimately, companies ignoring this shift will only do so their own peril."
This is simply not true. There are companies that would relinquish credibility and authority by using social media.
Posted by: Svi Poslovi | May 30, 2008 4:34 PM
Enterprise 2.0 is a growing phenomenon in Europe as well but we have a lot of ground to cover to engage and increase the awareness among our companies and organizations.
On this theme, we are putting together the International Forum on Enterprise 2.0, a global and completely free event that will be held June 25th in Italy hosting experts like Thomas Vander Wal, Stewart Mader, Luis Suarez, David Terrar, Ran Shribman, Laurence Lock Lee, etc.
I you want to join us (again it's free), register at http://enterprise2forum.it/cms/pages/home-en.php?lang=EN.
Posted by: Emanuele | May 31, 2008 2:26 AM
Millennials have the eagerness and tech knowledge to start an enterprise, but they need the experience and business skills of the Baby Boomers to be successful over time. All of a sudden they'll start to wear business suits and leave the sandals for the beach.
It's good that the Millennials prefer family and friends over work, that means there will be more jobs available for the less picky.
Posted by: Joel Mismo | May 31, 2008 5:36 AM
OMFGZZZZZZZZ! The internet as a medium is evolving, and so are it's uses! Break out the buzzword and bubbly!
IT. IS. Party Time!
Posted by: tom | May 31, 2008 6:44 PM
You are right, and it not only commercial enterprises that are effected by the Millennial shift. Web 2.0 technologies are even more critical for membership associations which currently share content and access to expert opinion based on 19th century ideas of social interactions. These associations are going to be roadkill unless they adapt and adapt quickly, while at the same time keeping to their central tenets of impartiality and scientific detachment.
Posted by: Gregory Umanov | June 1, 2008 10:31 AM
interesting article , but it only touches the surface, it would be better if you provide more examples.
Folks can join Company 2.0 Group on Facebook to discuses how web 2.0 is changing companies:
http://www.facebook.com/group.php?gid=6116743594&ref=share
Posted by: Ghaith | June 1, 2008 5:08 PM
Web 2.0 is the shiznit
Posted by: The Tech Juice | June 1, 2008 6:14 PM
I think it is the natural way... because Web 2.0 is there for a while and big and small companies that some time to warm up
Posted by: Ruben Zevallos Jr. | June 2, 2008 6:42 AM
New job sites like realmatch.com and jobfox.com are matching employers with job seekers based on skills, this is a generation y phenomenon.
Posted by: Jayden | June 2, 2008 8:35 AM
While the US has fairly liberal free speech laws, one of the big problems that many other countries have to get sorted out in the so as short term to allow user generated content to go ahead are the legal aspects of copyright and libel. These things can really hamper the development of a site.
Posted by: bob loblaw | June 2, 2008 11:23 AM
From a Web Cost Estimation viewpoint, web 2.0, changes nothing - just different implementations - but some interesting points made.
Posted by: nsm | June 2, 2008 1:34 PM
Most of the dialog about corporate use of Web 2.0 focuses on how they are going to use it for external marketing/branding or reaching the Gen Y audience. That's a good story, but only a minor use.
Internal communication and collaboration is where I've seen the biggest adoption, growth... and success. Internal blogs and wikis are especially impactful.
Posted by: Bob Angus | June 2, 2008 1:36 PM
How long until you can run an entire business using freely available Web 2.0 Apps?
Google is your new homepage!
TO'B
Posted by: Tom O'Brien | June 2, 2008 8:42 PM
yes its happening. there is no looking back
Posted by: butter | June 4, 2008 1:23 AM