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Web 2.0 + Application in Business = Enterprise 2.0

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People as the platformIn the world of Information Technology, many buzz words and phrases are created everyday. It’s hard to keep up. It’s not only because too many of these words are thrown at us everyday but also because their definitions often change rapidly. One of these phrases is Web 2.0 – which I talked about in my previous article.  Now, let me throw you another one of those technology buzz words – Enterprise 2.0. 

The term Enterprise 2.0 was coined in the spring of 2006 by Andrew McAfee. As an Associate Professor of Harvard Business School, he studies the ways that IT affects businesses. His research efforts are focused on investigating how IT changes the way companies perform, organize themselves and compete. Andrew McAfee defines Enterprise 2.0 as the use of emergent social software platforms within companies, or between companies and their partners or customers. It is quite simply the application of many of the Web 2.0 ideas to the enterprise.

AIIM, a non-profit organization that provides education and research, takes this further. According to AIIM, Enterprise 2.0 is a system of web-based technologies that provide rapid and agile collaboration, information sharing, emergence and integration capabilities in the extended enterprise. 

Enterprise 2.0 Adoption 

Until now, many firms have yet to recognize the potential advantages Web 2.0 could bring to the business. Traditional command and control management is directly opposed to the distributed and collaborative style advocated in Enterprise 2.0 and there are always a set of rules that discourage change. For this reason, adoption of Enterprise 2.0 tools is happening from the bottom up. Enterprise 2.0 is being brought up gradually by ordinary users. It is uncommon to see adoptions and initiatives – such as establishing a corporate-wide blog or wiki – spearheaded by top management. More often, blogs are started by individuals and small groups in one department as an independent initiative. In some cases, these blogs, social media sites and microblogs succeed and evolve as key components of the corporate internal and external communications arsenal. 

Few companies right now are pioneering the use of Web 2.0 platform. One of then them is Sun Microsystems. Sun uses Open Source and Enterprise Social Software to build a YouTube-style portal for social learning. They have implemented a learning environment called Sun Learning Exchange (SLX) to provide training programs to employees and contractors in more than 50 countries. The entire solution was built for $60,000. One week after launch, there were more than 3000 unique visitors and hundreds of unique content were uploaded. The viral rollout strategy proved to be a success and allowed Sun to create more value with less investment in training. 

UniversalIn my article last month, I talked about how Universal Studios used Web 2.0 platform to announce the opening of the Wizarding World of Harry Potter project. They invited seven avid Harry Potter fans to a top secret webcast and informed them about the plans for the new theme park. By word of mouth, these seven people told thousands through emails, internet forums and blogs. Eventually, mainstream media picked up the buzz and wrote about it in magazines, news, and TV reports. In a few days, the news reached millions of people. Universal was able to reach its global audience by first reaching out to a select group of fans through the Internet. They were able to save thousands and perhaps millions in advertising costs. 

Enterprise 2.0 Challenges 

It is understandable that in spite of the current momentum, Enterprise 2.0 is experiencing strong resistance from business managers. I think the challenge is two-pronged: cultural and structural. There will always be cultural challenges when you are trying to make people work, collaborate and organize in a different way. Companies are so used to the traditional management and coordination style that it’s hard to imagine a quick transition. On the other hand, the Enterprise 2.0 model and its supporting structure also need to strengthen. Experts argue that it’s hard to implement something that has no commonly accepted business model and runs in an immature services landscape. Application management, support, security, ownership and identity are also common challenges being confronted by early implementers. 

To be continued… 

We already discussed about Web 2.0 and Enterprise 2.0 in two separate articles. We’ve laid out the groundwork. In my next post, we will further explore these topics and talk about how to incorporate cutting-edge Web 2.0 services within the enterprise networks, create internal social networks, blogs, wikis and manage Enterprise 2.0 security and compliance.

“New Internet Version” is All About Participation

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Just by reading this article in this weblog, you become an official user of Web 2.0.  If you have a Facebook account, keep track of 200 or more friends, tweet at least once a day, have a professional LinkedIn account and rely on Wikipedia for the definition of things – you are an active user of Web 2.0. Congratulations! You are officially part of “generation Web 2.0 plus”! It might surprise you to know that although you might be hearing about Web 2.0 for the first time, you have actually been active users of it for quite some time.   

Comparing Web 1.0 vs Web 2.0

I think the best way to explain what Web 2.0 is to compare it to Web 1.0 which is its earlier version. Web 1.0 is a general reference to the World Wide Web before the developments of advance internet collaborative applications. This was during the period when the internet was dominated by companies who maintained heavy and static sites for promotion and marketing. At that time, it was difficult to maintain personal websites. Many attributed the dot-com-bubble in 2001 as the turning point of the internet. 

Web 1.0 and Web 2.0Basically, what happened was a change in paradigm. This was due to two main factors: people and technology. With people, I refer to us.  Yes — you and me. We who make up the critical mass of internet users who use the internet as a platform for simple, light-weight services that leverage interactions for communication and collaboration. Additionally, advancement in technology enabled these platforms, network and services. The attached illustration contrasts the differences between Web 1.0 and Web 2.0. Look at the boxes closely and try to imagine how the internet has evolved from the time you started going online until now.

Web 2.0 is the portion of the Internet that is being developed continuously and interactively by participating Internet users. It is commonly associated with web development and web design that facilitates interactive information sharing, interoperability, user-centered design. Web 2.0 is a catch-all term used to illustrate a variety of developments on the web and a perceived shift in the way the web is utilized. This has been characterized as the evolution of web use from passive consumption of content to more active participation, creation and sharing – to what is sometimes called the read/write web. 

Example of Web 2.0 Tools

Web 2.0 is a platform that enables the user to comment, tag, modify, improve and rank. The most well-known examples of this technology are found in sites like YouTube, Amazon, and Google where user ratings make it easier for other users to find what they are looking for. Social media tools like Facebook and Blogs allow users to write stories and stay connected with friends. Twitter opened up the world of sharing short thoughts. And Wikipedia is powered by users who provide and keep content up-to-date and accurate. 

Personally, I am particularly attracted to the aspects of communication and free online expression of ideas. That’s the reason why I invest time writing articles. A few years ago, it would have been extremely difficult for me to find a medium to express my ideas.  Web 2.0 tools have reduced barriers to the publication and distribution of information. 

In its most basic form, Web 2.0 is about participation. It is about communication and collaboration. It has indeed change the way of life of this generation and it is still evolving! 

Enterprise 2.0 – A Peek into my next Post 

Many of the Web 2.0 platforms began as customer-facing sites designed for marketing and communications until people looked for ways to apply these ideas to the enterprise. You might have noticed already that blogs, social media and microblogs have evolved as key components of the corporate internal and external communications arsenal. This use of the Web 2.0 paradigm and technologies in business is now widely known as Enterprise 2.0. On my succeeding posts, I will elaborate on this further and provide business practical applications of Enterprise 2.0.

Web 2.0 is Changing the Rules of Advertising

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The fast growth of technology has exponentially changed how we use the Internet. It has made businesses take a serious look into how to take advantage of the new version of the WWW or Web 2.0. Companies are forced to adapt in order to make the most of internet-enabled channels. This article talks about how social networking sites and search engines have changed the rules of the advertising game.

Social networking sites such as Facebook, Myspace, and blog service providers (such as Blogger, Blogspot and Multiply) have created a new medium that has elevated “interweb interaction” to a whole new level. Facebook, for instance, boasts having over 200 million users, LinkedIn has 40 Million, and Twitter, a leading micro-blogging site, has almost 26 million.1

Google is arguably the most influential company of the decade. It has changed advertising more than any other business. Google has revolutionized the ad business by enabling marketers to pay for performance rather than space, time and eyeballs.  It has opened up millions more places to place ads, increasing availability of ad channels.

Google has a simplified approach to advertising. It uses Google Adwords for advertisers and Google AdSense for site owners. With Google Adwords, advertisers only pay when people click on their ads. Companies can create ads and choose keywords related to its business.  These ads appear when users search online—making specific information available to an audience looking for it. Google Adsense on the other hand enables website publishers of all sizes to display relevant Google ads and earn. It gives site owners access to Google vast network of advertisers, so they can show ads that are suited to the contents.

When Universal Studios first announced they were opening the Wizarding World of Harry Potter, they did so by telling just seven people. They invited seven avid Harry Potter fans to a top secret webcast to inform them about the plans for the new theme park. By word of mouth, these seven people told thousands through emails, internet forums and blogs. Eventually, mainstream media picked up the buzz and wrote about it in magazines, news, and TV reports. In a few days, the news reached millions of people.2

The concept of advertising spaces doesn’t quite apply anymore to the world of social networking because we are not talking about static space, billboards, newspaper ad space, and television spots. The internet, where billions of users (estimated to be 70% of total population) have spent some portion of their time viewing pages and exchanging information, is the new medium. Unknowingly, social network users have become natural channels for advertising. For example, while writing this article and simultaneously facebooking, I came across a recent post from Thiago Pierson, a Brazilian colleague of mine, talking about a great steakhouse in Fort Lauderdale. He wrote, “Chima Brazilian Steakhouse in Fort Lauderdale is the best one so far!!” Naturally, being the steak lover that I am, my tendency was to google it.  I read the review and checked the menu. Now I am already making plans to visit.

1 http://helixcommerce.blogspot.com/2009/06/social-sites-are-everyones-space.html

2 The New Rules of Marketing & PR, David Meerman Scott

Web and Advertising

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