Deriving value from Web 2.0
1 September 09
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Over the past three years, we have  surveyed thousands of global executives, both IT leaders and other managers, on their use of Web 2.0 in the enterprise.  In the past, many of the most important technology innovations first occurred in the enterprise, and then would migrate to the consumer.  Now many of the innovations occur first in the consumer space, and then migrate into the enterprise.

Our first survey, back in 2007, began to document the adoption of these technologies by corporations.  In every year since then, we have seen a steadily increasing percentage of companies surveyed adopting these technologies for use by their employees, and for communicating with customers.  Interestingly, the percentage of companies using these technologies for connecting with business partners and suppliers has remained relatively constant, around 40%.

In the second year of our survey, we began to analyze the satisfaction of enterprises with their Web 2.0 initiatives.  While some companies were very satisfied with their use of Web 2.0, as many companies were dissatisfied with their deployments as were satisfied.  From this, we concluded that successfully deploying Web 2.0 was not as easy as many people expected; you couldn't just take a "build it and they will come" approach and expect to be successful.  And as we documented in "Six ways to make Web 2.0 work," based on an in-depth study of over 50 early-adopter companies, there are some key factors to making Web 2.0 deployments a success, especially making the use of Web 2.0 part of users' everyday workflow.

In this year's survey, we turned our attention to a question that many of our clients have been asking us: Where is the real business value from deploying Web 2.0?  Our most striking result is that two-thirds of our respondents had derived measurable business value from their use of Web 2.0!  Tomorrow we will post our article with more details on the ways in which companies have been capturing value, and play around with our new feature that allows you to visualize data from our three years of surveys in an interactive way.

Update (Sept. 2): Here is a link to the article.

This site is published by the Business Technology Office of McKinsey & Company. It offers perspectives and points of view on topical business technology issues of interest to executives. Opinions are those of the authors and are not drawn from confidential client information.

Comment [9]

  • I read the survey results in September when they were published and noticed that overall the trends from the past two years were continuing. I was surprised when my boss recently received McKinsey on Business Technology where the same article is repeated in its entirety but with an addition table (table 3) about which technologies deliver the greatest benefits. The information in that table presents a striking contrast to the interpretation one makes from reading the article from September (which has not been updated on your site), notably while blogs are listed second in terms of use, they are listed 11th at 3% in terms of benefit, and wikis are in second place with 18%. This new table should have been made available to all, especially those of tasked with making recommendations to our company about using these technologies.

    Still, I’d like you to clarify the data in this new table three since neither the description of the table nor the accompanying paragraph are clear.

    The table caption says : “Difference in use of tool between respondents who reported benefits compared to with (sic) those who reported no benefits, %”.

    When a technology like Wiki gets 18%, what does this mean?

    Posted Nov 20, 08:56 AM by Bart Schutte

  • Web 2.0 is here to stay, and I strongly believe that the innovators who experiment with the various tools available will benefit in comparison with their competitors.

    Two factors seem apparent: – Web 2.0 will enable companies, especially small companies to leverage expertise, broadcast in a highly cost effective manner, and contribute to the formation of Customer Communities who are passionate about the benefits of the Offering. Enabling low cost customer intimacy.

    - Failure to employ appropriate Web 2.0 tools will increase the cost of business for companies who begin to loose customer intimacy to those firms who use it. To increase their competitiveness they will have to increase their efforts in traditional promotional aspects of the marketing mix, at a time when more traditional promotional approaches are loosing their effectiveness.

    The best advice I can offer to business leaders is “get with it,” embrace Web 2.0, and make certain your people understand you support their efforts in exploring and adopting appropriate tools.

    Posted Oct 24, 11:51 AM by Eric Elison

  • Your Web 2.0 report was enlightening as far as it went. However, it completely ignores the IT security risks Web 2.0 creates.

    Furthermore, traditional IT security products do not mitigate these risks. If we are going to deploy Web 2.0 technology, then we need to upgrade our security to, dare I say, “IT Security 2.0.”

    I would even go so far as to say that IT Security 2.0 enables Web 2.0.

    If I may, here is a link to my web site with a more detailed discussion: http://www.riskpundit.com/riskpundit/2009/09/if-web-20-then-it-security-20.html

    Posted Sep 10, 01:53 PM by Bill Frank

  • Rather than just looking at numbers & percentages, it would be more useful if we get to know interesting and diverse case studies of the use of web 2.0 strategies by different companies. Visible use of web 2.0 strategies by mainstream companies still seems more esoteric than a norm.

    Aryan
    <a title=“Bihar Jobs – Jobs in Patna, Muzaffarpur, Bhagalpur, Gaya, Darbhanga, Purnea etc.” href=“http://bihar.niyukti.in/”>Bihar Jobs</a>

    Posted Sep 9, 02:42 PM by Aryan Niyukti

  • It would be great to hear from you on what’s potentially next after we’re well networked, have an ear to our customers, and rich media centric?

    Posted Sep 4, 09:42 AM by Vincent

  • Technology and Small Bussiness application:

    Technology systems are so expensive to implement, that the early adopters are necessaritly the Billion plus dollar companies.

    By the time they have extracted the value from it, the small business is left with the remnants – i.e. a “me too” use – that has less capabilities.

    The economy of scale of having multiple marketing channels and business channels integrate into Web 2.0 channels, allows a larger business to gain exponential effect from Web 2.0.

    Take pay per click. I see large players making click inflation a matter of course in every keyword niche – whether or not they even have a product in that niche! – to price the little guy out, or make it super expensive to be a “playa” in a niche.

    With very few exceptions, like say when Microsft or Apple or first invented and deployed their new technologies, once a technology becomes proprietary to a large Billion plus company, it loses its effectiveness in the lower end of the spectrum.

    The underlying technology – internet, communication, etc – are owned by the large businesses, so smaller business can just merely use applications on top of those platforms.

    Again, with few exceptions, like twitter or social networks that sprang up recently, most technologies – the underlying platforms being in the hands of an oligharchy – have stifled small business, not enabled it.

    Page 4 of your study on Web 2.0 proves this.

    Posted Sep 3, 01:46 PM by larry07601

  • the crux of the matter lies in the fact that whenever deploying any new tech innovation (web2.0 or whatever) be should not get carried away by the fancy technology but the focus should be always on how much it is useful to the end user
    i.e. technology is just an enabler and this thing should be in mind always

    Posted Sep 3, 12:36 AM by ashish aggarwal

  • I’m a bit curious whether this Web 2.0 will threatened the safety of confidential data. Some of information that the company send through Web 2.0 might be very confidential, so the company will have another threat if they send it through Web 2.0, no matter it is way much cheaper, and effectives. Other competitors will take an advantages from it.

    Posted Sep 2, 10:54 PM by Adit

  • It’s great to see McKinsey & Co. weighing in on this topic. As an enterprise community platform provider, we are seeing firsthand here at cubeless the great benefits companies, especially those with a global footprint, can realize by embracing the concepts.

    Many companies, however, remain frozen in place by misconceptions about employee communities and the problems being solved (more importantly, the opportunities being pursued). Articles like this help to validate the concept of a business-oriented Web 2.0 in the eyes of corporate community stakeholders and decision-makers. Thanks!

    Posted Sep 2, 06:22 PM by Tony Brice

 
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