With a new dimension of the web, the new tool is still a buzz to everyone Participating in the Web 2.0 will reap profits from it, so better take your chances.
A world’s new child is born. Ways of being online have changed. There is a number of reasoning as to why a CEO should attend to the Web 2.0 development. But the top priority in the CEOs list would be its financial revenue-intake. Based on our studies that we have done, there were recent financial success of companies who made use of the Web 2.0 technologies to stretch out to their consumers in an effective manner. An example would be Amazon.com. Moreover, it has the ability to drive genuine business value too. CEOs would also want to save time and cost on communicating with their clients. The Web 2.0 is a great way of networking with other users as well.
Authors: Shachin Singh, Frank Apfelbacher, Stephan Ballweg
Losing The Race In The Web 2.0 Development
In fact, some who had attended talks on the Web 2.0 says that CEOs would be needing the use of Web 2.0 tools and will be relying on it for future use so as to keep up with the ever-changing market. CEOs will have to move from a reactive web to a proactive web in the years to come. But that’s not all. With new innovation being created each day, something new will be out in the future. It’s still not too late to join in the race!
Companies Collaborating With Web 2.0
With globalization happening in recent years, companies should be focusing their business with the Web 2.0 tools as it keeps up with the pace of the ever changing environment. To be more realistic, the Web 2.0 aids companies in attaining consumers in a more affordable and effective method, which is through Web 2.0 online tools. Based on the results from Mckinsey’s Global Survey, most companies showed a widespread interest in the improvised technology. Those that were being surveyed expressed satisfaction with their internet investment. Most of them placed great importance on technologies that enables automation and networking.
Studies shown on Mckinsey’s Global Survey, more than half the executives of different companies that were surveyed were pleased with the results of their investment in internet technologies. As extracted from the article, three-quarters of their companies plan to maintain or increase its investment in Web 2.0 technologies.They also describe that with the usage of Web 2.0, its capabilities to communicate with their customers encourages its collaboration with them effectively. Not only that, it also tightens integration with suppliers, companies that uses Web services and peer-to-peer networking as well.According to Wortgefect.net, many companies (21% worldwide, 33% in =Germany) are afraid of security lacks and data lost or theft by using Web 2.0 application. With this new technology, using the Web 2.0 gives the company an advantage over another company who does not uses the Web 2.0.
Importance of Web 2.0 to companies and the economy?
First and foremost, with the new development of Web 2.0, it makes it effective and efficient for companies to communicate with thier consumers. It makes it easier for marketers to reach their consumers as well as businesses through online webs. By reaching out to their consumers and other businesses through online webs, it reduces its expenditure and saves cost on it. Furthermore, it brings in higher revenue for the providing company as well. It gives them the ability to decide on how they prefer to do thier business online so that the providing company is able target it market audience. Vice-versa, consumers would be left with better, contextually releveant, content rich search and advertising on online webs. After scaling down in-depth, the Web 2.0 is important to companies as it is a critical component of the strategy and infrastructure to every successful organization today. Not only that, its also important to the economy as it redefines the market and creates an entire new opportunities. This will help achieve market domination as well.
Success stories within the Web 2.0
There are many successful stories within the Web 2.0, but this texts shows the probably most known samples.
Wikipedia is a very good example for Web 2.0. More than 10.000 people write articles, complete unfinished texts, improve existing articles or contribute their information to the community in discussions. Wikipedia was founded in 2001, short after the burst of the new economy bubble. In the year 2004 it started to grow very rapidly and today more than 9.5 % of all internet user visit Wikipedia every day. The German version grows by 500 articles every day and the sum of all articles is more than 5 million.
Flickr.com. Here you can upload your photos and share them with other people. You can find all sorts of photos; even well-established news agencies start to use pictures from Flickr. It was established in February 2004. Its daily reach, that means people who visit Flickr every day, rose from 0.5% in 2005 to 1.8% at the end of 2007. Now there are more than 6 million people registered and more than 500 million photos online. Flickr was bought by Yahoo in 2005 for a estimated price of about 50 million €.
YouTube is maybe the most impressive example. You can upload your videos to YouTube and share them with other people and discuss or talk about the content. There is a hit counter for every video, so the community votes their most famous videos. YouTube is online since December 2005, but hardly a year later it was bought over by Google for approximately $1.65 billion. In 2006 more than 100 million videos were downloaded from YouTube every day. It is still growing very rapidly, from 0.5% in December 2005 to now more than 20% of daily reach. Even the original TV broadcasters fear the influence of YouTube, because through YouTube viewing habits change.
- Success Stories; Spiegel online
- Traffic development of Wikipedia
- Creating real business value with Web 2.0
Risks of not attending to Web 2.0
Web 2.0 has developed itself to a huge market which is still growing very fast. Many of the Web 2.0 companies were bought by other companies, for example Google bought MySpace for $900 million, YouTube for $1.65 billion and one of the recent deals was the acquisition of the big online advertisement company DoubleClick for $3.1 billion. And now Google is one of the richest companies and earning even more money, as Web 2.0 is still growing. In 2006 more than $24 billion were spent for advertising in the online business. Experts say, that in 2008 more than $43 billion will be spend on online advertisement. As you can see, there are many opportunities for companies with the Web 2.0, but if they wait to long till they join the Web 2.0 business it could be too late. It is said that the marketplaces of tomorrow will be inside these communities.It’s hard to predcit how long and fast this market keeps on growing at that rate.The power of the community should not be underestimated because,for example, Cadbury had stopped selling the Wispa candy bar, but after a protest of more than 14,000 Facebook users, Cadbury now continues to sell it. Here you can see that if a company does not attend to Web 2.0 and in particular to the social communities, major problems can arise. The recent trend is that communities like Facebook are used to focus user protests on decisions which the single person disagree with. Companies must read very carefully what is written about them.
Growth of Web 2.0
Web 2.0 websites are the fastest growing category on the Web. They doubled their traffic growth over the last few years. Especially social networking sites grew extreme fast, for example Feedburner (385%), Digg.com (286%), MySpace (170%), Wikipedia (161%), and Facebook (134%).The Web 2.0 users, people who make social sites part of their daily life, was believed to be accounted between 15% to 20% of today’s population.Wikipedia is now the leader when it comes to educational reference Web sites, with more than 26% market share of visits for a category of 3,272 sites. To illustrate these figures you can say: one visit on Encarta – 3400 on Wikipedia. But there are also Web 2.0 sites that diminished over the recent years, for example Friendster grew very fast in the first half of the year 2007, but is now losing more and more attention. But not in the Asian countries yet. It’s still a famous website there.
Below you can see a graph of the daily reach of MySpace. It’s a very good example for the growth of Web 2.0 websites. It all started in the mid of 2005 and since then, it is still growing. For MySpace you can say that it grew from 0.4% at the end of 2005 to now more than 6% daily reach in 2008. Today there are more than 180 million members are registered with MySpace. That’s twice the amount of people living in Germany – all this in only a few years. And MySpace is growing by 200,000 accounts per day.
Daily Reach for MySpace.com from 2004 – 2008
Future of Web 2.0
What the future of Web 2.0 is going to be is not easy to forecast. Experts say that we’re now just at the beginning of seeing mass participation and collaboration in social communities. One of the goals is to make our real life more digital as it is today. So the way that we will logged on the internet could be a different one. Today most of the users go online with the help of their desktops or notebooks, but in a few years, more and more users will use their mobile devices. Mobility will become an important issue in years to come, as for example you get information about shops while walking through the city centre. The Apple iPhone is the first step to a web that makes it easier for mobile users to browse the web. Another important point is Online Video and Internet TV. As mentioned above, YouTube is the most famous example for an online video sharing community . Experts say that in 10 years time, internet TV will be totally different from what it is today. Higher quality pictures, faster streaming with better quality, sharing of all sorts of file types and much more will be available.The Web will become internationally recognized. Today the US is still the major market in the Web. But in the future, countries like India, China and Africa will be the main growth markets.
Different Interpretations Of Second Web
Talking about Web 2.0 requires a description of the term. In fact, there is no exact definition. It is a vague phrase which was firstly named by O’Reilly in a piece about his web-development researches in 2004. In his opinion Web 2.0 is the business revolution in the computer industry due to the moving of Internet to a platform. Having success on that new platform needs understanding Web 2.0 applications and its development. A converse opinion by Dario de Judicibus is that the phrase Web 2.0 should be questioned weather it makes sense to use the term in specialized way as many of the technological components have existed – maybe in another spectrum – for a long time before. Amazon and Ebay have allowed their users to state their reviews, feedbacks and consumer guides since launchs in 1995, in a form of self-publishing.
Furthermore, critical attitudes against the term Web 2.0 named it as a ‘piece of jargon’. Till today, no one really knows what it means. Observers generally considers the term Web 2.0 as an attempt at promoting it rather than an actual endorsement of the ideas behind Web 2.0. Other has included it as a ‘second bubble’, suggesting that too many Web 2.0 companies attempt to develop the same product with lack of business models. Additionally there are several other meanings of experts between the two extreme positions. Some think that Web 2.0 is a knowledge-oriented environment where human interactions generate content that is published, managed and used through network applications in a service-orientated architecture.
However, in common sense Wikipedia.com describes Web 2.0 as a trend in web design and development. It also delineates a perceived second generation of web-based communities and host services today and in future. Especially webblogs, free encyclopaedias, folksonomies and social networks with participation high rate form a new kind of internet. These developments facilitate creativity, collaboration and sharing data among people. There will be great enhancements over read-only website opportunities. Reciprocities between providers and users will be generated in a much more all-embracing way. “Doing it online” becomes more and more popular. A new chapter of internet starts now and the weight of the World Wide Web(www) is bigger than ever before.
Web 2.0’s Enhancements And Improvements
As written above, the expertise beliefs are separated. Justification of “Web 2.0”-term efforts looking for real differences between Web 1.0 and Web 2.0. Hence the question is whether O’Reilly’s conclusion of new kind of internet applies or the described enhancements are “only” part of a new development of the “old” internet – according to Judicibus.
Maybe it is a mixture of them!
Today there are already improved forms of traditional internet. Webblogs, social bookmarking, free encyclopaedias, many-to-many publishing applications (APIs) and other examples show the way internet goes. Therefore, better software which provides rapid innovation is required. Web 2.0 is going to develop itself to a participation and adventure platform, which offers individuals, institutes and companies to improve their images and take part in the new cyber world. This platform needs new technologies and high-quality software that – according to http://www.Wikipedia.org – can be developed by and through sharing applications among several software developers. Putting tasks together accelerates innovation progress, too. Lots of online desktop applications will be introduced. With software like Google Docs or Scrapbook, people are able to alter and work parts of documents or websites without loading it completely new. In contrast, the “old” Web 1.0 was just a distribution and not a sharing tool.
These social components of Web 2.0 are spread over all dimensions of sharing – not only in software developing. Changing to a new kind of internet the way of 1.0 to 2.0 fosters reciprocities on a huge range of usage. It achieves a new economical value as more and more people can work online. The freedom of sharing and re-using generated content shows the participation level and architecture of Web 2.0. Furthermore users will be able to modify the websites they browse to an individual style. Web 1.0 has been much more static in usage.
Need For A Term Like “Web 2.0”
On one hand, there is Judicibus’, on the other, O’Reilly’s interpretation and some others are between. Maybe it is not that important thing to argue whether this or that opinion is the right one. However, using the term Web 2.0 indeed is necessary to describe the development of internet – now and in following years and however your opinion identifies to. Some people may anger about it, but Tim O’Reilly has created a new buzzword with proximate threats and discussions. One can say that discussions about recent internet developments have been named by him. Whether the phrase is essential for today’s talks and researches nobody is able to answer. None the less, it is quite useful to have a word describing the rapid pace of internet evolution.
Reviewers: Tina Hoppe, Melanie Röger, Tjasa Pavli