WEB 2.0 THE INTERNET IS VERSIONING... 1.0, 2.0

Accountancy SA,  Sep 2007  by Rudman, Riaan J

• E-mail
• Print
• Link

Impact of Web 2.0 on business

Web 2.0 implies an upgrade, a better version of what has been previously available. Similar to Web 1.0 previously, this new incarnation of the net is set to change the way businesses function and how entrepreneurs interact with customers, suppliers and colleagues (Kooser 2007). Web 2.0 is no longer considered to impact on the realm of bored teenagers; major companies such as the General Motors Corporation, Fedex Corporation and British Airways pic inter alia are embracing Web 2.0 (Henrie 2007).

Previously, a user would be confined to a single device or location, with Web 2.0 being a web-based application; other devices such as cellphones, PDAs etcetera, using the same protocols, can interface and run applications, share information on-line using less powerful applications. There has been a shift towards using applications that perform a couple of core features very well, away from using an application with many features of which no-one knows about or uses.

Web 2.0 principles are to increase the level of collaboration significantly between employees, customers and suppliers in the following main areas:

(i) Communications: Internal and external communications can be improved. The power of information shifts from owners to middle management and employees. E-mails have become the most used tool for collaboration, but the list of CCs, forwards and replies can easily be lost. Web 2.0 can assist with more effective collaboration and help to structure the content. Fred Killian, Chief Systems and Technology officer at General Motors

explains that Web 2.0 tools simplify the global exchange of ideas (Henrie 2007).

Enhanced communication with clients will also provide more information and feedback (via blogs or wikis) to be used in product development, thus lowering support costs if this client feedback and recommendations are incorporated into the products. Peer-to-peer networking can be used to identify sales leads and business partners.

Web 2.0 applications could also be used to build business contacts and networks throughout the world. Linkedin.com is one such site, which is designed to allow users to track down contacts. New contacts are made by using known contacts and having them vouch for other users.

(ii) Marketing: Web-users have come to expect a level of interactivity and customisation in the sites they visit Social networking and web widgets (a program that can be embedded into a site) is a way in which this can be added. The rich users interface will allow companies to use inexpensive devices such as podcasts or blogs to conduct marketing and promotional activities.

Users can customise the sites they visit, designing products, and companies can obtain the view of the mass consumer, thereby making faster decisions by keeping up-to-date in real-time with trends or perceived trends and modifying marketing activities accordingly. It will result in new devices, new markets and growth in market share.

(iii) Business applications: In an information-rich environment, decisions would be made faster and easier using Really Simple Syndication (RSS) services such as Newsvlne.com to source information from various sites at one location.