Web 2.0 - Business Models for the Next Generation of Software

Originally the concept of "Web 2.0" began with a conference brainstorming session between O'Reilly and MediaLive International Web 2.0 conference in 2004. Web 2.0 technology encourages lightweight business models enabled by syndication of contents and services. The technology allows users to do more than just retrieve information on internet. They can build interactive facilities and allowing users to run the software application entirely through browser.

The term "Web 2.0" has clearly taken hold, with more than 9.5 million citations in Google. But there's still a huge amount of disagreement about just what Web 2.0 means, with some people decrying it as a meaningless marketing buzzword, and others accepting it as the new conventional wisdom.

"Back when Google first came on the scene everyone dismissed search as 'Yeah, not much of a business there'. And these guys said no we are going to organise all the world's information.

"Then there was Microsoft wanting to put a computer on everyone's desktop. The titans of industry said 'No, the PC is just a toy'. So I feel we are at one of those inflection points where there are enormous problems to be solved and enormous opportunities."

Mr O'Reilly told the BBC during summit Web 2.0 summit in San Francisco( Nov 5th - 7th-2008 ) "For me, Web 2.0 is about the internet as platform and its power to harness collective intelligence, Areas like the smart power grid, collective action on early disease detection or disaster response, or personalised medicine are all examples of how the principles that drove the consumer internet can be applied in other areas"

Already blogs, wikis, social networks, social bookmarking, news aggregation sites are changing the way customers interact with one another and that demands a change in the way business communicate with their markets.

A company website that is a simply an online product brochure is a wasted opportunity. More progressive companies are using theirs to stimulate discussion and community around their brand, products and services, and are harvesting invaluable customer insight as a result.

But every example shows why it is imperative for enterprise IT departments to reach an understanding of Web 2.0, from both a technical and social perspective. Indeed, the advent of Web 2.0 gives IT a unique opportunity to become more innovative, more creative and a more valuable part of business. By enabling collaboration and fostering community, they can inject major value to the activities of business units as diverse as marketing, customer service and business development.

Coca Cola → The drinks maker's exhaustive use of Web 2.0 keeps its brand in front of young eyes

Best Buy →Electronics retailer has built an exemplary internal social network

Ernst & Young →Facebook-based recruitment program lets the accounting giant keep in touch with the finest graduates

These case studies are proving the Web 2.0 will be the next revolution in the internet world.


Balaji Perumal: Solution Architect