Web 2.0: what it is and how can it help small businesses?
Everyone is talking about Web 2.0, but the curious thing is, there is no standard as to what it means, implies or requires. The reality is that Web 2.0 means different things to different people.
Wikipedia, the popular online encyclopaedia, defines Web 2.0 as a perceived second generation of Web-based communities and host servers - such as social networking sites, wikis etc., - that facilitate collaboration and sharing between users.
Ironically, Wikipedia is a classic example of a Web 2.0 application: Internet users contribute to and constantly review and edit the content of the encyclopaedia.
The best description of Web 2.0 sites is that they feature active participation by other Internet users and a rich user interface, allowing users to create, collaborate and share information on a real- time basis, so creating a virtual community.
For the technically-aware, most Web 2.0 sites have one or more of the following three components:
- Rich Internet applications - Web-based applications that run in a Web browser and do not require users to install software, but stillhave the features of traditional applications. A classic example of this is the Philips consumer products site
- Open source software - software that permits users to study, change and improve the software and to redistribute it in modified form. An example of this is the Ruby on Rails site
- A service-orientated architecture - resources on a network made available as independent services that can be accessed without knowledge of their underlying platform implementation. Examples and explanations of SOA-based Web sites can be found here
I understand so far, but what can Web 2.0 offer my business?
In a word: communication. Web 2.0 sites such as Facebook, MySpace and others offer businesses easy access to their customers (business-to-consumer) and other firms (business-to-business).
Customers can provide easy feedback about your products and services, and your firm can provide those customers with free or discounted trials, extra services and the like, so creating a warm feeling amongst your customers who, let's face it, like to feel wanted.
On the B2B front, meanwhile, Facebook, Myspace and other social networking sites (as this class of Web 2.0 portals are known) give you and your staff ready access to like-minded individuals in other companies who, like you, are exploring new communication channels.
For example, as a member of Facebook, I belong to a number of business and IT writing groups on the social networking site. If anyone needs a product or service they are not familiar with, they post a question.
Everyone mucks in and provides answers to the best of their ability. The advice and referencing is free, and is usually of high quality.
Facebook and MySpace also feature user-coded Web 2.0 applications that other users can join and run on the social networking site servers.
For example, one of my writing groups provides a copyright-free photo-sharing service using an application, allowing me to upload my photos for pooled use amongst industry colleagues and vice versa. If I need a photo in a hurry, I look here first.
But this is only scratching the surface of Web 2.0 sites. In India, where many Internet users don't have a PC at home, a growing number of sites offer pooled word processing, spreadsheet and similar office applications on a rentware basis.
Users pay a small fee each month and the server allows them to run applications on a remote basis, It also stores their files remotely too. This allows users to have a `home PC' from anywhere there is an Internet connection.
The concept is one that Google exploits with its growing range of office applications, known as Google Docs. In use, Google Docs allows any Internet user free access to a Web-based word processor and spreadsheet environment.
This facility can be useful if your company employs staff who work from home, as well as the office, and don't want to lug a laptop to and fro. All they need is a Web browser and an Internet connection.
And this is where it gets interesting, as a growing number of smartphones and PDAs now support mobile Web browsing, meaning that staff can remain reasonably productive whilst on the move.
This is Web 2.0 technology at its best. It can - and does - make staff more productive. This is why firms as diverse as British Airways, Fedex and General Motors are adopting Web 2.0-based desktop environments.
But it doesn't stop there. Web 2.0 technology also allows Internet users to increase their level of collaboration significantly between employees, customers and suppliers on the communications, marketing and business applications fronts.
On the communications front, Web 2.0 allows both internal and external communications to be improved.
Most business experts agree that the power of information shifts from owners to both management and employees. Email is the most obvious form of communication, but most users are swamped. Web 2.0 technology allows users to communicate more effectively and on a structured basis, using whiteboards, application sharing and so on.
Enhanced communication with clients and customers also provide better information and feedback (via blogs or wikis) that can be used by company staff to improve product or service development.
Web 2.0 applications can also be used to build business contacts and networks throughout the world. Linkedin.com is a classic example and has been designed to allow users to track down contacts. New contacts are made by using known contacts and having them vouch for other users.
On the marketing front, Web 2.0 technology allows better marketing via services such as podcasts or blogs to get the company message across, usually within a social networking site (e.g. Facebook) environment. A good example of this is Dell Computer, a case study for which can be found here
Using social networking sites, firms can customise the environment they present to customers, allowing them, for example, to obtain fedeback and viewpoints directly from customers. Using this approach they can keep up-to-date on consumer responses, often on a real-time basis, and change their marketing accordingly.
On the business applications front, users can enjoy an information-rich environment, allowing decisions to be made more quickly and easily using information feed facilities such as RSS (Really Simple syndication) and the like.
So what are the downsides?
It's not all rosy on the Web 2.0 front. There are a number of business and security risks, mainly stemming from the fact that sharing data and information with third parties increases the risk of copyright infringement, hacker attacks and other security risks relating to online applications.
There is also the risk that decisions can be made based on potentially inaccurate information.
Despite what many experts suggest, the IT security risks of using Web 2.0 sites and services are relatively low, given the fact that most Net users have good IT security applications installed on their systems, servers and desktop PCs.
The real risk lies in information leakage, which can occur both knowingly (albeit inadvertently) and unknowingly (malicious malware and/or online applications).
The good news is that, for most businesses - no matter how small - the advantages of Web 2.0 systems and services considerably outweigh the disadvantages.
It's interesting to note that, as any new technology has arrived in the workspace - e.g. the telephone, fax machine and yes, even the desktop PC - there have been doomsayers amongst the supporters.
It's very easy to get carried away with Web 2.0 and Internet technologies in general, with managers losing sight of the fact that the technology is actually just a single - albeit powerful - business tool.
Like the calculator, however, Web 2.0 services have the capability to significantly change the workspace for the better, and dramatically improving business efficiency and cost-effectiveness.
For further details, why not read the following guides:
