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Cloud Talk

Andre Yee

McKinsey: How Companies Are Leveraging Web 2.0

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New study from McKinsey published last week highlighted how the use of Web 2.0 technologies are benefiting companies worldwide. The report is based on a survey of 1695 executives from companies of varying sizes, industries and geographic location.

Frankly, I didn't find most of the report particularly insightful but there were a few interesting, maybe even surprising points. Here they are in no particular order of importance -

The primary benefits of Web 2.0 in organizations are:
- speed to knowledge (internal benefit) - 68% respondents
- marketing effectiveness (customer facing benefit) - 52% respondents.

Surprisingly, only 14% of respondents actually listed "improving revenue" as a benefit.

Question - will these companies continue to invest in Web 2.0 when the direct impact to revenues are either unmeasurable or almost non-existent? I think so - Web 2.0 is now considered to be mainstream and while the measured impact to revenues seem elusive, it's really considered an enabler to business and a competitive requirement. Even though most companies can't measure mobile phone's direct impact to revenue, few companies question its utility. It's part of doing business.

Another interesting point of note is the types of technologies that are getting the most play. The top three Web 2.0 technologies for customer facing engagements are - blogs (51%), social networks (48%) and video sharing (48%). What's surprising is that video sharing ranked #1 in technologies employed internally - 48%. Does this signal a distinct shift in the way information is communicated where video becomes as prominent as text?

Also surprising - in terms of technologies, mashups lagged behind with only 14% of respondents naming it as a key Web 2.0 technology. Are mashups passe?

The last point is one worth remembering - the most effective way to make Web 2.0 work for your organization is to incorporate it as part of the work flow or work pattern of your employees. Without that, it becomes something to adopt rather than something to use and leverage.

Andre Yee blogs about cloud computing, SaaS, Web 2.0 and other emerging technologies that matter to businesses.

Andre Yee

Andre Yee is an entrepreneur and technologist with nearly 20 years of experience in the business of technology.

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