McKinsey: How businesses are using Web 2.0 – one year later

6 Aug 2008 (Wed)

ONLY 21 PERCENT OF the executives surveyed by McKinsey this year (2008) said they are satisfied overall with Web 2.0 tools, while 22 percent voiced clear dissatisfaction. By contrast, over half the executives surveyed by McKinsey last year (2007) said they were pleased with the results of their investments in Internet technologies over the past five years, while a mere 13 percent say they are disappointed with previous investments.

The reason? McKinsey’s findings suggest that companies are coming to understand the difficulty of realizing some of Web 2.0’s benefits. “However, fundamental changes are beginning to take place among the satisfied companies… [They] are not only using more technologies but also leveraging them to change management practices and organizational structures. Some are taking steps to open their corporate “ecosystems” by encouraging customers to join them in developing products and by using new tools to tap distributed knowledge.”

Mix of technologies used is changing: Blogs, RSS, wikis, and podcasts are becoming more common, perhaps because companies have a greater understanding of their value for business (Exhibit 1).

A Changing Mix of Web 2.0 tools

More technologies are in use: Overall, the respondents say that their companies are using 3.4 technologies from an expanded list, versus 2.2 in 2007. Companies use Web 2.0 technologies more frequently for internal than for external purposes, and the rate of deployment remains high for almost all kinds of uses (Exhibit 2).

Web services remains highest used: Respondents rate Web services (software that makes it easier to exchange information and conduct transactions) as the most important tool, with Europeans providing the highest marks. Companies in all regions perceive wikis and blogs as fairly important, and the use of both tools has increased over the past year.

Satisfaction varies markedly by geography: The developed countries of the Asia-Pacific region had the largest percentage of respondents expressing the highest level of overall satisfaction with Web 2.0 tools, and Latin America had the lowest (Exhibit 4).

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Posted by J.K. in Business, Marketing, News, Social Media | View Comments |

The biggest ethical issues in Social Media today

1 Aug 2008 (Fri)

SOCIAL MEDIA CLUB posted a great recap on the feedback it received via its blog and Twitter account. Among the ethical issues in Social Media raised were:

  • Privacy & Reputation: The digital reputation of people, especially those who have not opted in to that discussion (or “Conversation”). (Vijay Goel, M.D.)
  • Truth & honesty: Firms who misrepresent themselves online, pretending to be a “user” (1) Gaming the SEO system to gain rank, (2) underhanded manipulation of product reviews and comments, (3) the accumulation of friends (and social groups) with the intention of monetizing them OR for promotion of business, political or personal agenda. (Albert Maruggi, SeLiNa and wayzgoose)
  • Truth & honesty: Blurring of lines between “edit” and “advertising. (tmarklein)
  • Security: Identity theft. (LewisG)
  • Safety: Protecting children who widely use social media in ways many parents don’t know how to protect. (runnerkik)
  • Spammers! (NancyMarmolejo)

Chris Heuer asked a good question: “How do we give bad actors in the ecosystem (exploitative, manipulative, dishonest, rude, etc…) a bad reputation that is more visible for others to know who to take seriously and who to ignore?”

Still, how indeed? Could such a penalty system (if developed and available) backfire and end up penalising the powerless and inept instead?

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Posted by J.K. in *Roundups, Problems, Social Media | View Comments |

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