Government Technology

    Digital Communities
    Industry Members

  • Click sponsor logos for whitepapers, case studies, and best practices.
  • McAfee

Almost 80 Percent of Corporations Believe Web 2.0 Has the Potential to Increase Revenues, Says Economist Intelligence Unit




April 17, 2007 By

Web 2.0 has moved from buzzword to reality in many of the world's largest corporations, according to a survey of 406 senior executives worldwide by the Economist Intelligence Unit. The survey found that 79 percent of respondents see the collaborative web as a way to boost revenues and cut costs. Perhaps the most interesting finding is that a full 85 percent of C-suite executives see the sharing and collaboration aspects of Web 2.0 as an opportunity to increase revenue and/or margins, versus 75 percent of middle management. These findings point to a possible disconnect between the corner office and the rest of the organization on how to best incorporate Web 2.0 practices into business.

The most-cited effect of Web 2.0 -- a collection of Web-based services that emphasize online collaboration and sharing among users -- is to transform the way that companies interact with their customers. The study, which consisted of in-depth interviews with corporate leaders as well as a global survey of senior executives, found that large companies are already using Web 2.0 tools and methods in a variety of ways. So far, companies have focused their Web 2.0 efforts mainly on the creation of online communities that can help with product marketing or product development. In second place is the establishment of blogs or wikis to initiate conversations and share knowledge inside or outside the company.

In the future, companies expect Web 2.0 methods and tools to be the single biggest factor changing the ways their company interacts with customers (according to 68 percent of executives), or on how employees interact with each other and the company (49 percent of survey respondents).

These results form part of Serious business: Web 2.0 goes corporate, a newly released Economist Intelligence Unit report sponsored by FAST. The report examines how Web 2.0 is being applied -- and will be applied in the near future -- by large corporations throughout the world. The report is based on a survey of 406 senior executives -- half from the C-suite -- at large companies throughout the world, as well as interviews with Citigroup, JWT, Global Crossing and other major corporations.

"We were surprised by the level of excitement among big firms concerning the commercial possibilities presented by Web 2.0," said Dan Armstrong, editor of the report. "Our survey respondents and interviewees saw Web 2.0 as an opportunity, not a threat, and were extremely creative in applying the idea of the collaborative network to their own products and processes."

"The Economist study confirms what we've heard from customers and partners -- that collaborative Web 2.0 technologies are becoming more important to organizations," said John M. Lervik, CEO of FAST. "We expect to see a rapid acceleration in the Web 2.0 adoption curve, as business leaders recognize the value of community-sourced information made accessible and actionable via search technology. Perhaps more interestingly, we expect to see Web 2.0 principles take off at the enterprise level, fundamentally changing how organisations innovate and execute."

Other key findings of the report include:

Customers are helping to develop and support products. Nearly 60 percent of the surveyed companies say that they are inviting customers to contribute content that explains, supports, promotes or enhances their products, or that they plan to do so within the coming two years. About half of companies say they are, or are planning to, treat customers as co-developers of products that are in a constant state of improvement.

Ease of acquiring and supporting customers provide the biggest financial benefits. Most companies cited marketing and sales as an area where Web 2.0 could help to increase revenues, primarily through customer acquisition and service. Web 2.0 technologies were seen as a way to reduce costs in the areas of customer support, advertising and public relations, and product/service innovation.

Early adopters are to be found in many countries and industries. Companies based in the US, Germany, China, India and the UK are among


| More

Comments

Add Your Comment

You are solely responsible for the content of your comments. We reserve the right to remove comments that are considered profane, vulgar, obscene, factually inaccurate, off-topic, or considered a personal attack.

In Our Library

White Papers | Exclusives Reports | Webinar Archives | Best Practices and Case Studies
Digital Cities & Counties Survey: Best Practices Quick Reference Guide
This Best Practices Quick Reference Guide is a compilation of examples from the 2013 Digital Cities and Counties Surveys showcasing the innovative ways local governments are using technological tools to respond to the needs of their communities. It is our hope that by calling attention to just a few examples from cities and counties of all sizes, we will encourage further collaboration and spark additional creativity in local government service delivery.
Wireless Reporting Takes Pain (& Wait) out of Voting
In Michigan and Minnesota counties, wireless voting via the AT&T network has brought speed, efficiency and accuracy to elections - another illustration of how mobility and machine-to-machine (M2M) technology help governments to bring superior services and communication to constituents.
Why Would a City Proclaim Their Data “Open by Default?”
The City of Palo Alto, California, a 2013 Center for Digital Government Digital City Survey winner, has officially proclaimed “open” to be the default setting for all city data. Are they courageous or crazy?
View All