Insight

5 Posts tagged with the web_2.0 tag

Web 2.0’s Power Curves

Posted by markf Sep 22, 2009

Article from Mckinsey by Jacques Bughin, Director Brussels Office

 

Web 2.0 technologies improve interactions with employees, customers, and suppliers at some companies more than at others. An outside study titled “Power Law of Enterprise 2.0” analyzed data from earlier McKinsey Web 2.0 surveys to gain a better understanding of the factors that contribute most significantly to the successful use of these technologies.


The findings demonstrate that success follows a “power curve distribution”—in other words, a small group of users accounts for the largest portion of the gains. According to our research, the 20 percent of users reporting the greatest satisfaction received 80 percent of the benefits. Drilling a bit deeper, we found that this 20 percent included 68 percent of the companies reporting the highest adoption rates for a range of Web 2.0 tools, 58 percent of the companies where use by employees was most widespread, and 82 percent of the respondents who claimed the highest levels of satisfaction from Web 2.0 use at their companies.

 

To improve our understanding of some underlying factors leading to these companies’ success, we first created an index of Web 2.0 performance, combining the previously mentioned variables: adoption, breadth of employee use, and satisfaction. A score of 100 percent represents the highest performance level possible across the three components. We then analyzed how these scores correlated with three company characteristics: the competitive environment (using industry type as a proxy), company features (the size and location of operations), and the extent to which the company actively managed Web 2.0. These three factors explained two-thirds of the companies’ scores.


Furthermore, while all of the factors are slightly correlated with one another—for example, there are more high-tech companies in the United States than in South America—each factor by itself explains much of why companies achieved their performance scores. Management capabilities ranked highest at 54 percent, meaning that good management is more than half of the battle in ensuring satisfaction with Web 2.0, a high rate of adoption, and widespread use of the tools. The competitive environment explained 28 percent, size and location 17 percent. Parsing these results even further, we found that three aspects of management were particularly critical to superior performance: a lack of internal barriers to Web 2.0, a culture favoring open collaboration (a factor confirmed in the 2009 survey), and early adoption of Web 2.0 technologies. The high-tech and telecom industries had higher scores than manufacturing, while companies with sales of less than $1 billion or those located in the United States were more likely to have relatively high performance scores than larger companies located elsewhere.


While the evidence suggests that focused management improves Web 2.0 performance, there’s still a way to go before users become as satisfied with these technologies as they are with others. The top 20 percent of companies reached a performance score of only 35 percent (the score increased to 44 percent in the 2009 survey). When the same score methodology is applied to technologies that corporations had previously adopted, Web 2.0’s score is below the 57 percent for traditional corporate IT services, such as e-mail, and the 80 percent for mobile-communications services.


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Making Web 2.0 Work

Posted by markf Feb 23, 2009

  The most recent     McKinsey Quarterly Business Journal details     Six Ways to make Web 2.0 work.

 

"Technologies known collectively as Web 2.0 have spread widely among consumers over the past five years. Social-networking Web sites, such as Facebook and MySpace, now attract more than 100 million visitors a month. As the popularity of Web 2.0 has grown, companies have noted the intense consumer engagement and creativity surrounding these technologies. Many organizations, keen to harness Web 2.0 internally, are experimenting with the tools or deploying them on a trial basis......"

 

The Team from McKinsey have provided some thoughtful insights gathered from over 50 firms and organisations over the past two years to show how they have approached the adoption of Web 2.0.

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An independent pan European study has identified that business users are embracing the benefits of 'Web 2.0' technology to improve their productivity and efficiency.
The study highlights the fact that CIO's need to think about the implications for their networking strategy and ensure they are equipped to embrace the opportunities created by social networking.
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Amongst the turmoil surrounding the global financial system we continue to receive strong messages about the value and neccessity of using Web 2.0 and Enterprise 2.0 technologies.

 

A recent article has quoted Giora Hader, the US Federal Aviation Administration's knowledge architect, at a knowledge and business intelligence conference that "agencies must embrace the world of social networking and collaborative technologies or risk losing out on a generation of new workers who are needed to fill gaps left by the upcoming wave of retirements".

 

"The fact is Web 2.0 is here to stay; it's not a fad," Hader said. "It can increase workforce efficiency and effectiveness while improving service -- keep in mind that we are all civil servants."

 

"Hader said younger people need to feel free to ask questions and that discouraging them does not accomplish much. Robinson advocated social networking tools and other such technologies that would allow workers to interact, question each other and learn more about how the agency accomplishes its mission".

 

The full article as reported by Gautham Nagesh from NextGov can be found here.

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Web 2.0 Video Presentation

Posted by markf Feb 13, 2008

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