Web 2.0 in business!

The latest statistics from 2006 showed that Web2.0 is being broadly and rapidly brought into enterprises. One of six prominent Web 2.0 tools - blogs, wikis, podcasts, RSS, social networking, and content tagging - were adopted at least by 89% of the CIOs and a remarkable 35% said they were already using all six of the tools.

Tomorrow, McKinsey will release the results of a broader survey of Web 2.0 adoption, and the results are quite different. In January 2007, McKinsey surveyed some 2,800 executives - not just CIOs - from around the world. It found strong interest in many Web 2.0 technologies but much less widespread adoption. McKinsey also looked at six tools. While it didn’t include tagging, it did include mashups; the other five were the same. It found that social networking was actually the most popular tool, with 19% of companies having invested in it, followed by podcasts (17%), blogs (16%), RSS (14%), wikis (13%), and mashups (4%). When you add in companies planning to invest in the tools, the percentages are as follows: social networking (37%), RSS (35%), podcasts (35%), wikis (33%), blogs (32%), and mashups (21%).

Web 2.0 didn’t get through North American companies faster than companies in other countries, according to McKinsey. Investments in blogs and RSS by North American firms were more than investments in social networks and wikis, in the contrary of other countries. Perhaps the most surprising finding coming out of the McKinsey survey was that American companies are not poised to be the leaders in embracing Web 2.0 in coming years. If anything, they’re looking like laggards. Leading the way are Indian firms, 80% of which plan to increase their investments in Web 2.0 over the next three years, compared with 69% of Asia-Pacific firms, 65% of European firms, 64% of Chinese firms, 64% of North American firms, and 62% of Latin American firms.

In another sign of what the future holds for Web 2.0 in business, the Forrester survey found a clear preference among CIOs for buying a full suite of Web 2.0 tools from a large, established vendor. 74% of CIOs said they’d be more interested in investing in Web 2.0 if all the tools were offered as a suite, and 71% said they’d prefer the tools to be “offered by a major incumbent vendor like Microsoft or IBM [rather than] smaller specialist firms like Socialtext, NewsGator, MindTouch, and others.” Web 2.0 startups hoping to make inroads in the enterprise market, even among mid-sized firms, will continue to face big challenges, particularly as the larger vendors release their own suites of tools or incorporate them into existing products. You can bypass the CIO on a small scale, but it’s difficult to bypass the CIO when it comes time for a company to standardize on a particular product and vendor.