The decision two weeks ago by Yahoo! to support the burgeoning openid initiative, where users choose their preferred user account provider for logging into other Web sites, was a defining moment for the increasingly popular effort to bring order and sanity to the often confusing world of user identity on the Web. This major move by Yahoo! underscores how new models for user identity and security are becoming strategically important in the online world, and it also has long-term implications for the enterprise, as we’ll see.

Enterprises will be able to manage the growing problem of the proliferation of accounts created in external, off premises Web apps.There’s no doubt that Yahoo!’s addition of over 250 million accessible user accounts to openid, which can now be used to log into the thousands of openid-compliant Web sites, is a significant win for an initiative that is starting to reach critical mass. My own tests show that Yahoo!’s support for only the newer, more secure specification of openid greatly limits the number of external Web sites you can actually access with your Yahoo! account, however this issue will surely be resolved as more 3rd party sites adopt the new spec.

More interestingly, Yahoo! at this time does yet not allow 3rd party issued openids to be used to access its own Web properties. Why is this vital? Because it will fundamentally limit the usefulness of open Web identity, and openid; what’s the point of having an identity from your preferred provider — or as we’ll see below, from your workplace — if you can’t use it where you want to? This one way adoption of open Web identity is common among the major adopters in the space so far.

Provider-only support of open Web identity is going to be a major challenge for the movement until someone articulates the value proposition for allowing 3rd party authentication of accounts from other Web sites. Read Dare Obasanjo’s reasoning around this in the second half of this post.

Other major Web firms and software companies have been pursuing the grail of open — or mostly-open — Web identity for several years now, including most notably Microsoft and Google. Josh Catone over at Read/Write Web wrote yesterday about Microsoft’s stated intent to join the openid bandwagon, which will likely push the number of openid accounts well past half a billion, regardless of what happens with Microsoft’s acquisition play for Yahoo! This kind of scale of support will put open identity, and specifically openid, on the map and hopefully simplify and empower Web users around the world.

Open identity does push users into considering their Terms of Service of their provider much more carefully, since the’re making a long-term strategic decision with whom they’ll will invest with their Web identity, and whether they offer a good home for what may be their last new Web account ever. A quick examination of Microsoft’s Live ID (the open Web identity formerly known as Passport) shows how Microsoft has had to remake their service to be more open and friendly to users and businesses that support it. Expect that many of today’s identity providers will begin making their offerings more appealing for those shopping for their new Web super-identity. This will likely include, as we see, some enterprises.

What’s so important about open Web identity and how does it affect enterprise identity?

Well for one, when using openid sites that allow 3rd party identities, users need only Read the rest of this entry »

The worlds of SOA, SaaS, and Web 2.0 have been swirling around each other for a couple of years now and in 2008 we’ll finally see these gel into a practical, modern vision of next generation enterprises. And a variety of forces are coming together to make 2008 the year that enterprises refit themselves for the 21st century.

The driving forces for change this year will be the aging of existing IT systems, the rise of up-and-coming new approaches such as highly capable new Web-based applications, mashups, collective intelligence powered business software, Web-oriented architectures, and last but certainly not least, social software. These are providing the raw materials to use upon the freshly cleared canvases many organizations are readying for themselves as many organizations begin to retool and upgrade. Even the IT foundations we’ve come to get so used to, such as the operating systems we’ve used for years, have recently evolved and not always in the direction we’re going. If nothing else, the ever-advancing computing environments of the workplace and the Web are encouraging us to move to newer and better models out of sheer momentum.

But the changes we’ll see happening in our organizations won’t just be ones that are imposed by necessity, many of them will be driven from the bottom up as we see more and more grassroots IT solutions sprouting up from the trenches of Web-savvy workers, while many existing initiatives, including traditional SOA efforts, intranets and portals, CRM, decision management, and many others get recast and sometimes entirely reinvented using the lessons we’ve learned from the Web 2.0 era over the last two years, with the leading factors being the large scale shift of control to users, lightweight new application types proven in efficacy and scale on the Web, and social computing with Web technologies.

1. SOA finally goes pragmatic, Web-oriented, and lightweight. We’ve heard this prediction before but in 2008 it will be one of the items front and center for IT departments for a variety of reasons. Many of the ponderous, heavyweight SOA initiatives still in existence will finally refactor their design principles and then their architectures to be much more lightweight and RESTful. The classic SOA principles will still apply but changes in how they are realized inside organizations will just reach the tipping point in 2008. One key driver is that organizations are increasingly tired of waiting for ROI on their SOA investments and the demand for change is pushing IT leaders to search for new, more effective approaches. Web-orientation has enabled SOA on the greater Web on a vast scale and gained credence for a critical mass of the SOA community.

Read about ongoing story of Web 2.0 and SOA convergence, which will be well under way by the end of 2008.

The bottom line: If a Web service/open API can’t be consumed in the browser, it will find itself relegated to the deep end of the back office, if not retired outright. That’s not to say that the infrastructure for SOAs is getting simplier or that browser consumption is the ultimate litmus test, it’s not. And as we’ll see below, high velocity, large scale governance will be required to get any use out of these new highly distributable models for projecting content and functionality to any point in the enterprise.

Pervasive syndication for enterprise data, particularly with ATOM and sometimes two way, will also be a bright spot this year but will remain a largely emerging story until 2009.

2. Enterprise search will remain broken or highly limited in most organizations. I’ve covered previously the many reasons why search can’t work in the typical enterprise without enormous effort and consequently this won’t be fixed for most organizations this year. However, good enterprise search is necessary to leverage the fast growing and woefully under-leveraged information warehoused in the vast acreages of most enterprise data centers. Workers are still left with literally no choice but to pull their information from the Web or sequentially rummage through various silos to piece together what they need instead of putting a few keywords in an enterprise search engine and scanning the results. The unfortunate news: The penetration of local search engines into enterprise data will only improve a handful of percentage points this year.

3. Security will become a major concern as Web 2.0 apps and SaaS make the edge of enterprises increasingly porous. In 2008 users will self-provision themselves with consumer Web applications across the firewall, more and more business information will be found out in the open in enterprise wikis, workers will spend more time in public social networking sites, and the very pliability of mashup-based applications will make it unclear where data comes from and where it’s going. This will make security around next generation platforms become a Read the rest of this entry »

Over the last year, we have witnessed the continuation of the steady movement of the mostly consumer-driven Web 2.0 phenomenon into the workplace that began as a trickle in 2006. Blogs, wikis, social bookmarking, social networking, end-user mashups, and even prediction markets saw their largest entry yet into businesses and institutions around the world. The platform wars may start to return in 2008 as Web 2.0 ideas taught companies how to turn an open platform into competitive advantage.The more technical side of Web 2.0 also began to see maturity as businesses started to rethink their service-oriented architectures to be more Web-like and the rich Internet application industry added many major new building blocks and platforms that push the envelope in terms of the kinds of interactive experiences the Web is able to deliver.

Last year’s Enterprise Web 2.0 watch phrase of “consumerization of the enterprise” was clearly evident in workplaces large and small this year, yet we also saw significant new shifts in the way we look at online platforms of all kinds to communicate, collaborate, be more productive, and innovate. You may recall that the Web 2.0 mantra of 2004-2006 was often focused on emergent uses of networks to harness collective intelligence and provide next generation user experiences on the Web. And like each successive generation of innovation on the Web and elsewhere, most early attempts to capitalize on these powerful new ideas were relatively unsuccessful, though the success stories (which resulted in half of the top 8 sites in the world at the moment) resulted in both superior products for the Web community to use and useful new techniques we could use to improve our own results.

In 2007, we also witnessed a new pragmatism as the Web 2.0 hype began to die down, the success stories emerged, and the non-so-successful continued to inform the industry with the lessons needed to navigate the rocky shoals of product development on the Web today. We also began to see Enterprise 2.0 make real penetration in business as well as social networking finally get some corporate respect and validation as a functional business tool that can bring tangible benefits to the workplace.

Read here for a recap on what Web 2.0 and Enterprise 2.0 are generally defined as.

2007 was also a year of innovation in the mobile Web space. The iPhone proved that mobile Web devices were still capable of near quantum leaps in improvement and innovation, Twitter demonstrated what was possible in the realm of truly network-oriented social software on mobile devices, and Google dramatically improved their mobile Web applications with innovative capabilities throughout the year, particularly with Google Maps Mobile. However, while the iPhone isn’t quite ready for enterprise use yet (though it will likely get their soon), both Twitter and Google Maps Mobile have become poster children for mobile consumer apps that have had successful cross-over to the business world as enormously useful tools in day to day work.

But a contrarian might say Read the rest of this entry »

According to a random poll I recently conducted on Facebook, just over a quarter of 300 respondents — 27% of them in all — answered in the affirmative that they are provided with an easy way at work to post on a blog or put information on a wiki. I often ask this same question to gatherings of people whenever I get the chance these days and have been getting roughly the same answer for the last few months. Businesses are apparently starting to take Web 2.0 for a more serious spin.

Blogs and wikis may finally be seeing fairly widespread “business approved” adoption in the workplace.A year ago, accessibility to blogs and wikis in the workplace was less than half this number in my informal sampling. The growth trend seems clear and appears to be increasing. So while this data might be fairly unscientific, I suspect the number is pretty accurate, and social media, aka Enterprise 2.0, is finally making some measurable inroads in the workplace despite a few open concerns about these mediums.

Facebook as a measure of social media in the general workplace?

Of course, Facebook users in general are probably more digitally literate than the average population, will look for blogs and wikis on the local Intranet to use, and thus some say they may be more likely to gravitate to workplaces and jobs that would provide an environment with familiar tools. However, one odd breakdown in the demographics of the poll is that the youngest group, 18-24 year-olds, reported the least access to social media. Perhaps it’s because this group also includes a great deal of students or that entry level workers don’t have as much computer access as workers farther up in the hierarchy.

Poll respondents were also pretty sure when they weren’t being provided with these tools with only 21% reporting that they didn’t know if they were being offered them. A whopping 52%, just over half, said that they had no social media tools offered to them in a way they could access.

The poll question was also carefully posed to uncover if tools were being “brought in the back door” by workers using the hundreds of free social media platforms out in the Web with their browser at work, or if the workplace itself was providing enterprise blogs and wikis. In my opinion, this makes the 27% “yes” number almost surprisingly high. But, while some respondents may not have parsed the question clearly, the trend is strong enough to stand on it’s own:

Blogs and wikis may finally be seeing fairly widespread “business approved” adoption in the workplace.

Getting good business outcomes from social media while managing downside

While blogs and wikis continue to show the potential to greatly improve collaboration, create higher levels of knowledge retention, and generate more reusable business information over time, it’s also probable that Read the rest of this entry »

Yesterday on the Boston waterfront at the Reinventing the Enterprise summit, a lively panel of industry luminaries discussed and debated the topic of the event: How enterprises are dealing with the powerful transformational forces from the Web 2.0 era that are reshaping the workplace today. The issues and concerns around adoption and governance of Enterprise 2.0 was a hot topic.

The panel conversation (pictured right) between Harvard’s Andrew McAfee, creator of the Web 2.0 in business viewpoint he’s famously dubbed Enterprise 2.0, as well as SocialText’s Michael Idinopulos and Forrester’s Rob Koplowitz ranged across the intellectual terrain, highlighting the lessons learned so far as well as uncovered some interesting insights. In particular, one key point that came up from the audience several times was whether we really have to move to entirely new models for IT applications such as blogs and wikis or should we also “Enterprise 2.0 enable” our current IT systems.

More on the Enterprise 2.0 enablement of older application models in a moment, since I do believe that is starting to happen and will likely be a significant adoption path for some organizations and types of applications.

First, some other highlights of the panel:

• Most of us are using the wrong tools. McAfee polled the audience and asked how many of them routinely engage in collaborative authoring. Virtually everyone raised their hands. He then asked, “so how come we are still using sole authoring tools for collaborative work?” He point was that we’re still emailing around word processing documents and spreadsheets when Enterprise 2.0-style collaborative tools exist that do a better job. My personal view is that our software consumption habits are still so ingrained from the last 20 years of the tools we’ve had on our desktops that our migration to better solutions has been slowed. Not to mention that many of these new tools, like Google Docs in my discussion below, are just now getting good enough for serious business use and finally contain enough Enterprise 2.0 ingredients to be a significant improvement
• Worries on misuse. Another issue that came up was whether the globally visible and persistent platforms for self-expression offered by Enterprise 2.0 tools would be misused by employees. One audience member noted that their organization had discovered an employee scalping tickets inappropriately on their internal blog and it gave them some concern. The panel returned that these kinds of activities already happen in the workplace via e-mail or around the water cooler and Enterprise 2.0 platforms just make it more visible and ultimately less riskier, since inappropriate behavior can better be spotted in this platforms. They also noted that blog posts can be “unposted” but e-mails are much harder to unsend. And this is a key point, since McAfee also noted on the panel that worries over inappropriate use of Enterprise 2.0 tools in the workplace is still a major concern by business leaders. It’s that by transforming how an organization thinks about governance by moving it from less central control to more peer control: The business can actually reduce risk overall since public platforms for collaboration allow all employees to see the organization-wide activity of the internal blogosphere and wikisphere, spot inappropriate behavior, and nip it in the bud instead of letting it happen undetected and unaddressed.
• Enterprise 2.0 goes retroviral? An audience member asked whether it might not just make more sense if the increasingly popular blog and wikis models just be one view on top of our pre-existing content. Traditional business productivity documents could then be exposed as wiki pages and opened for network-based editing instead of trapped in silos. E-mail threads could be turned into blogs, making them more visible, putting feeds on them, adding comments, and allowing them to be discovered via search. This might indeed be a useful approach for user uptake and adoption and one that we might indeed see happening more, particularly as Web-based business productivity applications such as Google Docs and Zoho Suite continue to blur the difference between traditional SaaS and Office 2.0. As we’ll see below, they seem to be evolving more into Enterprise 2.0 tools every day.

So it’s this last point that’s worth exploring Read the rest of this entry »

Industry analysts, CIOs, and business leaders around the world are continuing to try to read the industry tea leaves in 2007 when it comes to the subject of Enterprise 2.0, the increasingly popular discussion of using Web 2.0 platforms in the workplace. The primary topic of interest? Whether Enterprise 2.0 brings real bang for the buck by making the daily work of organizations measurably more productive, efficient, and innovative. Investors and executives are just not going to make significant bets on Enterprise 2.0 in terms of resources and risk exposure without good information on the likely returns of implementation.

The increasing pervasiveness of the tools and awareness of Enterprise 2.0 will continue to have a growing impact on our businesses for better and worse.Up until recently, the lack of mature Enterprise 2.0 products, good case studies, and feedback from early experiences that successfully dealt with some of the challenges that these frequently disruptive and occasionally subversive tools introduced. This immature state of affairs was often holding back even corporate pilots of highly promising candidate Enterprise 2.0 technologies such as enterprise blogs, wikis, and even mashups.

However, increasing evidence abounds that Enterprise 2.0 adoption has begun in earnest with a typical example being Wells Fargo taking the plunge, having rolled out Enterprise 2.0 platforms to 160,000 workers. It has become clear that we’re moving out of the early pioneer phase to a broader acceptance phase. From the production side, a brand new analysis indicates that the business social software market will be nearly $1 billion strong this year and over $3.3 billion by 2011. In these and other ways, such as the growing collection of success stories, Enterprise 2.0 has arrived.

The big question for many of those on the fence now is: 1) Do we now have the right capabilities in terms of ready Enterprise 2.0 products? And 2) Do we generally understand how to apply them properly to obtain good returns on our investment in them? Knowing the answers to both questions will almost certainly tell us if we’re ready for mainstream adoption of adoption of Enterprise 2.0 any time soon.

Enterprise 2.0 redux

Professor Andrew McAfee of Harvard Business School famously introduced the term and concepts behind Enterprise 2.0 last year and it’s had a heady ride across the industry and in the press ever since. Initially defined by McAfee as “the use of emergent social software platforms within companies, or between companies and their partners or customers”, the broader global community has attempt to expand, reinvent, and co-opt Enterprise 2.0 with varying degrees of success. But the essential, core meaning has largely stayed the same: Social applications that are optional to use, free of unnecessary structure, highly egalitarian, and support many forms of data.

McAfee even coined a mnemonic to make it easy for everyone to remember what appeared to be the key aspects of these social platforms. Called SLATES, it was an easy checklist to verify that the tools you were considering had the right essential ingredients. Under this initial definition Web 2.0 poster children blogs and wikis were identified as Enterprise 2.0 platforms (provided that they provided reasonable support for SLATES) as well as more sophisticated tools such as prediction markets and even vertical business applications like customer directed taxi cab dispatching were given as early examples of richer Enterprise 2.0 applications.

What platforms failed to make the cut as Enterprise 2.0 because they didn’t have the qualities that were believed to be important for better business outcomes? These included most corporate intranets and portals, most groupware, as well as e-mail and “classic” instant messaging. Why? They either didn’t provide access to a voice for workers to communicate and collaborate with or they didn’t create results that were persistent and globally visible. In the end, Enterprise 2.0 takes most of the potent ideas of Web 2.0, user generated content, peer production, and moves them into the workplace.

Did the original articulation of Enterprise 2.0 have the right Read the rest of this entry »

The promise of remixing existing online services and data into entirely new online applications in a rapid, inexpensive manner, often referred to as mashups, has captured the software industry’s imagination since the release of first major example, HousingMaps.com, in early 2005. Since then, mashups have offered the potential to finally make widespread software reuse a reality, enable SOA initiatives to achieve positive ROI, and radically drive down the cost of application development while satisfying large applications backlogs that plague organizations almost everywhere.

Applying mashups in a business settings is often referred to as “enterprise mashups” and recently we’ve finally begun to see the tools emerging to bring real mashup capabilities to consumers, business users, and IT professionals.

However, though anecdotal evidence seem to abound — there are a good number of stories about businesses creating isolated mashups here and there — and mashups are again getting placed on hot tech trends lists for 2008, we’re clearly still not yet seeing the flood of mashup-based apps inside of organizations despite their consistent and steadfast growth on the consumer Web.

ProgrammableWeb’s mashup graphs (left of page) currently reports that over 2,400 mashup-based apps currently exist.

The public Web of course has been a global laboratory for innovation for 15 years and it’s not surprising that experimentation and creativity in such a large pool of resources of people and services would generate some interesting outcomes like the several thousand mashup applications currently available. But the question has been: Where is the same result inside our organizations? Those same organizations that often desperately need software to solve a business problem for which software simply isn’t available — at least without extensive customization — because the typical business problem’s unique, situational nature. In previous posts I’ve discussed how spreadsheets are often the only end-user development tool available to the average person to meet this need today.

So what exactly is holding back enterprise mashups from becoming a more popular phenomena inside our organizations? This has been in contrast to many other aspects of Web 2.0 inside the enterprise, where openness, network effects, and radical power and simply are often driving extremely fast uptake and adoption of new apps and technologies. By many indications, mashups — particularly in the enterprise — have so far fallen short of their potential and the question is why?

I’ve discussed this with a various people in the mashup community and analyzed a number of the leading mashup platforms and have boiled the outstanding challenges down to Read the rest of this entry »

Mainstream social networks continue to grow at a staggering pace in 2007 as they offer users compelling ways to manage and leverage their relationships with each other online. MySpace and Facebook continue to lead the pack as the two most popular social networking sites but for the first time, it also seems fairly clear that Facebook will soon overtake MySpace in overall usage, particularly as it offers a richer overall platform powered by a large and vibrant community of 3rd party application developers.

The story of Facebook this year has been a particularly fascinating one, with the two most significant milestones being the opening of its social network to the greater online community as well as its underlying platform to anyone with an application concept they’d like to try. Facebook also seems to be the place where many users are naturally gravitating as they seek a more mature and functional social environment beyond MySpace.

Beyond just the consumer space, Facebook also offers many features that the legions of previously faithful LinkedIn users find compelling including significantly better ways to keep in touch with business contacts.

Increasingly, I’ve also begun anecdotally hearing how departments in some large organizations are recommending that employees create Facebook profiles. And this is pointing to the burgeoning trend of businesses learning how to successfully leverage social networking platforms to achieve business goals. For instance, it’s been almost conventional wisdom for a while now that MySpace is one of the quicker and better ways to get a small business online with its ready-made population of engaged users and features that directly support establishing and maintaining relationships with customers.

But Facebook’s open architecture takes this concept to Read the rest of this entry »

A new survey of the personal use of Web 2.0 applications by CIOs emerged late last week and provided another interesting, if high-level, datapoint about the future of Web 2.0 in the enterprise. Carried out by CIO Insight, the survey reported the usual trends like high rates of use of wikis, blogs, and RSS, as well as a few unexpected outliers, like 39% of CIOs listen to podcasts.

More than one large company has discovered that external customer communities provide better support to their own customers.Like most surveys, however, the questions tend to be leading and prevent unpredicted trends emerge naturally. Consequently, the numbers in this survey look somewhat different from the larger, more intention-based results from McKinsey’s global Web 2.0 survey earlier this year.

In terms of current trends, Silicon Valley proper has for the most part become thoroughly bored with the Web 2.0 meme despite the largely superficial presence of the most powerful Web 2.0 concepts in many online products and services.

At the same time, mainstream business is just now getting ready for Web 2.0 adoption and are beginning to incorporate the underlying technologies, platforms, and concepts into their IT departments and lines of business, though they too are often focusing on the low hanging fruit. But pilot projects now abound in businesses large and small around the world and even some concerted large-scale Web 2.0 projects and Enterprise 2.0 rollouts are under way in leading-edge organizations. Business and IT leaders on the sidelines continue to seek early results and evidence of what works and what doesn’t when it comes to applying Web 2.0 to their respective situations.

Surveys do help paint a picture of what’s taking place in the large marketplace and, judiciously used, can help us make better decisions. Unfortunately, most of the current crop of Web 2.0 surveys appear to be focused on specific technologies and applications of Web 2.0 instead of the deeper and more disruptive business models and approaches.

For example, crowdsourcing is just one example of how to use the fundamental power of the global Web to change the size, scope, and even the very nature of an organization’s productive output. Yet crowdsourcing hasn’t made the cut in any of the Web 2.0 surveys I’ve come across so far despite its proven game-changing potential.

A fairly well known story, crowdsourcing in the large in its earliest form has already shown that it can disrupt an entire, established industry. I’m talking about the rise of open source software, one of the early and effective proofs that crowdsourcing could be applied to a tricky business problem — creating competitive software cheaply by using virtually free labor capacity on the Internet — resulted in a nearly unending stream of high-quality, innovative products in the form of application software, databases, and even entire operating systems.

The crowdsourcing link above takes you to Wikipedia and will list many innovative examples of how organizations are taking it beyond software creation and enabling large communities of people on the Internet to generate outcomes that are often impossible in any other way. This is one of the more dramatic and powerfully business models that Web 2.0 makes possible when one tries to harness collective intelligence, one of the core ideas of Web 2.0 and probably the one most rife with long term implications for business and society. Yet only the McKinsey survey above cited this prospect in any recognizable way in its survey.

The point I’m making here is that Read the rest of this entry »

For well over a year now we’ve seen reports and announcements from a major industry analyst firms and others tracking the movement of Web 2.0 ideas into the enterprise. Gartner, Forrester, McKinsey, and many others have all weighed in on the trends or made recommendations, sometimes cautious and sometimes optimistic, that organizations should start heading down the Web 2.0 path. And public interest in Web 2.0 in the enterprise is widespread too, not in the least exemplified by the fact that Web 2.0 trends of all kinds — business and consumer both — are tracked closely here in many blogs on ZDNet.

This reflects the fact that the majority of productive power is on the edge of our networks and always has been.We’ve also seen that the term itself has moved from passing familiarity in the leading edge of the technical community to nearly universal recognition in both IT and mainstream business circles. That Web 2.0 is a complex topic there is little doubt since it’s often described as a grab bag category of the latest ideas and movements that include — but are by no means limited to– wikis, blogs, RSS, podcasting, content tagging, mashups, and social networking.

The big question? What do you really need to know today about Web 2.0 in the enterprise?

Reducing all of these ideas into an underlying set of principles is what people like Tim O’Reilly have been doing for several years now. It’s generally understood by most people that the Internet has changed considerably in the last half-decade and that those changes have reached a tipping point that’s enabling brand new business models, unleashing a wave of innovative products, influencing public behavior on a large scale, and in particular, resulting in entirely new types of online businesses. But as I discussed in last year’s discussion on Web 2.0 reductionism, trying to get at the core motive force behind things as disparate as rich user experiences and collective intelligence is no small task.

Fortunately, we are indeed as an industry starting to get a handle on how all the pieces of Web 2.0 fit together. For instance, it’s now clear that having hundreds of millions of people globally connected together pervasively via one single high speed two-way network (aka the Internet) will result in many of the things we’re now seeing in the marketplace. It seems a fundamental new widespread focus on leveraging that two-way aspect of the network deeply in our online products, as well as increasingly playing to the fundamental strengths of the network that is the Web, is teaching us invaluable lesson after invaluable new lesson for our businesses. The result is that the living laboratory of the Web is now the source of the greater part of our innovation in business these days. Today’s World Wide Web is a larger ecosystem and with far more brainpower and activity that any single organization could ever hope to match.

Web 2.0 Transforms The Business Landscape

The story of Web 2.0 began with things like open source software, which is nothing more than entire products created ad hoc by volunteer armies of contributors that now outnumber — by virtue of the sheer capacity the network — the world of commercial software efforts. It’s not lost on careful watchers that open source software tends to be more feature rich, secure, and bug free that commercial software, despite being created by thousands of loosely coupled, self-selected contributors. Since then, this idea of commons-based peer production of products on the global Internet has spread through just about every other type of product that can be delivered over the Web from marketing, advertising, collaboration, news, customer service to banking, investment, fund raising, disaster management, and dozens of other types of business and civic activities. This reflects the fact that the majority of productive power is on the edge of our networks and always has been. We’ve tinkered for a couple of decades to build good networked software that took advantage of this fact but we didn’t yet have enough knowledge of the best techniques for creating them. That things like peer production are now moving to the center of the design of online products finally shows a maturing realization that our older, more traditional views of networked applications were just not effective as they could be.

Combine the rise of peer production with the Web growing up into a true software platform as part of the rise of rich user experiences and SaaS. Then witness the movement of the Web out into the world in the last few years and exploding into thousands of types of new Internet devices, mobile and otherwise, that deliver — and just as importantly if not more — capture value in every corner of the globe and in every conceivable setting.

An overarching and compelling new business vision

And while there more trends beyond these that are driving Web 2.0, the upshot is that the productive capacity of the world is increasingly wired into the Web and can be leveraged by building online products that encourage the close cooperation and involvement of those at the edge of the network. You can get now people on the Web en masse to build innovative software applications or help you accumulate vast and almost infinitely rich databases of information and even foster enormous online populations for which you are the preferred intermediary and of which you can tap the combined intelligence.

It’s this more comprehensive and integrated vision of Web 2.0 and its ingredients consisting of Read the rest of this entry »