Web 2.0 finds its payday by @McKQuarterly

I’ve commented on the McKinsey Web 2.0 surveys in an earlier blog post. McKinsey just published the outcome of this year’s research, comparing internally networked, externally networked and fully networked organizations. The result: Fully networked organizations perform better in terms of market share and profit margins. Study participants named faster access to knowledge, increased marketing effectiveness and reduced communication costs as some of the main advantages of technology adoption. The authors, Bughin and Chui, also report that more employees within the same organization are now making use of more Web 2.0 technologies compared to previous years. Positive feedback loops seem to facilitate organizational learning. McKinsey predicts that investments in these technologies are bound increase. This is in line with Gartner’s expectations.

There was one finding that I thought was particularly noteworthy: Self-reported market leadership correlated negatively with externally networked organizations. Market leaders tend to focus on internal collaboration, but shield themselves from external ties. The authors of the study suggest that this is to do with maintaining their leadership position. Market challengers, on the contrary, are more focused on external uses of Web 2.0 technologies to win clients over. Would you agree?

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David Wagner

Post Doc/Assistant Professor, Digital Strategy & Innovation, German Graduate School of Management and Law (GGS)

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