Global Survey Shows Benefits of Web 2.0

The latest global survey from consulting firm McKinsey & Company confirms what those of us who follow the advancement of the Web already know: there are significant measurable business benefits of Web 2.0.

This year’s survey, based on responses from about 1,700 business executives worldwide, specifically addressed the value of Web 2.0 in three areas. The survey addressed the following areas: within an organization, in relations with customers, and in dealings with partners and suppliers. Nearly 70 percent of respondents said they could measure the business impact of Web 2.0 in such areas as more effective marketing, lowering the cost of doing business, and higher revenues.

The broad strokes behind the numbers suggest that Web 2.0 is paying off in the three areas of primary concern in any business: knowledge, time, and money. Companies generally report that using Web 2.0 technologies offers them “greater ability to share ideas; improved access to knowledge experts; and reduced costs of communications, travel, and operations.” Respondents also say Web 2.0 tools “have decreased the time to market for products.”

Impact outside the company is significant as well. Using Web 2.0, “companies and customers jointly shape and cocreate products,” and businesses can “gain access to expertise outside company walls more quickly.”

Some interesting trends emerge when we look at what the respondents view as the most important technologies and tools over the three years of the survey’s existence. This year, blogs and social networking were rated as the top two, as they were in 2008. But in 2007, “peer-to-peer” was the overwhelming top choice.

This year, the most used Web 2.0 technologies and tools by companies are (in order of importance) blogs, social networks, wikis, and podcasts. In 2008, social networks barely edged out blogs, while wikis was a solid third and podcasts came in fourth, slightly ahead of RSS.

The use of video sharing is on the rise – its importance rose dramatically from 2007 to 2008, and again from 2008 to 2009.

McKinsey concludes from the report that the use of more Web 2.0 technologies results in greater benefits to a company, regardless of industry. More importantly, McKinsey predicts “a different type of company may be emerging – one that makes intensive use of interactive technologies.” McKinsey calls it “the networked company.” The current economic downturn has only increased the interest in Web 2.0, says McKinsey.

Apparently, it’s all good news for the growing importance of Web 2.0.