Notes in the Margin

On the intersection of web apps, digital content and social media

McKinsey: Rise of the networked enterprise: Web 2.0 finds its payday

The most recent edition of the McKinsey Quarterly included an article entitled, The rise of the networked enterprise: Web 2.0 finds its payday. The article publishes findings from recent research, in which McKinsey connected with 3,249 executives in a variety of regions, industries, and functional areas.

The results were predictably favorable for web 2.0 usage. The report includes statistical analysis of the findings, which supports a correlation between web 2.0 and business success, defined a number of ways.

The article’s value is partly in simply defining the areas where success can be expected, McKinsey measured benefits in the following areas:

  • Increasing speed of access to knowledge
  • Reducing communication costs
  • Increasing speed of access to internal experts
  • Decreasing travel costs
  • Increasing employee satisfaction
  • Reducing operational costs
  • Reducing time to market for product/services
  • Increasing number of successful innovations for new
  • products/services
  • Increasing revenue

A companion article offers an interactive set of charts for understanding the results of their research (this article requires a free subscription). An example of the kind of data available in that chart is shown below.

One other point the article made which is important, though harder to measure its impact: the network effect of web 2.0 will expand its influence over time:

The benefits from the use of collaborative technologies at fully networked organizations appear to be multiplicative in nature: these enterprises seem to be “learning organizations” in which lessons from interacting with one set of stakeholders in turn improve the ability to realize value in interactions with others. If this hypothesis is correct, competitive advantage at these companies will accelerate as network effects kick in, network connections become richer, and learning cycles speed up.

via Rise of the networked enterprise: Web 2.0 finds its payday – McKinsey Quarterly – Organization – Strategic Organization.

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Written by tstaley

December 15, 2010 at 7:38 am

Posted in Enterprise 2.0

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