"Web 2.0 solutions may be part of the cure for the recessionary headache that many European businesses are now experiencing; social networking sites, wikis, and blogs are just some of the more well-known examples of Web 2.0 technologies that can play an important role here," observes Frost & Sullivan Research Analyst Iwona Petruczynik. "These solutions are becoming more prevalent in the European small and medium businesses (SMBs) arena, especially at a time like this, when workers are being forced to do more with less."
There has been an increase in the usage of social networking sites such as Facebook, Twitter and other Web 2.0 solutions like Blogger and WordPress. Until recently, they were primarily associated with consumer applications; however, currently, they are finding usage in more professional areas.
"As an interesting side note, social networking sites are gaining popularity in unexpected places, for instance, the world's most popular online virtual reality, Second Life, was used by Sweden to open their 'embassy' in the virtual world to promote Sweden's culture and image," remarks Petruczynik. "In addition, Second Life is used in the Polish Ministry of Interior and Administration, where the Ministry has a room, which a person can visit to find out what the Ministry is doing and even ask the Minister questions."
However, experts are unable to agree on one definition of Web 2.0 and this becomes a challenge in defining its market size. Yet, it is unlikely that Web 2.0 will become a stand-alone market, as it is a set of technologies and ideas driving the development of existing products and services. The full potential influence of Web 2.0 is only now playing out, as the concepts and technologies are finding their use in manufacturing, customer service, product development and sales.
Innovative modes of interaction among workers, enabled by Web 2.0, contribute to company cohesion and employee retention. Telecommuting staff too can collaborate with each other speedily and effortlessly, outside of the formal e-mail stream.
Despite the evident advantages, some businesses are apprehensive about fully embracing Web 2.0 tools. The popularity of companies' in-house intranet and concerns about security and confidential information leaks are just a few examples of the restraints faced by the European Web 2.0 market. Moreover, a culture of 'busyness' retards the adoption of Web 2.0. If employees are not seen working all the time, they are assumed to be inefficient and unprofessional, when, in fact, they could be conducting their business through utilising solutions such as blogs or social networking sites, like Twitter or LinkedIn. In addition, Europe tends to be more conservative in accepting new solutions. Therefore, the adoption rate of Web 2.0 in Europe is lower than that in the United States.
"In Europe, there is a common misconception that a true deliverable is measured in how many kilograms of paper one produces and hands over to a client," explains Petruczynik. "This belief is hindering the adoption of Web 2.0 solutions, as more end products are being delivered in the form of a wiki or a blog."
Moreover, the security concerns that many chief information officers (CIOs) face are equally important. Asynchronous JavaScript and XML (AJAX), a programming technique used by Web 2.0 programmers, poses security risks that in the worst-case scenario include uploading malicious codes onto someone's computer or hijacking an account.
According to the European Commission, small and medium businesses (SMBs) constitute 99.0 percent of all enterprises in Europe and provide almost 75.0 million jobs. With such significant market potential, Web 2.0 vendors should not have problems with deploying their solutions in the SMB sector.
"The best practice for those employing Web 2.0 solutions include creating and implementing clear and easy policies, describing how to use social media to avoid security risks, and leaks of confidential information, adapting their corporate culture to promote openness and collaboration, and educating employees on how to use Web 2.0 tools to become more productive and efficient," concludes Petruczynik. "On the other hand, Web 2.0 vendors should help in creating supportive policies, providing seamless integration with existing advanced corporate communication tools, and offering a variety of 'a la carte' Web 2.0 technologies."
