McKinsey: “The Networked Company” is Emerging
Cisco has been espousing the true business benefits of Web 2.0 for awhile and a recent survey by McKinsey & Company confirms that, indeed, these tools have a place in business.
For three years the management consulting firm has tracked corporate adoption of Web 2.0 technologies, which it identifies as wikis, blogs, podcasts, video sharing, microblogging and social networking.
Nearly 70 percent of the 1,700 executives surveyed reported that their companies over the past year have gained measurable business benefits from Web 2.0 technologies, including the ability to create better products, carry out more effective marketing, and increase profits. These benefits have been driven by improvements in how employees share ideas and access experts. Such efficiencies have reduced the costs of communications, travel and operations. And these benefits from Web 2.0 are not only aiding employees but also helping the companies interact with customers and partners, McKinsey reports.
Of greatest note, McKinsey says the survey “indicated that a different type of company may be emerging” – “the networked company.” This new kind of organization “makes intensive use of interactive technologies…characterized by the internal integration of Web tools among employees, as well as use of the technologies to strengthen company ties with external stakeholders – customers and business partners.”
The survey found that there is a significant correlation between Web 2.0 benefits and the degree of integration of these tools into employee workflows. The survey also showed that the more tools a company used and the higher the usage level among employees, the greater the benefits.
Despite the recession, 75 percent of the survey respondents said they plan to increase or maintain their investments in Web 2.0 tools, another clear sign that businesses are finding Web 2.0 to be much more than hype.
These conclusions track very closely to Cisco’s experience using Web 2.0 technologies to improve collaboration in its own business. To learn more about Cisco’s insights about these new business tools, please check out some of the following content:
Creating a Collaborative Enterprise: (.pdf document) A detailed executive briefing on the Cisco Collaboration Framework, the company’s methodologies for implementing Web 2.0 technologies and collaboration business processes.
Transform Your Business: John Chambers and other Cisco executives discuss how companies can use network-enabled technologies to collaborate better.
Blog entry by News@Cisco senior writer Charles Waltner.