The New Investment Cycle in Internet Commerce: Web 2.0 Goes Mainstream

By Allard, Ken | Information Today, April 2008 | Go to article overview

The New Investment Cycle in Internet Commerce: Web 2.0 Goes Mainstream


Allard, Ken, Information Today


[Insider's Perspective is a column written by an expert in the information industry who shares his or her insights about a specific corner of the industry. --Ed.]

After 5 or 6 years of anemic web investments, mainstream organizations are renewing their spending and focusing on partner-facing and consumer-facing web initiatives. After 2001, many companies stopped investing in their web platforms. The bubble had burst, and executives tried to cut costs, shrink staff, and focus on business initiatives external to the internet.

In many large companies, central budgets were cut or eliminated. While Web 2.0 has been hyped in the media for the last several years, most major innovations have been limited to social networking startups or web behemoths such as Google and Amazon. In 2008, the Web 2.0 investment cycle hit the mainstream.

Now, a wide range of organizations, particularly those that sell information-intensive products or services in industries, are making large investments in internet commerce. The following four main trends are driving this new investment cycle:

1. Consumers and business users are demanding new and sophisticated features and services.

2. Internet commerce initiatives have become reliable engines for growth.

3. New web technologies enable additional capabilities.

4. Marketing budgets are increasingly shifting to the internet.

Demand for Sophisticated Features and Services

Web 2.0 hype has become a reality on many leading websites. As consumers have become accustomed to easy-to-use, sophisticated features like those available from Google, Fidelity, and Amazon, they have begun to expect them no matter where they go on the internet. For B2C organizations, this demand is a direct call to upgrade their web presence, as those companies that fail to offer a compelling user experience will quickly lose out to market leaders. For B2B organizations, the pressure is indirect. Companies have heard from their partners and clients that they are dissatisfied with current web offerings. They don't understand why the web experience on B2B sites lags so far behind what they experience when visiting consumer sites. This phenomenon is particularly strong in the information, media, insurance, and financial services industries. However, most websites cannot be improved with a simple facelift. When companies want to upgrade their client-facing features, they need to make considerable infrastructure investments and application upgrades first.

Reliable Engines for Growth

Mainstream organizations have seen web-related revenues grow steadily even as they have failed to aggressively invest in them. Five years of pent-up demand have generated huge rosters of compelling ideas that have the potential to further fuel growth. While the mainstream press continuously laments the future of traditional media companies, leaders within those companies are aggressively developing new products and services that add value to their content and services. Google and user-generated content may wipe out the value proposition for commodity content owners, but those with truly proprietary assets are emboldened by the opportunities they see in the next 12 to 36 months. They are also shifting channel strategies, eliminating direct sales channels and dependencies on legacy channel partners to sell directly to consumers and business partners via the web. …

The rest of this article is only available to active members of Questia

Sign up now for a free, 1-day trial and receive full access to:

  • Questia's entire collection
  • Automatic bibliography creation
  • More helpful research tools like notes, citations, and highlights
  • Ad-free environment

Already a member? Log in now.

Notes for this article

Add a new note
If you are trying to select text to create highlights or citations, remember that you must now click or tap on the first word, and then click or tap on the last word.
One moment ...
Default project is now your active project.
Project items

Items saved from this article

This article has been saved
Highlights (0)
Some of your highlights are legacy items.

Highlights saved before July 30, 2012 will not be displayed on their respective source pages.

You can easily re-create the highlights by opening the book page or article, selecting the text, and clicking “Highlight.”

Citations (0)
Some of your citations are legacy items.

Any citation created before July 30, 2012 will labeled as a “Cited page.” New citations will be saved as cited passages, pages or articles.

We also added the ability to view new citations from your projects or the book or article where you created them.

Notes (0)
Bookmarks (0)

You have no saved items from this article

Project items include:
  • Saved book/article
  • Highlights
  • Quotes/citations
  • Notes
  • Bookmarks
Notes
Cite this article

Cited article

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

(Einhorn, 1992, p. 25)

(Einhorn 25)

1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited article

The New Investment Cycle in Internet Commerce: Web 2.0 Goes Mainstream
Settings

Settings

Typeface
Text size Smaller Larger Reset View mode
Search within

Search within this article

Look up

Look up a word

  • Dictionary
  • Thesaurus
Please submit a word or phrase above.
Print this page

Print this page

Why can't I print more than one page at a time?

Full screen

matching results for page

Cited passage

Style
Citations are available only to our active members.
Sign up now to cite pages or passages in MLA, APA and Chicago citation styles.

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn, 1992, p. 25).

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences." (Einhorn 25)

"Portraying himself as an honest, ordinary person helped Lincoln identify with his audiences."1

1. Lois J. Einhorn, Abraham Lincoln, the Orator: Penetrating the Lincoln Legend (Westport, CT: Greenwood Press, 1992), 25, http://www.questia.com/read/27419298.

Cited passage

Welcome to the new Questia Reader

The Questia Reader has been updated to provide you with an even better online reading experience.  It is now 100% Responsive, which means you can read our books and articles on any sized device you wish.  All of your favorite tools like notes, highlights, and citations are still here, but the way you select text has been updated to be easier to use, especially on touchscreen devices.  Here's how:

1. Click or tap the first word you want to select.
2. Click or tap the last word you want to select.

OK, got it!

Thanks for trying Questia!

Please continue trying out our research tools, but please note, full functionality is available only to our active members.

Your work will be lost once you leave this Web page.

For full access in an ad-free environment, sign up now for a FREE, 1-day trial.

Already a member? Log in now.