The Web 2.0 wave of models and solutions aimed at the end user has had an immediate impact on corporate technology strategies. Undeniably, we are facing a major software revolution, in what is perhaps the biggest shake-up ever. At last, software engineers’ dreams of modularization look to be on the right track as software is converted into services.

ut it is not only the world of software that is exposed to rapid change. Enterprise too is undergoing a transformation, making it increasingly important to cover shifting business needs at the same time as widening cooperation with different players and providing the right people with the right information at the right time.

While Enterprise 2.0 started out as a direct extrapolation of typical Web 2.0 models (Blogs, Wikis, etc.) to company intranets, conceived by Andrew McAfee, the concept has evolved considerably, and the name Enterprise 2.0 is now being used to embrace all of the changes taking place basically in the technological environment within firms (whether or not they belong to the technology sector).

Given the number and diversity of these changes, there is considerable complexity underlying Enterprise 2.0. In this light, it needs to be remembered that the concept has implications for both the social and technical aspects of business models, inside and outside the firm. Meanwhile, the plethora of technological acronyms and business initiatives appearing all at the same time inevitably suggest that things are out of control.

Enterprise Conceptualization 2.0

Perhaps the best current conceptualization of Enterprise 2.0 is Dion Hinchcliffe’s definition summarized in the chart. As shown, Andrew McAfee’s initial position is simply the upper right-hand box, which relates to the social aspect of Web 2.0 used internally by firms. However, Enterprise 2.0 is much more than this, as we mentioned at the beginning of this text.

From the standpoint of business models, the Long Tail is key to devising new strategies, even if not all businesses will be able to make use of this feature. However, the majority of companies will probably be able to apply the internal and external use social models and technologies that make up the other four components of Enterprise 2.0.

As we have already said, the internal use social model is what Andrew means by Enterprise 2.0. However, firms may also seek support in external social models, for example by creating communities of commitments or generating and consuming network effects. From the technological standpoint, it is now universally agree that the SaaS (Software as a Service) initiative supported by SOA is the only reality that has achieved concrete results.

Another key aspect of Enterprise 2.0 on the technology side is the software development model. At present, the business dynamic itself has ensured the triumph of strategies based on custom developments, which increase competitive advantage and use open standards with a view to maximizing collaboration with customers and partners. These developments are supported by agile methodologies ensuring a short time-to-market for constantly updated products.

As in the case of the Web 2.0 wave, customer or user orientation is key. This has always been the case and may sound obvious. Now more than ever, however, technology must revolve around the user rather than vice versa. This orientation begins in the business model and continues in the interface through which the user or customer interacts with the firm. This interaction often takes place via a graphic interface (GUI) which, logically, must be designed with a view to usability and created under new standards (such as Ajax). Yet this is not the only way in which the user or customer can relate to the firm. Feeds, mashups and open API are key possibilities to act as alternative communication channels with users, customers, suppliers and partners.

In view of the enormous number of concepts, technologies and initiatives embraced by Enterprise 2.0, we may conclude that the creation of an Enterprise Architecture is an essential first step. The alignment of business, users and technology is more important than it ever was.

At Kynetia we have gained considerable experience, if not in Enterprise 2.0, which is after all a new concept, then in the majority of the initiatives that underlie this new term, not all of which are recent.

Our experience in Enterprise Architecture, SOA, Mobility, User-oriented Interface Design and Custom Software Development using open standards mean that we are well positioned with regard to Enterprise 2.0 and are able to offer our clients a know-how based on realities.