Go on the Web today and you can't help but notice the increasing array of sophisticated content and capabilities available:

• Interactive maps
• Enhanced search engines
• Wikis
• Blogs
• RSS feeds
• Services facilitated by real-time social networking

It's a far cry from only a few years ago, when static Web pages ruled.

"We are witnessing the evolution of the Internet and the emergence of a rich, interactive medium," observes Michael Gartenberg, vice president and research director at JupiterResearch.

SMBs shouldn't ignore this emerging trend. Services such as Digg, del.icio.us, and CalendarHub are changing the relationship between content and creator.

"We are seeing the Internet become a platform for software development," says Tim O'Reilly, founder and CEO of publishing and consulting firm O'Reilly Media, Inc., and the person credited with coining the term Web 2.0. "Network-enabled applications are taking hold."

Companies that take advantage of Web 2.0 can more effectively

• Organize and categorize content
• Improve collaboration
• Open communication channels
• Transform their Websites into computing platforms running full-fledged applications

They're able to combine elements in a single place to boost capabilities while creating an entirely different look and feel.

Glimpse the Next Generation

The emergence of Web 2.0 isn't tied to a specific technology or tool. It's a collection of advanced capabilities growing out of technologies such as Java, Ajax, and specialized markup languages that simplifying sharing and repurposing of Web content.

These rich and interactive features change the Web experience in notable ways:

• They allow users to participate without regard to geography
• They democratize information
• They allow new ideas, products, and features to emerge

For example:

• Google Maps allows a user to drag a map using the mouse to scroll to areas beyond the screen rather than constantly reloading Web pages.
• Del.icio.us offers participants the opportunity to use social bookmarking for sharing favorite Web pages and viewing those that are most popular at any given moment.
• Digg combines social bookmarking, blogging, and syndication to display the most popular new stories and Websites.

"Instead of a single group of editors deciding what the top stories are and what people see, participants decide on their own," says Jay Adelson, CEO of the San Francisco-based Digg.

Other services stretch the Web's boundaries in other ways. Google's AdSense uses keywords and a company's geographic location to display local products and services through its search engine. A business pays for the traffic it receives as opposed to paying a flat fee up front and hoping for the best. For a small business that lacks a big budget it's a far more economical and targeted way to connect with potential customers.

Combine Content Elements

Many intriguing new content features are growing out of so-called mash-ups. These sites or Web applications combine content from multiple sources to create a completely new service. Best known examples include eBay and Amazon.com (though Digg and del.icio.us also fall into the category). They aggregate diverse data to create an entirely new look and feel.

Today, many smaller businesses are using mash-ups to combine blogs, RSS feeds, and other tools. For example, a site might combine industry news with commentary and customer insights. Although all three elements were originally created for, and posted on, different sites, they're combined and presented in a single Web view.

Put the Web to Work

Using these new elements in an effective and cost-efficient way is essential. O'Reilly says, "Success requires an understanding of how a tool or service relates to core business principles and needs."

It's possible to take advantage of the evolving nature of the Web in several ways. For one, you can integrate the new concepts into your own site, offering advanced features and greater convenience for customers, business partners, and employees. This might include maps and blogs or ratings, reviews, and commentary from customers.

You can use various services and tools to improve your market and business intelligence. RSS feeds, for instance, can help executives to stay current with news and trends.

Web 2.0 may inspire a new business model. Many upstart companies were born when new Web features emerged, to create entirely new services and revenue streams. Del.icio.us, Digg, and Wikipedia are good examples.

Assess New Possibilities

Most services, sites, and content providers have strict rules about the use and reuse of information or programming code. Gartenberg cautions against using material without first understanding a provider's terms and conditions. In addition, it's essential to map out a strategy that focuses on ROI and improved services. While some tools, such as blogging, are relatively inexpensive, others, like Ajax and Java, may require technical expertise and programming skills.

Nevertheless, the constant evolution of the Web is opening new possibilities. "Web 2.0 provides an entrée to an array of applications that can make a big difference for a business," O'Reilly says. "It is transforming the network into a platform that supports greater connectivity and interaction."

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About the Author

Portland, Oregon's Samuel Greengard contributes regularly to iQ Magazine.

iQ Magazine, Third Quarter 2006