The latest research by McKinsey & Company states that companies embracing Web 2.0 opportunities have more chances to gain market leadership and step ahead of their competitors than companies that are less Web 2.0-savvy. The research was interviewing 3.249 companies as part of its annual Web 2.0 survey.
The study concluded that “networked enterprises” are more likely to be market leaders and winning market share. The study’s authors, Jacques Bughin and Michael Chui said that the Web 2.0 companies “also use management practices that lead to margins higher than those of companies using the Web in more limited ways.” They found that 27% of companies overall gained market share against their competitors and could succeed with higher profit margins.
The success curve of the “networked companies” is exponential. Those companies that are “highly networked enterprises”, defined as companies using Web 2.0 inside and outside their business in innovative ways, “were 50 percent more likely to fall in this high-performance group than other organizations were,” the authors state.
The authors prediction is that that in many industries, “new competitive battle lines may form between companies that use the Web in sophisticated ways and companies that feel uncomfortable with new Web-inspired management styles or simply can’t execute at a sufficiently high level.”
Companies that have embraced Web 2.0 philosophy continue to report that they are receiving measurable business benefits. 90% are reporting at least one benefit. The benefits were increasing speed of access to knowledge – 77% of respodents with internal Web 2.0 efforts and 57% using Web 2.0 to engage external partners. Obviously cost saving is a big topic: 60% of internal and 53% of external users mention that communication costs could be reduced. And travel costs decreased as well said 44% internal users and 38% external users.