The Web Is the Platform

Gone are the days when installing software meant going to a store, purchasing a CD or disk, and installing that software onto your home computer. The web now allows us to download software and updates and install them instantly. Likewise, we now have the ability to share and store our own information online, or in "the cloud.” The flexibility of Web 2.0 allows us to create, share, and retrieve content on an enormous number of devices (PCs, laptops, phones, tablets, etc.) from virtually anywhere in the world.

User Participation, User-Generated Content, and Crowdsourcing

With the advent of Web 2.0 and the “horizontal revolution,” our online experience changed drastically. “Surfing the web” used to entail perusing content provided by a small number of providers. Nowadays, we—meaning consumers—have taken a much more active role in our online experience. Users now contribute regularly to online content, validate and curate the content of others, and actively participate in the countless number of ongoing online conversations.

User-Defined Content

Web 2.0 users not only provide the content, but they also have a say in how that content should be categorized. E-commerce sites and social media sites allow users to “tag” content as they see fit, creating a new way to categorize and organize information.

Network Effects

When Web 2.0 users create, consume, and comment on content, it provides more value to the content for other users. Known as the network effect, this theory suggests that the more people interact with, share, comment on, and rate content, the more valuable that content becomes.

Scalability

According to our text, scalability refers to the ability “to grow and expand capacity as needed without negatively (or at least minimally) affecting the contribution margin of the business.” Because Web 2.0 opens up a business to such a broad number of potential constituents, it is crucial that the business have a plan in mind to deal with a potential growth in sales.

Perpetual Beta

Because Web 2.0 is always changing and adapting to the needs of the community, it is said to be in “perpetual beta,” meaning that no version of a software or social media platform is ever done or completed. The web allows for the opportunity to constantly modify and improve the user experience.

Reputation Economy

Consumer marketing—users commenting on and rating content—is a big part of Web 2.0. Though usually not paid for their comments, users are compensated with the respect and recognition of other users. This form of invaluable compensation creates what can be called a reputation economy.