timothy lawrence

Enterprise 2.0

The popularity of companies that integrate consumer participation is on the rise. Andrew McAffee defines Enterprise 2.0 as “the use of emergent social software platforms within companies, or between companies and their partners or customers”[1]. I believe the driving force behind the success of Enterprise 2.0 is the belief that Brands don’t always tell the truth… but peers typically do [2]. In order for a company to build trust amongst their consumers, they must enable the consumer to participate in reviews that are open to the public. The consumer producing reviews are referred to as Prosumers, a key component of enterprise 2.0. Proliferation on user generated (prosumer) content has created competition (on the part of the attention of consumers) for professionally produced content from established content industries [3].

Creating a successful business means establishing trust between producers and consumers. By involving “prosumer” reviews, consumers can see an unbiased opinion of the company or product. Our customers, Prosumers, need to realize and see manifested in our business model that we don’t have a hidden agenda, help them to learn from their experience with us that they can trust us [4].

Ebay.com and Amazon.com are both examples of how successful Enterprise 2.0 can be. Customers are not coaxed, persuaded, or suckered; they are encouraged to do research, exercise their own judgment, and participate in the multilog of discussions. Amazon and eBay are primary examples of how to create added value through transparency and participation. In this way, these companies represent the “new” Web[5]. Both companies feature user generated reviews that build trust between consumers and producers. In this business model, customers are not only served; they are also integrated into the transaction. More specifically, they drive the transaction; they make (as in: build) the business [5].

In conclusion, Enterprise 2.0 is an effective way of building a company by generating trust through peer-produced content. The success of Ebay and Amazon emphasize the effectiveness of this approach. E-commerce must incorporate and encourage user interaction to gain competitive advantage in today’s market.