Some ways Web 2.0 cuts costs
- Co-production: Sometimes called 'Product Development 2.0', this is the art of enrolling other people to do the work for you. Web 2.0 platforms are great for getting customers to develop your product via customer-generated content, forums, feedback and discussions. This saves on the cost of paying others to do this work.
- Lightweight IT: Using open-source software and software-as-a-service for new applications can reduce costs.
- Mashups: Rather than build customized IT systems with hard-wired integration, Web 2.0 can enable mashups of existing Web services and data to do the job at lower cost and effort.
- Crowd sourcing: Surveying and collecting information and data via social networking can be a lot cheaper than commissioning a research.
- Meetings and collaboration: Using internal social-networking and collaboration platforms can improve communication and reduce travel costs as well as speed up the innovation cycle by enabling better sharing of information. This is particularly true of firms with globally distributed operations.
- Cloud computing: Platforms such as Amazon Web Services and Microsoft Azure can lower the costs of building and operating new IT systems.
Source: Ovum
Talkback
Remind me again of the cost savings when your business grinds to a halt because a single point of failure (server) in some unknown remote location barfs.
P.S.
Probably because a bean counter thought the hosting company could increase its profits by installing 25% more hardware than the cooling system was specified for.
In realising the potential for Web 2.0 to help firms cut costs, the experience of web conferencing highlights a number of critical elements if vendors are to successfully convince end-users of its ability to deliver, at a time when any IT investment is being put under the microscope.
No matter how advanced the technology or theoretically attractive the benefits, it will not be taken up across the organisation if it is hard to implement, understand or use. The best conferencing tools address this by incorporating intuitive, single touch controls, for example, supported by top quality training. Similarly, such tools are more likely to be used if they are integrated into services in common daily use across the business and offer the ability to join without downloads, which can otherwise exclude third party participants.
The other hurdle which many solutions fail to overcome is key is an ability to demonstrate rapid, and provable, return on investment. In addition to cost-effective on-premise solutions Software-as-a-Service (SaaS) options can ensure RoI is achieved without massive upfront investment. Transparent, flat-rate charging also enables the business to manage on-going expenditure.
Together with tools such as carbon calculators, this allows time, cost and environmental savings to be measured on a departmental basis. By working with a one-stop shop solutions provider to ensure both the right solution and the right usage, this will ensure the organisation maximises the quality of collaboration enterprise-wide - both internally and with third parties - at the same time minimising travel and other associated meetings costs.