Web 2.0 taking off with businesses

Web 2.0 technologies are becoming increasingly popular with businesses as they start to understand its benefits following their initial investment in the technology.

More than three-quarters of execs surveyed by consultants McKinsey said they intend to maintain or increase investment in collaborative web-based technologies.

But firms are focusing on the technology to improve automation and networking rather than more well-known web 2.0 tools such as blogging.

Eighty per cent of respondents said they are using or are considering using web services. Peer-to-peer networking is also popular with 47 per cent of respondents saying they either use it or have an interest in adopting it.

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According to McKinsey, the retail sector is stepping up the pace of web 2.0 adoption while financial service firms are taking a more cautious approach.

By contrast, analyst Tower Group predicts securities firms will be keen adopters of web 2.0 technologies including wikis and blogging.

Matt Nelson, senior analyst at Tower Group, said the tech should improve communication and collaboration for securities firms, both internally and with clients.

He added web services are also attractive as they can be used to extract the best out of ageing legacy systems - a particular burden for the securities sector.

He said: "We expect 2007 to be a big year [for web 2.0]."

Of execs whose companies have already adopted web 2.0 technologies, more than half told McKinsey they were pleased with the results of investments made in the last five years.