Web 2.0 Has a Dark Side
Friday: August 1, 2008 7:10 AM
There is a dark side to Web 2.0 technologies. Like its predecessor Web 1.0, this technology transformation will alter the fabric of how business gets done. I was watching the Antique Road Show last week and one of the hosts made an interesting comment about the web. He basically said that the internet has destroyed the antique business with price transparency. Prices had eroded with the sites like eBay entering into the market. The example item was a poster which was once thought as extremely rare until the internet exposed the actually number of available prints. Hence the price drops and the profit is removed for the individual dealer. This is really no different than how the web eliminated the need for travel agents and reduced the new car negotiation method to bringing in a web quote. Simply put, the web changed everything and historically speaking is the number one profit killer of all time.
Will Web 2.0 have the same impact on the business world? While that remains to be seen, we have already seen several examples of where this technology has had a dramatic effect. Take for example the Kryptonite lock that was advertised as the "toughest bicycle security in moderate to high crime areas". It didn't take long for someone to pick the lock with a Bic pen and post the video on YouTube. The company was forced to recall 380,000 locks. One response to this type of transparency is to hide behind the corporate walls and discourage open communications. The idea is that if we shut off communications then no one will know our dark side. But the authors of Funky Business (Kjell Nordstrom and Jonas Ridderstrale) said it wonderfully, the "stupid, loyal and humble customer, employee, patient or citizen is dead".
Other companies are leveraging the Web 2.0 technology to increase their business value in very creative ways. Blendtec is a manufacture of high end blending machines. They routinely post videos of the blending odd items like Golf Balls or the iPhone just to demonstrate the power of the product. The idea is creative and viral which is exactly what you want to see in a 2.0 world. Organizations that hide behind corporate speak will continue to find themselves on the defensive and losing market share. The dark side of Web 2.0 is reserved for those companies that fail to change; inside or outside.
There is a dark side to Web 2.0 technologies. Like its predecessor Web 1.0, this technology transformation will alter the fabric of how business gets done. I was watching the Antique Road Show last week and one of the hosts made an interesting comment about the web. He basically said that the internet has destroyed the antique business with price transparency. Prices had eroded with the sites like eBay entering into the market. The example item was a poster which was once thought as extremely rare until the internet exposed the actually number of available prints. Hence the price drops and the profit is removed for the individual dealer. This is really no different than how the web eliminated the need for travel agents and reduced the new car negotiation method to bringing in a web quote. Simply put, the web changed everything and historically speaking is the number one profit killer of all time.
Will Web 2.0 have the same impact on the business world? While that remains to be seen, we have already seen several examples of where this technology has had a dramatic effect. Take for example the Kryptonite lock that was advertised as the "toughest bicycle security in moderate to high crime areas". It didn't take long for someone to pick the lock with a Bic pen and post the video on YouTube. The company was forced to recall 380,000 locks. One response to this type of transparency is to hide behind the corporate walls and discourage open communications. The idea is that if we shut off communications then no one will know our dark side. But the authors of Funky Business (Kjell Nordstrom and Jonas Ridderstrale) said it wonderfully, the "stupid, loyal and humble customer, employee, patient or citizen is dead".
Other companies are leveraging the Web 2.0 technology to increase their business value in very creative ways. Blendtec is a manufacture of high end blending machines. They routinely post videos of the blending odd items like Golf Balls or the iPhone just to demonstrate the power of the product. The idea is creative and viral which is exactly what you want to see in a 2.0 world. Organizations that hide behind corporate speak will continue to find themselves on the defensive and losing market share. The dark side of Web 2.0 is reserved for those companies that fail to change; inside or outside.
Comments (1)
I don't think all of the antiques/vintage/collectibles market has been eroded by the internet. Some areas, like the psoter mentioned, yes, but I've seen prices keep rising on certain items that have gained popularity because of internet exposure and availablility of online sales. Depression uranium glass, for one. Not too many people really knew what it was, and pieces that you might get $5-$10 for 10 years ago now go for $30-$80. And Scandinavian teak furniture from the 60s and 70s. 10 years ago a sideboard would go for $50 in op shops, now you'd be lucky to find one under $500. Dealers with online presence like 1st Dibs create new markets by featuring lesser-known items and talking about provenance and aesthetic importance.
Posted by: LouiseL on August 3, 2008 20:43