Businesses of all kinds are trying to work out how they can make the most of
the next generation of internet services.
The London Olympic committee wants to use Web 2.0 social-networking
technologies to make the most of audience participation in the 2012 games;
Brewer SABMiller is investing in
internal collaboration systems; and Tesco
wants its online shop to have a community feel.
'Web 2.0 technologies are hitting the mainstream in the business context,
driven by gains in worker efficiency and a fear of competitive pressures,' said
Forrester analyst Oliver Young.
One of the fastest-growing areas is the 'mashup'. A mashup takes data held on
separate applications and mashes it together to create a new and useful picture
' such as combining supply chain information with weather maps to show which
supply trucks might be delayed.
The results achievable with mashups have traditionally been available only to
large companies with sizeable budgets for software development.
But the growing availability of simple, web-based tools could let firms
correlate data on a more ad hoc basis, moving businesses a step nearer to
universal, real-time digital collaboration.
Mashups take a fundamentally different approach to the use and storage of
information.
In the early stages, most businesses tend to stick to internal pilots such as
supply chain data merged with customer relationship management (CRM) systems to
check if customers who receive goods faster are happier.
Once the benefits become obvious, firms will be more likely to consider
linking data using the internet.
'Businesses are scared of letting valuable information outside their walls,'
said Young.
But when the benefits are more tangible the technique will become more
popular.
'It is a matter of setting up the proper protocols within a mashup platform,'
he said.
Mashups are still far from the mainstream but interest is growing and some
big names are leading the way - see box, below.
Salesforce.com, which offers its
customer CRM software facilities over the internet, has been using mashups for
more than a year.
One marries the firmís contact system with the
Skype web-based telephony platform and
Yahoo instant messenger. By linking with
applications that show when a person is online, Salesforce.com can search for
available contacts.
Another, based on Google ads, offers customers details on which particular
advertisements have resulted in sales.
'Until now it was difficult to calculate the effect of an advert just from
web site hits,' said Clarence So, chief marketing officer at Salesforce.com.
'The mashup allows users of Google ads to see the returns of their
investment,' he said.
Unsurprisingly, suppliers are queueing up to get in on this. Google and
Microsoft already offer tools to perform mashups, and the companies are vying
for supremacy in the nascent online collaboration market.
The search giant's ultimate aim is for all information to be held on the
internet, rather than on internal systems - hence the development of Google
applications, an online office suite complete with space for advertising.
Though Microsoft does not yet make
its office applications available on the web, it already allows participating
businesses to share information with each other over the closed Microsoft Live
platform. And it is testing an ad-supported version of its Works package with a
cache of adverts that refreshes every time the user connects.
Real-time online data sharing is another step towards the concept of utility
computing, where computing power is as ubiquitous as electricity and data is
held on the network rather than the access device.
For consumers, customised web portals from
Google and Yahoo that allow users to
personalise information from a range of sources are the first step.
For businesses, the ultimate prize will be to conduct multiple mashups
simultaneously.
A number of firms could access each othersí supply chains and sales and
customer information at the same time, says Richard Hall, chief technology
officer of consultancy Avanade.
'The facility to connect different companies is a big step forward to a
joined-up business world,' he said.
'All information will be stored somewhere online and these disparate
applications could be mashed together, with one portal for users who no longer
know or care where the information comes from.'
Bangers and mashups
Mashups may sound obscure, but business interest in the technique for
combining information held in different applications is growing.
There are already some high-profile examples.
German car manufacturer Audi, for example,
is using a mashup to draw on 20 different sources of information, both internal
and external, to analyse the performance of its A-series range. And BBC News
uses the technique with Google maps to create graphics showing where events are
happening.
The latest predictions from analyst Gartner say mashups will hit the
mainstream within two years and provide significant benefits to firms within the
decade.
And more than one in five of the 300 executives surveyed by consultancy
McKinsey said they either already use or plan to use mashup technology.
But it may be some time before mashups become critical, says Forrester
analyst Oliver Young.
'A significant proportion of businesses using mashups are using them
experimentally, rather than as a business strategy,' he said.
Few executives say that their companies are using more than two of these te
chnologies. But nearly two-thirds of those investing said they are important for
maintaining market position.
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