Interactive Web 2.0 technologies are enabling businesses to use their customers to lead product design, create content and solve problems.

“Crowdsourcing”, which allows people to take part in online discussions and vote on what the company should be doing, is already starting to take off.

L’Oreal used the model in a partnership with teen lifestyle site VarsityWorld.com to make a commercial for a new lipgloss.

And Kimberly-Clark is using crowdsourcing in its Huggies baby products division as part of a business model that includes “relying on consumer learning to drive product solutions”.

The firm’s liquid baby powder was a direct result of ideas submitted by customers. And time to market has been cut by 30 per cent, says the company.

The IT sector is another keen proponent. Dell’s IdeaStorm web site, launched last year, lets members post, discuss and vote on suggestions. The decision to offer PCs with the Linux operating system pre-installed came from a proposal on the site – and took less than three months from concept to launch.

Crowdsourcing is an internet-enabled upgrade of the original focus group concept, according to Dell vice president Bob Pearson.

“Making decisions about a product launch based on the opinions of 50 or 60 people is old school,” he said. “Now you can watch 100,000 customers talk to each other, see how they vote and maybe ask them for input.”

The key is to establish the business processes needed to make crowdsourcing work.

“You need upper management to listen to customers and act on their decisions,” said Pearson. “The technology is something anyone can get. The company has to have the willingness to let the ideas penetrate.”

As crowdsourcing gains traction, it will no longer be the preserve of only the largest firms. “There are web sites springing up to encourage participants to work on an idea or problem in a particular domain,” said David Furlonger, vice president at analyst Gartner.

Web 2.0 technologies are crucial, as is public take up of always-on broadband internet.

“The development of the internet helps because ideas can be collated and rated for value,” said Furlonger.

“Using crowdsourcing, you can draw on the wisdom of the crowd. ”