Web 2.0: A Strategy Guide

Chapter 5. New Recombines with Old

WEB 2.0 MAY APPEAR TO BE SOMETHING NEW, DIFFERENT, AND INCOMPATIBLE with business platforms that came before. Although much of the point of this book has been to show that Web 2.0 is different, that difference doesn’t mean that the old world halts and a new world begins.

Web 2.0 strategies can be a component of other business models. One common option is to build communities on the basis of existing products and brands. Another is to build relationships between up-and-coming firms with new technologies and older companies with experience in a field and a strong user base. Along the way, businesses can explore new relationships with their customers and with each other.

Styles of Innovation

Even before economist Joseph Schumpeter described innovation as the “creative winds of destruction” back in 1942, businesses have feared the dark side of innovation. New technologies disrupt the old order and destroy the comfortable relationships, profitable markets, and leadership positions that current companies—called industry incumbents—have successfully carved out for themselves through years of investment and infrastructure. Clayton Christensen’s bestseller, The Innovator’s Dilemma (HarperBusiness), reminded even high-tech winners that innovation comes in disruptive waves from emerging technology niches and ignored market segments, making today’s heroes next year’s zeros.

Using the disk drive as an example, Christensen defines disruptive innovation as a “sleeper” ...