Web 2.0 will not reach its potential until those associated with it stop the irrational thinking.

The problems with bringing the promise of Web 2.0 to the larger market has NOTHING to do with edgy web site design, anticonsumptioning, VCs, inverted triangles of community involvement, or any of the other ridiculous reasons that I’ve recently read.

It’s ironic, but the irrational thought of Web 2.0’s thought-leaders is the very thing holding back Web 2.0.

Web 2.0 holds great promise. It’s impacting many segments, forcing companies and entire industries to adapt, change, or disappear. But don’t let the promise of Web 2.0 distort your entire perspective of reality. The problem with bringing Web 2.0 to market is, sorry geeks and others reaching for a complex explanation, a business 1.0 problem.

You can dress business 1.0 words up with Web 2.0 lexicon (”flocked”,”ninged”), but the issues and challenges remain unchanged, remain completely business 1.0, and are fundamental problems that arise during commercialization of any product within any market segment.

Flocked? Flock was actually Segway’d, and Segway was actually, etc. The idea that a product wasn’t valued by the end user isn’t a new one. A start-up needs to validate end-user needs during the commercializing stage or else it will fail. There is nothing revolutionary about this thought but that doesn’t change it’s veracity. The same goes for usability (”Ninged”).

This is the commecialization stage: It’s the (validating of) value, stupid.

A start-up needs to validate, test, challenge, and explore many issues during the commercialization phase, and Web 2.0’s thought-leader’s irrational thoughts are steering Web 2.0 ventures from this simple truth. (Why? Not the subject of this post… but partly because the thought leaders are geeks, and partly because the thought leaders are consultants (gasp!)).

The irrational thought that is most ridiculously wrong? The notion that building Web 2.0 businesses without a potential revenue stream is a long-term sustainable strategy. Lots of dicussion on this lately, so maybe the tide is changing. Web 2.0 businesses may be many things, but they’re still businesses and it’s probably unhealthy for the long-term viability of your venture to forget this. I don’t know where this thought started, how it grew, and why it persists. The one reason that pops into my mind is that “Web 2.0 is about being evil free” and “business = evil”.

If the nuns have come to terms with the necessity of money and traditional business practices, I hope Web 2.0 can as well.

[note: getting a conversation to the top of tech.memeorandum on “Disrupting Commercialization” will not make the task any easier, change what’s required, or cure the nuns dependance on money. It will, however, allow the irrational thinking to continue.]

[note 2: JS, thank you for wonderful nun annecdote]


COMMENTS / 6 COMMENTS

Great point. I don’t know why business always has to equate evil. Look at Flickr. They provide a great service that people really enjoy and are willing to pay for. Programmers, geeks, techies: they all have to eat too so if they are providing a great service/product (that probably costs them a lot of time and money to create and maintain) why shouldn’t they get paid?

Eric added these pithy words on Feb 28 06 at 7:55 am

Great point. I don’t know why business always has to equate evil. Look at Flickr. They provide a great service that people really enjoy and are willing to pay for. Programmers, geeks, techies: they all have to eat too so if they are providing a great service/product (that probably costs them a lot of time and money to create and maintain) why shouldn’t they get paid?

Eric added these pithy words on Feb 28 06 at 10:55 am

Great blog and insightful commentary. Subscribed! I have noticed that attention is given to services that are representative of the Web 2.0 mind-set, which values design over content, disruption over evolution, and ideas over business sense.

Mark Devlin added these pithy words on Mar 01 06 at 4:31 pm

Great blog and insightful commentary. Subscribed!

I have noticed that attention is given to services that are representative of the Web 2.0 mind-set, which values design over content, disruption over evolution, and ideas over business sense.

Mark Devlin added these pithy words on Mar 01 06 at 7:31 pm

Hi Mark, Welcome to Disruptive Thoughts, hopefully you’ll find it interesting. I agree that, with respect to Web 2.0, attention is focused incorrectly in a number of areas. Design seems to win out over content way too often. This is part of the reason why I’m not fixing my template (it doesn’t format properly in IE) — content is what matters, and in the time it would take for a guy like me to fix my template I can post 1 or 2 more times. When I read comments about the potential success of variouis Web 2.0 services I cringe when I read that the services “ajaxy goodness” will help make it successful. By “ideas over business sense” do you mean “ideals over business sense”? If so, I agree that it’s a tiresome focus. Web 2.0 is about technological innovations changing an industry, which will impact other industries significantly. What it won’t do is change the way that capitalism operates (and I don’t mean that in the “evil” sense - I mean it as a market place). We’ve had technology change a number of industries and,yet, business continues.

Fraser added these pithy words on Mar 01 06 at 9:15 pm

Hi Mark,

Welcome to Disruptive Thoughts, hopefully you’ll find it interesting.

I agree that, with respect to Web 2.0, attention is focused incorrectly in a number of areas.

Design seems to win out over content way too often. This is part of the reason why I’m not fixing my template (it doesn’t format properly in IE) — content is what matters, and in the time it would take for a guy like me to fix my template I can post 1 or 2 more times. When I read comments about the potential success of variouis Web 2.0 services I cringe when I read that the services “ajaxy goodness” will help make it successful.

By “ideas over business sense” do you mean “ideals over business sense”? If so, I agree that it’s a tiresome focus. Web 2.0 is about technological innovations changing an industry, which will impact other industries significantly. What it won’t do is change the way that capitalism operates (and I don’t mean that in the “evil” sense - I mean it as a market place). We’ve had technology change a number of industries and,yet, business continues.

Fraser added these pithy words on Mar 02 06 at 12:15 am

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It’s the Value, Stupid

Welcome to the conversation.

Hi, I'm Fraser and this is my personal site where I write about the things I'm interested in: start-up strategy, the web, music, and life.

My days are spent commercializing emerging technologies. Currently I'm helping to deliver the promise of semantic web to the consumer market at AdaptiveBlue. Previously I was at Trivaris, a Canadian seed stage investment firm.

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