Benefits and Risks of Enterprise 2.0

Benefits and Risks of Enterprise 2.0

This week’s blog is about exploring the benefits and potential drawbacks associated with Enterprise 2.0. The term ‘Enterprise 2.0’ was first coined in 2006 by Andrew McAfee. Since then, it has grasped the attention of many organisations across the globe. McAfee’s idea behind Enterprise 2.0 was that organisations use Web 2.0 technologies such as wikis and blogs within the corporate intranet.

Implementing new technologies in any organisation will result in some form of change in regards to its organisational structure. Therefore, implementing Enterprise 2.0 is no different. With any form of implementation, there are always some benefits and risks associated.


There are four key potential benefits of implementing Enterprise 2.0:

  • Productivity and Efficiency
  • Staff Engagement
  • Knowledge and
  • Reputation.

However, the two benefits that I think are most important in implementing Enterprise 2.0 include:

  • Productivity and Efficiency: Enterprise 2.0 tools are extremely important in that they assist in increased productivity not only in team projects but for individuals alike. There is also an increase in team performance and project management, where team interaction is accelerated thus producing a faster innovation and product development.
  • Reputation: Implementing Enterprise 2.0 technologies in organisations is becoming more and more popular, especially when reputation is concerned. Organisations are now discovering that the use of social media tools such as Facebook, Twitter and YouTube are all great advertising tools. Using a combination of these social media tools, organisations have been able to get their brand name ‘out there’ and have also been able to communicate with consumers on a wide scale basis.


There are six ‘perceived’ risks and concerns in implementing Enterprise 2.0:

  • Security
  • Loss of Control
  • Reputation
  • Reliability
  • Productivity and
  • Resources.

However, the two risks and concerns that I think are most important in implementing Enterprise 2.0 that should be understood and addressed include:

  • Security: The safekeeping of an organisations data is undoubtedly the most important concern when implementing Enterprise 2.0 technologies. When implementing these technologies, organisations must consider security threats such as hackers, viruses and malware which the World Wide Web is renowned for being the major source of all threats. Other threats such as employees are also considered a security threat. Employees are considered as threats as they may knowingly or unknowingly publish information on an external wiki that was only meant for internal eyes only.
  • Reputation: Yes, reputation can be a good and bad thing when it comes to implementing Enterprise 2.0 technologies in organisations. The major concern with Enterprise 2.0 tools is that employees can make negative comments about an organisation on their personal Web 2.0 sites such as Facebook and Twitter.

The following are examples of organisations that have had successful implementations of Enterprise 2.0.

  • Coca Cola – An out of work actor and his friend started up a Coca-Cola fan page – Success in letting the fans create and maintain content – 3.6 million friends agree.
  • Oracle – Idea Factory – Created to share ideas across the whole organisation – Success in generating excitement in applying 2.0 concepts to the workplace.


Dawson, R. (2011). Implementing Enterprise 2.0.

IBM. (2011). Implementing Enterprise 2.0.

Wildermuth, P. (2011). 21 Enterprise 2.0 Success Stories.


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