When economies started to collapse in the second half of this year, many blog posts cropped up heralding the death of Web 2.0. I think Web 2.0 will thrive in this economic downturn. Just not yet.
The sort of start-up that has a wafer-thin business model overly dependent on advertising will struggle and many will disappear (and quite a few won’t be missed). Investment in new ideas will become much harder to secure. But Web 2.0 is about more than creating a widget, tagging a picture or poking a friend.
Web 2.0 has yet to scratch the surface of business processes. Whilst consumer habits have changed dramatically since 2000, most organisations internally still look the same. And so they will continue during most of 2009. Going into a recession, the instinctive reaction is to freeze. Stop doing anything and wait to see what happens. Few people would start a new project or reinvent how they do business at this moment in time. And those who would ought to think twice. However, once we are well and truly up to our necks in recession (what we see right now is just the beginning), then businesses will start to rethink the management and processes that led us down down this path. It is at that point that Web 2.0 has the potential to play a significant role.
In short, the next few months will undoubtedly bring more doom and gloom stories about Web 2.0 and related technologies (let alone everything else going on in the world). But the wise will use this time to get organised for when the shock of the recession eases and people start paying serious attention to what happens next.