Collective User Value in a Web 2.0 Business Model

Amy Shuen
Web 2.0: A Strategy Guide
Chapter 1

A very important concept discussed in this chapter was Web 2.0 as a business model. For an example, Shuen used Flickr.com, a social photo-sharing site.

Web 2.0 as a business model is a little different than using web 2.0 tools for a business. This youtube video goes over the basics of how a business or independent businessperson could different web 2.0 tools to make their business more efficient and further reaching.

This chapter, however, goes deeper into explanation of how the concepts and ideas that define web 2.0 can be used to create an effective business model.

Possibly the most important concept of web 2.0 addressed in this chapter in regards to a business model is the idea of “collective user value” (1). Essentially, by capturing all the input, or “intelligence” of their users and consumers, a business built in a web 2.0 model will grow more efficient and user-friendly as time goes on.

Flickr harnesses the power of collective user value in its business model. Users can tag photos for easy searching, and comment on photos that they like or dislike. This kind of data, which can be gathered by Flickr, is referred to as “metadata” (2), and can help the community and the company grow.

By allowing users/consumers to input data into the business freely, there becomes an unbiased and limitless wealth of information of ideas which are exclusive to the Flickr community. Users may be pressed to produce more quality products on the website, wishing to receive good comments.

Also, since photos can be tagged, Flickr can collect data on which tags are hit or searched most.

This kind of data would be very valuable to potential advertisers. Instead of having to spend money on marketing plans, the marketing money comes to Flickr, as advertisers can readily see which demographics are tagging different subject areas of interest

The idea of collective user value is just one way that Flickr employs a Web 2.0 business model.