The challanges and threats from consumer 2.0 seen from an enterprise perspective.

Raaij (1998) identified that social and technological developments will create new options and possibilities for consumers, and bring real changes for marketers. Never before has collaboration across time and space been so fast, easy and cheap. This collaboration is either a threat or opportunity depending on the enterprise strategy – resist or embrace. As an Enterprise resisting change will not lead to sustainable business, neither would the embrace strategy if you don’t know how to. As an enterprise you have to know who your consumer will be. One thing the consumer 2.0 has done is to accept the web as social medium, which has changed the acting and behaviour of using the internet and at the same time allowed marketing concepts to flourish (Razorfish, 2008). Consumer 2.0 has been described as the Net Generation and has been identified by Tapscott, (2008) by eight norms. These norms can be compared with the Enterprise 2.0 demand of collaboration which leads to openness something relative new for business.

Consumer 2.0 value characteristic	Enterprise 2.0 open collaboration characteristic
Value freedom and choice what they do	Freedom - open society
Love to customise and personalise	Flexibility and agility – open to suggestion
Scrutinise everything	Candor, transparency, possibilities – open book, open business
Demand integrity and openness (what to buy and where to work)	Lack of restrictions – open shop, open market
Want entertainment and play in work and education and social life	Sharing, access, complexity, sincerity – open source, open bar, open ended, open hearted
Love of collaboration	Standards, Listening, networking, engagement – open systems, open ears, open arms, open door policy
Expectation of everything to happen fast	Expansiveness – open range, opening up
Expect constant innovation	Innovation – finding and opening

Source: Tapscott 2008 and new Paradigm 2008 – Table 2.7

According to Anne Zelenka´s (web Worker Daily 2008) research the net generation is for 90% under 40 years, which mean that most of these people want to pick roles where they are facilitated in

engaging in open, collaborative work environments. Given the choice of two possibilities where the role is more or less equal, the net generation will choose the role in the company where corporate

culture and the tools available and make it easy for them to engage in the conversation collaboration and community they want to work in is delivered to them. What worries marketers and enterprises is how Consumer 2.0 will do their consumption because they do not show the known patterns and perception on vale which makes the old marketing models out of function and an adaption in the Enterprise 2.0 environment must happen. According to Wipperman (Trendbureao 2008) Maslow pyramid of needs has changed with the closed loop where in the process that is never completed self-actualization remains the individual basic motivation and is increasingly coming to the means of self optimization. (See figure 2.7)

As the needs are changing for the Consumer 2.0 and their habit of doing their buying transactions are taking place where they want and when they have the time. This is a huge challenge for the distribution of goods and services. According to Day and Fern (1997) to generate sustainable value from any innovation (Social Media) requires deep knowledge of the consumer and their purchasing preferences. Constantinides and Fountain (2008) argues that in social networks and through medias the consumer preferences and decisions are based on new inputs which is beyond the marketers control as it is user generated content which are build in these communities. According to Tapscott (2008) the business opportunity for the enterprise 2.0 is to form symbiotic relationships with- even to foster - emergent structures/communities since the fundamental nature of self organization is that it cannot easily be controlled, but it can be steered. One of the great issues for marketers and enterprises is the issue of trust and loyalty when we are talking web applications (Social network etc) towards the consumer 2.0 and the contracts which should be made. Simmons (2008) argues that networks of people gathering homogeneously together for social interaction often around consumption and brands are the “tribes/ consumers” which enterprises has to relate to and get them to exchange the companies product, services and information among each other. Tapscott (2008) explain that Enterprises who figure out how to establish trust across a dynamic business web through automatic IT based methods that substitute for formal contracts can gain agility and speed towards the Consumer 2.0. The evidence is strong that a myriad of quantitative changes are becoming qualitative – and that the nature of the corporation and the dynamics of competitiveness are changing. This is in general the Enterprise 2.0 model.