The tables have turned on the Internet: power has moved from the supply side to the demand side. The so-called Web 2.0 tools have underscored this trend even more, as evidenced by the recent episode involving Digg, an online service where users can post Internet news items that they want to share with the rest of the community. Digg’s management decided to remove information containing code for illegally copying movies in high-definition video format HD DVD, which set off an angry reaction among its user community. Many of its users repeatedly resubmitted the disputed code information, causing the service to crash temporarily.
Weeks before, Digg had received a letter from the AACS LA—the licensing authority responsible for safeguarding the security of HD video formats—requesting the removal of any data that could allow a violation of the security of these formats. Despite this, Digg users managed to impose their will and the company gave in, allowing the controversial code to appear on its website.

The impact of  Web 2.0 on companies could create difficulties for them. On the other hand, it also offers the chance to interact with users, get to know their needs and learn from mistakes. It can help companies to increase customer satisfaction and thus become more profitable.

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Title: The 2007 e-Readiness Ranking
Source: The Economist Intelligence Unit and IBM
Date: April 17, 2007
Abstract: Denmark, US and Sweden are at the forefront of ICT adoption, according to data from the annual ranking compiled by the Economist Intelligence Unit. This year, Spain drops two spots from its 2006 ranking and is now number 24 on the list, near Slovenia, which sits at 29th, Estonia (28th) and Portugal (27th).
The study also reflects the notable improvement in ICT adoption rates by Asian countries. Notable cases include Hong Kong and Singapore, which are now among the world’s top ten most advanced countries in this area, ranking fourth and sixth, respectively. According to the experts at The Economist Intelligence Unit, the major efforts by both countries’ governments has been a decisive factor in their upward climb in the world rankings.
As for legislation of the online world, Asia-Pacific and North American countries are the most advanced, though European organizations are also making considerable efforts. Additionally, the study highlights the work done by the Spanish government in implementing all of the tools needed for validating electronic signatures.
The current edition of the report introduces new criteria for gauging the level of ICT adoption and redefining some of the preexisting ones. For instance, there is a greater focus on the role of national governments as the drivers of digitization while also giving more importance to ICT adoption by users and companies.

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It is well known that IT outsourcing should allow companies to focus on their key business processes and boost both company growth and the agility of the organization. The latest development, however, is that outsourcing to a single supplier seems to be losing steam and yielding ground to so-called multisourcing, a formula based on outsourcing business processes (networks, infrastructure, customer service, logistics, etc.) to more than one supplier.
The advantage of this model is that it allows companies to go with the top suppliers in each specialty area. As for its disadvantages, Gartner notes the increased complexity that comes from having to negotiate with multiple providers. Nevertheless, Forrester concludes that this factor does not necessarily have to be negative as long as companies are able to assert their authority.

Article in Financial Times
Report in Forrester (payment service)

Some major consumer brands try to capitalize on the opportunities afforded by the Internet by getting users involved in creating their ad campaigns. Cepsa, for example, asked Web users to come up with stories related to the brand, while Filipinos launched a campaign asking consumers to make videos to tell the company what its ad should be like. In general, companies believe that most users participating in this type of campaign do so to see themselves on TV. Nonetheless, some also give out prizes to the amateur creators.
With this practice, companies try to boost traffic on their websites, raise brand awareness, particularly among the younger audience, achieve more proximity to the customer and give things a more updated feel.

Articles in Actualidad Económica and Marketing Directo (payment service)

The debate involving globalization and localization, the competition model and the technologies that will make the most impact on the future of the sector will be the three keys at the upcoming telecommunications sector meeting organized by IESE. Reinaldo Rodríguez, president of the Spanish Telecommunications Market Commission (CMT), will kick off the thirteenth edition, to be held May 30-31 at the IESE campus in Madrid.

More information (In Spanish)

The IESE Public-Private Sector Research Center (SP-SP) on May 24 will be hosting the 2nd Forum on Regulation and Competition. The event will be coordinated by professor Xavier Vives and will feature debate on the economic implications of Net neutrality. Also participating as a speaker will be Michael Katz, director of the Center for Telecommunications and Digital Convergence at the University of California, Berkeley.

More information (In Spanish)