The buzz about social media has made its way into everyday conversations. Yet ask someone to define it and the answer will likely be unclear. Ask them how it might benefit your business and the answer gets even more confusing.

Simply put, the first fifteen years of the web were dominated by companies providing information and services for consumers to view - websites were essentially online brochures offering one-way communication. Today the web is becoming more of a "social medium," with users creating two-way conversations through tagging content, contributing to a wiki, podcasting, or blogging, for example. The web is transforming from a child into a rowdy teenager, or as some call it, Web version 2.0.

This transition offers new opportunities for marketing and operations. But before exploring its potential, let's first take a look at how it's changed.

How is today's web different?
In the early stages of the web, user experience was characterized by navigating categorized pages to desired topics as presented by websites.

Today, users get a piece of the action. They define the web by creating content - vast volumes of content. A single enterprise couldn't possibly generate the amount of content produced by the YouTube community every day. And Wikipedia is built entirely on user-submitted information.

Great examples of Web 2.0 businesses
These giants of the social media revolution leverage user content to constantly update and upgrade their offerings.

• eBay's product is, in fact, the activity of its users. The company's sole role is to enable transactions between individuals. With its competitive advantage being the critical mass of its buyers and sellers, eBay's business model is built on data management and gathering a small financial piece of every transaction they facilitate.
  
  
• Amazon.com and other online bookstores sell many of the same products, but Amazon engages its customers in a 2.0 experience: when customers log in to the site, Amazon presents a list of suggested items based on past purchases and browsing history. Users are then asked to give feedback to the list, telling Amazon what items they already own, and what items they're interested in. Amazon compiles this data to create more relevant suggestions.
  
  
• Facebook is another website with content developed by users, who create profiles where they post messages, personal interests, photos; while building a network of friends. But Facebook is "2.0" for another reason: virtually anyone can develop a program (or "application") that runs on Facebook. Thousands of applications that help people connect or just have fun have been developed, further adding to Facebook's original capabilities.
  
  Visa has a new Facebook application as well: The Visa Business Network, which helps businesses connect with others, manage their organization, and grow their customer base.

Can small businesses utilize social media?
Absolutely, and in a variety of ways. Social media can promote products and services, make your website more effective, help you understand customers, find new customers, and streamline operations.

Interact with your target audience

• Facebook has become a popular channel for business marketing. One way is to setup a profile for your business, which allows users to become "fans" of your product or organization. When this happens, the fan's friends are also notified, instantly broadcasting an advocation of your brand. Businesses can also market directly to Facebook users through innovative applications, such as the previously mentioned Visa Business Network.
  
  
• A video-sharing site such as YouTube is a great marketing channel for just about any business. An arborist can upload "how to prune a hydrangea" to YouTube, provide links back to their site, and imbed the video on their site.
  
  
• Artisans can use photo-sharing sites such as Picasa or Flickr to easily catalogue their work, keeping their site fresh to encourage new and repeat traffic.

Understand your website traffic
Tools such as Google Analytics can help you understand who is visiting your website so that you can:

• Address language concerns
• Advise on tax and delivery charges by location
• Include ads that are region-specific

Use search technology on your company's site
Google's search functionality can be added to your website to enhance user experience.

Facilitate operational processes
There are a number of online software resources that can support your business operations:

• Writeboard.com is a web-based word processor enabling co-workers to brainstorm on-line and automatically inform contributors when changes are made.
  
  
• Adbeast.com provides secure online workspaces and collaboration networks to manage the needs of the advertising and marketing communications firms.
  
  
• Salesforce.com is web-based customer relationship management (CRM) software, allowing sales staff to look up customer orders, notes, and contact information wherever internet access is available.

Like the teenage brain, Web 2.0 is the synapses of the web realigning, learning, questioning, stretching, and maturing. Surging the web toward its next phase...Web 3.0?