Executives responding to McKinsey’s second annual survey on the business use of Web 2.0 technologies—including wikis, blogs, social networks, and mash-ups¹—were asked which of these social and interactive tools their companies have adopted and for which purposes, what they are doing to encourage adoption, and how satisfied they are with their use of these tools.² They were also asked to what extent they are using such new technologies to interact with their employees, customers, and suppliers—and, ultimately, how important these tools are to their companies’ competitive edge.

This year’s survey reveals continuing investments in Web 2.0. Companies that are deriving business value from these tools are now shifting from using them experimentally to adopting them as part of a broader business practice. Last year, our respondents said that their companies had adopted just over two Web 2.0 tools on average; this year, those companies have adopted two and a half from the same list and more than three from an expanded one. The survey also shows that the use of these tools is both intense and wide-ranging. Companies report that they are using Web 2.0 both within and outside their walls—to forge tighter links with customers and...