Social Media: The Core of Enterprise 2.0

The purpose of this paper is to provide an understanding of the Web 2.0 phenomenon and social media and its implications on customer relationship management, in order to learn that online communities and social networking are at the core of the enterprise of future or Enterprise 2.0. A range of published articles and books regarding Web 2.0, Enterprise 2.0, CRM 2.0 and social networking are examined and critiqued. A model is proposed to establish the association between Enterprise 2.0 and Information Technology from the perspective of social media. The sources are divided into three basic elements: Web 2.0, Online Social Networking websites and CRM 2.0. If Enterprise 2.0 is the enterprise of future then Social Media is the future of enterprise. Customer engagement and customer value proposition form the core of Enterprise 2.0 and online communities and social media form the corresponding core for knowledge creation and integration of Enterprise 2.0. Social media should affect customer relationship management in organizations. In the knowledge society of the future extended enterprises will become the basis of business rather than the competitive strength of individual enterprises and therefore the need to proactively prepare for it.