The Web 1.0 B2B idea was great. It looked like the diagram to the left. We were going to build a hub. A financial derivatives exchange. An office supplies exchange. Everyone was going to use our “free” local software. They were going to integrate it into their trading system or their inventory system. Everything was going to be straight through processing.

It didn’t work out that way. It was too expensive for companies to integrate, and most companies didn’t want to get locked into one hub. At least, that’s the theory.

I’m not sure it is 100% correct. I think part of it is simply a lack of powerful incentives. Saving 10%, 20% even 50% wasn’t enough of an incentive. Part of it seems to be just plain bloody mindedness. Over my career, I have seen exactly the same diagram drawn within a large company, with the spokes representing various divisions. In each case, the divisions simply refused to participate.

Standoffs occur, with the groups running the central hubs unable to encourage the spokes to participate. Even CEOs have trouble getting everyone to play nice.

The new Web 2.0 diagram.

One way that Web 2.0 is diffusing the standoff, is by replacing the central hub with standards. Perhaps, Web 2.0 has changed the diagram. Markus Angermeier represents Web 2.0 as simply a cloud of words, including AJAX, XHTML, XML and RSS.

To a certain extent, this has rendered the hub irrelevant. Who needs a hub when everyone can communicate via generally accepted standards. Of course, it isn’t that easy.

Tomorrow, I’ll talk about how Software as a Service might have an even more disruptive impact.

What does this have to do with Innovation Creators and how Web Office can empower knowledge workers? Hopefully, the connection will become obvious.