Information Systems for Business and Beyond (2019)

known as the dot-com bubble. A frenzy of investment in new dot- com companies took place in the late 1990s with new tech companies issuing Initial Public Offerings (IPO) and heating up the stock market. This investment bubble was driven by the fact that investors knew that online commerce would change everything. Unfortunately, many of these new companies had poor business models and anemic financial statements showing little or no profit. In 2000 and 2001, the bubble burst and many of these new companies went out of business. Some companies survived, including Amazon (started in 1994) and eBay (1995). After the dot- com bubble burst, a new reality became clear. In order to succeed online, e-business companies would need to develop business models appropriate for the online environment. Web 2.0 In the first few years of the World Wide Web, creating and hosting a website required a specific set of knowledge. A person had to know how to set up a web server, get a domain name, create web pages in HTML, and troubleshoot various technical issues. Starting in the early 2000s, major changes came about in how the Internet was being used. These changes have come to be known as Web 2.0 . Here are some key characteristics in Web 2.0. • Universal access to Apps • Value is found in content, not display software • Data can be easily shared • Distribution is bottom up, not top down • Employees and customers can use access and use tools on their own • Informal networking is encouraged since more contributors results in better content

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• Social tools encourage people to share information 1 Information Systems for Business and Beyond (2019) pg. 96

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