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This study aims at examining the factors governing business benefits of moving to Enterprise 2.0. Web 2.0 has been around for more than a decade, and has been exploited by a lot of business organizations for improving their operations and profitability. However, the success rate has not been uniform.

Is there a pattern behind this successful adoption has been a matter of curiosity for most top management personnel. This paper goes into analyzing what factors govern this movement from Enterprise 1.0 to Enterprise 2.0 and uses structured equation modeling to predict the possibilities.

It concludes by demonstrating that business benefits to the organization are significantly linked to the usage of Web 2.0 tools.

The paper has been done in India, and the authors expect that similar studies around the world will result in similar results.

Results of this paper emphasize the strong correlation between the use of Web 1.0 and Web 2.0 tools with business benefits obtained in terms of improved productivity of resources used and a higher level of information quality leading to better decision-making. Thus, transition to the Enterprise 2.0 state should be strived by all business organizations.

This is an original work of the authors.