By Michael Kanazawa

A new good friend, Phil Gerbyshak, recently posted this video on the new tech bubble on his blog, Make It Great. He lives in the mid-West but obviously gets what is going on in Silicon Valley. First, laugh and enjoy the video, then go rebalance your investment portfolio, and then think about this question that was posed on Phil’s site: The question about a Web 2.0 bubble is if it will impact how blogs and social networking sites are used in business strategies.

To me, the answer is that the last tech bubble and this one (if you believe there is one now) have nothing to do with the use of technology, but rather just the stock market valuation of the companies providing the technology.

When the first bubble burst, people did not stop using the web for e-commerce, b2b transactions or newsfeeds. In fact, the usage kept going up. It was just that the market valuations of the web companies took a nose dive. So whether you belive that Web 2.0 companies are overinflated in valuations or not, the fundamental changes they have created will continue to grow. The proliferation of content on the web (writing, video, music) and greater collboration through wikis and networking sites will continue to grow and will continue to challenge traditional media and ways of doing busienss.

If you are in a more traditional business and laughing at the bubble pop video, hoping it will all go away soon…think again. I agree with Phil’s perspective. Keep blogging, keep networking online, and also keep writing, building real-world relationships in person, and most importantly…keep learning and evolving your strategies. Don’t let your competitors be the ones to burst your bubble.

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This entry was posted on Friday, December 7th, 2007 at 11:53 pm and is filed under Strategy, General. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.