As well as it happened in the first digital revolution led by Web 1.0 technology, the advent of the second digital revolution led by Web 2.0 has forced firms to rethink at both their business models and strategies. On the basis of both theory and empirical examples, this paper shows that strong similarities exist between the two digital revolutions. Consistently with old economic and managerial models found in the first digital revolution, we find that companies can choose among three strategies in facing the second digital revolution: to deny, to react or to reinvent themselves. However, as the empirical examples described shown, only outliers are leading the transformations and are redefining business models and practices in their industries.
Keywords: Social media, web 2.0, business model, strategy, digital revolution, SICTs