“Web 2.0” is one of those terms that is at an uncomfortable point in the hype cycle . It’s passed the Peak of Inflated Expectations where it could thrive on hope and passion alone. It’s headed into the Trough of Disillusionment where for a time, it seems like the new-new thing just isn’t going to work out so well.

The Trough of Disillusionment represents dangerous waters, but like the southernmost reaches of Africa and South America, making it through those waters opens the doorway to very profitable business. In fact, I see the Trough of Disillusionment as nothing more than the period during which real customers get real ROI’s going (or not, you may not get back out of the Trough) that prove the point. Indeed, a careful look at the Hype Cycle above shows that one of the things that happens is generic technologies like Web 2.0 are separated from actual solutions with an ROI, like Corporate Blogging and Wikis.

This brings me to the subject of this post: Where Does Web 2.0 Make the Most Sense?

First, let’s be clear about the meaning of “Web 2.0.” I’m using it here to refer to collaborative technologies on the web. Pretty straightforward, and there are a lot of things that fit—blogging (collaboration is via comments), Wikis (collaboration on documents), Social Networking, Forums, and all the rest that many of us have come to enjoy using on the World Wide Web.

So what makes for a successful Web 2.0 application? Which ones, in other words, will emerge from the Trough of Disillusionment to enter the Slope of Enlightenment? What makes sense for businesses?

Pretty clearly it is those Web 2.0 applications that can deliver a real ROI. In fact, as we read about how today’s economy is already impacting IT spending , we can see that ROI is more important than ever. I will add that delivery along SaaS lines rather than On-premises software is likely also critical to ensuring fast ROI during a tough economy.

One fruitful source of such applications is the very same markets and products that have produced significant ROI in the past. Beyond this, we have to look at what Web 2.0 brings to the table and choose those markets which can benefit most from a Web 2.0 spin. As Krissy Danielsson suggests , not everyone needs Web 2.0 all the time. Which categories thrive on collaboration? What are reasons to collaborate that will bring people back time and again for more?

At Helpstream we see this collaboration opportunity as being strongest for Customer Service and CRM. There are several reasons for this. First, these are inherently collaborative exercises. Having a “Customer Relationship” implies collaboration, doesn’t it? The same is true for Customer Service. Second, that collaboration has the ability to produce tangible benefits if done well. Everyone understands the value of high customer satisfaction through good customer service, and it’s hard to imagine a sales cycle going smoothly if the collaboration between seller and buyer is not going smoothly. Customers and prospects also get something out of the collaboration. In fact, we see this type of Community as a destination community that can help build participation for other sorts of communities over time.

How does Web 2.0 help? Pretty simple. First, it puts a lot more power in the hands of the customer. They tend to like that. It’s Genuine, and in this overly homogenized and highly produced world, Genuine is hard to come by. Second, it enrolls multiple customers and employees to work together. Whether that work consists of coming up with new best practices, helping one customer with a problem overcome it, or helping a prospect to understand their needs better, collaboration really works, especially when you can bring customers to that table and not just the folks doing the selling. It’s reference selling at its best and hard to beat.