What is Web 2.0 (and how it relates to our e-marketingclass)

It's likely that you've heard the term "Web 2.0" used in many different ways and in different contexts. While we can't seem to agree on its definition, nearly everyone recognizes that the current version of the Web is more interactive, engaging and participatory than earlier form. These characteristics make the Internet an important platform for marketers who are seeking to build and maintain strong linkages with their customers.

Tim O'Reilly (http://radar.oreilly.com/) summarizes Web 2.0 as:

Web 2.0 is a set of economic, social, and technology trends that collectively
form the basis for the next generation of the Internet—a more mature,
distinctive medium characterized by user participation, openness, and
network effects.

See an excerpt of his report here.

The Internet, along with other information and communication technologies available to organizations today, enable firms to develop important "customer linking" capabilities. Such capabilities have been shown to lead to better customer satisfaction, loyalty and retention.

How does the Internet provide companies with customer-linking opportunities today? In the future?