So after a lot of thought I have come to the conclusion that Dion has really missed the point, along with Andrew McAfee and Nick Carr, about the use of Web 2.0 techniques in the enterprise. What they are describing is just another variation on Knowledge Management which has been analyzed to death and the issues around it are really well known. Personally I am as skeptical about KM as I am about code reuse.
The interesting use of Web 2.0 in business is in CRM or more specifically Customer Lifecycle Management. Typically CLM is too expensive and long drawn out to be able to do effectively so organizations have tried to do a cheap version which fails. With the use of Web 2.0 social and community techniques however now CLM can be done effectively and efficiently. This is where Web 2.0 will impact organizations the most.