Enterprise 2.0 refers to the use of social software tools like wikis, blogs, tags, and social networking within a business. It draws from lessons of Web 2.0 by making software more open, connected, and user-driven. Enterprise 2.0 can help businesses through more efficient collaboration, knowledge sharing, product feedback, and marketing. It offers advantages like being lightweight, easy to use, quick to adopt, and lower costs than traditional enterprise software. While it requires new technology, Enterprise 2.0 flattens organizations, highlights good ideas, increases agility, and speeds innovation to better engage customers.