As time evolves, more and more companies understand the limits of their knowledge. They are looking for ways to gather information from new and additional sources. Businesses now better understand that knowledge is created everywhere. It could be created by any organization, company or person. However, in order for value to be created we need to have a system that can collect, augment, distribute and share the knowledge. Web 2.0 is creating the framework for people to manage knowledge, and thus to create true value. Realizing the limits of their knowledge, many people are inclined to share information, particularly when they understand that then others will reciprocate and share information with them. This desire and willingness to share knowledge with others is at the core of Web 2.0 strategy. As more people participate in sharing information, the value increases, and each contributor gets more value in return. This bi-directional relationship is opening up a new era for businesses; the era of participation. Businesses will gain the most as more and more knowledge will transform to value. Companies will better understand that their IP resides in employee’s participation. Companies that will build a participation system will enjoy a substantial edge in the market.