I've been a big fan of Walt Crawford's writings on libraries for many years and I think his article on Web 2.0 http://citesandinsights.info/v6i2a.htm is a classic. His measured approach to the topic is a calm breath of fresh air when compared to the tons of hype that's that's being tossed around as gospel.
I see Web 2.0 as a collection of tools. Each library needs to clarify its mission and goals before it can evaluate how any particular Web 2.0 tool can help. What makes this so hard is that most libraries are stretched for resources (both dollars and staffers) and must prioritize all those things it could do.
One of my favorite articles on the difficulty of prioritizing projects, particularly IT projects, was written by Karen Schneider, IT and Sympathy : http://www.techsource.ala.org/blog/2007/01/it-and-sympathy.html
This article should be a must-read to all library managers with long IT wish lists!
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