Small and Medium Enterprises (SME) represent 90 % of all U.S. Enterprises and 99 % of all European Enterprises and are of high social and economic importance within the U.S. and Europe. Due to their limited resources, SME struggle with structural problems. A possible solution for SME is building networks to act on an extended resource base. Information and Communication Technology (ICT) can act as an enabler for SME networks to strengthen communication, collaboration and enhanced participation. Especially, Web 2.0 tools are seen as adequate tools for SMEs to increase productivity, innovation and proximity to the market. So called Collaborative Innovation Networks (CoINs) are highly innovative networks. As traditional networks often struggle with daily work life problems, they need support whilst transformation into a CoIN. Hereby, iterative phase models are an adequate approach. We develop a procedure model for Web 2.0 implementation in SME networks and evaluate it with a case study.