BEYOND WEB 2.0Why Innovation Matters

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04/07/23Beyond Web 2.0 - Why Internet innovation matters2

Beyond Web 2.0

1) Defining Web 2.0 Web 2.0 is a platform for participation

2) Leveraging Web 2.0Web 2.0 is creating real business value

3) Engaging Web 2.0+Internet innovation in the Enterprise

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Web 2.0 Is a platform for participation

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What is Web 2.0?

Web 2.0 was first defined by Tim O’Reilly in 2004:

“Web 2.0 is the business revolution…caused by the move to the Internet as a platform.”

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Web 1.0 – Internet as messenger between desktops

In Web 1.0 computing power was on the individual computer desktop – the Internet was used to exchange small amounts of data between server and desktop---and sometimes desktop to desktop, as with e-mail

Desktop Desktop

Desktop Desktop

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Web 2.0 Internet as platform enables participation

Social networks

User-generatedcontent

Bandwidth& distribution

Openarchitecture

Openstandards

Read &Write tools

In Web 2.0 the Internet has become the platform for software—the browser has become a window through which powerful and media-rich applications are accessed. This has also given rise to read-write tools that allow spontaneous user-generated content creation and communication through powerful social networks.

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Web 2.0+ Is creating real business value

How people are using Web 2.0

• Listen to me…

– Blogs, personal pages, purchase recommendations

• Listen to us…

– Wikis, social networks

• Find people like me…

– Tagging, profiles, social networks, virtual worlds

• Find stuff I need…

– Tagging, RSS, mashups

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How marketers are using Web 2.0

• Listening…

– Finding out what customers are really saying

• Speaking…

– Connecting with customers in new ways

• Energizing…

– Getting their best customers to evangelize their products

• Supporting…

– Helping customers solve their own and each other’s problems

• Embracing…

– Working with their communities to make products better

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How organizations are using Web 2.0

• More efficient collaboration between employees…

– Improved response times to customer requests

• Increased transparency into decision making processes…

– Better project management

• Better access to structured and unstructured information…

– Enhanced customer service management

• Increased knowledge retention and process documentation…

– Better service quality

• Collective intelligence gathering…

– Faster innovation

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As a platform for individuals to form social networks

Yesterday it was one-to-many, today it’s many-to-many:

• Social networks + communities• Blogs gather audiences, and also inter-

link similar Web content• Individuals read, write, network, link,

“mash-up” -- everyone is a publisher

What are the implications?• Low / No cost to organize and grow

communities• Empowerment of niche interests and

communities• Rise of citizen influencers is changing

media landscape• Consumer views about products,

services and brands take center stage

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Social networks create user-generated content

Social networks are communities that share interests and activities:

• They interact via chat, instant messaging, email, voice, file-sharing, blogs, discussion groups and forums

Brands have entered into dialogue with communities and customers:

• Growing distrust of traditional marketing messages

• Brands now understand customer needs and issues on a deeper level increasing customer satisfaction

• Brands can participate in a community dialogue about products & services

• Brands need to be ready to give up control of the discussion

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Brands join customers through social media

• Fans brought brands to social sites first

• Youth brands and now others follow, using open

architectures to build applications that can build loyalty

through engagement

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Blogs anchor communities of interest

IBM developerWorks• Technologists participate with support team• Helps introduce new business concepts,

paradigms, products

IT@Intel• Intel experts and executives interact with

computing community, including debates on open source, sustainability

LBi Stream• Blog maintained by LBi employees• Builds credibility of LBi as thought leaders

in interactive

Jonathan Schwartz Blog• CEO of Sun Microsystems started his blog

in 2004• Writes himself, with daily updates

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Web 2.0 creates low-cost service and self-service

Low-cost service:

• Palm Treo discussion forums are form of low-cost service

• Network effect increase value of the forum

Self-service:

• Salesforce.com has more than 600K subscribers, whole new market of small businesses using low-cost online service

• They continue to build and grow sales management offerings – pushing bar higher for those not using Salesforce or similar service

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Second Life is attracting corporations for communications and collaboration

• Virtual events and meetings – trade shows, press conferences, product introduction• Business centers staffed with multi-lingual sales avatars • Co-branded initiatives• Advertising and promotion• In the future, “SimCity” like enterprise applications create detailed models of cities,

infrastructure, services, networks, markets, and products

New models of collaboration are being invented

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Web 2.0 business models are well-established

• eBay, Amazon, iTunes, Craigslist and Google are the established first wave• User generated content builds competitive advantage • Critical mass of users can push a site to the tipping point as monopoly• Open programming interfaces allow outside extensions like storefronts, affiliates, search, mash-ups of merged applications

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Web 2.0 business strategies emerge

• Platform enables software as a service (SaaS)• Open programming interfaces allow outsiders to build extensions such as storefronts, affiliates, search engines that enhance the core business• Customers participate in social communities, creating content, inviting, linking – therefore creating barriers to entry• Customers collaborate to help create new products and services

Social evolution online paces computer evolution

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Increasing social connections

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Thank you