web2 from a business perspective

Web2.0 from a business perspectiveJuly 2008 Niels Goossens Capgemini Consulting

Vision 1/24

Web 2.0, when used in the context of analysis and promotion of web technology, refers to a perceived second generation of web-based communities and hosted services — such as social-networking sites, wikis and folksonomies — which aim tofacilitate collaboration and sharing among users.

Technovision definition

Web 2.0 is a term describing the trend in the use of World Wide Web technology and web design that aims to enhance creativity, information sharing, and, most notably, collaboration among users.

Wikipedia definition

The second web is all about collaboration and social networking

definitions

2008 Niels Goossens Capgemini Consulting

In terms of number of users, Web 2.0 is a success storyVision 2/24


Vision 3/24

Web 2.0 growth exploded between 2005 and 2007


– The number of blogs doubled every five month;– Social networking Web sites usage multiplied year on year;– Peer-to-peer became the largest source of traffic on the Internet;

Growth indicators

The potential disruptive impact of Internet 2 based technologies, C. Pascu, http://www.firstmonday.org/issues/issue12_3/pascu/index.html , january 2007

– Videosite Youtube grew from 0 to 50 million users within 2 years;– Social networking site Myspace grew from 2 to 138 million users within 2 years;– Blog tracking site Technorati tracked 70 million blogs in 2007, 113 million in july 2008;– Photosite Flickr went from 500 million to 2,500 million posted photos within a year;

Some key examples

http://www.firstmonday.org/issues/issue12_3/pascu/index.html

Vision 4/24

Web 2.0 user statistics still show phenomenal growth in 2007 and 2008


LinkedIn

me.com

Flickr

Myspace

live.com

Twitter

Graphics by Compete, http://www.compete.com/

http://www.compete.com/

Web 2.0 applications are easily recognisableVision 5/24


Vision 6/24

Distinctive features separate web applications from traditional ones

– An idea is born, typically not at a marketing or product development department;

– Idea is converted into (open source/open standard) software;

– Software is (in basic form) available to anyone free of charge, as a service on the Web;

– People use service to publish and exchange their (sometimes private) data;

– Word of mouth influences popularity of service.

Five steps to popularity

open and free


Vision 7/24

Web 2.0 initiatives are often grouped around communities

– a number of people sharing a virtual environment;

– grouped around a common interest;

– supported by specific software (a forum, blog or proprietary)

– where identity is defined by the number of friends / forum posts one has.

A web community is…

communities


The number of Web 2.0 applications continues to growVision 8/24


Vision 9/24

– Combining data in mashups;

– Social networking, sharing profiles;

– Collaboration, for example in wikis;

– Storing private information on line, and sharing it.

New possibilites

Web 2.0 applications centralize users around new concepts

Some key web 2.0 examples

everything linked

del.icio.us


Web 2.0 is all about dataVision 10/24


Vision 11/24

Access your data anywhere, anytime through centralized data hosting

– Data is everywhere, and there is lots of it;

– These vast quantities of data need storage;

– Data should be accessible from any location or application;

– Web 2.0 applications can exchange data by using standards.

Data is at the core of web 2.0

hosting


Vision 12/24

Data portability

To ensure portability, standards for identity and exchange are needed

Data portability is you having your onlife with you everywhere you go online. The DataPortability Project brings this vision to reality by working with others to solve technical challenges (how can we do it?) and human concerns (how can we protect privacy?).

Standards for on line identity and data exchange

<?xml?>


Vision 13/24

1. Combining data in mashups. Example: Google Maps


Vision 14/24

2. Social networking, sharing profiles. Example: MySpace


Vision 15/24

3. Collaboration. Example: Wikipedia


Vision 16/24

4. Storing private information on line, and sharing it. Example: Flickr


Making money from web 2.0 is possibleVision 17/24


Vision 18/24

There is no single defined business model for Web 2.0

– Ad revenue (Google);

– Freemium (basic version free, pro version not – Flickr Pro);

– Subscriptions (ie. Amazon S3);

– Partnerships (Google and Yahoo!);

– Leverage for offline versions (Microsoft Office Live);

– Actual products that ship (Apple MobileMe);

– Hardware to support on line products (Amazon Kindle).

External moneymakers


Term coined by Jyri Engeström, Jaiku

Forrester found that 22% of the firms surveyed said that they have not measured the business value of Web 2.0 technologies, while 41% said they set value using traditional measurements such as ROI and 27% measured their return through employee productivity surveys.

In-company moneymakers

Forrester Web 2.0 on line survey 2008Responses from 260 IT professionals

money

Vision 19/24

Benefits from implementing Web 2.0 are also qualitative in nature


– Increase employee attrition by using talents to participate in innovation;

– Introduce a lean landscape of information systems;

– Capture knowledge more efficiently;

– Make data easily available and exchangable between departments;

– Increase collaboration;

– Be more agile and strategically lined up to target your competitors;

– Engage your customers directly.

Web 2.0 applications allow you to

innovate

Development of a Web 2.0 strategy is a necessityVision 20/24


Vision 21/24

A survey by Forrester Research shows that 63% of interviewed professionals expect Web 2.0 technologies such as blogs, wikis and RSS feeds to have a moderate or substantial impact on their business in the next three years.

Forrester: moderate to substantial impact

Studies show Web 2.0 will impact your business

impact

A McKinsey report shows that more than half of the executives interviewed are pleased with the results of their investments in Internet technologies, and nearlythree-quarters say that their companies plan to increase investment in Web 2.0 technologies in the coming years.

McKinsey: increase investments

McKinsey survey on Internet technologies, 2007responses from 2,847 executives worldwide


Forrester Web 2.0 on line survey 2008Responses from 260 IT professionals

According to a Gartner survey, half of the respondents said they plan to invest in Web 2.0 technologies for the first time in 2008. According to Gartner, saying “no” to the Web 2.0 ecosystem will generally not be an option. Web 2.0 related technologies are the most important trends of 2008.

Gartner: no will not be an option

Gartner Executive Programs survey 2008Responses from 1,500 CIO’s worldwide

Vision 22/24

– It’s all in the channel mix;Your customers want to choose the channel by which theyaccess your content: facilitate them!

– Automation versus personalization;Your processes are being automated more and more, butyour customers prefer the personal touch

– United customers.Your customers are talking about you, on line!

Why is it important to you?

Web 2.0 increases business value


According to Forrester, IT professionals found the most business value from discussion forms (70% said they got substantial or moderate business value), wikis (67% noted they got moderate or substantial business value) and podcasts (62% said they were getting moderate or substantial business value).

Which Web 2.0 applications yield the most value?

valueForrester Web 2.0 on line survey 2008Responses from 260 IT professionals

Vision 23/24

Ignoring Web 2.0 could potentially bring bad things

Have you checked your Wikipedia entry lately?It’s always good to know what people write about you.However, trying to influence your identity on line not only can, but will backfire!

Things to remember

Do you have a corporate policy on blogging?Channel the enthusiasm of your bloggingemployees by either setting clear guidelines, orby full trust and allowing everything.

Blogging

Is your marketing strategy tuned towards web2?Do not ignore the new, unconventional marketing methods that Web 2.0 brings!

Marketing strategy

Unhappy customers tend to be very vocal!From the outside, noone can see if thoseunhappy customers represent a minority.

Unhappy customers

Privacy!Customers nowadays are very aware when theirprivacy is invaded, and – sometimes united in pressure groups - tend to be vocal about it

Privacy


Vision 24/24

Joining the Web 2.0 experience has a positive impact on your business

Target very specific groups with advertising: the Long TailGet to know your customers very well, and target them with pinpoint accuracy.

The Long Tail

Use LinkedIn to evaluate new hiresNew hires often participate in various on lineprofile sites. Use it to your advantage!

LinkedIn and profile sites

Always on: towards customer self serviceYour customers are organized globally and alwayson, and they expect the same of you.

Customer self service

“Opening up” is the thing to doBe transparent about everything involving yourcompany, and invite participation.Get to know and trust your userbase: integratetheir feedback in your product cycle.

Open up!

Feed happy customersGive your satisfied customers a platform forexpressing their thoughts.

A platform for customers


www.capgemini.com

Together. Free your energies

Niels Goossens

Capgemini Consulting, C65 Public Innovation

[email protected]

web2 from a business perspective

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