Web 2008 Galit Fein Senior Analyst & VP Governance & Sourcing

Agenda What is Web 2008? Web evolution: Web 2.0, web 3.0, web X.0 Best Practices

What is Web 2008?

Web evolution:

Web 2.0, web 3.0, web X.0

Best Practices

Web Evolution Static, one-way publishing medium Transactions Interactive, virtual communities Semantic Web Intelligent Web

Web 2008: What’s in It for Enterprises? Open, collaborative, & participatory model for: Enriched end-user experience Online social collaboration Community Social Networking Business New models Technology Web as a platform Web 2008

Open, collaborative, & participatory model for:

Enriched end-user experience

Online social collaboration

Web 2008 – an “Enterprise” Issue! Web 08’ tools, technologies, & concepts help business find: New customers Retain existing customers more effectively Provide products & services at higher profit margin Blogs Wikis Tags RSS Semantic Web Strategic IT Web 2.0 Business

Web 08’ tools, technologies, & concepts help business find:

New customers

Retain existing customers more effectively

Provide products & services at higher profit margin

The Long Tail Traditional Focus High value, high potential customers Web 2.0 Concept Customers who buy a few items but aggregate into a substantial amount of revenue Millions of markets of a few may be more profitable than a few markets of millions Amazon.com, Apple iTunes

Traditional Focus

High value,

high potential customers

Web 2.0 Concept

Customers who buy a few items but aggregate into a substantial amount of revenue

Anatomy of the Long Tail Theory Online services carry far more inventory than traditional retailers Even as consumers flock to mainstream products, there is real demand for niche fare found only online Rhapsody Amazon.com Netflix Total inventory: 2.3 million books Barnes & Noble Store: 130,000 books Total inventory: 735,000 songs Wall Mart Store: 30,000 songs Total inventory: 25,000 DVDs Blockbuster Store: 3,000 DVDs Source: Erik Brynjotfision, Jeffrey Hu, Michael Smith, MIT

Online services carry far more inventory than traditional retailers

Even as consumers flock to mainstream products, there is real demand for niche fare found only online

Self-Service Israeli Trends Not an innovative concept Most orgs. are planning to invest into customer self-service improvement: Cost saving Improved customer satisfaction Disadvantage: lack of customer sense of belonging Start Self-Service Build product simpler version Effective Internet search engine

Not an innovative concept

Most orgs. are planning to invest into customer self-service improvement:

Cost saving

Improved customer satisfaction

Disadvantage: lack of customer sense of belonging

Collective Intelligence Trust your users & their experience, they should NO longer be: Created Managed Hosted Controlled User as contributor Tagging not taxonomy Examples: Barnesandnoble.com vs. Amazon Britannica Online vs. Wikipedia Ofoto vs . Flickr by Producers of products & services

Trust your users & their experience, they should NO longer be:

Created

Managed

Hosted

Controlled

User as contributor

Tagging not taxonomy

Examples:

Barnesandnoble.com vs. Amazon

Britannica Online vs. Wikipedia

Ofoto vs . Flickr

Digg

Data Collaboration Specialized database Value-added services - mashups Hackability Examples: GeoBlogger Google Maps

Specialized database

Value-added services - mashups

Hackability

Examples:

GeoBlogger

Google Maps

HousingMaps

Social Phenomenon - Blogs Web site where people can enter their thoughts, ideas, comments Why Blog? High Google rank Tell company story Web search - the primary way for your prospective customers learn about you Disadvantage: time-consuming, high commitment CIO Blogs: CIO Magazine editors' and writers' blogs (http://blogs.cio.com) Jonathan’s Blog: Sun CEO & President Jonathan Schwartz's blog ( http://blogs.sun.com/jonathan )

Web site where people can enter their thoughts, ideas, comments

Why Blog?

High Google rank

Tell company story

Web search - the primary way for your prospective customers learn about you

Disadvantage: time-consuming, high commitment

CIO Blogs: CIO Magazine editors' and writers' blogs (http://blogs.cio.com)

Jonathan’s Blog: Sun CEO & President Jonathan Schwartz's blog ( http://blogs.sun.com/jonathan )

Blogs Give Companies a Human Face Planning to roll out blogs to employees and customers

Social Phenomenon - Wikis Web-based system where users can create & edit content Contribution by experts, employees, & users Sharing of ideas or viewpoints by a group or a project team Communication efficiency over "back & forth" exchanges of emails Centralized, shared repositories of knowledge & documents Dresdner Kleinwort Bank, General Motors, Microsoft Virtual communities – external support, feedback, & recommendations about a company’s products & services LinkedIn, Facebook

Web-based system where users can create & edit content

Contribution by experts, employees, & users

Sharing of ideas or viewpoints by a group or a project team

Communication efficiency over "back & forth" exchanges of emails

Centralized, shared repositories of knowledge & documents

Dresdner Kleinwort Bank, General Motors, Microsoft

Virtual communities – external support, feedback, & recommendations about a company’s products & services

LinkedIn, Facebook

Wikis Israeli Trends Most orgs. search to insert usage in enterprise & customer wikis: Innovative technologies Products & services Won’t enable customers to update content Not for expert-based companies Disadvantage: security

Most orgs. search to insert usage in enterprise & customer wikis:

Innovative technologies

Products & services

Won’t enable customers to update content

Not for expert-based companies

Disadvantage: security

Lightweight Programming Models Technology: AJAX (Asynchronous JavaScript and XML): Web development technique for creating interactive Web application RSS (Really Simple Syndication) : Syndication of content from Web pages or blogs API (Application programming interface) : Interface that an application provides in order to respond to data or service request from other applications or web sites

Technology:

AJAX (Asynchronous JavaScript and XML):

Web development technique for creating interactive Web application

RSS (Really Simple Syndication) :

Syndication of content from Web pages or blogs

API (Application programming interface) :

Interface that an application provides in order to respond to data or service request from other applications or web sites

Traditional Web Interaction Server returns a new page Client makes http request Web server

How AJAX works Server returns the requested information Client makes http request for specific information Web server

RSS Israeli Trends Inexpensive tool for users update ITOs examine an external usage in RSS for: Update information Newsletters Conference invitations, etc. Disadvantage: unfriendly interface & security model

Inexpensive tool for users update

ITOs examine an external usage in RSS for:

Update information

Newsletters

Conference invitations, etc.

Disadvantage: unfriendly interface & security model

Web Services APIs Application Programming Interface Interface that an application provides in order to respond to data or service request from other applications or web sites

Interface that an application provides in order to respond

to data or service request from other applications or web sites

Web 2008 Trends Consumers are spending more time on the Internet than on traditional media, but advertising spending is lagging behind the trend 37%* 9%* 30% * 5%* Hours of leisure time per week spent with various media * Percentage of the advertising market Source: Aegis

Consumers are spending more time on the Internet than on traditional media, but advertising spending is lagging behind the trend

Web 2008 Israeli Trends ITOs have not yet harnessed the potential of Web 2.0 to its advantage ITOs begin to realize that Web 2.0 will differentiate them from competitors: Interactive & zipper Web site (Ajax) Access to spread-sheets & calendars via Web (SaaS) Self-Service

ITOs have not yet harnessed the potential of Web 2.0 to its advantage

ITOs begin to realize that Web 2.0 will differentiate them from competitors:

Interactive & zipper Web site (Ajax)

Access to spread-sheets & calendars via Web (SaaS)

Self-Service

Enterprise Applications of Web 2008 Applications Web 2.0 Technology Source: Cutter Blogs Marketing Customer relationship management Brainstorming new ideas, exchanging service tips Wikis Enterprise wikipedia -- information repository Project documentation and management Workflow management and monitoring Facilitating innovation, new product development Mashup Data aggregation from different sources on the Web Use of maps or other services available to create new, value-added info Creation of new Web applications, easily and quickly by end users Social networking Finding sales leads Hiring people from collective contacts Identification of employees or users with common interests AJAX Responsive Web user interface Rich Internet applications -- drag and drop Desktop applications on the Web Syndication feeds (RSS) "Home delivery" of new information of interest from blogs and Web pages Syndication of information from different sources

Marketing

Customer relationship management

Brainstorming new ideas, exchanging service tips

Enterprise wikipedia -- information repository

Project documentation and management

Workflow management and monitoring

Facilitating innovation, new product development

Data aggregation from different sources on the Web

Use of maps or other services available to create new, value-added info

Creation of new Web applications, easily and quickly by end users

Finding sales leads

Hiring people from collective contacts

Identification of employees or users with common interests

Responsive Web user interface

Rich Internet applications -- drag and drop

Desktop applications on the Web

"Home delivery" of new information of interest from blogs and Web pages

Syndication of information from different sources

Web 3.0 Semantic Web - Machine-facilitated understanding of information on the Web in order to facilitate information aggregation Copy schedule of conference to Outlook calendar Copy list of people to Outlook contacts The 3D Web - 3D online persistent world with a sense of presence and simultaneous experience in context

Semantic Web - Machine-facilitated understanding of information on the Web in order to facilitate information aggregation

Copy schedule of conference to Outlook calendar

Copy list of people to Outlook contacts

The 3D Web - 3D online persistent world with a sense of presence and simultaneous experience in context

Virtual Worlds Examples (over 30 worlds): Second Life ActiveWorlds Entropia Universe There MultiVerse Vast Park Metaplace

Examples (over 30 worlds):

Second Life

ActiveWorlds

Entropia Universe

There

MultiVerse

Vast Park

Metaplace

Second Life 40,000 concurrency (at any time) 450,000 active users (last 7 days) 1.4 m active users (last 2 months) 10.6 m total accounts 2 m assets created per day 35 TB of user-created data 800,000 unique items sold or traded per month 500 events per day Source: Linden Lab Million Square Meters of Second Life Land Total User Hours (millions) Source: http://secondlife.com/whatis/economy-graphsphp

40,000 concurrency (at any time)

450,000 active users (last 7 days)

1.4 m active users (last 2 months)

10.6 m total accounts

2 m assets created per day

35 TB of user-created data

800,000 unique items sold or traded

per month

500 events per day

Currency: Linden$ LindeX exchange operated by Linden Lab Buy: USD $.30 transaction fee Sell: 3.5% transaction fee 270 L$ =$1 USD Monetary policy US$ Spent by Users (in Millions) US $ Exchanged on Lindex (in Millions)

LindeX exchange operated by

Linden Lab

Buy: USD $.30 transaction fee

Sell: 3.5% transaction fee

270 L$ =$1 USD

Monetary policy

Business IBM Cisco Best Buy’s Geek Squad Dr. Dobbs Life 2.0 Conference Preen H&R Block

Customer Service Best Practice Ideas: Give customers control Let customers manage their own services online Direct data flood Use Web data on customers as a competitive weapon Listen for new ideas Use blogs to find them in order to fix thing

Best Practice Ideas:

Give customers control

Let customers manage their own services online

Direct data flood

Use Web data on customers as a competitive weapon

Listen for new ideas

Use blogs to find them in order to fix thing

Customer Service Pacesetters: Zipcar Linked the phone system to Web site & clients DB Payoff: 50% of calls & improved service Continental Airlines Analyzed data on the fly to improve customer care Payoff: Top tier in CS BT Group Linked Web portal to the support staff system to improve consistency Payoff: x3 customer transaction, 10sM$, boosted CS 40%

Pacesetters:

Zipcar

Linked the phone system to Web site & clients DB

Payoff: 50% of calls & improved service

Continental Airlines

Analyzed data on the fly to improve customer care

Payoff: Top tier in CS

BT Group

Linked Web portal to the support staff system to improve consistency

Payoff: x3 customer transaction, 10sM$, boosted CS 40%

Management Best Practice Ideas: Try new tools Use dashboards & scorecards to take full advantage Use the data Push for new ways to use data Mine for expertise Pull profiles of workers online

Best Practice Ideas:

Try new tools

Use dashboards & scorecards to take full advantage

Use the data

Push for new ways to use data

Mine for expertise

Pull profiles of workers online

Management Pacesetters: Kaiser Permanente Digitized medical records to manage patient care more effectively Payoff: Important data trends ASPCA Overhauled its Web site & database to accept & place people Payoff: List of 24,000 volunteers IBM Created employee profiles DB Payoff: DB 36K employees, cut 500M$ and time

Pacesetters:

Kaiser Permanente

Digitized medical records to manage patient care more effectively

Payoff: Important data trends

ASPCA

Overhauled its Web site & database to accept & place people

Payoff: List of 24,000 volunteers

IBM

Created employee profiles DB

Payoff: DB 36K employees, cut 500M$ and time

Collaboration Pacesetters: Procter & Gamble Used outside scientific network of 80K scientists Payoff: Boosted sales by 40% IJIS Institute Set up a series of blogs to share info among its 16 committees Payoff: 400 people work on 37 projects; cut 50% of calls Dresdner Kleinwort Wasserstein Used wikis & blogs to create, edit & revise projects in real time Payoff: Cut 75% of e-mails, 50% of meetings time

Pacesetters:

Procter & Gamble

Used outside scientific network of 80K scientists

Payoff: Boosted sales by 40%

IJIS Institute

Set up a series of blogs to share info among its 16 committees

Payoff: 400 people work on 37 projects; cut 50% of calls

Dresdner Kleinwort Wasserstein

Used wikis & blogs to create, edit & revise projects in real time

Payoff: Cut 75% of e-mails, 50% of meetings time

Streamlining Pacesetters: NYC Comptroller’s Cybersettle Service Used Net to settle injury claims more efficiently Payoff: 17M$; 1,137 claims online; time reduction: 9->4 month Trinchero Family Estates Set up an online system to track the processing of grapes Payoff: 3% of handling raw materials cost

Pacesetters:

NYC Comptroller’s Cybersettle Service

Used Net to settle injury claims more efficiently

Payoff: 17M$; 1,137 claims online; time reduction: 9->4 month

Trinchero Family Estates

Set up an online system to track the processing of grapes

Payoff: 3% of handling raw materials cost

Marketing Best Practice Ideas: Open the doors Tap the creativity of the community online Try the (new) networks Social networks can reach targeted audiences Connect then contact Give people a must-have service, use it to build your brand

Best Practice Ideas:

Open the doors

Tap the creativity of the community online

Try the (new) networks

Social networks can reach targeted audiences

Connect then contact

Give people a must-have service, use it to build your brand

Marketing Pacesetters: Audi Staged a car theft in NYC to launch its new A3 model Payoff: 500K people online; 10K leads Southwest Airlines Download service for short-term discounts alerts Payoff: 1.3M downloads; 50M$ in sales Converse Enlisted the public as ad creators by soliciting online films Payoff: 1.6K submissions; 80% increased site visits

Pacesetters:

Audi

Staged a car theft in NYC to launch its new A3 model

Payoff: 500K people online; 10K leads

Southwest Airlines

Download service for short-term discounts alerts

Payoff: 1.3M downloads; 50M$ in sales

Converse

Enlisted the public as ad creators by soliciting online films

Payoff: 1.6K submissions; 80% increased site visits

Thank You ! this research Galit Fein Senior Analyst & VP [email_address]