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  • Galit Fein Office of the CIO 2008

Web 2008 Web 2008 Presentation Transcript

  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • Digg
  • Data Collaboration
    • 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 )
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • Virtual Worlds
    • 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
  • 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)
  • 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
  • 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$, boosted CS 40%
  • Management
    • Best Practice Ideas:
    • Try new tools
    • Use dashboards & scorecards to take full advantage
    • Use the data
    • Push for new ways to use data
    • Mine for expertise
    • Pull profiles of workers online
  • Management
    • Pacesetters:
    • Kaiser Permanente
    • Digitized medical records to manage patient care more effectively
    • Payoff: Important data trends
    • ASPCA
    • Overhauled its Web site & database to accept & place people
    • Payoff: List of 24,000 volunteers
    • IBM
    • Created employee profiles DB
    • Payoff: DB 36K employees, cut 500M$ and time
  • 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
  • Streamlining
    • Pacesetters:
    • NYC Comptroller’s Cybersettle Service
    • Used Net to settle injury claims more efficiently
    • Payoff: 17M$; 1,137 claims online; time reduction: 9->4 month
    • Trinchero Family Estates
    • Set up an online system to track the processing of grapes
    • Payoff: 3% of handling raw materials cost
  • Marketing
    • Best Practice Ideas:
    • Open the doors
    • Tap the creativity of the community online
    • Try the (new) networks
    • Social networks can reach targeted audiences
    • Connect then contact
    • Give people a must-have service, use it to build your brand
  • Marketing
    • Pacesetters:
    • Audi
    • Staged a car theft in NYC to launch its new A3 model
    • Payoff: 500K people online; 10K leads
    • Southwest Airlines
    • Download service for short-term discounts alerts
    • Payoff: 1.3M downloads; 50M$ in sales
    • Converse
    • Enlisted the public as ad creators by soliciting online films
    • Payoff: 1.6K submissions; 80% increased site visits
  • Thank You ! this research Galit Fein Senior Analyst & VP [email_address]