0
Web 2.0 Business
Models
Photo: Tracy O
CEOTeemu Arina / Dicole Oy
03.02.2008
Photo: Don J. McCrady
1.
What is Web 2.0?
"The central principle behind
the success of the giants born
in the Web 1.0 era who have
survived to lead the Web 2.0
era ...
“The Semantic Web is not a separate
Web but an extension of the current
one, in which information is given
well-defined me...
Both are Ecosystems
Semantic Web: interaction between machines
Social Web: conversations between people
Integrated intelligence
Individual intelligence
Computer intelligence
Integrated:
Collective intelligence
(networked)‫‏‬
I...
Technology
• Core is information
Information
• Core is interaction
Ref: Esko Kilpi (2006)
TechnologyInteraction
Web 2.0
Photo: ulterior epicure
Recipe for Web 2.0
Web 2.0
Web as a platform
Photo: Christopher Chan
Software above a
single device
Photo: *One*
Data as the new
Intel inside
Photo: _fabrizio_
Photo: Donna Cymek
Harnessing collective
intellgence
Photo: ulterior epicure
Lightweight business
models, e.g. SaaS
(Software as a Service)
Rich Internet
Applications
(RIA, AJAX)
Leveraging the Long Tail
Ref: Chris Anderson
Sales
Products
Head (20%)
Tail (80%)
Signal vs. noise Required filtering power
Photo: Don J. McCrady
2.
What are the new
business models?
Typical business models
■ Create a large/focused niche user community
■ Sell API access (Google)
■ Sell services to a larg...
Sell your company?
Get your
feet on the
ground
Photo: Fernando A.
Photo: Big-E-Mr-G
Get 2 million €
in investment?
Photo: Big-E-Mr-G
Wake up.
Most Web 2.0 startups get to
the market with 200k€ or less
How?
Expansion strategies
1. Create an API (Application Programming Interface)
2. Distribute source as Open Source (e.g. Sugar ...
Even more importantly....
Give something valuable for free
Example revenue of X
■ 40% premium memberships
■ 42% Google Adsense
■ 10% selling one ad directly to advertiser
■ 5% text ...
Photo: Don J. McCrady
3.
How to position
yourself?
Concept analysis
Development
Simplicity
Iterative
Value
Social
Emotional
Practical
Time
Long term
Immediate
Content
People...
Usage analysis
Identity building
Publicity
Team
Community
Loose network
Content
Commercial / professional
User-generated
A...
Business analysis
SMEs
Public sector
Online service
Freemium
Offline version
Expansion
Plugins
Web services (APIs)
Subscri...
Typical Web 2.0 problems
1. Spam and scammers
2. Inability to scale business after reaching
a certain number of users
3. C...
Photo: Don J. McCrady
4.
How to drive users?
Photo: JJay
Top-down innovations Bottom-up innovations
Source of
ideas
Management and your own
organization
Customers and ...
Social objects connect people
ContinuousOccasional
Beat Hum
Particle Wave
Videos Blog posts Photos Microblogging Presence
...
Low
Threshold
High
Engagement
Reading
Rating
Tagging
Commenting
Subscribing
Linking
Recommending
Reflecting
Collaborating
M...
Participation Inequality
Ref: Bradley Horowitz, Jacob Nielsen
1% creators
100% consumers
10% synthesizers
Organize information with tags
Cognitive analysis of tagging
Ref: Rashmi Sinha
Stage 0
Object worth
remembering
Stage 1
Multiple concepts
are activated
C...
Recommendations based on
user behaviour
Broaden tags with user
contributions
Get user-generated content that can
be aggregated, not just comments
Target advertising based on
user interests
Photo: Don J. McCrady
5.
How to be innovative
Read these
Then start the engines, fellas
Virtually everything new seems to come
from the 20 percent of their time
engineers here are expected to spend on
side proj...
Challenge
■ Globalization forces organizations to get into innovation-
based competition and networking:
■ Get products fa...
Ways to innovate
Culture
Organization
Design
Experience
Business
Models
Technology
Platforms
Product
Service
Source: Pekka...
Types of innovation
■ Technological innovation
Remixing old in new ways (mountain bikes) or inventing new technologies
■ B...
Innovation through experience design
Data
(products)
Infor-
mation
Know-
ledge
Wisdom
Stimulus Aha!
Context
Experience
• P...
Photo: Don J. McCrady
6.
Where is the money?
New paradigm: Enterprise 2.0
“Enterprise 2.0 is the use of emergent
social software platforms within
companies, or between...
Photo: JJay
Enterprise 1.0 Enterprise 2.0
Hierarchical organization Flat organization
Automation in the core Interaction i...
Image: Felippe Torres
Ultimate challenge
In the future,
organizations will
compete on:
Who can create a rich user
communit...
Crowdsourcing
Taking a job traditionally performed by an employee
or contractor, and outsourcing it to an undefined,
genera...
Dell IdeaStorm
Innocentive
CASE
Anatomy of an Enterprise 2.0
Skeleton
Automation, Real-
time processes,
Operative
technologies - Back-
bone for business p...
Photo: tashland
Command & Control
becomes
Collaboration and Communication
Photo: Tanakawho
Yritys 2.0-kirja tulossa!
http://www.yritys20.com
Contact info
CEO Teemu Arina
Dicole Oy
050 – 555 7636
t...
• Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers (Robert
Scoble)
• The Medium is the M...
Web 20-business-models-1203370100297668-4
Web 20-business-models-1203370100297668-4
Upcoming SlideShare
Loading in...5
×

Web 20-business-models-1203370100297668-4

119

Published on

Published in: Technology, Business
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
119
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
1
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

Transcript of "Web 20-business-models-1203370100297668-4"

  1. 1. Web 2.0 Business Models Photo: Tracy O CEOTeemu Arina / Dicole Oy 03.02.2008
  2. 2. Photo: Don J. McCrady 1. What is Web 2.0?
  3. 3. "The central principle behind the success of the giants born in the Web 1.0 era who have survived to lead the Web 2.0 era appears to be this, that they have embraced the power of the web to harness collective intelligence" - Tim O’Reilly, 2006
  4. 4. “The Semantic Web is not a separate Web but an extension of the current one, in which information is given well-defined meaning, better enabling computers and people to work in cooperation” - Tim Berners-Lee, 2001
  5. 5. Both are Ecosystems Semantic Web: interaction between machines Social Web: conversations between people
  6. 6. Integrated intelligence Individual intelligence Computer intelligence Integrated: Collective intelligence (networked)‫‏‬ Image: uscfan
  7. 7. Technology • Core is information Information
  8. 8. • Core is interaction Ref: Esko Kilpi (2006) TechnologyInteraction
  9. 9. Web 2.0
  10. 10. Photo: ulterior epicure Recipe for Web 2.0 Web 2.0
  11. 11. Web as a platform Photo: Christopher Chan
  12. 12. Software above a single device Photo: *One*
  13. 13. Data as the new Intel inside Photo: _fabrizio_
  14. 14. Photo: Donna Cymek Harnessing collective intellgence
  15. 15. Photo: ulterior epicure Lightweight business models, e.g. SaaS (Software as a Service)
  16. 16. Rich Internet Applications (RIA, AJAX)
  17. 17. Leveraging the Long Tail Ref: Chris Anderson Sales Products Head (20%) Tail (80%) Signal vs. noise Required filtering power
  18. 18. Photo: Don J. McCrady 2. What are the new business models?
  19. 19. Typical business models ■ Create a large/focused niche user community ■ Sell API access (Google) ■ Sell services to a large group of SMEs (Salesforce.com) ■ Sell data to partners (Facebook? :)) ■ Get a revenue share from transactions (eBay) ■ Sell advertisements (MySpace) ■ Sell value-added platform (AmazonWeb Services) ■ Freemium - Sell premium memberships (Livejournal) ■ Sell your company (Youtube)
  20. 20. Sell your company?
  21. 21. Get your feet on the ground Photo: Fernando A.
  22. 22. Photo: Big-E-Mr-G Get 2 million € in investment?
  23. 23. Photo: Big-E-Mr-G Wake up. Most Web 2.0 startups get to the market with 200k€ or less
  24. 24. How?
  25. 25. Expansion strategies 1. Create an API (Application Programming Interface) 2. Distribute source as Open Source (e.g. Sugar CRM) 3. Create developer ecosystem (e.g.Amazon) 4. Create browser plugins (e.g. del.icio.us) 5. Create plugins for other platforms (e.g. blogging) 6. Create embeddable widgets (e.g. Meebo) 7. Advertise on Google AdSense (e.g. everyone) 8. Utilize SEO (search engine optimization)
  26. 26. Even more importantly.... Give something valuable for free
  27. 27. Example revenue of X ■ 40% premium memberships ■ 42% Google Adsense ■ 10% selling one ad directly to advertiser ■ 5% text link ads ■ 3% referall money from amazon.com and linkshare Minimal self funded startup costs, focus on a specific community, value created to the user base through a clever combination of services driving repeat visits and premium subscription, viral growth, advertising revenues and eventually (hopefully juicy) sponsorships.
  28. 28. Photo: Don J. McCrady 3. How to position yourself?
  29. 29. Concept analysis Development Simplicity Iterative Value Social Emotional Practical Time Long term Immediate Content People Automation Attention Extendability Regular Occasional Interaction Personal Features Improved on A. Bäck, S. Vainikainen
  30. 30. Usage analysis Identity building Publicity Team Community Loose network Content Commercial / professional User-generated Aggregation / acquisition Contribution Play Participation Hierarchical Creation Alone Social networking Improved on A. Bäck, S. Vainikainen Privacy Associative Activity Visibility
  31. 31. Business analysis SMEs Public sector Online service Freemium Offline version Expansion Plugins Web services (APIs) Subscription / SAS Value-added services Loss-leader Revenue Source code Advertising Local installation Large companies Consumers Deep linking Availability Market
  32. 32. Typical Web 2.0 problems 1. Spam and scammers 2. Inability to scale business after reaching a certain number of users 3. Crowds flee to the next cool service 4. Many sites competing on user attention 5. House-of-cards business platform Photo: Mike9Alive
  33. 33. Photo: Don J. McCrady 4. How to drive users?
  34. 34. Photo: JJay Top-down innovations Bottom-up innovations Source of ideas Management and your own organization Customers and users Drivers Internal resources, products, positioning Deep understanding of customer needs Interaction Structured and managed Spontaneus and non-linear Strategy Go to the customer Invite customer to participate Processes Linear and strictly defined Emergent and serendipic Methods Market research, surveys, focus groups Communities, crowdsourcing, peer-production and social media
  35. 35. Social objects connect people ContinuousOccasional Beat Hum Particle Wave Videos Blog posts Photos Microblogging Presence Ref: Jyri Engeström 1. Define your object 2. Define key verb 3. Make your objects discoverable 4. Turn invitations into gifts 5. Charge publishers, not spectators
  36. 36. Low Threshold High Engagement Reading Rating Tagging Commenting Subscribing Linking Recommending Reflecting Collaborating Moderating Ownership Collaborative Intelligence (explicit creation) Collective Intelligence (implicit creation) Power Law of Participation Ref: Teemu Arina, based on Ross Mayfield
  37. 37. Participation Inequality Ref: Bradley Horowitz, Jacob Nielsen 1% creators 100% consumers 10% synthesizers
  38. 38. Organize information with tags
  39. 39. Cognitive analysis of tagging Ref: Rashmi Sinha Stage 0 Object worth remembering Stage 1 Multiple concepts are activated Categorize it! Note the chosen concept Stage 2 Choose one of the activated concepts Analysis-Paralysis! Stage 0 Object worth remembering Stage 1 Multiple concepts are activated Tag it! Write down activated concepts Categorization Tags
  40. 40. Recommendations based on user behaviour
  41. 41. Broaden tags with user contributions
  42. 42. Get user-generated content that can be aggregated, not just comments
  43. 43. Target advertising based on user interests
  44. 44. Photo: Don J. McCrady 5. How to be innovative
  45. 45. Read these
  46. 46. Then start the engines, fellas
  47. 47. Virtually everything new seems to come from the 20 percent of their time engineers here are expected to spend on side projects. They certainly don't come out of the management team. Eric Schmidt Google CEO Kuva: GustavoG
  48. 48. Challenge ■ Globalization forces organizations to get into innovation- based competition and networking: ■ Get products faster to market ■ Increase ROI of R&D investments ■ Increase transparency of product development ■ Involve customers through open innovation ■ Support continuous learning and knowledge sharing ■ Get into networked collaboration (outsourcing etc.) Source: Manuel Castells
  49. 49. Ways to innovate Culture Organization Design Experience Business Models Technology Platforms Product Service Source: Pekka Himanen
  50. 50. Types of innovation ■ Technological innovation Remixing old in new ways (mountain bikes) or inventing new technologies ■ Business innovation Supply chains (Walmart), processes (Toyota), business models (Dell), brands (Nike) ■ Product/service innovation Products (Skype), marketing (Apple), services (Salesforce.com) ■ Design innovation Look & feel (Apple), emotion & experience design (Idean) ■ Cultural innovation Leadership (Linux), organization (Google), transparency (Seismic) Source: Pekka Himanen
  51. 51. Innovation through experience design Data (products) Infor- mation Know- ledge Wisdom Stimulus Aha! Context Experience • Presentation • Information • Parameters • Comparison • Testing • Conversation • Narratives • Combination • Research • Retrospect • Interpretation • Remixing
  52. 52. Photo: Don J. McCrady 6. Where is the money?
  53. 53. New paradigm: Enterprise 2.0 “Enterprise 2.0 is the use of emergent social software platforms within companies, or between companies and their partners or customers." Andrew McAfee Kuva: GustavoG
  54. 54. Photo: JJay Enterprise 1.0 Enterprise 2.0 Hierarchical organization Flat organization Automation in the core Interaction in the core Tree representation Associative representation Bureaucracy Agility Static and rigid Dynamic and adaptive IT driven technology User driven technology Feature-driven value User-driven value Top-down Bottom-up Centralized Distributed Hand-picked teams Self-organizing teams Silos Open borders Controlled communication Transparency Taxonomies Folksonomies Complexity Simplicity Closed standards Open standards
  55. 55. Image: Felippe Torres Ultimate challenge In the future, organizations will compete on: Who can create a rich user community where users interact with each other to improve products
  56. 56. Crowdsourcing Taking a job traditionally performed by an employee or contractor, and outsourcing it to an undefined, generally large group of people Photo: Hugo*
  57. 57. Dell IdeaStorm
  58. 58. Innocentive
  59. 59. CASE
  60. 60. Anatomy of an Enterprise 2.0 Skeleton Automation, Real- time processes, Operative technologies - Back- bone for business processes Ref: Teemu Arina, Illustration: Lotta Viitaniemi Senses Blogs, Microblogs, Social bookmarking - Reflection in and on action Nervous system Feeds, Search, APIs - Sharing, discovering and tapping into reflections Brain Wikis, tagging - Connecting and remixing reflectons Blood system Social networking, Real-time communications, Network analysis - Optimizing interaction flow
  61. 61. Photo: tashland Command & Control becomes Collaboration and Communication
  62. 62. Photo: Tanakawho Yritys 2.0-kirja tulossa! http://www.yritys20.com Contact info CEO Teemu Arina Dicole Oy 050 – 555 7636 teemu@dicole.com Blogi: tarina.blogging.fi www.dicole.com
  63. 63. • Naked Conversations: How Blogs are Changing the Way Businesses Talk with Customers (Robert Scoble) • The Medium is the Message (Marshall McLuhan) • Complex Responsive Processes in Organizations: Learning and Knowledge Creation (Ralph Stacey) • The World Is Flat:A Brief History of the Twenty-first Century (Thomas Friedman) • Informal Learning: Rediscovering the Natural Pathways That Inspire Innovation and Performance (Jay Cross) • Deschooling Society (Ivan Illich) • The Innovator's Solution: Creating and Sustaining Successful Growth (Clayton Christensen) • The Cluetrain Manifesto:The End of Business as Usual (Christopher Locke) • Convergence Culture:Where Old and New Media Collide (Henry Jenkins) • The Wealth of Networks: How Social Production Transforms Markets and Freedom (Yochai Benkler) • Open Business Models: How to Thrive in the New Innovation Landscape (Henry Chesbrough) • The Long Tail:Why the Future of Business is Selling Less of More (Chris Anderson) • Wikinomics: How Mass Collaboration Changes Everything (Don Tapscott) • Seeing What's Next: Using Theories of Innovation to Predict Industry Change (Clayton Christensen) • Technological Revolutions and Financial Capital:The Dynamics of Bubbles and Golden Ages (Carlota Perez) • The Social Life of Information (John Seely Brown) • The Wisdom of Crowds (James Surowiecki) • Complexity and Innovation in Organizations (Jose Fonseca) Reading Photo: Tanakawho
  1. A particular slide catching your eye?

    Clipping is a handy way to collect important slides you want to go back to later.

×