What Is Web 2.0?

Slide 1: What Is Web 2.0? Tim O’Reilly O’Reilly Media, Inc. www.oreilly.com Web 2.0 Expo Berlin November 5, 2007

Slide 2: We’re best known as a book publisher 2

Slide 3: What We Really Do At O'Reilly Change the world by spreading the knowledge of innovators 3

Slide 4: How we do it • Find interesting technologies and people innovating from the edge • Amplify their effectiveness by spreading the information needed for others to follow them. • Books 4

Slide 5: How we do it • Find interesting technologies and people innovating from the edge • Amplify their effectiveness by spreading the information needed for others to follow them. • Books, Conferences 5

Slide 6: How we do it • Find interesting technologies and people innovating from the edge • Amplify their effectiveness by spreading the information needed for others to follow them. • Books, Conferences, Online 6

Slide 7: MAKE: Magazine “Martha Stewart for Geeks” -- Newsweek 7

Slide 8: Watch the Alpha Geeks • New technologies first exploited by hackers, then entrepreneurs, then platform players • Three examples – Wireless community networks predict universal Wi-Fi – Screen scraping predicts web services and the internet as platform – “The pedal powered internet” predicts new focus on energy Rob Flickenger and his potato chip can antenna 8

Slide 9: "The future is here. It's just not evenly distributed yet." --William Gibson

Slide 10: This is not new 10

Slide 11: Nor is it limited to technology... 11

Slide 12: New Ad-Hoc Comms Networks • Brad Templeton’s burning man phone done with 802.11 and IP telephony 12

Slide 13: We look at people having fun with technology ... and think about what it means 13

Slide 14: It usually ends up meaning something big for business 14

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Slide 16: What People Still Don’t Understand about Web 2.0! Tim O’Reilly O’Reilly Media, Inc. www.oreilly.com Web 2.0 Expo Berlin November 5, 2007

Slide 17: User Generated Openness Sharing Content Social Blogs Networks Wikis 17

Slide 18: User Generated Openness Sharing Content Social Blogs Networks Wikis Love Peace 18

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Slide 20: Web 2.0 is turning into a battleground of tooth and claw 20

Slide 21: Harnessing Collective Intelligence Every true Web 2.0 company is building a database whose value grows in proportion to the number of participants -- that is, a network-effect-driven data lock-in -- with accelerating returns to the winners. 21

Slide 22: “Red Shift” 22

Slide 23: Red Shift in Action 23

Slide 24: Understanding Web 2.0 24

Slide 25: 1. Users Add Value The key to competitive advantage in internet applications is the extent to which users add their own value to that which you provide. 25

Slide 26: Every time someone makes a web link, they contribute A critical mass of buyers and sellers makes it hard for others to enter the market Embraced and extended the product catalog Self-service classified ads - the users do all the work Viral distribution, user creation, user curation 26

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Slide 29: The opportunity was in finding new meaning in user-generated data, and turning that meaning into real- time user-facing services 29

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Slide 31: Some Lessons from Google • Harnesses users without them even knowing it • Search relentlessly focused on relevance - All available data mined to give better search results • Advertising serves the user - unobtrusive • Top ad position doesn’t go to highest bidder but to bid times expected click-through-rate • Increasing returns in both improved search results and ad performance help Google pull further and further ahead in search 31

Slide 32: 2. Data is the Next “Intel Inside” Applications are increasingly data-driven. Therefore: Owning a unique, hard-to-recreate source of data may lead to an Intel-style single-source competitive advantage. 32

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Slide 34: Didn’t realize that users add value! 33

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Slide 40: Key Questions to Ask Yourself • What useful sources of data do you own and control? • What user-facing services can you build against this data? • How can you make these data sources get better automatically as customers use them? 38

Slide 41: The Enterprise Opportunity 39

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Slide 43: Turning 1.0 into 2.0 Web 2.0 Your Bank Massive Data Centers Yes Yes Data from customers Yes Yes Data gets better all the time Yes Yes Data mining of customer Yes Yes behavior Real time user-facing Yes No services based on that data 41

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Slide 47: 3. A Platform Beats an Application Every Time •Lotus 1-2-3 •WordPerfect •Netscape Navigator 45

Slide 48: 3. A Platform Beats an Application Every Time •Lotus 1-2-3 Microsoft Excel •WordPerfect Microsoft Word •Netscape Internet Explorer Microsoft Navigator 45

Slide 49: 3. A Platform Beats an Application Every Time Microsoft Excel Microsoft Word Microsoft Internet Explorer 45

Slide 50: Two Types of Platform • One Ring to Rule Them All • Small Pieces Loosely Joined 46

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Slide 54: Some Things I Want From Social Networking • I want it to reflect my REAL social relationships (mine my phone and email) • I want it to help me manage those contacts (how to reach them, updated status) • I want to manage groups of people • I want it to recognize asymmetry in relationships • I want fine grained control over what I see and what I ignore • I want to discover interesting people 50

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Slide 59: Why Should I Have To Confirm? • geni.com already knows that Sean is my brother • My company directory already knows who works at O’Reilly • Google knows that I worked with Danese Cooper on open source Java and that she has spoken at many of my conferences • Amazon knows who’s written books for me 55

Slide 60: Turning 1.0 into 2.0 Web 2.0 Phone Co Massive Data Centers Yes Yes Data from customers Yes Yes Data gets better all the time Yes Yes Data mining of customer Yes Yes behavior Real time user-facing Yes No services based on that data 56

Slide 61: How Ridiculous Is This? • Dialed calls (last 10) • Received calls (last 10) • Missed calls (last 10) My phone and my email already know who my friends are? Social Networking has a long way to go till it’s the Web 2.0 address book 57

Slide 62: How Ridiculous Is This? • “Will you be my friend?” (Anyone with a communications network - email, phone, or IM - already knows who my friends are!) Where is the Web 2.0 address book? 58

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Slide 64: CRM 2.0, anyone? • There are huge opportunities to reinvent enterprise software along Web 2.0 lines. – Social networking meets CRM – The RSS-enabled supply chain – Enterprise data as the driver of user-facing services 60

Slide 65: The Internet Operating System The subsystems will be data subsystems – Location – Identity – Time – Products – Media types – Relationships – Price – Tags – ??? 61

Slide 66: 4. Software Above the Level of a Single Device The PC is no longer the only access device for internet applications, and applications that are limited to a single device are less valuable than those that are connected. 62

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Slide 68: iTunes perhaps the most important Web 2.0 application to study • User participation made the iPod possible – without free mp3s, digital music wouldn’t have taken off • Three-tier architecture – Device, PC, Web Cloud – PC as management console • Data as the Intel inside: Apple now controls the music industry, embracing and extending via file format. Phone is next? 64

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Slide 70: Sensors and Collective Intelligence We are moving out of the world in which people typing on keyboards will drive collective intelligence applications. Increasingly, applications are driven by new kinds of sensors. 66

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Slide 73: Smart Presence on the Phone 69

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Slide 75: What’s Next? 71

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Slide 79: OpenCV: Computer Vision 75

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Slide 81: “I’m an inventor. I became interested in long term trends because an invention has to make sense in the world in which it is finished, not the world in which it is started.” -Ray Kurzweil 77

Slide 82: For More Information • What is Web 2.0? http://www.oreillynet.com/go/web2 • http://tim.oreilly.com • http://radar.oreilly.com • http://www.makezine.com 78