The Evolutionary Web
Managerial Economics in the
Web 2.0 World and Beyond
Executive MBA Class 2008
Chance favors only the prepared mind – Louis Pasteur

The Evolutionary Web
• The mostly read only web
• 45 Million Global Users – 1996
• Focused on Companies
• Home Pages
• Owning Content
• Brittanica Online
• HTML, Portals
• Web Forms
• Directories (taxonomy)
• Netscape, eBay
• Page Views
• Advertising
The customer is monetized

The New World of Collaboration
• Openness – MIT’S Open Course Ware.
• Peering – Open Source Linux.
• Sharing – VoIP enablement, Multimedia
platform, Mobility e.g. Skype, iPhone
• Hearing – WOMM, NPS e.g. Starbucks
• Acting Globally and not just as an MNC.
Toyota/Scion’s steps towards this Vision.
Open Source from Microsoft ???????

Web 2.0 & it’s Genesis
• Web 0.0 - Technology
– Was Technology Oriented
– Enablement of Application Design on www
– Informative, Expense side of the Balance Sheet, No ROI
Realization
• Web 1.0 - Commerce
– Popularly known as eCommerce
– Major force in 90’s for trade/business over the web
– ROI Realization
– Core competencies of many new-age organization – Amazon,
eBay etc.
• Web 2.0 – People and Communities
– Information Age
– A movement for self expression

Web 2.0 & it’s Genesis
• The term ‘Web 2.0’ introduced by Tim O’Reilly at
a conference in 2004
• ‘Web 2.0’ - an improved form of the World Wide
Web
• Emphasizing tools/platforms that enable users to
tag, blog, comment, modify, augment, rank etc.
• Notion of The ‘Participatory Web’

Web 2.0 - A Primer
• Recipe for Web 2.0:
– Web as a platform
– Software above a single device
– Data as the new Intel inside
– Harnessing collective intelligence
– Lightweight business models, e.g. SaaS
– Rich Internet Applications (RIA, AJAX, RoR)
– Mashups (RSS)

Web 2.0 Key Principles
• Read vs.
Read & Write

Web 2.0 – Key Principles
User
Generated
Content

Web 2.0 – Key Principles
Experts
vs.
Wisdom of Crowds

Web 2.0- Key Principles
80:20
V/s
The Long Tail

Web 2.0 - Key Principles
…the content
comes to you…

Web 2.0 Landscape

The Evolutionary Web
• The mostly read only web • The wildly read/write web
• 45 Million Global Users – 1996 • 1 Billion Global Users – 2006
• Focused on Companies • Focused on Communities
• Home Pages • Blogs
• Owning Content • Sharing Content
• Britannica Online • Wilkipedia
• HTML, Portals • XML, AJAX, RSS
• Web Forms • Web Applications/Services
• Directories (taxonomy) • Tagging (folksonomy)
• Netscape, eBay • Google, Facebook
• Page Views • CPC/CPM
• Advertising • Word of Mouth
The customer strikes back
The customer is monetized

Global Business 2.0 Models
Step 1 : Create a large/focused niche user community
Step 2 : Monetize once the community reaches critical
mass
- Sell special services targeted at community (LinkedIn)
- Sell services to a large group of SMEs (Salesforce.com)
- Sell data to partners (Facebook)
- Get a revenue share from transactions (eBay)
- Sell advertisements (Google Adwords)
- Freemium: Sell premium memberships (Flickr)
- Sell your company (Youtube)

Should organizations even care
about Web 2.0 ???

The world we live in..
…the consumer is in control

…….they have unlimited options

…and are avoiding advertising
Pop-up Blocker Do Not Call Registry

Companies must pay attention to the
Participation culture
113 million -
Blogs tracked by Technorati.com

Who do Consumers Trust ?
The CEO / Ad agencies /
marketers
Or
“A person like Me or You”
i.e. other consumers or
peers
2 - New blogs posted every
second

Web 2.0 has put consumers in
control of the conversation
Every consumer is…

…a Publisher
…a Disc Jockey
…a Critic
…a Movie Director
…a Networker
…an ENTREPRENEUR

… a broadcaster
… and socially hyper-aware

…if organizations want to
participate in this
conversation, they must
acknowledge and facilitate
consumer control...

Enterprise 2.0 Trends
How organisations can harness Web 2.0 ?

Enterprise 2.0 Attributes
• Application of Web 2.0 within the
enterprise to solve / improve
internal work practices
• Collection of Web 2.0
tools/platforms for increased
productivity and information
sharing
• Harnessing of COLLECTIVE
employee and customer
intelligence
• e.g. blogs, wikis, mash-ups,
project management tools,
Software as a service (SAAS)
• Driver: remote collaboration
requirements across different
locations / time zones

Anatomy of Enterprise 2.0

Enterprise 2.0 Opportunities
• Social Marketing/PR
• 360 Degree Real Time Feedback Mechanisms
• NPS – Net Promoter Scores – Customer WOM
• Direct Sales
• Brand Building
– promotions, advertising on social networks, events
– referrals, lead generation
• Mediated Marketing Research
• Viral Marketing

So what comes next ????

The Thing about Predictions...
\"Computers in the future may weigh no more than
1.5 tons.\"
Popular Mechanics, forecasting the relentless march of science, 1949
\"I think there is a world market for maybe five computers.\"
Thomas Watson, chairman of IBM, 1943
\"640K ought to be enough for anybody.\"
Bill Gates, 1981 apocryphal
\"There is no reason anyone would want a computer in
their home.\"
Ken Olson, president, chairman and founder of Digital Equipment Corp., 1977

Crystal Ball Gazing
• What is beyond Web 2.0 ?
Pervasive Mobile Technology
Artificial Intelligence
Speech Technologies
The Web as an Open Source Database
The Web without Browsers
The Semantic Web
Cloud Computing
Machines taking over our entire thinking??

The Semantic Web
• A web of data that can be processed directly
and indirectly by machines – Tim Berners
Lee
RDF – Resource Description Framework
OWL- Ontology Web Language
CoIN-Context InterChange
COWL- Context OWL
RML – Rule ML (Extension of HTML, XML)

The Evolutionary Web
• The read/write/execute web
• The mostly read only web • The wildly read/write web
• ?? Billion Global Users – 2010
• 45 Million Global Users – 1996 • 1 Billion Global Users – 2006
• Focused on Individuals
• Focused on Companies • Focused on Communities
• Lifestreams, Mobility
• Home Pages • Blogs
• Consolidating Dynamic Content
• Owning Content • Sharing Content
• The Semantic Web
• Britannica Online • Wilkipedia
• Widgets; Drag/Drop Mashups
• HTML, Portals • XML, AJAX, RSS
• Open Interactive Databases
• Web Forms • Web Applications/Services
• User Behavior (me-onomy)
• Directories (taxonomy) • Tagging (folksonomy)
• iGoogle, Netvibes
• Netscape, eBay • Google, Facebook
• User Engagement
• Page Views • CPC/CPM
• Advertainment
• Advertising • Word of Mouth
• Enterprise Mobility
The customer strikes back The customer customizes
The customer is monetized
The age of the Muppies (Mobile Yuppies) has Dawned

The Evolutionary Web

If You Remember just ONE Thing …
Whatever you do,
Make sure it’s worth
talking about –
And have FUN doing it.

Thank You