web2.0 Paradigm and Business Strategy

web2.0 Paradigm and Business Strategy Jo, SanKu web2.0 Evangelist - Perpetual Draft -

web2.0? Bubble2.0? Not2.0?

? web 2.0 Massive & Fast Innovation Power Shift to You

Disruption & Opportunity

web2.0 Paradigm Trend, Issue and Opportunity

Paradigm

You

“ We, the Media”

Social Computing

Long Tail Phenomenon

Web as Platform

Massive Innovation

Hot Issues

Second Life

Online Video

Mobile Web

Utility Computing

Businesses

web2.0 Monetization

New Economy

Advertisement

YOU Distribution Value & Attention You Participate , Linked , and Empowered Services Contents

You Dynamic Community

Link > Talk > Interact > Collaborate We, the Media Social Computing

Creators Synthesizers Consumers 1 10 100 Creators Synthesizers Linked Collaborate Mass Media Me Media We, the Media Social Media Consumers

http://www.micropersuasion.com/2006/03/institutional_p.html Social Computing Relationship Group Network Effect Collective Intelligence

사용자 생성 컨텐츠 일반 컨텐츠 사용자 생성 컨텐츠 일반 컨텐츠 4 천 5 백만 사용자 10 억 명 이상 1996 년 Dion Hinchcliffe 25 만 웹사이트 8 천만 웹사이트 웹 1.0 단방향 : 읽기위주 웹 2.0 양방향 : 읽고 쓰기 ( 컨텐츠 생성 ) 집단지성 집단창작 생태계 2006 년

Why? People Participate, Open, and Share Opinion Leading = Power Information value lasts very long. Web Age Exclusive Ownership = Power Open & Share Value Growing Everybody is Happy Users Empowered We, the Media Social Computing Ecosystem

Flat Hierarchy Authors Publishers/ Distributors Change of Social Structure * Directory vs. Search You Linked as authors, editors, synthesizers, archives, distributors, c onsumers Consumers (End Users)

Samuel R. Smith http://www.intelligentagent.com/archive/Vol3_No1_polisci_smith.html Now, The Network Age The You Age

Easy Reach to Value Search Low Cost of Marketing People Linked (Word of Mouth) Long Tail Phenomena: Three Forces Short Head Long Tail Attention Sales Traffic Democratization Participation Service, Product, Information, Opinion

Web as Platform(XoWeb, Everything Over Web) Technology, Social, Culture, Business, Politics People Contents Data Knowledge Microcontens Syndication We, the Media Social Networking Remixing Services Mashups Services Businesses Ecosystem

Massive and Fast Innovation Time Innovation Online + Offline

Liberation of Information and Tools

Utility Computing

New Money

Mashup, Innovation Grid

API X + API Y = Mashup Z

Mashup Do-it-yourself Web Applications

Metaverse: Mixture of fantasy and reality

Owned and run by it’s “residents”

Opened to the public in 2003

Stated as the "next phase of the Internet's evolution"

The World. The Creations. The Marketplace

The Linden Dollar: 247.5 Linden Dollars per US Dollar

Scion, Toyota's youth-oriented brand, has so far sold about 200 computer-generated cars in Second Life

“ 百聞不如一見” Video, Major Data Type: 60% Traffic

Fast Transition to Video Age

Online Video: RMC, PCC, UGC Short Head Long Tail Body Mbox .paran.com 80 + MagicN/Nate 실시간 유무선 연동 UGC PCC (Proteur Created Content) UGC (User Generated Content) RMC (Ready Made Content) Quality Reputation News Documentary Entertainment Casual Creativity Fun Clipping Street News Hot Issue Information Knowledge Parody “ 만드는 즐거움 , 자기 표현 욕구 충족” “ $$$”

Online Video: IPTV

TV + Internet

P2P

Free world contents

Advertisement model

TV is Dead

Too Busy

Time Share

Many Other Fun

IP >> TV

Online Video: Video Search More Choice != More Satisfaction => Channel, Filter, and Search

Driving Forces in 2007

Low cost

High speed access

More services

Advantage

Ubiquitous

Access is authentication

Personalization

LBS

Limitation

Short head

Screen size

Time constraint

Moving

Mobile Search, Mobile Video

Mobile Web

Write Read 2.0 * write Read 1.0 CDMA Wi B ro HSDPA Read Read & Write Mobile web2.0 * 표현명 @ KT

Utility Computing Software = Electricity Software, Storage, Computing

Cost for Computing Power Initial Cost to Buy Computers (CAPEX) Monthly Used Computing Power Total Cost (Accumulated, OPEX Only) Operation Cost (OPEX) Utility Computing and Storage

Monetize web2.0

Is there any web2.0 startup making lots of money? Don’t mention monetizing by being acquired.

Sure, Not many right now.

Many solid business models in near term

History repeats

Lots of arguments about the Internet businesses in late 1990s

Now. Yahoo, Google, eBay, Amazon

Disruption brings Opportunity and Risk

New Economy

Second Money

Social Capital

Attention Economy

Advertisement: Free Service for Empowered People

Selling = Money + Better Service

Consumer in Control: Made of/by/for Customers

gLOCAL

Advertisement2.0

The major web2.0 Revenue Model

$16B in 2006, $36B in 2010

Advertisement = Marketing + α

Personalized & interactive

Advertisement as content

Video advertisement

Cost Per Action, another disruption

Wibro as an Advertisement Service

Advertisement2.0 Long Tail TV Ad CPA and Personalization

CPA: Cost Per Action

Start Business

Get Money

Pay Cost

iCompany

MeCompany

Mentrepreneur

MyCompany 2.0 Made in/for/by People Fast Innovation Flat Communication Video Mobile Learning by Doing People Value Culture Vision Market Biz Models Services Strategy Risk web2.0 Business Strategy Too Fast Change Mobile Search

web2.0 Business Strategy: Top 11 Rules

Trend Watching, Benchmarking, Prototyping

Focus on YOU

Made in/for/by People (users): Give all control to People, automated self-service

People Power: Open and Connect People. Collective Intelligence and Network Effect

Enterprise2.0

Lightweight & Easy

Everything at the Field at the Same Time

People (Customer) Need, Want, Dream

VC money flow

web Celebrities’ movement

Emerging hot services

Trend Watching, Benchmarking, Prototyping

Outside-In for Watching, Inside-Out for Execution

Don’t join in just because it’s “in” Don’t miss out just because it’s “out”

The State of the Internet, Part 3 : Mary Meeker

Google works for the impact on People , not for money. That is the reason why Google is so successful.

Made in People (Customers)

People is the Killer Application.

Massive and fast change

Give all control to People

Automated self-service

Co-developer with trust

β β β

Enterprise 2.0 web2.0 within the Intranet

Enterprise2.0 Flat Communication through Blog 일터 문화 혁신 ( 수평적 ) 구성원간 커뮤니케이션 활성화 집단지성 활성화 인재 파악 및 등용 신속한 트랜드와칭 및 변화에 대한 빠른 대응 고객의 Loyalty 확보 Made in Customer 지속적이고 성공적인 사업추진 자발적 자기 표현 , 참여 , 공유하는 열린 터전 고객과의 교감

web2.0 Business Strategy: Top 11 Rules

Turn Applications into Open Platforms: Data is the Next Intel Inside.

Join and setup Ecosystem

Connect & Development to Bridge the Gap

Leverage the Long Tail

web2.0 Culture as Core Competence

Learning by Doing

Learning from Doing “ Planning and Strategy are Very Important. But Execution is Everything” “ 흙 다리 도 건너고 본다 .” - 윤종용 사장 “ 쏘고 나서 조준한다 .” Right Resource Intelligence

Do Video *

Video UGC

Video + Wiki vs. 지식인

Video Search

Video Advertisement

Do Social *

Social Network

Social Search

Social Shopping

Social Watch

Do * Advertisement

Do * @ SecondLife

Learning from Doing

Anycall2.0 Anycall as Service Anycall 2.0 Entertainment People Community SamsungMobile.com CC.Anycall.com Services Information AlterEgo Window to the World PC TV Yepp 3 rd Party Service Data and Devices People Community Social Networking Seamless Connection Unique Services Open Open API

web 2.0 web 1.0 web2.0 Business Challenge

Challenge 2.0

Trend vs. Market

Revenue vs. Potential: YouTube

Poker Game?

Solid Business and Revenue Models

Low Entrance Barrier

Overcome Big Players including Three Ones?: Adobe

Glocal Businesses: Korea market is too small.

Total Chaos: Business, Value, Policy, Social Structure

Privacy

Information Overload and Digital Smog

Digital Divide

You Video Mobile We, the Media Long Tail Social Computing Collective Intelligence Internet Singularity Advertisement Massive Innovation Social Networking Social Capital Ecosystem Attention, Trust & Fun Blur Mashup UGC web 2.0 Virtual Life Personalization Ad as Content Decentralization Video Search IPTV Free New Economy Disruption

web 2.0