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Web 2.0

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A presentation I gave at McKinsey to introduce web 2.0 and it's impact on business.

A presentation I gave at McKinsey to introduce web 2.0 and it's impact on business.

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  • Transcript

    • 1. WEB 2.0 The web is certainly making an impact somewhere near you. Laurent HAUG [email_address] www.liftconference.com
    • 2. Table of contents
      • Defining web 2.0
      • What’s happening?
      • You’re in (try to enjoy the ride)
      • Business 2.0
      • What’s next?
    • 3. DEFINING WEB 2.0 A billion people, a billion definitions.
    • 4. http://www.oreillynet.com/lpt/a/6228
    • 5. Tim O ’Reilly’s Web 2.0
      • The Web As Platform
      • Harnessing Collective Intelligence
      • Data is the Next Intel Inside
      • End of the Software Release Cycle
      • Lightweight Programming Models
      • Software Above the Level of a Single Device
      • Rich User Experiences
    • 6. 1.0 <-> 2.0
    • 7. Core Competencies of Web 2.0 Companies
      • Services, not packaged software.
      • Control over unique, hard-to-recreate data sources that get richer as more people use them
      • Trusting users as co-developers
      • Harnessing collective intelligence
      • Leveraging the long tail through customer self-service
      • Lightweight user interfaces, development models, AND business models
      • Source: O’Reilly
    • 8. A disputed term
      • No real boundaries
      • Multiple interpretations
      • Defining a moving concept
      • Web can’t be versioned
      • Original vision of the web
    • 9. A disputed term
      • World Economic Forum Annual Meeting 2007 - The Impact of Web 2.0 (check the video on videos.google.com)
        • “ Web 2.0 definitely is a buzzword, and it’s overused. But the movement is only starting. That movement is about leveraging the power of people” CHAD HURLEY
        • “ What we’re seeing is a return to the roots of the web.” CATARINA FAKE
        • Web 2.0 “is enabling a fundamental shift in power that really is giving power to the consumer” MARK PARKER
        • “ It’s a way to collaborate with your customers, to allow them to co-create with you”. PETER SCHWARTZ
    • 10. WHAT’S HAPPENING (AND WHY?) Why you can’t not care about the internet anymore
    • 11. New players
    • 12. ONLINE $
    • 13. The end of the 50% of useless ads
      • Total U.S. Internet Spending (M$)
        • 2000: 7’134
        • 2006: 15’998
      • Search Advertising
        • 2000: 286
        • 2006: 6’681
      • 8% of total US advertising online in 2006E, 13%+ within 5 years.
      Source: The State of the Internet, Morgan Stanley
    • 14. NEW TOOLS AND INFRASTRUCTURE
    • 15. Tools for the people
      • Blogs
      • Technorati
      • coComment
      • Wikis
      • Digg
      • CMS
      • Sourceforge
      • IM
      • Chat
      • ADSL
      • RSS
      • APIs
      • ASP
      • ROR/LAMP
      • Ajax
      • Tags
    • 16. CONNECTED PEOPLE
    • 17. From an elite/geeky media to grandma’s living room Source: The State of the Internet, Morgan Stanley Mobile Internet 1’000+ 1’343 2007 600+ 1’191 2006 300+ 1’039 2005
    • 18.
      • 10-15%user growth
      • 20-30%usage growth
      • 30%+ monetization growth
      • Source: The State of the Internet, Morgan Stanley
    • 19.  
    • 20. GETTING TO MARKET IS EASY
    • 21. Idea = business
      • Cheap hardware
      • Cheap platforms (Linux, Apache)
      • Open source = you never start from scratch
      • Coders everywhere
      • Money, reputation, location, network don’t matter as much as before.
    • 22. Startuping is cheap
      • DropSend: Build $48,012 / Monthly $3,625
      • Freshbooks Build $20,000 / Monthly $46,000
      • Maya’s Mom: Build $70,000 / Monthly $30,000
      • Mobissimo: Build $60,000 / Monthly $150,000
      • Wesabe: Build $200,000 / Monthly: $3,000
      • http://thebankwatch.com/2007/03/15/how-much-does-it-cost-to-build-the-best-web-apps-today-and-how-should-banks-react/
    • 23.  
    • 24. scoble
    • 25. Techcrunch
    • 26.  
    • 27. [email_address] www.liftconference.com technorati technorati.com/search/cocomment
    • 28.  
    • 29. BUZZWORD?
    • 30. A new reality
      • Customer as the new center of gravity
      • Global competition, open world
      • New markets (china, russia, senior citizens, long tail) and spaces (online worlds, TVoip, voip, advertising, work collaboration)
      • New audiences
      • Impact on all aspects of business
    • 31. New rules
      • New balance of power
      • New workforce
      • New tools
      • New competition
      • New business models
      • New lifestyle
      • New environment
    • 32. New players
      • GYM
      • Amazon
      • Ebay
      • Wikipedia
      • Feedburner
      • Flickr, blogger, Skype, technorati, techcrunch, mybloglog, cocomment, weblogs inc, numsum, writely, etc etc…
    • 33. New opportunities
      • New possibilities
      • New audiences
      • New markets
      • New worlds
    • 34. New challenges
      • Share control
      • Competition everywhere
      • Ideas everywhere
      • Privacy / transparency
      • Sustainability of business models
      • Bubble?
      • etc…
    • 35. New concepts and ideas
      • Markets are conversations
      • Customer is king
      • Folksonomies
      • Wisdom of the crowds
      • Crowdsourcing
      • Network effect
      • Open is sustainable
      • Co-creation
      • Social Network
      • Perpetual beta
      • Open source
      • Mashups
      • Long tail
      • The world is flat
    • 36. Markets are conversations
      • Micro publication
        • Blogs, podcasting, vlogs
        • Decentralization of information gathering
        • Barrier to entry is talent
        • Audiences are up for grab
      • Somebody out there is talking about you
      • Nobody can control the online conversation
      • “ The cluetrain manifesto”, Doc Searls, David Weinberger, etc…
      • “ Naked conversations”, Robert Scoble and Shel Israel.
    • 37. Customer is king (no kidding!)
      • People want to participate and have the tools to do so.
      • Trust in peers, not in marketing discourse.
      • People can now force a company to change it’s path (Sony, Kryptonite, Broadcast flag, Vichy, Google bombs)
    • 38.  
    • 39. Google bombs
    • 40. The world is flat Thomas Friedman (NYT columnist) “ the world is becoming flat. Several technological and political forces have converged, and that has produced a global, Web-enabled playing field that allows for multiple forms of collaboration without regard to geography or distance - or soon, even language.” http://www.wired.com/wired/archive/13.05/friedman_pr.html
    • 41. Friedman’s 10 Great Levelers
      • Fall of the Berlin Wall
      • Netscape IPO
      • Work flow software
      • Open-sourcing
      • Outsourcing
      • Offshoring
      • Supply-chaining
      • Insourcing
      • In-forming
      • Wireless
    • 42. The long tail
    • 43. ONE THING TO REMEMBER
    • 44. The web is out of its silo
      • It is having an impact on your market, your strategy, your people, your competitors, your processes, etc..
      • Take it out of the IT department.
      • www.liftconference.com
    • 45. YOU’RE IN You are already making the new web better.
    • 46. Passive contributions
      • Every time you search, you make Google better
      • Amazon
      • Gmail
      • Analytics
    • 47. Active contributions
      • Blogging
      • Commenting
      • Tagging
      • Digging
      • Wikiing
    • 48. People are talking about you
      • Technorati
      • coComment
      • Video/audio search
      • Flickr
    • 49. BUSINESS 2.0 Buckle up
    • 50. A few examples
      • User generated content
      • Communities
      • Co-creation
      • Outsourcing
      • Global microbrand
      • 3D
    • 51. Youtube
      • User generated content
      • Targeted ads
      • See also: vPod, DailyMotion, mySpace
    • 52. MTV
      • Following changes in audience habits
      • Moving from TV to community
      • Complete change in business model
      • Complete change in competitive landscape
      • See also: Le Monde, Guardian, BBC
      • BREAKING NEWS: Read the latest State of the Media 2007 report! http://www.stateofthemedia.org/2007/
    • 53. Lego
      • Co-creation with customer
      • Lego mindstorm
      • And also: Lafraise, Microsoft, Google.
    • 54. L’oréal
      • Outsourcing of critical (and fun) tasks to customers
      • Focus on practical side
      • current_TV ( tinyurl.com/25kr3v )
      • See also: IBM brainstorm, Apple, Wikipedia.
    • 55. Stormhoek
      • Global microbrands, leveraging the long tail
      • And also: Moo.com, 37signals, English Cut, Thingamy, TVBgone, Cafepress, Stardoll
        • “ most of our members are girls and boys between the ages of 7 and 17. Stardoll is one of few places on the Internet developed with an emphasis on girls’ self-expression and fantasy fashion play”
    • 56. World of warcraft
      • Persistent 3D world
      • Parallel economy
      • See also: Second Life, Playstation home, Xbox live
    • 57. WEB 2.0 BUSINESS MODELS
    • 58. Service based
      • Moo.com
      • Service model
      • Probably 2-3 months of coding
      • Built on top of Flickr
      • 25$ for 100 business cards
      • Most viral product ever
    • 59.
      • Meetic
      • Freemium / subscription based model
      • Millions of people
      • Moved past early reserves (now it’s the normal behaviour)
      Freemium
    • 60.
      • Action based advertising
      • Netvibes, Kelkoo
      • Empty toolbox
      • Built on top of the web
      CPA
    • 61. CPM
      • Mass (but targeted) display advertising
      • Joost, feedburner
      • Precise knowledge of audience location and behavior
    • 62. Revenue sharing
      • Make money on users’ content
      • Revver
    • 63.
      • Flickr camera info
      • Data mining
      • Creating value from data without violating privacy
      Datamining
    • 64. BEYOND WEB2.0
    • 65. If I could be sure of this slide, I would be in the Bahamas right now
      • Intention economy
      • Mobile
      • New centers of gravity (post, infosnack)
      • New kings
      • 3D
      • Communicating objects
      • Semantic web