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Web 2.0
 

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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Web 2.0 Web 2.0 Presentation Transcript

  • WEB 2.0 The web is certainly making an impact somewhere near you. Laurent HAUG [email_address] www.liftconference.com
  • Table of contents
    • Defining web 2.0
    • What’s happening?
    • You’re in (try to enjoy the ride)
    • Business 2.0
    • What’s next?
  • DEFINING WEB 2.0 A billion people, a billion definitions.
  • http://www.oreillynet.com/lpt/a/6228
  • 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
  • 1.0 <-> 2.0
  • 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
  • A disputed term
    • No real boundaries
    • Multiple interpretations
    • Defining a moving concept
    • Web can’t be versioned
    • Original vision of the web
  • 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
  • WHAT’S HAPPENING (AND WHY?) Why you can’t not care about the internet anymore
  • New players
  • ONLINE $
  • 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
  • NEW TOOLS AND INFRASTRUCTURE
  • Tools for the people
    • Blogs
    • Technorati
    • coComment
    • Wikis
    • Digg
    • CMS
    • Sourceforge
    • IM
    • Chat
    • ADSL
    • RSS
    • APIs
    • ASP
    • ROR/LAMP
    • Ajax
    • Tags
  • CONNECTED PEOPLE
  • 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
    • 10-15%user growth
    • 20-30%usage growth
    • 30%+ monetization growth
    • Source: The State of the Internet, Morgan Stanley
  •  
  • GETTING TO MARKET IS EASY
  • 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.
  • 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/
  •  
  • scoble
  • Techcrunch
  •  
  • [email_address] www.liftconference.com technorati technorati.com/search/cocomment
  •  
  • BUZZWORD?
  • 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
  • New rules
    • New balance of power
    • New workforce
    • New tools
    • New competition
    • New business models
    • New lifestyle
    • New environment
  • New players
    • GYM
    • Amazon
    • Ebay
    • Wikipedia
    • Feedburner
    • Flickr, blogger, Skype, technorati, techcrunch, mybloglog, cocomment, weblogs inc, numsum, writely, etc etc…
  • New opportunities
    • New possibilities
    • New audiences
    • New markets
    • New worlds
  • New challenges
    • Share control
    • Competition everywhere
    • Ideas everywhere
    • Privacy / transparency
    • Sustainability of business models
    • Bubble?
    • etc…
  • 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
  • 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.
  • 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)
  •  
  • Google bombs
  • 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
  • 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
  • The long tail
  • ONE THING TO REMEMBER
  • 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
  • YOU’RE IN You are already making the new web better.
  • Passive contributions
    • Every time you search, you make Google better
    • Amazon
    • Gmail
    • Analytics
  • Active contributions
    • Blogging
    • Commenting
    • Tagging
    • Digging
    • Wikiing
  • People are talking about you
    • Technorati
    • coComment
    • Video/audio search
    • Flickr
  • BUSINESS 2.0 Buckle up
  • A few examples
    • User generated content
    • Communities
    • Co-creation
    • Outsourcing
    • Global microbrand
    • 3D
  • Youtube
    • User generated content
    • Targeted ads
    • See also: vPod, DailyMotion, mySpace
  • 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/
  • Lego
    • Co-creation with customer
    • Lego mindstorm
    • And also: Lafraise, Microsoft, Google.
  • 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.
  • 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”
  • World of warcraft
    • Persistent 3D world
    • Parallel economy
    • See also: Second Life, Playstation home, Xbox live
  • WEB 2.0 BUSINESS MODELS
  • 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
    • Meetic
    • Freemium / subscription based model
    • Millions of people
    • Moved past early reserves (now it’s the normal behaviour)
    Freemium
    • Action based advertising
    • Netvibes, Kelkoo
    • Empty toolbox
    • Built on top of the web
    CPA
  • CPM
    • Mass (but targeted) display advertising
    • Joost, feedburner
    • Precise knowledge of audience location and behavior
  • Revenue sharing
    • Make money on users’ content
    • Revver
    • Flickr camera info
    • Data mining
    • Creating value from data without violating privacy
    Datamining
  • BEYOND WEB2.0
  • 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