Web 2.0

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

http://asferramentasweb2.blogspot.com	109
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http://liftlab.com	11
http://rafaela-98-web.blogspot.pt	6
http://favoritos-ana.blogspot.pt	5
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http://edururalweb2.wikispaces.com	3
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Web 2.0

by Laurent Haug

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Web 2.0

by Laurent Haug

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