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Web2 From A Business Perspective
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Web2 From A Business Perspective


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  • 1. Web2.0 from a business perspective July 2008 Niels Goossens Capgemini Consulting
  • 2. Vision 1/24 The second web is all about collaboration and social networking Technovision definition Web 2.0, when used in the context of analysis and promotion of web technology, refers to a perceived second generation of web-based communities and hosted services — such as social- networking sites, wikis and folksonomies — which aim to facilitate collaboration and sharing among users. Wikipedia definition Web 2.0 is a term describing the trend in the use of World Wide Web technology and web design that aims to enhance creativity, information sharing, and, most notably, collaboration among users. definitions 2008 Niels Goossens Capgemini Consulting
  • 3. Vision 2/24 In terms of number of users, Web 2.0 is a success story 2008 Niels Goossens Capgemini Consulting
  • 4. Vision 3/24 Web 2.0 growth exploded between 2005 and 2007 Growth indicators – The number of blogs doubled every five month; – Social networking Web sites usage multiplied year on year; – Peer-to-peer became the largest source of traffic on the Internet; The potential disruptive impact of Internet 2 based technologies, C. Pascu, , january 2007 Some key examples – Videosite Youtube grew from 0 to 50 million users within 2 years; – Social networking site Myspace grew from 2 to 138 million users within 2 years; – Blog tracking site Technorati tracked 70 million blogs in 2007, 113 million in july 2008; – Photosite Flickr went from 500 million to 2,500 million posted photos within a year; 2008 Niels Goossens Capgemini Consulting
  • 5. Vision 4/24 Web 2.0 user statistics still show phenomenal growth in 2007 and 2008 LinkedIn Myspace Flickr Twitter Graphics by Compete, 2008 Niels Goossens Capgemini Consulting
  • 6. Vision 5/24 Web 2.0 applications are easily recognisable 2008 Niels Goossens Capgemini Consulting
  • 7. Vision 6/24 Distinctive features separate web applications from traditional ones Five steps to popularity – An idea is born, typically not at a marketing or product development department; – Idea is converted into (open source/open standard) software; – Software is (in basic form) available to anyone free of charge, as a service on the Web; – People use service to publish and exchange their (sometimes private) data; – Word of mouth influences popularity of service. open and free 2008 Niels Goossens Capgemini Consulting
  • 8. Vision 7/24 Web 2.0 initiatives are often grouped around communities A web community is… – a number of people sharing a virtual environment; – grouped around a common interest; – supported by specific software (a forum, blog or proprietary) – where identity is defined by the number of friends / forum posts one has. communities 2008 Niels Goossens Capgemini Consulting
  • 9. Vision 8/24 The number of Web 2.0 applications continues to grow 2008 Niels Goossens Capgemini Consulting
  • 10. Vision 9/24 Web 2.0 applications centralize users around new concepts New possibilites – Combining data in mashups; – Social networking, sharing profiles; – Collaboration, for example in wikis; – Storing private information on line, and sharing it. Some key web 2.0 examples everything linked 2008 Niels Goossens Capgemini Consulting
  • 11. Vision 10/24 Web 2.0 is all about data 2008 Niels Goossens Capgemini Consulting
  • 12. Vision 11/24 Access your data anywhere, anytime through centralized data hosting Data is at the core of web 2.0 – Data is everywhere, and there is lots of it; – These vast quantities of data need storage; – Data should be accessible from any location or application; – Web 2.0 applications can exchange data by using standards. hosting 2008 Niels Goossens Capgemini Consulting
  • 13. Vision 12/24 To ensure portability, standards for identity and exchange are needed Data portability Data portability is you having your onlife with you everywhere you go online. The DataPortability Project brings this vision to reality by working with others to solve technical challenges (how can we do it?) and human concerns (how can we protect privacy?). Standards for on line identity and data exchange <?xml?> 2008 Niels Goossens Capgemini Consulting
  • 14. Vision 13/24 1. Combining data in mashups. Example: Google Maps 2008 Niels Goossens Capgemini Consulting
  • 15. Vision 14/24 2. Social networking, sharing profiles. Example: MySpace 2008 Niels Goossens Capgemini Consulting
  • 16. Vision 15/24 3. Collaboration. Example: Wikipedia 2008 Niels Goossens Capgemini Consulting
  • 17. Vision 16/24 4. Storing private information on line, and sharing it. Example: Flickr 2008 Niels Goossens Capgemini Consulting
  • 18. Vision 17/24 Making money from web 2.0 is possible 2008 Niels Goossens Capgemini Consulting
  • 19. Vision 18/24 There is no single defined business model for Web 2.0 External moneymakers – Ad revenue (Google); – Freemium (basic version free, pro version not – Flickr Pro); Term coined by Jyri Engeström, Jaiku – Subscriptions (ie. Amazon S3); – Partnerships (Google and Yahoo!); – Leverage for offline versions (Microsoft Office Live); – Actual products that ship (Apple MobileMe); – Hardware to support on line products (Amazon Kindle). In-company moneymakers Forrester found that 22% of the firms surveyed said that they have not measured the business value of Web 2.0 technologies, while 41% said they set value using traditional measurements such as ROI and 27% measured their return through employee productivity surveys. Forrester Web 2.0 on line survey 2008 money Responses from 260 IT professionals 2008 Niels Goossens Capgemini Consulting
  • 20. Vision 19/24 Benefits from implementing Web 2.0 are also qualitative in nature Web 2.0 applications allow you to – Increase employee attrition by using talents to participate in innovation; – Introduce a lean landscape of information systems; – Capture knowledge more efficiently; – Make data easily available and exchangable between departments; – Increase collaboration; – Be more agile and strategically lined up to target your competitors; – Engage your customers directly. innovate 2008 Niels Goossens Capgemini Consulting
  • 21. Vision 20/24 Development of a Web 2.0 strategy is a necessity 2008 Niels Goossens Capgemini Consulting
  • 22. Vision 21/24 Studies show Web 2.0 will impact your business McKinsey: increase investments A McKinsey report shows that more than half of the executives interviewed are pleased with the results of their investments in Internet technologies, and nearly three-quarters say that their companies plan to increase investment in Web 2.0 technologies in the coming years. McKinsey survey on Internet technologies, 2007 responses from 2,847 executives worldwide Forrester: moderate to substantial impact A survey by Forrester Research shows that 63% of interviewed professionals expect Web 2.0 technologies such as blogs, wikis and RSS feeds to have a moderate or substantial impact on their business in the next three years. Forrester Web 2.0 on line survey 2008 Responses from 260 IT professionals impact Gartner: no will not be an option According to a Gartner survey, half of the respondents said they plan to invest in Web 2.0 technologies for the first time in 2008. According to Gartner, saying “no” to the Web 2.0 ecosystem will generally not be an option. Web 2.0 related technologies are the most important trends of 2008. Gartner Executive Programs survey 2008 Responses from 1,500 CIO’s worldwide 2008 Niels Goossens Capgemini Consulting
  • 23. Vision 22/24 Web 2.0 increases business value Why is it important to you? – It’s all in the channel mix; Your customers want to choose the channel by which they access your content: facilitate them! – Automation versus personalization; Your processes are being automated more and more, but your customers prefer the personal touch – United customers. Your customers are talking about you, on line! Which Web 2.0 applications yield the most value? According to Forrester, IT professionals found the most business value from discussion forms (70% said they got substantial or moderate business value), wikis (67% noted they got moderate or substantial business value) and podcasts (62% said they were getting moderate or substantial business value). Forrester Web 2.0 on line survey 2008 Responses from 260 IT professionals value 2008 Niels Goossens Capgemini Consulting
  • 24. Vision 23/24 Ignoring Web 2.0 could potentially bring bad things Things to remember Have you checked your Wikipedia entry lately? It’s always good to know what people write about you. However, trying to influence your identity on line not only can, but will backfire! Blogging Privacy Do you have a corporate policy on blogging? Privacy! Channel the enthusiasm of your blogging Customers nowadays are very aware when their employees by either setting clear guidelines, or privacy is invaded, and – sometimes united in by full trust and allowing everything. pressure groups - tend to be vocal about it Marketing strategy Unhappy customers Is your marketing strategy tuned towards web2? Unhappy customers tend to be very vocal! Do not ignore the new, unconventional marketing From the outside, noone can see if those methods that Web 2.0 brings! unhappy customers represent a minority. 2008 Niels Goossens Capgemini Consulting
  • 25. Vision 24/24 Joining the Web 2.0 experience has a positive impact on your business The Long Tail Target very specific groups with advertising: the Long Tail Get to know your customers very well, and target them with pinpoint accuracy. LinkedIn and profile sites A platform for customers Use LinkedIn to evaluate new hires Feed happy customers New hires often participate in various on line Give your satisfied customers a platform for profile sites. Use it to your advantage! expressing their thoughts. Customer self service Open up! “Opening up” is the thing to do Always on: towards customer self service Be transparent about everything involving your Your customers are organized globally and always company, and invite participation. on, and they expect the same of you. Get to know and trust your userbase: integrate their feedback in your product cycle. 2008 Niels Goossens Capgemini Consulting
  • 26. Niels Goossens Capgemini Consulting, C65 Public Innovation Together. Free your energies