Business Models for Web 2.0
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Business Models for Web 2.0



Lecture Notes for BM60014 at VGSOM, IIT Kharagpur

Lecture Notes for BM60014 at VGSOM, IIT Kharagpur



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Business Models for Web 2.0 Business Models for Web 2.0 Presentation Transcript

  • Getting into Web 2.0
  • What is Web 2.0 ?
  • This is Web 2.0 !
  • The War of the Encyclopedias
    • Why has Wikipedia eclipsed
      • Britannica – the best known brand
      • Encarta – the most well supported brand
    • Two reasons
      • The volume and diversity of user generated content
      • The trust that is created in groups – the social network
  • What is Web 2.0
    • Network of Trust
      • Network of individual
      • No heirarchy
    • User Generated Content
      • Never the creation of an individual.
      • Always built collaboratively
    • Rich Media
      • Images, movies, 3D realism
    • Infinitely Extensible
      • Never Complete
      • Extended through
        • More technology
        • More computers
  • What do users generate ?
    • The obvious stuff
      • Blogs : text
      • FlickR : images
      • YouTube : videos
    • A little more sophistication
      • Wikipedia
    • The not so obvious stuff
      • Relationships among people
        • Orkut, Facebook
        • LinkedIN
        • Communities
      • Relationship among pieces of data
        • Google Page Rank
        • Folksonomy
  • Innovation : Limited by Imagination
    • Incremental improvement is not enough
      • kaizen is out
      • business process reengineering is out
      • knowledge management is too slow
    • The gap between what can be imagined and what can be accomplished has never been smaller
    • we can now walk backward from our imagination rather than walk forward from the existing past
    But those who can visualize a new reality are vastly outnumbered by those who cannot
  • Key Deliverable in this course
    • Presentation / Whitepaper on Sector
      • Nature of services
      • History of evolution
      • List of Players
        • Principal Players
        • India Story
      • Business Models
      • Profitability
      • Porters Analysis
  • Analysis of Industry Sectors
    • Porter's 5 forces
      • is a framework for the industry analysis and business strategy development
      • It define 5 forces that determine the competitive intensity and therefore attractiveness of a market.
      • A change in any of the forces normally requires a company to re-assess the marketplace.
    • Attractiveness
      • refers to the overall industry profitability.
      • An "unattractive" industry is one where the combination of forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition".
        • A clear example of this being the airline industry. As an industry profitability is low (and since the dawn of flight the entire industry has failed to make a profit!)
  • Porter Model
  • The threat of substitute products
    • The existence of close substitute products increases the propensity of customers to switch to alternatives in response to price increases (high elasticity of demand).
      • buyer propensity to substitute
      • relative price performance of substitutes
      • buyer switching costs
      • perceived level of product differentiation
  • The threat of the entry of new competitors
    • Profitable markets that yield high returns will draw firms. The results is many new entrants, which will effectively decrease profitability.
      • the existence of barriers to entry
        • patents, rights, etc
      • economies of product differences
      • brand equity
      • switching costs or sunk costs
      • capital requirements
      • access to distribution
      • absolute cost advantages
      • learning curve advantages
      • expected retaliation by incumbents
  • The intensity of competitive rivalry
    • Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc.
      • number of competitors
      • rate of industry growth
      • intermittent industry overcapacity
      • exit barriers
      • diversity of competitors
      • informational complexity and asymmetry
      • fixed cost allocation per value added
      • level of advertising expense
      • Economies of scale
      • Sustainable competitive advantage through improvisation
  • The bargaining power of customers
    • Market of outputs. The ability of customers to put the firm under pressure and it also affects the customer's sensitivity to price changes.
      • buyer concentration to firm concentration ratio
      • bargaining leverage, particularly in industries with high fixed costs
      • buyer volume
      • buyer switching costs relative to firm switching costs
      • buyer information availability
      • ability to backward integrate
      • availability of existing substitute products
      • buyer price sensitivity
      • differential advantage (uniqueness) of industry products
  • The bargaining power of suppliers
    • Market of inputs. Suppliers of raw materials, components, and services (such as expertise) to the firm can be a source of power over the firm. Suppliers may refuse to work with the firm, or e.g. charge excessively high prices for unique resources.
      • supplier switching costs relative to firm switching costs
      • degree of differentiation of inputs
      • presence of substitute inputs
      • supplier concentration to firm concentration ratio
      • threat of forward integration by suppliers relative to the threat of backward integration by firms
      • cost of inputs relative to selling price of the product
  • Identifying Web 2.0 sites
    • Which are the various Web 2.0 sites in the internet ?
    • We have heard of the common ones
      • Shown at the the left
    • Where are the others ?
  • The web 2.0 principles
    • Web is a platform that
      • Consists of hundreds of machines, not one server or computer
      • That hosts rich multimedia
      • Generated by end users – not the platform provider
      • Who form of network of trust
      • And is in perpetual beta ... never finished
  • Web2.0 technologies
    • RSS
    • Blog/Vlog/ Podcast
    • Ajax, Ruby on Rails
    • Mashups
    • Tag cloud
    • Rating/ Tagging
    • Social Networks
  • Categories Social Network Content Aggregation Multimedia Publishing Lifestyle Business Functions Fun and Games Education Employment Career Maps Geographic Information Niche Sectors
  • Social Networks
    • Brings together like minded people in an informal forum
    • Three kinds of social networks
      • The Big Guys
      • The Smaller Social Networks
      • The Niche Players
    Content Aggregation Multimedia Publishing Lifestyle Business Functions Fun and Games Education Employment Career Maps Geographic Information Niche Sectors Social Network 1
  • Global Social Networks
    • Twitter is a service for people to communicate and stay connected through the exchange of quick, frequent answers to one simple question: What are you doing?
    • Facebook is a social utility that connects you with the people around you.
    • Bebo is a social media network where friends share their lives and explore great entertainment.
  • Smaller Social Networks
    • Sphinn is a social site for search and interactive marketers.
      • to share and discover news stories, read and take part in discussions, discover events of interest and network with others.
    • NowPublic lets people work together to cover news events around the world.
    • PlugIM is a user driven internet marketing community.
      • Submit content, share articles, comment on projects and promote your favorites to the front page.
  • Niche and Specialist Networks
    • Network of young mothers
      • Between chasing kids and chasing deadlines, there never seems to be enough time in the day to cook a healthful family dinner. Never fear ..
    • A community of people who are touched by diabetes
    • imbee is a parent approved, teacher endorsed social networking site appropriate for kids and 'tweens.
  • Content Aggregation
    • Start Pages
    • Classifieds and Directories
    • Guides and Reviews
    • Content Aggregation and Management
    • News and Blog Guides
    • Social News The Big Guys
    • Bookmarking
    Multimedia Publishing Lifestyle Business Functions Fun and Games Education Employment Career Maps Geographic Information Content Aggregation 1 2 Niche Sectors
  • Start Pages
    • Portal that you 'assemble' with things that are of interest to you
  • Classified Ads and Directories
    • Craigslist
      • Classified ads based on cities of the US and also the world
    • Oodle
      • Classified ads based on categories of things on offer
    • Linking Parking space buyers, sellers and renters
  • Guides and Reviews
    • Yelp
      • Reviews for restaurant, beauty parlours and any other kinds of services
    • Google Local
      • Local services in the neighbourhood
    • Citysearch
      • Looking for specific services (pizzas ?) at Calcutta ?
  • Data Collection & Management
    • WUFOO HTML form builder that helps create contact forms, web surveys, and invitations so you can collect the data, registrations and online payments.
    • Dabble DB helps you create online databases on the web. It’s easy to use yet extremely flexible and powerful.
    • EditGrid is an Online Spreadsheet.
      • EditGrid also provides live data access, like stock prices, positioning itself as an on-demand platform of data and spreadsheets.
  • News and Blog Guides
    • Google : the big guy !
    • Bloglines
      • Publish Blogs
      • Search Blogs
      • Subscribe to Blogs
      • Share Blogs
    • Technorati
      • Making sense of your own blogs and that of others
  • Social News / Whats Hot ?
    • Collaborative and Cooperative way of choosing web pages that are of interest to a whole group of people
    • Members vote on individual web pages and the most popular pages are shown
  • BookMarking
  • Multimedia Publishing
    • Books
    • Pictures, Images
    • Music
    • Video
    • Create, store, tag, display products
    Lifestyle Business Functions Fun and Games Education Employment Career Maps Geographic Information Multimedia Publishing 1 2 3 Niche Sectors
  • Books
    • Lulu
      • Platform to publish books on your own
      • Including print-on-demand and delivery
    • Biblio
      • Marketplace for books
    • Vufind
      • A community of libraries
  • Photographs & Images
    • Flickr is the most well known site for storage and display of your digital images
    • Picnik allows you to manipulate and digitally enhance images from any location
    • One of the first storage and display services. Also operates in offline mode
  • Music
    • Last FM plays music from virtually any artist or combination of artists
    • Pandora is not accessible from outside the US
    • MOG is a music blog
  • Video
  • Lifestyle
    • Sports
    • Travel
    • Food
    • Health
    Business Functions Fun and Games Education Employment Career Maps Geographic Information Lifestyle 1 2 3 4 Niche Sectors
  • Sports
    • Istats helps you keep track of your personal workout – exercise schedules and performance and compares them to that of others
    • Team snap is a way to create a website for your sports team
      • Schedules, availability
      • Vast range of sports
    • Community for dedicated golfers
  • Travel
    • Farecast : the smartest way to choose a ticket fare
    • Kayak – airticket booking site
    • Boo – a community of tourists and travellers that go beyond air fares
  • Food
    • I am cooked
      • A web community for video recipe sharing
    • Urban Spoon
      • Where do you want to eat? Pick a city to find restaurants and see menus, maps and reviews.
      • Video recipes
  • Health
      • provides information, inspiration and tools to help you take control of your health and improve your life.
    • PEERtrainer
      • is a Powerful SystemFor Weight Loss and Fitness Support
      • Helps You Be Accountableto Yourself, and Supported By Others
    • Imedix
      • A New Way To Find And Share Health Information
  • Fun and Games
    • Fun Stuff
    • Games & Entertainment
    Business Functions Education Employment Career Maps Geographic Information Fun and Games 1 2 3 4 5 Niche Sectors
  • Fun Stuff
    • Cocktail builder
      • Helps you create exotic cocktails with ingredients that you have at home
    • Hairmixer
      • Refashion, design your hair by combining with celebrity images
    • Comiqs
      • Create comics with your own pictures
  • Games & Entertainment
    • Zango
      • Collection of online games
    • Galaxiki
      • science fiction & fantasy galaxy that anyone can edit.
      • A fantastic place for science fiction and fantasy lovers.
    • Doof
      • Online games + social networking
  • Education, Employment, Career
    • Education
    • Job Search
    • Professional Networking
    • Ask Questions
    Business Functions Maps Geographic Information Education Employment Career 1 2 3 4 5 6 Niche Sectors
  • Education
    • Docstoc
      • User contributed collection of document templates for professional use
    • Mango
      • Place to go to learn foreign languages
    • Spanish Pod
      • Website to learn the spanish language
  • Employment & Job Search
    • StandoutJobs
      • Free HR software for recruitment purposes
    • Career Builder
      • Job search, match maker
    • Monster
      • Job search, match maker
  • Professional Networking
    • LinkedIN
      • Professional networking site
    • Biznik
      • Professional networking site
    • ProfessionalontheWeb
      • Site for website developers and to sell their services
      • How about other services ?
  • Ask Questions
    • Yahoo answers
      • Collaborative way to get answers from volunteers
    • Minti
      • Advice from parents about parenting
    • Fixya
      • Technical support, user manuals for consumer devices
  • Business Functions
    • Collaborative Document Management
      • Creation and Sharing
    • Firmwide Business Support
    Maps Geographic Information Business Functions 1 2 3 4 5 6 7 Niche Sectors
  • Collaborative Document Management
    • Google Docs
      • Online Office Suite
      • Wordprocessor, spreadsheet, presentation tool
    • Writeboard
      • Creation of shareable web based documents
    • Thinkfree
      • Online Office Suite
  • Firmwide Business Support
    • Backpack
      • Instant creation of a collaborative intranet for any company
    • Zoho
      • Online Office Suite / Mail
      • Application Development
      • CRM, Invoicing
    • Wufoo
      • Online forms for data collection
  • Maps & Geographic Systems
    • Maps
    • Mapping Applications
    Maps Geographic Information 1 2 3 4 5 6 7 8 Niche Sectors
  • Maps
    • Google Maps
      • Creation of customisable maps
    • Live Search
      • Microsoft version of Google Maps
    • Google Earth
      • lets you fly anywhere on Earth to view satellite imagery, maps, terrain, 3D buildings and even explore galaxies in the Sky.
      • You can explore rich geographical content, save your toured places and share with others.
  • Mapping Applications
    • Frappr
      • Social networks based on maps
    • Wayfaring
      • Collaboratively created and used maps
    • Community Walks
      • Create maps with paths on it for collaboration and sharing
  • Niche Sectors
    • Retail
    • Real Estate
    • Data Visualisation
    • Genealogy
    • Philanthropy
    1 2 3 4 5 6 7 8 9 Niche Sectors
  • Retail Business
    • Threadless
      • Design, Sell, Buy T shirts
    • Etsy
      • Buy and sell handicrafts
    • Stylehive
      • High value lifestyle products
  • Real Estate
    • Zillow
      • Searching for, Buying, selling, mortgage of homes
    • Rentomatic
      • Services the rental market
    • Hotpads
      • Buy, Sell
      • Rent, Lease
  • Data Visualisation
  • Infrastructure
    • Storage and Remote Access
    • Web Development
    • Widgets
    • Online Desktop
    • Mobile
    • Hosted Wiki
    1 2 3 4 5 6 7 8 9 Infrastructure
  • Are We Web 2.0 ? Kollaborative Klassroom Meet 12 out of 66 criteria !