The Business Of Web 2.0 V6

The Business Of Web 2.0 Opportunities and Lessons The new B2C – Brand-to-Community – strategy, tactics and learnings from the Age of Conversation Gavin Heaton // www.servantofchaos.com // servant@servantofchaos.com © Gavin Heaton 1 www.servantofchaos.com

People of earth … © Gavin Heaton 2 www.servantofchaos.com

A powerful global conversation has begun. © Gavin Heaton 3 www.servantofchaos.com

Through the Internet, people are discovering … © Gavin Heaton 4 www.servantofchaos.com

and inventing new ways to share relevant knowledge © Gavin Heaton 5 www.servantofchaos.com

… with blinding speed. © Gavin Heaton 6 www.servantofchaos.com

As a direct result, markets are getting smarter … © Gavin Heaton www.servantofchaos.com 7

and getting smarter faster than most companies. © Gavin Heaton 8 www.servantofchaos.com

1. Markets are conversations. © Gavin Heaton 9 www.servantofchaos.com

2. Markets consist of human beings, not demographic sectors. © Gavin Heaton 10 www.servantofchaos.com

12. There are no secrets. © Gavin Heaton 11 www.servantofchaos.com

20. Companies need to realize their markets are often laughing. At them. © Gavin Heaton 12 www.servantofchaos.com

26. Public Relations does not relate to the public. © Gavin Heaton 13 www.servantofchaos.com

29. Elvis said it best: quot;We can't go on together with suspicious minds.quot; © Gavin Heaton 14 www.servantofchaos.com

36. Companies must ask themselves where their corporate cultures end. © Gavin Heaton www.servantofchaos.com 15

52. Paranoia kills conversation. © Gavin Heaton 16 www.servantofchaos.com

60. Markets want to talk to companies © Gavin Heaton 17 www.servantofchaos.com

67. As markets, as workers, we wonder why you're not listening … © Gavin Heaton 18 www.servantofchaos.com

You seem to be speaking a different language. © Gavin Heaton 19 www.servantofchaos.com

68. The inflated self-important jargon you sling around … what's that got to do with us? © Gavin Heaton 20 www.servantofchaos.com

69. Maybe you're impressing your investors. Maybe you're impressing Wall Street … © Gavin Heaton www.servantofchaos.com 21

You're not impressing us. © Gavin Heaton 22 www.servantofchaos.com

71. Your tired notions of quot;the marketquot; make our eyes glaze over. © Gavin Heaton www.servantofchaos.com 23

72. We like this new marketplace much better. In fact, we are creating it. © Gavin Heaton 24 www.servantofchaos.com

73. You're invited, but it's our world. Take your shoes off at © Gavin Heaton the door. www.servantofchaos.com 25

75. If you want us to talk to you, tell us something. Make it something interesting for a change. © Gavin Heaton www.servantofchaos.com 26

78. You want us to pay? © Gavin Heaton 27 www.servantofchaos.com

… We want you to pay attention. © Gavin Heaton 28 www.servantofchaos.com

82. Your product broke. Why? © Gavin Heaton 29 www.servantofchaos.com

84. We know some people from your company. They're pretty cool online … © Gavin Heaton 30 www.servantofchaos.com

Do you have any more like that you're hiding? Can they come out and play? © Gavin Heaton 31 www.servantofchaos.com

87. We'd like it if you got what's going on here. That'd be real nice. © Gavin Heaton 32 www.servantofchaos.com

89. We have real power and we know it. © Gavin Heaton 33 www.servantofchaos.com

95. We are waking up and linking to each other. We are watching. But we are not waiting. © Gavin Heaton www.servantofchaos.com 34

Ten years on, the Cluetrain still sounds radical … © Gavin Heaton 35 www.servantofchaos.com

About Gavin Heaton © Gavin Heaton 36 www.servantofchaos.com

Hands up if you have heard of … © Gavin Heaton 37 www.servantofchaos.com

The Long Tail … © Gavin Heaton 38 www.servantofchaos.com

Open Source … © Gavin Heaton 39 www.servantofchaos.com

Mash ups … © Gavin Heaton 40 www.servantofchaos.com

This is Web 2.0 © Gavin Heaton 41 www.servantofchaos.com

Sites and Spaces © Gavin Heaton 42 www.servantofchaos.com

Tools // Platforms © Gavin Heaton 43 www.servantofchaos.com

And Many More … © Gavin Heaton 44 www.servantofchaos.com

http://theconversationprism.com/1650 © Gavin Heaton 45 www.servantofchaos.com

People Online? http://www.businessweek.com/magazine/content/07_24/b4038405.htm © Gavin Heaton 46 www.servantofchaos.com

Why is this important? © Gavin Heaton 47 www.servantofchaos.com

Five Impacts of Social Media Experts coming under pressure from new voices who are early adopters of new technology © Gavin Heaton 48 www.servantofchaos.com

Five Impacts of Social Media New organisations emerging to deal with the social, cultural and political changes © Gavin Heaton 49 www.servantofchaos.com

Five Impacts of Social Media There is a struggle to revise the social and legal norms -- especially in relation to intellectual property © Gavin Heaton 50 www.servantofchaos.com

Five Impacts of Social Media The concepts of identity and community are transformed http://darmano.typepad.com © Gavin Heaton 51 www.servantofchaos.com

Five Impacts of Social Media New forms of language come into being © Gavin Heaton 52 www.servantofchaos.com

Five Impacts of Social Media Educators are pressured to prepare their students for the newly emerging world © Gavin Heaton 53 www.servantofchaos.com

Elizabeth Eisenstein on the invention of the printing press © Gavin Heaton 55 www.servantofchaos.com

This goes beyond the question of whether your company or brand quot;should have a websitequot; or a quot;blogquot;, but whether it is important for you to be part of the web of signification that creates the worlds that we live in. http://tinyurl.com/soc5impacts © Gavin Heaton 56 www.servantofchaos.com

Social networking sites now more popular than porn sites. Time, October 31, 2007 © Gavin Heaton 57 www.servantofchaos.com

Increasingly networked but also individualised. © Gavin Heaton 58 www.servantofchaos.com

Individualism Community Independence Relationships Commercialism Authenticity Disconnect between how we “express ourselves” and what we “value” © Gavin Heaton 59 www.servantofchaos.com

ABC, the third commercial network in the USA began broadcasting in 1948 © Gavin Heaton 60 www.servantofchaos.com

3 Networks x 60 years x 365 days x 24 hours = 1.5 million hours programming © Gavin Heaton 61 www.servantofchaos.com

More than 1.5 million hours were uploaded to YouTube in the last 6 months © Gavin Heaton 62 www.servantofchaos.com

Over 9000 hours per day 200,000 3 minute videos For an audience <100 88% new/original © Gavin Heaton 63 www.servantofchaos.com

“Dunbar Number” http://en.wikipedia.org/wiki/Dunbar's_number © Gavin Heaton 64 www.servantofchaos.com

Only 18% of TV ad campaigns generate positive ROI -- Ad Age/Accenture © Gavin Heaton 65 www.servantofchaos.com

The Auchterlonie Effect http://tinyurl.com/soceffect © Gavin Heaton www.servantofchaos.com

Social Capital http://tinyurl.com/soceffect © Gavin Heaton www.servantofchaos.com

Social Judgement http://tinyurl.com/soceffect © Gavin Heaton www.servantofchaos.com

“75 percent of Fortune 1000 companies with websites will have undertaken some kind of online social networking initiative for marketing or customer relationship purposes in the next year.” – Gartner, October 2008 http://gartner.com © Gavin Heaton 69 www.servantofchaos.com

But 50% of those campaigns will be classified as failures. -- Gartner, October 2008 http://icanhascheezburger.com © Gavin Heaton 70 www.servantofchaos.com

http://www.oovoo.com © Gavin Heaton 71 www.servantofchaos.com

User Generated User Generated User Generated Content Filtering Distribution User Generated Context http://tinyurl.com/socsimplesocialmedia © Gavin Heaton 72 www.servantofchaos.com

Forget the hype, this is business … © Gavin Heaton 73 www.servantofchaos.com

Business-to-Business In B2B the value of what you have to offer has few customers BUT they are willing to pay a Value and Effectiveness premium. Custom Solutions Complexity Volume Enterprise SME Consumer © Gavin Heaton 74 www.servantofchaos.com

Business-to-Consumer The value of what you have to offer has many customers BUT the margins are incremental . Value and Effectiveness Mass prod / volume Complexity Volume Enterprise SME Consumer © Gavin Heaton 75 www.servantofchaos.com

Enterprise 1.0 Sales Enterprise 1.0 firms are designed to service these two markets but they leave a gap in between. Value and Effectiveness Custom Mass prod / Solutions volume Complexity Volume Enterprise SME Consumer © Gavin Heaton 76 www.servantofchaos.com

Enter Web 2.0 © Gavin Heaton 77 www.servantofchaos.com

Convergence is Not About Technology © Gavin Heaton 78 www.servantofchaos.com

The Convergence of Markets Knowledge Workers are no longer happy to leave their rich web experiences at home. Value and Effectiveness B2B B2C Complexity Volume Enterprise SME Consumer © Gavin Heaton 79 www.servantofchaos.com

The Convergence of Markets The NEW B2C … Brand-to-Community extends from the consumer space through the enterprise Value and Effectiveness B2B Br2Comm B2C Complexity Volume Enterprise SME Consumer © Gavin Heaton 80 www.servantofchaos.com

Web 2.0 opens markets and changes the way that we interact. © Gavin Heaton 81 www.servantofchaos.com

It represents a fundamental shift in the nature of value © Gavin Heaton 82 www.servantofchaos.com

It’s no longer about what you make © Gavin Heaton 83 www.servantofchaos.com

… but what you know and who you connect to © Gavin Heaton 84 www.servantofchaos.com

Peter Steiner’s famous cartoon captured a realization and a spirit of the time. © Gavin Heaton 85 www.servantofchaos.com

The “level playing field” had finally arrived. © Gavin Heaton 86 www.servantofchaos.com

Samples http://www.servantofchaos.com/20 08/07/where-the-hell.html More than 6.8 million student reviews of 1 million professors http://ratemyprofessors.com © Gavin Heaton 87 www.servantofchaos.com

Over 11 million views @ 4:29 per view, 23 million Google references http://tinyurl.com/socwhereismatt © Gavin Heaton 88 www.servantofchaos.com

Continuous Digital Strategy Objectives Measurement Audience Commitment Footprint Converse Content http://tinyurl.com/socdigitalstrategy © Gavin Heaton 89 www.servantofchaos.com

Tim O’Reilly’s Web 2.0 Blogs Sharing UGC Web2.0 Openness Wikis Social Networks http://www.oreilly.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html © Gavin Heaton 90 www.servantofchaos.com

The Machine is Us/ing Us Understand Web 2.0 in four minutes thanks to Prof Wesch http://www.youtube.com/watch?v=6gmP4nk0EOE © Gavin Heaton 91 www.servantofchaos.com

Harnessing Collective Intelligence What did we know? http://www.ageofconversation.com © Gavin Heaton 94 www.servantofchaos.com

Lightweight Programming Usable technology does the hard work http://pipes.yahoo.com © Gavin Heaton 98 www.servantofchaos.com

Open Collaboration 103 authors across the globe Http://technomarketer.typepad.com © Gavin Heaton 99 www.servantofchaos.com

Software Everywhere From idea to print in 3 months http://lulu.com/ageofconversation © Gavin Heaton 100 www.servantofchaos.com

Rich Experiences Technology enabled the project and the project spawned the connections © Gavin Heaton 102 www.servantofchaos.com

And We Raised Money Raised $10,000 for Variety in the first 60 days http://varietychildrenscharity.org © Gavin Heaton 104 www.servantofchaos.com

Influencers and Connectors It’s about reputation, authority and participation http://tinyurl.com/socweakties © Gavin Heaton 116 www.servantofchaos.com

Influencers and Connectors Which gives your opinion context, weight and credibility © Gavin Heaton 117 www.servantofchaos.com

Measurement Analytics + Page Rank + Feeds + Time with Brand + Volume of Comments © Gavin Heaton 120 www.servantofchaos.com

Return on Investment? Determine the R first. Social Media (and all marketing) should be aligned with your business strategy. Listen first. Understand audience behaviour. Get help. © Gavin Heaton 121 www.servantofchaos.com

Licensing/Attributions Flickr Images: Ideas: http://www.flickr.com/photos/chicadecasa/ Tim O’Reilly: http://www.oreilly.com http://www.flickr.com/photos/enviale/ David Armano: http://darmano.typepad.com http://www.flickr.com/photos/ryanmft/ Drew McLellan: http://www.drewsmarketingminute.com http://www.flickr.com/photos/redvers/ Sean Howard: http://www.craphammer.ca http://www.flickr.com/photos/articnomad/ Geoffrey Moore: http://geoffmoore.blogs.com http://www.flickr.com/photos/modadimagno/ Joseph Jaffe: http://www.jaffejuice.com http://www.flickr.com/photos/st3f4n/ Katie Chatfield: http://www.getshouty.com http://www.flickr.com/photos/jluna/ http://www.flickr.com/photos/calanan/ See my blogroll @ servantofchaos.com http://www.flickr.com/photos/austinellison/ http://www.flickr.com/photos/spittal/ Get this presentation: http://www.flickr.com/photos/jepoirrier/ www.slideshare.net/servantofchaos http://www.flickr.com/photos/edtarwinski/ http://www.flickr.com/photos/thomashawk/ http://www.flickr.com/photos/jonnybaker/ © Gavin Heaton 123 www.servantofchaos.com

Flickr Gadl: http://www.flickr.com/photos/gadl/274460455/ Obo Bobolina http://www.flickr.com/photos/obo-bobolina/1544393823/ Driph http://www.flickr.com/photos/driph/2534655305/ Eric Rice http://www.flickr.com/photos/ericrice/3862126/ Pingnews.com http://www.flickr.com/photos/pingnews/473141678/ Lincolnian http://www.flickr.com/photos/lincolnian/1829986285/ ProfessorMortis http://www.flickr.com/photos/professormortis/2279725463/ James Good http://www.flickr.com/photos/jamesgood/363013819/ © Gavin Heaton 124 www.servantofchaos.com

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The Business Of Web 2.0 V6

by Gavin Heaton on May 20, 2009

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The Business Of Web 2.0 V6 — Presentation Transcript