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The
                          Business
                               of                Web 2.0

                            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
Gavin Heaton
                         2
www.servantofchaos.com
About Me




                         Web: www.servantofchaos.com
                            Twitter: servantofchaos




Gavin Heaton
                                                       3
www.servantofchaos.com
Web 2.0 // Social Media




Gavin Heaton
                                                   4
www.servantofchaos.com
Hands up if you have
heard of …




 Gavin Heaton
                          5
 www.servantofchaos.com
The Long Tail …




 Gavin Heaton
                          6
 www.servantofchaos.com
Open Source …




Gavin Heaton
                                         7
www.servantofchaos.com
Conversation …




       Gavin Heaton
                                8
       www.servantofchaos.com
This is Web 2.0




Gavin Heaton
                                           9
www.servantofchaos.com
Flickr




Gavin Heaton
                                  10
www.servantofchaos.com
MySpace




Gavin Heaton
                                   11
www.servantofchaos.com
YouTube




Gavin Heaton
                                   12
www.servantofchaos.com
Facebook




Gavin Heaton
                                    13
www.servantofchaos.com
Twitter




Gavin Heaton
                                   14
www.servantofchaos.com
Digg




Gavin Heaton
                                15
www.servantofchaos.com
I’m guessing that
makes you one of
Australia’s 11 million
Internet subscribers




                                Facts courtesy of Katie Chatfield – http://www.getshouty.com




       Gavin Heaton
                                                                                               16
       www.servantofchaos.com
67% of whom have
broadband




                              http://www.internetworldstats.com/stats.htm




     Gavin Heaton
                                                                            17
     www.servantofchaos.com
Joost




Gavin Heaton
                                 18
www.servantofchaos.com
RSS




This is as technical as I
want to get




     Gavin Heaton
                                    19
     www.servantofchaos.com
RSS Explained




                                              So, click this to see Lee
                                              explain RSS, simply



                              http://www.commoncraft.com/rss_plain_english




Gavin Heaton
                                                                             20
www.servantofchaos.com
Weblog




I use Typepad, but
there are plenty of
blogging platforms
available. Some are
even FREE!




                                      http://www.typepad.com



    Gavin Heaton
                                                               21
    www.servantofchaos.com
Advertising effectiveness is
increasingly under question




                                 http://www.jaffejuice.com




        Gavin Heaton
                                                             22
        www.servantofchaos.com
Brands and corporations are
under scrutiny




                                   http://www.buzzmachine.com/?tag=dell




          Gavin Heaton
                                                                          23
          www.servantofchaos.com
Since “Dell Hell” negative
                         publicity less than halved.
                         How?




Gavin Heaton
                                                       24
www.servantofchaos.com
Cluetrain




The Cluetrain
explained the shifting
power between
people and brands




                                           http://www.cluetrain.com



      Gavin Heaton
                                                                      25
      www.servantofchaos.com
Podcasts




Now anyone can podcast to the world.




    Gavin Heaton
                                              26
    www.servantofchaos.com
Wikipedia




                                     Or contribute to global knowledge




Gavin Heaton
                                                                   27
www.servantofchaos.com
As Ed Tarwinski says, this is
the “wonderful world of
mobile internet”




         Gavin Heaton
                                  28
         www.servantofchaos.com
Ning


                                We can all build a community




Gavin Heaton
                                                               29
www.servantofchaos.com
Amazon




                                  And be rewarded with
                                  reputation, ratings and even
                                  affiliate sales




Gavin Heaton
                                                                 30
www.servantofchaos.com
eBay




                                The self-organising community
                                aggregates its wealth while
                                building value of your network




Gavin Heaton
                                                                 31
www.servantofchaos.com
This is Web 2.0, too




Gavin Heaton
                                                32
www.servantofchaos.com
Forget the hype, this is business …




Gavin Heaton
                                                               33
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
                                                                                                 34
            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
                                                                                                35
            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




                                                                              Mass prod /
                                             Custom
                                                                               volume
                                            Solutions




                          Complexity                                                               Volume


                               Enterprise                      SME                          Consumer




            Gavin Heaton
                                                                                                            36
            www.servantofchaos.com
Enter Web 2.0




Gavin Heaton
                                         37
www.servantofchaos.com
Convergence is Not About Technology




Gavin Heaton
                                         38
www.servantofchaos.com
The Convergence of Markets


                                                Knowledge Workers are no
                                              longer happy to leave their rich
                                                web experiences at home.
Value and Effectiveness




                                                                                 B2C
                                            B2B




                          Complexity                                                          Volume


                               Enterprise                   SME                        Consumer




            Gavin Heaton
                                                                                                       39
            www.servantofchaos.com
The Convergence of Markets


                                                         The NEW B2C …
                                                  Brand-to-Community extends
                                                    from the consumer space
                                                      through the enterprise
Value and Effectiveness




                                                                               B2C
                                            B2B           Br2Comm




                          Complexity                                                        Volume


                               Enterprise                    SME                     Consumer




            Gavin Heaton
                                                                                                     40
            www.servantofchaos.com
It’s a convergence of thinking …




         Gavin Heaton
                                   41
         www.servantofchaos.com
… and doing




Gavin Heaton
                                       42
www.servantofchaos.com
It represents a fundamental shift
                         in the nature of value




Gavin Heaton
                                                             43
www.servantofchaos.com
It’s no longer about what you make




     Gavin Heaton
                                     44
     www.servantofchaos.com
… but what you know




Gavin Heaton
                                               45
www.servantofchaos.com
Tim O’Reilly’s Web 2.0




                                      Blogs
                                                               UGC
                          Sharing



                                    Web2.0
                                      Wikis              Social Networks
                         Openness




                                              http://www.oreilly.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html




Gavin Heaton
                                                                                                                   46
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
                                                                                     47
www.servantofchaos.com
Web as a Platform




                                             Let me tell you a story …




Gavin Heaton
                                                                         48
www.servantofchaos.com
It Enables

It started with a question …




                                               http://www.drewsmarketingminute.com




         Gavin Heaton
                                                                                     49
         www.servantofchaos.com
Harnessing Collective Intelligence




 What did we know?


                              http://www.ageofconversation.com




Gavin Heaton
                                                                 50
www.servantofchaos.com
And the Person of the Year




                                           Crowdsourcing …




Gavin Heaton
                                                             51
www.servantofchaos.com
Data is the Next Intel Inside




Gavin Heaton
                                                  52
www.servantofchaos.com
Continuous Beta




Gavin Heaton
                                           53
www.servantofchaos.com
Open Collaboration




103 authors across the globe

                                                      http://technomarketer.typepad.com




        Gavin Heaton
                                                                                          54
        www.servantofchaos.com
Lightweight Programming




                                     Usable technology does the
                                     hard work




                                        http://pipes.yahoo.com




Gavin Heaton
                                                                  55
www.servantofchaos.com
Software Everywhere




From idea to print in 3 months




                                               http://lulu.com/ageofconversation




        Gavin Heaton
                                                                                   56
        www.servantofchaos.com
Software Everywhere




                                                    Hard, soft and eBooks




                                               http://collaborativeideation.com/




Gavin Heaton
                                                                                   57
www.servantofchaos.com
Rich Experiences




Technology enabled the
project and the project
spawned the connections




       Gavin Heaton
                                                   58
       www.servantofchaos.com
http://mindblob.typepad.com



Gavin Heaton
                                             59
www.servantofchaos.com
And We Raised Money




                                               Raised $10,000 for
                                               Variety in the first
                                               60 days




Gavin Heaton
                                                                      60
www.servantofchaos.com
Influencers and Connectors




                                                                        It’s about reputation,
                                                                        authority and
                                                                        participation




                                http://servantofchaos.typepad.com/soc/2007/10/the-strength-of.html




Gavin Heaton
                                                                                                     61
www.servantofchaos.com
Influencers and Connectors




Which gives your
opinion context, weight
and credibility




           Gavin Heaton
                                                          62
           www.servantofchaos.com
Influence Ripples




                                                      And ripples across
                                                      the internet




                                     http://darmano.typepad.com




Gavin Heaton
                                                                           63
www.servantofchaos.com
Measurement




But can you measure it?




    Gavin Heaton
                                           64
    www.servantofchaos.com
Measurement

Analytics + Page Rank +
Feeds + Time with Brand
+ Volume of Comments




  Gavin Heaton
                                         65
  www.servantofchaos.com
Getting Started




                                           It’s a conversation that
                                           you start by LISTENING




Gavin Heaton
                                                                      66
www.servantofchaos.com
Let’s Try …




Gavin Heaton
                                       67
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
                                                                                                   68
       www.servantofchaos.com

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The Business Of Web 2.0

  • 1. The Business of Web 2.0 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
  • 2. Gavin Heaton 2 www.servantofchaos.com
  • 3. About Me Web: www.servantofchaos.com Twitter: servantofchaos Gavin Heaton 3 www.servantofchaos.com
  • 4. Web 2.0 // Social Media Gavin Heaton 4 www.servantofchaos.com
  • 5. Hands up if you have heard of … Gavin Heaton 5 www.servantofchaos.com
  • 6. The Long Tail … Gavin Heaton 6 www.servantofchaos.com
  • 7. Open Source … Gavin Heaton 7 www.servantofchaos.com
  • 8. Conversation … Gavin Heaton 8 www.servantofchaos.com
  • 9. This is Web 2.0 Gavin Heaton 9 www.servantofchaos.com
  • 10. Flickr Gavin Heaton 10 www.servantofchaos.com
  • 11. MySpace Gavin Heaton 11 www.servantofchaos.com
  • 12. YouTube Gavin Heaton 12 www.servantofchaos.com
  • 13. Facebook Gavin Heaton 13 www.servantofchaos.com
  • 14. Twitter Gavin Heaton 14 www.servantofchaos.com
  • 15. Digg Gavin Heaton 15 www.servantofchaos.com
  • 16. I’m guessing that makes you one of Australia’s 11 million Internet subscribers Facts courtesy of Katie Chatfield – http://www.getshouty.com Gavin Heaton 16 www.servantofchaos.com
  • 17. 67% of whom have broadband http://www.internetworldstats.com/stats.htm Gavin Heaton 17 www.servantofchaos.com
  • 18. Joost Gavin Heaton 18 www.servantofchaos.com
  • 19. RSS This is as technical as I want to get Gavin Heaton 19 www.servantofchaos.com
  • 20. RSS Explained So, click this to see Lee explain RSS, simply http://www.commoncraft.com/rss_plain_english Gavin Heaton 20 www.servantofchaos.com
  • 21. Weblog I use Typepad, but there are plenty of blogging platforms available. Some are even FREE! http://www.typepad.com Gavin Heaton 21 www.servantofchaos.com
  • 22. Advertising effectiveness is increasingly under question http://www.jaffejuice.com Gavin Heaton 22 www.servantofchaos.com
  • 23. Brands and corporations are under scrutiny http://www.buzzmachine.com/?tag=dell Gavin Heaton 23 www.servantofchaos.com
  • 24. Since “Dell Hell” negative publicity less than halved. How? Gavin Heaton 24 www.servantofchaos.com
  • 25. Cluetrain The Cluetrain explained the shifting power between people and brands http://www.cluetrain.com Gavin Heaton 25 www.servantofchaos.com
  • 26. Podcasts Now anyone can podcast to the world. Gavin Heaton 26 www.servantofchaos.com
  • 27. Wikipedia Or contribute to global knowledge Gavin Heaton 27 www.servantofchaos.com
  • 28. As Ed Tarwinski says, this is the “wonderful world of mobile internet” Gavin Heaton 28 www.servantofchaos.com
  • 29. Ning We can all build a community Gavin Heaton 29 www.servantofchaos.com
  • 30. Amazon And be rewarded with reputation, ratings and even affiliate sales Gavin Heaton 30 www.servantofchaos.com
  • 31. eBay The self-organising community aggregates its wealth while building value of your network Gavin Heaton 31 www.servantofchaos.com
  • 32. This is Web 2.0, too Gavin Heaton 32 www.servantofchaos.com
  • 33. Forget the hype, this is business … Gavin Heaton 33 www.servantofchaos.com
  • 34. 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 34 www.servantofchaos.com
  • 35. 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 35 www.servantofchaos.com
  • 36. 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 Mass prod / Custom volume Solutions Complexity Volume Enterprise SME Consumer Gavin Heaton 36 www.servantofchaos.com
  • 37. Enter Web 2.0 Gavin Heaton 37 www.servantofchaos.com
  • 38. Convergence is Not About Technology Gavin Heaton 38 www.servantofchaos.com
  • 39. The Convergence of Markets Knowledge Workers are no longer happy to leave their rich web experiences at home. Value and Effectiveness B2C B2B Complexity Volume Enterprise SME Consumer Gavin Heaton 39 www.servantofchaos.com
  • 40. The Convergence of Markets The NEW B2C … Brand-to-Community extends from the consumer space through the enterprise Value and Effectiveness B2C B2B Br2Comm Complexity Volume Enterprise SME Consumer Gavin Heaton 40 www.servantofchaos.com
  • 41. It’s a convergence of thinking … Gavin Heaton 41 www.servantofchaos.com
  • 42. … and doing Gavin Heaton 42 www.servantofchaos.com
  • 43. It represents a fundamental shift in the nature of value Gavin Heaton 43 www.servantofchaos.com
  • 44. It’s no longer about what you make Gavin Heaton 44 www.servantofchaos.com
  • 45. … but what you know Gavin Heaton 45 www.servantofchaos.com
  • 46. Tim O’Reilly’s Web 2.0 Blogs UGC Sharing Web2.0 Wikis Social Networks Openness http://www.oreilly.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html Gavin Heaton 46 www.servantofchaos.com
  • 47. 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 47 www.servantofchaos.com
  • 48. Web as a Platform Let me tell you a story … Gavin Heaton 48 www.servantofchaos.com
  • 49. It Enables It started with a question … http://www.drewsmarketingminute.com Gavin Heaton 49 www.servantofchaos.com
  • 50. Harnessing Collective Intelligence What did we know? http://www.ageofconversation.com Gavin Heaton 50 www.servantofchaos.com
  • 51. And the Person of the Year Crowdsourcing … Gavin Heaton 51 www.servantofchaos.com
  • 52. Data is the Next Intel Inside Gavin Heaton 52 www.servantofchaos.com
  • 53. Continuous Beta Gavin Heaton 53 www.servantofchaos.com
  • 54. Open Collaboration 103 authors across the globe http://technomarketer.typepad.com Gavin Heaton 54 www.servantofchaos.com
  • 55. Lightweight Programming Usable technology does the hard work http://pipes.yahoo.com Gavin Heaton 55 www.servantofchaos.com
  • 56. Software Everywhere From idea to print in 3 months http://lulu.com/ageofconversation Gavin Heaton 56 www.servantofchaos.com
  • 57. Software Everywhere Hard, soft and eBooks http://collaborativeideation.com/ Gavin Heaton 57 www.servantofchaos.com
  • 58. Rich Experiences Technology enabled the project and the project spawned the connections Gavin Heaton 58 www.servantofchaos.com
  • 59. http://mindblob.typepad.com Gavin Heaton 59 www.servantofchaos.com
  • 60. And We Raised Money Raised $10,000 for Variety in the first 60 days Gavin Heaton 60 www.servantofchaos.com
  • 61. Influencers and Connectors It’s about reputation, authority and participation http://servantofchaos.typepad.com/soc/2007/10/the-strength-of.html Gavin Heaton 61 www.servantofchaos.com
  • 62. Influencers and Connectors Which gives your opinion context, weight and credibility Gavin Heaton 62 www.servantofchaos.com
  • 63. Influence Ripples And ripples across the internet http://darmano.typepad.com Gavin Heaton 63 www.servantofchaos.com
  • 64. Measurement But can you measure it? Gavin Heaton 64 www.servantofchaos.com
  • 65. Measurement Analytics + Page Rank + Feeds + Time with Brand + Volume of Comments Gavin Heaton 65 www.servantofchaos.com
  • 66. Getting Started It’s a conversation that you start by LISTENING Gavin Heaton 66 www.servantofchaos.com
  • 67. Let’s Try … Gavin Heaton 67 www.servantofchaos.com
  • 68. 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 68 www.servantofchaos.com