Web 2.0 Overview

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An overview of Web 2.0 and how businesses can leverage its potential.

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Web 2.0 Overview

  1. 1. CIO Advisory Services Aligning Strategies, Business Processes and Technologies Demystifying Web 2.0 Venkatesh P. Iyer IT Management Consultant IT Strategy and Analytics Business Process Management Somerset, NJ 08873 IT Execution T: 732 485 8658 E: vpiadvisors@gmail.com
  2. 2. Aligning Strategies, Business Processes and Technologies Credentials Venkatesh P. Iyer CIO Advisory Services, IT Management Consultant Qualifications: Client focused management consultant in technology strategy with fifteen years of extensive experience in business of technology and core technologies. Areas of specialization include IT Strategy, Enterprise Architecture, IT Analytics, large-scale Program/ Project Management (PMO) • and software Pre-Sales. Strong skills in Server-Virtualization, Service Oriented Architecture (SOA), Business Process Management (BPM) and Middleware • (Java EE) Extensive skills and experience in linking business strategy, operations and technology implementation using high impact • methodologies Excellent team leader and mentor, with sound business understanding coupled with a strong technical foundation. Strong people • skills, works well with senior management, end-users, and business/ technical teams Skilled at guiding clients such as Allstate, Goldman Sachs, Citi, American Express, Comcast, AXATech, Aetna, Sun Chemical, Merrill • Lynch, AT&T etc to reach sound economic IT strategies to meet their critical business requirements Education: NEW YORK UNIVERSITY, New York, New York, Leonard N. Stern School of Business, Master of Business Administration, 2003 UNIVERSITY OF PUNE, Pune, India, Master of Computer Applications, 1993 IT Strategy and Analytics Business Process Management IT Execution
  3. 3. Aligning Strategies, Business Processes and Technologies Preamble The Buzz “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” - Tim O'Reilly “Web 2.0 is the business revolution in the computer industry caused by the move to the Internet as platform, and an attempt to understand the rules for success on that new platform” … and the alphabet-soup-noodles … APIs Blogging Collaboration RSS SaaS Social Networking Wiki MySQL Perl PHP Tagging AJAX DHTML FLEX Podcasting Web-Services Linux SOA Apache Python P2P Blogs … Is leading to chaos and confusion!!! The purpose of this paper is to provide an overview of Web 2.0 (Enterprise 2.0) – drivers, risks etc and also offer the senior IT Management a rigorous approach to assess and if applicable adopt Web 2.0 for their firm IT Strategy and Analytics Business Process Management IT Execution
  4. 4. Aligning Strategies, Business Processes and Technologies Agenda Overview Drivers Opportunities and Risks Leading questions for IT Management Proposed Approach IT Strategy and Analytics Business Process Management IT Execution
  5. 5. Aligning Strategies, Business Processes and Technologies Web 2.0 Overview Contrasting Web 1.0 and Web 2.0 Characteristics of Web 2.0 Web 1.0 Web 2.0 DoubleClick Google AdSense • Promotes openness and collaboration Ofoto Flickr • Empowers end-users Akamai BitTorrent • Strong focus on data management mp3.com Napster • Offer software as a service Britannica Online Wikipedia personal websites blogging • Harnesses collective intelligence evite upcoming.org and EVDB • Social networks can promote Viral-Marketing domain name speculation search engine optimization • Many of the b2c Web 2.0 websites get their page views cost per click revenue from Advertisements screen scraping web services publishing participation content management systems wikis directories (taxonomy) tagging (quot;folksonomyquot;) stickiness syndication Web 2.0 represents more than just new technologies rather it is a paradigm shift from Internet being a set of applications to a platform that enables collaboration, combining applications etc IT Strategy and Analytics Business Process Management IT Execution
  6. 6. Aligning Strategies, Business Processes and Technologies Demand for Web 2.0 Solutions and Supply of Enabling Technologies Demand and Supply around Web 2.0 Solutions Strategic benefits of Web 2.0 Solutions • Improved innovation by sharing knowledge among employees • Increase agility by closely engaging Partners and Clients • Capture additional ad-revenues • Leverage a cost-effective channel for Outbound Messaging: Build communities to disseminate news and ideas on products, ideas, services etc Inbound Messaging: Build communities to source ideas and get feedback from customers on new products and errors/ bugs in existing products • Build long-term relationships for cross-sell, up- Web 2.0 drivers sell additional products and services Firms that implement Web 2.0 solutions that complements their businesses optimally can capture the benefits of ‘Network Externalities’ i.e. winner takes all IT Strategy and Analytics Business Process Management IT Execution
  7. 7. Web 2.0 Drivers Shifts in Demographics Projected income growth by generation (in trillions) Comments Gen-x attaining the lead position • Gen-X and Gen-Y are typically technology savvy and they are becoming increasingly influential for businesses as customers Gen-y start to enter workforce Gen-y start • In order to attract and retain the best talent from college education Gen-Y going forward, firms will have to invest in building a strong Web 2.0 foundation Source: Javelin Strategy & Research, Pleasanton, CA Mobile data and communications activities by age • It offers a great opportunity to establish a engage and build strong relationship with them starting now e.g. a retail bank can start building relationships with student loans for college students and then expand it by offering car loans, home loans, credit cards etc as these people move along the lifecycle needs Source Pew Internet & American Life Project Surveys Forrester Research report states that enterprise spending on Web 2.0 technologies will continue to rise over the next five years, growing 43 percent each year to reach $4.6 billion globally by 2013 IT Strategy and Analytics Business Process Management IT Execution
  8. 8. Web 2.0 Drivers Mobile devices as a Platform Those who say it would be very hard to give up Comments (among those who use each device) • Mobile devices are not only being used for voice communications but also for Data services like text-messaging, emailing etc • The adoption of mobile-devices for data and communication is extremely high among the Gen- Y and Gen-X. 96% of Gen-Y has used mobile devices for these activities - Text-messaging, taking pictures etc. For Gen-X the same percentage is 85% • The total number of global mobile social network users is predicted to jump from 525 million this year to 975 million in 2012 • With the worldwide smart phone market expected to expand by more than 30% each year through 2012, global usage of mobile social networks and other mobile Web 2.0 tech, many of which require Internet-enabled smart phones Source Pew Internet & American Life Project Surveys Mobile devices are morphing into a complete platform from being just a tool for voice- communication IT Strategy and Analytics Business Process Management IT Execution
  9. 9. Web 2.0 Drivers Profile of Emerging Markets Growth in Internet Users (in MM) Comments • In India, Youth forms the major chunk to the China growing Internet user base. Another major segment on the Internet comprises the school kids • The Mobile- Value added services (VAS) in India in undergoing a rapid growth • Cellphone usage growth in fast growing markets last year: Vietnam: 114%, Pakistan: 170%, Ukraine: 185% • In Indonesia, one person in a hundred owns a PC, India and only one in a thousand has a broadband Internet connection. While there are already 63 million cell phone subscribers, that only represents 27% of the country's population of 234 million. Cell phone subscriptions in Indonesia are growing 36% annually. And you think that's something? In India, with 166 million cell phone users, growth last year was 84.5%. Source: Internet & Mobile Association of India (IAMAI) Emerging countries like China, India, Russia and Brazil are rapidly adopting Web 2.0 solutions. Firms can harness the power of Web 2.0 to penetrate these markets and to attract the best talents IT Strategy and Analytics Business Process Management IT Execution
  10. 10. Aligning Strategies, Business Processes and Technologies Risks with adopting Web 2.0 Solutions The concept of Web 2.0 inherently implies higher degree of information exchanges. While this can be extremely beneficial in certain functions, it can also potentially increase the vulnerabilities of the firm adopting these technologies Risk Dimension Overview Information Security Firm internal information getting posted out through the web 2.0 channels Systems risks Firms can become victims of malicious codes, computer viruses etc Legal Risks Companies can intentionally or unintentionally violate legal requirements like SOX etc Firm specific business confidential data getting out in the public domain or with Competitive risks competitors. This can happen inadvertently or intentionally say by disgruntled employees Bad news and rumors can spread easily thereby hurting a firm’s reputation and thereby its Reputational risks competitive position None of these risks are insurmountable. However they do mandate that before rolling out Web 2.0 solutions, firms should perform rigorous risk-assessments to assess the increased vulnerabilities. They should first define and institute rigorous governance and policies and they should adopt solutions only for those functions where the benefits outweigh the added risks and the incremental costs (capex and opex) IT Strategy and Analytics Business Process Management IT Execution
  11. 11. Aligning Strategies, Business Processes and Technologies Top WebSites | June 2008 Top Web 2.0 Websites Popular Business Websites Comments • There is a significant gap between the #1 and #2 websites in terms of visitors (“Network Externalities” characteristics) • Number of visitors to Web 2.0 sites are many folds compared to the number of visits to business websites • Most of the Web 2.0 sites are b2c and are used by Gen-y customers • Most of the Web 2.0 sites do not charge any money to provide the service IT Strategy and Analytics Business Process Management IT Execution
  12. 12. Aligning Strategies, Business Processes and Technologies Web 2.0 application early adopters case-studies Representative sample of Web 2.0 applications Web 2.0 applications in Financial Services Industry Firm Web 2.0 Initiatives Overview Customers Partners Employees Backend Launched wiki to foster Innovation RSS : Supply within the firm Community chain and Blogs: discussions Launched an online community for B2B small-business owners to exchange SaaS: Streaming ideas CRMs, Video: SOA: Payroll Training Web- MoveOutMoveUp.com generates Services interest in its mortgage offerings Executive Podcast: Financial among first-time home buyers Blogs: trends Musings commentary B2C Partnered with Facebook to promote its credit cards to college students Project Blogs: Community Sharing and Blogs: Using podcasting to deliver financial information discussions information to its corporate and institutional clients Before rolling out Web 2.0 solutions, firms should perform rigorous risk-assessments to evaluate if the benefits outweigh risks and costs IT Strategy and Analytics Business Process Management IT Execution
  13. 13. Aligning Strategies, Business Processes and Technologies Agenda Overview Drivers Opportunities and Risks Leading questions for IT Management Proposed Approach IT Strategy and Analytics Business Process Management IT Execution
  14. 14. Aligning Strategies, Business Processes and Technologies Key Questions for Senior IT Management • Is Web 2.0 solutions applicable to my firm? What are my competitors doing? • Which business functions would most benefit from these solutions? • Should I start off with external Web 2.0 applications or internal Web 2.0 applications or both? How should I go about identifying them and prioritizing them? • Should I build or buy solutions? How would they impact/ integrate with my existing systems? Should I outsource the development? What would be the capital and operating costs associated with the Web 2.0 solutions? • Are there firms out there who have expertise in implementing Web 2.0 solutions? What best practices should my organization adopt to be successful in this initiative? • How should augment the Governance processes and policies to accommodate the Web 2.0 solutions? • What the key risks with the adoption and what are the remediation strategies for them? • How would adopting Web 2.0 impact the current roles in my organization? What new skills would be needed? CIO Advisory Services and XX can assist you in developing a comprehensive strategy and with the implementation of the Web 2.0 solutions IT Strategy and Analytics Business Process Management IT Execution
  15. 15. Aligning Strategies, Business Processes and Technologies Planned Approach SI Partner to lead these phases Analysis Implementation Rollout Transition Analysis Implementation Rollout Transition • Initiate industry and firm specific analysis to identify the key Web 2.0 solutions most relevant to this organization • Identify business areas within the organization that would most benefit by adopting the Web 2.0 solutions i.e. the benefits outweigh the costs and risks • Identify the core business capabilities in the target state that will be based on Web 2.0 solutions • Assess the firm’s IT landscape to determine the current technology capabilities and the craft the future state technology capabilities • Develop multiple implementation scenarios and the associated CBAs Harness Analytics to develop key Insights Harness Analytics to develop key Insights • Recommend target pursuits and publish the Through Insights, propose actionable Through Insights, propose actionable detailed roadmap with specific milestones recommendations recommendations • Codify and institute process and policies to augment the current Governance structure Implement these recommendations through rigorous Implement these recommendations through rigorous • Establish a PMO with best practices for Program management and realize the benefits Program management and realize the benefits processes and tools in order to successfully execute this initiative IT Strategy and Analytics Business Process Management IT Execution
  16. 16. Aligning Strategies, Business Processes and Technologies A comprehensive approach to Web 2.0 strategy Tasks • Perform Industry and Firm specific analysis • Document the current state Assess Firm’s IT Landscape • Identify the key business capabilities for the target state • Identify key technology gaps • Develop architecture blueprints that will enable Web 2.0 features in the target state Define Target State • Assess and prioritize the target state capabilities Develop and • Prioritize list of Web 2.0 initiatives with rigorous business cases and cost-benefit analysis Publish • Create a roadmap with milestones for launching capabilities Roadmap Establish • Institute a PMO with best practices to manage the executing of all initiatives PMO and • Launch a Governance body to provide oversight for the Program execution Governance This model can be readily customized depending on client’s needs IT Strategy and Analytics Business Process Management IT Execution
  17. 17. Aligning Strategies, Business Processes and Technologies Summary • CIO Advisory Services and XX can assist your firm in crafting and implementing a sound Mainframe strategies • With its extensive experience in IT Strategy, Analytics, Program Management etc, CIO Advisory Service can not only offer analytical models, best practices etc but also ensure a successful execution of the proposed strategies IT Strategy and Analytics Business Process Management IT Execution

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