Web 2008


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  • Galit Fein Office of the CIO 2008
  • Web 2008

    1. 1. Web 2008 Galit Fein Senior Analyst & VP Governance & Sourcing
    2. 2. Agenda <ul><li>What is Web 2008? </li></ul><ul><li>Web evolution: </li></ul><ul><ul><li>Web 2.0, web 3.0, web X.0 </li></ul></ul><ul><li>Best Practices </li></ul>
    3. 3. Web Evolution Static, one-way publishing medium Transactions Interactive, virtual communities Semantic Web Intelligent Web
    4. 4. Web 2008: What’s in It for Enterprises? <ul><li>Open, collaborative, & participatory model for: </li></ul><ul><ul><li>Enriched end-user experience </li></ul></ul><ul><ul><li>Online social collaboration </li></ul></ul>Community Social Networking Business New models Technology Web as a platform Web 2008
    5. 5. Web 2008 – an “Enterprise” Issue! <ul><li>Web 08’ tools, technologies, & concepts help business find: </li></ul><ul><ul><li>New customers </li></ul></ul><ul><ul><li>Retain existing customers more effectively </li></ul></ul><ul><ul><li>Provide products & services at higher profit margin </li></ul></ul>Blogs Wikis Tags RSS Semantic Web Strategic IT Web 2.0 Business
    6. 6. The Long Tail <ul><li>Traditional Focus </li></ul><ul><li>High value, </li></ul><ul><li>high potential customers </li></ul><ul><li>Web 2.0 Concept </li></ul><ul><li>Customers who buy a few items but aggregate into a substantial amount of revenue </li></ul>Millions of markets of a few may be more profitable than a few markets of millions Amazon.com, Apple iTunes
    7. 7. Anatomy of the Long Tail Theory <ul><li>Online services carry far more inventory than traditional retailers </li></ul><ul><li>Even as consumers flock to mainstream products, there is real demand for niche fare found only online </li></ul>Rhapsody Amazon.com Netflix Total inventory: 2.3 million books Barnes & Noble Store: 130,000 books Total inventory: 735,000 songs Wall Mart Store: 30,000 songs Total inventory: 25,000 DVDs Blockbuster Store: 3,000 DVDs Source: Erik Brynjotfision, Jeffrey Hu, Michael Smith, MIT
    8. 8. Self-Service Israeli Trends <ul><li>Not an innovative concept </li></ul><ul><li>Most orgs. are planning to invest into customer self-service improvement: </li></ul><ul><ul><li>Cost saving </li></ul></ul><ul><ul><li>Improved customer satisfaction </li></ul></ul><ul><li>Disadvantage: lack of customer sense of belonging </li></ul>Start Self-Service Build product simpler version Effective Internet search engine
    9. 9. Collective Intelligence <ul><li>Trust your users & their experience, they should NO longer be: </li></ul><ul><ul><li>Created </li></ul></ul><ul><ul><li>Managed </li></ul></ul><ul><ul><li>Hosted </li></ul></ul><ul><ul><li>Controlled </li></ul></ul><ul><li>User as contributor </li></ul><ul><li>Tagging not taxonomy </li></ul><ul><li>Examples: </li></ul><ul><ul><li>Barnesandnoble.com vs. Amazon </li></ul></ul><ul><ul><li>Britannica Online vs. Wikipedia </li></ul></ul><ul><ul><li>Ofoto vs . Flickr </li></ul></ul>by Producers of products & services
    10. 10. Digg
    11. 11.
    12. 12. Data Collaboration <ul><li>Specialized database </li></ul><ul><li>Value-added services - mashups </li></ul><ul><li>Hackability </li></ul><ul><li>Examples: </li></ul><ul><ul><li>GeoBlogger </li></ul></ul><ul><ul><li>Google Maps </li></ul></ul>
    13. 13. HousingMaps
    14. 14. Social Phenomenon - Blogs <ul><li>Web site where people can enter their thoughts, ideas, comments </li></ul><ul><li>Why Blog? </li></ul><ul><ul><li>High Google rank </li></ul></ul><ul><ul><li>Tell company story </li></ul></ul><ul><ul><li>Web search - the primary way for your prospective customers learn about you </li></ul></ul><ul><li>Disadvantage: time-consuming, high commitment </li></ul><ul><li>CIO Blogs: CIO Magazine editors' and writers' blogs (http://blogs.cio.com) </li></ul><ul><li>Jonathan’s Blog: Sun CEO & President Jonathan Schwartz's blog ( http://blogs.sun.com/jonathan ) </li></ul>
    15. 15. Blogs Give Companies a Human Face Planning to roll out blogs to employees and customers
    16. 16. Social Phenomenon - Wikis <ul><li>Web-based system where users can create & edit content </li></ul><ul><li>Contribution by experts, employees, & users </li></ul><ul><li>Sharing of ideas or viewpoints by a group or a project team </li></ul><ul><li>Communication efficiency over &quot;back & forth&quot; exchanges of emails </li></ul><ul><li>Centralized, shared repositories of knowledge & documents </li></ul><ul><ul><li>Dresdner Kleinwort Bank, General Motors, Microsoft </li></ul></ul><ul><li>Virtual communities – external support, feedback, & recommendations about a company’s products & services </li></ul><ul><ul><li>LinkedIn, Facebook </li></ul></ul>
    17. 17. Wikis Israeli Trends <ul><li>Most orgs. search to insert usage in enterprise & customer wikis: </li></ul><ul><ul><li>Innovative technologies </li></ul></ul><ul><ul><li>Products & services </li></ul></ul><ul><li>Won’t enable customers to update content </li></ul><ul><li>Not for expert-based companies </li></ul><ul><li>Disadvantage: security </li></ul>
    18. 18. Lightweight Programming Models <ul><li>Technology: </li></ul><ul><ul><li>AJAX (Asynchronous JavaScript and XML): </li></ul></ul><ul><ul><li>Web development technique for creating interactive Web application </li></ul></ul><ul><ul><li>RSS (Really Simple Syndication) : </li></ul></ul><ul><ul><li>Syndication of content from Web pages or blogs </li></ul></ul><ul><ul><li>API (Application programming interface) : </li></ul></ul><ul><ul><li>Interface that an application provides in order to respond to data or service request from other applications or web sites </li></ul></ul>
    19. 19. Traditional Web Interaction Server returns a new page Client makes http request Web server
    20. 20. How AJAX works Server returns the requested information Client makes http request for specific information Web server
    21. 21. RSS Israeli Trends <ul><li>Inexpensive tool for users update </li></ul><ul><li>ITOs examine an external usage in RSS for: </li></ul><ul><ul><li>Update information </li></ul></ul><ul><ul><li>Newsletters </li></ul></ul><ul><ul><li>Conference invitations, etc. </li></ul></ul><ul><li>Disadvantage: unfriendly interface & security model </li></ul>
    22. 22. Web Services APIs Application Programming Interface <ul><ul><li>Interface that an application provides in order to respond </li></ul></ul><ul><ul><li>to data or service request from other applications or web sites </li></ul></ul>
    23. 23. Web 2008 Trends <ul><li>Consumers are spending more time on the Internet than on traditional media, but advertising spending is lagging behind the trend </li></ul>37%* 9%* 30% * 5%* Hours of leisure time per week spent with various media * Percentage of the advertising market Source: Aegis
    24. 24. Web 2008 Israeli Trends <ul><li>ITOs have not yet harnessed the potential of Web 2.0 to its advantage </li></ul><ul><li>ITOs begin to realize that Web 2.0 will differentiate them from competitors: </li></ul><ul><ul><li>Interactive & zipper Web site (Ajax) </li></ul></ul><ul><ul><li>Access to spread-sheets & calendars via Web (SaaS) </li></ul></ul><ul><ul><li>Self-Service </li></ul></ul>
    25. 25. Enterprise Applications of Web 2008 Applications Web 2.0 Technology Source: Cutter Blogs <ul><li>Marketing </li></ul><ul><li>Customer relationship management </li></ul><ul><li>Brainstorming new ideas, exchanging service tips </li></ul>Wikis <ul><li>Enterprise wikipedia -- information repository </li></ul><ul><li>Project documentation and management </li></ul><ul><li>Workflow management and monitoring </li></ul><ul><li>Facilitating innovation, new product development </li></ul>Mashup <ul><li>Data aggregation from different sources on the Web </li></ul><ul><li>Use of maps or other services available to create new, value-added info </li></ul><ul><li>Creation of new Web applications, easily and quickly by end users </li></ul>Social networking <ul><li>Finding sales leads </li></ul><ul><li>Hiring people from collective contacts </li></ul><ul><li>Identification of employees or users with common interests </li></ul>AJAX <ul><li>Responsive Web user interface </li></ul><ul><li>Rich Internet applications -- drag and drop </li></ul><ul><li>Desktop applications on the Web </li></ul>Syndication feeds (RSS) <ul><li>&quot;Home delivery&quot; of new information of interest from blogs and Web pages </li></ul><ul><li>Syndication of information from different sources </li></ul>
    26. 26. Web 3.0 <ul><li>Semantic Web - Machine-facilitated understanding of information on the Web in order to facilitate information aggregation </li></ul><ul><ul><li>Copy schedule of conference to Outlook calendar </li></ul></ul><ul><ul><li>Copy list of people to Outlook contacts </li></ul></ul><ul><li>The 3D Web - 3D online persistent world with a sense of presence and simultaneous experience in context </li></ul>
    27. 27. Virtual Worlds <ul><li>Examples (over 30 worlds): </li></ul><ul><ul><li>Second Life </li></ul></ul><ul><ul><li>ActiveWorlds </li></ul></ul><ul><ul><li>Entropia Universe </li></ul></ul><ul><ul><li>There </li></ul></ul><ul><ul><li>MultiVerse </li></ul></ul><ul><ul><li>Vast Park </li></ul></ul><ul><ul><li>Metaplace </li></ul></ul>
    28. 28. Second Life <ul><li>40,000 concurrency (at any time) </li></ul><ul><li>450,000 active users (last 7 days) </li></ul><ul><li>1.4 m active users (last 2 months) </li></ul><ul><li>10.6 m total accounts </li></ul><ul><li>2 m assets created per day </li></ul><ul><li>35 TB of user-created data </li></ul><ul><li>800,000 unique items sold or traded </li></ul><ul><li>per month </li></ul><ul><li>500 events per day </li></ul>Source: Linden Lab Million Square Meters of Second Life Land Total User Hours (millions) Source: http://secondlife.com/whatis/economy-graphsphp
    29. 29. Currency: Linden$ <ul><li>LindeX exchange operated by </li></ul><ul><li>Linden Lab </li></ul><ul><ul><li>Buy: USD $.30 transaction fee </li></ul></ul><ul><ul><li>Sell: 3.5% transaction fee </li></ul></ul><ul><ul><li>270 L$ =$1 USD </li></ul></ul><ul><li>Monetary policy </li></ul>US$ Spent by Users (in Millions) US $ Exchanged on Lindex (in Millions)
    30. 30. Business IBM Cisco Best Buy’s Geek Squad Dr. Dobbs Life 2.0 Conference Preen H&R Block
    31. 31. Customer Service <ul><li>Best Practice Ideas: </li></ul><ul><li>Give customers control </li></ul><ul><li>Let customers manage their own services online </li></ul><ul><li>Direct data flood </li></ul><ul><li>Use Web data on customers as a competitive weapon </li></ul><ul><li>Listen for new ideas </li></ul><ul><li>Use blogs to find them in order to fix thing </li></ul>
    32. 32. Customer Service <ul><li>Pacesetters: </li></ul><ul><li>Zipcar </li></ul><ul><li>Linked the phone system to Web site & clients DB </li></ul><ul><li>Payoff: 50% of calls & improved service </li></ul><ul><li>Continental Airlines </li></ul><ul><li>Analyzed data on the fly to improve customer care </li></ul><ul><li>Payoff: Top tier in CS </li></ul><ul><li>BT Group </li></ul><ul><li>Linked Web portal to the support staff system to improve consistency </li></ul><ul><li>Payoff: x3 customer transaction, 10sM$, boosted CS 40% </li></ul>
    33. 33. Management <ul><li>Best Practice Ideas: </li></ul><ul><li>Try new tools </li></ul><ul><li>Use dashboards & scorecards to take full advantage </li></ul><ul><li>Use the data </li></ul><ul><li>Push for new ways to use data </li></ul><ul><li>Mine for expertise </li></ul><ul><li>Pull profiles of workers online </li></ul>
    34. 34. Management <ul><li>Pacesetters: </li></ul><ul><li>Kaiser Permanente </li></ul><ul><li>Digitized medical records to manage patient care more effectively </li></ul><ul><li>Payoff: Important data trends </li></ul><ul><li>ASPCA </li></ul><ul><li>Overhauled its Web site & database to accept & place people </li></ul><ul><li>Payoff: List of 24,000 volunteers </li></ul><ul><li>IBM </li></ul><ul><li>Created employee profiles DB </li></ul><ul><li>Payoff: DB 36K employees, cut 500M$ and time </li></ul>
    35. 35. Collaboration <ul><li>Pacesetters: </li></ul><ul><li>Procter & Gamble </li></ul><ul><li>Used outside scientific network of 80K scientists </li></ul><ul><li>Payoff: Boosted sales by 40% </li></ul><ul><li>IJIS Institute </li></ul><ul><li>Set up a series of blogs to share info among its 16 committees </li></ul><ul><li>Payoff: 400 people work on 37 projects; cut 50% of calls </li></ul><ul><li>Dresdner Kleinwort Wasserstein </li></ul><ul><li>Used wikis & blogs to create, edit & revise projects in real time </li></ul><ul><li>Payoff: Cut 75% of e-mails, 50% of meetings time </li></ul>
    36. 36. Streamlining <ul><li>Pacesetters: </li></ul><ul><li>NYC Comptroller’s Cybersettle Service </li></ul><ul><li>Used Net to settle injury claims more efficiently </li></ul><ul><li>Payoff: 17M$; 1,137 claims online; time reduction: 9->4 month </li></ul><ul><li>Trinchero Family Estates </li></ul><ul><li>Set up an online system to track the processing of grapes </li></ul><ul><li>Payoff: 3% of handling raw materials cost </li></ul>
    37. 37. Marketing <ul><li>Best Practice Ideas: </li></ul><ul><li>Open the doors </li></ul><ul><li>Tap the creativity of the community online </li></ul><ul><li>Try the (new) networks </li></ul><ul><li>Social networks can reach targeted audiences </li></ul><ul><li>Connect then contact </li></ul><ul><li>Give people a must-have service, use it to build your brand </li></ul>
    38. 38. Marketing <ul><li>Pacesetters: </li></ul><ul><li>Audi </li></ul><ul><li>Staged a car theft in NYC to launch its new A3 model </li></ul><ul><li>Payoff: 500K people online; 10K leads </li></ul><ul><li>Southwest Airlines </li></ul><ul><li>Download service for short-term discounts alerts </li></ul><ul><li>Payoff: 1.3M downloads; 50M$ in sales </li></ul><ul><li>Converse </li></ul><ul><li>Enlisted the public as ad creators by soliciting online films </li></ul><ul><li>Payoff: 1.6K submissions; 80% increased site visits </li></ul>
    39. 39. Thank You ! this research Galit Fein Senior Analyst & VP [email_address]