Web 2.0

WEB 2.0 The web is certainly making an impact somewhere near you. Laurent HAUG [email_address] www.liftconference.com

Table of contents Defining web 2.0 What’s happening? You’re in (try to enjoy the ride) Business 2.0 What’s next?

DEFINING WEB 2.0 A billion people, a billion definitions.

http://www.oreillynet.com/lpt/a/6228

Tim O ’Reilly’s Web 2.0 The Web As Platform Harnessing Collective Intelligence Data is the Next Intel Inside End of the Software Release Cycle Lightweight Programming Models Software Above the Level of a Single Device Rich User Experiences

Core Competencies of Web 2.0 Companies Services, not packaged software. Control over unique, hard-to-recreate data sources that get richer as more people use them Trusting users as co-developers Harnessing collective intelligence Leveraging the long tail through customer self-service Lightweight user interfaces, development models, AND business models Source: O’Reilly

A disputed term No real boundaries Multiple interpretations Defining a moving concept Web can’t be versioned Original vision of the web

A disputed term World Economic Forum Annual Meeting 2007 - The Impact of Web 2.0 (check the video on videos.google.com) “ Web 2.0 definitely is a buzzword, and it’s overused. But the movement is only starting. That movement is about leveraging the power of people” CHAD HURLEY “ What we’re seeing is a return to the roots of the web.” CATARINA FAKE Web 2.0 “is enabling a fundamental shift in power that really is giving power to the consumer” MARK PARKER “ It’s a way to collaborate with your customers, to allow them to co-create with you”. PETER SCHWARTZ

WHAT’S HAPPENING (AND WHY?) Why you can’t not care about the internet anymore

The end of the 50% of useless ads Total U.S. Internet Spending (M$) 2000: 7’134 2006: 15’998 Search Advertising 2000: 286 2006: 6’681 8% of total US advertising online in 2006E, 13%+ within 5 years. Source: The State of the Internet, Morgan Stanley

Tools for the people Blogs Technorati coComment Wikis Digg CMS Sourceforge IM Chat ADSL RSS APIs ASP ROR/LAMP Ajax Tags

From an elite/geeky media to grandma’s living room Source: The State of the Internet, Morgan Stanley Mobile Internet 1’000+ 1’343 2007 600+ 1’191 2006 300+ 1’039 2005

10-15%user growth 20-30%usage growth 30%+ monetization growth Source: The State of the Internet, Morgan Stanley

Idea = business Cheap hardware Cheap platforms (Linux, Apache) Open source = you never start from scratch Coders everywhere Money, reputation, location, network don’t matter as much as before.

Startuping is cheap DropSend: Build $48,012 / Monthly $3,625 Freshbooks Build $20,000 / Monthly $46,000 Maya’s Mom: Build $70,000 / Monthly $30,000 Mobissimo: Build $60,000 / Monthly $150,000 Wesabe: Build $200,000 / Monthly: $3,000 http://thebankwatch.com/2007/03/15/how-much-does-it-cost-to-build-the-best-web-apps-today-and-how-should-banks-react/

[email_address] www.liftconference.com technorati technorati.com/search/cocomment

A new reality Customer as the new center of gravity Global competition, open world New markets (china, russia, senior citizens, long tail) and spaces (online worlds, TVoip, voip, advertising, work collaboration) New audiences Impact on all aspects of business

New rules New balance of power New workforce New tools New competition New business models New lifestyle New environment

New players GYM Amazon Ebay Wikipedia Feedburner Flickr, blogger, Skype, technorati, techcrunch, mybloglog, cocomment, weblogs inc, numsum, writely, etc etc…

New opportunities New possibilities New audiences New markets New worlds

New challenges Share control Competition everywhere Ideas everywhere Privacy / transparency Sustainability of business models Bubble? etc…

New concepts and ideas Markets are conversations Customer is king Folksonomies Wisdom of the crowds Crowdsourcing Network effect Open is sustainable Co-creation Social Network Perpetual beta Open source Mashups Long tail The world is flat

Markets are conversations Micro publication Blogs, podcasting, vlogs Decentralization of information gathering Barrier to entry is talent Audiences are up for grab Somebody out there is talking about you Nobody can control the online conversation “ The cluetrain manifesto”, Doc Searls, David Weinberger, etc… “ Naked conversations”, Robert Scoble and Shel Israel.

Customer is king (no kidding!) People want to participate and have the tools to do so. Trust in peers, not in marketing discourse. People can now force a company to change it’s path (Sony, Kryptonite, Broadcast flag, Vichy, Google bombs)

The world is flat Thomas Friedman (NYT columnist) “ the world is becoming flat. Several technological and political forces have converged, and that has produced a global, Web-enabled playing field that allows for multiple forms of collaboration without regard to geography or distance - or soon, even language.” http://www.wired.com/wired/archive/13.05/friedman_pr.html

Friedman’s 10 Great Levelers Fall of the Berlin Wall Netscape IPO Work flow software Open-sourcing Outsourcing Offshoring Supply-chaining Insourcing In-forming Wireless

The web is out of its silo It is having an impact on your market, your strategy, your people, your competitors, your processes, etc.. Take it out of the IT department. www.liftconference.com

YOU’RE IN You are already making the new web better.

Passive contributions Every time you search, you make Google better Amazon Gmail Analytics

Active contributions Blogging Commenting Tagging Digging Wikiing

People are talking about you Technorati coComment Video/audio search Flickr

A few examples User generated content Communities Co-creation Outsourcing Global microbrand 3D

Youtube User generated content Targeted ads See also: vPod, DailyMotion, mySpace

MTV Following changes in audience habits Moving from TV to community Complete change in business model Complete change in competitive landscape See also: Le Monde, Guardian, BBC BREAKING NEWS: Read the latest State of the Media 2007 report! http://www.stateofthemedia.org/2007/

Lego Co-creation with customer Lego mindstorm And also: Lafraise, Microsoft, Google.

L’oréal Outsourcing of critical (and fun) tasks to customers Focus on practical side current_TV ( tinyurl.com/25kr3v ) See also: IBM brainstorm, Apple, Wikipedia.

Stormhoek Global microbrands, leveraging the long tail And also: Moo.com, 37signals, English Cut, Thingamy, TVBgone, Cafepress, Stardoll “ most of our members are girls and boys between the ages of 7 and 17. Stardoll is one of few places on the Internet developed with an emphasis on girls’ self-expression and fantasy fashion play”

World of warcraft Persistent 3D world Parallel economy See also: Second Life, Playstation home, Xbox live

Service based Moo.com Service model Probably 2-3 months of coding Built on top of Flickr 25$ for 100 business cards Most viral product ever

Meetic Freemium / subscription based model Millions of people Moved past early reserves (now it’s the normal behaviour) Freemium

Action based advertising Netvibes, Kelkoo Empty toolbox Built on top of the web CPA

CPM Mass (but targeted) display advertising Joost, feedburner Precise knowledge of audience location and behavior

Revenue sharing Make money on users’ content Revver

Flickr camera info Data mining Creating value from data without violating privacy Datamining

If I could be sure of this slide, I would be in the Bahamas right now Intention economy Mobile New centers of gravity (post, infosnack) New kings 3D Communicating objects Semantic web

Web 2.0

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Web 2.0