1. The Evolutionary Web
Managerial Economics in the
Web 2.0 World and Beyond
Executive MBA Class 2008
Chance favors only the prepared mind – Louis Pasteur
2. The Evolutionary Web
• The mostly read only web
• 45 Million Global Users – 1996
• Focused on Companies
• Home Pages
• Owning Content
• Brittanica Online
• HTML, Portals
• Web Forms
• Directories (taxonomy)
• Netscape, eBay
• Page Views
• Advertising
The customer is monetized
3. The New World of Collaboration
• Openness – MIT’S Open Course Ware.
• Peering – Open Source Linux.
• Sharing – VoIP enablement, Multimedia
platform, Mobility e.g. Skype, iPhone
• Hearing – WOMM, NPS e.g. Starbucks
• Acting Globally and not just as an MNC.
Toyota/Scion’s steps towards this Vision.
Open Source from Microsoft ???????
4. Web 2.0 & it’s Genesis
• Web 0.0 - Technology
– Was Technology Oriented
– Enablement of Application Design on www
– Informative, Expense side of the Balance Sheet, No ROI
Realization
• Web 1.0 - Commerce
– Popularly known as eCommerce
– Major force in 90’s for trade/business over the web
– ROI Realization
– Core competencies of many new-age organization – Amazon,
eBay etc.
• Web 2.0 – People and Communities
– Information Age
– A movement for self expression
5. Web 2.0 & it’s Genesis
• The term ‘Web 2.0’ introduced by Tim O’Reilly at
a conference in 2004
• ‘Web 2.0’ - an improved form of the World Wide
Web
• Emphasizing tools/platforms that enable users to
tag, blog, comment, modify, augment, rank etc.
• Notion of The ‘Participatory Web’
6. • Recipe for Web 2.0:
– Web as a platform
– Software above a single device
– Data as the new Intel inside
– Harnessing collective intelligence
– Lightweight business models, e.g. SaaS
– Rich Internet Applications (RIA, AJAX, RoR)
– Mashups (RSS)
Web 2.0 - A Primer
13. The Evolutionary Web
• The mostly read only web
• 45 Million Global Users – 1996
• Focused on Companies
• Home Pages
• Owning Content
• Britannica Online
• HTML, Portals
• Web Forms
• Directories (taxonomy)
• Netscape, eBay
• Page Views
• Advertising
The customer is monetized
• The wildly read/write web
• 1 Billion Global Users – 2006
• Focused on Communities
• Blogs
• Sharing Content
• Wilkipedia
• XML, AJAX, RSS
• Web Applications/Services
• Tagging (folksonomy)
• Google, Facebook
• CPC/CPM
• Word of Mouth
The customer strikes back
14. Global Business 2.0 Models
Step 1 : Create a large/focused niche user community
Step 2 : Monetize once the community reaches critical
mass
- Sell special services targeted at community (LinkedIn)
- Sell services to a large group of SMEs (Salesforce.com)
- Sell data to partners (Facebook)
- Get a revenue share from transactions (eBay)
- Sell advertisements (Google Adwords)
- Freemium: Sell premium memberships (Flickr)
- Sell your company (Youtube)
19. Companies must pay attention to the
Participation culture
113 million -
Blogs tracked by Technorati.com
20. Who do Consumers Trust ?
The CEO / Ad agencies /
marketers
Or
“A person like Me or You”
i.e. other consumers or
peers
2 - New blogs posted every
second
21. Web 2.0 has put consumers in
control of the conversation
Every consumer is…
22. …a Publisher
…a Disc Jockey
…a Critic
…a Movie Director
…a Networker
…an ENTREPRENEUR
26. Enterprise 2.0 Attributes
• Application of Web 2.0 within the
enterprise to solve / improve
internal work practices
• Collection of Web 2.0
tools/platforms for increased
productivity and information
sharing
• Harnessing of COLLECTIVE
employee and customer
intelligence
• e.g. blogs, wikis, mash-ups,
project management tools,
Software as a service (SAAS)
• Driver: remote collaboration
requirements across different
locations / time zones
28. Enterprise 2.0 Opportunities
• Social Marketing/PR
• 360 Degree Real Time Feedback Mechanisms
• NPS – Net Promoter Scores – Customer WOM
• Direct Sales
• Brand Building
– promotions, advertising on social networks, events
– referrals, lead generation
• Mediated Marketing Research
• Viral Marketing
30. "I think there is a world market for maybe five computers."
Thomas Watson, chairman of IBM, 1943
"Computers in the future may weigh no more than
1.5 tons."
Popular Mechanics, forecasting the relentless march of science, 1949
"640K ought to be enough for anybody."
Bill Gates, 1981 apocryphal
"There is no reason anyone would want a computer in
their home."
Ken Olson, president, chairman and founder of Digital Equipment Corp., 1977
The Thing about Predictions...
31. Crystal Ball Gazing
• What is beyond Web 2.0 ?
Pervasive Mobile Technology
Artificial Intelligence
Speech Technologies
The Web as an Open Source Database
The Web without Browsers
The Semantic Web
Cloud Computing
Machines taking over our entire thinking??
32. The Semantic Web
• A web of data that can be processed directly
and indirectly by machines – Tim Berners
Lee
RDF – Resource Description Framework
OWL- Ontology Web Language
CoIN-Context InterChange
COWL- Context OWL
RML – Rule ML (Extension of HTML, XML)
33. The Evolutionary Web
• The mostly read only web
• 45 Million Global Users – 1996
• Focused on Companies
• Home Pages
• Owning Content
• Britannica Online
• HTML, Portals
• Web Forms
• Directories (taxonomy)
• Netscape, eBay
• Page Views
• Advertising
The customer is monetized
• The wildly read/write web
• 1 Billion Global Users – 2006
• Focused on Communities
• Blogs
• Sharing Content
• Wilkipedia
• XML, AJAX, RSS
• Web Applications/Services
• Tagging (folksonomy)
• Google, Facebook
• CPC/CPM
• Word of Mouth
The customer strikes back
• The read/write/execute web
• ?? Billion Global Users – 2010
• Focused on Individuals
• Lifestreams, Mobility
• Consolidating Dynamic Content
• The Semantic Web
• Widgets; Drag/Drop Mashups
• Open Interactive Databases
• User Behavior (me-onomy)
• iGoogle, Netvibes
• User Engagement
• Advertainment
• Enterprise Mobility
The customer customizes
The age of the Muppies (Mobile Yuppies) has Dawned