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

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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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
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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