® © 2008 ibm corporation ibm software group social networks: making business sense of out them...
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®
© 2008 IBM Corporation
IBM Software Group
Social Networks: Making Business Sense of out themSandeep BakhshiASEAN Business Unit Executive, Lotus SoftwareSingapore Digital Media Festival – October 2008
IBM Software Group
© 2008 IBM Corporation2
Topics
What is Web 2.0?
Why should you care about Web 2.0?
IBM customer examples
New business models
Summary
IBM Software Group
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Disruptive Innovation:
The Internet, the Web, e-business
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The impact of the internet – as a disruptive technology - has already transformed our world
Email: Over 40 Billion sent daily Texting: Number sent and received every
day exceeds the total population of the planet
Google: Nearing 100 Billion searches per month
Revenues for iconic Web 1.0 Companies - Amazon.com $10.7 Billion in 2006- E-Bay.com $5.97 Billion in 2006
Digital Content: In 2006, amount created was about 3 Million times more than all the information that is in all the books ever written
e-Commerce: In 2006, more than 85% of the world’s online population (875 Million consumers) has used the Internet to make a purchase—online shopping market up 40% in the past two years
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Web 2.0
Virtual Worlds
SOA
Mashups
Mobile Devices
Social Software
Blogs
Folksonomy
Web Analytics
Software as a Service
Wikis
Mobile 2.0
3D Internet
Telepresence
Web 2.0, 3DI & more…..The next major wave of disruptive change…
Wisdom of crowds
Micro-blogging
Semantic Web
Micro-payments
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This new wave of Web 2.0 disruptive technology is transforming all aspects of our consumer experience
MySpace: over 175 Million members; over 67 Billion page views per month
Facebook: over 75 Million active members; over 15 Billion page views per month
YouTube: Tracks around 16 billion page views per month
Second Life: 9.5 Million registrations (logins created); 91,000 premium users (users who pay for land)
Twitter – Not just for consumers any more: The Los Angeles Fire Department USA presidential candidates Ron Paul, John
Edwards, Barack Obama
In China, there are 100,000 new broadband users everyday
Mobile devices outnumber desktop computers by a factor of two
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What is Web 2.0?
“Web 2.0 is a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet … characterized by user participation, openness, and network effects.”
—O’Reilly Radar
Pandora/RhapsodyNapster
MySpace/FacebookGeoCities
FlickrOfoto
Google MapsMapQuest
BlogsHome pages
Del.icio.usYahoo!
WikipediaBritannica Online
Web 2.0Web 1.0 Web 2.0 is about …
PEOPLESocial computingConnect to expertise
PLATFORMWeb as a delivery platform
Access services online
APPLICATION DEVELOPMENTChange the economics of application development
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Licensed under Creative CommonsAttribution Non-Commercial-ShareAlike 2.0 GermanyLudwig Gatzke
There is a lot of Web 2.0 out there….
• Blabberize, • BillMonk, • Blippr• FoodFeed, • Yay Hooray, • Denodo• Greedy or Needy, • Predicity, • YubNub, • Savy Auntie• Fileswap.com, • Plurk.com, • BarbieGirls, • Profilactic.com
Source: Robert Luhn in August PC World “Web 2.0’s Most Ridiculous Sites”
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Seriously - what’s it about?
Tim O’Rielly “Systems that get better the more people use them”
Enterprise 2.0 is really about corporate transformationCan involve Web 2.0 technologies and social computingPredicated on corporate change
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Source: Forrester as reported by: http://www.micropersuasion.com/2006/03/institutional_p.html
What is Social Computing
Social computing refers to the use of social software, a growing trend in IT usage of tools that support social interaction and communication.
Social software enables people to rendezvous, connect or collaborate through computer-mediated communication and to form online communities.
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Where are the users?All ages,
All demographics,
World wide
How many of us know what social networking is?
Synovate – Sept 2008 survey of 13000 adults aged 18-65 in 17 (developed world) markets
– 42% according to Synovate
• Goes up as you survey younger people.
• Approx a third report that they’re losing interest.
• Authors point out that there appears to be a healthy respect for online vs physical worlds and maintaining
a balance.
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What are they doing….
As reported by Jon Brodkin, Network World, 07/10/2008
Gartner reports that most of us using Web 2.0 and social computing are: – “motivated by personal needs and a desire for entertainment, rather than
business and practical objectives.”– We share: photos, activities, opinions, …. “have fun”
User-Generated Content
Published Content
Collective Intelligence
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Why should you care about Web 2.0?
You can measure the ROI of Web 2.0 across a variety of sources. Here’s an example of how IBM benefited from Web 2.0 with its Enterprise Tagging Services (ETS), which:
Allows users to tag pages in the IBM intranet Is integrated with enterprise search to significantly reduce search time
ROI
Improved growth through innovation
Broadened the collective intelligence to drive innovation
Improved efficiency
Cut search time by an average of 12 seconds
With 286,584 search visits per week, saved
955 hours
At US$100 per hour,
40 hours per week
and 48 weeks per year,
gained US$4.6 million in productivity
Cost avoidance
Avoided US$2.4 million
in costs through the reusability of the ETS widget
Increased empowerment of key resources
Enabled better use of key experts and content across the organization
Uncovered information with an estimated value of US$500,000 per year
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• User-driven adoption
• Value on demand• Low cost of entry• Public
infrastructure
Software as aSERVICE
Service, not software
COMMUNITYmechanisms • Recommendation
s• Social networking
features• Tagging• User comments• Community rights
management
Users add value
The three software patterns driving Web 2.0
SIMPLEuser interface and dataservices
• Responsive UIs (AJAX)• Feeds (Atom, RSS)• Simple extensions• Mashups (REST APIs)
Easy to use, easy to remix
Web 2.0
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Retail: more trustworthy transactionsReviews and ratings
Consumer Reviews
Trust: Reviewer history
Offering preview includes ratings
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Retail: more trustworthy transactionseBay reputation-based selling
Seller reputation is founded on buyer reputations
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Entertainment: more effective personalizationRecommendations – based on your ratings
Movies are recommended based on what you’ve enjoyed in the past
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Government: leverage the wisdom of crowds Collect and refine ideas in real time
“Jams” are used to conduct electronic brainstorming sessions with a large audience
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Government: leverage the wisdom of crowdsCommunity patent review
The public can see patent applications before they are finalized, giving a chance to comment on claims or submit prior art
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Finance: leverage the wisdom of crowds Tax guide emerging from the “wisdom of crowds”
This tax guide is a wiki, written by volunteer experts
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Real Estate: greater transparency through data mashups
This example is a “mashup” of data from local deed registrars and real estate listings
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Government: expose data for greater impact Mapping avian flu data
Declan Butler (a reporter for Nature) is mapping H5N1 news reports onto Google Earth and posting them on his blog
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IBM social networking at work at Cardiff University
Improves research agenda with IBM Lotus Connections software
Business challenge Improve overall employee productivity by allowing faculty to tap into
the vast amount of knowledge and skills across the university
Solution An enterprise-wide directory service based on IBM Lotus Connections
software that:– Enables researchers and staff to search for skills, projects, teams
and knowledge throughout the institution– Allows users to locate information quickly, interact with people in
realtime and advance research projects through collaboration
Benefits Increased collaboration across previously isolated schools and faculties Improved the university experience of faculty and students Enhanced teaching methods and materials Increased efficiencies in research projects and grant management
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IBM Mashup Center at work at Boeing
Purpose: enable U.S. Federal Aviation Administration (FAA) officials to quickly identify the nearest airport that can safely handle an incoming aircraft for emergency response
Boeing Air Traffic Management
Created by IBM and Boeing to demonstrate next-generation aviation capabilities
Draws from existing data and systems to enable officials to react to unexpected events
Built within three weeks and delivered to the FAA, the U.S. Department of Defense and the U.S. Department of Homeland Security
“As an established innovator, Boeing believes in the power of Web 2.0 and embraces it not only for collaborative work, but also for the heavy lifting of enterprise planning and execution. IBM Mashup Center is playing a key role in our visionary approach to strategic asset management. It's critical to know where your major assets are and how to use them at any given time, situation or condition.”
— Paul Comitz, Boeing, IBM press release, June 5, 2008
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Entertainment: communication through popular mediaPublic contribution of photos and videos
Most news channels (and a few others) are seeking contributions from the general public, in the style of YouTube
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Advertising: communication through popular mediaDorito’s social marketing experiment
Superbowl commercials were produced by amateurs at very low cost
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Collaboration 2.0 available to 500K of us
• Profile: 515k profiles on bluepages; 6.4M+ searches per week
• Communities: 1,800+ online communities w/147k members and 1M+ messages
• WikiCentral: 25K+ wikis with 320K+ unique readers
• BlogCentral: 62k users; 260k entries; 30k tags
• Dogear: 580k bookmarks; 1.4M tags; 20k users
• Activities: 50k activities, 425k entries; 80K users
• Instant Messaging: 4M+ per day
Usage
• Search satisfaction has increased by 50% with a productivity driven savings of $4.5M per year
• $700K savings per month in reduced travel
• Significant reduction in phonemail, email server costs
Social Software in Action at IBM
Return on Investment
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Gartner Hype Curve
Source: Gartner
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Gartner Years to Mainstream Adoption
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Why should you care about Web 2.0? (continued)
Companies are investing in Web 2.0 to increase their competitive advantage
Source: McKinsey Quarterly Survey on Web 2.0, July 2008.
1. Forrester, Global Enterprise Web 2.0 Market Forecast: 2007 To 2013, G. Oliver Young, April 21, 2008. 2 Gartner, Hype Cycle for Emerging Technologies, July 2008.3 Economist Intelligence Unit Survey, January 2007.
Web 2.0 adoption trends
21%
24% 24% 23%
27%
34% 33% 32%
29% 28%
Blogs RSS Wikis Podcasts Social networking
2007 2008
Forrester projects significant adoption of Web 2.0, saying that enterprise spending on Web 2.0 is expected to grow from US$764 million in 2008 to US$4.6 billion in 2013.1
Gartner ranks Web 2.0 as a transformational trend in the short term—less than two years.2
Twenty-two percent of organizations surveyed are using mashups now. An additional 42 percent plan to use mashups within two years.3
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Web 2.0 opportunities exist in three key areas…
Capitalizing on New Markets & Business Models
Getting Closer to Your Markets & Customers
Creating New Capabilities
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… With 8 new rules to consider
Capitalizing on New Markets & Business Models
Getting Closer to Your Markets & Customers
Creating New Capabilities
4. Trust the network – it really does know more than you
5. Embrace your customers
6. Use social networks to create solutions
7. Embed flexibility in business models and information systems
8. Foster rapid, collaborative innovation in the enterprise
1. Grab and monetize the Long Tail of demand
2. Get ready - Your customers value digital content
3. Jump in - Virtual worlds are real business
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Revenues from New Business Models Growing 6X Revenues from Traditional Models
Mobile Video
User Content
Handheld Media
Broadband Entertainment
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Content Hyper-syndicationModel with secure, professional content available online and on standard devices
Source: IBM Institute for Business Value (IBV)
Four Business Models 2006—2010
Four business models are key to growth for the next 3-5 years; they span from the traditional to highly disruptive for media players
Walled Communities
Model integrates user- and community-content within a “walled” access environment
Traditional Media BusinessModel relies on professional, branded content within a “walled” access environment; incumbents have legacy position
Open Proprietary Distribution and Device Platforms
New Platform Aggregation
Model relies on user-generated content and open distribution platforms; most disruptive for media industry
User/ Community Contribution
Produced by Professionals
ContentSource
IBM Software Group
© 2008 IBM Corporation35
Hyper Content SyndicationMy BBC Playerabc.comWarner Bros on BitTorrentAmazon.com Video Store World of Warcraft
Source: IBM Institute for Business Value (IBV)
Market Examples
Popular names lead each model. Position today, however, may not be the same as tomorrow
Walled Communities
Apple iLife GarageBandsApple Pod/Vid-castsNTT User-run CommunitiesComcast/Current TV
Traditional MediaBBCWarner Bros.ABCEMI Group
Open Proprietary Distribution and Device Platforms
New Platform AggregationSecond LifeGoogle/YouTubeSellABand.comYahoo! 9sMySpace (NewsCorp)Grouper (Sony)
User/ Community Contribution
Produced by Professionals
ContentSource
NTT Comcast BSkyB
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Source: IBM Institute for Business Value (IBV)
Opportunities for Media Cos.
Based on their starting position, content owners and traditional media distributors each have two choices
Open Proprietary Distribution and Device Platforms
User/ Community Contribution
Produced by Professionals
ContentSource
1Become New Platform Aggregator
2 Take Brands “Open”
2Reinvent Walled Experiences
Content Owner OptionsMedia Distributor Options
Traditional Media Company Starting Position
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ContentSource
Source: IBM Institute for Business Value (IBV)
New Platform Aggregation
All media companies may look to the new corners of innovation; buy vs. build most likely to speed participation
New platform aggregation offers avenue for growth and first-hand
learning, but also may represent, in its extreme form, an abandonment of historical
business models
Open Proprietary Distribution and Device Platforms
User/ Community Contribution
Produced by Professionals
1
New Platform
Aggregation
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ContentSource
Source: IBM Institute for Business Value (IBV)
Incumbent Movements
Players may participate in “white space,” their strength is in adapting, not abandoning, current assets. Doing nothing, not an option
Open Proprietary Distribution and Device Platforms
Dis
trib
uto
rs BSkyBNTTComcast
BBCABCWarner Bros
My BBC Playerabc.comWarner Bros on
Bittorrent
Content Owners
Apple iLife GarageBandsApple Pod/Vid-castsNTT Community-run
NetworkComcast/Current TV
User Advertising and Content
User/ Community Contribution
Produced by Professionals
2
2
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What’s Next…. Web 3.0???
While Web 2.0 was based on Ajax, and php scripting languages….. Web 3.0 will be “applications that are pieced together” - with the characteristics that the apps are relatively small, the data is in the cloud, the apps can run on any device (PC or mobile), the apps are very fast and very customizable, and are distributed virally (social networks, email, etc
See Wikipedia for an evolving definition…..
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Embrace your customers
Ease of access reduces relationship barrier and creates new opportunities to: change the way enterprises connect build customer relationships
Build rich communities of participation (crowdsourcing) by opening up the dialogue and encouraging discussion around your own products and services Improves the overall quality Creates better products and services Creates better brand experience Lowered costs to serve new customers
Source: www.wikipedia.com
Our analysis identified 55% of sampled large enterprises and 45% of start-ups focused on creating Value by embracing customers
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Embrace your customersExample: Intuit – Consumer product, professional & early adopter community users helping each other
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Embrace your customersExample: Patientslikeme – Patients helping each other & the medical community
For Patients: Provides a specialized social network
forum for patients that suffer from life altering diseases
Patients sharing their information, knowledge and experience & offering each other support
Consolidates personal accounts and tracks progress
For Doctors, Researchers, Pharma, Medical companies:
Provides Researchers insight & access to patient communities
Provides Doctors insight to how peers are approaching a particular ailment and medication (e.g., . distribution of dosage range, side effect frequencies)
Sources: company website, http://money.cnn.com/magazines/business2/business2_archive/2007/09/01/100169862/index.htm
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Use social networks to create solutions
Innovative technologies are opening up an entirely new dimension to integrating an ecosystem – a long establish solution strategy
Solutions require better integration across business partners to meet client needs.
Social networks, enabled by innovative technologies, are critical components for creating these web-based solutions driving value in key areas: Building loyalty, trust and camaraderie in an increasingly mobile and global
marketplace Fostering innovative discussion and support among online communities with
committed participants, expert users and early adopters Creating advocates for the company in the increasingly transparent world of the
social web, where information and misinformation disperses instantaneously.
Our analysis identified 55% of sampled large enterprises and 37% of start-ups are exploring Value 2.0 through social networks & corresponding ecosystems
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The United Nation’s (UN) World Urban Forum (WUF) and government of Canada engaged IBM to sponsor HabitatJam to help set the agenda for WUF3, the biannual conference on urban sustainability.
HabitatJam – the largest brainstorming ever on urban sustainability 39,000 participants from 191 countries Delegates, Politicans, Academics, Aid Organizations, & Slum
Dwellers (whose lives would ultimately be impacted)
On-the-ground events – Jam cafes – brought together thousands of slum dwellers (people who had never seen a computer): Kibera, Kenya: Hundreds of slum dwellers lined up for hours
to have their messages typed into a computer Delhi, India: 10,000+ people gathered in slums to express
their views and discuss the problems of the world's cities. Similar events were held in Russia, the Congo, Colombia,
Cameroon, Brazil, Uruguay, Peru and Bangladesh.
Foster rapid, collaborative innovation in the enterpriseExample: IBM Jams: Collaborative Innovation
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Web 2.0 is Us(ing)/Us
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BACKUPS
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Why IBM?
IBM is a leader in Web 2.0, helping organizations realize better business outcomes
Web 2.0 unlocks the value of participation associated with people, platform and application development
Web 2.0
IBM is particularly well positioned to address the key pillars of Web 2.0
People—IBM leads in enterprise social software that connects experts and makes your teams more agile, with the security and strength you expect from IBM.
Application development—IBM delivers the Web 2.0 technologies needed to build Web 2.0 solutions, whether they’re enterprise applications or situational mashups.
Platform—IBM’s tools, middleware and security solutions enable you to use the Web as a delivery platform—virtually anytime, anywhere—extending your organization’s reach.
IBM supports the spectrum of delivery models
Software as a service Hosted Appliance On premise
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Why IBM? (continued)
What analysts are saying
“IBM was the clear winner across the board.”4
“What IBM is offering here … is a full suite of products designed to address the needs of developers, while providing a front-end, self-service mashup composition product for business users.”5
4 Mike Gotta, E2.0 Conference: Social Computing Platforms, June 19, 2008, Collaborative Thinking Blog.5 Application Development Trends, IBM's Mashup Play, John K. Waters, June 9, 2008, http://www.adtmag.com/article.aspx?id=22747
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People—connect, collaborate and innovate
IBM social networking solutions—harnessing the power of participation
Increased collaboration for better business outcomes
Why social computing? Capture and preserve tacit information Leverage information more effectively Discover and unlock expertise Coordinate ad hoc activities and reuse what
works
What IBM offers IBM Lotus® Connections software
- Dogear- Communities- Profiles- Blogs- Activities
IBM Lotus Quickr™ software IBM Lotus Sametime® software IBM WebSphere® Commerce software
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Web 2.0 enterprise applications from IBM
Connect
IBM WebSphere MQ 7.0 IBM WebSphere
DataPower® SOA appliances
Web 2.0 SupportPac® for CICS®
Web 2.0 Starter Toolkit for DB2®
Build
IBM Lotus Forms IBM Rational® Team
Concert IBM Rational Software
Architect IBM Rational AppScan®
IBM Rational Tester for SOA Quality
Deploy
IBM Lotus Expeditor IBM WebSphere Portal IBM WebSphere
Application Server Feature Pack for Web 2.0
Manage
IBM Tivoli® Composite Application Manager
IBM Tivoli Federated Identity Manager
IBM Tivoli Security Policy Manager
For example, build Web 2.0 solutions using simple Web 2.0–based technologies
IBM Rational Team Concert softwareHold collaborative debugging sessions in realtime around the world
IBM Rational AppScan softwareLeverage scalable individual and
enterprise solutions for assessing and remediating security vulnerabilities
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Application development—simple to build, quick to remix, easy to extend
Web 2.0 application development from IBM—deliver Web 2.0 solutions with Web 2.0 technologies
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Enterprise applications Mashups and situational applications
A lightweight Web application created by combining information or capabilities from more than one existing source to deliver new functions and insights
Rapid creation—in days, not months Reuse of existing capabilities to deliver
new functionality and fresh insight Limited to no technical skills required Often a mix of internal and external
sources
Leverage and extend existing infrastructure
Access applications from the office, on the road or at home
Build Web 2.0 solutions using simple Web 2.0 technologies
Extend your enterprise and improve security with IBM
CONNECT
BUILD
MANAGE
DEPLOY
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The Web as a delivery platform—erase boundaries, extend value networks
Access services anytime, anywhere—across your network of partners, customers, suppliers and employees
Bluehouse
Share content Discover expertise Communicate and hold
meetings Represent ideas
visually Assemble business
Web sites
IBM Lotus Sametime Unyte®
Engage in anytime, anywhere Web conferencing in minutes
Share presentations Use the solution
24x7x365 Benefit from security-rich
128-bit SSL encryption
WebSphere Portal
Deploy rich, browser-based applications
Gain enterprise-grade security and governance
Benefit from broad support of Web 2.0 services and industry standards
Lotus Expeditor
Provide offline and online access to business mashups and composite applications with the client integration framework
Support laptops, desktops, kiosks and mobile device clients
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Legal information
© Copyright IBM Corporation 2008
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Produced in the United States of AmericaSeptember 2008All Rights Reserved
IBM, the IBM logo, and ibm.com are trademarks or registered trademarks of International Business Machines Corporation in the United States, other countries, or both. These and other IBM trademarked terms are marked on their first occurrence in this information with the appropriate symbol (® or ™), indicating U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the Web at ibm.com/legal/copytrade.shtml
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Java and all Java-based trademarks and logos are trademarks of Sun Microsystems, Inc. in the United States, other countries, or both
Other company, product, or service names may be trademarks or service marks of others.
The information contained in this publication is provided for informational purposes only. While efforts were made to verify the completeness and accuracy of the information contained in this publication, it is provided “as is” without warranty of any kind, express or implied. In addition, this information is based on IBM’s current product plans and strategy, which are subject to change by IBM without notice. IBM shall not be responsible for any damages arising out of the use of, or otherwise related to, this publication or any other materials. Nothing contained in this publication is intended to, nor shall have the effect of, creating any warranties or representations from IBM or its suppliers or licensors, or altering the terms and conditions of the applicable license agreement governing the use of IBM software.
References in this publication to IBM products or services do not imply that IBM intends to make them available in all countries in which IBM operates.
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While traditional revenues dominate today, growth will be found in new, more open spaces and communities
Open Proprietary Distribution and Device Platforms
User/ Community Contribution
Produced by Professionals
ContentSource
Size indicates revenue size 2006
Traditional Media Business2006 Size: $277CAGR: 5%
Content Hyper Syndication2006 Size: $9BCAGR: 33%
New Platform Aggregation2006 Size: $29BCAGR: 16%
Walled Communities2006 Size: $166B
CAGR: 10% Consensus forecast revenue 2010
Aggressive forecast revenue 2010
2010 Business Models
Source: Original data sources include PricewaterhouseCoopers, “Entertainment and Media Outlook 2006—2010,” June 2006; Datamonitor, “Broadcast TV to Mobile,” mobile advertising from Informa “Advertising Services: generating revenue through subsidised content’” September 2006; Veronis, Suhler and Stevenson, “Communications Industry Forecast,” May, 2005 and industry interviews
Notes: Traditional Media includes revenue from theatrical, video sell-thru and rental, physical music, TV advertising, syndication and licensing, retail video gaming and VOD/PPV via MSO/Telco/DBS; Content Hyper Syndication includes revenue digital music, film rentals and streaming, interactive TV promotions, and gaming online; New Platform Aggregation includes revenue from online advertising; Walled Communities includes TV basic and premium subscriptions as well as mobile music, television, ringtones, gaming and other content
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Let Web 2.0 work for you
Start your pilots Web 2.0 can be a low-risk, high-reward initiative—
with immediate payback
Build consensus At the start, organizational alignment is more
important than technology decisions
Measure the results Web 2.0 is new and exciting, but at the end of the
day, you still expect results
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Helpful resources
Web 2.0 Goes to Work—ibm.com/web20
Lotus Greenhouse—greenhouse.lotus.com/home/login.jsp
Organizational Effectiveness—ibm.com/cio/empower
IBM Web 2.0 Tell Your Boss kit—ibm.com/developerworks/lotus/kits/d-ls-web20kit2
IBM Global CEO Study 2008—ibm.com/services/us/gbs/bus/html/ceostudy2008.html
IBM Global Human Capital Study 2008—ibm.com/services/us/gbs/bus/html/2008ghcs.html
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Web 2.0 Success according to Gartner
Web 2.0 in the enterprise:
Six keys to success Six mistakes to avoid
1. Start small and cultivate success.
2. Make it open and easy to use and reuse.
3. Expose connections and let users create structure, share bookmarks, use tags and so forth.
4. Links to e-mail, syndication.
5. Identify the right context.
6. Plan for growth.
1. Don't ignore accountability and responsibility.
2. Don't think of Web 2.0 as a passing fad.
3. Don't try to solve all with Web 2.0.
4. Build it with a business purpose in mind.
5. Don't overengineer — build for adoption.
6. Don't set too many restrictions.
SOURCE: GARTNER
Published by Network World, Jon Brodkin, 09/21/2007