web 2.0
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laurent@liftconference.comwww.liftconference.com
WEB 2.0The web is certainly
making an impact somewhere near you.
Laurent HAUG
laurent@liftconference.com
www.liftconference.com
laurent@liftconference.comwww.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?
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DEFINING WEB 2.0
A billion people,
a billion definitions.
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http://www.oreillynet.com/lpt/a/6228
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Tim O’Reilly’s Web 2.0
1. The Web As Platform
2. Harnessing Collective Intelligence
3. Data is the Next Intel Inside
4. End of the Software Release Cycle
5. Lightweight Programming Models
6. Software Above the Level of a Single Device
7. Rich User Experiences
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1.0 <-> 2.0
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A disputed term
• No real boundaries
• Multiple interpretations
• Defining a moving concept
• Web can’t be versioned
• Original vision of the web
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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
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WHAT’S HAPPENING(AND WHY?)
Why you can’t not care about the internet anymore
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New players
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ONLINE $
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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
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NEW TOOLSAND INFRASTRUCTURE
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Tools for the people
• Blogs• Technorati• coComment• Wikis• Digg• CMS• Sourceforge• IM• Chat
• ADSL• RSS• APIs• ASP• ROR/LAMP• Ajax• Tags
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CONNECTED PEOPLE
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From an elite/geeky mediato grandma’s living room
Internet Mobile
2005 1’039 300+
2006 1’191 600+
2007 1’343 1’000+
Source: The State of the Internet, Morgan Stanley
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• 10-15%user growth
• 20-30%usage growth
• 30%+ monetization growthSource: The State of the Internet, Morgan Stanley
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Evolution of users expectationsand services offering
0
10
20
30
40
50
60
70
80
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19981999200020012002 20032004200520062007Time
Users expectationsServices offering
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GETTING TOMARKET IS EASY
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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.
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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/
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scoble
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Techcrunch
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technorati
technorati.com/search/cocomment
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BUZZWORD?
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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
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New rules
• New balance of power
• New workforce
• New tools
• New competition
• New business models
• New lifestyle
• New environment
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New players
• GYM• Amazon• Ebay• Wikipedia• Feedburner• Flickr, blogger, Skype, technorati,
techcrunch, mybloglog, cocomment, weblogs inc, numsum, writely, etc etc…
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New opportunities
• New possibilities
• New audiences
• New markets
• New worlds
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New challenges
• Share control
• Competition everywhere
• Ideas everywhere
• Privacy / transparency
• Sustainability of business models
• Bubble?
etc…
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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
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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.
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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)
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Google bombs
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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
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Friedman’s 10 Great Levelers
1. Fall of the Berlin Wall
2. Netscape IPO
3. Work flow software
4. Open-sourcing
5. Outsourcing
6. Offshoring
7. Supply-chaining
8. Insourcing
9. In-forming
10. Wireless
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The long tail
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ONE THING TO REMEMBER
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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
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YOU’RE IN
You are already making the new web better.
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Passive contributions
• Every time you search, you make Google better
• Amazon
• Gmail
• Analytics
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Active contributions
• Blogging
• Commenting
• Tagging
• Digging
• Wikiing
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People are talking about you
• Technorati
• coComment
• Video/audio search
• Flickr
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BUSINESS 2.0
Buckle up
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A few examples
• User generated content
• Communities
• Co-creation
• Outsourcing
• Global microbrand
• 3D
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Youtube
• User generated content
• Targeted ads
• See also: vPod, DailyMotion, mySpace
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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/
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Lego
• Co-creation with customer
• Lego mindstorm
• And also: Lafraise, Microsoft, Google.
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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.
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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”
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World of warcraft
• Persistent 3D world
• Parallel economy
• See also: Second Life, Playstation home, Xbox live
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WEB 2.0 BUSINESS MODELS
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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
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• Meetic
• Freemium / subscription based model
• Millions of people
• Moved past early reserves (now it’s the normal behaviour)
Freemium
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• Action based advertising
• Netvibes, Kelkoo
• Empty toolbox
• Built on top of the web
CPA
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CPM
• Mass (but targeted) display advertising
• Joost, feedburner
• Precise knowledge of audience location and behavior
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Revenue sharing
• Make money on users’ content
• Revver
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• Flickr camera info
• Data mining
• Creating value from data without violating privacy
Datamining
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BEYOND WEB2.0
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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
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