Web 2.0(08)

August, 2008

The state of Web 2.0 today

Intelligence for a networked economy

Joshua-Michéle Ross

Today’s talk

  Web 2.0 Definition   Drivers of Change   Core Patterns of Web 2.0

“Web 2.0” as a term provokes as much confusion as it does insight. In order to take meaningful action we must first create a shared understanding…

Definition

“Web 2.0 is a set of economic, social, and technology trends that collectively form the basis for the next generation of the Internet - a more mature, distinctive medium characterized by user participation, openness, and network effects” - Tim O’Reilly

Internet visualization: Flickr - surrealpenguin

Drivers of Change

Drivers of Change

  Global Reach   Persistent Connections   Edge and Cloud Ecosystem   New Revenue Models   The Age of Participation

Market Drivers

  Global Reach

1.4 billion people are online. 100 million new users join every 6 weeks… The largest marketplace in human history.

Market Drivers

  Persistent Connections

Broadband penetration has crossed 50% and is growing steadily*

*Pew Internet, 2008

Market Drivers

  Edge and Cloud Ecosystem

More and more computing is being done in “the cloud”. We access it (and feed it data) from the “edges”: browsers, mobile phones, GPS, embedded devices etc.

Market Drivers

  New Revenue Models

More viable business models

Advertising Subscription and Software as a Service (SaaS)

Microtransactions

combine with lower business startup costs – resulting in an explosion of innovation online.

Market Drivers

  The Age of Participation

For the first time human beings can find each other, organize and collaborate without any formal “organization” or need of physical proximity. The cost of organizing has dropped to near-zero. This changes everything: it is a new mode of production (crowdsourcing) and it is a social transformation. We no longer expect to be passive consumers.

Core Patterns

Core Patterns*

  Harnessing Collective Intelligence   Data as Competitive Advantage   Innovation in Assembly   Perpetual Beta

“4 (of 8 total) core patterns taken from “Web 2.0 Principles and Best Practices” 2006 – O’Reilly Radar

Harnessing Collective Intelligence   Implicit: online behavior gives you information on how to

improve customer experience

  Explicit: users are willing to add their creativity and innovation - for free, for pay or for reputation

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  Intuit Turbo Tax uses data about user decisions in aggregate to help other users make decisions (e.g. “nine out of ten people in your tax bracket do X”)

  Digg lets users collectively determine the value of content.

Data as Competitive Advantage   Building a unique data set that can be used to deliver

superior services

Fixya invites users to share tips and tricks for resolving questions on consumer products. User contribution quickly builds a valuable database that can be monetized. The more mass Fixya gets, the harder it will become to unseat them.

Innovation in Assembly   Build platforms to foster innovation in assembly, where remixing of

data and services creates new opportunities and markets   Think beyond the website. Overall, 53% of online users are

consuming content outside of a publisher's site - through the use of widgets, RSS readers, social networks and mobile devices.*

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  Facebook / Salesforce allow users to build on their platform – creating a developer ecosystem that drives growth

  Zillow taps into available data to provide real estate estimates to the public

“From “Wave 3: Universal McCann Report” March 2008

Perpetual Beta

  Software development models online are shifting from traditional models (waterfall etc.) towards processes highlighting continuous updates, user QA, and software as a service (SaaS)

  Flickr is legendary for frequently updating site functionality

  Google uses small, experimental teams to release new services, then refine them once in the market

Line of Inquiry Pattern Expression Line of Inquiry Harness Collective Intelligence

Develop software that gets better the more people use it. Tap the creative talents of anyone that you come in contact with

Are we creating software/analytics that allow us to harness collective intelligence? Are we tapping into the creative talent inside and outside our borders?

Data as Competitive Edge

Look to create a unique set of data that can answer customer needs

What data do we have or could we amass that would provide customer value?

Innovation in Assembly Allow for remixing of data (mash ups) content syndication (RSS, widgets) and competence syndication (your platform)

How do we develop a syndication strategy? Are there ways in which we can open our platform to outside development?

Perpetual Beta Encourage agile development and continuous improvement

Are we continuously improving the online experience at a competitive pace? Does our infrastructure and organizing strategy allow for a perpetual beta approach?

info@oreillyinpractice.com

Q & A