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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Galit FeinSenior Analyst & VP
Governance & Sourcing
© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
Agenda
What is Web 2008?
Web evolution:
Web 2.0, web 3.0, web X.0
Best Practices
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Web Evolution
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Static, one-way publishing medium
Transactions
Interactive, virtual communities
Semantic Web
Intelligent Web
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Web 2008: What’s in It for Enterprises?
Open, collaborative, & participatory model for: Enriched end-user experience Online social collaboration
CommunitySocial Networking
BusinessNew models
TechnologyWeb as a platform
Web 2008
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Strategic IT
Web 2.0
Business
Web 2008 – an “Enterprise” Issue!
Web 08’ tools, technologies, & concepts help business find:• New customers• Retain existing customers more effectively• Provide products & services at higher profit margin
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The Long Tail
Traditional Focus
• High value,
high potential customers
Web 2.0 Concept
• Customers who buy a few items but aggregate into a substantial amount of revenue
Millions of markets of a few may be more profitable
than a few markets of millions
Amazon.com, Apple iTunes
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Anatomy of the Long Tail Theory
Online services carry far more inventory than traditional retailers
Even as consumers flock to mainstream products, there is real demand for niche fare found only online
RhapsodyAmazon.com
NetflixTotal inventory:
2.3 million books
Barnes & Noble Store:130,000 books
Total inventory:735,000 songs
Wall Mart Store:30,000 songs
Total inventory:25,000 DVDs
Blockbuster Store:3,000 DVDs
Source: Erik Brynjotfision, Jeffrey Hu, Michael Smith, MIT
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
Self-Service Israeli Trends
Not an innovative concept Most orgs. are planning to invest into customer self-
service improvement: Cost saving Improved customer satisfaction
Disadvantage: lack of customer sense of belonging
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Start Self-Service
Build product simpler version
Effective Internet
search engine
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Collective Intelligence
Trust your users & their experience, they should NO longer be:• Created • Managed • Hosted • Controlled
User as contributor
Tagging not taxonomy
Examples:Barnesandnoble.com vs. Amazon Britannica Online vs. Wikipedia Ofoto vs. Flickr
by Producers of products & services
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Digg
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Data Collaboration
Specialized database
Value-added services - mashups
Hackability
Examples:
GeoBlogger
Google Maps
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HousingMaps
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Social Phenomenon - Blogs
Web site where people can enter their thoughts, ideas, comments
Why Blog?
• High Google rank
• Tell company story
• Web search - the primary way for your prospective customers learn about you
Disadvantage: time-consuming, high commitment
CIO Blogs: CIO Magazine editors' and writers' blogs (http://blogs.cio.com)
Jonathan’s Blog: Sun CEO & President Jonathan Schwartz's blog (http://blogs.sun.com/jonathan)
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Blogs Give Companies a Human Face
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Planning to roll out blogs to
employees and
customers
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Social Phenomenon - Wikis
Web-based system where users can create & edit content Contribution by experts, employees, & users
Sharing of ideas or viewpoints by a group or a project team
Communication efficiency over "back & forth" exchanges of emails
Centralized, shared repositories of knowledge & documents• Dresdner Kleinwort Bank, General Motors, Microsoft
Virtual communities – external support, feedback, & recommendations about a company’s products & services• LinkedIn, Facebook
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
Wikis Israeli Trends
Most orgs. search to insert usage in enterprise &
customer wikis:
Innovative technologies
Products & services
Won’t enable customers to update content
Not for expert-based companies
Disadvantage: security
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Lightweight Programming Models
Technology:
• AJAX (Asynchronous JavaScript and XML):
Web development technique for creating interactive Web application
• RSS (Really Simple Syndication) :
Syndication of content from Web pages or blogs
• API (Application programming interface):
Interface that an application provides in order to respond to data or service request from other applications or web sites
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Traditional Web Interaction
Client makes http request
Web serverServer returns a new page
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How AJAX works
Web serverServer returns
the requested information
Client makes http request for specific information
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
RSS Israeli Trends
Inexpensive tool for users update
ITOs examine an external usage in RSS for:
Update information
Newsletters
Conference invitations, etc.
Disadvantage: unfriendly interface & security model
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Web Services APIsApplication Programming Interface
Interface that an application provides in order to respond to data or service request from other applications or web sites
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TVRadioNewspapersInternet
Web 2008 Trends
Consumers are spending more time on the Internet than on traditional media, but advertising spending is lagging behind the trend
37%*
9%*30%*
5%*
Hours of leisure time per week spent with various media
* Percentage of the
advertising market
Source: Aegis
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Web 2008 Israeli Trends
ITOs have not yet harnessed the potential of Web 2.0 to its advantage
ITOs begin to realize that Web 2.0 will differentiate them from competitors:• Interactive & zipper Web site (Ajax)• Access to spread-sheets & calendars via Web (SaaS)• Self-Service
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Enterprise Applications of Web 2008
Blogs • Marketing • Customer relationship management • Brainstorming new ideas, exchanging service tips
Wikis • Enterprise wikipedia -- information repository • Project documentation and management• Workflow management and monitoring • Facilitating innovation, new product development
Mashup • Data aggregation from different sources on the Web • Use of maps or other services available to create new, value-added info• Creation of new Web applications, easily and quickly by end users
Social networking • Finding sales leads • Hiring people from collective contacts • Identification of employees or users with common interests
AJAX • Responsive Web user interface • Rich Internet applications -- drag and drop • Desktop applications on the Web
Syndication feeds (RSS)
• "Home delivery" of new information of interest from blogs and Web pages • Syndication of information from different sources
ApplicationsWeb 2.0 Technology
Source: Cutter
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
Web 3.0
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Semantic Web - Machine-facilitated understanding of information on the Web in order to facilitate information aggregation
Copy schedule of conference to Outlook calendar
Copy list of people to Outlook contacts
The 3D Web - 3D online persistent world with a sense of presence and simultaneous experience in context
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Virtual Worlds
Examples (over 30 worlds): Second Life ActiveWorlds Entropia Universe There MultiVerse Vast Park Metaplace
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Second Life
40,000 concurrency (at any time)
450,000 active users (last 7 days)
1.4 m active users (last 2 months)
10.6 m total accounts
2 m assets created per day
35 TB of user-created data
800,000 unique items sold or traded
per month
500 events per day
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Source: Linden Lab
Million Square Meters of Second Life Land
Total User Hours
(millions)
Source: http://secondlife.com/whatis/economy-graphsphp
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
Currency: Linden$
LindeX exchange operated by
Linden Lab Buy: USD $.30 transaction fee Sell: 3.5% transaction fee 270 L$ =$1 USD
Monetary policy
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US$ Spent by Users (in Millions)
US $ Exchanged on Lindex (in Millions)
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Business
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IBM
Cisco
Best Buy’sGeek Squad
Dr. Dobbs Life 2.0 Conference
Preen
H&R Block
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Customer Service
Best Practice Ideas: Give customers control
Let customers manage their own services online
Direct data flood
Use Web data on customers as a competitive weapon
Listen for new ideas
Use blogs to find them in order to fix thing
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Customer Service
Pacesetters: Zipcar Linked the phone system to Web site & clients DB Payoff: 50% of calls & improved service
Continental Airlines Analyzed data on the fly to improve customer care Payoff: Top tier in CS
BT Group Linked Web portal to the support staff system to improve
consistency Payoff: x3 customer transaction, 10sM$, boosted CS 40%
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Management
Best Practice Ideas: Try new tools
Use dashboards & scorecards to take full advantage
Use the data
Push for new ways to use data
Mine for expertise
Pull profiles of workers online
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Management
Pacesetters: Kaiser Permanente Digitized medical records to manage patient care more
effectively Payoff: Important data trends
ASPCA Overhauled its Web site & database to accept & place people Payoff: List of 24,000 volunteers
IBM Created employee profiles DB Payoff: DB 36K employees, cut 500M$ and time
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Collaboration
Pacesetters: Procter & Gamble Used outside scientific network of 80K scientists Payoff: Boosted sales by 40%
IJIS Institute Set up a series of blogs to share info among its 16 committees Payoff: 400 people work on 37 projects; cut 50% of calls
Dresdner Kleinwort Wasserstein Used wikis & blogs to create, edit & revise projects in real time
Payoff: Cut 75% of e-mails, 50% of meetings time
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Streamlining
Pacesetters: NYC Comptroller’s Cybersettle Service Used Net to settle injury claims more efficiently
Payoff: 17M$; 1,137 claims online; time reduction: 9->4 month
Trinchero Family Estates Set up an online system to track the processing of grapes
Payoff: 3% of handling raw materials cost
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Marketing
Best Practice Ideas: Open the doors
Tap the creativity of the community online
Try the (new) networks
Social networks can reach targeted audiences
Connect then contact
Give people a must-have service, use it to build your brand
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© 2008 STKI moshav bnei zion 60910 tel 09 74 444 74 www.stki.info
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Marketing
Pacesetters: Audi Staged a car theft in NYC to launch its new A3 model
Payoff: 500K people online; 10K leads
Southwest Airlines Download service for short-term discounts alerts
Payoff: 1.3M downloads; 50M$ in sales Converse Enlisted the public as ad creators by soliciting online films
Payoff: 1.6K submissions; 80% increased site visits
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Thank You !this researchGalit FeinSenior Analyst & [email protected]