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Corporate Web 2.0 Corporate Web 2.0

‚Towards a model for definition‘

Alexander Stocker & Anwar Us Saaed

Jänner 2007

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Corporate Web 2.0

What is Corporate Web 2.0:

Highlight the Importance for Definition of the Term

Define the term according to ‘corporate’ which signals its belonging to the business domain

Develop some model, and apply the model to some examples

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Corporate Web 2.0

Web 2.0 is throughout the land…

OReilly ‘defined’ Web 2.0 with soft boundaries

Facets of Web 2.0 make the user the master of dynamic

users merge to ‘collective intelligence’

technologies tools are on the way (.. and are not always new)

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Corporate Web 2.0

Suveys (McKinsey, Booz Allen Hamilton, Arthur D. Little) show importance of a clearer concept for Corporate Web 2.0

Companies first feel interesting than after 'study‘ don’t feel too much confident with the implications of Web 2.0 to the business world, …but want to adopt Corporate Web 2.0 somehow to gain business advantages

Having a look on the talks published in the web we found.. no 'clear' concept behind the talks of business people on

the web, introduced concepts are too ambigous from our point of view

principles have been derived from big companies surviving bubbles. Can they be easily adopted to SME who are interested in Web 2.0 to gain some business advantage?

little academic effort has been conducted concerning the business domain of Web 2.0

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Corporate Web 2.0

Depending on the domain of the Community, Web 2.0 is understood in different ways. It can be a

a set of helpful Technologies that support in different ways (domain: computer science) including support of social interactions on the web

some tools/techs we know in this respect: Blogs, Wikis, Content Syndication, Rich Clients, Services and Mash-ups

a Social phenomenon resulting in the creation of micro and macro communities by using some technology all over the web (domain: sociology)

some concepts we know in this respect: collective intelligence, communities, user creating content, gift-economy, social networking, attention economy

a business value creator (domain: business administration) but what do we know in this respect?

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Corporate Web 2.0

Prerequisite: Adoption of Web 2.0 from the perspective of companies has to

encapsulate a strong business focus

grab social and technological aspects of 'new web'

address business concept with it

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Corporate Web 2.0

A more generic view of the Web…

technical simplification of tools for content creation, social interaction and community building due to rapid development of the web

circumstance that the web became more interesting attracting more users, thus moving itself away from the big content creators and technocrats towards a web for everybody

Chicken

Egg

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Corporate Web 2.0

To the business perspective this means… ('companies think about…')

more valuable data is automatically created by the users bottom-up resulting in somehow in a translation of this data into a business value

more users on the web = more consumers, since web is seen as global marketplace from the perspective of companies

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Corporate Web 2.0

We go for a definition…

Corporate Web 2.0 can be defined as the transformation of the social and technological aspects of the new internet into business, leading to a reshaping of business models and business processes

Technological aspects make up all the well known technologies and tools on the Web (blogs, wikis, content syndication tools, ajax, dhtml..)

Social aspects reflect in a new mindshift of the users, encouraging individuals to take part in the development of structures and content leading to creation of communities, making the knowledge of the users explicit an enabling a 'collective intelligence'

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Corporate Web 2.0

Corporate Web 2.0

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Corporate Web 2.0

Business of a company is defined by

the business model (the 'what a company does')

the business processes (the 'how a company does it')

business model: scientific term and 'piece of jargon'

vision

strategy

business model

business processes

Tra

nsfo

rmatio

n

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Corporate Web 2.0

business model definition(s) Timmers 1998: an architecture for the product, service

and information flows, including a description of the various business actors and their roles; and a description of the sources of revenues

Osterwalder 2004 (‘A Business Model Ontology’): A business model is a conceptual tool, that contains a set of elements and their relationships and allows expressing a companies logic of earning money. It is a description of the value a company offers to one or several segments of customers and the architecture of the firm and its network of partners for creating, marketing and delivering this value and relationship capital, in order to generate profitable and sustainable revenue streams.

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Corporate Web 2.0

business process definition(s)

ISO9000:2000: A process is a set of interrelated or interacting activities which transform input into output.

A Business process model focuses on operational and procedural aspects of business communication (Bergholtz et al 2002)

Business process is related to business activity (innovation, marketing, service, support)

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Corporate Web 2.0

To sum up Corporate Web 2.0…

Technological and Social phenomena have to

be embedded in the business model itself, reflecting in change of existing and development of new ones

result in a stronger interweavement of business processes of a company with the web

Ordinary Web 2.0 is a 'stand alone' neither embedded in BM oder BP and ends in itself

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Corporate Web 2.0

In which aspects should a company look into Corporate Web 2.0?

flow of curve is assumend according to

(1) Metcalfs law ('…worth of telecomm-network is users² of the system')

(2) Change 1+X BP: Curve will rise stronger

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Corporate Web 2.0Some Examples

A fictive example: SME going for Corporate Web 2.0 reshaping marketing process ‘enter new market’

Challenge

old economy company wants to promote product in a new market,

because of pre gained experience develops a realistic plan selling X new products in new market

Marketing Campaing based on Corporate Web 2.0

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Corporate Web 2.0Some Examples

fictive but common story of detectives and thieves

'stolen' product plans, plan to use it on their own

thieves leave tracks on the web, internet users have to trace them down

story evolves – more users come to webpage of the company …

… as a matter of entertainment – but users show interests in products

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Corporate Web 2.0Some Examples

this type of campaign was cheaper than campaign in traditional media with huge success

clearance is made after 1 year:

fictive company was able to sell planned X + Y (unplanned) products

higher ROI for its investments than planned through reshaping business process ‘enter new market’

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Corporate Web 2.0Some Examples

Salesforce: on demand Web-based CRM solution (Corporate Web 2.0, reshaping business model)

introduced AppExchange in 2005 as a community driven on demand applications marketplace

salesforce went for stronger interaction of their stake-holders to prosper from their knowledge (social aspects)

support them in communication and collaboration by introducing different tools (theme specific blogs, discussion boards, rating functionality, idea rooms,..) (technical aspects)

AppExchage has become a crucial part of Salesforce in the way they do business now enhancing it by the new opportunities of Corporate Web 2.0 (business aspects)

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Corporate Web 2.0Some Examples

Fender Musical Instruments Corporation -Fender.com is a manufacturer of guitars and related equipment (Corporate Web 2.0, reshaping business process)

New marketing campaing contained the sharing of material on the internet (youtube) with the objective to reach more customers (business aspects)

Youtube.com for video upload and myspace.com for blogging as 'tools' (technical aspects) for 'behind the scene' video footage

Harvesting attention of millions of unique visitors to their websites (video moving between first and fifth position on youtube.com) (social aspects)

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Corporate Web 2.0Some Examples

Tremor.com: Procter & Gamble (Corporate Web 2.0)

marketing service developing teen word of the mouth programs for companies

teens help in developing new product ideas and marketing programs by getting exclusive access to new things (music, technology, events, previews) before introduced in the market

Strong integration of the teen community on the platform (share opinions and feedback, rate ideas online, assess ideas online

Degree of the Influence and access to exclusive previews depends on the degree of participation of the teens

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Corporate Web 2.0 and Web 2.0Differences in Definition

We conclude

deeper look into phenomena Web 2.0, dealing with new technology and social interactions

pre defined model of Corporate Web 2.0 highlighted the importance of transferring social and technological aspects into business models and business processes…

…in order to act (get a business advantage) and nor react (lose a chance to gain business value)

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Corporate Web 2.0 and Web 2.0Differences in Definition

Web 2.0 Corporate Web 2.0

Companies CEO goes blogging (fastlane.gmblogs.com)

User discuss about content on a companies’ web-page (derstandard.at)

Product development

Knowledge is derived from a community hosted on a companies webpage for getting an overview on product related opinions of the users

Products are presented online enabling user to rate and comment them thus fostering discussion and leading to innovation

is embedded in companies’ business processes

is embedded in companies’ business models

Product presentation

companies are strongly interwoven with the web regarding to their business model (they are ‘married’ with the web)

(www.flickr.com)

(www.netvibes.com)

(www.technorati.com)

…

is a ‘stand alone’