Web 2008

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Galit FeinSenior Analyst & VP

Governance & Sourcing



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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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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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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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



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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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)



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



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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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



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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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



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



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



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)



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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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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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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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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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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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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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]

Date post:	12-Nov-2014
Category:	Technology
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