What Managers Need to Know About Web 2.0 (and a little 3)

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What Managers Need to Know About Web 2.0 (and a little 3)

What Managers Need to Know About Web 2.0 (and a little 3)

Lance Shields, Sylvia Victor, Go Isobe, Kim Jun hyung, Ian WakefordLance Shields, Sylvia Victor, Go Isobe, Kim Jun hyung, Ian Wakeford

Information Systems McGill MBA JapanInformation Systems McGill MBA Japan

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A survey: What did you all say about Web 2.0?

A survey: What did you all say about Web 2.0?

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Poll: “Which of these do you use regularly?”

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Poll: “Which do you think are going out of fashion?”

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Poll: What do you regularly use the web for?

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Poll: Do you think companies should participate on social sites like Facebook?

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Poll: Do you think companies should participate on social sites like Facebook?

“There seems to be a sensitivity to corporate involvement in aspects of the web that are seen as communicative exchanges/free expression. I think corporations have to be careful when they step into these areas of the web or face a backlash that could be quite damaging.”

“There seems to be a sensitivity to corporate involvement in aspects of the web that are seen as communicative exchanges/free expression. I think corporations have to be careful when they step into these areas of the web or face a backlash that could be quite damaging.”

“There is no point in them taking part unless they understand HOW to communicate in an online forum in a way that isn't repellent.”

“There is no point in them taking part unless they understand HOW to communicate in an online forum in a way that isn't repellent.”

Why did you say that?

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Poll: What’s the meaning of “Web 2.0”?

• “No idea.” • “Sharing.” • “It means people having conversations.”• “It is just a way to explain things on the web. Nothing new. “• “The effect of mass telecommunication on technology. “• “Web 2.0 indicates the web as a platform for interactive

networked applications”• “The web as a platform. Software as a service. Social media.

The customer adds value to the corporation.”• “A platform that allows users to interact with a web environment

in a personalized manner.”• “Internet based interactive technologies that facilitate the sharing

of information, learning, etc...“

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Poll: What’s the meaning of “Web 2.0”?

• User influenced content presentation. Interactivity through javascript.

• Being able to interact with other people, and enjoy interacting with creative people.

• “It means more interactive internet. Not a passive one way information flow but more content driven by users/visitors of web sites, not just providers of web sites.”

• “Web 2.0 is the social effects of technology- rather than tech per say. It’s increased momentum of the effects of bundled services- multiplied by the power of the users network.”

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How organizations utilize Web 2.0 to

create new business models

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We asked you…“Have you ever clicked on the following online ads?”

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Twitter.com – innovator of “microblogs”

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Evan Williams, Twitter’s CEO said…

• “If we spent time monetizing early on, it would have meant we weren’t doing other things that made the product better for users,” – (Registrations have grown 600

percent over the last year. )

http://www.nytimes.com/2008/10/21/technology/start-ups/21twitter.html

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Yammer.com: - “Twitter with a business model”

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David Sacks, Yammer’s CEO said…

• Mr. Sacks said finding a way to make money was a priority for Yammer and a lesson he learned as operations chief at the online payment company PayPal after the dot-com bubble burst and the company had to make money fast.

• TechCrunch,, called the company “Twitter with a business model.”

http://www.nytimes.com/2008/10/21/technology/start-ups/21twitter.html

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Business case for Twitter

• Customer Relations

• Crisis Communications

• Crowd Sourcing

• Build Brand & Communications

• Lead Generation

• Announce new services, coupons & information

• Professional Networking

What Twitter is currently

considering for 2009!

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How social media can be used within

a corporate environment

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Best Buy’s Blue Shirt Nation

• Over 20,000 registered employee users share and discuss their ideas and experiences

• A contest of creating 401(k) promotion videos increased the plan enrollment by 30% (Cook, 2008)

Source: Blue Shirt Nation

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Social Media within a Company

• Post messages• Share documents• Share calendars• Keyword search• Blog• Discuss ideas• In-house ‘Wikipedia’• Participate in surveys Source: Charran et al (2007)

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Pros and ConsSocial Media within a Company

Pros• More leverage employees’ knowledge and ideas• Quickly share information• Useful tools that can reduce employees’ workload (e.g.

keyword search engine, internal survey creator, shared documents/calendars)

Cons• Difficult to control internal communications• Higher risk of company secrets being disclosed• Employees might spend too much time for blogging

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Aligning your organization

to web 2.0

Aligning your organization

to web 2.0

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Internal & external activity with web 2.0

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Enterprise 2.0

• Companies are beginning to innovate, create value and engage with the world in profoundly new ways. Because the New Web radically drops collaboration costs the corporation may be going through the biggest change in its short history. Call it the Enterprise 2.0.

•Abstract: Don Tapscott - Wikinomics: Winning with the enterprise 2.0

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The New Enterprise 2.0

• Structure

• Scope

• Resource Focus

• State

• Personnel/focus

• Key drivers

• Direction

• Basis of action

• Individual motivation

• Learning

• Basis for compensation

• Relationships

• Employee attitude

• Dominant requirements

Hierarchical

Internal/closed

Capital

Static, stable

Managers

Reward and punishment

Management commands

Control

Satisfy superiors

Specific skills

Position in hierarchy

Competitive (my turf)

Detachment (it’s a job)

Sound Management

Closed Hierarchy

Networked

External/open

Human, information

Dynamic, changing

Professionals

Commitment

Self-management

Empowerment to act

Achieve team goals

Broader competencies

Accomplishment, competence level

Cooperative (our challenge)

Identification (its’ my company)

Leadership

Open Networked Enterprise

Source: Paradigm Shift: The New Promise of Information Technology, 1992

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Procter and Gamble Values

• We develop close, mutually productive relationships with our customers and our suppliers. (External)

• We develop the capability to deliver our strategies and eliminate organizational barriers. (Networked)

• We have a compelling desire to improve and to win in the marketplace.(Dynamic)

• We are all leaders in our area of responsibility, with a deep commitment to deliver leadership results.(Professional)

• We respect our P&G colleagues, customers and consumers, and treat them as we want to be treated. (Empowerment)

• We accept personal accountability to meet the business needs, improve our systems and help others improve their effectiveness.(Teamwork)

• We all act like owners, treating the Company’s assets as our own and behaving with the Company’s long-term success in mind.(Identification)

Source: P&G: Our Purpose, Values and Principles, 2003

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Connecting to Customers at P&G

–

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Innovation at P&G

Olay® Derma-PodThe fastest-growing Olay sub-

brand is the Derma-Pod, a small, one-use portion of Olay with a

unique applicator. This deal focused on packaging and design, and was done with

Cardinal Health.

Images from: www.pgconnectdevelop.com

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Applying a social computing strategy to a product lifecycle

Source: Web-Strategy by Jeremiah (http://www.web-strategist.com/blog/)

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Wal-Mart: Failed experiments in Web2.0

• Establish a social networking site: “The Hub”

• Create a Facebook group:”Roommate Style Match”

• A blog: “Wal-Marting Across America”

Images from: http://www.walmart.com/

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Wal-Mart Winners:

• Integration with suppliers (eg P&G)

• Checkout.blog

• RSS Feeds

• Elevenmoms

Images from: http://www.walmart.com/

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Web 2.0 Today and in the

Future

Web 2.0 Today and in the

Future

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Poll: How do you see the web changing in the future?

“Even the concept of site is going to be eradiated as we move more into maps, location based services for here, me, now. Every point of integration needs a higher creative and more meaningful experience. Entry points will indeed be my friends, where I am, and micro management of my identity.”

“Even the concept of site is going to be eradiated as we move more into maps, location based services for here, me, now. Every point of integration needs a higher creative and more meaningful experience. Entry points will indeed be my friends, where I am, and micro management of my identity.”

“For me the issue of accessibility to the web at any moment (from your mobile) is most important and will have great impact in our lifestyle, although this is a lateral process to the web itself...

“For me the issue of accessibility to the web at any moment (from your mobile) is most important and will have great impact in our lifestyle, although this is a lateral process to the web itself...

“An increasing number of items will bear codes, like bar codes, that may be scanned by ubiquitous portable devices such as smartphones, resulting in information or services becoming available to the user. An increasing number of everyday appliances, tools, vehicles, and systems will connect to the internet. Software will increasingly shift online.”

“An increasing number of items will bear codes, like bar codes, that may be scanned by ubiquitous portable devices such as smartphones, resulting in information or services becoming available to the user. An increasing number of everyday appliances, tools, vehicles, and systems will connect to the internet. Software will increasingly shift online.”

Traffic shaping, proprietary networks, draconic political measures to stem "piracy" and as a bonus a lot of free enterprise and ideological competition. As a result of this: Encryption, anonymization, digital terrorism.

Traffic shaping, proprietary networks, draconic political measures to stem "piracy" and as a bonus a lot of free enterprise and ideological competition. As a result of this: Encryption, anonymization, digital terrorism.

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Aggregation thru feeds: LinkedIn.com

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Integration of PC and mobile: Google Android

Google has created their own mobile phone operating system called Android that takes advantage of the various Google applications popular on the PC such as Google Maps, Google Calendar, Google video and many others.

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Integration of PC and mobile: Navitime

Mobile restaurant search

PC restaurant search

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WE ASKED YOU…“Do you think blogging is going out of fashion?”

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“Blogs are DEAD!” – Paul Boutin

“Bloggers today are expected to write clever, insightful, witty prose to compete with Huffington and The New York Times. Twitter’s character limit puts everyone back on equal footing. It lets amateurs quit agonizing over their writing and cut to the chase.”

http://www.wired.com/entertainment/theweb/magazine/16-11/st_essay

Wired Magazine writer Paul Boutin

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“Content is a commodity” – The Scobleizer

“We have too much great content. What does it mean for bloggers themselves? Getting noticed is tougher. Which is why I am seeing more growth lately in Twitter. People want to be heard and what’s the most likely way that you’ll get heard? Join Twitter, where thousands of people are hanging out all day long? Or write a blog where you aren’t sure anyone even sees it? I see the answer, even though Twitter is causing its own commodification to happen.” Web 2.0 guru the

Robert Scoble

http://scobleizer.com/2007/10/08/content-commodities/

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A managerial perspective on Web 2.0

A managerial perspective on Web 2.0

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Top 10 US Site

1. Google 　 2. Yahoo! 3. Myspace 4. YouTube 5. Facebook 6. WindowsLive 7. MSN 8. Wikipedia 9. EBay 10. AOL

Top 10 US Websites

By not taking part in the conversations of web 2.0: •their websites will be viewed as static brochureware •companies will quickly lose relevancy to customers •they will miss key insights about what their customers really want

Source: Alexa.com

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Creators

Critics

Collectors

Joiners

Spectators

Inactives

The ladderof participation

US

18%

25%

12%

25%

48%

44%

Base: US online consumersSource: NACTAS Q2 2007 North American Social Technographics online survey and NACTAS Q4 2006 Youth online survey

Europe

10%

19%

9%

13%

40%

53%

China

36%

44%

18%

32%

71%

25%

• www.forrester.com/groundswell

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Social Technographics: Japan

• www.forrester.com/groundswell

The argument is clearly been made that depending on the demographics of your customers (example: female, 25-34, American), that target user has different behavior in web 2.0.

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5 key things web 2.0 can do

Goal Contribution Example

Listening

Direct customer insight

New product ideas

Beta testing

•Insight Communities

•Scan and monitor existing communities.

Speaking

Create an emotional attachment.

Advertising based on network

•Marketing campaigns (interactive)

•Advertisements

EnergizingExcite your biggest fans.

Word of mouth

•Applications, widgets

•Media

Supporting Peer-to-peer support•Customer-created groups

EmbracingMembers become contributors

•Ideastorm, SalesForce

Source: Charlene Li and Josh Bernoff, Groundswell

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Scorecard: attributes for success

1. Does the campaign provide valuable content that supports the community members’ goals?

2. Are key elements of the campaign available where needed?3. Is the campaign self-fueling? 4. Does the marketing effort encourage member-to-

member participation?5. Does the marketing effort encourage member-to-Website

interaction?6. Does the company participate in the campaign on an

ongoing basis?7. Does the marketing effort allow the members to share the

elements to other locations?8. Is there an appropriate call to action?

Source: Web-Strategy by Jeremiah (http://www.web-strategist.com/blog/)

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Top three most frequently failed criteria

Source: July 2008, “Best And Worst Of Social Network Marketing, 2008”

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Top three most frequently passed criteria

Source: July 2008, “Best And Worst Of Social Network Marketing, 2008”

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FUTURE JOB:Social Media Strategist: Internal Leader

• The community strategist who organizes internal resources and supports the program

• This experienced business manager: – Maneuvers within the organization.– Leans on relationships with many business

teams.– Manages the business program.– Leads the internal charge.– Develops the objectives and obtain resources.– Creates policy, deals with internal stakeholders,

and provides ongoing reports to management.

Ed TerpeningVP, social media,

Wells Fargo

Source: Web-Strategy by Jeremiah (http://www.web-strategist.com/blog/)

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FUTURE JOB: Community Manager: Member Champion

• The community manager or moderator who interacts with members

• As a primary advocate of the community, the community manager:– Balances the needs of the community with

corporate objectives. – Is a customer advocate– Is a brand evangelist– May create editorial content– Harvests customer needs for market

intelligence

• Skills– Possess strong online communication skills,

be approachable and conversational, and have the ability to relate to the members, including in person

Lionel Menchca,

digital media manager,

Dell Computers

Source: Web-Strategy by Jeremiah (http://www.web-strategist.com/blog/)

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What’s coming next? WEB 3.0!

network computingsoftware-as-a-service business models, Web services interoperability, distributed computing and cloud computing;

ubiquitous connectivitybroadband adoption, mobile Internet access and mobile devices

open technologies open APIs and protocols, open data formats, open-source software platforms and open data (e.g. Creative Commons,

open identityOpenID, open reputation, roaming portable identity and personal data;

distributed databasesthe “World Wide Database” (enabled by Semantic Web technologies) Source: http://rosejn.net/plasma/plasma.html

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Blue Shirt Nation. Retrieved November 4, 2008 from http://www.blueshirtnation.comCharran, E., Dato-on, D., Lang, G. (2007). Microsoft Office SharePoint Server 2007 でソーシャル ネットワーク機能を管理する [Managing Social Network Function Using Microsoft Office SharePoint Server 2007]. Retrieved November 4, 2008 from https://g.www.ms.akadns.net/japan/technet/prodtechnol/office/sharepoint/2007/wp.mspx

Cook, S. (2008). The Contribution Revolution: Letting Volunteers Build Your Business. Harvard Business Review, 86, 60-69

Millen, D.R., Feinberg, J., Kerr, B. (2006). Dogear: Social bookmarking in the enterprise. Retrieved November 3, 2008 from http://portal.acm.org/citation.cfm?id=1124772.1124792

Ono, Y. (2007). Development of an auto tagging system with personal tastes on Social Bookmark Services. Retreived November 4, 2008 from http://www.nal.ie.u-ryukyu.ac.jp/wiki/index.php?yono%2F%C3%E6%B4%D6%C8%AF%C9%BD%B1%D1%B8%EC

O’Reilly, T. (2005). What Is Web 2.0: Design Patterns and Business Models for the Next Generation of Software. Retrieved November 3, 2008 from http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html

Charlene Li and Josh Bernoff, GroundswellHarvard Business Press, 2008Ted Matsumoto, The Strategy & Success Of Softbank Mobile And The Future Of Mobile Communications, Presentation that Lance Shields attended at ACCJ on 9/22/2008Paul Boutin, Twitter, Flickr, Facebook Make Blogs Look So 2004, 10/20/2008http://www.wired.com/entertainment/theweb/magazine/16-11/st_essayRobert Scoble, Content Commodities, 10/2007http://scobleizer.com/2007/10/08/content-commodities/ Forrester Research, Social Technographics Profile, 2008http://www.forrester.com/Groundswell/profile_tool.html

References

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Glossary

• Open ID: is a shared identity service, which allows Internet users to log on to many different web sites using a single digital identity, single sign-on, eliminating the need for a different user name and password for each site.

• Cloud computing: It is a style of computing in which IT-related capabilities are provided “as a service”, allowing users to access technology-enabled services from the Internet ("in the cloud") without knowledge of, expertise with, or control over the technology infrastructure that supports them. (source: wikipedia)

• Distributed computing: deals with hardware and software systems containing more than one processing element or storage element, concurrent processes, or multiple programs, running under a loosely or tightly controlled regime.In distributed computing a program is split up into parts that run simultaneously on multiple computers communicating over a network. (source: wikipedia)