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Web 2.0
‘The times they are a changing’

   Dr. Jim Hamill and Alan Stevenson
          Department of Marketing
          University of Strathclyde
         jim.hamill@ukonline.co.uk

               May, 2009
Topic 1

  Web 2.0

An Overview
What Is It?

 A new buzz word coined by management consultants to
  encourage us to part with our hard earned cash

  or

 A fundamental change in the way people use the Internet,
  their online expectations and experiences
What Is It?

 It’s a fundamental, revolutionary change……

 Major impact on consumer/B2B decision-making and
  behaviour across a broad spectrum of industries

 Major opportunities, but also threats, for your organisation

 Marketing as a ‘conversation with your customers, a
  conversation with your network’
What Is It?
 All revolutions have ‘winners’ and ‘losers’. ‘Winners’ will be
  those organisations who fully utilise the interactive power of
  Web 2.0 technology for engaging with and energising
  customer and network relationships

 Requires a new ‘mindset’ and new approaches to marketing
  communications strategy and implementation

 Requires new performance measures
   – Quality of your network
   – Relationship strength
   – Ability to leverage
Web 2.0

 A fundamental change in the way people use the Internet
  …….

 Rather than being passive recipients of ‘brand messages’,
  Web 2.0 is characterised by

   – Information ‘pull’ rather than ‘push’
   – User generated content
   – Openness, sharing, collaboration, interaction, communities, and
     social networking

 ‘Power to the people’ – Web 2.0 empowers people – empowers
  customers
Web 2.0
The end of the..........

   The read only Internet

   The ‘tell them how good’ we are Internet

   Traditional ‘push’ marketing strategies (declining effectiveness –
    nobody listens any more)

   The ‘Brand’ as we know it – People are becoming ‘cynical’ to
    brands and resistant to brand messages- -the ‘brand’ becomes the
    customer experience

   The end of the ‘About Us’ web site…..and the beginning of the
    ‘About You’ web site
Source: The Future of Advertising, APA, 17/02/09 as published on Slideshare (
www.slideshare.com)
Session 1 Web 2.0 Overview
Session 1 Web 2.0 Overview
In a Web 2.0 Era, the Brand Becomes the
    Customer Experience of the Brand

     A quick ‘personal experience’

             Dubai Hotel
Session 1 Web 2.0 Overview
Session 1 Web 2.0 Overview
Session 1 Web 2.0 Overview
Session 1 Web 2.0 Overview
Session 1 Web 2.0 Overview
From the web site
•   This 5-star hotel and residence offers European hospitality
    with an unmistakable French touch. The hotel consists of 318
    beautifully appointed guest rooms/suites, while the residence
    offers 112 fully furnished and equipped deluxe Studios and
    1-3 bedroom apartments.

•   The ultimate in comfort, we offer 318 luxuriously elegant
    rooms and suites.

•   Take a trip. Escape. Go and visit somewhere new and see if
    we are there… Give in to that irresistible wanderlust.
    Discovering and staying in the most exceptional hotels in the
    world has become the modern-day Graal, a game, a quest…
The Customer Experience
      of the Brand

      Tripadvisor
From Tripadvisor
•   It's getting old, the rooms are unappealing and it will never be
    more than a business hotel

•   Being a Sofitel hotel we expected something quite 'flashy'
    unfortunately we were let down. The rooms, although
    comfortable and clean, were not of the standard we expected
    and were definately not what we expected after looking at the
    photos on the hotel's website.

•   Booking my stay via the Sofitel website after a pleasant
    experience at several other Sofitel locations over the past 2
    years with my new job I was looking forward to a 5 star luxury
    stay after a stressful business trip. My expectations were
    reasonable, however certainly not met by this hotel.
Session 1 Web 2.0 Overview
Web 2.0
Applications
                               Blogs
    Social Network Sites
                                             Virtual Realities

RSS Feeds                    Social Content
                   Wikis
                                            Mash Ups
    Podcasts
                       Social Bookmarks

                                   Mobile Web; Internet Telephony
             Social Applications

             Twitter
Internal and External Use

These applications can be used on your
 own web site and/or by participating in
          ‘external 2.0’ sites
Characteristics
                             Openness
     Communities and Networks
                                            Hosted Services

Global                      Interactivity
                  Peering
                                            Mass Collaboration
     Sharing
                    Social Element

                                The Internet as the platform
            Empowerment
Impact
                              Customer Experience
     Business Intelligence
                                              Processes and HRM


Mindset                      Customer Interaction
                    Customer Insight
                                              Rich Internet Applications
    Product Development
                      Sales & Marketing

                                  IT Infrastructure
              Reputation Management
Business/Marketing 2.0
Impact – Wikibusiness                                                    Web 2.0 Applications

Mindset                                                                  Open source
Business Intelligence                                                    Online Applications/ Web Services
Customer Insight and Understanding                                       Social Network Sites
Customer Interaction                                                     Social Content – Social Bookmarking
Enhanced Customer Experience – Rich                                      Blogs or Weblogs
       Internet Applications                                             Wikis
Reputation Management                                                    Podcasts/ Vodcasts
Sales and Marketing                                                      Virtual Realities
Product Development and R&D e.g.                                         Mash Ups
       engage and co-create                                              RSS Feeds
IT/Software/Applications                                                 Mobile Web; Internet Telephony
Operations, Internal Processes and HRM
                                         Characteristics                 Twitter

                                         Communities and Networks
                                         Openness
                                         Sharing
                                         Peering
                                         Hosted Services – online
                                         applications; the Internet as
                                         the platform
                                         Interactivity
                                         Social Element
                                         Mass Collaboration
                                         Empowerment
                                         Global
Business Impact
   The need for new business/marketing models

    – Traditional approach:
        • Product development – Differentiate – Market and
          Promote - Sell

    – New model based on:
        • Communities, networks, openness, peering, sharing,
          collaboration, customer empowerment, ‘think and act’
          globally
A few references.........
Wikinomics
Tapscott and Williams (2006)

 Web 2.0 represents a major paradigm shift and requires
  new corporate mindsets and new approaches to business
  strategy development, implementation and online
  branding.

 O’Reilly (2006)........Web 2.0 as ‘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 characterised by user participation,
  openness, and network effect.’
The Groundswell
Li and Bernoff (2008)

 A spontaneous movement of people using online tools to
  connect, take charge of their own experiences and get what
  they need from each other (information, support, ideas,
  products, bargaining power etc)

 The ‘groundswell’ is unstoppable – it’s a social revolution

 It’s a permanent, revolutionary shift in the way the world
  works

 You can try to fight it or join it – energise the groundswell
Marketing to the Social Web
Larry Weber (2009)

 Marketers must look for new ways to communicate with
  customers. New mindsets and a radical rethinking of past
  practice is required

 Rather than broadcasting sales messages to an audience
  who no longer listen, innovative marketers should become
  ‘aggregators of customer communities’. They should
  participate in, organise and encourage social networks that
  people what to belong to

 Rather than talking at customers they should talk with
  them
Grown Digital – Don Tapscott (2009)

 $4m research project covering 10,000 people in the age
  group 11 to 30

 The Net Generation – the first generation to have grown
  digital

 Revolutionary impact on all aspects of life including the
  world of work, education, family relationships, political
  engagement and the global environment

 YouTube Videos
Bob Dylan
  Come gather 'round people
       Wherever you roam
       And don’t criticise
   What you can't understand
 Your sons and your daughters
   Are beyond your command
         Your old road is
          Rapidly agin‘
 Then you better start swimmin’
    Or you'll sink like a stone
For the times they are a-changin’
Strategic Audit


  The Ten
Key Questions
Ten Key Questions
1. What impact is Web 2.0 having on my industry?

3. What are the opportunities and threats for my
   organisation? How well are we currently positioned to
   capitalise on these opportunities, minimise the threats?
   What progress have we made? What is the ‘strategic gap’
   between where we are and where we should be? What
   internal organisational barriers and obstacles need to be
   overcome for us to make progress in this area?

5. What impact is Web 2.0 having on consumer behaviour
   and decision-making in our industry?
Ten Key Questions
1. Do we need a new business ‘mindset’ and organisational
   structure to succeed in a Web 2.0 environment?

3. How can we best utilise Web 2.0 for effective reputation
   management?

5. How can we best use Web 2.0 for market/customer
   research; for building deep customer insight, knowledge
   and understanding?

7. How can we best use Web 2.0 applications for building on-
   going customer dialogue and interaction; for enhancing
   the online customer experience; for engaging with and
   energising our network?
Ten Key Questions
1. What are the key Web 2.0 actions and initiatives we need
   to introduce?

3. What new business performance metrics do we need to
   use in a Web 2.0 era?

5. How can we best use Web 2.0 for improving internal
   operational efficiency and business processes?
Questions

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Session 1 Web 2.0 Overview

  • 1. Web 2.0 ‘The times they are a changing’ Dr. Jim Hamill and Alan Stevenson Department of Marketing University of Strathclyde jim.hamill@ukonline.co.uk May, 2009
  • 2. Topic 1 Web 2.0 An Overview
  • 3. What Is It?  A new buzz word coined by management consultants to encourage us to part with our hard earned cash or  A fundamental change in the way people use the Internet, their online expectations and experiences
  • 4. What Is It?  It’s a fundamental, revolutionary change……  Major impact on consumer/B2B decision-making and behaviour across a broad spectrum of industries  Major opportunities, but also threats, for your organisation  Marketing as a ‘conversation with your customers, a conversation with your network’
  • 5. What Is It?  All revolutions have ‘winners’ and ‘losers’. ‘Winners’ will be those organisations who fully utilise the interactive power of Web 2.0 technology for engaging with and energising customer and network relationships  Requires a new ‘mindset’ and new approaches to marketing communications strategy and implementation  Requires new performance measures – Quality of your network – Relationship strength – Ability to leverage
  • 6. Web 2.0  A fundamental change in the way people use the Internet …….  Rather than being passive recipients of ‘brand messages’, Web 2.0 is characterised by – Information ‘pull’ rather than ‘push’ – User generated content – Openness, sharing, collaboration, interaction, communities, and social networking  ‘Power to the people’ – Web 2.0 empowers people – empowers customers
  • 7. Web 2.0 The end of the..........  The read only Internet  The ‘tell them how good’ we are Internet  Traditional ‘push’ marketing strategies (declining effectiveness – nobody listens any more)  The ‘Brand’ as we know it – People are becoming ‘cynical’ to brands and resistant to brand messages- -the ‘brand’ becomes the customer experience  The end of the ‘About Us’ web site…..and the beginning of the ‘About You’ web site
  • 8. Source: The Future of Advertising, APA, 17/02/09 as published on Slideshare ( www.slideshare.com)
  • 11. In a Web 2.0 Era, the Brand Becomes the Customer Experience of the Brand A quick ‘personal experience’ Dubai Hotel
  • 17. From the web site • This 5-star hotel and residence offers European hospitality with an unmistakable French touch. The hotel consists of 318 beautifully appointed guest rooms/suites, while the residence offers 112 fully furnished and equipped deluxe Studios and 1-3 bedroom apartments. • The ultimate in comfort, we offer 318 luxuriously elegant rooms and suites. • Take a trip. Escape. Go and visit somewhere new and see if we are there… Give in to that irresistible wanderlust. Discovering and staying in the most exceptional hotels in the world has become the modern-day Graal, a game, a quest…
  • 18. The Customer Experience of the Brand Tripadvisor
  • 19. From Tripadvisor • It's getting old, the rooms are unappealing and it will never be more than a business hotel • Being a Sofitel hotel we expected something quite 'flashy' unfortunately we were let down. The rooms, although comfortable and clean, were not of the standard we expected and were definately not what we expected after looking at the photos on the hotel's website. • Booking my stay via the Sofitel website after a pleasant experience at several other Sofitel locations over the past 2 years with my new job I was looking forward to a 5 star luxury stay after a stressful business trip. My expectations were reasonable, however certainly not met by this hotel.
  • 22. Applications Blogs Social Network Sites Virtual Realities RSS Feeds Social Content Wikis Mash Ups Podcasts Social Bookmarks Mobile Web; Internet Telephony Social Applications Twitter
  • 23. Internal and External Use These applications can be used on your own web site and/or by participating in ‘external 2.0’ sites
  • 24. Characteristics Openness Communities and Networks Hosted Services Global Interactivity Peering Mass Collaboration Sharing Social Element The Internet as the platform Empowerment
  • 25. Impact Customer Experience Business Intelligence Processes and HRM Mindset Customer Interaction Customer Insight Rich Internet Applications Product Development Sales & Marketing IT Infrastructure Reputation Management
  • 26. Business/Marketing 2.0 Impact – Wikibusiness Web 2.0 Applications Mindset Open source Business Intelligence Online Applications/ Web Services Customer Insight and Understanding Social Network Sites Customer Interaction Social Content – Social Bookmarking Enhanced Customer Experience – Rich Blogs or Weblogs Internet Applications Wikis Reputation Management Podcasts/ Vodcasts Sales and Marketing Virtual Realities Product Development and R&D e.g. Mash Ups engage and co-create RSS Feeds IT/Software/Applications Mobile Web; Internet Telephony Operations, Internal Processes and HRM Characteristics Twitter Communities and Networks Openness Sharing Peering Hosted Services – online applications; the Internet as the platform Interactivity Social Element Mass Collaboration Empowerment Global
  • 27. Business Impact  The need for new business/marketing models – Traditional approach: • Product development – Differentiate – Market and Promote - Sell – New model based on: • Communities, networks, openness, peering, sharing, collaboration, customer empowerment, ‘think and act’ globally
  • 29. Wikinomics Tapscott and Williams (2006)  Web 2.0 represents a major paradigm shift and requires new corporate mindsets and new approaches to business strategy development, implementation and online branding.  O’Reilly (2006)........Web 2.0 as ‘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 characterised by user participation, openness, and network effect.’
  • 30. The Groundswell Li and Bernoff (2008)  A spontaneous movement of people using online tools to connect, take charge of their own experiences and get what they need from each other (information, support, ideas, products, bargaining power etc)  The ‘groundswell’ is unstoppable – it’s a social revolution  It’s a permanent, revolutionary shift in the way the world works  You can try to fight it or join it – energise the groundswell
  • 31. Marketing to the Social Web Larry Weber (2009)  Marketers must look for new ways to communicate with customers. New mindsets and a radical rethinking of past practice is required  Rather than broadcasting sales messages to an audience who no longer listen, innovative marketers should become ‘aggregators of customer communities’. They should participate in, organise and encourage social networks that people what to belong to  Rather than talking at customers they should talk with them
  • 32. Grown Digital – Don Tapscott (2009)  $4m research project covering 10,000 people in the age group 11 to 30  The Net Generation – the first generation to have grown digital  Revolutionary impact on all aspects of life including the world of work, education, family relationships, political engagement and the global environment  YouTube Videos
  • 33. Bob Dylan Come gather 'round people Wherever you roam And don’t criticise What you can't understand Your sons and your daughters Are beyond your command Your old road is Rapidly agin‘ Then you better start swimmin’ Or you'll sink like a stone For the times they are a-changin’
  • 34. Strategic Audit The Ten Key Questions
  • 35. Ten Key Questions 1. What impact is Web 2.0 having on my industry? 3. What are the opportunities and threats for my organisation? How well are we currently positioned to capitalise on these opportunities, minimise the threats? What progress have we made? What is the ‘strategic gap’ between where we are and where we should be? What internal organisational barriers and obstacles need to be overcome for us to make progress in this area? 5. What impact is Web 2.0 having on consumer behaviour and decision-making in our industry?
  • 36. Ten Key Questions 1. Do we need a new business ‘mindset’ and organisational structure to succeed in a Web 2.0 environment? 3. How can we best utilise Web 2.0 for effective reputation management? 5. How can we best use Web 2.0 for market/customer research; for building deep customer insight, knowledge and understanding? 7. How can we best use Web 2.0 applications for building on- going customer dialogue and interaction; for enhancing the online customer experience; for engaging with and energising our network?
  • 37. Ten Key Questions 1. What are the key Web 2.0 actions and initiatives we need to introduce? 3. What new business performance metrics do we need to use in a Web 2.0 era? 5. How can we best use Web 2.0 for improving internal operational efficiency and business processes?