Enterprise Web 2.0 and CI: How the Social Computing (R)evolution is Changing the Landscape

Enterprise Web 2.0 and CI :
How the Social Computing (R)evolution
is changing the landscape
technology • business • people
Victor Spigelman – SOA Centre of Excellence

Photo by Flickr user 416style,
licensed under Creative Commons / Attribution 2.0

Untangling Web 2.0 and SOA

Picture: Luc Viatour, Wikimedia Commons, licensed under Creative Commons share-alike

October 12, 2007 Enterprise Web 2.0 and SOA:
How the Social Computing (R)evolution is changing the business landscape

Newsstand 2.0


Why should you even care about Web 2.0?
1) Everybody is talking about it. Love it or hate it, you need to know it.

Sources: Gartner's 2006 Emerging Technologies Hype Cycle Highlights Key Technology Themes, August 2006
http://www.geospatialsemanticweb.com/2006/08/10/gartners-hype-cycle-for-emerging-technologies-2006

2. Gartner has recently short listed Web 2.0 as a key technology theme for
enterprises to examine closely in the near future
3. Still according to Gartner, Inc:
– As the number of participants and types of collaborative models continues to grow,
power will increasingly shift to the consumer, forcing businesses to proactively
market to and analyze community influencers.
– By enabling decentralized innovation, Web 2.0 catalyzes rapid consumer-driven change,
which will accelerate market share growth for companies that exploit it, i.e., Web 2.0
offers many opportunities for growth
– Web 2.0 architecture provides an adaptable technology model that requires significantly less-
expensive infrastructure to deliver its benefits. See Amazon’s Elastic Compute Cloud and
Simple Storage Service to see how low cost this can become:
• $0.20 per GB of data transferred
• $0.15 per GB per month for storage.

– By 2008, the majority of Global 1000 companies will have adopted several technology-
related aspects of Web 2.0
4. It’s already impacting businesses, even the ones that have not yet embraced it:
Demo



• The future of business is selling less
of more. Infinite choice and lower
costs to connect supply and demand
is changing the nature of the market
and will transform entire industries.
Growth is in the Long Tail.
Chris Anderson, “The Long Tail”

• On disruptive technologies:
“We cannot expect our customers to
lead us toward innovations that they
do not know they need.”
Clayton M. Christensen, “The Innovator’s Dilemma”

• “When the world is flat, whatever
can be done will be done. There's
only one question left:
will it be done BY you, or TO you?”
Thomas L. Friedman, “The World Is Flat”


Web-two-oh-ese: phrase book

folksonomy DataAsTheNextIntelInside

AJAX RIA
blogs WisdomOfCrowds
RSS LongTail WebAsAPlatform
UserCreatedContent
podcasting
ViralMarketing innovation
Web2.0 wikis
Mashups SaaS REST
TheWorldIsFlat
SocialNetworks P2P Enterprise2.0
PerpetualBeta
Mobile2.0


Web 1.0: The mostly read-only Web

Published Content

User-Generated Content

250,000 web sites 45 million global users
Content Providers Content Consumers


Web 2.0: The wildly read-write Web

Published Content
Collective Intelligence
User-Generated Content

80,000,000 web sites 1 billion global users
Content Providers Content Consumers
Facilitators Collaborators

What Is Web 2.0
It’s the second generation of Internet-based services that
let people collaborate and share information online in
previously unavailable ways.
Wikipedia

“A true Web 2.0 application is one that
gets better the more people use it.”
Tim O’Reilly

“Web 2.0 is an attitude, not a technology”
Ian Davis, Internet Alchemy

Source: Dion Hinchcliffe’s Web 2.0 Blog

1. The Web As A Platform
• A platform beats an application every time
• MS-Windows tilted the balance
against Lotus 1-2-3, Wordperfect
and Netscape by controlling the OS platform

• Now the battle is between platforms: which architecture and business model
is better suited to the opportunity ahead: OS or Web?
– Desktop vs. Webtop (EyeOS, Goowy) and IOS (XIOS)
– MS-Outlook vs. Zimbra, Gmail
– MS-Word vs. Google Docs
– MS-Excel vs. Google Spreadsheets
– Encyclopedia Britannica, Encarta vs. Wikipedia
– National Geographic Maps vs. Google Maps
– Quicken, MS-Money vs. Wesabe
• Phone call analogy
Partially based on: What Is Web 2.0, Tim O’Reilly, http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html


2. Harnessing Collective Intelligence
• A true Web 2.0 application is one
that gets better the more people use it (Tim O’Reilly)
• James Surowiecki’s “The Wisdom of Crowds“
• User Created Content:
Google’s page rank, Amazon’s user reviews,
“most popular” and linked sales, Digg’s thumbs up/down
• Tagging & Folksonomy:
Flickr, Del.icio.us
• Wetware - People as the computing power:
Amazon Mechanical Turk, reCAPTCHA
• Aggregate user data as a side effect
of their use of the application
• Wikipedia (Radical trust) and Pandora (the Long Tail)
• PredictWallStreet.com


3. Data Is The Next “Intel Inside”

• Applications are increasingly data-driven.
For competitive advantage,
seek to own a unique,
hard-to-recreate
source of data.
• The race is on to own
certain classes of core data

• Google Maps, Trip Advisor, Image: RingBits.com
Amazon’s ASIN vs ISBN,
Wikipedia vs. Britannica & Encarta

• “Some rights reserved”: Creative Commons

• Zopa’s explorer


4. End of the Software Release Cycle
• Shift from “Software as an Artifact”
to “Software as a Service” (SaaS)
– Operations must become a core competency
– Software will cease to perform unless
it’s maintained on a daily basis

• The Perpetual Beta:
New features added on a regular basis
not monolithic releases,
forever
smoothly incorporated to the normal user experience.
• Real-time monitoring of user behaviour also a core competency
– Users as “co-developers”
– Engage your users as real-time testers, and instrument the service so that you
know how people use the new features.
• DimeWise


5. Lightweight Programming Models
• Cooperate, don't control.
Web 2.0 applications are built of
a network of cooperating data services
• Offer web services interfaces and
content syndication, and re-use the
data services of others

• Design for hackability and remixability:
allow for loosely coupled systems
• Amazon: SOAP vs. REST (Representational State Transfer)

• Google Maps API, “Innovation in Assembly”: Mashups
• HousingMaps, ProgrammableWeb, Ning
• Zillow, GeeZeo (Account Aggregation + Text Messaging)



Mashups


6. Software Above the Level of a Single Device

• The PC is no longer the only access device for internet
applications, and applications that are limited to a single
device are less valuable than those that are connected.
• Mobile handsets are the most ubiquitous mobile
networking devices in the planet, miles ahead of laptops,
PDAs and MP3 players (> 2 billion units).
• Design your application from the get-go to integrate
services across handheld devices, PCs, and internet
servers.
• Grid computing, Napster, BitTorrent, iTunes, Skype,
TiVo
• Not-so-distant future: cars and phones not only
consuming data but reporting it
• You say gadget, I say widget



7. Rich User Experiences
• “The NET is a waste of time,
and that's exactly what's right about it.”
(William Gibson again)
• “Rich Internet Applications” (RIA)
• Flash, Flex, AJAX, Laszlo
• Typically uses XML to transfer data asynchronously
• Provide a more desktop-like experience
over the web
• Classic vs. AJAX Web Application Model:
Google Maps vs. Yahoo! Maps
• GMail, DotPhoto
• Banking/financial examples:
Product Selection, Web Banking, Mortgage Selection, Mortgage Calculator,
Insurance Calculator
JUMP


The Social Dimension of Web 2.0


6.6 billion and counting

• There are more
people alive
today... than all the
humans who have
ever lived since the
dawn of civilization.
• 99% of all the
scientists who have
ever lived... are
alive today.

Sources: Sustainable Scale Project
The Gary Hilbert Letter


Web 2.0 and the Net Generation

• Definition: Generation under 28 years of age,
who grew up with computers, and the Internet.
• Larger than the Baby Boom generation: 30% of population
• NetGens’ habits are having profound implications for the
marketplace of products, services, ideas, political policies
and jobs.
• NetGens value the freedom to share, customize and mix
content: music, video, audio, news. They are also
collaborators, enjoying interactivity and relationships with
people and products.
• By 2010, 40% of the workforce will be NetGens.

Source: “Net Generation ‘wired’ differently”,National Post, November 24, 2006

The Three Rs of Marketing 2.0

• Real No more of the old marketing hype.
Tell the truth. Admit your mistakes.
Otherwise: Customers will ignore you

• Relevant You can’t interrupt people anymore.
You must have what they want.
Otherwise: Google will ignore you

• Responsive Marketing is no longer a monologue.
You must answer your customers.
Otherwise: Customers will bad-mouth you

Main source: Marketing 2.0 - How Web 2.0 is Changing Marketing Forever, by Mike Moran, IBM


What Is Social Computing?
• Social computing refers to the use of social software, a growing
trend in IT usage of tools that support social interaction and
communication.
• Social software enables people to rendezvous, connect or
collaborate through computer-mediated communication
and to form online communities.

Source: http://www.micropersuasion.com/2006/03/institutional_p.html


Blogs

What:
• Short for “web log”:
personal journal on the web
• Demographics
• Blogs are to ideas what eBay
is to consumer goods
– Eliminate the middle man
– Reduce market inefficiencies
Why:
• Blogs are growing
exponentially
• We, the media
• I blog, therefore I am
• Understand your customer
(internal and external)
• Reinvigorate your workforce
• Get a competitive advantage or at least not a disadvantage
Demo?


Blogs: extending your network

Frequent e-mails
Infrequent e-mails
Blogs

You
Jim Susan Chris
Mary
Roberto
Friends

Jim’s Your
manager
manager
Helen
Co-Workers John
Other BMO Employees in Canada Akira

Other BMO Employees around the world
Peter

Other people around the world


Wikis 2
Number of full-time
What: employees at Wikipedia
• From quot;wiki-wiki,quot; Hawaiian for quot;quickquot; 36,000
• “What I Know Is…” Number of registered
• Collaborative authoring environments Wikipedia contributors
Why:
• “Easy” to create, edit, share pages of information
• Leverages the wisdom of crowds
• Promotes a sense of community
• Large companies typically behave as small individual companies
• Ideal for teams that are large, compartmentalized, or geographically
dispersed
• Low cost/low effort solution
• Due to blogs and cross-linking, has a huge impact on search engines
• Wikis gone wrong: Wikipedia’s evil twin  Uncyclopedia
Demo?


Podcasts

What:
• From iPod + broadcasting
• A web feed of audio or video quot;episodesquot;
placed on the Internet for anyone to subscribe to
• It's like a portable TiVo for both audio and video
• You don’t need an iPod
Why:
• There's never enough time or budget for traditional training
• Skills shortage can hurt any business dependent on knowledge workers
• Keep workforce up-to-date with latest news/trends/technologies
• Most companies cannot afford to not use it: major competitive
disadvantage
• Reach out the long tail (SOA, Java)
Demo?


RSS

What:
• Really Simple Syndication
• A means of distributing content
• Automatically updates readership
once something new comes up
• Not only for blogs:
any content can be syndicated
Why:
• Saves the trouble of visiting each blog or website one at a time
• Subscription model allows for more efficient content consumption
Demo?


Has Web 2.0
grown up?

Quiz: Web 2.0 app or
Star Wars character?

Licensed under Creative Commons
Attribution Non-Commercial-ShareAlike 2.0 Germany
Ludwig Getzke


What Is Enterprise 2.0

The Enterprise 2.0 term derives from Web 2.0
and covers the introduction and implementation
of social software within the enterprise, and
the social and organizational changes related to
its use.
Wikipedia

Source: Dion Hinchcliffe’s Blog

What Is Enterprise 2.0
• Enterprise 2.0 is more than just Web 2.0 for business.

• Enterprise computing is far more complex than
personal computing. It includes legacy environments,
Web 2.0
innumerable vendors, mismatched data sources,
stringent regulations and far flung users.

• While Web 2.0 can deliver genuine advantages for both
Enterprise 2.0
business users and consumers, the real quot;Enterprise
2.0quot; will encompass a far broader and more complex
vision.

M.R. Rangaswami, Sand Hill Group


The 3 aspects of Web 2.0 Collaboration

Internal Collaboration B2B Collaboration C2C2B Collaboration
Internal Blogging Mashups User Created Content
Internal Wikis Complementary Web Services User Communities
Enterprise Social Bookmarking Open Standards Viral Marketing
Social Tagging
Enterprise Social Networking
Source: Gartner Says Web 2.0 Offers Many Opportunities for Growth, But Few Enterprises Will
Immediately Adopt All Aspects Necessary for Significant Business Impact, May 2006


Services Oriented Architecture and Web 2.0
• Both SOA and Web 2.0 represent a break with technology
and application centric practices to focus on
how technology is used. Both enable
a user centric approach to IT.
• SOA breaks business processes
into smaller pieces (components)
and then aggregate these individual pieces
in services aligned with business activities.
SOA delivers a level of
efficiency, agility and flexibility
not possible with an application centric approach.
But providing flexible services is a moot point
if you don’t know your users’ wants and needs.
• Web 2.0, on the other hand, puts the user front and centre, smoothing the flow of
information between people. It facilitates the collaborative creation, combination and
distribution of content, delivering a rich user experience. By enabling a two-way
communication, it shifts the power towards the consumer, who can now voice her/his
opinions and choose from a market of almost infinite choice (C2B and C2*).

Sources: Where’s Web 2.0, Clinton McCallum, Mike Natoli, Robert W. Ross – IBM Centers for Solution Innovation
http://www.capgemini.com/ctoblog/2006/10/soa_web_20_cage_match.php, CTO Blog, CapGemini


There’s more to Web 2.0 than purely technology
• Technology: Architecture focuses on the Web's
technology architecture and development model
which is a subset of service-oriented architecture (SOA)
that provides a globally linked, decentralized model
that is network-centric and extensible.
• Business: It is distinguished by empowering
third parties and consumers to repurpose content
and services in new and unique ways. It relies on
an open and extensible business ecosystem, embracing greater reliance on and
collaboration with externalities. Web business models will enable nimble new
competitors to succeed and challenge established enterprises to adapt to
survive.
• People: Web community is a participatory approach in which users are not
simply service and content consumers, but also act as content and application
creators becoming networked collective intelligence. As the number of
participants and types of collaborative models continues to grow, power will
increasingly shift to the consumer, forcing businesses to proactively market to
and analyze community influencers. Source: Gartner, Inc.

A successful adoption of Web 2.0 principles impacts the full value chain
Infrastructure

& Production

Procurement
Technology
Information

Sourcing &
Operations
Resources

Marketing

Customer
& Sales

Service
Human

More modular More Increased Increase More New channels Increase in
infrastructure collaboration demand on responsiveness collaboration, and target participation
and bottom-up resources, to changes in new partners demographics and volumes
participation more diverse the ecosystem
toolset, flexible
architecture


To Innovate or Not To Innovate


The risk of not innovating
• Retail banks can’t assume that the growth and returns
of the recent past will continue. Amid a throng of
banking competitors – including new market entrants,
forward-thinking incumbents and non-banks – banks
need to differentiate themselves in ways that are not
easily duplicated.
• Banking by and large lags far behind most other
consumer retail industries in developing leading-edge
products and services.
• “The only way for banks to grow in the domestic market
will be to strengthen relationships with their current
customers, and to do that banks will have to innovate
their offerings” (Michael McKeon, Booz Allen)

Sources:
Innovating Customer Service: Retail Banking’s New Frontier
http://www.strategy-business.com/press/sbkw2/sbkwarticle/sbkw061222?pg=all&tid=230
Dare to be different: Why banking innovation matters now - IBM Institute for Business Value study
http://www-935.ibm.com/services/us/index.wss/ibvstudy/bcs/a1025350?cntxt=a1000043


Easier said than done

• Innovation is not easy in banking: regulations acting as “speed bumps” can
slow down product and marketing innovation.
• Before introducing new products and sometimes even new marketing
programs, banks have to consider such factors as privacy laws, debt security
guidelines, and fair lending practices.
• Departments within banking organizations are usually highly segregated from
one another; the people who know what kind of technical innovations are
needed are often completely isolated from those in a position to deliver the
innovations. Cross-departmental teamwork is generally not encouraged.
• Two other forces — risk aversion and inertia — can tamp down the urge to
innovate. Banks must be exceptionally careful not to overcomplicate their
offerings because product confusion can undermine the confidence the
consumer must have in the bank to trust it with their money.

Source: Innovating Customer Service: Retail Banking’s New Frontier
http://www.strategy-business.com/press/sbkw2/sbkwarticle/sbkw061222?pg=all&tid=230


Competitors, Competitors Everywhere


The future is already here
it’s just not evenly distributed
William Gibson


Speech-to-text recognition for indexing

• Everyzing is an audio and video
search engine that leverages
speech recognition technology
to look for content inside
audio and video files formats.

• It creates a text index from the audio and video feed and
uses that index to find relevant terms within published audio
and video files.


Visualization

• “Many Eyes is a bet on the
power of human visual
intelligence to find patterns. Our
goal is to quot;democratizequot;
visualization and to enable a
new social kind of data
analysis”.

• Gapminder is a non-profit
venture for development and
provision of free software that
visualise human development.


Wetware

• reCAPTCHA improves the
process of digitizing books by
sending words that cannot be
read by computers to the Web
in the form of CAPTCHAs for
humans to decipher.

• The Amazon Mechanical Turk
service is like a “human API”:
Humans are much more
effective than computers at
solving some types of
problems, like finding specific
objects in pictures, evaluating
beauty, or translating text.


IBM 2.0


IBM embraces open standards and Web 2.0, offering end-to-end solutions

• Products: IBM is incorporating collaboration and Web 2.0 features via open
standards throughout its existing line of products and several new products are also
about to be released
• Services: IBM’s portfolio of services range from business consulting to technology
integration to application innovation and application management. We can cover
the 3 aspects of Web 2.0: technology, business and people.
• Alliances: The OpenAjax Alliance is an organization of leading vendors, open
source projects, and companies using Ajax that are dedicated to the successful
adoption of open and interoperable Ajax-based Web technologies. Participant
organizations: IBM, Adobe, BEA, Borland, Google, Intel, Novell, Oracle, Red Hat, SAP,
Software AG, Sun Microsystems, Zimbra and others.

Sources: http://www.openajax.org/
http://www-03.ibm.com/press/us/en/pressrelease/19821.wss


IBM is committed to Web 2.0 in products, services and thought leadership


Enterprise 2.0 Bloopers


Wikitorial

• Term coined by the Los Angeles Times to describe a
traditional editorial that can be edited in the fashion of a wiki
• On June 17, 2005 the Los Angeles Times wrote the first
Wikitorial, entitled: War and Consequences. The new
Wikitorial was about the War in Iraq. Below that editorial they
wrote an invitation to their readers to rewrite the editorial in the
wiki fashion.
• The L.A. Times Wikitorial was closed on June 19, 2005. It is
supposed that this is due to a vandal inserting multiple
pictures of goatse on the wiki main page. Around 4:30 AM
local time the vandal was changing the site to pornographic
photos and just as quickly, within seconds, a guardian was
reverting it back to the earlier editorial. Shortly after 5:00 AM
the connection was broken and the Wikitorial has not been
available since then.

Source: Wikipedia


Chevy Tahoe: chevyapprentice.com

• The 2007 Tahoe was featured on and
promoted through Donald Trump's The Apprentice,
where the two teams put together a show
for the top General Motors employees
to learn about the new Tahoe.
• Also, The Apprentice sponsored an online contest
in which anyone could create a commercial
for the new Tahoe by entering text captions
into the provided video clips;
the winner's ad would air on national television.
• Many users took advantage of the contest to point out the SUV's higher fuel usage
relative to other types of vehicles. Chevy originally said it would keep the negative ads
online, but eventually took them down.
• Videos still available in YouTube!

Source: Wikipedia


The Road Ahead


The long and winding road
• Few enterprises realize how to implement
the full range of capabilities to succeed
• Regulatory constraints (Basel II, Sarbanes-Oxley, AML)
are perceived as opposite to the spirit of Web 2.0

• Transparency and “The see-through CEO”
• Many of the benefits are intangible: which metrics
should be used to support a Web 2.0 business case?

• Critical mass is a KSF, but most potential customers
tend to be lurkers; all Web 2.0 apps compete for attention span:
Even if you build, but they may not come
• Some traditional companies had terrible experiences in their forays into Web 2.0 territory

• Enterprise Web 2.0 goes beyond Web 2.0: Identity 2.0, Security 2.0, Standards 2.0, Governance

• Companies will be slow to adopt the aspects of Web 2.0 that have a social dimension

• Missing out on the non-technology aspects of Web 2.0 means that many organizations will also
miss out on some of the positive business benefits
• Value creation vs. value capture:
What’s the Enterprise 2.0 business model?

Source: Gartner Says Web 2.0 Offers Many Opportunities for Growth, But Few Enterprises Will
Immediately Adopt All Aspects Necessary for Significant Business Impact, May 2006

Some parting thoughts

“Crossing Science and Industrial application will give
Albertan’s an opportunity which is digital by nature, so
Cyberinfrastructure should be one of the problem
solvers for business that could
take advantage of new technologies and improve
and grow markets.”

“Ultimately, taking full advantage of Web 2.0 may
require Management 2.0.”
(Business Week, June 05, 2006)


Next steps

Where are we now?

Where do we want to be?


Enterprise Web 2.0 and CI: How the Social Computing (R)evolution is Changing the Landscape

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