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

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Companies are only now realizing that for themselves to participate in this new market driven by a new user driven web, they will have to join in the conversation - learning to listen, to talk, to collaborate and become one with their customers who are the true owners of their brands. Either that or corporations face isolation, irrelevancy and obsolescence.

Publié dans : Business, Technologie
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What Managers Need to Know About Web 2.0 (and a little 3)

  1. 1. What Managers Need to Know About Web 2.0 (and a little 3) Lance Shields, Sylvia Victor, Go Isobe, Kim Jun hyung, Ian Wakeford Information Systems McGill MBA Japan
  2. 3. A survey: What did you all say about Web 2.0?
  3. 4. Poll: “Which of these do you use regularly?”
  4. 5. Poll: “Which do you think are going out of fashion?”
  5. 6. Poll: What do you regularly use the web for?
  6. 7. Poll: Do you think companies should participate on social sites like Facebook?
  7. 8. 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 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?
  8. 9. Poll: What’s the meaning of “Web 2.0”? <ul><li>“ No idea.” </li></ul><ul><li>“ Sharing.” </li></ul><ul><li>“ It means people having conversations.” </li></ul><ul><li>“ It is just a way to explain things on the web. Nothing new. “ </li></ul><ul><li>“ The effect of mass telecommunication on technology. “ </li></ul><ul><li>“ Web 2.0 indicates the web as a platform for interactive networked applications” </li></ul><ul><li>“ The web as a platform. Software as a service. Social media. The customer adds value to the corporation.” </li></ul><ul><li>“ A platform that allows users to interact with a web environment in a personalized manner.” </li></ul><ul><li>“ Internet based interactive technologies that facilitate the sharing of information, learning, etc...“ </li></ul>
  9. 10. Poll: What’s the meaning of “Web 2.0”? <ul><li>User influenced content presentation. Interactivity through javascript. </li></ul><ul><li>Being able to interact with other people, and enjoy interacting with creative people. </li></ul><ul><li>“ 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.” </li></ul><ul><li>“ 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.” </li></ul>
  10. 11. How organizations utilize Web 2.0 to create new business models
  11. 12. We asked you… “Have you ever clicked on the following online ads?”
  12. 13. Twitter.com – innovator of “microblogs”
  13. 14. Evan Williams, Twitter’s CEO said… <ul><li>“ If we spent time monetizing early on, it would have meant we weren’t doing other things that made the product better for users,” </li></ul><ul><ul><li>(Registrations have grown 600 percent over the last year. ) </li></ul></ul>http://www.nytimes.com/2008/10/21/technology/start-ups/21twitter.html
  14. 15. Yammer.com: - “Twitter with a business model”
  15. 16. David Sacks, Yammer’s CEO said… <ul><li>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. </li></ul><ul><li>TechCrunch,, called the company “Twitter with a business model.” </li></ul>http://www.nytimes.com/2008/10/21/technology/start-ups/21twitter.html
  16. 17. Business case for Twitter <ul><li>Customer Relations </li></ul><ul><li>Crisis Communications </li></ul><ul><li>Crowd Sourcing </li></ul><ul><li>Build Brand & Communications </li></ul><ul><li>Lead Generation </li></ul><ul><li>Announce new services, coupons & information </li></ul><ul><li>Professional Networking </li></ul>What Twitter is currently considering for 2009!
  17. 18. How social media can be used within a corporate environment
  18. 19. Best Buy’s Blue Shirt Nation <ul><li>Over 20,000 registered employee users share and discuss their ideas and experiences </li></ul><ul><li>A contest of creating 401(k) promotion videos increased the plan enrollment by 30% (Cook, 2008) </li></ul>Source: Blue Shirt Nation
  19. 20. Social Media within a Company <ul><li>Post messages </li></ul><ul><li>Share documents </li></ul><ul><li>Share calendars </li></ul><ul><li>Keyword search </li></ul><ul><li>Blog </li></ul><ul><li>Discuss ideas </li></ul><ul><li>In-house ‘Wikipedia’ </li></ul><ul><li>Participate in surveys </li></ul>Source: Charran et al (2007)
  20. 21. Pros and Cons Social Media within a Company <ul><li>Pros </li></ul><ul><li>More leverage employees’ knowledge and ideas </li></ul><ul><li>Quickly share information </li></ul><ul><li>Useful tools that can reduce employees’ workload (e.g. keyword search engine, internal survey creator, shared documents/calendars) </li></ul><ul><li>Cons </li></ul><ul><li>Difficult to control internal communications </li></ul><ul><li>Higher risk of company secrets being disclosed </li></ul><ul><li>Employees might spend too much time for blogging </li></ul>
  21. 22. Aligning your organization to web 2.0
  22. 23. Internal & external activity with web 2.0
  23. 24. Enterprise 2.0 <ul><li>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. </li></ul><ul><li>Abstract: Don Tapscott - Wikinomics: Winning with the enterprise 2.0 </li></ul>
  24. 25. The New Enterprise 2.0 <ul><li>Structure </li></ul><ul><li>Scope </li></ul><ul><li>Resource Focus </li></ul><ul><li>State </li></ul><ul><li>Personnel/focus </li></ul><ul><li>Key drivers </li></ul><ul><li>Direction </li></ul><ul><li>Basis of action </li></ul><ul><li>Individual motivation </li></ul><ul><li>Learning </li></ul><ul><li>Basis for compensation </li></ul><ul><li>Relationships </li></ul><ul><li>Employee attitude </li></ul><ul><li>Dominant requirements </li></ul>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
  25. 26. Procter and Gamble Values <ul><li>We develop close, mutually productive relationships with our customers and our suppliers. (External) </li></ul><ul><li>We develop the capability to deliver our strategies and eliminate organizational barriers. (Networked) </li></ul><ul><li>We have a compelling desire to improve and to win in the marketplace.(Dynamic) </li></ul><ul><li>We are all leaders in our area of responsibility, with a deep commitment to deliver leadership results.(Professional) </li></ul><ul><li>We respect our P&G colleagues, customers and consumers, and treat them as we want to be treated. (Empowerment) </li></ul><ul><li>We accept personal accountability to meet the business needs, improve our systems and help others improve their effectiveness.(Teamwork) </li></ul><ul><li>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) </li></ul>Source: P&G: Our Purpose, Values and Principles, 2003
  26. 27. Connecting to Customers at P&G
  27. 28. Innovation at P&G Olay® Derma-Pod The 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
  28. 29. Applying a social computing strategy to a product lifecycle Source: Web-Strategy by Jeremiah (http://www.web-strategist.com/blog/)
  29. 30. Wal-Mart: Failed experiments in Web2.0 <ul><li>Establish a social networking site: “The Hub” </li></ul><ul><li>Create a Facebook group:”Roommate Style Match” </li></ul><ul><li>A blog: “Wal-Marting Across America” </li></ul>Images from: http://www.walmart.com/
  30. 31. Wal-Mart Winners: <ul><li>Integration with suppliers (eg P&G) </li></ul><ul><li>Checkout.blog </li></ul><ul><li>RSS Feeds </li></ul><ul><li>Elevenmoms </li></ul>Images from: http://www.walmart.com/
  31. 32. Web 2.0 Today and in the Future
  32. 33. 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.” “ 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.” Traffic shaping, proprietary networks, draconic political measures to stem &quot;piracy&quot; and as a bonus a lot of free enterprise and ideological competition. As a result of this: Encryption, anonymization, digital terrorism.
  33. 34. Aggregation thru feeds: LinkedIn.com
  34. 35. 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.
  35. 36. Integration of PC and mobile: Navitime Mobile restaurant search PC restaurant search
  36. 37. WE ASKED YOU…“Do you think blogging is going out of fashion?”
  37. 38. “ Blogs are DEAD!” – Paul Boutin <ul><li>“ Bloggers today are expected to write clever, insightful, witty prose to compete with Huffington an d 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.” </li></ul>http://www.wired.com/entertainment/theweb/magazine/16-11/st_essay Wired Magazine writer Paul Boutin
  38. 39. “ Content is a commodity” – The Scobleizer <ul><li>“ 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.” </li></ul>Web 2.0 guru the Robert Scoble http://scobleizer.com/2007/10/08/content-commodities/
  39. 40. A managerial perspective on Web 2.0
  40. 41. Top 10 US Websites <ul><li>By not taking part in the conversations of web 2.0: </li></ul><ul><li>their websites will be viewed as static brochureware </li></ul><ul><li>companies will quickly lose relevancy to customers </li></ul><ul><li>they will miss key insights about what their customers really want </li></ul><ul><li>Top 10 US Site </li></ul><ul><li>Google   </li></ul><ul><li>Yahoo! </li></ul><ul><li>Myspace </li></ul><ul><li>YouTube </li></ul><ul><li>Facebook </li></ul><ul><li>WindowsLive </li></ul><ul><li>MSN </li></ul><ul><li>Wikipedia </li></ul><ul><li>EBay </li></ul><ul><li>AOL </li></ul>Source: Alexa.com
  41. 42. Creators Critics Collectors Joiners Spectators Inactives The ladder of participation Base: US online consumers Source: NACTAS Q2 2007 North American Social Technographics online survey and NACTAS Q4 2006 Youth online survey <ul><li>www.forrester.com/groundswell </li></ul>US 18% 25% 12% 25% 48% 44% Europe 10% 19% 9% 13% 40% 53% China 36% 44% 18% 32% 71% 25%
  42. 43. Social Technographics: Japan <ul><li>www.forrester.com/groundswell </li></ul>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.
  43. 44. 5 key things web 2.0 can do Source: Charlene Li and Josh Bernoff, Groundswell <ul><li>Insight Communities </li></ul><ul><li>Scan and monitor existing communities. </li></ul>Direct customer insight New product ideas Beta testing Listening <ul><li>Marketing campaigns (interactive) </li></ul><ul><li>Advertisements </li></ul>Create an emotional attachment. Advertising based on network Speaking <ul><li>Applications, widgets </li></ul><ul><li>Media </li></ul>Excite your biggest fans. Word of mouth Energizing <ul><li>Customer-created groups </li></ul>Peer-to-peer support Supporting <ul><li>Ideastorm, SalesForce </li></ul>Members become contributors Embracing Example Contribution Goal
  44. 45. Scorecard: attributes for success <ul><li>Does the campaign provide valuable content that supports the community members’ goals? </li></ul><ul><li>Are key elements of the campaign available where needed? </li></ul><ul><li>Is the campaign self-fueling? </li></ul><ul><li>Does the marketing effort encourage member-to-member participation? </li></ul><ul><li>Does the marketing effort encourage member-to-Website interaction? </li></ul><ul><li>Does the company participate in the campaign on an ongoing basis? </li></ul><ul><li>Does the marketing effort allow the members to share the elements to other locations? </li></ul><ul><li>Is there an appropriate call to action? </li></ul>Source: Web-Strategy by Jeremiah (http://www.web-strategist.com/blog/)
  45. 46. Top three most frequently failed criteria Source: July 2008, “Best And Worst Of Social Network Marketing, 2008”
  46. 47. Top three most frequently passed criteria Source: July 2008, “Best And Worst Of Social Network Marketing, 2008”
  47. 48. FUTURE JOB: Social Media Strategist: Internal Leader <ul><li>The community strategist who organizes internal resources and supports the program </li></ul><ul><li>This experienced business manager: </li></ul><ul><ul><li>Maneuvers within the organization. </li></ul></ul><ul><ul><li>Leans on relationships with many business teams. </li></ul></ul><ul><ul><li>Manages the business program. </li></ul></ul><ul><ul><li>Leads the internal charge. </li></ul></ul><ul><ul><li>Develops the objectives and obtain resources. </li></ul></ul><ul><ul><li>Creates policy, deals with internal stakeholders, and provides ongoing reports to management. </li></ul></ul>Ed Terpening VP, social media, Wells Fargo Source: Web-Strategy by Jeremiah (http://www.web-strategist.com/blog/)
  48. 49. FUTURE JOB: Community Manager: Member Champion <ul><li>The community manager or moderator who interacts with members </li></ul><ul><li>As a primary advocate of the community, the community manager: </li></ul><ul><ul><li>Balances the needs of the community with corporate objectives. </li></ul></ul><ul><ul><li>Is a customer advocate </li></ul></ul><ul><ul><li>Is a brand evangelist </li></ul></ul><ul><ul><li>May create editorial content </li></ul></ul><ul><ul><li>Harvests customer needs for market intelligence </li></ul></ul><ul><li>Skills </li></ul><ul><ul><li>Possess strong online communication skills, be approachable and conversational, and have the ability to relate to the members, including in person </li></ul></ul>Lionel Menchca, digital media manager, Dell Computers Source: Web-Strategy by Jeremiah (http://www.web-strategist.com/blog/)
  49. 50. What’s coming next? WEB 3.0! <ul><li>network computing </li></ul><ul><ul><li>software-as-a-service business models, Web services interoperability, distributed computing and cloud computing; </li></ul></ul><ul><li>ubiquitous connectivity </li></ul><ul><ul><li>broadband adoption, mobile Internet access and mobile devices </li></ul></ul><ul><li>open technologies </li></ul><ul><ul><li>open APIs and protocols, open data formats, open-source software platforms and open data (e.g. Creative Commons, </li></ul></ul><ul><li>open identity </li></ul><ul><ul><li>OpenID, open reputation, roaming portable identity and personal data; </li></ul></ul><ul><li>distributed databases </li></ul><ul><ul><li>the “World Wide Database” (enabled by Semantic Web technologies) </li></ul></ul>Source: http://rosejn.net/plasma/plasma.html
  50. 51. References <ul><li>Blue Shirt Nation. Retrieved November 4, 2008 from http://www.blueshirtnation.com </li></ul><ul><li>Charran, 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 </li></ul><ul><li>Cook, S. (2008). The Contribution Revolution: Letting Volunteers Build Your Business. Harvard Business Review , 86, 60-69 </li></ul><ul><li>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 </li></ul><ul><li>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 </li></ul><ul><li>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 </li></ul><ul><li>Charlene Li and Josh Bernoff, Groundswell </li></ul><ul><li>Harvard Business Press, 2008 </li></ul><ul><li>Ted Matsumoto, The Strategy & Success Of Softbank Mobile And The Future Of Mobile Communications , </li></ul><ul><li>Presentation that Lance Shields attended at ACCJ on 9/22/2008 </li></ul><ul><li>Paul Boutin, Twitter, Flickr, Facebook Make Blogs Look So 2004 , 10/20/2008 </li></ul><ul><li>http://www.wired.com/entertainment/theweb/magazine/16-11/st_essay </li></ul><ul><li>Robert Scoble, Content Commodities , 10/2007 </li></ul><ul><li>http://scobleizer.com/2007/10/08/content-commodities/ </li></ul><ul><li>Forrester Research, Social Technographics Profile , 2008 </li></ul><ul><li>http://www.forrester.com/Groundswell/profile_tool.html </li></ul>
  51. 52. Glossary <ul><li>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. </li></ul><ul><li>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 (&quot;in the cloud&quot;) without knowledge of, expertise with, or control over the technology infrastructure that supports them. (source: wikipedia) </li></ul><ul><li>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) </li></ul>