Web ©Minder Chen, 2014 Web 2.0 and Beyond Minder Chen, Ph.D. Martin V. Smith School of Business and Economics CSU Channel Islands

Web ©Minder Chen, 2014 Web 2.0 Definition?! Cloud computingThe Internet of Things perpetual beta network effects mashup Web 2.0 is the network as platform (Cloud computing), spanning all connected devices (The Internet of Things); Web 2.0 applications are those that make the most of the intrinsic advantages of that platform: delivering software as a continually- updated service (perpetual beta) that gets better the more people use it (network effects), consuming and remixing data from multiple sources (mashup), including individual users, while providing their own data and services in a form that allows remixing by others, creating network effects through an "architecture of participation," and going beyond the page metaphor of Web 1.0 to deliver rich user experiences (using AJAX etc.).The Internet of ThingsThe Internet of Things

Web ©Minder Chen, 2014 Perpetual Beta Web vs. client/server applications Deployment – Single site User training – No chance

Web ©Minder Chen, 2014 Peer-to-peer IP/copyright issues BitTorrent

Web ©Minder Chen, 2014 Mashup: GIS Mapping and Data remixing data from multiple sources

Web ©Minder Chen, 2014 Enterprise Mashup A mashup is a Web page or application that uses and combines data, presentation or functionality from two or more sources to create new services. The main characteristics of the mashup are combination, visualization, and aggregation. It often makes existing data more useful.

Web ©Minder Chen, 2014 Moving from Web 1.0 to Web 2.0 Source: (CPM)

Web ©Minder Chen, 2014 Photo Tagging &ref=fbx_albumhttp:// 5&ref=fbx_album

Web ©Minder Chen, 2014 YouTube: Folksonomy & Viral Marketing (My database tutorial) An example of a viral video by the band OK Go.

Web ©Minder Chen, 2014 Tagging and Word Cloud Word clouds at Created based on part of Web 2.0 entry in Wikipedia. Words such as Web, user, may were removed manually.

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Web ©Minder Chen, 2014 Principles Harnessing Collective Intelligence –Data is the next Intel inside. (NavTeq Onboard – Map data used by MapQuest) –The wisdom of crowds ( crowd sourcing ). Services, not packaged software, with cost- effective scalability (cloud computing). Control over unique, hard-to-recreate data sources that get richer as more people use them. Software above the level of a single device. Lightweight user interfaces, development models, and business models. (Web-based, Mobile Apps) Leveraging the long tail through customer self- service.

Web ©Minder Chen, 2014 Crowdsourcing For Rent Share economy (link, examples)linkexamples Open Source Software Crowd fundingCrowd funding: Kickstarter Wisdom of the CrowdWisdom of the Crowd: GoldCorp, PickFactor.com PickFactor.com

Web ©Minder Chen, 2014 Principles The web as platform. –Leverage customer-self service and algorithmic data management to reach out to the entire web, to the edges and not just the center, to the long tail and not just the head. –The service automatically gets better the more people use it. (e.g., BitTorrent) - Peer-to-peer –Network effects (network externality) from user contributions are the key to market dominance in the Web 2.0 era. –Decentralized architecture. –The wisdom of the crowd. –We, the media. (You! Time the man of the year 2006). Trusting users as co-developers.

Web ©Minder Chen, 2014 Reductionist view of Web 2.0 Read and write Writing by everyone

Web ©Minder Chen, 2014 Blogsphere Ecosystem Source:

Web ©Minder Chen, 2014 Social Technographics Ladder

Web ©Minder Chen, 2014 Pinterest.com Spotify Foursquare

Web ©Minder Chen, 2014 Social Network Marketing/

Web ©Minder Chen, 2014 Evolution of Web 1.0 to 2.0 Text Photo Sound Video Developer Employee Customer Everyone Create/ Publish Distribute/ Share Participate/ Connect Collaborate HTML: Contents (Static Sites) Web API/ Web services Web Apps.: Dynamic Web Site XML: Microformat YouTube Podcast Flickr Blog Wikipedia MySpace Facebook RSS Tagging Blog MediaContributorPurposeContent/App.

Web ©Minder Chen, 2014 Backup Slides

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Web ©Minder Chen, 2014 Building Blocks for Web 2.X Social Layer Business Layer User interface Layer Information Layer Technology Layer Web services BPEL & BPMS Widget Technical SOA SaaS Enterprise agility Rich Internet Applications Wiki AJAX XML AdSense MySpace MashUp RSS Zillow FaceBook SOE Business Process Layer Blog Twitter Wikipedia

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Web ©Minder Chen, 2014 Conversation Prism dsdfsd

Web ©Minder Chen, 2014 Reach and Richness The concept of the reach and richness originated from reach and range of the infrastructure services, first proposed by Peter Keen. Weill & Broadbent defined “reach” as the capability of connecting to anyone, anywhere, while “range” refers to business activities which can be accomplished and shared automatically and seamlessly across every level of the reach. Extended into the digitized market network Evans & Wurster, define “reach” as the number of people connected and “richness” as quality of information processed.

Web ©Minder Chen, 2014 Richness (Depth) and Reach (Broad) Source: Strategy and the New Economics of Information by Philip B. Evans and Thomas S. Wurster, HBR, September 1997.Philip B. EvansThomas S. Wurster

Web ©Minder Chen, 2014 Collaboration Rules Source: Philip EvansSource: Philip Evans, Bob Wolf, “Collaboration Rules,” Harvard Business Review, Jul 01, 2005Bob Wolf

Web ©Minder Chen, 2014 The man, or rather machine of the year is the computer in the Time magazine in 1982!

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Web ©Minder Chen, 2014 Dec. 25, We!

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Web ©Minder Chen, 2014 Long Tail

Web ©Minder Chen, 2014 Pure Players vs. Physical Retailers

Web ©Minder Chen, 2014 Product Variety Comparison for Internet and Brick-and-Mortar Channels Product Category Large Online Retailer Typical Large Brick-and-Mortar Store Books3,000,00040,000 – 100,000 CDs250,0005,000 – 15,000 DVDs18, – 3,000 Digital Cameras21336 Portable MP3 players Flatbed Scanners The unlimited “shelf space” of the Internet. Free:The Future of a Radical Price, Chris Anderson

Web ©Minder Chen, 2014 Product not available in offline retail stores Songs available at Rhapsody

Web ©Minder Chen, 2014 Changing “Demand Curve” The total volume of low popularity items exceeds the volume of high popularity items. Why? Search Cost, Carrying Cost, Niche

Web ©Minder Chen, 2014 Shifting Demand down the Long Tail Netflix data shows shifting demand down the Long Tail

Web ©Minder Chen, 2014 Online Resources Why $o.oois the future of business [PDF] FREE: The Future of Radical PriceFREE Creative Common: Sci-Fi's Cory Doctorow Separates Self-Publishing Fact From Fiction (PodCast)Sci-Fi's Cory Doctorow Separates Self-Publishing Fact From FictionPodCast