The Next NetWhat it means to your business

Dvir ReznikLotus Brand, IBM Software Group

dvir@il.ibm.comhttp://dvirreznik.blogspot.com

People 2.0The Architecture of Participation

http://flickr.com/photos/shawdm/820926627/

Web 1.0: the mostly read-only web

45 million global users250,000 web sites

Content ConsumersContent Providers

User-Generated Content

Published Content

Partially based on Dion Hinchcliffe’s Web 2.0 blog

Web 2.0: the wildly read-write web

1 billion global users80,000,000 web sitesContent ConsumersContent Providers

User-Generated Content

Published Content

CollaboratorsFacilitators

Collective Intelligence

Partially based on Dion Hinchcliffe’s Web 2.0 blog

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: 40% of Israelies

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.

Source: “Net Generation ‘wired’ differently”,National Post, and cbs.gov.il

✓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 flame you

The 3 Rs of Marketing 2.0

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

Growth 2.0The Long Tail

The Long TailD

em

and

Variety

The Long Tail• 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”

amazon.com sales

Amazon’s inventory: 2,300,000 books

Barnes & Nobles store: 130,000 books

Competitive Advantage 2.0

Data is Gold, People is Power, Fear is Not

Is Data Valuable?Only if you know how to use it

‣Data visualizationMake it easily consummable

‣Data filteringMake the good float to the top

‣Data sharingAllow others to mix and match

‣Data integrationMake difficult for others to copy you

Other people around the world

Other IBMers around the world

Other IBMers in your country

Co-Workers

Friends

YouAlexEyal

Your managerRami’s manager

Hila

YaronYuval

Eduardo

Ed

Muriel

Peter

Frequent e-mails

Infrequent e-mails

Web 2.0 Collaboration

Social networks as a distinctive advantage

Exclusive Social Networks

Innovation is a risky business

Not innovating is even riskier• Do’sDo’s

• Watch the kids, at Watch the kids, at workwork

• Try it yourselfTry it yourself

• Feed meFeed me

• BlogBlog

• Customers’ InputCustomers’ Input

Don’tsDon’ts

Putting up wallsPutting up walls

Take it personallyTake it personally

Consumers onlyConsumers only

Source: BusinessWeek, CIO Guide to Technology, 2006