Web 2.0 - The Social Web

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The Social Web

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Who I am?• Father of two boys• Evangelist of business models based on collaboration

and social networking.• Chief Officer of nContacto• Expert on Enterprise Communities of Practice• WW Compliance Manager in the business of Printing

Systems Management at HP• Former CFO and Controller for Hewlett Packard

Venezuela.• Chemical Engineer (ITESO Guadalajara)• MBA in Finance (ITESM campus Guadalajara) • Experienced educator• President of the Houston Chapter of the Mexican

Talent Network• Co-founder and active member of the Alumni

Association ITESM in Houston (Ex-A-Tecs)

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PP_Lopez

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Topics

• What is Web 2.0 ?• Principles of Web 2.0• Understanding effects of Web 2.0• Communities• How to start• Enterprise 2.0

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If time permits…

• The Long Tail• Your Digital Identity• Usability

5WHAT IS WEB 2.0?

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“Web 1.0 was Commerce

Web 2.0 is People”

- Ross Mayfield

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Web 2.0• The term Web 2.0 refers to a second generation of services available on

the World Wide Web that lets people collaborate and share information online.

– closer experience to desktop applications than the traditional static Web pages (Web 1.0).

– allow for mass participation (web-based social software - blogs and wikis).• the phrase refers to one or more of the following:

– The transition of websites from isolated information silos to sources of content and functionality

• -> computing platforms serving web applications to end users – Approach to creating and distributing Web content itself (open

communication, decentralization of authority, freedom to share and re-use, and "the market as a conversation“)

– A more organized and categorized content– A shift in economic value of the web, possibly surpassing that of the dot com

boom of the late 1990s – A marketing term to differentiate new web businesses from those of the dot

com boom– The resurgence of excitement around the possibilities of innovative web

applications and services

http://en.wikipedia.org/wiki/Web_2.0

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History

1990

1991

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2011

WWW was born!

Mosaic (Netscape)

Web 2.0 Conference

Google

Yahoo!

.com Bubble

Friendster

Linkedin

MySpace

Facebook

Twitter

sixdegrees

Source: Wikipedia

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Vastly increased scale of users and content….

Source: Wikipedia

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Technology and social factors converge to create social computing

Technology• Cheap hardware and software reach the

masses• Computing power migrates to the edge of

the network

Social change

Technology increases the speed and force of social change

SocialComputing

• Aging consumers look to technology to support families and communities

• Younger generations pioneer the use of personal networks and viral communication

Social forces shape technology development and custom applications

Source: Forrester

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What is Web 2.0? Biz view…

• Web 2.0 represents a fundamental shift toward a more open, flexible and participatory model for creating content, systems and business models. Its application can reduce cost, enhance adaptability and create new business opportunities."

The Gartner Group

• Web 2.0 is 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 characterized by user participation,

openness, and network effects.

Tim O’Reilly

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Consumer mind-shifts...

Source: Forrester

Consumers are less brand loyal

52% of consumers say brand trumps price, down from 59% in 2000

Only 42% of consumers say they even “somewhat” trust newspapers

Consumer trust is falling

Consumer-to-consumer activities growing

C2C eCommerce, messaging, blogs, camera phones, video phones

Consumers are customizing products and services

10% - 40% of customers develop or modify products

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What’s ChangedWeb 2.0 attributes differ from those of traditional web apps in numerous ways

Characteristics Web 1.0 Web 2.0Mode Read Write and contribute

Content created by Web coders Everyone

Primary unit of content Page Post and record

State Static Dynamic, application-like

Viewed through Web browser RSS readers, web browsers, Apps

Architecture Client-server Web services

Domain of Geeks Amateurs

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Need Human 1.0 Web 1.0 Web 2.0Many to many communication

Live Conversation Bulletin Boards Discussion Forums

One to many communication

Journals, Personal Diary

Personal websites Blogs

Collaboration Message Board Hyperlinks Wikies

Taxonomy Post-it Bookmarks Tags

Broad Communication

Live Conferences Video conferences Webinars

News, Notifications

Newsletter, Memorandums

Email distribution Web Syndication

Documentation Books, Manuals, Procedures

Website, Shared files, email

Collaborative portal

Web Evolution

Social Social again!

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Web 1.0 Web 2.0

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Web 2.0 Examples

www.slideshare.net/tippydawn/web-20-tools-to-inspire

17PRINCIPLES OF WEB 2.0

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Principles of Web 2.0

• No Products, but Services• Customization• Focus on the “Long Tail”• Harnessing Collective Intelligence• Specialized Database• Who owns the data• End of Software Release Cycle• Software above the level of a single device

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No Products but Services

“There are no products, only solutions”

• Not what customer wants but why they want

• A problem solving approach

• Simple Solutions

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No Product but Services

www.mint.com

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Customization

• Every individual is unique

• Some people want to be different

• Allow him to choose instead of forcing him to use what you have made

• Make him feel home

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Customization

Screen clipping taken: 2/3/2011, 5:50 PM

www.ning.com

Screen clipping taken: 2/3/2011, 5:53 PM

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Focus on the “Long Tail”

• Reach out to the entire web

• To the edges and not just to the centre, to the long tail and not the just the head

• Put everything there• Leverage customer-self service

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Focus on the “Long Tail”

www.netflix.com

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Harnessing Collective Intelligence

• Network effects from user contribution are the key to market dominance in Web 2.0 era– The Wisdom of crowds – Users add value

• Systems designed to encourage participation – Pay for people to do it – ‘gimme five’– Get volunteers to perform the same task

• Inspired by the open source community• Mutual benefits e.g. P2P sharing

• It requires radical experiment in trust

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Harnessing Collective Intelligence

www.kickstarter.com

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Specialized Database

• Every significant application to date has been backed by a specialized database

• Database management is the core competency of Web 2.0 companies

• “Infoware” rather than merely “software”

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Specialized Database

www.foursquare.com

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Who owns the data

• Control over data has led to market control and oversized financial returns

• It will provide a sustainable competitive advantage to the company

• Especially is data sources are expensive to create or amenable to increasing returns via network effects

• Race is to own certain classes of core data e.g. naukri.com, 99acre, yahoo

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Who owns the data

www.flickr.com

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End of the Software Release Cycle

• “Release Early and Release Often”

• “Perpetual BETA”

• Daily operations must become a core competency

• Software will cease to perform unless it is maintained on a daily basis

• Real time monitoring of user behavior

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End of the Software Release Cycle

www.docs.google.com

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Software above the level of a Single Device

• The PC is no longer the only access device for internet applications

• Applications that are limited to a single device are

less valuable than those that are connected.

• Design your application from the get-go to integrate services across handheld devices, PCs, and internet servers.

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Software above the level of a Single Device

www.evernote.com

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UNDERSTANDING EFFECTS OF WEB 2.0

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So to understand how to do business in a 2.0 world…

You do not need to understand the Web 2.0 technologies

You are better off understanding Human 1.0 – not as individuals, but as

hyper-social creatures

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It’s more about the people than the technology

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Connect & Communicate

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What’s happen?

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What are the important Human 1.0 Hyper-Social Traits

• Reciprocity – it’s a reflex that allows us to be the only super-social species without all being brothers and sisters

• Social framework - Evaluating things vs. market framework

• Fairness - The role of fairness and punishment in assessing situations

• Mimicking Others - The importance of looking cool and imitating others

• Herding and self-herding – We like to gather

• Meritocracy – Status and reputation matters

Source: The Hyper-Social Organization – F. Gossieaux & E. Moran

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Hyper-Social companies think differently: a recap

• Think tribe – not market segment– We need to find groups of people who have something in common

based on their behavior, not their market characteristics

• Think knowledge network – not information channel– The most important conversations in communities happen in

networks of people, not between the company and the community.

• Think human-centricity – not company-centricity– The human has to be at the center of everything you do, not the

company

• Think emergent messiness – not hierarchical fixed processes– People will want to see responses to their suggestions, even if it

does not fit your community goals – FAST


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Turning a business process into a social process

Running traditional programs using social media platforms


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Turning a business process into a social process

Running programs based on human reciprocity and social contracts to get others


44COMMUNITIES

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A community

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A domain of interestGosport Allotment Holders &

Gardeners Association

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A place to meet

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Someone to facilitate

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3 Types of Communities

• Communities of Passion - have the richest and most formal set of activities, governance, and structure

• Communities of Practice - are less formal and are based on common work specialties

• Communities of Interest - are for topics that don’t require formal communities but need threaded discussions for collaboration and knowledge sharing

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Communities of Passion− Members have a

particular role (e.g., project management)

− Develops members to fit into this role, be proficient in this role, and actively help others to develop in this role

− Motivation: master the discipline

sourceforge.net

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Communities of Practice

www.realtown.com

− Members have a particular specialty (e.g., security)

− Various roles can participate

− Focused on developing expertise and skills in this specialty

− Motivation: learn about the specialty and solve problems

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Communities of Interest− Loosely

connected groups of people who want to learn about a particular topic

− No commitment in terms of delivering something together

− Motivation: stay current on the topic and ask questions

facebook.com Group EXATEC HOUSTON - ITEMS

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Richard McDermott on Communitieswww.mcdermottconsulting.com

• Healthy communities have a driving purpose, clear activities, and a sense of accomplishment

• Communities are becoming integrated into organizations• Community facilitation and participation are real work and require time• Core community members are well-connected through meetings and

ongoing contact• Healthy communities have high management expectations and support• The heart of a community of practice:

– peer-to-peer relationships– responsibility for stewarding a body of knowledge– membership crosses boundaries– room for dealing with whatever comes up

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Patterns of contribution

Source: Jacob Nielsonwww.useit.com/alertbox/participation_inequality.html

Number of participants

Nu

mb

er

of

con

trib

uti

on

s

1% active contributors

9% occasional contributors

90% readers (aka ‘lurkers’)

The 1-9-90 rule

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The “1% Rule”• For every 100 people online only 1 person will create content

and 10 will “interact” with it. The other 89 will just view it.• Each day at YouTube there are 100 million downloads and

65,000 uploads• 50% of all Wikipedia article edits are done by 0.7% of users,

and more than 70% of all articles have been written by just 1.8% of all users

• In Yahoo Groups, 1% of the user population might start a group; 10% of the user population might participate actively. 100% of the user population benefits from the activities of the above groups

Source: The Guardian

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Members of an active community

Facilitators

Facilitator

Activist

en.wikipedia.org/wiki/1%25_rule_(Internet_culture)

Lurkers

Contributors

Outsiders

1%

9%

90%

57HOW TO START

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Levels of EngagementLe

vel o

f eng

agem

ent

Type of engagement

Browse, search, learn(Anonymously)

Comment(with attribution)

Ask a question(with attribution)

Write a blog

Become a mentor

Become an expert

RegisterComment

(Anonymously)

Waxing and Waning Interest

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Start Contributing

1. Identify Yourself

2. Search & Explore Content

3. Know more About

4. Save & Share Links / Bookmarks

5. Subscribe

6. Store & Distribute Documents

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Start Contributing

7. Express & Discuss Ideas

8. Communicate & Get Feedback

9. Learn & Share Knowledge

10. Produce & publish content

11. Invite to Events

12. Work together

61ENTERPRISE 2.0

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The “Long Tail” of Work• Multi-tasking• Enriched jobs, several roles• Broad span of control, flat organizations• Tons of emails daily• Calendar overloaded of meetings and calls• 3-digits number of direct contacts• People located around the world• Multi-language, multi-cultures• Phone, email, instant messaging, virtual meetings, twitter, facebook,

etc. • Did I mention face-2-face (occasionally)?• Only 24 hours at day…..

Fundamental Shifts on Organizations

• More virtual, few human interaction– Communities requires face-to-face

meetings

• Micro formats of knowledge– PowerPoint slides, no longer reports– People is not reading, they are scanning

• Tragedy of knowledge common sense

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Balancing the Growing Costs

Growing Cost Web 2.0

Virtualization

Web 2.0

Community

Collaboration

Globalization

Storage of Knowledge

Connectivity

Complexity

Formal Structure (Org Chart) Informal Structure (revealed in ONA)

Formal vs. Informal Structures

Exploration & Production

Zaheer

Schultz

Mitchell

Klimchuck

Angelo

Keller

Smith

GeologyDhillon

Myers

PetrophysicalCrossley

ExplorationAvery

Cordoza

Sutherland

Ramirez

DrillingMcWatters

Waring

ProductionHassan

ReservoirHopper

ProductionMilavec

Senior VPMares

Mitchell

Hussan

MilavecHopper

Waring

Mares

Avery

McWatters

Ramirez

Myers

Cordoza

Klimchuck

Smith

Dhillon

Zaheer

Angelo

SchultzKeller

Crossley

Sutherland

What Do You Notice When You Compare the Formal and Informal Structures?

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Enterprise 2.0

• Informal, less structure, knowledge-based work of a company– Balance of formal structures and informal

networking

• IT enabled application of Web 2.0 to corporate environment– SLATES

• Enterprise-wide Social Networks

• Hyper-Collaboration– Wiki-culture

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Components of Enterprise 2.0

Six components (SLATES):

Search

Links

Authoring

Tags

Extensions

Signalshttp://sloanreview.mit.edu/smr/issue/2006/spring/06/

Levels of Collaboration

Lightweight Social Process

Collaborative Information Structures

Hight End Collaboration

Low-barrier social involvement like voting and the recording of personal participation

Core product enhanced by a social component, deeper participation to interact

Groups utilizing systems to make sense and share complex materials and data

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Key decisions needed for success

• A Receptive Culture

• A Common Platform

• An Informal Rollout

• Managerial Support

70USABILITY

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Usability Principles• Don’t make me think

– Simple, Self evident, obious, self-explanatory• Easy to Use

– We don't read pages. We scan them• Clear visual hierarchy • Use conventions• Break up pages into clearly defined areas• Make it obvious what’s clickable• Keep the noise down to a dul roar

– We don’t make optimal choices. • We satisfice• Good enough

– We don't figure out how things work. • We muddle through

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Usability PrinciplesDon’t make me think

Simple, Self evident, obvious, self-explanatory

Easy to Use We don't read pages. We scan them Clear visual hierarchy Use conventions Break up pages into clearly defined areas Make it obvious what’s clickable Keep the noise down to a dul roar

We don’t make optimal choices. We satisficeGood enough

We don't figure out how things work. We muddle through

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Web Navigation 101

• Few clicks to get anywhere– No more than 3 clicks; 2 is a good goal

• Omit needless words– Happy talk must die– Instructions must die

• A well designed page should be able to answer these questions:– What site is this? (site ID)– What page am I on? (page name)– What are the major sections of this site? (sections)– What are my options at this level? (local navigation)– Where am I in the scheme of things? (“you are here” indicators)– How can I search?

74YOUR DIGITAL IDENTITY

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Socialize

• Think, then share• URL it!• Be Transparent• Be Personal• Contribute• Be reciprocal• Set the stage

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Create your Digital Identity

• Show who you are

• Express yourself

• Know your tools

• Keep simple

• Know your audience My profileMy blogMy feedsMy tags

My picturesMy presentationsMy placesMy videos

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Me - First

Market

Me

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Personal Identity People need to know

about me

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Company Identity People need to

know about me

80THE LONG TAIL

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Understanding the Long TailA powerlaw

0

10

20

30

40

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60

70

80

90

100

0 10 20 30 40 50 60 70 80 90 100

Products

Sal

es (

$)

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Where are they all going?

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Savagely truncatedB

ox

off

ice

Films

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An example of the Long Tail

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Six Themes of the Long Tail age

1. There are far more niche goods than hits2. Cost of reaching those niches is now falling dramatically.3. New “filters” can drive demand down the Tail4. Once there’s a massively expanded variety and the filters to

sort throught it, the demand curve flattens5. There are so many niche products that collectively they can

compromise a market rivaling the hits.6. Then, the natural shape of demand is revealed

• A Long Tail is just culture unfiltered by economic scarcity

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Three Forces of the Long Tail

Force Business Example1 Democratiz

e Production

Long Tail Toolmakers, Producers

Digital videocameras, desktop music and video software, blogging tools

2 Democratize Distribution

Long Tail Aggregators

Amazon, eBay, iTunes, Netflix

3 Connect Supply & Demand

Long Tail Filters

Google, Blogs, Rhapsody recommendations and best-seller lists

87REFERENCES

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BibliographyWeb 2.0: A Strategy GuideAmy Shuen

The Long TailChris Anderson

SearchJohn Battelle

WikinomicsDon Tascott

The Clue Train ManifestoLevine, Locke, et al

Enterprise 2.0Andrew McAffe

Here Comes EverybodyClay Shirky

The Wisdom of CrowdsJames Surowiecki

BlinkMalcolm Gladwell

The Hyper-Social Organization Francois Gossieaux & Ed Moran

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BloggraphyMashablemashable.com

Read Write Webwww.readwriteweb.com

Lifehackerlifehacker.com

Social Software Newswww.topix.net/business/social-software

Gizmodogizmodo.com

The FASTForward Blogwww.fastforwardblog.com

Cnet Webwarenews.cnet.com/webware

Chris Broganwww.chrisbrogan.com

Robin Goodwww.masternewmedia.org

Content Management Connectionblog.contentmanagementconnection.com

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Slidegraphy• Web 2.0 – The Social Web (this presentation!)

– http://www.slideshare.net/PPLopez/web-20-the-social-web-6806313

• What is Web 2.0– www.slideshare.net/adunne/what-is-web-20-157107

• Web 2.0 Tools to inspire– www.slideshare.net/tippydawn/web-20-tools-to-inspire

• Web 2.0– www.slideshare.net/kikollan/an-introduction-to-web-20-the-user-role

• An introduction to Web 2.0– www.slideshare.net/kikollan/an-introduction-to-web-20-the-user-role

• Webinar: The Hyper-Social Organization– www.slideshare.net/AwarenessLIVE/webinar-the-hypersocial-organization

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