Everyone is talking Social Media, but what about companies with a more traditional profile? What are the true ramifications of web 2.0 technologies and modes of thinking to “traditional” clients? What are the avenues for innovation? What opportunities exist using the social web, and web 2.0 technologies this year?
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The New Group SM Opportunities
1. Evolving your business with the Social Web
A Social Media Workshop
The New Group | June, 2009
4540 SW Kelly Avenue, Portland, Oregon 97239
p. 503.248.4505 thenewgroup.com
2. Agenda
Introduction
A Brief History of Social Interaction
The Web… as a Platform
– Case Study: Amazon vs. Netflix
The Web… as a Rich User Experience
– Case Study: iPhone
The Web… as a Real-Time Interaction Between Producers and
Users
– Case Study: YouTube vs. Hulu
The Web… as a Consumer-Driven Marketplace
– Case Study: Google Ad-Words vs. iTunes and the AppStore
Interactive Exercise
– Other Web 2.0 Principles, Applying Web 2.0 to DST Output
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
3. Introduction
Tom Bennett, Digital Strategist
– 20 years of Strategic and Marketing program development
– Panel speaker at industry events
– Adweek Interactive Advertising of the Year winner
– Driver of Social Media innovation and technology
Toby Paul, Technologist
– 15+ years of Technology Development and Consulting
– Published author of several white papers and articles
– Mantra is: “Would I use it?”
– Dreams of the day when people once again experience
the internet with wide-eyed wonder.
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
4. Section 1: Modes of Social Interaction
Village Messenger Producer Aggregator Integrated
Marketplace
Producer
Consumer
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
5. Some Important Vocabulary
Producers
Those engaged in the production of content,
information, material or value
Consumers
Those engaged in the consumption of content,
information, material or value
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
6. Time and Influence
Influence
Time
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
8. The Village Market
The Village
Geographically constrained
Distributed ownership of infrastructure
Defined by customs/internal traditions
High visibility/presence/awareness
High degree of personal accountability
High contact among producer/consumer
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
9. The Age of Exploration and Commerce
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
10. The Messenger
The Messenger
Less geographically constrained
Distributed ownership of infrastructure
Defined by trust
Low visibility/presence/awareness
High degree of personal accountability
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
11. Industrial Production & Ownership
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
12. The Producer
The Producer
Not geographically constrained
Concentrated infrastructure
Low visibility/presence/awareness
Minimal degree of personal
accountability
High requirement for brand and value
creation
Brand becomes abstracted from value
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
14. The Aggregator
The Aggregator
Not geographically constrained
Concentrated infrastructure
{
Low visibility/presence/awareness
Low degree of personal accountability
High requirement for brand and value
creation
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
16. The Web as an Integrated Marketplace
The Integrated Marketplace
Not geographically constrained
{
Distributed infrastructure
Defined by arbitrary or internal traditions
High visibility/presence/awareness
High degree of personal accountability
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
17. Look Familiar?
Village Messenger Producer Aggregator Integrated
Marketplace
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
18. Mass Media was an Aberration
“Web 2.0 is a course correction for the
Internet that is weaving the social fabric
back together again. It re-establishes the
relationships that we have in the offline
world… and enables that group consumption
to happen again.” ?
- Patrick Crane, LinkedIn
Was this an aberration?
Was does the future hold?
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
19. Section 2: Opportunities in Web 2.0
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
20. Groundswell Social Technographics Profile: All Adults
0 20 40 60 80 100
Creators 18
Critics 25
Collectors 12
Joiners 25
Spectators 48
Inactives 44
U.S. Adults
(Relative % of adult respondents)
Source: Forrester’s North American Social Technographics Online Survey, Q2 2007
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
21. Groundswell Social Technographics Profile: SMB
0 20 40 60 80 100
18
Creators 25
25
Critics 31
12
Collectors
17
25
Joiners
24
48
Spectators 53
Inactives 44 Small Business Owners
38
(Relative % of adult respondents compared to % of SMBs)
Source: Forrester’s North American Social Technographics Online Survey, Q2 2007
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
22. The Web… as a Platform
It all works… together.
“Salesforce.com sells subscriptions to a customer relationship
management application, but when you talk
to the company's CEO, Marc Benioff, you
quickly understand that he is betting
that its development platform,
called Force.com, will fuel growth
in the future.”
- Martin LaMonica,
Cnet News, 3/19/2008
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
23. The Web: an Application Development Platform
Using the web as a platform enables the development of
robust web-based applications that can be used regardless
of device and operating system.
Applications developed in this way have a high degree of
reusability
The development costs are generally lower
And the ongoing development lifecycle is more flexible
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
24. Interoperability
The capability to communicate, execute programs, or
transfer data among various functional units in a manner
that requires the user to have little or no knowledge of the
unique characteristics of those units.
» ISO/IEC 2382-01, Information Technology Vocabulary,
Fundamental Terms
AJAX, XML, Web services
Metadata, Semantic web
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
25. Portability
Redeploying an application, component, or framework
directly from one platform to another (e.g. PHP to .NET to
Java).
Widgets
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
26. Security/Privacy
Users’ confidence in the security of their personal information
and trust in how it will used.
PCI Compliance
Encryption Tech for CC and Transactions
Account Information
Embedded transactional data
The power of anonymity
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
27. Monetization
A Web platform can be monetized when its architecture
enables generation of recurring revenue from the
underlying platform, in addition to the overlaying products
and services.
Licenses (patents) (Amazon; Netflix)
Ad-revenue (Google, YouTube)
Commerce-based transactions (Amazon, iTunes)
Subscriptions (Salesforce, Napster)
Micropayments
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
28. Case Study: Amazon vs. Netflix
Amazon vs Netflix – Bridging the Digital Divide
How have two distinct companies have addressed the
challenge of creating an infrastructure to support both
physical and digital distribution, and approached it from
two different directions?
VS.
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
29. Case Study: Amazon vs. Netflix – Background
Amazon –
Started as e-tailer, first in books and then full-service
Created comprehensive logistics/distribution network
Developed white-label storefronts
Netflix –
Started as online storefront for physical rental service
Created automated infrastructure for distribution
Partnered to create digital movie delivery network
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
30. Case Study: Amazon vs. Netflix – Key Learnings
Began in one category of business and then evolved into new
ones as the marketplace evolved.
Patented business processes coupled with physical
infrastructure to increase the barrier-to-entry for potential
competitors.
Principles leveraged:
– Agility
– Interoperability
– Monetization
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
31. The Web… as a Rich User Experience.
It’s the difference between usable, useful, and
essential.
“Web 2.0 is really about the user experience and not the
underlying technologies.”
- Garrett Camp (Founder, StumbleUpon)
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
33. Rich Internet Applications
New development tools enable the creation of non-web
applications that are capable of leveraging internet
connectivity to provide valuable services.
AJAX
Javascript
AIR
Silverlight
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
34. Contextual Relevance
Connecting disparate sources of information together to
provide additional levels of value.
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
35. Customization
The persistence of content and experiences based upon user-
defined preferences.
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
36. Interactivity
Moving beyond the static presentation of information by
enabling users to have options for how the data is
presented.
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
37. Geo-location
• Built-in location
services are layered
with commercial or
user-generated
content.
• The OS contains
built-in functionality
for seamless
commerce
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
38. Augmentation
Optional layers of additional information that a user can
choose to use, without the publishers harvesting any data.
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
39. Mobile
Applications designed to be useful in public situations with
small form factor devices.
Hierarchy of delivery – push (alerts) vs. pull (subscription)
Web-apps vs. device-apps vs. carrier apps
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
40. Case Study: The iPhone
The iPhone:
Ubiquitous to
Indispensable
focused on a rich
experience
bridges device-specific to
carrier-specific (Visual
Voice Mail) to open access
(Web browsing).
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
41. Case Study: The iPhone – Background
Conceived as an entire ecosystem
Rich development API - pre-
released to involve the developer
community
Monetized delivery – App Store
Integrated with 2 platforms –
AT&T, Apple OS
Advanced Features
Internal accelerometer
Seamless Geo-Location
Visual Voicemail
Microsoft Exchange Support
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
42. Case Study: The iPhone – Key Learnings
Compliance
Accessibility
New content/Up-content
Immediacy
Responsiveness
Presence
Participatory
Asynchronous
Graphical
Multimedia
Micropayments
Shopping carts
Mobile/distributed
Consumer/client intelligence
Portable
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
43. The Web… as a real-time interaction
among producers and consumers
Making it personal.
“For Technorati, a lot of Web 2.0 is about authenticity,
accountability, interacting and this idea of the people-
powered, or the social web.”
- Dorion Carroll (VP of Engineering, Technorati)
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
44. Interacting Producers and Consumers
Its not about the
browser anymore.
Vibrant, two-way
communication
among all
contributors and
users, in all
locations
Acomplete
interactive
marketplace for
ideas, experiences,
and commerce
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
45. Personalization
Real-time adaptive presentation of information and content
based upon user behavior.
Categories of personalization:
– Profile / Group based
– Behavior based
– Collaboration based
Methods of personalization:
– Implicit
– Explicit
– Hybrid
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
52. Case Study: YouTube vs Hulu – We’re still using it wrong.
How YouTube changes the way you think.
We’re still using it as a broadcast model
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
53. Background: YouTube
Low-end production values/ user-generated content
Collaboration/Mashups
Community
Re-monetized network content
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
54. Background: Hulu
Focus on monetizing Network content
NBC on the Web
Focused Advertising – user preferences
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
55. YouTube: Key Elements
User-Generated Content
Flexibility: Anytime/Anywhere
Community
Syndication
Collaboration
Sharing
Forums/Discussion Boards
Monetized Content
User Preferences
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
56. Case Study: Google AdWords, iTunes and the AppStore
Google Ad-words: Applying Continuous Feedback to the Sales
Cycle; iTunes and the App Store:
(Recommended reading: The Secrets of Googlenomics;
Wired Magazine; June 2009: pp 107-115)
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
57. Google AdWords
Allows multi-platform
content producers
to monetize their
content
Ads display based on
natural relevance to
on-page content
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
58. iTunes
The new driving-force
within the online
entertainment
industry
Successfully monetized
online sharing of
music, video
The basis for the iPhone
and the AppStore
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com
59. Case Study: AdWords, iTunes, & AppStore – Background
Google AdWords –
Started as search engine.
Created a economy in which the line between buyer and
seller blurs
iTunes –
Started as music management application for the iPod
Transformed into online distribution network
Incorporated user feedback to drive product offerings
AppStore –
Started as an extension of iTunes for online delivery of apps
to the iPhone.
Transformed into revolutionary on-demand delivery platform
that enabled anyone to develop and distribute software.
Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com