Web2.0 Presentation v2.0

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    Beyond Web 2.0Why internet innovation matters

    5/30/2012Beyond Web 2.0 - Why internet innovation matters 1

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    Discussion points

    1) Web 2.0A platform for participation.

    2) Web 2.0Already in use.

    3) Web 2.0+Innovations create real business value.

    4) Web 2.0+The bar moves higher.

    5) Web Innovation:What does this mean for BT Global Services?

    6) Summary and take-aways

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    Web 2.0A platform for participation.

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    What is Web 2.0?

    Web 2.0 is the businessrevolution caused by the move

    to the Internet as platform.

    -Tim OReilly, 2004

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    Web 1.0 - the operating system as platform

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    Web 2.0 - the Internet as platform

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    Web 2.0 - the Internet as platform

    Web 2.0 is participationIt attempts to harness the collectiveintelligence of Web usersthe sites experiencing the fastestgrowth today are the ones that understand their audiencesneed for expression, stimulating others to do the same.

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    The network effect

    Openstandards

    Openarchitecture

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    The network effect

    Openstandards

    Openarchitecture

    Read &write

    Bandwidth& distribution

    People can contribute and react to the contributions ofothers; creating a network effect: the more peoplecontribute to a site, the more powerful the site becomes.

    Socialnetworking

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    Web 2.0Already in use.

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    A platform for open standards

    www.housingmaps.comcombines data fromCraigslist.com andGoogle Maps

    Salesforce.com

    Skype console

    Google: Makes their applicationprogramming interfaces(API) public

    Salesforce.com: Their APIs are public sodevelopers will buildextensions

    IP Telephony: Has become the futurestandard of choice

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    A platform for disruption

    Googles Android mobile softwareis the first complete, free, open-source, mobile platform

    Google released the SDK onlineand will award $10M to developers

    who build great applications

    Potential to disrupt mobilebusiness model

    Watch Googles Android demo video

    http://www.youtube.com/androiddevelopershttp://www.youtube.com/androiddevelopershttp://www.youtube.com/androiddevelopers
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    A ubiquitous platform enabling participation

    Increases in availability, affordability and adoption of bandwidth

    Global distribution provides high quality, low-cost breadth and reach

    Example: IBM.com is available in 33 languages, with localised content and

    functionality for 111 countries

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    A platform for participation

    Yesterday it was one-to-many , todayits many-to-many : Knowledge management and Wikipedia Blogs Collaborative categorizing Product and service reviews

    What are the implications? Rise of citizen influencers is eroding bigmedia Empowerment of niche interests andcommunities Consumer views about products,

    services and brands take center stage Lower barriers to entry

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    Participation in Wikis and forums

    Wikipedia transformed collaborative authoring, collaborative intelligence Widely used throughout corporate world* IBM has 67,000 wiki users + 56,000 pages**

    Sun Microsystems maintains active forums as primary means of tech support and rewardsthose who contribute

    *How companies can make the most of user-generated content The McKinsey Quarterly (August, 2007)

    **Wikis Change The Meaning Of Groupthink Forrester Research (January, 2007)

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    Participation in social networks with user-generated content

    Social networks are communities thatshare interests and activities: They interact via chat, instant messaging,email, voice, file-sharing, blogs,discussion groups and forums the sumof which creates value

    Brands have entered into dialogue withcommunities and customers: Brands to be more credible Brands now understand customer needsand issues on a deeper level increasingcustomer satisfaction

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    Participation in with user-generated contentattracts high engagement

    comScore analyzed engagement levelsamong visitors at top five UK UGC sitesand those visiting top 50 Web properties

    Visitors on UGC sites:

    Visit more frequently Stay longer View more content Are more engaged*

    *Leading User-Generated Content Sites See Exponential Growth in UK Visitors During the Past Year comScore Press Release (September 11, 2006)

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    User-generated content participants havedifferent qualities

    Five groups engage with UGC onlyfour contribute:

    Creators Critics Collectors

    Joiners Spectators Inactives

    Social Technographics: Mapping Participation in Activities Forms The Foundation Of A Social Strategy Forrester Research (April 19, 2007)

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    Inviting participation has risks

    In 2006, Chevy challenged users to remix Tahoe commercials*

    UGC attacked Tahoe on MPG and harmful effects to environment

    Videos circulated throughout Web, making damage control impossible

    *General Motors hosts ads attacking Chevy SUV ZDNet.com (April 3, 2006)

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    Web 2.0+Innovations create unique business value

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    Business model supported by collective intelligence

    Google Sponsored Links Ratios determine positions of ads helps shapes user experience

    Google Organic Search Results

    Collective intelligence used toqualify search results

    Helps determines order of searchresults

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    Using blogs to shorten sales cycles

    IBM developerWorks blog Platform for dialogue Technical buyers need conversations

    instead of getting info throughaccount team

    Helps IBM smooth product demos

    and negotiations later on

    *Marketing's Role In B2B Blogging: B2B Marketers Should Enlist Blogs To Support Future Sales Processes Forrester Research, February 22, 2007

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    Low-cost service and self-service

    Low-cost service:Palm Treo discussion forums are form of low-cost serviceNetwork effect increase value of the forum

    Self-service:Salesforce.com has more than 600K subscribersThey continue to build and grow sales management offerings pushing bar higher for

    those not using Salesforce or similar service

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    Collaboration tools are migrating to the Web

    AOL instant messenger most widely used free service leads with 52% share 341M consumer and 182M IM business users projected for 2007* Unified communications and collaboration (UCC) offerings include those from Nortel,

    Microsoft, Cisco, BT and others More than 350,000 US small and medium businesses use Skype UCC and IP

    telephony service

    Nortel MultimediaCommunicationServer

    *Instant Messaging and Presence: Market Size, 2002 2007 (Ferris Research January, 2003)

    Microsoft UnifiedCommunications Client API

    Cisco UnifiedCommunications

    Skype ConsoleAOL InstantMessenger

    Customer Service IM usedby Fidelity Investments

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    Widgets are made available to users to helpwith visitation and loyalty

    Yahoo!, Microsoft and Apple offer similarapplications

    Small, light software programs weather,games, shopping, sport scores and stocktickers, etc.

    Widgets distribute functionality and content to desktop or personal pages

    Source: Widgets make a big splash on the Net USA Today (November, 2007)

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    Emergence of virtual worlds

    Second Life is attracting organizations with a desire to foster innovation,encourage dialog and increase collaboration through:

    Events and meetings (trade shows, press conferences, product introduction, recruiting) Erasing geographical boundaries increases attendance and participation Virtual attendance builds community

    Business centers staffed with multi-lingual sales avatars Co-branded initiatives

    New product introduction Advertising and promotion In the future, SimCity-like ERP applications to simulate cities, infrastructure, services

    If all of a sudden, we have the ability to have far more productive meetingsbecause there are these technologies that facilitate people collaborating with each other, bringing resources, that could have a huge impact on productivity.

    Wladawsky-Berger, VP technical strategy and innovation, IBM

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    BTGS already riding wave of Web 2.0 innovation

    UCC tools for productivity and social networkingWikis for collective intelligenceBlogs facilitating dialogue and thought leadershipGlobal services supersite will use taxonomy and tagging as interface foundation21CN software developer kits are availableGreen, sustainability and collaboration campaigns

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    Web 2.0+The bar moves higher.

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    The bar moves higher: collaborative to semantic to WebOS

    From Collaborative Web (2.0) to Semantic Web (3.0) to WebOS (4.0)

    Source: Nova Spivak and Radar Networks

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    Product features

    Innovations Delight

    Cost of entry -- Must have

    Product Functional

    Customer Satisfied

    Product Dysfunctional

    Customer Dissatisfied

    Functional Arms race

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    Innovation in Web 2.0 hyper-speed

    PlatformParticipation

    Enterprise 2.0 is about using the best of whats been learned for maximum business benefit, including:

    Increasing innovation, knowledge-sharing, productivity and efficiency:Through use of social networks, wikis and blogs that support like-minded business interests, strategy and project

    development

    Increasing efficient collaboration:By using MeetingPlace, WebX, and LiveMeeting

    Expanding flexibility:As to how and where employees work and interact with each other, with vendors, partners and customers

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    Web 2.0+What should this mean for BT Global Services?

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    Innovator Looks forward

    Userneeds

    Follower

    Looks backward

    EarlierInnovators

    tactics

    How do we approach innovation?

    What does this mean for Global Services? Need to create structure that creates innovation

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    How should we approach further innovation?

    Most important drivers of innovation areculture and people

    Companies face significant challengeswith both

    Whether company has the right people toinnovate

    Whether top managers adequatelyprotect these people*

    Can BT answer yes to both questions?

    *How companies approach innovation: A McKinsey Global Survey The McKinsey Quarterly (2007)

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    Web 2.0 strategy

    Use social media to build brand of BT Global Services as an innovator

    Establishdigitalinnovationsmethodology

    Develop aninnovationportal

    Host dialoguesand buildcollaborativeknowledge onissues whereBTGS addsvalue and hascredibility

    Using Bigger

    Thinking as ananchor,expand into C-Suite dialogue

    Push discussions out beyond their point of origination

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    Web 2.0 multi-faceted digital strategy

    Establish digitalinnovationsmethodology

    Develop aninnovation portal

    Host dialoguesand buildcollaborative

    knowledge onissues whereBTGS adds valueand hascredibility

    Using BiggerThinking as ananchor, expandinto C-Suitedialogue

    1. Understand customer points of pain that could benefit from socialization2. Research and coordinate an agenda of possible programs, including new and

    competitive best ideas3. Pilot programs to develop them4. Launch programs on a broader basis within the existing communications strategies5. Monitor programs to manage dialog and gain understandings

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    Web 2.0 multi-faceted digital strategy

    1. Develop a portal that facilitates insightful discussions, shares best-practices andprovides a fertile ground for collaborative innovation amongst qualified members

    2. Use insights and information gathered from digital innovations methodology manageassociated risk and develop areas of excellence

    Establish digitalinnovationsmethodology

    Develop aninnovation portal

    Host dialoguesand buildcollaborative

    knowledge onissues whereBTGS adds valueand hascredibility

    Using BiggerThinking as ananchor, expandinto C-Suitedialogue

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    Web 2.0 multi-faceted digital strategy

    1. Use blog environments to draw insights from prospects, customers and internally2. Focus discussions on specific verticals and themes ( transformation , pain points,

    etc.)3. Develop a relationship plan for engaging external, influential bloggers

    Establish digitalinnovationsmethodology

    Develop aninnovation portal

    Host dialoguesand buildcollaborative

    knowledge onissues whereBTGS adds valueand hascredibility

    Using BiggerThinking as ananchor, expandinto C-Suitedialogue

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    Web 2.0 multi-faceted digital strategy

    1. Expand blog dialogue to include insight from BTGS c-suite and senior management

    Establish digitalinnovationsmethodology

    Develop aninnovation portal

    Host dialoguesand buildcollaborative

    knowledge onissues whereBTGS adds valueand hascredibility

    Using BiggerThinking as ananchor, expandinto C-Suitedialogue

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    Business innovation in Web 2.0 hyper-speed

    Enterprise 2.0 is about using Web 2.0 to improve businesses:

    Increasing innovation, knowledge-sharing, productivity and efficiency:Through use of social networks, wikis and blogs that support like-minded business interests, strategy and project development

    Increasing efficient collaboration:Through a new generation of collaboration and communucations tools including telepresence, collaborative workspaces, CRM systems

    Expanding flexibility:As to how and where employees work and interact with each other, with vendors, partners and customers browser, mobile, media devices

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    Summary and take-aways

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    Take-away: Web 2.0 is a platform for software

    Web 2.0 is a combination of technology innovation and social effects that have combined, making the Internet a ubiquitous computingplatform where:

    The platform can evolve and adapt quicklyThe individual can create as much as consume contentCommunities can share and build understandingsRich and ubiquitous media and communications creates deeper engagement and relationships

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    Take-away: Web 2.0 is creating unique business value

    Within the Web 2.0 revolution, organizations have unique power to create value through flexibility, new forms of collaboration,convenience and cost transformation:

    Use of open platforms, taxonomies, and distributed content management can empower fast, flexible responses to customer needs and marketsCosts can be re-engineered through automation, open publishing and self-serviceCollaborative intelligence self-generate knowledge bases that can organically serve known and future needsFormal social networks can replace matrix-overlays in corporation management

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    Take-away: Next wave will be exponentially more powerful

    The next wave of innovations will bring:

    The Data WebThe Semantic WebThe Ubiquitous WebThe Only WebThe Geo WebThe Identified Web

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    THANK YOU

    Why Internet Innovation Matters