Beyond Web 2.

0
Why internet innovation matters

Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Discussion points
1) Web 2.0 A platform for participation. 2) Web 2.0 Already 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

Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Web 2.0
A platform for participation.

Beyond Web 2.0 - Why internet innovation matters

5/30/2012

What is Web 2.0?

Web 2.0 is the business revolution caused by the move to the Internet as platform.

-Tim OReilly, 2004

Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Web 1.0 - the operating system as platform

Beyond Web 2.0 - Why internet innovation matters

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Web 2.0 - the Internet as platform

Beyond Web 2.0 - Why internet innovation matters

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Web 2.0 - the Internet as platform

Web 2.0 is participationIt attempts to harness the collective intelligence of Web usersthe sites experiencing the fastest growth today are the ones that understand their audiences need for expression, stimulating others to do the same.

Beyond Web 2.0 - Why internet innovation matters

5/30/2012

The network effect

Open standards

Open architecture

Beyond Web 2.0 - Why internet innovation matters

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The network effect

Social networking

Read & write

Open standards

Open architecture

Bandwidth & distribution

Beyond Web 2.0 - Why internet innovation matters

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The network effect

Social networking

Read & write

People can contribute and react to the contributions of Open others; creating Open a network effect: architecture people &Bandwidth the more standards distribution contribute to a site, the more powerful the site becomes.

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Beyond Web 2.0 - Why internet innovation matters

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Web 2.0
Already in use.

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Beyond Web 2.0 - Why internet innovation matters

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A platform for open standards

Google: Makes their application programming interfaces (API) public Salesforce.com: Their APIs are public so developers will build extensions IP Telephony: Has become the future standard of choice

www.housingmaps.com combines data from Craigslist.com and Google Maps

Salesforce.com Skype console

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Beyond Web 2.0 - Why internet innovation matters

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A platform to improve customer service at lower cost

Customers often prefer self-service as the primary way they interact with companies Self-service lowers cost, increases revenue and boost customer loyalty* Customers prefer Web applications that are easy to use, responsive, and combine rich media with improved visualization techniques**

*Implementing Effective Self-Service to Improve the Customer Experience and Drive Profitability Yankee Group Research, October 2006 **Developing Enterprise Web 2.0 Applications Forrester Research, July 26, 2007

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Beyond Web 2.0 - Why internet innovation matters

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A platform for disruption

Googles Android mobile software is the first complete, free, opensource, mobile platform Google released the SDK online and will award $10M to developers who build great applications

Potential to disrupt mobile business model

Watch Googles Android demo video

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Beyond Web 2.0 - Why internet innovation matters

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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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Beyond Web 2.0 - Why internet innovation matters

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A platform for participation

Yesterday it was one-to-many, today its many-to-many: Knowledge management and Wikipedia Blogs Collaborative categorizing Product and service reviews What are the implications? Rise of citizen influencers is eroding big media Empowerment of niche interests and communities Consumer views about products, services and brands take center stage Lower barriers to entry

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

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 rewards those 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) 17 Beyond Web 2.0 - Why internet innovation matters 5/30/2012

Participation in social networks with user-generated content

Social networks are communities that share interests and activities: They interact via chat, instant messaging, email, voice, file-sharing, blogs, discussion groups and forums the sum of which creates value Brands have entered into dialogue with communities and customers: Brands to be more credible Brands now understand customer needs and issues on a deeper level increasing customer satisfaction

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Participation in with user-generated content attracts high engagement

comScore analyzed engagement levels among visitors at top five UK UGC sites and 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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Beyond Web 2.0 - Why internet innovation matters

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User-generated content participants have different qualities

Five groups engage with UGC only four 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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Beyond Web 2.0 - Why internet innovation matters

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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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Beyond Web 2.0 - Why internet innovation matters

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Web 2.0+
Innovations create unique business value

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Beyond Web 2.0 - Why internet innovation matters

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Web 2.0 creates unique business value

eBay, Amazon, iTunes, Craigslist and Google are already the first wave of Web 2.0 Open programming interfaces allow outside extensions User generated content builds competitive advantage after the tipping point Collaborative intelligence New channels of distribution invented

Business strategies have emerged that use these principles Platform enables software as a service Participation engages customers and improves quality of offering

Amazon is an example of a fully distributed Web 2.0 company

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Platform: offers white labeled e-commerce and Web services Platform: new channels of distribution like downloads, e-books, JIT manufacturing, affiliates Participation: user opinions are integral to offering and create credibility Participation: collaborative intelligence automates and evolves recommendations
5/30/2012

Beyond Web 2.0 - Why internet innovation matters

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 to qualify search results Helps determines order of search results

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Beyond Web 2.0 - Why internet innovation matters

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Using blogs to shorten sales cycles

IBM developerWorks blog Platform for dialogue Technical buyers need conversations instead of getting info through account 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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Beyond Web 2.0 - Why internet innovation matters

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Low-cost service and self-service

Low-cost service: Palm Treo discussion forums are form of low-cost service Network effect increase value of the forum Self-service: Salesforce.com has more than 600K subscribers They continue to build and grow sales management offerings pushing bar higher for those not using Salesforce or similar service

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

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

AOL Instant Messenger

Customer Service IM used by Fidelity Investments

Nortel Multimedia Communication Server 5/30/2012

Microsoft Unified Communications Client API

Cisco Unified Communications

Skype Console

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Beyond Web 2.0 - Why internet innovation matters

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

Widgets distribute functionality and content to desktop or personal pages

Widgets are made available to users to help with visitation and loyalty Yahoo!, Microsoft and Apple offer similar applications Small, light software programs weather, games, shopping, sport scores and stock tickers, etc.

28 Beyond make a big splash on the Net USA Today (November, 2007) 5/30/2012 Source: Widgets Web 2.0 - Why internet innovation matters

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 meetings because 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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Beyond Web 2.0 - Why internet innovation matters

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BTGS already riding wave of Web 2.0 innovation

UCC tools for productivity and social networking Wikis for collective intelligence Blogs facilitating dialogue and thought leadership Global services supersite will use taxonomy and tagging as interface foundation 21CN software developer kits are available Green, sustainability and collaboration campaigns

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Beyond Web 2.0 - Why internet innovation matters

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Web 2.0+ The bar moves higher.

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Beyond Web 2.0 - Why internet innovation matters

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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)

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012 Source: Nova Spivak and Radar Networks

Product features

Customer Satisfied

Innovations Delight Functional Arms race

Product Dysfunctional

Product Functional

Cost of entry -- Must have

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Customer Dissatisfied

Innovation in Web 2.0 hyper-speed

Platform Participation 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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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

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

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Beyond Web 2.0 - Why internet innovation matters

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How do we approach innovation?

Innovator
Looks forward

User needs

Earlier Innovators tactics Looks backward

Follower

What does this mean for Global Services? Need to create structure that creates innovation
36 Beyond Web 2.0 - Why internet innovation matters 5/30/2012

How should we approach further innovation?

Most important drivers of innovation are culture and people Companies face significant challenges with both Whether company has the right people to innovate Whether top managers adequately protect these people* Can BT answer yes to both questions?

37 *How companies approach innovation: A McKinsey Global Survey The McKinsey Quarterly (2007) Beyond Web 2.0 - Why internet innovation matters 5/30/2012

Web 2.0 strategy

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

Host dialogues and build collaborative knowledge on issues where BTGS adds value and has credibility

Establish digital innovations methodology

Develop an innovation portal

Using Bigger Thinking as an anchor, expand into CSuite dialogue

Push discussions out beyond their point of origination

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

In all progammes push innovations out beyond the browser

1. 2. 3. 4. 5. 6. 7.

Mobile Widget Virtual worlds Integration with real world events Installations Search engine optimization Online marketing

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Beyond Web 2.0 - Why internet innovation matters

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Web 2.0 multi-faceted digital strategy

1. Understand customer points of pain that could benefit from socialization 2. Research and coordinate an agenda of possible programs, including new and competitive best ideas 3. Pilot programs to develop them 4. Launch programs on a broader basis within the existing communications strategies 5. Monitor programs to manage dialog and gain understandings

Establish digital innovations methodology

Develop an innovation portal

Host dialogues and build collaborative knowledge on issues where BTGS adds value and has credibility

Using Bigger Thinking as an anchor, expand into C-Suite dialogue

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Web 2.0 multi-faceted digital strategy

1. Develop a portal that facilitates insightful discussions, shares best-practices and provides a fertile ground for collaborative innovation amongst qualified members 2. Use insights and information gathered from digital innovations methodology manage associated risk and develop areas of excellence

Establish digital innovations methodology

Develop an innovation portal

Host dialogues and build collaborative knowledge on issues where BTGS adds value and has credibility

Using Bigger Thinking as an anchor, expand into C-Suite dialogue

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Web 2.0 multi-faceted digital strategy

1. Use blog environments to draw insights from prospects, customers and internally 2. Focus discussions on specific verticals and themes (transformation, pain points, etc.) 3. Develop a relationship plan for engaging external, influential bloggers

Establish digital innovations methodology

Develop an innovation portal

Host dialogues and build collaborative knowledge on issues where BTGS adds value and has credibility

Using Bigger Thinking as an anchor, expand into C-Suite dialogue

42

Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Web 2.0 multi-faceted digital strategy

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

Establish digital innovations methodology

Develop an innovation portal

Host dialogues and build collaborative knowledge on issues where BTGS adds value and has credibility

Using Bigger Thinking as an anchor, expand into C-Suite dialogue

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

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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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Summary and take-aways

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Beyond Web 2.0 - Why internet innovation matters

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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 computing platform where: The platform can evolve and adapt quickly The individual can create as much as consume content Communities can share and build understandings Rich and ubiquitous media and communications creates deeper engagement and relationships

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Beyond Web 2.0 - Why internet innovation matters

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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 markets Costs can be re-engineered through automation, open publishing and self-service Collaborative intelligence self-generate knowledge bases that can organically serve known and future needs Formal social networks can replace matrix-overlays in corporation management

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Beyond Web 2.0 - Why internet innovation matters

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Take-away: Next wave will be exponentially more powerful

The next wave of innovations will bring: The Data Web The Semantic Web The Ubiquitous Web The Only Web The Geo Web The Identified Web

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012

Why Internet Innovation Matters

THANK YOU

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Beyond Web 2.0 - Why internet innovation matters

5/30/2012