the business of web 2.0

1Gavin Heaton

www.servantofchaos.com

Gavin Heaton // www.servantofchaos.com // [email protected]

BusinessThe

of Web 2.0

The new B2C – Brand-to-Community –strategy, tactics and learnings from the Age

of Conversation

2Gavin Heaton


3Gavin Heaton


About MeAbout Me

Web: www.servantofchaos.com

Twitter: servantofchaos

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Web 2.0 // Social Media

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Hands up if you have heard of …

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The Long Tail …

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Open Source …

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Conversation …

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This is Web 2.0

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Flickr

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MySpace

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YouTube

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Facebook

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Twitter

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Digg

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I’m guessing that makes you one of Australia’s 11 million Internet subscribers

Facts courtesy of Katie Chatfield – http://www.getshouty.com

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67% of whom have broadband

http://www.internetworldstats.com/stats.htm

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Joost

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RSS

This is as technical as I want to get

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RSS Explained

http://www.commoncraft.com/rss_plain_english

So, click this to see Lee explain RSS, simply

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Weblog

I use Typepad, but there are plenty of blogging platforms available. Some are even FREE!

http://www.typepad.com

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Advertising effectiveness is increasingly under question

http://www.jaffejuice.com

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Brands and corporations are under scrutiny

http://www.buzzmachine.com/?tag=dell

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Since “Dell Hell” negative publicity less than halved. How?

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Cluetrain

The Cluetrain explained the shifting power between people and brands

http://www.cluetrain.com

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Podcasts

Now anyone can podcast to the world.

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Wikipedia

Or contribute to global knowledge

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As Ed Tarwinski says, this is the “wonderful world of mobile internet”

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Ning

We can all build a community

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Amazon

And be rewarded with reputation, ratings and even affiliate sales

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eBay

The self-organising community aggregates its wealth while building value of your network

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This is Web 2.0, too

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Forget the hype, this is business …

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Business-to-Business

CustomSolutions

Enterprise SME Consumer

Valu

e an

d Ef

fect

iven

ess

Complexity Volume

In B2B the value of what you have to offer has few customers BUT they are willing to pay a premium.

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Business-to-Consumer

Mass prod / volume


Complexity Volume

Valu

e an

d Ef

fect

iven

ess

The value of what you have to offer has many customers BUT the margins are incremental .

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Enterprise 1.0 Sales

CustomSolutions

Mass prod / volume


Complexity Volume

Valu

e an

d Ef

fect

iven

ess

Enterprise 1.0 firms are designed to service these two markets

but they leave a gap in between.

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Enter Web 2.0

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Convergence is Not About Technology

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The Convergence of Markets

B2B B2C


Complexity Volume

Valu

e an

d Ef

fect

iven

ess

Knowledge Workers are no longer happy to leave their rich

web experiences at home.

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The Convergence of Markets

B2B B2C


Complexity Volume

Valu

e an

d Ef

fect

iven

ess

The NEW B2C …Brand-to-Community extends

from the consumer space through the enterprise

Br2Comm

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It’s a convergence of thinking …

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… and doing

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It represents a fundamental shift in the nature of value

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It’s no longer about what you make

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… but what you know

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Tim O’Reilly’s Web 2.0

Web2.0Sharing

Openness

Blogs

Wikis

UGC

Social Networks

http://www.oreilly.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html

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The Machine is Us/ing Us

http://www.youtube.com/watch?v=6gmP4nk0EOE

Understand Web 2.0 in four minutes thanks to Prof Wesch

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Web as a Platform

Let me tell you a story …

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It Enables

It started with a question …

http://www.drewsmarketingminute.com

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Harnessing Collective Intelligence

What did we know?

http://www.ageofconversation.com

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And the Person of the Year

Crowdsourcing …

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Data is the Next Intel Inside

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Continuous Beta

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Open Collaboration

103 authors across the globe

http://technomarketer.typepad.com

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Lightweight Programming

Usable technology does the hard work

http://pipes.yahoo.com

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Software Everywhere

From idea to print in 3 months

http://lulu.com/ageofconversation

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Software Everywhere

Hard, soft and eBooks

http://collaborativeideation.com/

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Rich Experiences

Technology enabled the project and the project spawned the connections

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http://mindblob.typepad.com

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And We Raised Money

Raised $10,000 for Variety in the first 60 days

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Influencers and Connectors

It’s about reputation, authority and participation

http://servantofchaos.typepad.com/soc/2007/10/the-strength-of.html

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Influencers and Connectors

Which gives your opinion context, weight and credibility

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Influence Ripples

And ripples across the internet

http://darmano.typepad.com

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Measurement

But can you measure it?

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Measurement

Analytics + Page Rank + Feeds + Time with Brand + Volume of Comments

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Getting Started

It’s a conversation that you start by LISTENING

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Let’s Try …

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Licensing/Attributions

Flickr Images:http://www.flickr.com/photos/chicadecasa/http://www.flickr.com/photos/enviale/http://www.flickr.com/photos/ryanmft/http://www.flickr.com/photos/redvers/http://www.flickr.com/photos/articnomad/http://www.flickr.com/photos/modadimagno/http://www.flickr.com/photos/st3f4n/http://www.flickr.com/photos/jluna/http://www.flickr.com/photos/calanan/http://www.flickr.com/photos/austinellison/http://www.flickr.com/photos/spittal/http://www.flickr.com/photos/jepoirrier/http://www.flickr.com/photos/edtarwinski/http://www.flickr.com/photos/thomashawk/http://www.flickr.com/photos/jonnybaker/

Ideas:Tim O’Reilly: http://www.oreilly.comDavid Armano: http://darmano.typepad.comDrew McLellan: http://www.drewsmarketingminute.comSean Howard: http://www.craphammer.caGeoffrey Moore: http://geoffmoore.blogs.comJoseph Jaffe: http://www.jaffejuice.comKatie Chatfield: http://www.getshouty.com

See my blogroll @ servantofchaos.com

Get this presentation:www.slideshare.net/servantofchaos

the business of web 2.0

Business

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