GIBS MBA USA West Coast - Web 2.0

Internet and Media

“Management models of the future will need…to contend with how to

orchestrate a complex and changing network of individuals within and

outside the boundaries the previously defined as “the

enterprise” IBM, Future of the IBM, Future of the Enterprise white paperEnterprise white paper

AgendaAgenda

Background to Web 1.0 and 2.0 Research Questions Companies Visited Learning's Application to South Africa

Web 1.0 and 2.0

History of the InternetHistory of the Internet

DARPA: fail-safe communications network TCP/IP 1969 to 1993: research, “RFCs”

Compare with OSI standardisation process 1993 to now: commercial Online: BBS, CompuServe, AOL predate

Humans want to communicate

Web 1.0 (1994 to 2001)Web 1.0 (1994 to 2001)

Web browser/server Netscape, Internet Explorer Windows 95

Generation-Y Theory Gold rush to pyrites (fools’ gold) Dot-com crash

Legacies of Web 1.0Legacies of Web 1.0

Sales and Marketing adoption of Web Operational efficiencies driven by cost cutting Flattening of the world, supply chains Bandwidth (wired, wireless) investment

Ref: Thomas L. Friedman, The World is Flat

Keystones of Web 2.0Keystones of Web 2.0

The Cluetrain Manifesto http://www.cluetrain.com/

The Long Tail http://www.thelongtail.com/

Read/Write Web http://www.oreilly.com/catalog/wemedia/book/

ch02.pdf Folksonomy

http://en.wikipedia.org/wiki/Folksonomy

Web 2.0 FoundationsWeb 2.0 Foundations

Write and read Rewrite, write and read (mashup) Authentic voice, augmented conversation Weblogging aka Blogging aka Blogs Podcasts/Vidcasts

"...the lack of a crisp definition is a feature, not a bug. And as the world shifts from the limited variety of bottlenecked distribution to the infinite variety of open distribution, there will be more examples of phenomena that are hard to define but are nevertheless real and true. The future is increasingly heterogeneous, not homogeneous.One size doesn't fit all."

Chris Anderson, “Web 2.0 and the Long Tail, Part 2”The Long Tail

Web 2.0 Competencies (O’Reilly)Web 2.0 Competencies (O’Reilly)

Services, not packaged software, with cost-effective scalability

Control over unique, hard-to-recreate data sources that get richer as more people use them

Trusting users as co-developers Harnessing collective intelligence Leveraging the long tail through customer self-

service Software above the level of a single device Lightweight user interfaces, development models,

and business models

What the Web is NOT!What the Web is NOT!

Research QuestionsResearch Questions

Primary Drivers for Success in Web 2.0 environment?

What is web 3.0? Learning's for South Africa

Companies VisitedCompanies Visited

LearningsLearnings

MarketingMarketing

Spread the word Viral Marketing Use of PR Companies

Get customer feedback regularly closed loop system

Philosophy Product leadership > Audience > Monitise Pick your battles They don't advertise - put money in the product Build something that people care about - don't put lipstick on a

pig Guy Kawasaki - make meaning

Voyeurism/ Exhibitionist - Real estate porn

RevenueRevenue

Two primary models Focus on advertising Subscription

Issues Still a focus on growth rather than revenue Still not breaking even

Need to keep the people coming back Need to have a focus on the community aspect Bubble 2.0? Alternative Models

Sms Selling data

FundingFunding

VC bigger money- longer view

Angel small amounts/ quick rampup

have good networks Loads of Cash available bootstrapping mostly to cover salaries You don't sell your company - you get bought -

build a great company

EntrepreneurshipEntrepreneurship

Cat furniture - outsourced his design US large market can sell anything

Organizational DesignOrganizational Design

accountable for their own delivery create own work environment community

mentorship Individual identity

within the rules united/ freedom freedom to fail

fail often in order to succeed self starters who can sort out problems them selves takes a village to raise a child build relationship before you need them knowledge sharing evangelise their company

Web 3.0Web 3.0

Realtime collaboration/communication share and push

Company Visit SummaryCompany Visit Summary

Marketing Revenue Funding Entrep Profitability World Content

Zillow viral / PR advertising VC high not yet at BEP cyber user

generated

PB Wiki viral subscription angel / VC high not yet at BEP cyber user

generated

MS

IFTF conferences subscription donor low not for profit real create & forecast

Google viral advertising VC high very profitable cyber user

generated

Bloomberg advertise / PR subscription bootstrap medium very

profitable real scrape & create

knowledge workers & knowledge sharing; individual freedom; culture: employment &

accountability; focus on work environment; diverse teams; importance of art;

freedom to fail; community & mentorship; self starters; company evangelisers

OD

Setting the Stage: USA vs. South Setting the Stage: USA vs. South AfricaAfrica Country

Economy Education and Literacy Employment infrastructure

Internet Broadband Access Mobile

Bringing it homeBringing it home

Need a web 2.0 cluster in SA Build a web 2.0 mentorship network Need a more acceptable web 2.0 start-up funding

environment – Angel and VC Continue to develop applications for Mobile NET

- Mass market will come via mobile in Africa Opportunity to take advantage of US internet

population Move Fast - Rapid experimentation Be clear on the revenue model Still a load of cash to be made in web 2.0