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IBM Software Group

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Web 2.0: Let’s Talk About Business

Michael Karasick, PhDDirector, Lotus Development

IBM China Software Development LaboratoryBeijing, China

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Outline Web 2.0 According to Tim O'Reilly Engaging with Your Users Mashups Take Away's

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From Tim O’Reilly [2007]Web 2.0 is the business revolution in the computer industry caused by the move to the internet as platform, and an attempt to understand the rules for success on that new platform. Chief among those rules is this: Build applications that harness network effects to get better the more people use them. (This is what I've elsewhere called "harnessing collective intelligence.")

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1) What is Web 2.0 [From Tim O’Reilly 2007]

Technology: How successful businessmodels harness the Internet

Web 2.0 is the business revolution in the computer industry caused by the move to the internet as platform, and an attempt to understand the rules for success on that new platform. Chief among those rules is this: Build applications that harness network effects to get better the more people use them. (This is what I've elsewhere called "harnessing collective intelligence.")

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2) Engaging with your Users [From Tim O'Reilly 2007]

Don't treat software as an artifact, but as a process of engagement with your users. ("The perpetual beta")

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An Example: Lotus Symphony (not a perpetual beta…)

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An Example: Lotus Symphony (not a perpetual beta…)

Beta Every 8-12 WeeksCommunity WebsiteRespond to the community•Fix bugs that users care about•Prioritize Feature RequestsFill the Pipeline before GA•750K Downloads in 7 months

Frequency: When it “makes sense”●Every 8-12 Weeks

Engaging with your users:●Community Website

Respond to the community● 326,000 accesses and 3,800 posts● Fix “User-encountered” bugs first●Prioritize Feature Requests

Fill the Pipeline before GA●750K Downloads in 7 months

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Innovation Collaboration Networking

IBM Institute for Business Value, CEO Study, 2006

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Beta Every 8-12 WeeksCommunity WebsiteRespond to the community•Fix bugs that users care about•Prioritize Feature Requests

•75% of CEOS: Collaboration Important to Innovation•Top sources of innovation were employees, business partners and customers

Innovation Collaboration Networking

IBM Institute for Business Value, CEO Study, 2006

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Connect to undiscovered information & experts

Discover new relationships

Execute better business decisions

Why Should You Care?

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Network Between current and future business leaders

19% of the entire American workforce holding executive, administrative and managerial positions will retire in the next five years

Source: Beazley, et. al, Continuity Management, Mackay, Alan. “Mature Age Workers: Sustaining Out Future Labor Force.” An Ageless Workforce - Opportunit ies for Business' Symposium Conference Paper. August 27, 2003. www.ageing.health.gov.au/ofoa/wllplan/aawpapers.htm, Time to act quickly on aging.” The Japan Times Online. August 23, 2002 www.japantimes.co.jp/cgi-bin/getarticle.pl5?ed20020823a1.htm, A. Paulli, “Pension systems and gradual retirement in Italy”, September 2000, p.17

In the year 2000, there were more people receiving pensions in Italy than people working (22 versus 21 million)

Within the next seven years, 33 million people in Japan (26% of the population) will be over 65 years old

By 2016, the number of individuals aged 60-64 in Australia is expected to almost double

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IBM Software Development: Networking is an Imperative

Canada Toronto,Ottawa ,Montreal,

Victoria ,StainesHursley

Haifa ChinaBeijing

ShanghaiTokyo

Taiwan

Paris

Rochester, MNBoulder Denver

Lenexa,KATucsonPheonixAustinDallas

Portsmouth,NHLowel

Lexington,MAWestborough

Westford Cambridge

PoughkeepsieSomersNY, NY

Dublin

Boeblingen

India Bangalore

PuneHyderabadGurgaon

Cairo Rome

Gold Coast Sydney Canberra

FairfaxRaleigh

CharlotteLexington, KY

Atlanta Boca Raton Perth

Krakow

BeavertonSeattle

Menlo ParkBurlingameCupertino

San FranciscoSVL/San JoseAgoura HillsEl SegundoCosta MesaLas Vegas

S. Korea

Kuala Lampur

Time Zones Matter: Asynchronous Networking is about Knowledge capture and resue

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Internal Social Networking at IBM

Holds over 514,000 profiles and is the hub of user requests & all applications authentication for IBM.

Home of over 364,351 bookmarks with 917,562 tags. Serving a contributor population of 11,597, with enterprise search access to all IBMers.

Houses 361 public communities, 154 private communities with over 3,800 unique members.

Enables ad hoc collaboration with over 29,735 active activitiesfor 56,633 users.

Hosts 10,847 weblogs, 89,682 entries with 37,349 users and 18,758 tags. Used by IBMers as a source of idea and information sharing.

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External Social Networking at IBM

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One to Watch:Social Networking Meets Gaming ... Finally

•Sharing entities between users

•Buddies, Interests, Tagging, Subscriptions, Rating, ……

Sporecasts

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3) I Have Yet To Understand This... [From Tim O'Reilly 2007]

Don't think of applications that reside on either client or server, but build applications that reside in the space between devices. ("Software above the level of a single device")

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4) Make Money the “Right Way” [From Tim O'Reilly 2007]

Remember that in a network environment, open APIs and standard protocols win, but this doesn't mean that the idea of competitive advantage goes away. (Clayton Christensen: "The law of conservation of attractive profits")

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An Example from IBM Portfolio: Open Standards Rule

Social Networking

HTML/PHP

Documents

Feeds

Google Gadgets

Remote Portlets

REST Services

Clients

role-based

composite applications

in context

process-driven

IBM WebSphere Portal

Web

Produce and ConsumePortlets

Services

Web Content Mgmt

Web Services

Mobile Devices

Expeditor

REST

Value Of Being Open

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5) Mashups [From Tim O'Reilley 2007]

Open your data and services for re-use by others, and re-use the data and services of others whenever possible. ("Small pieces loosely joined")

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Mashup Market

20071 2008 2009 2010 2011 2012 20130

50100150200250300350400450500550600650700

Size of Mashup Market

EnterpriseExternal

$32M

$650M

Source: Forrester, “Global Enterprise Web 2.0 Market Forecast: 2007 To 2013”

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Efficiency is the Main Driver of Mashup Use in Enterprises

“What do you think will be the one most important driver behind this trend [of convergence of content management, collaboration, portal, and office productivity]?”

IT Consolidation and Cost ReductionBusiness Process Im,provementsUser RequirementsCompliance Requirements

Vendors Strategy and Product DirectionsOther

Source: February 2007 US And UK Information Workplace Online SurveySource: February 2007 US And UK Information Workplace Online Survey

(Survey of 260 IT decision-makers)

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Situational Applications, Spreadsheets, and Mashups Creating MashupsWidgets and Feeds (Data Service Providers)Mashup Platforms (IT Platform Vendors)Easy User Experience for Widget Creation (Tooling Vendors)

First Situational Application Construction in the Hands of the UserTransparent Migration of Web 2.0 Capabilities into IT platforms ~

Portals

Business ProcessesToday: Subject-Matter-Expert-Owned spreadsheetsComing: Subject-Matter-Owned mashups

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Challenge #1

Mashups today look like:We all understand “position”

Well-understood and agreed-to “business coordinates”VCARDVCALStock Ticker SymbolsBusiness Process Taxonomies ....

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Create a Date Using a Mashup (for a Telco)

I want to invite Jane to watch a movie

Put the pre-view video of the movie, together with message

Put some photos to recall the last party I went to with Jane…

Put a map to give instruction for where the theater is and how to

get there…

Share the movie by publishing to the social network, or send it

through IM…

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Create a Date Using a Mashup (for a Telco)

I want to invite Jane to watch a movie

Put the pre-view video of the movie, together with message

Put some photos to recall the last party I went to with Jane…

Put a map to give instruction for where the theater is and how to

get there…

Share the movie by publishing to the social network, or send it

through IM…

Create An Initial Business Contact Using a Mashup

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Challenge #2: Dealing With ComplexityWhat is the problem? Developers are not always IT experts Developers must manually search for the appropriate feeds/services Developers must manually link services/feeds into a mashupWire Mashups Together“Join” Feeds in order to create appropriate Mashup Arguments Organization Feed || Salary Feed

Thousands of available services/feeds No semantics about the available services/feeds No information about the services (e.g., reliability, popularity…)

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“Mashup Advisor” Design-time Assistance A repository of mashups Relevant suggestions

What outputs can be generatedThe best plans to generate those outputs

System componentsOutput ranker (popularity-based ranking)Planner, which uses (uses semantic similarity and popularity).

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Challenge #3: Standards and Security ISV's add value by packaging applications as mashups

For Which Platform?Which Widget Specification?

Security models

Are REST Protocols Industrial enough?

Remember the Portal WarsPortal Platforms have consolidatedFocus is on applications, not the platform

For Mashups: Applications == “Data Services/Feeds and Widgets”

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6) “Data is the Intel Inside” [Tim O'Reilly, 2007]

Chief among the future sources of lock in and competitive advantage will be data, whether through increasing returns from user-generated data:eBay, Amazon reviews, audio, video, email/IM/phone traffic data, as soon as someone who owns a lot of that data figures out that's how to use it to enable social networking apps, GPS and other location data;through owning a namespace (Gracenote/CDDB, Network Solutions); or through proprietary file formats (Microsoft Office, iTunes). ("Data is the Intel Inside")

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Some Take-aways Web 2.0 is Really About PeopleSocial Networking and Comunity-Based Development Foster Rapid Innovation

Mashups “Democratize” the process of creating situational applications

The Mashup Market will consolidateTechnology and Chaos followed byFragmentation followed byConsolidation

Forrester: This will take 5 yearsOur Challenge is to get there sooner

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Questions?