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Company Confidential
Entrepreneurship & Social Media
Salim Ismail
Head of Brickhouse, Yahoo!
Copyright 2007Slide 2
Background
1996: First early-stage company2001: First startup (of my own)2002: 2nd startup2005: 3rd startup2006: 4th & 5th startups
2007: Joined Yahoo to build/run Brickhouse
1 year, 3000 ideas and 4 products later….
2008: Back to Startup land
Copyright 2007Slide 3
Cork – 1996-2008
Copyright 2007Slide 4
Cork – 1996-2008
Copyright 2007Slide 5
Overview
Internet Infrastructure- Context for where we are today
- technology underpinning- product roadmap
Data on the internetHidden Web
Event-Driven
Business ModelsMap of theinternet
Social Media
Web 2.0
Copyright 2007Slide 6
What is Web 2.0
According to Tim O’Reilly….
Fundamentally: user participation (UGC) + XML
Copyright 2007Slide 7
Other Web 2.0 Descriptors
Services (as opposed to data)
UGC (User Generated Content).. e.g. blogs
Manipulate and ‘use’ data, not just presentation
Low latency (real time)
Data aggregation
Social Networking
Examples– Flickr, Buzznet, Dabble– Wordpress, Typepad, Drupal– Eventful, Upcoming, Edgeio– YouTube, MySpace, FaceBook
Web 2.0:Consumer to
Consumer
Copyright 2007Slide 8
Web 2.0 Tag Cloud
Copyright 2007Slide 9
Web 2.0 – Was led by Blogs
• Last few years - blogs have exploded in use– With the rise of the web in the 90s, we had millions of readers, but
relatively few publishers (e.g. CNN, CNet)– Now, due to the ease of publishing with blogs and other tools, we
now also have millions of publishers• 1m in 01/04, 10m in 01/05, 50m in 2006 and over 100m today (that’s
just blogs)
• A Syndication ecosystem has evolved– Ping servers, ping aggregators and blogging platforms all
collaborate to disseminate RSS and Atom updates
• Blogs now being ‘overtaken’– Top Bloggers: stratifying into self-publishing journalists/pundits– MySpace, FaceBook, Twitter, Bebo et al covering the rest– Has led to web 2.0 and social media
Copyright 2007Slide 10
Since then… a few companies are betting on it
Copyright 2007Slide 11
What makes this all tick?
Syndication
XML
Low Latency
Great UX
Copyright 2007Slide 12
Overview
Internet Infrastructure- Context for where we are today
- technology underpinning- product roadmap
Data on the internet
Business Models
Copyright 2007Slide 13
Web 2.0 = Internet 3.0™
We are increasingly watching…
80s Email
90s Web Browser
00s RSS Aggregator
Messaging
RequestResponse
PublishSubscribe
What’s youremail address?
Sending
What’s yourWebsite?
Searching
What’s yourFeed/Blog?
Watching
Information Exchange Patterns Evolution of the Internet
Copyright 2007Slide 14
Web 2.0 = Internet 3.0
Web 2.0 = Internet 3.0
• Structured Data (XML) Syndication is starting to take hold
• Event-based (Publish/Subscribe)
• Participatory UX = consumer to consumer– Latest wave in internet companies (MS, FB, YT…)
Copyright 2007Slide 15
Internet 3.0 – The Nervous System
The internet is evolving into a complex organism
Search is the memory
Web 2.0 provides the basis for the nervous system
The key question is:
“ Whenever…”
Copyright 2007Slide 16
Now that we understand internet infrastructure...
Internet Infrastructure- Context for where we are today
- technology underpinning- product roadmap
Data on the internet
Business Models
Definition:
Rows & Columns
e.g. Word vs. XML authoring
Copyright 2007Slide 17
Example: Blogs
• RSS is really just a wrapper for text plus metadata plus a syndication mechanism – Atom is another, more evolved syndication spec
A typical blog
Post contains an
opinion or
specific
Information
(in text)
Copyright 2007Slide 18
The Internet is largely ‘hidden’ data
Unstructured information (Visible Web)– HTML and text oriented
– Search-engine crawlable
– Difficult to analyze
Structured information (Hidden Web)– XML, structured information (auctions, tickets, cars, jobs)
– Lives mostly in walled gardens (eBay, Monster…)
– Not easily available to search engines
– Much of that can be syndicated
The hidden Web is 400-500x largerthan the visible
one
VISIBLE WEB
HIDDEN WEB
Source: Crawling the Hidden WebSriram Raghavan,
Hector Garcia-Molina
Copyright 2007Slide 19
Types of Structured Content
Web 1.0
AutotradereBay
MonsterCraigslist
Lexis NexisOnline Media
Web 2.0
WordpressTripAdvisor
Dabble“Fire Eagle”
SkyDeckSafariUZillowTripit
Zimbra......
Copyright 2007Slide 20
The old world (hidden web)
BeforeUser fills form site stores data users search site
craigslist
Copyright 2007Slide 21
Create/Publish/Discover Syndicate/Aggregate Read/Consume/Process
The new world
AfterUser fills form (publish) data is syndicated users get updates
Copyright 2007Slide 22
Create/Publish/Discover Syndicate/Aggregate Read/Consume/Process
Web 2.0Web 1.0
Aggregators
Blogs
RSS ReadersRSS Feeds
Closed Syndication or Branding
Browsers
Web PagesSearch Engines
Walled Garden
DBs
Internet Information Flows
Open Syndicationor Branding
Pings
Copyright 2007Slide 23
Create/Publish/Discover Syndicate/Aggregate Read/Consume/Process
Web 2.0Web 1.0
Blogs
AggregatorsRSS Feeds
Browsers
Web PagesSearch Engines
Walled Gardens
Internet Information Flows
Pings
Open Syndicationor Branding
craigslist
Closed Syndication or Branding
Copyright 2007Slide 24
Recent Products
Who do I know (Social Networks):
Flickr, Upcoming, FaceBook, MySpace, Bebo
What am I doing (status updaters):
Twitter, Pownce, Skype, FB
Where am I (location brokers)
Fire Eagle, Plazes,
Loopt
Gov’t Data
Enterprise Data
E-commerceTransactional data(reviews/ratings)(offers for sale)
(events)
Self-publishing(where am I)
(what am I doing)
SN Profiles
Blogs(about me)
HTML
Create/Publish/Discover Syndicate/Aggregate Read/Consume/Process
Web 2.0Web 1.0
Aggregators
Blogs
RSS ReadersRSS Feeds
Closed Syndication or Branding
Browsers
Web Pages Search Engines
Walled Garden
DBs
Open Syndicationor Branding
Pings
Social Networks MiniFeeds
Closed Syndicationor Branding
Social Networks(email)
Copyright 2007Slide 25
Create/Publish/Discover Syndicate/Aggregate Read/Consume/Process
Web 2.0Web 1.0
Aggregators
Blogs
RSS ReadersRSS Feeds
Closed Syndication or Branding
Browsers
Web Pages Search Engines
Walled Garden
DBs
Internet Information Flows
Open Syndicationor Branding
Pings
Social Networks MiniFeeds
Closed Syndicationor Branding
Social Networks(email)
craigslist
Copyright 2007Slide 26
Types of Structured Content
Gov’t Data
Enterprise Data
E-commerceTransactional data(reviews/ratings)(offers for sale)
(events)
Self-publishing(where am I)
(what am I doing)
SN Profiles
Blogs(about me)
HTML
Create/Publish/Discover Syndicate/Aggregate Read/Consume/Process
Web 2.0Web 1.0
Aggregators
Blogs
RSS ReadersRSS Feeds
Closed Syndication or Branding
Browsers
Web Pages Search Engines
Walled Garden
DBs
Open Syndicationor Branding
Pings
Social Networks MiniFeeds
Closed Syndicationor Branding
Social Networks(email)
80sEmail
90s
Web Browser
00s
RSS Aggregator
Messaging
RequestResponse
PublishSubscribe
What’s youremail address?
Sending
What’s yourWebsite?
Searching
What’s yourFeed/Blog?
Watching
Information Exchange Patterns
Evolution of the Internet
Copyright 2007Slide 27
Business Models – Internet 3.0
Publish(syndicate)
BlogsPhotosVideo
CGM
Subscribe
RSS readersCell phones
Web
Clients
Aggregate
Search EnginesSocial NetworksVertical Search
Tagging
Aggregators
Copyright 2007Slide 28
Types of Structured Content
Gov’t Data
Enterprise Data
E-commerceTransactional data(reviews/ratings)(offers for sale)
(events)
Self-publishing(where am I)
(what am I doing)
SN Profiles
Blogs(about me)
HTML
Create/Publish/Discover Syndicate/Aggregate Read/Consume/Process
Web 2.0Web 1.0
Aggregators
Blogs
RSS ReadersRSS Feeds
Closed Syndication or Branding
Browsers
Web Pages Search Engines
Walled Garden
DBs
Open Syndicationor Branding
Pings
Social Networks MiniFeeds
Closed Syndicationor Branding
Social Networks(email)
Copyright 2007Slide 29
Business Models
Users/Advertising
Subscriptions
Data Mining
Copyright 2007Slide 30
Internet Entrepreneurship
• It’s a numbers game– “You have to do everything right, and THEN get very lucky”
• Market timing– Too early is worse than too late
• Team, Team, Team
• Focus, then Execute
• Never give up– stick around long enough…
Copyright 2007Slide 31
Dynamics of starting a company today
- Low barrier to entry
- Virality is key
- Lots of competition
- Focus on service rather than data
Copyright 2007Slide 32
Dynamics of Revenue Streams
Advertising– User base (you need a lot of them)– Behavioural targeting– Social profiling
Data Mining– Aggregate information on large sets of users– E.g. Rapleaf, Spock, Wink, Google, Fire Eagle
Subscriptions– Typically for enterprise or prosumer use
Copyright 2007Slide 33
Tensions to be navigated
• How dodgy are you willing/able to be… ?– Customer acquisition & monetization– Spam factor
• When to take in revenue
• When to launch– Don’t be a perfectionisht
Copyright 2007Slide 34
Thoughts on Social Media
• Computers are binary
• 80/20 rule
• Leverage with other types of information
Copyright 2007Slide 35
Types of Structured Content
Gov’t Data
Enterprise Data
E-commerceTransactional data(reviews/ratings)(offers for sale)
(events)
Self-publishing(where am I)
(what am I doing)
SN Profiles
Blogs(about me)
HTML
Create/Publish/Discover Syndicate/Aggregate Read/Consume/Process
Web 2.0Web 1.0
Aggregators
Blogs
RSS ReadersRSS Feeds
Closed Syndication or Branding
Browsers
Web Pages Search Engines
Walled Garden
DBs
Open Syndicationor Branding
Pings
Social Networks MiniFeeds
Closed Syndicationor Branding
Social Networks(email)
Copyright 2007Slide 36
Key Drivers of Value
Syndication
XML
Low Latency
Great UX
Gov’t Data
Enterprise Data
E-commerceTransactional data(reviews/ratings)(offers for sale)
(events)
Self-publishing(where am I)
(what am I doing)
SN Profiles
Blogs(about me)
HTML
Copyright 2007Slide 37
Back to blogs
• RSS is really just a wrapper for text plus metadata plus a syndication mechanism – Atom is another, more evolved syndication spec
A typical blogpost today contains anopinion or specificInformation(in text)
Copyright 2007Slide 38
There’s over a trillion XML documents
Unstructured information (Visible Web)– HTML and text oriented
– Search-engine crawlable
– Difficult to analyze
Structured information (Hidden Web)– XML, structured information (auctions, tickets, cars, jobs)
– Lives mostly in walled gardens (eBay, Monster…)
– Not easily available to search engines
– Much of that can be syndicated
The hidden Web is 400-500x largerthan the visible
one
VISIBLE WEB
HIDDEN WEB
Source: Crawling the Hidden WebSriram Raghavan,
Hector Garcia-Molina
Copyright 2007Slide 39
Steps for building a business
• Pick a domain you’re passionate about• Travel, sports, entertainment, business….
• Pick a type of data that can to be leveraged on the internet
• Location, social information, structured data, live info
• Select one of the drivers of value creation
• Position yourself for risk
• Jump in with both feet
Gov’t Data
Enterprise Data
E-commerceTransactional data(reviews/ratings)(offers for sale)
(events)
Self-publishing(where am I)
(what am I doing)
SN Profiles
Blogs(about me)
HTML
Syndication
XML
Low Latency
Great UX
Copyright 2007Slide 40
And if it doesn’t work….
Pick yourself up..
Dust yourself off…
Get a new T-shirt…
Start again…
Copyright 2007Slide 41
Create/Publish/Discover Syndicate/Aggregate Read/Consume/Process
Web 2.0Web 1.0
Blogs
AggregatorsRSS Feeds
Browsers
Web PagesSearch Engines
Walled Gardens
Internet Information Flows
Closed Syndication or Branding
Pings
Open Syndicationor Branding
craigslist