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ohra | India Head, Regalix | February 9, 2008 3 34981 | Bangalore

THE NEXT GENERATION CUSTOMER ACQUISITION ENGINE

The next-generation online customer acquisition engine

Before the Web…
 … were competing computing technologies  … some competing OS  And then emerged Windows as a major Platform… … with packaged software applications … with tightly coupled APIs … and frequent releases

The next-generation online customer acquisition engine

Then came the Web…
 … with Client-Server technology  … and, hyper-linking  This saw the emergence of sites such as… … Rediff, Geocities, Britannica Online, Directories (Yahoo)  And this was … One way web or read only web … Primitive interfaces (Netscape vs. IE) … Taxonomy (Yahoo directory) … Pull medium (sites needed to have stickiness to get users back)
The next-generation online customer acquisition engine

Then happened Web2.0 …
 Blogger (read + write, comment)  Wikipedia (read + write, review, debate)  Flickr (view, upload, tag)  No directories: Tag content the way you want … … Not taxonomy but “folksonomy” … view what others have liked … recommend to others, and view others’ recommendations  A read-write, participatory web
The next-generation online customer acquisition engine

How Web2.0 Got its Name
 The concept was born at a brainstorming session between O’Reilly and MediaLive International  Dale Dougherty, VP O’Reilly  Background: Dot-com bubble had just burst  Companies that survived had something in common  Could these be called the Web2.0?

The next-generation online customer acquisition engine

Web2.0: An Overview
 Strategic Positioning
 The Web as a Platform

 User Positioning
 You control your own data

 Core Competencies
      Services, not packaged software Architecture of participation Harnessing collective intelligence Cost-effective scalability Re-mixable data sources and data transformations Software above the level of a single device

The next-generation online customer acquisition engine

Web2.0: Web as a Platform
 Netscape vs. Google  Netscape
 Desktop application  Strategy: sell high-end servers running web applications  Tried controlling standards for displaying content

 Google
 Web application  Never packaged or sold  Delivered as a service, with users paying for the service, directly or indirectly

The next-generation online customer acquisition engine

Web2.0: Web as a Platform
 DoubleClick vs. Overture, AdSense  DoubleClick  Overture, AdSense
 Is a web service (like Google)… … but is not participatory  Advertisers call the shots, and not users  Bulky, contractual placements of ads on large sites, for large advertisers  Any small advertiser can place an ad in any small site  They serviced the long-tail

 Leverage customer self service to reach out to the entire web, not just the head, but the long tail too
The next-generation online customer acquisition engine

Web2.0: Harnessing Collective Intelligence
 Hyperlinking: Sites are bound to the structure of the web by links  Google’s breakthrough in search – PageRank – uses link structure rather than type of content to provide search results  Ebay – a collective activity of it’s users. Ebay grows as activity grows. Ebay, only provides a platform  Amazon – sells the same products as its competitors. But they have higher user participation – reviews, different ways of interacting, user activity produces better results
The next-generation online customer acquisition engine

Web2.0: Harnessing Collective Intelligence
Companies that have extended the above  Wikipedia – an online encyclopedia: Radical concepts change in the dynamics of content creation. Trust.  Del.icio.us, Flickr – pioneered “folksonomy” (in contrast to taxonomy) – collaborative categorization.  Cloudmark – spam filtering, by aggregation of individual decisions  Linux, MySQL, Perl, PHP, on which most of the web runs, is relies on open-source – collective, net-enabled intelligence  Blogging
 Usable technology (easy enginepublish own content, rather than using The next-generation online customer acquisition to

Web2.0: Rich User Experience
 Applet (1992)  Java delivered Applet (1995)  Macromedia’s Flash based “Rich Internet Applications”, many years ago  Full scale applications happened only with Gmail  Technology that Google used was termed AJAX, which is a collection of
     XHTML, CSS DOM XML, XSLT XMLHttpRequest Javascript, to bind everything together

The next-generation online customer acquisition engine

Web2.0: Visual Design?
 Very user friendly  Feature rich  People are not shy to use color  But lots of white  More text than images  Logos are rounded, colorful, playful?  Again, very usable

The next-generation online customer acquisition engine

Web2.0: Design Patterns
 Long Tail: Small sites make up bulk of the internet’s content. Leverage customer self service and automatic data management  Data is important: Try and create a unique hard to replicate data  Users add value: In form of data (reviews, original content), behavior  Self-learning apps: Applications should be intelligent enough to gather user behavior (top 10 views, highest clicks, etc)  Rights reserved?: Benefits come from collective adoption and not restriction.  Always a Beta?: On the web one does not need to have software releases. Change as often, if
The next-generation online customer acquisition engine

Web2.0: What is proprietary? What is the biz model?
 Desktop applications were, now they are open source.  Web applications were (advanced mail, etc), now they are not  If for a news company, news is not copyrighted, and is freely distributable, how does the news company make money?  For some companies, such as MapQuest, it would be data they can license. Companies like Google are already giving this data out freely.  So in the end, it is not products, not services, not data. It is the amount of traffic you can garner. More traffic could mean more revenue
The next-generation online customer acquisition engine

Web2.0: Beyond the web, beyond the community: Web3?
 Making it collaborative.  Making it a web enabled service.  Moving completely away from the desktop storage  Moving away from desktop applications.  Web3 – some thoughts: All pervasive, always on. For the businesses.

The next-generation online customer acquisition engine

Web2.0: Implications for Media
 Publishers now no longer leverage all the content  It is now easy to create content (Blogs)  It is now easy to distribute content (RSS, feedreaders)

The next-generation online customer acquisition engine

Web2.0: Are we going into a Bubble?
 Yes! There is a lot of frenzy to innovate.  And lot of money to back it with.  And some of the applications don’t really make any sense! E.g., myLot. To me, even MySpace does not make much sense, when compared to Orkut!  But again, innovation never goes waste  Finally, you are safe if you are thinking about the user, have a clear reasoning of how this is useful. Don’t be a part of the fad

The next-generation online customer acquisition engine

Web2.0: Some creative Web2.0 applications?
 Zopa: Taking money lending to the masses  Zimbra: Messaging and collaboration  Tictrac: Online time tracking  World66: A wiki on Travel  NetworthIQ: Track your networth online  OpenID: Single identity across all applications  Foldershare: Keep your files online  HousingMaps: Craigslist + GoogleMaps: A mashup

The next-generation online customer acquisition engine

Thank You!
A journey of a thousand miles begins with a single step.
-Chinese Proverb

Nimish Vohra India Head, Regalix +91 98453 34981 | Bangalore

The next-generation online customer acquisition engine