Interactive Websites Web 2.0 Defined

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1 Interactive Websites Web 2.0 Defined Web 2.0 = Applications which can only exist on the Internet, deriving their power from the human connections and the network effects. Examples: ebay, craigslist, Wikipedia, Skype, Adsense Source: O'Reilly Radar

2 Mind Map of Web 2.0 Source: Constructed by Markus Angermeier on November 11, 2005

3 Will Future Investment in Web 2.0 Increase in the Industry? Percent of Respondents Saying Yes, 2007 Percent Retail High Tech Financial Services Telecommunications Pharmaceuticals Source: 2007 McKinsey Survey on Internet Technologies

4 Will Future Investment in Web 2.0 Increase in the Region? Percent of Respondents Saying Yes, 2007 Percent India Asia-Pacific Europe China Latin America North America Source: 2007 McKinsey Survey on Internet Technologies

5 Web 2.0 Technologies Helping to Interface with Suppliers, and Partner? Out of All Respondents Saying Yes, 2007 Purchasing, 17% 46 Better Interface Integration and Communication, 83% Source: 2007 McKinsey Survey on Internet Technologies

6 Broadband Internet Statistics Per 100 Inhabitants Source: OECD, 2006 Country DSL Cable Other Total Korea Netherlands Denmark Iceland Switzerland Canada Finland Belgium Norway Sweden Japan United States United Kingdom

7 World Internet Statistics March 2007 Population, Internet Usage World Region Millions % of World Usage, Growth % Population % World ( 2007 Est.) Population Millions (Penetration) Users Africa % % 3.6% 3.0% Asia 3, % % 10.7% 35.8% Europe % % 38.9% 28.3% Middle East % % 10.0% 1.7% North America % % 69.7% 20.9% Latin America/Caribbean % % 17.3% 8.7% Oceania / Australia % % 53.5% 1.7% WORLD TOTAL 6, % 1, % 16.9% 100.0% Source:

8 Broadband Subscribers Per 1000 People, 2006 Country Per 1000 People Canada Japan United States France United Kingdom Germany 83.7 China 16.5 Mexico 3.1 Russian Federation 0.86 India 0.65 Source: The World Bank

9 Internet Users Per 100 Inhabitants Region World Developing Regions Northern Africa Sub-Saharan Africa Latin America and the Caribbean Eastern Asia Southern Asia South-Eastern Asia Western Asia Oceania Commonwealth of Independent States Transition Countries of South-Eastern Developed Regions Least Developed Countries (LDCs) Landlocked Developing Countries (LLDCs) Small Island Developing States (SIDS) Source: United Nations

10 WorkNets: A General Theory and the Case of Facebook

11 WorkNets: A General Theory and the Case of Facebook 1 WORK Purpose Scan / Sense Innovate Convene Allocate Influence

12 WorkNets: A General Theory and the Case of Facebook 1 WORK 2 TALENT Purpose Scan / Sense Innovate Convene Allocate Influence Content Segments Roles Knowledge

13 WorkNets: A General Theory and the Case of Facebook 1 WORK 2 TALENT 3 EXCHANGE Purpose Scan / Sense Innovate Convene Allocate Influence Content Segments Roles Knowledge Value Economic Information Emotion

14 WorkNets: A General Theory and the Case of Facebook 1 WORK 2 TALENT 3 EXCHANGE 4 EXPERIENCE Purpose Scan / Sense Innovate Convene Allocate Influence Content Segments Roles Knowledge Value Economic Information Emotion Calendar of Events Conversations Topics Venues Style

15 WorkNets: A General Theory and the Case of Facebook 1 WORK 2 TALENT 3 EXCHANGE 4 EXPERIENCE Purpose Scan / Sense Innovate Convene Allocate Influence Content Segments Roles Knowledge Value Economic Information Emotion Calendar of Events Conversations Topics Venues Style TECHNOLOGY Virtual and Physical SEARCHING SENSING INTERACTING BROADCASTING DISTRIBUTING VALUING ARCHIVING

16 WorkNets: A General Theory and the Case of Facebook Example: Facebook 1 WORK 2 TALENT 3 EXCHANGE 4 EXPERIENCE Purpose Scan / Sense Innovate Convene Allocate Influence Content Segments Roles Knowledge Value Economic Information Emotion Calendar of Events Conversations Topics Venues Style Enable Students to Form Relationships Students--ONLY Econ: None Info: Who s Who Emo: Make Friends TECHNOLOGY My Wall Virtual and Physical SEARCHING SENSING INTERACTING BROADCASTING DISTRIBUTING VALUING ARCHIVING

17 What is Web 2.0? Over 60 different types of Wiki Software available More than 40 companies offer White Label (you can rebrand) Social Networking Software, and the list continues to grow There are over 20 Online Video Platforms Over 50 Internet Forum Software packages are available 29 flavors of Blogging Software available More than 140 Podcast Directories Nearly 20 different Instant Messaging clients available (Many don t work together) 25 Social Bookmarking services A list of 8 enterprise Online Data Storage vendors, and hundreds of startups that offer online data storage as a primary or secondary feature At least 6 Online Office Suites, 9 Online Spreadsheet companies, 9 Online Word Processors, and at least 8 Online Presentation tools Over 100 Online Photo Sharing services available Source: blog of Jeremiah Owyang, Web Strategist Source: blog of Jeremiah Owyang, Web Strategist

18 THE WISDOM OF CROWDS IN TODAY S DIGITAL WORLD: WE VS. ME Speakers: Chris Larsen, CEO and Co-Founder, Prosper Marketplace Inc. Barry Libert, CEO, Shared Insights LLC Christopher Meyer, Chief Executive, Monitor Networks, Monitor Group Yossi Vardi, Chairman, International Technologies Ventures (Tel Aviv) Moderator: Yoram (Jerry) Wind, The Lauder Professor; Founding Editor, Wharton School Publishing; The Wharton School, University of Pennsylvania Milken Global Conference April 23, 2007

19 Have You Capitalized On the Opportunities Offered By:

20 Objective and Structure Objectives Explore the business opportunities offered by the advances in Web 2.0 for social networking and help each of you develop an action plan. Structure 1. Brief (5 min) opening comments by each panelist 2. Small group discussion (5 min) to: (a) identify new opportunities and (b) prepare a question to the panel 3. Discussion with the expert panelists on the group insights and questions (45 min) 4. Final action suggestion by each of the panelist (5 min)

21 Second Wave (Web 2.0) What is New? Value creation: communication, community, commerce Source of value is people Company is servant infrastructure Web 1.0 Web 2.0 Market Videos Guides Loans

22 Prosper is like an ebay for Money Marketplace for Money Brings together borrowers with people who have money to lend Administers validation, payments, and collections Open access to Consumer Credit Market Anyone with as little as $50 can lend Community decides where and why to grant credit Leverages Power of Community Groups and endorsements provide acquisition, shame, and support Market Size and First Year Results Focus on $2 trillion US consumer credit market 250,000 users, $50,000,000 in loans

23 How It Works Anyone with min. $50 can bid on listing Borrower creates listing, sets max rate

24 Borrowing Groups User generated. Performance ranked. Borrowers gain value from group s reputation

25 Key Observations New Asset Class First time consumers gain access to consumer credit opportunity Users set bottom-line: ROI, charity, social engagement Challenges Balancing freedom and safety Balancing transparency and privacy Implications Consumer market and capital market merge Banking spread business in question Continues trend away from command and control systems

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27 WHAT IS IT? WHO IS INVOLVED? WHY DID WE DO IT? WHAT DID WE LEARN?

28 Project Overview The irony of this book is that a single person wrote it

29 Project Overview Continued An experimental project to allow a community of authors to write a book Topic: How to leverage the power of communities Platform: Wiki plus Business model: traditional model, but all authors share the royalties WHY: To see what happens!

30 Current Statistics authors 150+ unique contributors to the wiki 800+ individual wiki contributions posts to the discussion forums

31 We Are Smarter Than Me

32 7 Rules For Success Gain leadership buy-in Think big, but start small Technology is not enough Invite a few, then expand Keep it fresh and relevant Moderation is critical Surrender control

33 Thank you

34 We are smarter then me

35 Most of the smart people are somewhere else Bill Joy

36 People are the killer-app!

37 The cathedral and the Bazaar

38 The six driving forces of the users Self expression, self publishing, be seen, attracting, comparing Belonging community, aggregation, finding Attending and being attended to, togetherness, presence Sharing, Communication Collaboration and contribution

39 We are wired for collaboration

40 The first 100 million users is always the toughest 12/ Million Users Current Number of Users (in Millions) ICQ Milestones 7/96 Mirabilis Founded in Tel Aviv 11/96 First ICQ Client 7/97 1 Million Users 12/97 5 Million Users 12/99 50 Million Users 4/98 10 Million Users 6/98 AOL Acquires ICQ /00 2Way SMS 05/ Million Downloads on c net 05/ Million Users

41 The new type of content Aggregation services: the packing of hundred of feeds and sources of information onto a single page or pages Directory services: the categorization and linking of millions f sites into an intuitive, easy-to-use research and navigation tool Communications services: , chat, message-boards, instant messaging, voice, video conferencing Personal productivity tools: calendars, address books, bill-paying services, reminder services Personal finance tools: bank accounts, portfolios, insurance, research Information: telephone listings, address listings, TV listings, restaurant listings Reviews: professional and individual feedback and ratings regarding products, services, sites, etc. User-generated content: photographs, message boards, reviews, clubs, videos Commerce products and services: shopping, auctions, classifieds, bots, pricecomparison engines, wallets Games News (and, more importantly, news aggregation) Horoscopes Entertainment and the marketing and distribution of entertainment products such as music and movies Source: Merrill Lynch Internet research, Oct. 2001

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46 Discovery Reviews Tags Critics Rating Top lists Collaborative filtering Testimonials Votes Hit lists ranking reputation

47 The magic of collaborative filtering

48 The amazon case: Reviewers Affiliates Web services Api

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52 Technology and Architecture How DAP works - Multi-Connection Downloading from the Fastest Servers 200% - 400% Faster download* Mirror Server 4 4Mirror Server 3 SpeedBit s Mirror Search Server sends to the inquiring user the 5 list of mirror sites which hosting the file Mirror Server Mirror Server Load Balancing and multi-server download : DAP begins to download the file in portions from the fastest mirror sites via several parallel connections (from a single or several servers) and reassembled on the end user's computer Mirror Server 5 4 Mirror Server Mirror Server Downloading Downloading The end user arbitrarily finds a server to start a file download DAP detects the download and send a query to SpeedBit s Mirror Search Server ISP End User Proximity checks DAP performs proximity checks to the mirror sites list determines which will be the fastest for the specific user location *According to users and website reviews

53 WeFi Top Mappers

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