1 Web 1.0

Business Applications Digital Expectations: Competitive pressures reduce cost Improving customer service Improve efficiency Sharing knowledge Has to be part of overall business strategy

Business Applications Stock exchanges (threat of Electronic Communications Networks) Banks (ATMs, online banking) Manufacturing (Just in Time, supply chain management) Health care (sharing of patient records, telemedicine) Retail (Wal-Mart’s real time inventory systems) Logistics (FedEx and UPS tracking systems) Law enforcement (network database records) Airlines (reservation systems, Sabre ) Currency Trading (Largest international trade item)

Business Applications Distribution of service: serving your customers at where they are (bank branches) making time and location irrelevant Supply chain management in cutting cost Sharing ideas and collaboration Sharing business data (EDI) and cutting transaction costs Real time systems

Business Applications Location Independence F Online education F Telecommuting F Day trading Globalization (international expansion) F Multiple units in different parts of the world sharing corporate information F Serving other global organizations Work teams F Sharing ideas, information (business is about information today)

Typical Applications Access to data PC networks and Internet applications Collaboration CRM, ERP, Portal, Conferencing, Collaborative Tools, Messaging

The Internet Changing Lifestyles , IM as a means to communicate Online banking Online shopping trade stocks over the Internet listen to radio on the Internet XM and Sirius: Satellite FM radio in your car Establish personal relationships on the Internet Research products Book flights and hotels Mobile apps

Has it Made a Difference? Not revolution but evolution Internet usage increasing Companies keep deploying Internet technology Revolution in technology not business practices

Has it Made a Difference? ‘Brands will Die’ not necessarily Encyclopedia Britannica Microsoft Wal-Mart but the impact has been felt Eaton’s Consumer’s Distributing Woodward’s K-Mart

Has it Made a Difference? Prices will Fall Tough to prove Internet comparison shopping – real? (and.ca)

Has it Made a Difference? ‘Middlemen will Die’ some disintermediation, but not to the scale envisioned expedia.ca versus travel agents video versus pay-per-view dealers versus direct automobiles online Auctions do Disintermediate  Ebay.com, bid.com, priceline.com

Has it Made a Difference? ‘Being First is Key’ substitution is fast sustainability lies in continuous innovation Wal-Mart FedEx Google

Web 2.0

Defined If Web 1.0 introduced a customer, then Web 2.0 introduced a participant Evolution, not revolution here Web 1.0, 1996: 250,000 servers Web 2.0, 2008: 80,000,000+ servers

Attributes Peer Production / Collaboration Linux, Apache OpenSource Wikipedia Crowdsourcing / Sharing blogging RSS Globalization Integrity Interdependence

Peer Production as a Core ‘The GoldCorp Challenge’ 1. Give $10 million to your geologists 2. Give $575,000 to strangers

Wikinomics Collaborate participatory news

Wikinomics Collaborate crowdsourcing

Wikinomics Contribute Weblogs (blogs)

Wikinomics Contribute Weblogs (blogs)

Wikinomics Porosity Transparency

Where is it Going? Peering against the hierarchical model Sharing against the IP model RIAA versus MP3 DRM act in Canada Skype Globalization collaboration production

Social Networking in Organizations Teaming and collaboration BestBuy installers wiki Recruitment and on-boarding Linked-In for networking and searching skills development tools Content and Expertise Capture capturing tacit knowledge Innovation