1. 1 Chapter 9: Web 2.0 IT357 Electronic Commerce

2. 18 July 2008IT 357 – Chapter 92 Web 2.0 What is Web 2.0 Principles behind Web 2.0 Core Competencies of Web 2.0 companies Web 2.0 Design Pattern Social Media Virtual Communities Online Social Networks Technology Support Why is there an interest Web 2.0 Commerce activities inside the Enterprise The future of EC Sources: http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html Turban et al. http://en.wikipedia.org/wiki/Web_2.0 http://www.theregister.co.uk/2006/08/30/web_20_berners_lee/

3. 18 July 2008IT 357 – Chapter 93 Web 2.0 Web 2.0" began with a conference brainstorming session between O'Reilly and MediaLive International. Dale Dougherty, web pioneer and O'Reilly VP, noted that far from having "crashed", the web was more important than ever, with exciting new applications and sites popping up with surprising regularity. Web 2.0 is the second generation of Internet-based services that let people collaborate and share information online in perceived new ways – such as social networking sites, wikis, communication tools, and folksonomies.

4. 18 July 2008IT 357 – Chapter 94 Cont’d: Web 2.0 Tim Berners-Lee, the individual credited with inventing the web and giving so many of us jobs, has become the most prominent individual so-far to point out that the Web 2.0 emperor is naked. Berners-Lee has dismissed Web 2.0 as useless jargon nobody can explain and a set of technology that tries to achieve exactly the same thing as "Web 1.0“ and whether one can use the term in a meaningful way, since many of the technology components of "Web 2.0" have existed since the early days of the Webexplain Berners-Lee pointed out the things that drove Web 1.0 also underpin Web 2.0 - the document object mode, HTML, http, SVG, web standards and - because he's old school "Java script of course." Free Software Foundation chief legal counsel Eben Moglen recently concurred at this month's LinuxWorld, saying Web 2.0 owes its existence to software and development methodologies already established in open source.

5. 18 July 2008IT 357 – Chapter 95 Cont’d: Web 2.0 Memory Map

6. 18 July 2008IT 357 – Chapter 96 Cont’d: Web 2.0

7. 18 July 2008IT 357 – Chapter 97 Principles Behind Web 2.0 1.The Web As Platform 2.Harnessing Collective Intelligence 3.Data is the Next “Intel Inside” 4.End of the Software Release Cycle 5.Lightweight Programming Models 6.Software Above the Level of a Single Device 7.Rich User Experiences

8. 18 July 2008IT 357 – Chapter 98 Cont’d: Principles Behind Web 2.0 The Web As Platform The Web As Platform –Netscape framed this in terms of old software paradigm “webtop”, to replace the desktop, populated with information updates and applets pushed to the web top Used dominance in browser market to market high priced server products –Google began as native web application, not sold or packaged but delivered as a service A specialized database Without the data, tools are useless Without the software, tools are unmanageable

9. 18 July 2008IT 357 – Chapter 99 Successful giants born in Web 2.0 era embraced the power of the web to harness collective intelligence –Hyperlinking: users add new content and new sites that are bound in to the structure of the web –eBay’s product is the collective activity of all its users –Amazon uses user activity to produce better search results. Amazon leads with “most popular”, a real-time computation –Wikipedia, an online encylopedia where users can add entry and edit others’ entries –Flickr: pioneered concept of folksonomies wherein you can use your own keyword to tag your photos –Blogging: personal home page in diary format –RSS (Really Simple Syndication) allows someone to not just to link to a page but to subscribe to it, with notification everytime that page changes Cont’d: Principles Behind Web 2.0 Harnessing Collective Intelligence

10. 18 July 2008IT 357 – Chapter 910 Every significant internet app is backed by a specialized database –Google’s web crawl, Yahoo’s directory, MapQuest’s map databases, Napter’s distributed song database Who owns the data: people may re-post their reviews in another site –Mashups link Google Maps with other internet-accessible data sources (see housingmaps.com) –Personal videos submitted to Youtube Cont’d: Principles Behind Web 2.0 Data is the Next “Intel Inside”

11. 18 July 2008IT 357 – Chapter 911 Operations must become a core competency –Expertise in product development must be matched by an expertise in daily operations Users must be treated as co-developers –Open source dictum: Release Early. Release Often.  now morphed into “Perpetual Beta” Cont’d: Principles Behind Web 2.0 End of the Software Release Cycle

12. 18 July 2008IT 357 – Chapter 912 Cont’d: Principles Behind Web 2.0 Lightweight Programming Models Quest for simplicity: Google Maps set the world on fire due to its simplicity Significant lessons: –Support lightweight programming models that allow for loosely coupled systems –Think syndication, not coordination: Web services like RSS are about syndicating data outwards not controlling when it gets to the other end of connection –Design for “hackability” and remixability : the barriers to re- use are extremely low. “Some rights reserved” as opposed to “All rights reserved”

13. 18 July 2008IT 357 – Chapter 913 No longer limited to PC platform “Useful software written above the level of single device will command high margins for a long time to come” – Dave Stutz, Microsoft Developer iTunes: application seamlessly reaches from the handheld device to a massive web back-end Cont’d: Principles Behind Web 2.0 Software Above the Level of a Single Device

14. 18 July 2008IT 357 – Chapter 914 Cont’d: Principles Behind Web 2.0 Rich User Experiences Javascript and then DHTML were introduced to lightweight ways to provide client side programmability and richer user experience Collection of technologies used by Google was named AJAX: –Standards-based presentation using XHTML and CSS –Dynamic display and interaction using Document Object Model –Data interchange and manipulation using XML and XSLT –Asynchronous data retrieval using XMLHttpRequest –And JavaScript binding everything together

15. 18 July 2008IT 357 – Chapter 915 Core Competencies of Web 2.0 companies Services, not packaged software, with cost-effective scalability Control over unique, hard-to-recreate data sources that get richer as more people use them Trusting users as co-developers Harnessing collective intelligence Leveraging the long tail through customer self-service Software above the level of a single device Lightweight user interfaces, development models, AND business models

16. 18 July 2008IT 357 – Chapter 916 Web 2.0 Design Pattern IN HIS BOOK, A PATTERN LANGUAGE, CHRISTOPHER ALEXANDER PRESCRIBES A FORMAT FOR THE CONCISE DESCRIPTION OF THE SOLUTION TO ARCHITECTURAL PROBLEMS. HE WRITES: "EACH PATTERN DESCRIBES A PROBLEM THAT OCCURS OVER AND OVER AGAIN IN OUR ENVIRONMENT, AND THEN DESCRIBES THE CORE OF THE SOLUTION TO THAT PROBLEM, IN SUCH A WAY THAT YOU CAN USE THIS SOLUTION A MILLION TIMES OVER, WITHOUT EVER DOING IT THE SAME WAY TWICE."A PATTERN LANGUAGE The Long Tail Small sites make up the bulk of the internet's content; narrow niches make up the bulk of internet's possible applications. Therefore: Leverage customer-self service and algorithmic data management to reach out to the entire web, to the edges and not just the center, to the long tail and not just the head. Data is the Next Intel Inside Applications are increasingly data-driven. Therefore: For competitive advantage, seek to own a unique, hard-to-recreate source of data. Users Add Value The key to competitive advantage in internet applications is the extent to which users add their own data to that which you provide. Therefore: Don't restrict your "architecture of participation" to software development. Involve your users both implicitly and explicitly in adding value to your application. Network Effects by Default Only a small percentage of users will go to the trouble of adding value to your application. Therefore: Set inclusive defaults for aggregating user data as a side-effect of their use of the application.

17. 18 July 2008IT 357 – Chapter 917 Cont’d: Web 2.0 Design Pattern Some Rights Reserved. Intellectual property protection limits re-use and prevents experimentation. Therefore: When benefits come from collective adoption, not private restriction, make sure that barriers to adoption are low. Follow existing standards, and use licenses with as few restrictions as possible. Design for "hackability" and "remixability." The Perpetual Beta When devices and programs are connected to the internet, applications are no longer software artifacts, they are ongoing services. Therefore: Don't package up new features into monolithic releases, but instead add them on a regular basis as part of the normal user experience. Engage your users as real-time testers, and instrument the service so that you know how people use the new features. Cooperate, Don't Control Web 2.0 applications are built of a network of cooperating data services. Therefore: Offer web services interfaces and content syndication, and re-use the data services of others. Support lightweight programming models that allow for loosely-coupled systems. Software Above the Level of a Single Device The PC is no longer the only access device for internet applications, and applications that are limited to a single device are less valuable than those that are connected. Therefore: Design your application from the get-go to integrate services across handheld devices, PCs, and internet servers.

18. 18 July 2008IT 357 – Chapter 918 Social Media People create and control the content Ground rules: –Communication in the form of conversation, not monologue 2 way discussions, debate, with little or no moderation –Participants in social media are people not organizations –Honesty and transparency are core values –It is all about pull, not push –Distribution instead of centralization

19. 18 July 2008IT 357 – Chapter 919 Virtual Communities Virtual community is a group of people with some interest in common who interact with one another through the internet Advertisers buy ad space target to community members Eight Critical Factors for a Community Success [by Accenture] 1.Increase traffic and participation in the community 2.Focus on the needs of the members, use facilitators and coordinators 3.Encourage free sharing of opinion and information – no controls 4.Obtain financial sponsorship. This factor is a must. Significant investment is required. 5.Consider the cultural environment 6.Provide several tools and activities for member use; communities are not just discussion groups 7.Involve community members in activities and recruiting 8.Guide discussions, provoke controversy, and raise sticky issues. This keeps interest high.

20. 18 July 2008IT 357 – Chapter 920 Cont’d: Virtual Communities Top six success factors [Based on survey by Leimester and Krcmar in 2004] 1.Handle member data sensitively 2.Maintain stability of the web site with respect to consistency of content, services, and types of information offered 3.Provide fast reaction time of the web site 4.Offer up-to-date content 5.Offer continuous community control with regard to member satisfaction 6.Establish codes of behavior (netiquette or guidelines) to contain conflict potential Communities using one or more of the principles of success –Earthweb.com –Ivillage.com

21. 18 July 2008IT 357 – Chapter 921 Online Social Networks A social structure made of nodes that are generally individuals or organizations A place where people create their own space, home page, on which they write blogs, post pictures, video or music, and link to other web locations they find interesting Some popular sites –Flickr –Facebook –Classmates online –Friendster –Orkut –Xanga –Digg –Cyworld

22. 18 July 2008IT 357 – Chapter 922 Technology Support Social Software Tools: Some examples Online Communication –Instant Messaging –VoIP and Skype –Blogsblogger.com, digg.com –Wikiseditme.com, socialtext.com, goowiki.com Types of services –Social network services –Social network search engines Emerging technologies –Peer to peer social networks Tools for individuals –Personalizationnetvibes.com –Customization –Search –RSSnewsgator.com, knownow.com Web development tools –Mashupssee programmableweb.com –Web Services

23. 18 July 2008IT 357 – Chapter 923 Web 2.0: Why is there an interest Many cater to a specific segment of the population (e.g. music lovers, car fans) A large portion of the visitors are young who will grow up and will have more money to spend  therefore, Web 2.0 will play a major role in Ecommerce Benefits for Retailers: –Consumers can be a source of feedback on product design and features –Word of mouth (viral marketing) is free advertising and increases visibility of niche retailers and products –Increased web site traffic –Increased sales comes from harnessing techniques based on personal preferences such as collaborative filtering

24. 18 July 2008IT 357 – Chapter 924 Web 2.0 Commerce activities inside the Enterprise Allow employees to collaborate and communicate in an employee-driven system Promote the use of enterprise wikis via demonstrations Setup internal blogs and incorporate them into internal directories so users can see who has a blog Set up enterprise socila bookmarking systems so users can see what sort of content their colleagues are tagging CIOs should be involved from the beginning to make sure the right infrastructure and tools are in place

25. 18 July 2008IT 357 – Chapter 925 The future of EC EC will continue to expand as its infrastructure is becoming better and less expensive with time Consumers will become more experienced and will try different products and services and tell friends about them Security, privacy protection and trust will be much higher, and more support services will simplify the transaction process Legal issues will be formally legislated and clarified More products and services will be online at reduced prices Fastest growing area is B2B EC Company-centric systems (e-procurement) and auctions will continue to spread rapidly Development of exchanges and other many to many e-marketplaces will be much slower Wireless technologies (especially WiFi) will facilitate EC. Increased rate of innovation with new business models and applications appearing constantly