Web 2.0 and its Strategy

In this essay I will try to give an overview what is Web 2.0, how is this new platform evolved in time and try to concentrate on business thinking behind successful Web 2.0 implementations. I will also bring out the terms of the new media and the most successful sites and applications.

Web 2.0 goes far beyond what Web 1.0 started. There are many outputs as business models catch up to the tehnological possibilities (Shuen 2008).

Amy Shuen describes in her book „Web 2.0: A Strategy Guide“ (2008) that the greater part of us already is integrated to the Web 2.0 business economy. Shuen explains that every move you make in internet, every click you make on Amazon, Google, Wikipedia, eBay, or Yahoo, you are involved with the new platform’s features. Shuen uses a great expression for it – sparking „network effects“. One can create business values for companies without truly understanding it himself or spending any money. For example, by a Flickr-enabled cell phone or checking Yahoo! finance for stock quotes (Shuen 2008).

Tim O‘Reilly (2005) tells in his article that the dot-com bust at the end of 2001 was a new beginning and becoming of the web. Many people tought back then that internet is overhyped. But two men, Tim O’Reilly and Dale Dougherty had reverse thoughts – that internet was more important than ever. The term Web 2.0 came into being in conference where O’Reilly and MediaLive International had a brainstorming session (O’Reilly 2005).

The term Web 2.0 is doubtfully the hottest theme in internet field right now, in 2008. What concernes internet, there’s everything changing really fast. In 2008 you probably won’t find anything relevant in some internet-based book from year 2002, because everything questionable has found the answers for now. The technology evolves really quick, so it is understandable. When typing in the term Web 2.0 on Google, the first result is Wikipedia’s description, the second Tim O’Reilly’s article „What is Web 2.0“ . Appearantly the description in Wikipedia originates from the same article. At the same time this article from 2005 gives us a dfinition, but on O’Reillys blog O’Reilly Radar this question has set up and there are interactive and every day more relevant answers to this notional phrase.

In May 2008 Financial Times wrote an interesting article (Richard Waters, Chris Nuttallabout 2008) about Web 2.0 concentrating on fact that the new conception of the web doesn’t earn just notably much money. The authors of the article, Richard Waters and Chris Nuttall, consider under Web 2.0 social networks, blogs, etc which main idea is communication between users and the content users have created. They say that the sharp growing in last four years haven’t found the way to earn money for the owners. In which connection people’s behavior in internet has developed. The article gives an example of non-benefit start-up Twitter, that is one of the most popular start-up of Silicon Valley and haven’t found the way to turn the idea into money, at least so far. But we can’t find the concrete answer why the Web 2.0 start-ups that have a quick start doesn’t have the business logic in their idea. Still there is a hint to a business plan, every profit making idea demands a concrete business plan. I find this article relevant in many sayings, but it would be redicilous to think that every idea is a so-called million-worth-idea. Towards the Web 2.0 solutions, there are also still working Web 1.0 solutions that sell successfully advertisements and websites that work on some e-applications.

What is the main difference between Web 2.0 and Web 1.0.? Joe Drumgoole has done a list in his blog (2006) that has many good examples. Few of them: Web 1.0 was about reading, Web 2.0 is about writing; Web 1.0 was about home pages, Web 2.0 is about blogs; Web 1.0 was about Netscape, Web 2.0 is about Google (Drumgoole 2006).

Wienclaw (2008) acknowledges that the technology that goes between new media has proved our lives and ways to make business. As Wienclaw claims there isn’t an updated technical specifications associated with Web 2.0, so this concept can be used to describe second generation web communities and services on the World Wide Web (Wienclaw, 2008).
The author indicates that it is important for the companies to be online, not only to be online but to be a part of Web 2.0, to create the content themselves. A good way for showing that you „are there“ is a company blog. Wienclaw also thinks that it is doubtful that companies that doesn’t have a blog, will go out of business in few years, but for most of the firms it is important to stay current with new technologies to show that they are ahead in time and relevant in business (Wienclaw, 2008).

Shuen claims that some of the most popular online services are social networks that help people find each other, to share their intrests, pictures, videos, events they are attending to, etc. The main point is to interact with people you know or don’t know, to share their story. Facebook bases fully on social networking, in the other hand photo sharing website Flickr isn’t social networking site, but the social aspect is critical to its success (Shuen 2008, 72). E-mailing, connecting through web, chatting online creates the feeling that all people are in the same room, everybody seems to be quickly reachable., that online is a small world (Shuen 2008, 73).

Amy Shuen indicates (Shuen 2008, 91) that Facebook has its success for two main reasons: the timing and speed. The speed is important to get the critical mass and it worked out for Facebook to get the critical mass before other competitors. The creator of Facebook, Mark Zuckerberg, started the site for need to make the students in college acquainted to each other. When two friends of Mark saw him developing Facebook, they introduced the site for some of their friends and after a couple of weeks 2/3 of Harvard students had profiles in Facebook. The model spread quickly and soon other colleges‘ students were interested in that application (Shuen 2008, 93).

Fred Vogelstein writes in his article „How Mark Zuckerberg Turned Facebook Into the Web's Hottest Platform“ that the Facebook and Mark Zuckerberg are the most sensational company in Silicon Valley, and Mark is even compared to Steve Jobs and Bill Gates (Vogelstein 2007). Marc Andreessen, a founder of Netscape wrote an enthusiastic article about Facebook, praising its economic freedom (Andreessen 2007). Facebook offers its users many applications, moreover, users don’t have to wait for new applications, they create those themselves, and good application will get shared across profiles fast (Shuen 2008, 96).

Shuen (2008, 157) gives five steps to embed Web 2.0 to the business model. First you have to build a collective User Value, then activate network effects, after that working through social networks. After that syndicate the competence and build a Web 2.0 business plan (Shuen 2008, 164).

While creating new businesses you should look around you and take in mind that network has a powerful force, few active users an create by uploading a critical mass and that viral distribution can build eco-system fast (Shuen 2008, 172). Taking these issues into account will help one to move the business forward. But it is important that you don’t have to use every feature about Web 2.0 you know, what counts, is a good business plan (Shuen 2008, 173).

Web 2.0 isn’t definitely the end of inernet developing. Already today there are prognoses how to define Web 3.0. Towards to one prediction in article „Web 3.0 – Connecting more than pages“ (2008) Web 3.0 is about creating technology that shows us how we think and see our world. Developing won’t stop neither with becoming of Web 3.0. I searched the different versions of Web on Google, and I got results until Web 10.0.


List of References:

Shuen, Amy. Web 2.0: A Strategy Guide
O'Reilly Media, 2008

O’Reilly, Tim. 2005. What is Web 2.0
http://www.oreillynet.com/pub/a/oreilly/tim/news/2005/09/30/what-is-web-20.html

Waters, Richard & Nuttallabout, Chris. 2008. Web 2.0 fails to produc cash
Financial Times
http://www.ft.com/cms/s/6c968990-2b4c-11dd-a7fc-000077b07658,Authorised=false.html?_i_location=http%3A%2F%2Fwww.ft.com%2Fcms%2Fs%2F0%2F6c968990-2b4c-11dd-a7fc-000077b07658.html%3Fnclick_check%3D1&_i_referer=http%3A%2F%2Fndb.zoomflash.net%2Felu-meie-umber%2Fweb-20-ei-too-raha&nclick_check=1

Drumgoole, Joe 2006. Web 2.0 vs Web 1.0
http://joedrumgoole.com/blog/2006/05/29/web-20-vs-web-10

Wienclaw, Ruth. 2008. The Use of Web 2.0 in Business
http://web.ebscohost.com/ehost/detail?vid=1&hid=9&sid=616e926f-e1a6-4fdf-b2b2-529cf55bc607%40sessionmgr7&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=e6h&AN=29964577

Vogelstein, Fred 2007. How Mark Zuckerberg Turned Facebook Into the Web's Hottest Platform
http://www.wired.com/techbiz/startups/news/2007/09/ff_facebook

Andreessen, Marc http://blog.pmarca.com

Web 3.0 – Connecting more than pages, 2008
http://www.web3event.com

Wikipedia
http://en.wikipedia.org/wiki/Main_Page

Facebook
http://www.facebook.com/facebook

Flickr
http://www.flickr.com/about/