The New Group SM Opportunities

Evolving your business with the Social Web
A Social Media Workshop
The New Group | June, 2009

4540 SW Kelly Avenue, Portland, Oregon 97239
p. 503.248.4505 thenewgroup.com

Agenda

Introduction
A Brief History of Social Interaction
The Web… as a Platform
– Case Study: Amazon vs. Netflix

The Web… as a Rich User Experience
– Case Study: iPhone

The Web… as a Real-Time Interaction Between Producers and
Users
– Case Study: YouTube vs. Hulu

The Web… as a Consumer-Driven Marketplace
– Case Study: Google Ad-Words vs. iTunes and the AppStore

Interactive Exercise
– Other Web 2.0 Principles, Applying Web 2.0 to DST Output

Presented by Tom Bennett (@tom_bennett) and Toby Paul of The New Group www.thenewgroup.com

Introduction

Tom Bennett, Digital Strategist
– 20 years of Strategic and Marketing program development
– Panel speaker at industry events
– Adweek Interactive Advertising of the Year winner
– Driver of Social Media innovation and technology

Toby Paul, Technologist
– 15+ years of Technology Development and Consulting
– Published author of several white papers and articles
– Mantra is: “Would I use it?”
– Dreams of the day when people once again experience
the internet with wide-eyed wonder.


Section 1: Modes of Social Interaction

Village Messenger Producer Aggregator Integrated
Marketplace

Producer

Consumer


Some Important Vocabulary

Producers
Those engaged in the production of content,
information, material or value

Consumers
Those engaged in the consumption of content,
information, material or value


Time and Influence

Influence

Time


Early Commerce


The Village Market

The Village
Geographically constrained
Distributed ownership of infrastructure
Defined by customs/internal traditions
High visibility/presence/awareness
High degree of personal accountability
High contact among producer/consumer


The Age of Exploration and Commerce


The Messenger

The Messenger
Less geographically constrained
Distributed ownership of infrastructure
Defined by trust
Low visibility/presence/awareness


Industrial Production & Ownership


The Producer

The Producer
Not geographically constrained
Concentrated infrastructure
Minimal degree of personal
accountability
High requirement for brand and value
creation
Brand becomes abstracted from value


Aggregation


The Aggregator

The Aggregator
Concentrated infrastructure

{
Low degree of personal accountability
High requirement for brand and value
creation


Anytime, Anyplace


The Web as an Integrated Marketplace

The Integrated Marketplace

{
Distributed infrastructure
Defined by arbitrary or internal traditions
High visibility/presence/awareness


Look Familiar?

Village Messenger Producer Aggregator Integrated
Marketplace


Mass Media was an Aberration

“Web 2.0 is a course correction for the
Internet that is weaving the social fabric
back together again. It re-establishes the
relationships that we have in the offline
world… and enables that group consumption
to happen again.” ?
- Patrick Crane, LinkedIn

Was this an aberration?

Was does the future hold?


Section 2: Opportunities in Web 2.0


Groundswell Social Technographics Profile: All Adults

0 20 40 60 80 100

Creators 18

Critics 25

Collectors 12

Joiners 25

Spectators 48

Inactives 44
U.S. Adults
(Relative % of adult respondents)

Source: Forrester’s North American Social Technographics Online Survey, Q2 2007

Groundswell Social Technographics Profile: SMB

0 20 40 60 80 100

18
Creators 25
25
Critics 31
12
Collectors
17
25
Joiners
24
48
Spectators 53
Inactives 44 Small Business Owners
38
(Relative % of adult respondents compared to % of SMBs)

Source: Forrester’s North American Social Technographics Online Survey, Q2 2007

The Web… as a Platform

It all works… together.

“Salesforce.com sells subscriptions to a customer relationship
management application, but when you talk
to the company's CEO, Marc Benioff, you
quickly understand that he is betting
that its development platform,
called Force.com, will fuel growth
in the future.”
- Martin LaMonica,
Cnet News, 3/19/2008


The Web: an Application Development Platform

Using the web as a platform enables the development of
robust web-based applications that can be used regardless
of device and operating system.
Applications developed in this way have a high degree of
reusability
The development costs are generally lower
And the ongoing development lifecycle is more flexible


Interoperability

The capability to communicate, execute programs, or
transfer data among various functional units in a manner
that requires the user to have little or no knowledge of the
unique characteristics of those units.
» ISO/IEC 2382-01, Information Technology Vocabulary,
Fundamental Terms

AJAX, XML, Web services
Metadata, Semantic web


Portability

Redeploying an application, component, or framework
directly from one platform to another (e.g. PHP to .NET to
Java).
Widgets


Security/Privacy

Users’ confidence in the security of their personal information
and trust in how it will used.
PCI Compliance
Encryption Tech for CC and Transactions
Account Information
Embedded transactional data
The power of anonymity


Monetization

A Web platform can be monetized when its architecture
enables generation of recurring revenue from the
underlying platform, in addition to the overlaying products
and services.
Licenses (patents) (Amazon; Netflix)
Ad-revenue (Google, YouTube)
Commerce-based transactions (Amazon, iTunes)
Subscriptions (Salesforce, Napster)
Micropayments


Case Study: Amazon vs. Netflix

Amazon vs Netflix – Bridging the Digital Divide

How have two distinct companies have addressed the
challenge of creating an infrastructure to support both
physical and digital distribution, and approached it from
two different directions?

VS.


Case Study: Amazon vs. Netflix – Background

Amazon –
Started as e-tailer, first in books and then full-service
Created comprehensive logistics/distribution network
Developed white-label storefronts

Netflix –
Started as online storefront for physical rental service
Created automated infrastructure for distribution
Partnered to create digital movie delivery network


Case Study: Amazon vs. Netflix – Key Learnings

Began in one category of business and then evolved into new
ones as the marketplace evolved.
Patented business processes coupled with physical
infrastructure to increase the barrier-to-entry for potential
competitors.

Principles leveraged:
– Agility
– Interoperability
– Monetization


The Web… as a Rich User Experience.

It’s the difference between usable, useful, and
essential.

“Web 2.0 is really about the user experience and not the
underlying technologies.”
- Garrett Camp (Founder, StumbleUpon)


Deeply Engaging Users

Indispensable.
Ubiquitous.
Intuitive.
Seamless.


Rich Internet Applications

New development tools enable the creation of non-web
applications that are capable of leveraging internet
connectivity to provide valuable services.
AJAX
Javascript
AIR
Silverlight


Contextual Relevance

Connecting disparate sources of information together to
provide additional levels of value.


Customization

The persistence of content and experiences based upon user-
defined preferences.


Interactivity

Moving beyond the static presentation of information by
enabling users to have options for how the data is
presented.


Geo-location

• Built-in location
services are layered
with commercial or
user-generated
content.
• The OS contains
built-in functionality
for seamless
commerce


Augmentation

Optional layers of additional information that a user can
choose to use, without the publishers harvesting any data.


Mobile

Applications designed to be useful in public situations with
small form factor devices.
Hierarchy of delivery – push (alerts) vs. pull (subscription)
Web-apps vs. device-apps vs. carrier apps


Case Study: The iPhone

The iPhone:
Ubiquitous to
Indispensable

focused on a rich
experience
bridges device-specific to
carrier-specific (Visual
Voice Mail) to open access
(Web browsing).


Case Study: The iPhone – Background

Conceived as an entire ecosystem
Rich development API - pre-
released to involve the developer
community
Monetized delivery – App Store
Integrated with 2 platforms –
AT&T, Apple OS
Advanced Features
Internal accelerometer
Seamless Geo-Location
Visual Voicemail
Microsoft Exchange Support


Case Study: The iPhone – Key Learnings

Compliance
Accessibility
New content/Up-content
Immediacy
Responsiveness
Presence
Participatory
Asynchronous
Graphical
Multimedia
Micropayments
Shopping carts
Mobile/distributed
Consumer/client intelligence
Portable


The Web… as a real-time interaction
among producers and consumers

Making it personal.

“For Technorati, a lot of Web 2.0 is about authenticity,
accountability, interacting and this idea of the people-
powered, or the social web.”
- Dorion Carroll (VP of Engineering, Technorati)


Interacting Producers and Consumers

Its not about the
browser anymore.
Vibrant, two-way
communication
among all
contributors and
users, in all
locations
Acomplete
interactive
marketplace for
ideas, experiences,
and commerce


Personalization

Real-time adaptive presentation of information and content
based upon user behavior.
Categories of personalization:
– Profile / Group based
– Behavior based
– Collaboration based

Methods of personalization:
– Implicit
– Explicit
– Hybrid


Syndication


Collaboration


Sharing

Self-publishing
Indexed
Tagged


Blogs


Forums/Discussion boards


Walled-Gardens/Branded Communities


Case Study: YouTube vs Hulu – We’re still using it wrong.

How YouTube changes the way you think.
We’re still using it as a broadcast model


Background: YouTube

Low-end production values/ user-generated content
Collaboration/Mashups
Community
Re-monetized network content


Background: Hulu

Focus on monetizing Network content
NBC on the Web
Focused Advertising – user preferences


YouTube: Key Elements

User-Generated Content
Flexibility: Anytime/Anywhere
Community
Syndication
Collaboration
Sharing
Forums/Discussion Boards
Monetized Content
User Preferences


Case Study: Google AdWords, iTunes and the AppStore

Google Ad-words: Applying Continuous Feedback to the Sales
Cycle; iTunes and the App Store:
(Recommended reading: The Secrets of Googlenomics;
Wired Magazine; June 2009: pp 107-115)


Google AdWords

Allows multi-platform
content producers
to monetize their
content

Ads display based on
natural relevance to
on-page content


iTunes

The new driving-force
within the online
entertainment
industry
Successfully monetized
online sharing of
music, video
The basis for the iPhone
and the AppStore


Case Study: AdWords, iTunes, & AppStore – Background

Google AdWords –
Started as search engine.
Created a economy in which the line between buyer and
seller blurs
iTunes –
Started as music management application for the iPod
Transformed into online distribution network
Incorporated user feedback to drive product offerings
AppStore –
Started as an extension of iTunes for online delivery of apps
to the iPhone.
Transformed into revolutionary on-demand delivery platform
that enabled anyone to develop and distribute software.


Thank you!

Tom Bennett
tbennett@thenewgroup.com
@tom_bennett

Toby Paul
toby.paul@thenewgroup.com


The New Group SM Opportunities

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