1. Economics 2.0
Highly Effective Strategies for Putting Your
Business on a Recession Diet
Dion Hinchcliffe

2. Introduction
Dion Hinchcliffe
• ZDNet’s Enterprise Web 2.0
• http://blogs.zdnet.com/Hinchcliffe
• Social Computing Magazine – Editor-in-Chief
• http://socialcomputingmagazine.com
• Enterprise 2.0 TV Show
• http://e2tvshow.com !
• •Hinchcliffe & Company
http://hinchcliffeandco.com
• mailto:dion@hinchcliffeandco.com
• Web 2.0 University
• http://web20university.com
• Twitter: dhinchcliffe

3. The Plan
• 9:00am - noon
• Break at 10:15am
• Twitter tags #w2e and #econ2
• Google Moderator
• http://bit.ly/econ2questions
• Slides at dion@hinchcliffeandco.com

4. Overview
• Exploration of new ways of doing old things
• New economic, social, and cultural models
• With an emphasis on 2.0
• Pragmatic exploration of how they promote
resilient, sustainable business models
• We’ll look for evidence that they work.
• Or debunk them.
• Or just confirm they are promising.

5. The Map of Opportunity
Innovation Growth
Creating new rapid
growth online products
Leveraging Innovation
• Product Incubators powered by:
• Open Supply Chains • Peer Production
• Product Development 2.0 • Jakob’s Law
• Some Rights Reserved • The Long Tail
• Blue Ocean
Reinventing the
• Network
Fostering customer relationship
Effects
Innovation to drive revenue:
• Customer Communities
• Internal Innovation Markets
• Customer Self-Service
• Open innovation
• Marketing 2.0
• Database of Intentions
Current
Business
State Driving costs down through
Change Management
less expensive, better 2.0
• Transformation Communities
solutions:
• 2.0 Education
• Capability • Lightweight IT/SOA
• Enterprise mashups
Acquisition
• Expertise Location
Improving
• Knowledge Retention
Business Remodeling productivity and
and Restructuring access to value:
• BPM 2.0 • Enterprise 2.0
• Employee Communities • Open APIs
• Cloudsourcing • Crowdsourcing
• Pull Systems • Prediction Markets
Cost Reduction
Transformation

6. The major shifts
• In who creates value (the network does)
• How much control we have over our
businesses
• How intellectual property works
• Great increases in transparency and
openness
• Open supply chains, community-based
processes and relationships

7. Avoiding “cargo cults”
• Cargo Cult n. A
group conducting
rituals imitating
behavior that they
have observed
among the holders
of desired objects.

8. Evaluating candidates
• The criteria:
• Cheaper: Less waste, more
efficient, and lighter weight.
• Better: Faster, richer, and
other intrinsic improvements.
• Innovative: New types of
products and services, different
lines of business. A future.

9. The challenges
• Cultural “chasms”
• Disruption
• Cost
• Risk
• Difficulty
• Repeatability

10. However, it’s usually a
people problem:
The biggest challenge is in
changing our thinking

11. Rating the Economics 2.0
contenders
Challenges Repeatability
Ready for Wide
Questionable
Adoption
Value
Ideal for Early
Adopters
Suitable for Strategic
Experimentation Industry Play
Uncertain Results Proven Benefit

12. The network is a
big place today
• All your customers
• All your competitors
• All the ideas and
innovation
• Only a few proven
strategies for long-term
competitive advantage

13. Never before reached level of
scale is driving new changes

14. Likely candidates (social media
in the
enterprise)
Enterprise 2.0 &
Product Development 2.0 Open Business Models
Product Development
Marketing
crowdsourcing
Sales
online cloud computing
Customer Service
community mashups
open APIs
SaaS
Line of Business
2.0
development
Operations | IT | Back Office
platforms

15. No small system can withstand
sustained contact with a much
larger system without being
fundamentally changed.

16. The motive forces of
21st century economics
^
at we
th
of so
know
• Network effects
far
• Peer production
• Self-service
• Open business models
• New social power
structures

17. What is a Network Effect?
• A network effect occurs when a good or service has
more value the more that other people have it too. -
Wikipedia
– Postal Mail
– Phones
– E-mail
– Instant Messaging
– Web pages
– Blogs
– Anything that has an open network structure

18. Building Sustainable Value
• Even small network have large
potential network effects
• But very large networks have
astronomical network effects
• Recent Discovery: Reed’s
Law, which say social use of
networks are by far the most
valuable

20. Social Business
(aka Enterprise 2.0)

22. Modern Social Computing:
Enterprise 2.0
• Concieved by Harvard Business School Professor
Andrew McAfee
• Defined as emergent, freeform, social
applications for use within the enterprise
• Primarily to improve the collaboration problem
(discussed shortly)
• The use of blogs and wikis to capture institutional
knowledge, make it discoverable and let structure
and organization emerge naturally

23. Applying the
“Web 2.0 effect” at work
• Enterprise 2.0
Enterprise 2.0 systems adapt
– Globally visible, persistent collaboration to the environment, rather
than requiring the
• Employees, partners, and even customers
environment to adapt to it.
• Leaves behind highly reusable knowledge
– Uses wikis, blogs, social networks, and other Web 2.0
applications to enable low-barrier collaboration across
the enterprise
– Puts workers into central focus as contributors
– Case studies of early adoption consistently verifying
significant levels of productivity and innovation

24. Perceived Benefits Of
Enterprise 2.0
• Increased knowledge retention
• More adoption and use of knowledge management
tools
• Emergent structure and processes
• Increased transparency
• Less duplication of effort
• Higher level of productivity

25. Why is
Enterprise 2.0
different?
• Maturation of techniques that
leverage how people work
best
• Realization of the power of
emergent solutions over pre-
defined solutions
• Nearly zero-barriers to use
• Low cost
• Network effect driven

26. The Enterprise 2.0 Checklist
• SLATES
–Search
–Linking
–Authorship
–Tagging
–Extensions
–Signals

27. SLATES unboxed...

28. Enterprise 2.0: Richer
Outcomes

29. Push vs. Pull Based Systems

30. Two more important reasons
for Enterprise 2.0
• Non-interruptive and leveragable...

31. Challenges:
The enterprise is not the Web
• We want to replicate the positive
aspects of Web 2.0 platforms in
the enterprise
• But our infrastructure is usually
not very Web-like, creating
significant impedance and diluted
results
• Requires augmentation and
adaptation to reproduce the same
or similar results

32. Enterprise 2.0 Ecosystems
Enterprise 2.0 Peer Produced
participation
Applications Knowledge
Blogs and Wikis Internal Applications and
Industry Social Network
(Social Media)
Databases
deeply
linked
structure
Prediction Markets
Other Web 2.0 Tools
(External and Internal)
(del.icio.us,
Flickr,
Twitter,
Friendfeed) Enterprise Mashups
Enterprise Social
Integrated Search
Network

33. Significant Motivation Exists
To Adopt Enterprise 2.0
• Increased levels of productivity that were inaccessible until now
• Enablement of tacit interactions on a previously unknown scale (Source:
McKinsey & Company)
Enterprise 2.0 has
the potential to
increase productivity
in complex
interactions, where
previous attempts
have largely failed

34. Enterprise 2.0 Benefits

35. • Hundreds of Enterprise 2.0
projects exist worldwide currently
• Based on aggregation of all known contacts and
citations
• Many implementations are not “official” pilots
• Anecdotal evidence and market research both indicate
SMBs are slow to adopt
• 1/3rd of enterprises as of this year
• But large enterprises are buying...

36. The majority of Global 2000 firms
are now buying Web 2.0 tools

37. • Early success stories emerging
• Case studies now exist from:
• Bank of America, Boston College, Dresdner Kleinwort
Wasserstein, IBM, Janssen-Cilag, Motorola, Northwestern
Mutual, P&G, Siemens, SAP, T. Rowe Price, U.S. Hospital, Volvo,
Wells Fargo, and many others.
• Most results are very positive
• Generally reporting better communication, improved cross-
pollination and leverage of knowledge, higher productivity,
and few of the early expected problems
• Other results harder to pin down: better innovation

38. Enterprise 2.0:
The bottom line
• Repeatable
• Medium Risk
• Proven Benefit Ready for Wide
Adoption
• Rapid ROI
• New Transunion Enterprise
2.0 case study with dramatic
ROI: $3.5M recoup in 5
months with $50K
investment: http://bit.ly/O74W

39. Open Supply
Chains also
n as
know
APIs

40. vs. :
The Platform Overtakes the Web Site

41. Example: Amazon
• 1st Gen. Product: E-commerce store
– No differentiation
– Scaling of a single site
– Single site
• 2nd Gen. Product: E-commerce platform
– 55,000 partners using their e-commerce APIs live
– Scaling of the Web
• 3rd Gen. Product: A series of Web platforms
Simple Storage Service (S3)
–
S3
EC2
Elastic Compute Cloud (EC2)
–
Mechanical Turk (Mturk)
–
Many others
–
300K businesses build on top of what they’ve produced
–
• 2nd and 3rd generation platforms generate large net revenue

42. Tour
• http://programmableweb.com

43. Open Platform vs.
Closed Platform

44. The Market Share
Opportunity
• The vast majority of Internet user activity is
elsewhere, on 3rd party Web sites and applications
• If firms could reach this traffic, the growth potential is
as large as the Web itself
• Reaching this traffic before competitors do can
result in successful marketshare “lock-out”
• Businesses able to cost-effectively integrate with a
large number of partners to grow
• Access and offer value to existing ecosystems of
customers

45. Opportunity:
Going To the Customer
and Open Web APIs
Tens of Thousands of Dynamic Web Partners
Partner Partner Partner Partner Partner
Partner Partner
New Business
Division:
Partner Partner Partner Partner Partner Partner
Partner Partner Partner Partner Partner
Additional
Interact
Partner Partner Partner Partner Revenue via
Usage Fees,
+
Live Web
Advertising, etc.
$$$
Integration
Open API Monetization
Boundary
+
Online Business Direct Revenue
Consumer or
Business Interact

46. Platforms vs. Applications
Distribution Models Target Audiences
Consumers
Native App
existing
Small Businesses
Web Application
Medium-Sized Business
Open Widgets
Power/Web Saavy Users
Facebook/Open Social
Developers
Web API
SDK, Developer Community, SLA,
Businesses
Billing

47. Platforms vs. Applications
Distribution
Distribution Models Order of Magnitude Method
10M Users Push
Native App
10M Users Pull
Desktop Client API
Open Widgets
10-20M Users Pull
Facebook/Open Social
Open Web API
100M+ Users Pull
SDK, Developer Community, SLA,
Billing

48. Key API Goals
• Leveraging existing investments as much as
possible (reduce rework in design and architecture)
• Protect intellectual property around proprietary
capabilities
• Select API model that will result in 1) the most
developer uptake and 2) access to the largest
possible audience
• Selecting a discriminating factor (rich vs. reach)
• Scope: Graduated capability vs. full initial API

49. The Distribution Opportunities
3.5 billion wireless users
- 40+ hw/sw platforms
- high distribution impedance
- highly variable run-time
- many carriers and rules
- limited run-time capabilities
1.3 billion internet
users
- ie, firefox, mozilla, safari, opera
850 million PCs - lowEST distribution impedance
- windows, mac, linux - 99% flash penetration
- medium distribution impedance - zero footprint
- anti-virus - some run-time limits
- admin rights
- end-user knowledge
- rich runtime capabilities
flash 99.9%
Silverlight 10%
Java web start 5-50%

50. Long-term future usage
breakdown w/API
Other Apps
• Reach every distribution
Embedded Apps
Web Mobile Apps
channel possible
Web Widget Apps
• Leverage 3rd party customer
iPhone Apps
bases
Open Social Apps
• Cut off competitor’s growth
OPPORTUNITIES
3rd Party Web Apps
• Ride the MAXIMUM
POTENTIAL growth curve
Facebook Apps
• Harness innovation of
Existing Web Site or hundreds and thousands of
3rd party developers
Application

52. Reasons Developers Select
APIs
Key to initial adoption Key to long-term adoption
• Provides access to • Reliable, well-known, scalable
functionality not possible provider that is trusted
to develop internally
• Developers can get answers to
• Easy to use and integrate
questions, support, and
with
problems fixed when bugs are
• found
Good documentation and
easy to get started
• Strong user base for 3rd party
developers to tap

53. “Platforming” Your
Business
• Requires opening the server-side to 3rd party
developers
• Allowing the construction of widgets and Web apps
offering some or of all of your functionality by
external partners
• Harnessing the innovation on the network
• Generating the greatest potential reach, competitive
lock-out, market share, and revenue

54. Open Supply Chains:
The bottom line
• Good repeatability
• Can be costly Strategic
• Unproven in Industry Play
certain industries
• Proven ROI

55. Mashups

56. A Short History of
Software

57. Connecting people and data
• SOA is a modular software architecture, and the modules are
services designed to interact with each other.
– Important Note: SOA also contains higher order constructs such as
composite applications, orchestration, coordination, and more exist.
• We tend to rely on open standards to encourage automatic
interoperability of services designed separately.
– A good SOA could still violate this rule however
– See Thomas Erl and Seven Principles of SO

58. Key Points
• Gartner has reported that Service-Oriented Architecture is
the leading organizing principle in the enterprise space, with
80% of all development using SOA principles in 2008.
– They’ve also said that all organizations should have begun getting their
lines of business on a Web 2.0 architecture by 2008
• McKinsey and the Sandhill Group report that Web 2.0 in the
enterprise will be one of the major disruptive influences in
enterprise software in the late 2000’s.

59. A key Goal of Web 2.0 and SOA:
Turning Applications Into Platforms
• Openly exposing the features of software and data to customers, end-users,
partners, and suppliers for reuse and remixing
• This strategy requires documenting, encouraging, and actively supporting the
application as a platform
– Has serious governance implications
• Provide legal, technical, and business reasons to enable this :
– Fair licensing, pricing, & support models
– A vast array of services that provide data that uses need
– A way to apply these services to business problems rapidly and inexpensively.

60. But existing integration models
have been challenged
• Most SOA initiatives are delivering low ROI to the business
• The reasons are many but boil down to:
– SOA technologies have proven to have challenges compared to more
successful models.
– Top-down enterprise architecture moves slower than the environment
changes.
– Important avenues of SOA consumption and production points were often
excluded from participation.

61. The results of a large new
SOA effectiveness study:
•“It has become clear to me
that SOA is not working in
most organizations.”
– Anne Thomas Manes,
Burton Group

62. Demand for Breadth
Integration
• “48 percent of the
CIOs we surveyed
said that they plan to
implement service-
oriented
architectures for
integration with
external trading
partners this year.” –
McKinsey & Co.

63. And we now have real-world experience with
traditional means of connecting to our data
• Traditional Web services
was a good first try but has
a long list of challenges for
the outcomes we desire
today.
• The model of the Web has
continued to teach us about
how to structure
information and services.

65. Strange Attractors: Similarities
between Web 2.0 and SOA
• Web 2.0 • SOA
– Software as services
– Software as a service
– Interoperability based on
– Interoperability based on Web heavyweight standards
principles
– Applications as platforms
– Applications as platforms – Permits unintended uses
– Encourages unintended uses – Composite Apps
– Little user interface guidance
– Mashups
– Little prescription of user
– Rich user interfaces participation
– Architecture of Participation

67. Enabling New
Consumption Scenarios
• Cut-and-Paste deployment
anywhere on the Intranet
• Consumption of the SOA in
any application that can use
a URL
• Discovery of data via search
• Integration moves out of
the spreadsheet

68. Definition: Mashup
• “A mashup is a Web site or Web application that
seamlessly combines content from more than one
source into an integrated experience.” - Wikipedia
• Content used in mashups is usually sourced from a
3rd party via a public interface (API)
• Other methods of sourcing content for mashups
include Web feeds (e.g. RSS or Atom), and JavaScript/
Flash “widgets”

69. Mashups
• Strong preference for reuse over coding
– Innovation in assembly is the core value instead of
ingenuity in coding
• Disruptive delivery model: Web-based with no install, no
plug-ins, no admin rights, etc.
• Design focus is at the glue instead of the functionality
• Emphasis on simple, easy-to-use Web technologies over
complex enterprise technologies

70. What’s happening on the
Web today
• The growth of Web sites with highly valuable
“portable” content and functionality
• Users putting modular Web parts on their blogs
and profiles to host the pieces of the Web that
they want to share
• By the tens of millions on sites like MySpace and
Facebook
• The increasing realization that there is limited
business value in being on a single site…

71. Connecting to and making
use of our data
• Building open platforms instead of stand-alone applications
• Forming self-distributing ecosystems
• Spreading products far beyond the boundaries of a site
– APIs, widgets, badges, syndication -> mashups
• In other words: Being everywhere else on the network
• Building on the shoulder of giants
• Leveraging widgets, libraries, and APIs from Yahoo!, Amazon, and
thousands of others and others
• The automated mass servicing of markets of low demand content and
functionality (The Long Tail)
• Which represents the bulk of the demand

72. The Global SOA has surpassed our
enterprise IT landscape
• Some businesses have hundreds of
thousands of users of their SOA
• Most are using WOA models for
this
• Hundreds of companies have
opened their SOA to the Web
– Mostly startups or established Internet
companies that understand the Web
– But larger companies are beginning to
understand this.

73. Examples
• Amazon and their highly successful Web Services Division (with
hundreds of thousands of business consumers of their global SOA)
– Over $300 million in revenue last year
• Google and its numerous and varied open Web APIs from Google
Maps to Google Data
• eBay and billions of dollars in listings it generates through its public
SOA,
• Applications like Twitter.com
– Gets 10 times the use through its APIs than from its user interface.
– A new generation of applications that are primarily used via their SOA presence.

74. With traditional methods, many (perhaps
most) software solutions are too
expensive to build or buy today

76. The Focus:
Rapid Business Solutions
• Full resources of the Web and
the Intranet
• Enterprise context around
management, security, privacy,
etc.
• Gives everyone in the
organization the ability to
leverage the SOA.
• Lightweight, simple model.
• Inexpensive and extremely
rapid results

77. Situating mashups in the
workplace:

78. Demo
• http://pipes.yahoo.com
• JackBe Presto

79. Mashups:
The bottom line
• Excellent repeatability
• Inexpensive Ideal for Early
Adopters
• Good ROI
• Unfamiliar to many
workers

80. Online Community

81. Eliciting participation
on the network
• Social media: A continuous stream of shared
(two-way) conversation and knowledge
• Online community: Groups of like minded
individuals creating value for themselves
• Collective intelligence: Shared information
built together on the network

83. The Premise
Customer engagement today
is much more than products
and their marketing
campaigns. It's a meaningful
emotional connection to a
company that helps
businesses the most.

84. Four levels of
community

85. Online community
• Lifestyle products and brands generate strong,
highly engaged communities on their own:
• Harley Davidson, IKEA, XM Radio, and hundreds
of others have large-scale, vibrant, customer
communities
• Many smaller examples: http://
www.travellerspoint.com/ is a typical example of
hundreds of vertical communities. It has over
150,000 registered users.
• People who deeply care about a product or brand
can now meet, share ideas, socialize, and help each
other.

86. Example:

87. What do online
communities do?
• People find and connect with each other based
on a common, shared idea
• Socialize, communicate, and collaborate on
topics that they care about
• Share ideas, experiences, stories, suggestions, etc.
• Draw others in by word of mouth
• Becomes an ideal vehicle for collective
intelligence and peer production

88. Marketing vs.
Community
• Customers and potential customers have the
greatest resources to market and sell the
product; if they only had the means.
• Traditional marketing and demand-generation is
enormously expensive; you have to do it all
yourself.
• The Web 2.0 solution: Passionate customers
and potential customers are the most powerful
resource in the world; tap into them directly.

89. The means and
methods
• Platforms:
• Drupal, Joomla,
Lithium, Crowdvine
• Community Management
• Tools:
• GetSatisfaction, Buzz
Monitoring, Social
Networks

90. The Three Essential
Strategy Components
Social Media: Online Collective
Community: Intelligence:
Continuous Online
Conversations Centralization of Using the network to
conversations. make the product
• Blogs
better
• Community Site
• Facebook Presence
• User Profiles
• • Customer Input
Social Messaging
• Voting systems
• Forums
• YouTube Interviews
• User Recommendations
• Discussion Groups
• Sponsored Content
• Valuable data:
• Social Media Content
• Highlighted Community • Desired features
(left)
Stories and Activities • New ideas
• Chat/Messaging
• • Actual usage data
Other Social Media
• Community Outreach

92. The Story of KatrinaList & XM Radio
• Hurricane Katrina
– Survivors emerged and announced
where they were on their blogs
– People watching the Web’s
syndication “ecosystem” noticed
the reports
– A small group collected the reports
out of the blogosphere and
centralized the listing
– Over 50,000 survivor reports in the
first 3 days after the disaster
– Emergent phenomenon
– A critical example for how to rethink
solutions to traditional problems in
a 2.0 world in which we can
actually tap collective intelligence
• XM Radio
• Community for Customer
Service

93. Online Community:
The bottom line
• Medium repeatability
• Can be costly
• Proven ROI
• Dramatically lower Ready for Wide
customer support Adoption
costs (10-30%)
• Better Customer
Satisfaction
• New customer
relationship

94. Open Business
Models

95. Network-Driven
Open Collaboration
Breeding New
Business Strategies
Methods:
Open Source
Open
Business
network effects
Methods
Open Data peer production
• Richest, most up-to-date, and
dynamic products & services
• Lowest cost of production
pull instead
of push
• Greatest degree of
UGC & Open innovation and diversity
Content • Ownership, control, and
self-service
monetization challenges
Enterprise 2.0
Online Community

96. Product
Development 2.0

97. Open business models are
transforming the market
• Product Development
• Marketing and Advertising
• Operations
• Customer Service

98. Examples
• Android
• Gold Corp.
• Crowdspring
• http://netflixprize.com
• Doritos UGC advertising
• http://OpenStreetMap.org

99. Sourcing Models
open
internally outsourced
sourced
sourced
peer production,
direct subcontracting,
Methods crowdsourcing,
assignment consortiums
open platforms
contractors,
Participants staff anyone
partners
Central Control high medium to high medium to low
Predictability best good lowest
Richness
adequate medium high
of Outcome
corporation, open source
Legal structure contracts,
copyrights, licenses, Creative
charters, etc.
& IP protection patents, etc. Commons, etc.

100. Open Business Models:
The bottom line
• Medium repeatability
• Medium costs
• Significant cultural Ideal for Early
Adopters
changes required
• ROI and control
challenges
• Major strategic benefits

101. 2.0-era platforms and
development tools

102. “My Web site is bigger
than your enterprise”

103. Today’s Software Applications
Are Also Extremely
Sophisticated
• Highly distributed and federated
• Have a social architecture
• Built from cutting edge platforms and parts
http://clickatell.com
• Have to scale globally
• Set with expectations that are very high for
Integrating with 3rd party
functionality and low for the cost to suppliers live on the Web
develop/own new apps as well as being a 3rd party
supplier is the name of the
• Created with productivity-oriented game circa-2009
development tools

104. There’s A Lot To
Master Today To
Create Credible
Products:

105. The application
“stack” is bigger now

106. Recent technological
innovations coming primarily
from the online world
• Cloud computing
• Utility/grid/Platform-as-a-service
• Non-relational databases
• S3, CouchDB, GAE Datastore, Drizzle, etc.
• New “productivity-oriented” development
platforms
• RIA: Flex/AIR, JavaFX
• Stacks: Rails, CakePHP, Grails, GAE, iPhone, etc.

108. Cloud Computing is just about
12 months old but changing the
game quickly
• Provides enormous advantages in
terms of cost and agility
• LAMP doesn’t have a solution for
providing economies of scale
• Complex governance
• Control, privacy, security
• Regulations
• Has reliability and fault-tolerance
implications
• 90% of organizations will have a cloud
computing application in pilot by 2010

109. Comparing Two of the Largest
“Platforms as a Service”

110. The cloud computing space today
r
le fo n
b
Suita entatio
perim
Ex
The new platform lock-in?

111. Non-relational
databases
•
• •
Like CouchDB, Mongo is a
CouchDB: Free, open-source, Drizzle began life as a spin-
document-oriented JSON
document-oriented database. off of the MySQL (6.0)
database, except that it is relational database.
• designed to be a true object
Derived from the key/value
•
database, rather than a pure key/
store, it uses JSON to define an Aim of creating a leaner,
value store.
item's schema. simpler, faster database
system.
• Meant to bridge the gap
•
between document-oriented Drizzle can still store
and relational databases relational data.
Ideal for Early
• •
Adopters
These views map the document The aim is a semi-relational
data onto a table-like structure database platform tailored
that can be indexed and queried. to web- and cloud-based
apps running on systems
with 16 cores or more.

112. The New Dynamic
Development Platforms
• The Web development industry has moved to a focus on
“productivity-orientation.”
• New platforms highly optimized for Web development
are emerging.
• These new Web development platforms embody much of
what we’ve learned in the last 15 years in terms of best
practices.
• However, like all platforms, they have tradeoffs, including
performance and maturity.

113. Performance of Dynamic
Languages Is An Issue Though

114. Ruby on Rails
• Ajax-ready but works with all RIA
technologies
• Automatic Object/Relational Mapping
• Sophisticated Model View Controller
Support
• Convention over configuration
• Radically-oriented around Web
development only
• Very high productivity (IBM verified
10-20x older platforms)
• Open source and free
• Runs major sites like Twitter
• One of the most popular new platforms
• Has clones in most other major languages
Ready for Wide
now. SaaS versions too: http://heroku.com
Adoption

115. CakePHP
• Open source Web application
framework written in PHP
• Works with all major RIA technologies
• Modeled after the concepts of Ruby on
Rails
• Not a port of Rails but extends the ideas
to PHP
• Stable, mature, and reliable
• http://www.cakephp.org/

116. Groovy & Grails
• Groovy is a dynamic language for
the Java Virtual Machine
• Has strengths of Ruby, Python, and
Smalltalk
• Runs anywhere Java runs
• Grails is a Ruby on Rails like
framework for Groovy
• Mature, stable, and relatively high
performance Ideal for Early
Adopters

117. Changes to the processes
that create architecture
• Increasing move to assembly and integration
over development of new code
• Perpetual Beta and “extreme” agile
• Community-based development and
“commercial source”
• Product Development 2.0

118. The Web’s Version
of Agile
Ready for Wide
Adoption
• Shadow Apps for real-
time feedback
• Customer-Sampling
and Live Testing
• Granular Versions
(constant evolution)
• Daily, even hourly,
releases

119. An extremely competitive
environment: Our architectures
must explicitly focus on
building network effects

120. New Distribution Models

121. How do we
re-imagine our
products and
services for
the 21st century?

122. Challenges to Transitioning to
New Architectural Modes
• Innovator’s Dilemma
• “How do we disrupt ourselves
before our competition does?”
• Not-Invented Here
• Overly fearful of failure
• Deeply ingrained classical software culture
• Low level of 2.0 literacy

123. What we often see in
the marketplace today
• Too many copy-cat products
• Failure of imagination and courage
• New architectural concepts as an after-
thought. Or tacked on as a “checklist” item.
• Companies that pay lip service to
innovation but are having trouble or
unwilling to make the necessary changes

124. The 1.0 world is having
its own problems
• The time is right for change now more than
ever before
• We all have to learn how to adapt quickly
to new marketplace realities
• Something that the (successful parts) of
network have been doing for a long time

125. Key Lesson:
We now have a
fundamentally new and
better set of lenses through
which to look at leveraging
value on the network...

126. • Push to pull systems
• Web 2.0 design patterns and business
models
• New modes of software, platforms, and
architectures
• Productivity-Oriented Platforms
• Web-Oriented Architecture
• New Distribution Models

127. The new Web 2.0 era distribution
models remain largely untapped
Number of Practitioners
Semantic Web/Web 3.0
Social Network Apps
Web Widgets
Open APIs
Web 2.0 Apps
Syndication
Web
Sites
Potential Reach Power
and Network Effect
(Lowest Cost Per Customer/Partner)

128. It’s time to change
our DNA
• Moving from the 20th century towards
21st century businesses
• Deeply understanding the network and its
profound potential for creating growth and
building value
• Putting 2.0 into the core of our lines of
business

129. The rewards are
considerable
• Products and services that are sustainable
• Successful transition to a rapid evolving
new marketplace
• Attaining of new, sustainable competitive
advantage
• Resilience to future change and ongoing
market evolution

130. Major Opportunities in 2009
• Redesign products and
services for the 21st
century.
• Strategically move IT
infrastructure to the cloud.
• Embrace new low-cost
economic models for SOA.
• Reduce application
development and
integration time/
expenditures with new
platforms and techniques.
• Open your supply chain to
partners on the Web.

131. Questions
Slides:
dion@hinchcliffeandco.com