Web 2.0: A Strategy Guide, 1E


Chapter1

Users Create Value . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1


  • Alvin Toffler – predicted the “prosumer”
  • Now “uploaders” provide “collective user value” – example Flickr
  • Value added by uploading (content) and tagging (organization) –p1
  • Collective User Value and Positive Network Effects – “Flickr’s system improves continuously, multiplying positive feedback, on the basis of active and passive clicks of multiple users navigating the site, sharing photos, creating user-defined tags and clusters of tags, collaboratively filtering and ranking, holding group events, syndicating photos to other sites, and blogging.” – p6
  • “Frequent interaction builds community, trust, and self-policing norms” – p7
  • Six ways Flickr created User Value Through Interaction
  • O’Reilly – Don’t build appliations. Build contexts for interaction.
    • 1. Open up digital content to global user interaction.
    • 2. Create better search through user-generated information.
    • As Stewart Butterfield said:
    • The job of tags isn’t to organize all the world’s information into tidy categories. It’s to add value to the giant piles of data that are already out there.
    • 3. Discover and explore through online groups.
    • 4. Catalyze and amplify group social network effects
    • 5. DIY self-service syndication
    • 6. Encourage others to become part of your digital ecosystem

Chapter2

Networks Multiply Effects . . . . . . . . . . . . . . . . . . . . . . . . . . . 39


Chapter3

People Build Connections . . . . . . . . . . . . . . . . . . . . . . . . . . . 69

“Facebook focuses on relational clusters and existing groups and circles of friends: MySpace is targeted at helping users find new friends – discovering social affinity groups related to music, bands, and artists.”

Chapter4

Companies Capitalize Competences . . . . . . . . . . . . . . . 107


Chapter5

New Recombines with Old . . . . . . . . . . . . . . . . . . . . . . . . . . 129

“Christensen defines disruptive innovation as a “sleeper” technology that poses an unanticipated threat to industry incumbents, as the new entrants initially satisfy only the requirements of a niche or an emerging low-performance, low-end market.” – p130
  • • “incremental innovation” – old technology in old markets
  • • “radical innovation” – new technology in new or emerging markets
  • • “architectural innovation” – old technology in new markets, recombining and repackaging existing technologies within redesigned system and product architectures to reach new market segments and niches.

Old division
  • • Competence-enhancing = increases the value of the organization and intellectual assets already in-house
  • • Competence-destroying = destroys the value of the organizational and intellectual assets a company possesses

Competitive innovation matrix
  • • Crowds of users - User-led or democratized innovation
  • • Dissimilar companies – recombinant innovation
  • • Crowds collaborating to solve problems for companies – crowdsourcing
  • • New platforms on which innovataion can evolve – open source, ecosystem and platform innovation

“the keys to democratized innovation in the online collaborative world are the wide distribution, ease and low cost of tools for innovation, combined with the tools for interaction and communication.” – 136

“Crowdsourcing or crowdcatching is s problem-solving and idea-generating process in which a company throws out a well-specified problem to a selected crowd or group of people for solution.” – p 136 (Goldcorp, Threadless)


Chapter 6

Businesses Incorporate Strategies. . . . . . . . . . . . . . . . . 157

5 Steps to Web 2.0
  • 1. Build on collective user value
  • 2. Activate network effects
    • a. “Where are all the likely and unlikely places and groups that could generate positive network effects?
    • b. “How an you multiply and compound your network effects, creating increasing returns, using powerful dynamic pricing demand-side effects and developing n-sided cross-network effects?”
  • 3. Work through social networks
  • 4. Dynamically syndicate competence
  • 5. Recombine innovations

  • Look around while moving forward