Web 2.0 The Evolution and Growth of the Interactive Internet
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1 The Evolution and Growth of the Interactive Internet AUTHORS Sanjeet Joshi Senior Technical Architect ATS HCL Technologies, Bangalore Subramanyam B S Lead Researcher ATS Technical Research HCL Technologies, Chennai
2 Title: Web 2.0 The Evolution and Growth of the Interactive Internet 2008, HCL Technologies Ltd. September, 2008 Page2
3 Table of Contents Introduction... 4 What really is Web 2.0?... 5 Components... 8 The Reach of Web Growth by Technology Growth by Geography Growth by Focus Growth by Business Segments A Closer Look at Some Industry Growth Areas Typical Web 2.0 Implementation Technology Considerations Typical Features of a Web 2.0 Application Challenges Conclusion Page3
4 Introduction The dot com bubble that burst in 2000 seemed to signal the end of one phase of the Internet era. One line of thought attributed the collapse to a rationalization that occurs, as technology matures. Some Internet companies, however, continued to thrive and grow. The term Web 2.0 was just meant to be a catchy expression for the subject of a conference. Web 2.0 has now become a buzz word and conjures up images of Amazon, GoogleApps, Facebook, YouTube, Wikipedia, social networks, wikis, blogs, Really Simple Syndication (RSS), mashups, collaboration and cooperation among other things. In today s highly competitive global economy companies operate in a fastpaced environment. Daily work depends on virtual teams that span different geographies and time zones. Today s generation is spawned in the digital age and concepts of trust, collaboration, and using the Web as a platform, fit naturally with the Web 2.0 approach, often leading to increased productivity and high innovation. This paper takes the reader through a brief description of Web 2.0 and its components and explains how Web 2.0 has thrown open new opportunity areas for business in domains such as pharma, retail, travel, mobile, tourism, and entertainment to mention only a few. Page4
5 What really is Web 2.0? There are different opinions on Web 2.0 a Google search for Web 2.0 definitions yields 812,000 results, while a Google search, posing the question What is Web 2.0? yields 69,500,000 results! Some industry commentators think of Web 2.0 as ʺa major trend that is building steadilyʺ others tend to feel that Web 2.0 is ʺa bagful of old technologies under a new nameʺ. 1 The term Web 2.0 was coined by Tim O Reilly and MediaLive International 2, in 2004, as a catchy name for a conference that sought to understand, the commonalities between the companies that had survived the dotcom collapse. In O Reilly s words, the purpose of the term was to understand if the dot com collapse marked some kind of turning point for the web, such that a call to action such as ʺWeb 2.0ʺ might make sense? According to O Reilly s description, Web 2.0 consists of a central core, to which a set of practices and principles are linked. The central core and the set of practices of Web 2.0 are shown in Figure 1. 1 Langley, Nick Web 2.0: What does it constitute? from what does it constitute.htm [May 2008] > represents when this site was accessed 2 O Reilly, Tim What is Web 2.0 from is web 20.html [May 2008] Page5
6 Figure 1: OʹReillyʹs concept of Web The general principles of Web 2.0 are listed below. The Web is a platform Users add value and data gets richer as more people use the data Users control data by harnessing collecting intelligence Services supersede packaged software in importance Services integrate across handheld devices, PCs, and internet servers Another view of what Web 2.0 is based on the evolution of the Web from its earlier format termed Web 1.0, to its current format. 4 3 Ibid 2 4 Rosas Guyon III, Louis Evolution of the Web from of web.html [May 2008] Page6
7 Web to now Web HTML Web pages Browsers E mail becomes ubiquitous as business tool Online stores Search engines Dot com boom (and bust!) Fast connections enable more vibrant content User generation of much of that content Online sales become a measurable and increasingly important part of the economy Key words to enhance search engine position Click through advertising Social networking sites create online communities and vastly enhance online marketing (including viral marketing) Wikis Wireless devices Figure 2: Evolution from Web 1.0 to Web 2.0 A few years later, in 2006, O Reilly described Web 2.0, as the business revolution in the computer industry caused by the move to the Internet as platform. 5 Even though we do not have a definitive statement on how Web 2.0 should be defined, there seems to be a general consensus that Web 2.0 has the following characteristics: 1. Data abstraction 2. Powerful personal computers and broadband 3. Focus on the needs of the user 5 O Reilly, Tim, Web 2.0 Compact Definition: Trying Again from 20 compact definition tryi.html [May 2008] Page7
8 4. Shift from one to many publishing model to a many to many or many to one model 5. Shift away from the request page/get page/view page technology. 6 According to Tim Berners Lee, the inventor of the World Wide Web we are simply at a later stage of Web 1.0 in that, if user interactivity (e.g., user generated content) and empowerment of users are what the Web is supposed to be about, then Amazon has been doing that since Components 8 Web 2.0 represents a fundamentally new technology value proposition and is not restricted only to blogs, tags, RSS, social bookmarking, wikis, and AJAX. It is also meant to enable media consumers and Web users to customize media and technology for themselves and for the Internet communities to which they belong. As illustrated in Figure 3, there are many technologies 9, delivery mechanisms, and operational models that are already in use for a range of purposes. 6 Carton, Sean, Web 2.0: What Is It Really from [May 2008] 7 Ibid 1 8 Zambonini, Dan, Why should you let Web 2.0 into your hearts from [May 2008] 9 The most popular technologies in the Web 2.0 world include: RSS, Blogs, AJAX, Wikis, Tagging and Social Networking. For further details on each of the aforementioned technologies, see: Krasne, Alexandra What is Web 2.0 Anyway from [May 2008] Page8
9 Figure 3: Components of Web 2.0 The Reach of Web 2.0 Data compiled by Technorati indicates that there are more than 112 million blogs and over 250 million pieces of tagged social media today. 10 According to a Forrester study, enterprise spending on Web 2.0 technologies is estimated to reach USD764 million in 2008, and it is expected to grow at a 43% compound annual growth rate, to reach $4.6 billion globally in See: [May 2008] 11 See: web 20 market to reach 46b in /forrester global enterprise web 20 spend by technology jpg/ [May 2008] Page9
10 Growth by Technology Figure 4: Current Share of Different Web 2.0 Figure 5: Projected Share of Different Web 2.0 Technologies in Technologies in Growth in Web 2.0 is expected to be led by social networking, as organizations look to improve expertise location, relationship management, collaboration, and innovation by providing easy access to tools that effectively help users manage their relationships. 14 Mashup tools that are used to deliver applications by leveraging the resources of the local SOA and global SOA are expected to follow close behind in growth. Growth by Geography 15 According to the findings of a McKinsey survey, American companies are not poised to be Figure 6: Region wise growth in adoption of Web 2.0 Technologies 12 See: Hincliffe, Dion 12 Predictions for Enterprise Web 2.0 in 2008 from [May 2008] 13 Bughin, Jacques and Manyika, James How businesses are using Web 2.0: A McKinsey Global Survey, Ibid Ibid 13 Page10
11 the leaders in embracing Web 2.0 in coming years. Leading the way are Indian firms, 80% of which plan to increase their investments in Web 2.0 over the next three years, compared with 69% of Asia Pacific firms, 65% of European firms, 64% of Chinese firms, 64% of North American firms, and 62% of Latin American firms. Growth by Focus Enterprise spending, at present, is more on employee collaboration tools than customer facing Web 2.0 technologies. This trend is expected to reverse by Figure 7: Global Enterprise Web 2.0 Spend Growth by Business Segments Retail leads the industry segments in its intent to adopt Web 2.0 technologies and tools. Retail is followed by High Tech, Telecommunications, Financial Services and Pharma. 17 Figure 8: Adoption of Web 2.0 by Industry 16 Ibid Ibid 13 Page11
12 A Closer Look at Some Industry Growth Areas The popularity of user driven online services, such as Wikipedia and YouTube, has drawn attention to Web 2.0. McKinsey survey findings indicate that companies consider Web 2.0 technologies easy to implement, flexible vis à vis top down approaches, and as having strategic benefits. 18 It appears that Web 2.0 has even impacted the 2008 presidential election in the US by making politicians accessible and bringing them under closer scrutiny. 19 The Changing Retail Market The earlier paradigm of the marketer communicating with customers and turning them into buyers has changed with Web 2.0. Consumers now largely go by The opinion of a friend who has used the product Consumer reviews on retail site Consumer reviews on third party sites Online reviews by editors of third party sites McKinsey Global Survey How Businesses are Using Web 2.0 from sing_web_20_a_mckinsey_global_survey_1913?gp=1 [May 2008] 19 The Times of India, Chennai edition (India), June 02, 2008 User friendly Politics: Web 2.0 is changing the way campaigns are conducted : 20 See: Forrester Consumer Forum2007 Web 2.0 Poised to cross the Chasm in 2008 from Forrester Consumer Forum 2007Web 2.0 Poised to Cross the Chasm in 2008.html [May 2008] Page12
13 Blogs in the Retail segment not only offer inputs from users, but also instantly update information and user reviews, to help increase loyalty and attract serious buyers. The popular mantra for success in Retail seems to be: assess what your customers are doing; decide what you want to do; plan how customer relationships will change; and then decide what technologies to use. 21 Financial Services The adoption of Web 2.0 features among financial service providers has so far been low, when compared to Retail, because of security issues. 22 Financial service providers have adopted Web 2.0 features such as Data feed mechanisms (e.g., RSS/Atom feeds) Podcasts and videocasts Branch/ATM locator mashups RIA to enrich user experience Pharma Marketing, communication, condition specific communities and health focused sites lead the adoption of Web 2.0 approaches in Pharma. Blogs are used to create an environment in which users can share information, and not for promoting any particular product. Podcasts can be used to engage consumers by relaying condition or lifestyle content. 23 The mantra for success in Pharma seems to be: try out the approach internally, with a small target group to understand the opportunities and risks of 21 Ibid 22 Kolhatkar, Ajay, Practice Before You Preach from 23 Roner, Lisa, Feb 2007 Web 2.0 A New Frontier for Pharma? Page13
14 a Web 2.0 approach, prepare to cope with adverse contributions and develop plans to counter criticism, before going live with the solution. 24 Travel Travel research indicates that about 6 in 10 leisure travelers use the Internet or an online service to obtain information and prices. Among users who seek information on the Internet, more than a quarter have visited a blog to review information about a destination or travel service supplier. 25 Travel communities, blogs, podcasts, social networking sites, online video, RSS, mashups and AJAX are all useful to enhance user involvement and experience. Blogs are perceived as a personal communication channel, and visitors, rate blogs over corporate Web sites as an impartial source of information. The mantra for success in the Travel domain: The consumer is king. Allow customers to decide how they want to create, read or consume information by engaging with them to build loyal communities, and maximize online revenue. 26 Typical Web 2.0 Implementation Technology Considerations A Web 2.0 implementation has at its core a Web based application that is built using standard Web based technologies such as the J2EE stack. A Web 2.0 application emphasizes usability, scalability, security, and availability and has functional and non functional features that are 24 Ibid 25 Hepburn, Craig, Web 2.0 for the Tourism & Travel Industry 26 Ibid 25 Page14
15 specific to Web 2.0 applications. The technology considerations in a multitier architecture are The Presentation Layer The user interface (UI) layer in a Web 2.0 application lays emphasis on being responsive, user friendly and dynamic. The technology choices that are used to support this requirement can either be open source based AJAX based toolkits and Google Gears or commercial options such as AIR, Flex, and Smart Client. These technologies enable fast development of Rich Internet Applications (RIA) and provide dynamic Web UI components. Some key aspects of a functional UI are Zero page refreshes Auto complete features Instant feedback to user actions Drag and drop features UI customization The Business Logic Layer A Web 2.0 application provides the required infrastructure services to its users to enable the online content creation. Implementing these services as Web Services enables consistence, reusability and platform independence in the integration approach for internal and external use. An alternate way of providing infrastructure services is to adopt a SOA based approach. The business logic layer provides the following features: Page15
16 Services to publish the user generated content to the outside world Services to manage content Content aggregation features to build mashup UIs. Infrastructure services to host multimedia content Services for managing advertisements Social API and containers for developing social applications Applications like Google Search Engine provide a SaaS like interface that has a UI to access the search features and the output in some format (SRP). This type of service is non transactional. Such services can be continuously improved without having to worry about issues related to distribution, licensing etc. Database Layer The choice of the database and the data architecture are critical factors in a Web 2.0 application as they tend to be data intensive. Twitter.com, a popular social networking site, is unstable due to incorrect architectural choices for the database and business logic layer. However, Google uses the file system that it developed, the Google File System (GFS) to cater effectively to extremely large volumes of data with very high performance requirements. Typical Features of a Web 2.0 Application Each Web 2.0 application provides different features based on the purpose of the application. Some generic features are listed below. User Generated Content Page16
17 Web 2.0 applications provide a platform that uses distributed storage service providers such as Akamai or Amazon S3, for registered users to create and share online content, such as blogs, wikis, forums, photo albums and so on. This user content is hosted on a website and can be viewed by anyone online. These platforms help minimize the load and improve the performance of the applications. Folksonomy Folksonomies are similar to taxonomies, except that in a folksonomy the content is categorized based on tags created by the online community. Folksonomies provide features such as search and online catalogues. Mashups A mashup is a web application that combines data from more than one source into a single integrated tool. Content used in mashups is typically sourced from a third party via a public interface or API (web services). Other methods of sourcing content for mashups include Web feeds (e.g. RSS or Atom), and screen scraping 27. A mashup web application is comprised of the following three parts: 1. A content provider that acts as the source of the data. Data is provided using an API and different Webprotocols such as RSS, Representational state transfer (REST), and Web Service Screen scraping is a technique in which a computer program extracts data from the display output of another program. The program doing the scraping is called a screen scraper. P age1 7
18 2. A mashup site which is the web application that provides the new service by using different data sources that are not owned by it. 3. A client web browser that acts as the UI for the mashup. In a web application, the content can be mashed by the client web browsers using a client side web language such as JavaScript. Network Activity Updates Online communities create a sense of connectedness by using online messages or RSS to update everyone in the network about the status/activity of other community members in the network. A publishsubscribe based messaging infrastructure is used to create an activity feed and then update the feed to reflect the activity on the UI and in the RSS feed. Social Apps and Gadgets Social Apps and Web Gadgets such as Google s Gadget API and OpenSocial API help build simple applications that work within the social networking platform, and can be installed on the fly by anyone who has access to it. Challenges Since Web 2.0 services are user driven, they tend to be unstructured and uncontrolled. Traditional IT applications, in contrast, are controlled and structured. Companies that intend adopting a Web 2.0 strategy need to Understand and follow the philosophy that drives Web 2.0, and not just adapt the technologies that make up Web Page
19 Retain the balance between the ad hocism of Web 2.0 and the controls of the traditional approach to IT Leverage the concept of community value creation Include this online value in their value chains to realize its impact on their businesses Conclusion In a four year period beginning from May 2004, the Internet has grown from approximately 757 million to 1412 million users. One aspect of this growth has been the creation of opportunities for companies to market their services and products across the globe by customizing content that appeals to specific demographics. As companies grow globally, the workforce gets dispersed and mechanisms that help collaborate and coordinate their activities effectively are needed. Web 2.0 offers a framework to handle these aspects of doing business. The term Web 2.0 was coined in the year 2004 and includes most things that we are familiar with blogs, wikis, social networking, RSS, tags, AJAX and so on. These technologies represent a fundamental change in approach to Web content the shift from the one to many model of publishing to the many to many or the many to one model. From an enterprise perspective, blogs, wikis, and communities of practice lead the Web 2.0 initiative, simply because they enable knowledge sharing, and assist in coordinating the work of geographically dispersed teams. On the business front, industry segments such as retail and travel have leveraged the benefit of user driven content. Social networking and interactive feedback recreate the ambience of real life shopping. Blogging Page19
20 and photo sharing capitalizes on the natural desire of people to consult each other prior to taking a decision on say, a holiday or a hotel to stay in. While Web 2.0 tools offer a range of options to promote business, certain segments such as financial services and insurance have displayed caution in adapting to Web 2.0 because of security concerns. Studies indicate that many companies are unsure about where to begin their effort on adapting Web 2.0 and are unclear about the implications of adopting a Web 2.0 strategy for the companyʹs business models. Opportunities exist for consultancy organizations that can aid these companies by analyzing their current setup, and then devising and implementing their Web 2.0 strategy. Page20
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