06 Exploring The Borderless Web 2.0 Era

Web 2.0 Basics

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What Is Web 2.0?

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Definition• The term "Web 2.0" is commonly

associated with web applications that facilitate interactive information sharing, interoperability, user-centered design and collaboration on the World Wide Web. – Wikipedia

• A WWW environment which allows users to interact and create new business models when WWW interaction is not possible – Wesley Shu

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From Web 1.0 to Web 2.0

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Internet Features for Web 2.0

• Long Tail: see the Presentation• Ubiquity: Internet can reach

everywhere• Network Externality: Positive

feedback makes large networks get larger – demand-side economies of scale

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Metcalfe’s law: The value of a network goes up as the square of the number of users.

Internet Features for Web 2.0

• Zero marginal cost• Transaction cost – search,

contract, coordination

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Examples to Show Difference

• MapQuest vs. Google Maps• Britannica vs. Wikipedia• Alta Vista vs. Google Search• Online Translation Sites vs.

Google Translator

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The world is our market.

The world participates with us.

The World Participates with Us

• Wiki – Wikipedia• Mass Collaboration• Soft Security

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Wikipedia Basic Principles

• Hawaiian “Wee Kee Wee Kee,” means fast

• The Interface is the web browser, cf. FrontPage or Dreamweaver

• Collaboration instead of protection

• Wiki Demonstration 10

Wikipedia Basic Principles

• Mass collaboration – everyone in the world is our collaborator.

• Simple editing• Real Time• Version preservation• Rollback• Discussion

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Wikipedia Basic Principles

• Soft security–Built on “Network

Externality”

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Wikipedia Basic Principles

Soft security• Nature * - comparing the

accuracy of 42 science entries in Wikipedia with that of the online Encyclopedia Britannica.

• Each had four serious errors• Wikipedia had 162 minor errors;

Britannica 123• Wikipedia can revise immediately13

* Giles, J. " Jimmy Wales' Wikipedia comes close to Britannica in terms of the accuracy of its science entries, a Nature investigation finds," Nature, Volume 438, Number 7070, p900, December 15, 2005.

Wikipedia Basic Principles – Soft Security

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Time Mass Soft Security

Self Adapting

Wikipedia Basic Principles – Soft Security

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• Laozi, “ 天下莫柔弱於水，而攻堅強者莫之能勝，以其無以易之。”

• Under heaven nothing is more soft and yielding than water. Yet for attacking the solid and strong, nothing is better; For they can find no way of altering it.

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Security is achieved by hard-core protection.Soft-security protects us.

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PC

Internet

Internet

Internet

Internet

PC is a transactional platform, and the Internet is its extension.

Internet

PC

TV

Classroom

Smartphone

The Internet is a platform, and PC is only its interface.

Syndicator

• Jimbo Wales’ job: syndicator, not even a coordinator – to construct a platform for people to participate and collaborate.

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How Can You Harness the Collaborative Intelligence?

• Blogging• RSS• Tagging• Facebook• Twitter

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Significance of Blogging

• Chronological - feed-centric delivery protocol with RSS as the tool

• live web, sense of evolution• Interactive marketing – deliver

appropriate ads based on the nature of the blog. How? - Tagging

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Folksonomy

• Versus Taxonomy• Social bookmarking• E.g., Delicious, Diigo

– Tagging, networking, sharing

• May hold the key to developing a Semantic Web, in which every Web page contains machine-readable metadata that describes its content. (cf., Web 3.0)

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Data about data.

RSS

• Really Simple Syndicator• A tool for news feed.• Microblog = blog + RSS

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Global participation is not crucial for our business value.

Our new business model facilitates global participation.

Our new business model facilitates global

participation. • Is Google a search engine?• Yes, but more than that!• Google wants to be the Architect of Participation and the search engine is only its important tool.

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Google’s Mechanism – PageRank

• Page B has the highest rank because it has the most links with the most values.

• Page C has higher rank than Page E because the link it has is of much higher value. 25

Google’s Mechanism – PageRank

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• Suppose A, B, C, and D – four pages and B, C, and D link to A

• If B, C, and D have no other links:

• If they have links:

• In General:set Bu contains all pages linking to page u.

The more links a page has, the less values do its links have.The more links a page has from important pages, the more values does it have.

Google’s Participation

• Cf., Alta Vista, Yahoo! Search, etc.– # of links– # of keywords

• The more pages are on the Internet, the more effective would Google search be.

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Google’s Participation

• Then, Google needs to call people to participate - AdSense, in addition to its powerful search

• AdSense – Aquired DoubleClick– Interactive Marketing (ad based on the

content of the webpage)– But more…

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AdSense

• Strategic tool for becoming the architect of participation

• Making money by hosting Google Ads.

• More participation, more data, better ‘core competence’ – unique database!

• But the ‘core’ of Google is small – relying on ‘mass collaboration’

• But the boundary of Google thus is the whole world.

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Google Philosophy

• “The most important thing in life is to learn how to give out love, and to let it come in.” – Morrie Schwartz

• 「天長地久，天地所以能長且久者，以其不自生，故能長生。是以聖人後其身而身先，外其身而身存。非以其無私邪？故能成其私。」 - Laozi

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Google Philosophy• Heaven is eternal, the Earth

everlasting.• How come they to be so? It is

because they do not foster their own lives;

• That is why they live so long.• Therefore the Sage puts himself in

the background; but is always to the fore.

• Remains outside; but is always there.• Is it not just because he does not

strive for any personal end That all his personal ends are fulfilled?

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Our database is one of our corporate assets.

Data

Technology

Equipment

Property

Human Resourc

e

Unique database is our core competence.

Data

Technology

Human Resour

ce

Property

Equipment

Prosumer• Webs hosting AdSense ads are

Google’s production partners.

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Website

Advertisement

Prosumer/Content Provider

Advertiser

Website + Ad

AdSense

Google/Architect

Visitor

clicks

Prosumer• Beyond Customer Centric• Customer Centric: We create the

market for customers based on our marketing research

• Prosumer: We let customers create markets.

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ProsumerLego’s Mindstorms• With

programmable bricks, controlled by software

• Upload to share• Lego’s

Mindstorms35

Lego Mindstorms

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Lego Mindstorms

• Introduced in 1998• Lego threatened lawsuits first

against tinkers• Now, the company encourages

them!• Some users became their de

facto designers

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Lego Mindstorms

Lessons learned from lego:• Give users access to raw content

such as interviews as a means of providing greater transparency and accountability.

• Provide tools and become a platform for user-generated rather than firm-generated content.

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Lego Mindstorms

• Redesign all content to be a conversation rather than a corporate monologue.

• Treat advertising as content too.• Use new distribution forms,

including peer-to-peer networks. • Adapt content forms and

schedules to user demands.39

Lego Mindstorms

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Design Your Own Products

• Café Express• Mini USA

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The Internet is a content AND CONTEXT provider for our KM or CRM.

The Internet is a platform for KM or CRM.

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IP protection is the bottom-line.

Open source is the bottom-line.

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New business models are modified from previous ones.Business models

are brand new.

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Partners are within our supply chain, and the world consumes our provided value.Partners are from everywhere. It is mass collaboration, and the world creates value with us.

Open• Google Maps is open, so • Housingmaps.com = Google Maps +

Graig’s List• Lego Mindstorms• Open Business Model – to be

introduced

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Network externality helps us enlarge market share.Network externality is everywhere.

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Success is built on others’ failure.Success is

achieved with everyone.

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Companies are combat units to enlarge business size.

Company boundaries are indistinguishable to benefit from network externality.

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Alexander is our role model.

Laozi is our role model.

七律 · 人民解放军占领南京 毛泽东 钟山风雨起苍黄，百万雄师过大江。 虎踞龙盘今胜昔，天翻地覆慨而慷。 宜将胜勇追穷寇，不可沽名学霸王。 天若有情天亦老，人间正道是沧桑。 一九四九年四月

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Homework

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Homework

Stephen Hawking: Asking big questions about the universe

Click ME!

Homework

• Philips Eletronics Tattoo

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Homework

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Larry Lessig - How creativity is being strangled by the law

Homework for Chinese Classes