Chapter 9 Learning Question #3: What is Web 2.0?

What are the benefits of crowdsourcing?

Cultivating customers and saving considerable costs

What is *crowdsourcing*?

A process through which users can provide customer support to one another or even participate in the creation of product specifications, designs, and complete products

How can businesses benefit from Web 2.0?

Advertising and mashups

What three organizations exemplify Web 2.0?

Amazon, Google, and eBay

What is an example of the large significance/extant of network effects in Web 2.0?

Amazon.com gains more value as more users write more reviews

Why is the extent of network effects in Web 2.0 so large?

Because the value of the site increases with number of users and their use of the site

Who are the three "major winners" in Web 2.0 *versus* the three "major winners" in traditional processing (Web 1.0)

Major winners in Web 2.0: Google, Amazon and eBay Major winners in traditional processing (Web 1.0): Microsoft, Oracle, SAP

What does web 2.0 encourage?

Mash ups

Should web 2.0 be used for all applications?

No

Why shouldn't web 2.0 be used for all applications?

Not all business information systems benefit from flexibility and organic growth; some information systems that deal with assets (financial or material) require some level of control

What is the bulk of user-generated content?

Reviews

What does *crowdsourcing* combine?

Social networking, viral marketing, and open-source design

What do traditional software vendors depend on for revenue?

Software licence fees

What is *crowdfunding*?

A form of crowdsourcing where a start-up raises money from a relatively large group of people who invest directly or prepay for a new good or service

How have some websites/companies taken advantage of user-generated content?

By creating websites and tools that encourage users to contribute in other ways such as providing customer support to one another or participating in the creation of product specifications, designs, and complete products *also know as crowdsourcing*

What are examples of "software as a service" versus "software as a product?"

Google doesn't sell software licenses but instead provides software as a service (SAAS) such as Google Maps, Google Earth, Gmail, Google Docs, etc. and also relies on advertising for revenue Traditional vendors (e.g. Microsoft, SAP and Oracle) all sell their software

What is an example of a mash up from Google?

Google's My Maps: Google publishes Google Maps and provides tools for users to make custom modifications to those maps

What is the difference in marketing between Web 2.0 and Web 1.0?

In the web 2.0 world, little marketing is done; new features are released, and vendors wait for users to spread the news to one another (viral marketing) In Web 1.0, because such a large amount of revenue comes from software license fees, substantial marketing efforts are made to convert users to new releases

What are mash ups?

The result of an output from two or more websites combining into a single user experience

Although there is no universally accepted definition for the term Web 2.0, what is the textbook definition for *web 2.0*?

The term first popularized in 2005 by Tim O'Reilly to refer to the integration and interaction of products and services, such as smartphones, user-created content, social networking, location and context-based services, and dynamic marketplaces, not as a specific technology.

What are examples of the "organic" interface of Web 2.0 and the "inorganic" interface of Web 1.0 (traditional web-processing)?

The traditional software model carefully controls users' experience; all office programs share a common user interface: the ribbon However Web 2.0 interfaces are organic; users find their way around eBay and Paypal and if the user interface changes from day-to-day, it is accepted

What is the difference between Web 2.0 and Web 1.0 in terms of participation and ownership differences?

Traditional sites are about publishing; web 2.0 is about participation (e.g. reviews, map content, discussion responses, blog entries, etc)

What is the difference between traditional vendors and Web 2.0 vendors in terms of rights reservations?

Traditional vendors and websites tend to lock down all the rights that they can (e.g. Oracle demands that you obtain permission before re-using their software/content). However, Web 2.0 vendors only lock down some rights (e.g. Google maps provides maps and says "Do what you want with these, we'll even help you publish them"

What is *user-generated content (UGG)*?

User-generated content refers to website content that is contributed by users

What is the extent of network effects in Web 2.0?

Very large

What are examples of the usage of thin clients in Web 2.0 versus Web 1.0?

Web 2.0 applications are thin clients and do not require installation on users' computers because web servers download Web 2.0 programs as code within HTML, as flash, or as Silverlight code Web 1.0 applications must be installed and downloaded

How are the "rights reserved" in Web 2.0 processing *versus* traditional processing (Web 1.0)?

Web 2.0: *Some* rights reserved Traditional processing (Web 1.0): *All* rights reserved

What does the business model rely on in Web 2.0 *versus* traditional processing (Web 1.0)?

Web 2.0: Business model relies on advertising or other revenue-from-use Traditional processing (Web 1.0): Business model relies on sale of software licenses

What is the release schedule of thin-client applications in Web 2.0 *versus* traditional processing (Web 1.0)?

Web 2.0: Frequent releases of thin-client applications Traditional Processing (Web 1.0): Infrequent, controlled releases of thin-client applications

How is the interface of Web 2.0 presented *versus* traditional processing (Web 1.0)?

Web 2.0: Organic interfaces, mashups encouraged Traditional processing (Web 1.0): Controlled, fixed interface

In terms of participation and publishing, where does Web 2.0 place its emphasis *versus* traditional processing (Web 1.0)?

Web 2.0: Participation Traditional processing (Web 1.0): Processing

How does product value change over time when used in Web 2.0 *versus* traditional processing (Web 1.0)?

Web 2.0: Product value increases with use and users Traditional processing (Web 1.0): Product value fixed

What is software seen as in Web 2.0 *versus* traditional processing (Web 1.0)

Web 2.0: Software as a (free) service Traditional processing (Web 1.0): Software as a product

What does marketing/advertising rely on in Web 2.0 *versus* traditional processing (Web 1.0)?

Web 2.0: Viral marketing Traditional processing (Web 1.0): Extensive advertising