Web 2.0: A Strategy Guide

Reviewed by Robert Pritchett

Author: Amy Shuen O'Reilly http://www.oreilly.com/catalog/9780596529963/ Released: April 2008 Pages: 243 $25 USD ISBN: 9780596529963   Strengths: Offers intelligent reasons for using Web 2.0 concepts and technology by showing how entrepreneurs have become successful through collaborative innovation. Learn the "power of community" and how two or more minds can be better than one.   Weaknesses: Some typos.

 

Introduction

"Web 2.0 makes headlines, but how does it make money? This concise guide explains what's different about Web 2.0 and how those differences can improve the bottom line. Whether you're an executive, a small business owner, or an entrepreneur, Web 2.0: A Strategy Guide illustrates through real life examples how various businesses are creating new opportunities on today's Web. This book is about strategy rather than the technology itself."

 

Jeff Lippencott wrote over on Amazon,.com the following;

"In the Q&A sections there are both strategic questions and tactical questions to help the reader get a better handle on how Web 2.0 allows entrepreneurs to make more money by targeting a smaller market that seeks hard-to-find products and services instead of large volumes of popular items. Apparently Web 2.0 is all about "the niche." And it is all about networking with other sellers and the customers.

 

This book points out that Web 2.0 is about creating multiple streams of revenues as opposed to single streams. Instead of just generating sales of a product or service, Web 2.0 thinking and logic demands that the Web site owner consider generating membership fees, advertising fees, licensing fees, sponsorship fees, and yes, sales of product and services of their own or through affiliate relationships.

 

The five-step action plan included in this book includes the following steps:

• Build on collective user value
• Activate network effects
• Work though social networks
• Dynamically syndicate competence
• Recombine innovations"

What I Learned

Depending on who you read, Web 2.0 is a thing of the past, not a panacea for business or it is where people can collaborate anywhere, using any device, in any mode they want.

 

Reference: NetworkWorld May 26, 2008, Maria Pardee, President of Global Integration, James Lin, CIO of Forbes and John Chambers, Cisco's founder.

 

Amy Shuen sees Web 2.0 as a business strategy using such things as freemiums (free access, but with paid subscriptions for value-added content) and using the power of stickiness and embracing social networks like LinkedIn or MySpace.

 

LinkedIn I show I got my current position with Pure Energy Systems Network. My boss was not too impressed with LinkedIn until I told him that is how I discovered him through acquaintances. People networking is enhanced through Web 2.0 technologies.

 

Web 2.0: A Strategy Guide provides business plan outlines, which coincidently are what we are updating right now for our business as we expand operations as a true alterative energy system information portal and consulting service in bringing together inventors, innovators, their ideas and concepts and prototypes and introducing them to those who have money to invest in their ideas and innovations, in order to bring those into public distribution as soon as feasibly possible.

 

Examples of companies that have morphed by listening to their customers and rapidly adapting to their needs are Amazon.com, Facebook, Flickr, Google and NetFlix.

 

We can take Rogers Adoption Curve (rate of adoption of a new product or technology) and reach a level of self sustainability and exponential growth using online collaboration. This is a "Why" book and not a "How" book looking at strategies instead of tactics. It refers to both online and offside innovative collaboration.

 

There are 6 chapters on value, network multi8ply effects like N-sided markets (two or more customer/users to sellers/partners), positive feedback, social networking, capitalizing on competences, using syndication, integrating ecosystems (using iPod and iPhone as examples) and building Web 2.0 business plans through building and bridging instead of replacing or disrupting activities.

 

The bibliography is huge and there are plenty of endnotes. The Index is also a nice touch.

 

What value-adds the book is that each chapter ends with both lessons learned and questions to ask.

 

Conclusion

If Web 2.0 has become another buzzword instead of a viable concept, then take a look at this non-geek approach to the topic and see how the ideas behind Web 2.0 are what it is really all about.

 

Recommendation

I would recommend this book to those who are willing to figure out how best to use online tools to enhance their bottom line and are into recombinant collaboration and less into "control".