Alcatel Web 2.0 services Strategic White Paper

At the effects of web 2.0 on the ehaviours of online users

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S t R at e g I C W h I t e pa p e R
New communication behaviours in a Web 2.0 world — Changes,
challenges and opportunities in the era of the Information Revolution

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Summary of Contents for Alcatel Web 2.0 services

  • Page 1 S t R at e g I C W h I t e pa p e R New communication behaviours in a Web 2.0 world — Changes, challenges and opportunities in the era of the Information Revolution...
  • Page 2: Table Of Contents

    Table of contents Executive summary Introduction 1. Global change in communication behaviours 1.1 how are behaviours changing? 1.2 technology – enabling the changes to happen 1.3 Web 2.0 – the Read/Write Web 1.4 evolution stages of the internet Web 2.0 2.
  • Page 3: Executive Summary

    Their adoption will, in turn, drive the growth of a social networking enterprise software industry. As new internet Web 2.0 services emerge, online advertising will grow in importance. There are a number of reasons for this. Firstly, an increasing number of users are spending an increasing amount of time on the internet.
  • Page 4 It’s no surprise, then, that the global online advertising market is expected to double in size from 2008 to 2012 . And as it grows, the companies that helped to bring users to Web 2.0 will have a further role to play in its evolution. Providers of Web 2.0-based services will need to develop new advertising models based on users’...
  • Page 5: Introduction

    Web 2.0. “We are not living through a technology revolution. We are living through a value revolution that is being driven by the inexorable march of innovation.” Pat Russo, alcatel-lucent New communication behaviours in a Web 2.0 world...
  • Page 6: Global Change In Communication Behaviours

    1. Global change in communication behaviours Changes affecting the internet and the telecommunication industry are the result of changed communication behaviours, going back more than two decades. The spread of broadband internet and the development of Internet Protocol (IP) were the basis for the evolution of new software and technological devices.
  • Page 7: Technology - Enabling The Changes To Happen

    Web – and the Web is now becoming the market in its own right. With a richer multimedia communication environment Telecoms come new ways of communicating Source: Alcatel‑Lucent Content Internet Devices Fixed Wireline Mobile wireless The evolution of broadband and IP has expanded the business of telecommunications service providers.
  • Page 8: Web 2.0 - The Read/Write Web

    The ease with which Web software applications can be crafted adds to the pace of change of these new communication behaviours. More and more users can now create and publish their own content. And with the growth and spread of digital technologies over the last two decades has come a new generation of ‘digital natives’, more at ease with those technologies than any preceding generation.
  • Page 9: Evolution Stages Of The Internet Web

    Based on this definition the key changes brought by Web 2.0 are: Using the Web as an applications platform • Democratizing the Web • • Employing new methods to distribute information In the Web 2.0 era the power over content has been moved from the network and page administrators to the end-users –...
  • Page 10: The Impact Of Change On Internet Users

    Logging on to the internet for time-limited sessions Often connected online all the time Source: Alcatel‑Lucent 2.1.(ii) Corporations as a specific community of Users 2.0 Corporations are entering this environment, either as a specific community (of employees or business partners, say), or as creators of an internet environment (such as content, platforms or applications) for individual users.
  • Page 11 Internal motivators can be: • Employees Employees bring new communication behaviours and habits from the external environment to which enterprises need to adapt. • Knowledge management The opportunity for better accessibility and management of corporate knowledge through collaboration. • Innovations management The opportunity to drive innovations through collaboration and networking.
  • Page 12: Impacts On Behaviours Of Online Users

    not as well for more complex applications. Web 2.0 is closer to the peer-to-peer architecture the underlying internet, designed for two-way communication. Enterprises from similar fields tend to respond similarly to the opportunities and challenges brought by Web 2.0. Hence the development of such terms as Telco 2.0, Media 2.0 and Mobile 2.0.
  • Page 13 2012 Source: Alcatel‑Lucent The broadband market is growing rapidly. The number of subscribers doubled from 2003 to 2007 and is likely to double again between 2008 and 2012, rising to 600 million. Revenues are growing at a similar rate. Although ARPU is slowly declining, this is compensated for by the growth in subscribers.
  • Page 14 2.2.(iii) Content being delivered free of charge Early adopters of Web 2.0 applications (content providers and peer-to-peer networks) made most of the content available to the end-user free of charge. This makes it difficult for other content providers entering the market to come up with sustainable business models, a process also known as ‘commoditization of content’.
  • Page 15 videos, images and music. And they are a much more effective way for users to stay connected to, and updated about, the activities of huge numbers of other users on a richer scale than any one-to-one personal network. Online social networking services are now starting to replace TV and many other media forms as places for young consumers to spend their free time, in part because ‘always on’...
  • Page 16 as many plug-in vulnerabilities as there were in the same period a year earlier. In total, 61 per cent of all vulnerabilities were related to specific Web applications . It is expected that in the near future attacks will move from personal computers to mobile phones and mobile devices. A second concern is individual privacy and the security of published information.
  • Page 17: Show Me The Money

    3. Show me the money! Web 2.0 has already changed the core business of a number of corporations across various industries, bringing new revenue opportunities linked with the growth and spread of broadband and online services. And more companies from more business segments will join the broadband economy in the near future.
  • Page 18: Data Mining

    contact with the product. This derives from the real-world concept that to make a shopping decision customers need several experiences with a product. To make such approaches effective the advertisers will need technological solutions (both software and hardware) from the telecommunication industry that are capable of storing the required data.
  • Page 19: Enterprise 2.0 Growth

    is declining on an annual basis and will continue to do so. Jim Cicconi of AT&T expects that, without investment, the internet’s current network architecture will reach the limits of its capacity by 2010. He predicts that $130 billion will be needed to bridge the gap. Traffic may in fact increase fifty-fold by 2015, following an unprecedented new wave of broadband traffic.
  • Page 20: Web 2.0 Going Mobile

    Virtual worlds could also become a powerful platform for engaging customers in brand-focused co-operation activities. Co-creation is a potentially powerful innovation mechanism; some companies claim significant R&D productivity improvements by involving the market at large (and in particular the most engaged customers) in product creation. Virtual world members appear to be more than willing participants in this new method of innovation.
  • Page 21 Mobile triple play-type services will nevertheless grow in popularity, largely funded by advertisers. In 2008 mobile advertising will hit $1.3 billion (one third of which, at present, is mobile TV advertising ), rising to $7.6 billion in 2013. However, the mobile industry will have to adapt. The current mobile content ecosystem does not meet the needs of the three main constituent groups of any content market: content providers, content customers and advertisers.
  • Page 22: Non-Believers 2.0 - Fears And Criticisms

    4. Non–believers 2.0 – fears and criticisms The number of users of the internet is growing. However, there remain those who believe that this current evolution will soon crash. They are comparing current growth to the dot.net bubble in 2000. The main argument of these ‘non-believers’...
  • Page 23: Beyond Web 2.0 - Future Evolution Of The Internet

    5. Beyond Web 2.0 – future evolution of the internet The next evolutionary step will have two main features: Semantic Web, which means that the internet will be able to understand the meaning behind data, and strengthening of front-end user applications, which will allow users to take complete responsibility for Web platform creation in addition to content creation.
  • Page 24: Appendix A: Web 2.0 Elements

    Appendix A: Web 2.0 elements Various applications are both making Web 2.0 a reality and allowing end-users to live their 2.0 experience Blogs Blogs are personal Web diaries, where users can offer their ideas, experiences and opinions on any topic. A typical blog combines text, images, links to other blogs, websites or sources. Sound or video can also be added.
  • Page 25 Collective intelligence – Wikis Knowledge in the Web 2.0 environment is built directly by the users. Some of the most popular tools for building shared knowledge are so-called wikis. These are websites that allow the user to freely add and upgrade content directly from the Web browser. Wikis are often used as a source of common knowledge by a certain group, allowing members so increase their own understanding and share their learnings.
  • Page 26 Social networks Social networks are special applications that combine some of the elements mentioned above. Members of the networks choose who they wish to interact with. However, their choice is often based on one or more types of interdependency, such as values, friends and hobbies .
  • Page 27 A.7 Really Simple Syndication (RSS) RSS is perhaps the easiest of these items to define. The end-user receives a short message containing information with content he or she has previously defined. It is mostly used by internet news services such as news pages or blogs to notify users about articles that are newly published or that focus on selected topics of interest.
  • Page 28: Appendix B: Software Technologies Available To Serve Web 2.0

    Appendix B: Software technologies available to serve Web 2.0 Quality of service technologies Service oriented architecture (SOA) A software architecture model for building loosely coupled distributed systems. It typically refers to an intra-enterprise IT system and builds on Web services technologies and designs. A more recent set of standards has been adopted or proposed as a way to support the more complex requirements of these systems.
  • Page 29: Appendix C: Examples Of Corporate Involvement In Web 2.0

    Appendix C: Examples of corporate involvement in Web 2.0 Internal communication and collaboration methods Employee behaviours are changing. There is no longer a great difference between work and personal life and as a consequence an increasing amount of home and distance workers. This increases the need for virtual social interactions inside corporations.
  • Page 30 Customer relationship building Corporations today have the opportunity to interact with their customers for many more purposes than just selling products. They could, for example, get the opinions of a target audience, build brand awareness or just get feedback directly from the market. By taking part in the social networking environment, a corporation can more easily communicate its own corporate culture and built up brand awareness among like-minded people in the network.
  • Page 31 Currency trading via the Web In 2004, one of the top five banks in the world created a strategic initiative to offer a sophisticated currency trading service to customers over the Web. By leveraging Web 2.0 technologies, its Foreign Exchange (Forex) application is accessible anywhere from a standard browser while delivering the rich user experience of a typical trading desk.
  • Page 32: Appendix D: Environment For Web 2.0

    This environment has its own ecosystem. This ecosystem consists mainly of content creators such as Yahoo, Google and Facebook; technology providers such as Orange, Microsoft, Alcatel-Lucent, Cisco, Nokia and Ericsson; consultants and system integrators such as Alcatel-Lucent and Cisco; and other influencers such as national telecommunication market regulators and local moral authorities.
  • Page 33 Content providers These participants provide and place content into the user interface. There are currently two main content providers: media and other users. Both traditional and new media contribute by making archive content (newspapers, archives or old movies, say) available online. Users contribute through the provision of text, sound and image (such as pictures, videos, articles and podcasts).
  • Page 34 Hardware, technical devices and software producers These companies enable the individual end-users to connect to the internet and create content there. Hardware and technical device producers provide the tools that allow a user to connect. Software producers provide access and the ability to create and change content, which is then uploaded to the internet.
  • Page 35: About The Authors

    His focus is on bringing a market perspective and customer understanding into Demand Creation’s activities. Before joining Alcatel-Lucent in 2007, Juraj held several leadership roles in the world biggest student-run organization, AIESEC, managing and leading its international internship programs in national branches in the Slovak Republic, Finland and Colombia.
  • Page 36: Notes

    Notes From: http://business.timesonline.co.uk/tol/business/industry_sectors/media/article2988002.ece and Alcatel-Lucent estimates Internet World Stats organization, November 2007 and Alcatel-Lucent estimates From IDC and EMS research reported in Data explosion to result in zettabytes by 2011 (http://it-online.co.za/content/view/240334/142/) Mass collaboration was first described as ‘the wisdom of the crowd’ by James Surowiecky, the New York Times columnist.
  • Page 37 Based on Bell S., Letting the riff-raff in, CIO New Zealand, Oct. 18th 2007, at http://cio.co.nz/cio.nsf/tech/8917B75 300FBA159CC25737600243F20?Opendocument&HighLight=2,Letting,the,riff-raff,in From: http://business.timesonline.co.uk/tol/business/industry_sectors/media/article2988002.ece and Alcatel-Lucent estimates Social networking services are still struggling to define a profitable business model and to attract a bigger share of online advertising.
  • Page 38 Based on Forrester’s research study, Global Enterprise Web 2.0 Market Forecast: 2007 To 2013 in Lynch C.G.; Forrester: Consolidated Web 2.0 Market to Reach $4.6 Billion by 2013; Apr 21st. 2008; www.cio.com An application programming interface (API) is a set of declarations of the functions (or procedures) that an operating system, library or service provides to support requests made by computer programs (www.wikipedia.org) Bughin J., Van Dijk M., Schellekens M., Second Life: Will Virtual Worlds become ‘real‘?;...
  • Page 39: Acronyms

    Acronyms Three dimensional Third generation service Application Programming Interface ARPU Average revenue per user Business‑to‑business Cost per thousand (M signifies the Roman numeral ‘thousand’) Cascading style sheet HSDPA High‑speed Downlink Packet Access Internet Protocol Peer‑to‑peer R&D Research and development Rich internet applications Really Simple Syndication SaaS Software as a Service...
  • Page 40 www.alcatel-lucent.com...

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