Week 10

This week the lecture was about management of web 2.0. This is an important topic which has to be addressed because there is so much involved in web 2.0 that if it is not managed it will create serious issues in the future.


With all the hype that Web 2.0 has gotten, many companies are now looking at their existing Web CMS and wondering whether it meets the new paradigm’s needs or merely traps them in an earlier age of the Web, thereby missing new business opportunities and making them appear dated.

Some of the success stories that I found interesting are:

WholeFoods

Natural food retail giant Whole Foods makes an interesting case study because the company's use of Twitter points the way for enterprises such as retailers to keep both a national or international presence, as well as a local presence on social networks.

Whole Foods maintains a corporate presence on Twitter that has over 550,000 followers.

While many of the interactions between this national Whole Foods and its customers concern corporate policies and the company's social activism, many more interactions involve customer service issues related to specific stores. Such as

"Sorry to hear that your soup was cold. Let me know which store it was and I'll see if I can get you in touch with the [store team leader]."

"You'll have to check in your local store about that since they determine product selection. Thanks."

To address local concerns such as these, Whole Foods is bringing many of its local stores to Twitter. These branch accounts can directly respond to issues such as what the store stocks, issues around service or product quality in the stores.

VirginAmerica

Virgin America, an upstart US domestic carrier that is separate from Virgin Atlantic, has worked hard to craft a service-first, fun brand image to differentiate itself from its competitors.

That brand image has extended to its use of Twitter. Virgin America, therefore, is an interesting case study in how to promote your business using twitter.

Virgin America's Twitter presence is heavy on marketing, using "fun" language and attitude while giving details of new routes, new deals and overall corporate "feel-goodery".

It is also the home for some marketing stunts, including live Twittering on a flight (via in-air WiFi) by airline founder Sir Richard Branson. The airline also handles customer service issues addressed directly to its user name. Here is a recent exchange with a customer.

It is also significant that the airline has successfully managed to blend the its customer service interactions with other interactions, accurately reflecting corporate branding, while maintaining customer satisfaction.

There are so many issues involving management of web 2.0 such as:

Look out for repetitive strain injuries, twitter fans are warned

Trick or Tweet? Twitter launches crackdown after millions are duped by fake accounts

Michael Grove: All balls and Twitter: how the so called schools secretary is wrecking our children’s education for his political career

There are so many more headings which are all important issues which is shocking because this is growing as a big problem for many people.

McKinsey (2007) discusses how businesses are using web 2 technologies in a global survey. Overall, executives are satisfied with their previous investments in Internet technology, and most are investing in trends that promote automation and networking online.

The rising popularity of user-driven online services, including MySpace, Wikipedia, and YouTube, has drawn attention to a group of technological developments known as Web 2.0. These technologies, which rely on user collaboration, include Web services, peer-to-peer networking, blogs, podcasts, and online social networks.

Respondents to a recent McKinsey survey show widespread but careful interest in this trend.1 Expressing satisfaction with their Internet investments so far, they say that Web 2.0 technologies are strategic and that they plan to increase these investments. But companies aren’t necessarily relying on the best-known Web 2.0 trends, such as blogs; instead, they place the greatest importance on technologies that enable automation and networking.

It is clear that companies using Web 2.0 technologies have developed a new way of bringing technology into businesses. And, according to many participants, this new approach is easier to implement and more flexible than traditional top-down approaches. Discussion participants are seeing some business impact from these technologies and seem generally optimistic about their benefits, particularly in how they help a company refine its strategy.

McKinsey Quarterly published an interesting article this month how companies can successfully use Web 2.0 tools. McKinsey has studied in the past two years the experiences of more than 50 early adopters of Web 2.0 tools in corporate organizations. The experiences are equally balanced between enthusiastic and dissatisfied. However, basis for success lies in the acceptance of the disruptive characteristic of Web 2.0 and the understanding how to create value with these tools.

Based on these results McKinsey has identified six critical success factors for the use of Web 2.0 technologies:

• The transformation to a bottom-up culture needs help from the top

Web 2.0 projects depend on bottom-up involvement of people throughout the organization. However, involvement of senior management is paramount as they will act as role models that will encourage participation of the rest of the organization.

• The best uses come from users – but they require help to scale

Successful use of new technologies depend on the involvement of the users in the development and implementation of it. Failure is at risk when management tries to dictate their preferred uses of the technologies used. Mckinsey’s research demonstrates that the applications that drive the most value through participatory technologies are often not those that were expected by management.

• What’s in the workflow is what gets used

When developing Web 2.0 applications make sure that the users are able to create the time within their daily workflow to participate in these new collaborative initiatives. Initial enthusiasm will fade rapidly if users experience that participation is another add-on to their already crowded to-do lists.

• Appeal to the participants’ egos and needs – not just their wallets

Financial incentives do not work in collaborative technologies. They create content, but of low quality. More effective is it to bolster the reputation of participants in relevant communities, rewarding enthusiasm, or acknowledging the quality and usefulness of contributions.

• The right solution comes from the right participants

Be sure who to target. To select users that will have valuable contributions takes thorough preparation. Look across the borders of the traditional experts but also involve other disciplines within the organization. If done correctly, it can create great benefits beyond expectations. Sales forecasts predicted by participants with a more diverse base in operational knowledge were more accurate than those of the company’s experts.

• Balance the top-down and self-management of risk

Web 2.0 by definition is disruptive and stads for authenticity, open and free communication. these factors feed many companies with fear for these technologies. However, Web 2.0 is not equal to total anarchy and some control over the content produced is prudent in corporate environments. Some security functions can, and should, be installed, such as prohibiting anonymous posting. Ultimately, successful participation means engaging in authentic conversation with participants.

Acceptance of Web 2.0 tools in corporations is growing. Spenditure on Web 2.0 technologies is currently estimated at $1 billion by McKinsey, but in the coming five years an annual growth of 15% is expected, despite the current recession. I fully agree with this view. Even stronger, due to the unique characteristics of Web 2.0 (e.g. cost effective, participative, collabrative, very effective harvesting of tacit knowledge) it is the distinctive technology in times of economic downfall. After all, if one thing survives in a recession, it’s innovation. And Web 2.0 is such an innovative technology that makes the difference

The barriers to success are as follows:

• Culture

• Security

• Lack of engagement

• Lack of commitment

• Risk

I think that security is the most serious issue therefore a positive, confident and competent approach is to look at the security implications and deal with them. Blocking access to applications is too often the first approach, when it ought to be the last. A good IT department should be looking for ways that it can help, not hinder. In any instance, an information department really should have access to just about anything, up to and including Facebook and YouTube because they’re useful information tools. If the question is rather more ‘we can’t trust our staff’ then that’s an entirely different conversation which shouldn’t get tied up with security/access to resource queries.

If it’s considered too dangerous to put material onto an external website that’s a good reason not to use a product, and that sort of security should be paramount. In most cases however, that’s going to be quite rare, and it shouldn’t hinder the use of other sites for more general material

This lecture was very difficult to understand as I did not actually get what was being discussed properly. I did some research on this lecture in order to get a better understanding but it was still hard to digest so much information at one time. Also Margaret did not finish the lecture therefore the last part was completely not understood.

This week in our lab time we were given our coursework task which was okay to do but I just wish we had got it before the Easter break because I would have finished it during this time. Now there is too much to be done and so little time getting very stressed about things. The activity in the lab was okay because it made us address questions that we could pick up on in our report therefore it was fine. Also the team worked well together developing on each others ideas.