How do I understand Web 2.0? Web 2.0 as Transforming technology!!!

I have come across people who define Web 2.0 is AJAX or RIA. Very narrow view… Exactly view which says SOA == services == Web Services == HTTP/SOAP. That is, anybody knowing SOAP and Web service is SOA expert . WOW !!! What a conclusion…

Well, I totally differ from this. Web 2.0 is model of active participation of the end-user with producer over internet.

Web 2.0 is new model of doing business different from traditional model.

In traditional model, Company has value-chain of departments which add values to the raw material as it passes the upstream from supplier to the end-user. The end-user has no say in the making of the product or value-add except at last stage by not buying it or criticizing in the feedback.

This is heavy loss of revenue to the company who has spend so much in the design and making by survey and research and later to find that customer has rejected the product.

Well how does web 2.0 solves it?

Web 2.0 is all about participation and collaboration with the end-user from each step of value right from design, production, advertisement and sales.

Web 2.0 is based on the involvement of the end-user as start itself by means of interaction feedback, or asking user participation to actually arrive at the idea and taking the top 3 idea forward by means of voting and doing a ROI analysis.

Web 2.0 is about social networking and social participation!!!!

Example:

AMWAY is a perfect example doing business using the social networking. A traditional company expense is about 30% on building the product, 70% is on the Advertising and Sales & Marketing cost.

So, the end-User ends up paying 100% cost of which, 30% is price of the actual product where as rest 70% is being paid to the advertising star like Shah Rukh Khan.

So, for each coke we drink for which we pay Rs.10/-, we pay Rs. 3/- to the Coca Cola Company and around Rs. 7/- is going to the Aamir Khan.

Or in 30 day month, 9 day we work for making the product and 21 day we work to provide money to Advertising Star the Aamir Khan.

Amway has changed the model by,

AMWAY says, that it would not spend amount on the advertising, Sales and Marketing (70%) of the cost. It would transfer this benefit to the end-user as and when he helps in sales and marketing of the product. So Amway runs of the people networking, people makes their friends member of the Amway and they make their friends member and thus the viral network of people supporting Sales, Marketing and also are end-users of the products. As the product is sold in the hierarchy linage of the person, all people in that hierarchy benefits with %age of the sales.

Hence Amway is built on the revolutionary model of Web 2.0.

Another recent example is of TV reality shows like Indian Idol,

TV reality shows like Indian Idol, the TV viewer who are end-users participate heavily by voicing their opinion and sending votes to select and reject candidates. Since, end-users interactively participates they are interested in viewing the show because of their feel of active participant. This increases the viewership of TRP of the show.

Voting is also done using the Mobile, SMS and means which although cost something of Rs. 3/- per call. But coming from millions of users each day makes up 3 million per day. A very lucrative model of crowd sourcing which makes money by using the end-user volume base.

There is great transformational approach in every domain to utilize Web 2.0 model for involve volume effect bought in by social networking and active particiaption of all stakeholders. Taking example of e-Learning.

Traditional model is of Writers creating the Subject Books, Text which is taught to the Students in one-way fashion by teachers.

Web 2.0 transformation model, would be involve the Students and Teachers who are end-users in this value-chain to participate in making of the content by means of active participation.

Teachers then can teach students in collaborative manner by starting with text in the book and then collaborative model of teaching where every participant teacher and students blogs or gives feedback which is then improvised and becomes an actual text for preparation of the Exam rather than static text of books.

This teaching model can also be supported by collaborative IT system which virtualizes the location, presence and participation. This will lead to virtual classrooms, virtual schools, virtual books everything being accessible over web…

There were future lies in.

Transforming web from linkages of static pages or computers to web network of people!!!