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Book:   Web 2.0: A Strategy Guide
Subject:   Concise Introduction to the Business of Web 2.0
Date:   2008-07-15 08:13:12
From:   Jeff Huckaby (rackAID)
Rating:  StarStarStarStarStar

The book is impressive in its clarity. Shuen's concise, clear language presents the marketing and business aspects of Web 2.0 without the typical hype. If you are new to Web 2.0, social networks and curious about the rise of Facebook, Youtube, and similar outlets, then give this book a thorough read. You will come away understanding the core business principles driving the success of these online behemoths.


One example of user-contributed value Shuen highlights is the tag cloud on Flickr. The tag cloud is a categorization of popular items on the site derived from user input. The tag cloud allows people to explore through concepts rather than just finding specific. Shuen reports that 85% of the photos in Flickr have human-added metadata. This data is used to better organize search and categorize the images. The interaction with the customer is a key item Shuen points out as critical to Flickr's success. This user contribution to the site generates value for all users. A key she says to successful Web 2.0 operations.


Shuen also highlights LinkedIn and Facebook. She describes positive network effects at work in these companies. On LinkedIn the value of the site is determined by the network it can offer you. When you join the network, you add a positive impact, your presence may lead to others to join or you may linked up previously separated groups. By joining the network you increase its utility to all users while simultaneously making it more attractive to non-users. These positive network effects as Shuen calls them are critical to Web 2.0 success.


A nice feature of the book, is that at the end of each chapter, Shuen presents Strategic and Tactical Questions. These are excellent bullet list to help you think about enabling Web 2.0 on your business or expanding your Web 2.0 up-start. For example, she encourages you to "think about positive network effects" taking place in your business. How have you actively considered and worked with positive network effects to grown your company?


Shuen break downs Web 2.0 into some key areas: collective user value, network effects, competence syndication, and recombinant innovation areas she documents as core to Web 2.0 business. If these you want to learn more about these concepts and Web 2.0 in general, this is the book to start.


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"Amy Shuen has unlocked the mystery of how the web has morphed into a new and richer user experience that is generating massively valuable business opportunities."
--Jerry Engel, Director of the Lester Center for Entrepreneurship at Berkeley and partner, Monitor Ventures