Dimensions of differentiation in Web 2.0 business models
The influx of Web 2.0 based startups has raised interesting questions on their survival and business models. In some sorts there is a de ja vu of the events which occured 6-7 years back during the dot com boom and burst. Web 2.0 based business models are attempting to differentiate themselves along the following dimensions:
- Differentiated User Interfaces
- E.g. Netvibes
- Differentiated peer-to-peer interactions and collaboration mechanisms
- E.g. Blogger, Google Docs and Spreadsheets
- Differentiated Network participation
- E.g. del.icio.us
- Differentiated collective intelligence creation
- E.g. Flickr, Digg, Craigslist
- Differentiated aggregation mechanisms
- E.g. Housingmaps
These dimensions of differentiation are essentially data/information based, technology based or network/scale based. It would be interesting to see the combination of models which are able to generate sustainable competitive advantage.
Comments
Differentiated collective intelligence creation?
while i can understand the use of that term for Digg. But for Flickr?
Yes, flickr does use tags, but that is not its raison d'etre. in spite of all the web 2.0 hype, flickr is merely a nice photo-hosting site.
i'd like to see some stats on how many people actually use the tags to find photos before i change my mind. me and people i know do tag our photos to provide context but i dont know anyone who uses tags extensively to find pics they want.
Posted by: Ribbit | January 22, 2007 06:48 AM
Great to know that Infosys is also having a blog. I came to know about this blog while I am running a Blog hunt for our B-School fest, Inferno.
We have used the possible Web2.0 for our B-School meet. The whole Inferno sites run on Wiki, we have blog hunts and many more things. Our complete documentation is done on Google Docs. http://inferno.aimk.org/blog/planning/
How about Sponsoring the Blog hunt?
Posted by: AjiNIMC | February 3, 2007 12:13 PM
The "Differentiated" Initiatives are indeed one of the "In" things in the Internet phenomenon. Just hope that this time around, both Entrepreneurs and VC's, are careful with the model they Choose.
As for the critique that they invite on the Stategy and business models, well, I guess that itself is a Good Sign. It clearly shows that this time around, the learnings from the DotCom Bust have registered in the minds of investors and entrepreneurs.
Posted by: Ameer Sameer Khan | May 7, 2007 07:11 AM
I don't think web 2.0 offers any differentiation. The potential for web 2.0 to differentiate one company from the pack inexorably diminishes as it becomes accessible and affordable to all. At best, it can offer early adopter advantage to some.
Posted by: Siva Koppula | May 8, 2008 05:19 PM