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Monthly Archives: May 2012

Lightweight Models and Cost effective scalability

Web 2.0 applies to business model as well as technology. For an example, the famous companies such as Apple and Microsoft are hiring lots of people and also they need to invest lots of money in production area. Web 2.0 companies such as Twitter and Facebook have lightweight model and effective scalability.

According O’Reilly (2005). While high value B2B connections like Amazon and other retail partners using SOAP stack. Also Amazon reports that 95% of the usage was lightweight REST service. However, these Web 2.0 models are low risk of cost and good at ROI and faster development.  There were few aspects of using these kinds of methods.

Scale with demand

For business have to designed to start small and scale with demand like human resource, technology and revenue models. Also Era driven by network effects

Syndicate models

The key point of success model was that, Web 2.0 applications allows customer to plug softwares into individual web-sites and share the datas using SOAP or XML.

Outsource

Its suitable for firms and Web 2.0 applications, because they might not be good at about softwares in every area. So outsource is the best solution of keeping the product in quality and reduce the cost. Especially in world wide firms.

Revenue models

Every companies  main purpose was gain revenue. So that there were few revenue models such as subscription, premium services, sponsorship advertising and produce likening.

WordPress.com

This web-site was a good example of lightweight models. This is a hosted blogging platform which is based on the open source WordPress platform.  Although, this platform allows to user to sign up and create their own blog. As a purpose of this platform, they gives users to easily create and manage their own blogs. So that is a simple, basic architecture and technologies. Also this platform facilitate syndication of content and simple interface that support end-users and developers as well. From that features they provides end-users with services like tagging, content editor for blogging and CMS functions.

Although, this platform provides more widgets, which enables to apply more functions in users blogs. Eventhough, they have great feature called as RSS Feed, which gives access to the content. Besides, this blog is a simple architecture enables easily restructuring it and adding more technologies. Also they offered free of charge for this blog and lower cost for more advance features.

More over, its easy to hack because of simple architecture. Through hacking, personal information could be leaked. That’s the major issuer for this platform. So that, WordPress has to make an effort to prevent this big issue as well as develop convenient and easy service to users and developers.

References

O’Reilly., T. (2005). What is the web 2.0. Retrieved from Oreilly.com by 6th of May, 2012

Rss Retrieved from rss.com by 6th of May, 2012

Widget Retrieved from widget.com by 7th of May, 2012

WordPress Retrieved by wordpress.com by 7th of May, 2012

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Posted by on May 10, 2012 in Lightweight Models

 

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Leveraging the long tail

The long tail has been popular in recently and also it describes retail strategy of selling large unique items with small quantities. Even-though there were number of participants in the Web has increased and  unique phenomena have been observed. So Long tail was one of them. This term of “Long tail” was popularized by Chris Anderson in October 2004 in Wired magazine article. He mentioned Apple, Netflix and Amazon as examples of business which are applying to this strategy.

Besides, the Long tail describes as “the total sum of something with general characters “The Head” could be less than the total sum of something with unusual characters “The Tail”. That emphasis importance of the Tail. For an example, Five people will get a job when they graduating from university. On the other hand, two people continue their studies, three people start their degree, two people will staying at home and do nothing and three people will get married. From that situation, most of the people get a job after graduating from university.

So, number of those people is less than the number of the others because of the number of others who will not get a job is ten in total. Thats the Long Tail concept. How ever, there were few concept of Leveraging Long Tail. There are,

Forces in long tail

Web 2.0 firm has to make a strong long tail through the production, distribution and demand.

Data management 

This is an important part of long tail, because of focusing small amount of customer and specific requirement, data would be huge and more complex than big customers.How ever, the demand from small amount of customers or suppliers have to be researched by data domain.

Customer management

Long tail have large number of customers who has different background and demand. So that, architecture has to be manage by customer and filter illegal an inappropriate content is necessary. Also, firm can check the content and customer classification for detecting the risks.

Leverage on-line product and inventory cost

Web 2.0 application has to pay more attention to do aggregation and also integration of online product and keep the lowest inventory cost.

Etsy Website 


This web-site implements the Long Tail theory. Etsy is an international web-site, which has over 150 countries users. This web-site allows user to buy and sell products in three ways, which are hand made, non-hand made products, commercial products.

However, easy to buy a product in Etsy. So user to has fellow few steps to buy the product, which are searching a product typing a keyword in Etsy search engine. Also user can abel to check the location and check the previous comments. Then user can add to the cart if they happy and after reading some relevant feedbacks from previous buyers. Pay the amount using credit card or PayPal.

But, Sell a product in Etsy is  different from buying process. So user has to fellow simple three steps. User has to create a profile and add a item into their profile and allocate a price for that item or product. Second, wait for buyer’s payment and finalised the payment. Finally stage was shipping the product to the buyer.

Apart from that, Etsy web-site is limited and restricted web-site comparing to other famous online trading web-sites such as Ebay and Amazon websites. In Ebay web-site user able to bit for the item.

References

Anderson., C(2004). “The Long Tail” Wired. by 30th of April, 2012

Etsy Retrieved from www.etsy.com by 30th of April, 2012

 
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Posted by on May 1, 2012 in Long Tail

 

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