Week 5 post - Lightweight models and cost effective scalability

INTRODUCTION

Eventually this week turns to business-related issues. How to maintain the cost-effective scalability is essential for a growing Web 2.0 enterprise even if it claims that relevant profit model has already been presented since the user base boomed. For the last time I will illustrate the weekly pattern with the example of a celebrated online platform in China. Now that we’ll be discussing business, Taobao is on top of the list for sure.

‘Taobao’ means ‘seek out the treasure’ and that’s what the founder motivates users to do at all times. If you ever know nothing about it, you must have known something about Alibaba, a Chinese Internet company founded by Jack Ma in 1999. Popularly the primary services include e-commerce and online payment. Now in the information era almost everyone is able to get access to the Internet and grab what they want so there’s such a tremendous market emerging out there. Taobao was established in 2003 and once accounted for about 80% of total online transactions. Actually, like the saying goes, ‘a journey of one thousand miles begins with one step’. Why did it come to success? There must be some reasons.

SCALE WITH DEMAND

You know what? Back in 2003 when Taobao was first put online, there were only 200 and more commodities on display, all of which were brought along by the core technical staffs from their home. However, 20 days later, guess what? Taobao owned the 10,000_th registered user. It was aiming for big because Jack Ma saw the business opportunities behind but starting from scretch. What’s really interesting was that Taobao was regarded as a trial at the very beginning but gradually it began to absorb into business of Alibaba which in fact was at a higher level. Today, it’s not a fruit of Alibaba anymore. Instead, it’s been the rich soil. The core idea really is to ‘make small big and then make big small(which actually is bigger)’.

SCALE YOUR PRICING AND REVENUE MODELS

Over 90% of Taobao users never pay a butt for using it, meaning that they’re free to get content and services provided by various suppliers. Taobao does value the user base and network effects because they set the foundation of page view. As long as people visit the website regularly, what they’ve done will create value continuously even if they don’t purchase anything. What Taobao really concerns is to coordinate the business issue but it won’t get involved in the disputes unless it’s required to.

Basically Taobao adopts the principle of ‘leveraging the long tail’ well. The website is user based providing personalized resources to the users so their target stuff will be highlighted frequently. For any supplier he can set up a shop free of charge but if he wants to earn, he is encouraged to pay first. Pay fast, earn fast, basically. That’s just one of the many approaches that Taobao profits. Think of the scalability that lies within.

FAIL FAST, SCALE FAST

As an example, last summer a fairly popular Chinese actor was put into prison because of taking drugs and what’s ridiculous was that on the second day, someone started to sell the same model of his prison garb on Taobao which obviously was illegal. However, this guy finally paid for it. On the one hand, the system loophole was exposed that limitations didn’t work so when it was getting bigger it may fail faster. On the other hand, also because it was scaling fast everyone was under the supervision of either competitors or consumers. In addition, Taobao spared no effort to crack down on lawbreakers. The outcome was that a new booming cycle would be on. In future, that’s still the mainstream.

References：
Pic_1.http://www.alizila.com/sites/default/files/Taobao_logo-jpg.jpg
Pic_2.http://si.wsj.net/public/resources/images/MK-AS266_TAOBAO_NS_20081008185219.gif
Pic_3.http://www.taobaospree.com/file/model/2013032117034210705.jpg
Pic_4.https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEib9kaSLARDWt_0eNJVJcS3ukwbnMzSfO-K7TrPMfQrflzklVxFVG4JgcMPoYBLzNuyKZS6I83KoLANDVeFjBdnsfeOlyJfU89ZFCdwQrRM4_7P-ur5kfBIdJwR_ug0WC-NVlscWZt5XO4/s1600/taobao+item+search+go+to+taobao+shop+rating.gif

Week 4 post - Perpetual beta

INTRODUCTION

Literally, ‘perpetual beta’ can be interpreted as ‘never-ending software development cycle’ which overturns traditional theories of what we define as ‘design-develop-debug-deliver’ methodology. It’s quite common now for software developers to follow the pattern. Once again, I’ll choose a mature Web 2.0 model in China combining both phenomenal and reasonable elements to win the market. If some of us have good memories, obviously we can recall that Chinese Web 2.0 history actually started from Tencent QQ in 1998. Yup, that’s the focus.

As mentioned above, QQ was the first Internet-based IM software then and just through a single window users can chat, share files, send emails and so forth, which, I have to say, was a great breakthrough at the moment. Since it’s been around for nearly 17 years, its look and feel have already changed so notably that even those senior members cannot remember the initial interface but what’s unchanged really is it never stops delivering new products, abandoning obsolete features as well as retaining classic ones. This matches ‘perpetual beta’ exactly.

 

RELEASE EARLY AND RELEASE OFTEN

From 2002, Tencent at least launched 4 beta versions yearly(more precisely, 3 beta versions plus a final official one by the year end). It did this not only to refresh the technologies up to date but also be responsible for the increasingly growing user base. Also, because Chinese see the Spring Festival as mostly important in a year, Tencent used to launch a new year edition early in Febuary to promote the idea of celebration in particular. Every time it upgraded the system, more potential users would feed in not because it was more of a big deal but absolutely it was the pioneer to explore something useful.

ENGAGE USERS AS CO-DEVELOPERS AND REAL-TIME TESTERS

Generally Tencent keeps an open development strategy either by asking for fresh ideas from their faithful users or by inviting some early birds to test the newly generated products. Oh, better for me to say ‘finding out what’s cool based on real time supervision and data analysis’ rather than ‘simply asking for ideas’ because it’s what users do instead of talk that matters. It works well because those who accept the invitation are fans and they’re truly crazy about adding something creative and original. That’s how anonymous chat has been introduced to QQ for the latest beta. Where there is a need, there is a way.

INCREMENTALLY CREATE NEW PRODUCTS

In terms of creating and testing new products, Tencent doesn’t fall behind. Every update includes several new features or services and what’s mentionable is that it’s been polishing the ‘ecosystem’ by enhancing the core services of QQ and meanwhile releasing a whole bunch of derivative products such as QQ games, Tencent Weibo and QQ browser. Noticing it’s more than a social software, a large percentage of users tend to install the accompanied products that they like.

SOME DEBATE

Two thirds of Chinese are using QQ currently and it adds huge pressure on the administration. Should it track every detail about the real-time online usage? If so, then to what extent should it leverage the data but not touch deeply into users’ privacy? Besides, one of the disadvantages of bringing out series of new products at a time or seeking for external co-operation is that it’s just hard to define the inter-relationship which remains extremely crucial for decision makers to think about the future development strategies. Anyway Tencent should keep an eye on its own focus.

References:

Pic_1:http://tech.qq.com/zt/2009/cp/dayi3.htm

Pic_2:http://photocdn.sohu.com/20140211/Img394753006.jpg

Pic_3:http://img.chinainternetwatch.com/tencent-social-media.jpg

Pic_4:http://img1.gtimg.com/tech/pics/hv1/161/65/1566/101845886.jpeg

Week 3 post - Rich user experience

WHY RICH USER EXPERIENCE

The concept of ‘rich user experience’ is involved in building a successful Web 2.0 platform mainly because it’s users who play an important role and countless great desktop applications are already there as well. If there’re few good to explore online, what’s the fun? For this week, I’m going to introduce another influential Web 2.0 platform in China which is WeChat to illustrate how it fosters a fantastic user experience.

WHY WECHAT

Since Blog took root in China from 2005, then four years later Weibo(MicroBlog) was born

and soon took it over, now core Web 2.0 services have evolved to cross-platform WeChat based on private relationship networks. With expected features kept up to date and progressive implementation matched to the latest requirement, in first two years people signing in have grown up to 600 million. Basically WeChat successfully embedded a lot to give user convenience and impression and what’s more than that, business profits(which is the current trend).

CRITICAL ANALYSIS

1) Combine the best of smartphone & online experiences

On the one hand, you can use type-in or voice chat with your friends just as a normal mobile; on the other hand, WeChat creates a specific function under the ‘Discovery’ section called ‘Moments’ allowing users to share pics, songs, articles even the ranking list of a new game. So it’s like a personal gallery and your friends are welcome to drop in. What’s good to do this is that if something is really gorgeous or controversial, everyone will get to know it in a short time.

Simply a user can both open a webpage in WeChat and vice versa, just like you take the best of the world home and show the best of you to the world. The future of user experience is to be unconscious of the distinction and that data to be accessed ubiquitously.

2) Match the technology usage to the requirements

As a good instance, here I’m about to talk more about ‘Discovery’. During the spring festival this year WeChat launched an online activity called ‘Hand out red packet’, which precisely met the needs of the majority. In this case, people don’t need to spend plenty of time preparing substantial red packets and thinking of their styles and the amount of money put in them. Instead, what people need to do is to simply transfer some change to their WeChat accounts or only wait for some lucky money that they’re given. Receive your money and do the same in return, and that’s how it works. Don’t look down upon this simple operation. It did help to save money via the social network effect and more importantly, bring unexpected fun because people came out with the idea to ‘earn extra’ in this way. With the support of new technology of online payment, no wonder it can set fire to such a wide range of interaction overnight.

3) Deep, adaptive personalization

We often scan through the comments on the post we’re keen on, but WeChat only let users see specific ones whose commentators are your friends. It’s a smart choice to do so when mostly people just don’t give an eye to the redundant comments, and it will be interesting if C someday notices that A comments on B’s post which you think they don’t have any relationship. In this way, an interconnected social network becomes much more likely to take shape.

 

SUM UP

There’s no doubt that WeChat has gained huge popularity in China and some Asian countries but it’s aiming for more. It has already begun to promote the platform via Facebook and Twitter. People from overseas are able to download it for free and multi-language versions are available as well. The question really is, how to push the product itself take in new users instead of occasional recommendation from one of your friends?

References:
Pic_1: http://thefusejoplin.com/wp-content/uploads/2014/11/wechat2.jpg
Pic_2: https://qzprod.files.wordpress.com/2014/01/wechat-hongbao.png?w=720
Pic_3: https://value2020.files.wordpress.com/2013/01/wechat-in-the-world-by-value2020-jan20132.jpg

Week 2 - Data is the next ‘Intel inside’

In terms of the current trend of web 2.0 application evolution, undoubtedly data play an increasingly significant role in it. To some extent whoever owns data is much more likely to attract particular users and therefore a solid user base is half way done. If an existed social platform need to be chosen to help present the concept, please allow me to pick Douban which is one of the most typical and successful social networking website in China.

This year’s March 6^th just witnessed the decennial of the founding of Douban, again arousing the public debate of the influence that it has brought to the society. Back in 2005, the website started itself from scratch and achieved an early success by empowering users to freely participate in all kinds of shared communities such as creating comments on bestsellers or blockbusters, sharing own experience of shopping or cooking, etc. Since then a whole bunch of user-centered strategies have been adopted naturally and never changed. Today it owns a regular base of over 100 million active users daily which creates most of the real time data and remains the key to its success.

Well it’s not a secret anyway. Everyone knows what Douban is doing and how but I would say the fact that there’s no one else being able to stand out from the market like what it did perfectly reflects on its unique approaches in terms of how to deal with mass data. The key is nothing else than who creates the data as well as who owns the data. Unlike Zhihu, another great example of web 2.0 application famous for sharing questions and answers with each other on a regular basis, Douban simply gives every registered user exactly the same rights to create contents without any restriction, which effectively enhances users’ contribution to the community. It’s known to all that people want their voice heard and so it’s vital for Douban to keep that up and always be the biggest fan of their customers when they’re given a chance to make a difference. By doing so few guys will say ‘No, I don’t intend to post anything’ or something like that, which is why datasets are constantly being built and various data being widely spread. No matter who gets involved, he can be both creator and owner. The best thing is that one can really do something if he wants. Meanwhile, that’s just how users teach themselves to control their own data.

However, nothing is really flawless. Large quantity sometimes inevitably leads to low quality. A film review of an upcoming movie doesn’t make sense to readers because it’s all about the author’s fancy, for instance, but still anyone can post similar articles and more or less others may be misled. Once again data strategy is the key here. Douban is working hard to strike a balance between purifying the data and keeping the users. Obviously it doesn’t want to lose either.

References:

Pic_1: http://www.douban.com/pics/douban3.gif

Pic_2: http://ignitesma.s3.amazonaws.com/ignitewebsite/social-network-analysis-2012/Douban_top_regions_2012.png.png

Pic_3: http://image.slidesharecdn.com/douban-hackathon-111030074413-phpapp01/95/techcrunch-hackathon-douban-api-3-728.jpg?cb=1319979620