Lecture 10 -Web
Lecture 10 -Web
CRM systems
Lecture 10
Web1 vs Web2 vs Web3
• The Internet has seen significant innovation since the days of Web1. Web1 was dominated by
simple HTML websites that allowed users to access information but offered little or no
participation.
• An interesting way to understand the transition from Web1 to Web2 to Web3 is this:
• Web3 - a term coined in 2014 by Ethereum and Polkadot co-founder, Gavin Wood - is widely
regarded as the future of the internet and is being built upon several core principles:
decentralization, permissionlessness, artificial intelligence and machine learning, connectivity,
and ubiquity.
• Web2, also known as the interactive and social web,
focuses on user-generated content and usability.
• Web3, built on decentralization and blockchain, aims for
user ownership and control. The transition from Web2 to
Web3 represents a shift towards a more user-centric,
secure internet.
• Web3 is one of the fastest-growing narratives backed by
increasingly game-changing innovations. Yet, doubters
still exist who believe that Web3 will never truly replace
Web2. In this article, we will explore the Web2 vs Web3
debate and try to understand it better.
Web 2.0
• Web 2.0 (Tim O'Reilly's definition) is a methodology for designing
systems that, by taking into account network interactions, become
better the more people use them. A feature of Web 2.0 is the principle
of involving users in filling and repeatedly checking information
material.
• In essence, the term "Web 2.0" refers to projects and services that are
actively developed and improved by the users themselves: blogs, wiki
projects, social networks, etc.
What Is Web2?
• Web2 is the current iteration of the Internet and is characterized by dynamic and
highly interactive websites and more user-generated content and usability for
end-users than Web1. It came into existence in 1999 as the iInternet pivoted
towards user engagement, enabling end-users to provide content instead of just
viewing it.
• Following the “Read and Write” philosophy, Web2 saw the rise of social media
giants like Facebook, YouTube, Instagram, and Reddit, enabling users to interact
with one another and share their thoughts and opinions.
• However, all user data and content created in the web2 model is owned by the
company providing the platform. This gives users little-to-no control over their
data.
Web2 and Web3
• While Web2 relies on centralized intermediaries
to facilitate transactions and manage data, Web3
empowers users to control their own
information without such intermediaries,
potentially transforming internet monetization,
data management, and the functioning of web-
based corporations.
What Is Web3?
• Web3 embodies a decentralized and highly user-centric Internet that could be as disruptive as Web2. It aims to dismantle the
centralized power structures associated with Web2, giving individual users greater control and ownership and creating a vibrant,
self-governing community that allows every participant to contribute to the decision-making process.
• “Web3” is now widely used to describe an ecosystem that’s built on the principles of decentralization and trustlessness.
Key ideas behind Web3
• Decentralization
• Web3 distinguishes itself from Web2 primarily through its decentralized approach to data, transactions, and content control,
shifting power from centralized tech corporations to individual users. While Web2 relies on centralized intermediaries to
facilitate transactions and manage data, Web3 empowers users to control their own information without such intermediaries,
potentially transforming internet monetization, data management, and the functioning of web-based corporations.
• Trustlessness
• The concept of trust also fundamentally differs between Web2 and Web3. In Web2, trust is established between parties in a
transaction, often mediated by a central entity. Web3, however, is built on technology that eliminates the need for mutual trust
between parties. Transactions are executed based on predefined criteria and verified data, ensuring integrity without direct
reliance on trust.
• Blockchain technology
• Blockchain technology is a distributed database system that enables the transparent sharing of information across a network.
Each block contains a set of transactions or records, which, once verified, are permanently linked to the preceding block, creating
an immutable and continuous ledger. Web3 utilizes blockchains for secure, transparent transactions and record keeping.
• Token-based economics
• New models for ownership and participation, powered by cryptocurrencies. This integrates key elements like supply dynamics,
initial allocation, vesting schedules, asset utility, and burn mechanisms to redefine ownership and participation. This approach
offers a secure, inclusive model for digital asset management, balancing economic stability with innovative distribution
Elements of Web 2.0
• Wikis: Websites that enable users to contribute, collaborate and edit site content. Wikipedia is one of the
oldest and best-known wiki-based sites.
• The increasing prevalence of Software as a Service (SaaS), web apps and cloud computing rather than
locally-installed programs and services.
• Mobile computing, also known as nomadicity, the trend toward users connecting from wherever they may
be. That trend is enabled by the proliferation of smartphones, tablets and other mobile devices in
conjunction with readily accessible Wi-Fi networks.
• Mash-ups: Web pages or applications that integrate complementary elements from two or more sources.
• Social networking: The practice of expanding the number of one's business and/or social contacts by
making connections through individuals. Social networking sites include Facebook, Twitter, LinkedIn and
Google+.
• Collaborative efforts based on the ability to reach large numbers of participants and their collective
resources, such as crowdsourcing, crowdfunding and crowdsource testing.
• User-generated content (UGC): Writing, images, audio and video content -- among other possibilities --
made freely available online by the individuals who create it.
• Unified communications (UC): The integration of multiple forms of call and multimedia/cross-media
message-management functions controlled by an individual user for both business and social purposes.
• Social curation: The collaborative sharing of content organized around one or more particular themes or
Web services
• Web services are programs that are accessed via the Web (i.e. the HTTP
protocol), and data is exchanged in XML or JSON format using one of the three
most common architectural styles of application design: RPC, SOAP, or REST. As a
result, software can use web services instead of implementing the required
functionality itself (for example, checking the email address entered in a form).
Unlike conventional dynamic libraries, this approach has several advantages:A
web service is located on the servers of the company that created it. Therefore,
the user has access to the latest version of the data at any time and does not
have to worry about updates and computing power required to perform the
operation.Tools for working with HTTP and XML are available in any modern
programming language, so web services are becoming platform-independent.
For developing Internet applications, MySQL and
PostgreSQL databases are most often used in a Unix
(Linux, Solaris, FreeBSD)-Apache-PHP bundle. This
combination is optimal in the vast majority of cases in all
key parameters: development speed, simplicity,
portability, cost of development and software used.
• Professional website creation programs are usually not visual
editors, but they allow you to automate most of the routine
operations and at the same time greatly speed up the process
of writing clean program code for a page. In addition, they
usually have many additional convenient functions, such as
code highlighting, checking the validity of the created code,
color selection, quick table creation, insertion of the main and
most common elements of hypertext markup.
• Based on open standards, AJAX uses a browser built-in XMLHttpRequest object, JavaScript and
HTML Document Object Model (DOM) to exchange data between a web browser and web
server, and to display this data.
• AJAX supports data exchange with a web server behind the scenes and allows webpages to
update asynchronously. This makes it possible to update parts of a particular webpage and
display the results to a user quickly, without having to wait to reload the entire page.
• Enterprise 2.0
• Similarly, the inclusion of Web 2.0 technologies
into an enterprise’s business processes,
intranet and extranet is sometimes referred to
as Enterprise 2.0. Most enterprise 2.0 followers
use a combination of blogs, social networking
and social collaborative tools as well as free,
paid and homegrown technologies. The term
Enterprise 2.0 was coined by Harvard Business
School Associate Professor Andrew McAfee
Customer relationship management systems (CRMS)
• Customer relationship management (CRM) is an innovative technology that seeks
to improve customer satisfaction, loyalty, and profitability by acquiring,
developing, and maintaining effective customer relationships and interactions
with stakeholders. Numerous researches on CRM have made significant progress
in several areas such as telecommunications, banking, and manufacturing, but
research specific to the healthcare environment is very limited.
What is CRM (customer relationship management)?
• There are three important types of CRMs, including operational CRM, analytical
CRM and collaborative CRM.
• Operational CRM focuses on automating and improving daily customer interactions
such as through call centers, marketing and sales workflows.
• Analytical CRM identifies trends and patterns through data analysis, which can help
businesses optimize pricing strategies and improve profitability.
• Lastly, collaborative CRM aids collaboration across departments, such as sales,
marketing and customer support. This can enhance team alignment and ensure
Components of CRM
• Common components and capabilities of CRM systems include the following:
• Marketing automation. CRM tools with marketing automation capabilities automate
repetitive tasks to enhance marketing efforts at different touchpoints in the lead
generation lifecycle. For example, as sales prospects come into the system, it might
automatically send email marketing content with the goal of turning a sales lead into
a full-fledged customer.
• Sales force automation. These tools track customer interactions and automate
certain business functions of the sales cycle. Sales force automation tools target sales
functions where it's necessary to follow leads, obtain new customers and build
customer loyalty.
• Contact center automation. Designed to reduce tedious aspects of a contact center
agent's job, contact center automation includes prerecorded audio that assists in
customer problem-solving and information dissemination. Various software tools that
integrate with the agent's desktop tools can handle customer requests to cut down
the length of calls and streamline customer service processes. Automated contact
center tools, such as chatbots, can improve customer user experiences.
• Geolocation technology, or location-based services. Some CRM systems include technology that
creates geographic marketing campaigns based on customers' physical locations, sometimes integrating
with popular location-based Global Positioning System (GPS) apps. Geolocation technology is also used
as a networking or contact management tool to find sales prospects based on a location.
• Workflow automation. CRM systems help companies optimize business processes by streamlining
mundane workloads, enabling employees to focus on high-level and creative tasks that help them close
deals.
• Lead management. Sales leads can be tracked through a CRM platform, enabling sales teams to input,
track and analyze data for leads in one place.
• Human resources (HR) management. CRM systems help track employee information, such as contact
information, performance reviews and benefits within a company. This enables the HR department to
more effectively manage the internal workforce.
• Analytics. CRM analytics examines user data to create targeted marketing campaigns that can increase
customer satisfaction rates.
• Artificial intelligence. AI technologies, such as Salesforce Einstein, have been built into CRM platforms
to automate repetitive tasks, identify customer-buying patterns and predict future customer behaviors.
• Project management. Some CRM systems include features to help users track client project details,
such as objectives, strategic alignment, processes, risk management and progress.
• Integration with other software. Many systems integrate with other software, such as call center and
enterprise resource planning systems.
Types of CRM technology
• The four main vendors of CRM systems are Microsoft, Oracle, Salesforce and SAP. These four tend to be the best systems for large
companies; other providers are popular among small to midsize businesses. The types of CRM technology offered are as follows.
Cloud-based CRM
• CRM that uses cloud computing is also known as software as a service (SaaS) or on-demand CRM. Data is stored on an external,
remote network that employees can access anytime and anywhere there is an internet connection. Sometimes, a third-party service
provider oversees system installation and maintenance. The cloud's quick and easy deployment capabilities appeal to companies with
limited technological expertise or resources. Data security is a primary concern for companies using cloud-based systems, as the
company doesn't physically control the storage and maintenance of its data. If the cloud provider goes out of business or is acquired
by another company, an enterprise's data could be compromised or lost. Compatibility issues can also arise when data is initially
migrated from a company's internal system to the cloud. Companies might consider cloud CRM as a cost-effective option. Vendors
typically charge the user on a subscription basis and offer the option of monthly or yearly payments. However, cost might still be a
concern because paying subscription fees for software can be more costly over time than investing in an on-premises model. Popular
cloud-based CRM providers include HubSpot, Salesforce, Zendesk and Zoho.
On-premises CRM
• On-premises CRM puts the onus of administration, control, security and maintenance of the database and information on the
company using the CRM software. With this approach, the company purchases licenses upfront instead of buying yearly subscriptions
from a cloud CRM provider. The software resides on the company's servers, and the user assumes the cost of any upgrades. It also
usually requires a prolonged installation process to fully integrate a company's data. Companies with complex CRM needs might
benefit from an on-premises deployment. Many cloud-based providers, such as Aptean and Salesforce, also offer on-premises
versions of their CRM software.
Open source CRM
• An Open Source CRM system makes source code available to the public, enabling companies to make alterations at no cost to the
company using the system. Open source CRM systems enable the addition and customization of data links on social media channels,
assisting companies looking to improve social CRM practices. Platforms such as Bitrix24, OroCRM, SugarCRM and SuiteCRM offer
alternatives to the proprietary platforms from Salesforce, Microsoft and other vendors. Adoption of any of these CRM deployment
methods depends on a company's business needs, resources and goals, as each has different costs associated with it.
CRM examples in practice
• Examples of CRM use vary by the type and purpose of the specific CRM system. Common ones include the following.
Contact center
• Traditionally, data intake practices for CRM systems have been the responsibility of salespeople and marketing
departments, as well as contact center agents. Sales and marketing teams procure leads and update the system with
information throughout the customer lifecycle. Contact centers gather data and revise customer history records
through service calls and technical support interactions.
Social CRM
• Social media in CRM involves businesses engaging with customers directly through social media platforms, such as
Facebook, LinkedIn and X, formerly Twitter. Social media presents an open forum for customers to share experiences
with a brand, whether they're airing grievances or promoting products.
• To add value to customer engagement on social media, businesses use various social CRM tools that monitor social
media conversations. These tools look for everything from specific mentions of a brand to the frequency of keywords
used to determine a company's target audiences and which platforms they use. Other tools are designed to analyze
social media feedback and address customer queries and issues.
• Companies are interested in capturing customer sentiments, such as the likelihood they recommend products and
overall customer satisfaction, to develop marketing and service strategies. Companies try to integrate social CRM data
with other customer data obtained from sales and marketing departments to get a single view of the customer.
• Another way in which social CRM adds value for companies and customers is through customer communities, where
customers post reviews of products and engage with other customers to troubleshoot issues and research products in
real time. Customer communities provide low-level customer service for certain kinds of problems and reduce the
number of contact center calls. These communities also provide new product ideas and feedback that companies can
use in lieu of focus groups.
Will CRM be affected by AI?