Today’s blog is about the second Patterns of Web 2.0 application which is “Data is the New Intel Inside”. O’reilly referred to it as “Every significant internet application to date has been backed by a specialized database. Database management is a core competency of Web 2.0 companies, so much so that we have sometimes referred to these applications as “infoware” rather than merely software.” therefore, a good data collection strategy will lead to the company’s success.
A good example of a company that uses this pattern is guvera. Guvera takes a different approach to providing music to consumers for free whilst also being legal. This is done by allowing advertisers to pay for the music instead of consumers. Now I will be talking about the process that Guvera is taking to make this possible. Guvera matches brands to consumers and provides a brand oriented channel for the consumer to download . The company behind the branded channel pays for a number of credits per user which means the user has access to so many downloads via their channel.
Consumers are matched to brands using their profile and preferences which they have entered when they registered in the website. Therefore, the more information the consumer provides, the more accurately they can be matched with a brand and the more credits they receive in the brand channel. In other words, the consumer data is what drives Guvera and what makes it successful. Consumer data provides Guvera with something invaluable to offer advertisers in order to generate money and address the problem of consumers not wanting to pay for music, however, artists and record labels needing to be get their money.
Data collection which is used by Guvera has many great benefits. After the user provided his/her information to Guvera, then Guvera can traget advertise to that user based on the information provided. Most importantly, the company can improve by generating the statistics about the users. As with all websites that take user data, especially a whole profile of user data, the biggest concern I can see is how the consumer data is stored and used. and who owns and has access to it? here is a video explaining this issue.
According to the Guvera Privacy Statement , user data is kept confidential and is never passed on to advertisers or used for other advertising purposes. However, the data provided might be used with other third party data to enhance the user experience. Moreover, the collected data might be received by advertising company whose advertise in the website. Hence, your data that you provided to Guvera will be distributed to other third party advertisement company or other website.
To conclude, the users should be careful about what they share in websites that collect their data and use for other purposes. Moreover, users should read the privacy agreement of the website before registering.
Tim O’Riely. (2005). Design Patterns and Business Models for the Next Generation of Software.