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More and more in tech, it seems that your long-term viability as a company is dependent on when you were born.
Think of the differences between generations
and when we talk about how the Baby Boomers behave differently from Gen X’ers
and additional differences with the Millennials.
Each generation is perceived to see the world in a very unique way that translates into their buying decisions and countless other habits.
Each generation is perceived to see the world in a very unique way that translates into their buying decisions and countless other habits.
In the tech world, we’ve really had 3 generations:
•
Web 1.0 (companies founded from
1994 – 2001, including Netscape, Yahoo!
(YHOO), AOL (AOL), Google (GOOG), Amazon (AMZN) and eBay (EBAY)),
•
Web 2.0 or Social (companies
founded from 2002 – 2009, including Facebook (FB), LinkedIn (LNKD), and Groupon
(GRPN)),
•
and now Mobile
(from 2010 – present, including Instagram).
With each succeeding generation in tech, it
seems the prior generation can’t quite wrap its head around the subtle changes
that the next generation brings. Web 1.0 companies did a great job of
aggregating data and presenting it in an easy to digest portal fashion.
Google did a good job organizing the chaos of the Web better than
AltaVista, Excite, Lycos and all the other search engines that preceded it.
Amazon did a great job of centralizing the chaos of e-commerce shopping
and putting all you needed in one place.
When Web 2.0 companies began to emerge, they
seemed to gravitate to the importance of social connections. MySpace
built a network of people with a passion for music initially. Facebook
got college students. LinkedIn got the white collar professionals.
Digg, Reddit, and StumbleUpon showed how users could generate content
themselves and make the overall community more valuable.
Yet, Web 1.0 companies never really seemed to
be able to grasp the importance of building a social community and tapping into
the backgrounds of those users. Even when it seems painfully obvious to
everyone, there just doesn’t seem to be the capacity of these older companies
to shift to a new paradigm. Why has Amazon done so little in social?
And Google? Even as they pour billions at the problem, their primary
business model which made them successful in the first place seems to override
their expansion into some new way of thinking.
Social companies born since 2010 have a very
different view of the world. These companies – and Instagram is the most
topical example at the moment – view the mobile smartphone as the primary (and
oftentimes exclusive) platform for their application. They don’t even
think of launching via a web site. They assume, over time, people will
use their mobile applications almost entirely instead of websites.



