Today Marshall Kirkpatrick interviewed Facebook CEO Mark Zuckerberg at SXSW, with the main topic of discussion being Data Portability. Later in the day at the festival, a star studded panel discussed building portable social networks. The panel highlighted four technologies that help make identity and data more portable across social networks: hCard; XFN and FOAF; OpenID; OAuth.

This post serves as an introduction to each of these technologies.

hCard: Providing Your Contact Information

Users are tired of repeatedly entering profile information over and over again. This problem is solved by the microformat hCard. Leslie Chicoine, an Experience Designer at Get Satisfaction, talked about how her company had created a sign up process for their web application using hCard. (see screen shot below)

XFN & FOAF: Who are your contacts

Another microformat, XFN, and the FOAF project are techniques for embedding relationships in links. This allows social networks to recommend contacts that should be shared, without scraping web based email clients. Recently, Google introduced a Social Graph API, which "index[es] the public Web for XHTML Friends Network (XFN), Friend of a Friend (FOAF) markup and other publicly declared connections".

Something very interesting that I wasn't aware of until today's panel was that both Plaxo & Six Apart were working on something similar before Google announced OpenSocial, according to Joe Smarr and David Recordon. However, once Google started focusing on this they were happy to hand it over to them – because Google "has the web on a hard drive", so it makes the crawling component of this far less difficult. For a good overview on Google's Social Graph API, check out the following introductory video:

OpenID: Authenticating Individuals

OpenID is a decentralized framework for allowing social networks (and other web applications) to authenticate users. In other words, it lets users login using shared credentials across different services. It also allows individuals to decide what information they want to share with each application. For example, a user might decide not to provide their postal or email address.

OAuth: Authorizing Access

The final protocol discussed was OAuth. It is a protocol that is less about authentication (OpenID) and more about authorization. The protocol has been developed over the last year. The specification was released in December 2007 and modeled off a number of authorization protocols, including the Flickr Authorization protocol. According to Chris Messina, a number of services have already started using it including:

• Fireeagle
• Open Social
• Pownce
• Get Satisfcation, and
• Magnolia
• (and Twitter support will be coming soon)

Chris also pointed to a comment in a recent post of ours about email passwords, that highlighted the need for tools like these. Also there was a comment on RWW from Oren Michels at Mashery, indicating it is the most requested feature for them right now.

Conclusion

Securely moving your data around the web has increasingly become an important concept on the web. Arguably, it was the most discussed meme at this year’s SXSW. While not an application, you could say it has been ‘this year’s Twitter‘.

The Data Portability group deserves credit for educating the market. Beyond that, it is also an idea whose time has clearly come. It is interesting to think what applications will be built on top of these portability standards – they might be popular by next year’s SXSW!

I’m back at SXSW as one of the RWW contributors covering the interactive festival. This afternoon I attended Jason Fried’s presentation on “Stuff We’ve Learned at 37 Signals“. 37 Signals is a software company headquartered in Chicago, IL that started as a interactive design company and has since become one of the leading software companies for personal productivity software.

Currently over one million people and businesses use their productivity applications (including RWW, which is a paying customer of Basecamp). They also are responsible for creating and then open sourcing the popular web developer language Ruby on Rails. Jason Fried is the company’s founder. As a company I’ve long respected, it was interested to hear him discuss some of the things he’s learned developing 37 Signals.

Lesson 1: Ignore The Great Unknown

Jason started his presentation talking about “the great unknown,” which he defined as the things that hang over every entrepreneur’s head when they are starting a company. For example, “what about when we have 1M customers or 100 employees.” Jason encouraged people to ignore these concerns and focus on the now. He pointed out that often as entrepreneurs, we worry about the impact of our decisions rather than just making the right decision. He asserted that this is crazy, because decisions made today don’t have to last forever – we “must optimize for today.”

Lesson 2: Watch Out for Red Flags

The next point was about interpersonal dynamics in the workplace and watching out for what he called ‘red flags.’ Red flags are basically words or phrases that end up causing problems in communications. For example, at 37 Signals they learned to be careful with the words: need, can’t, easy, only, and fast. For example saying, how easy someone else’s job is or that they can’t ship a product without one feature.

Lesson 3: Be Successful and Make Money by Helping Other People be Successful and Make Money

He talked about the powerful reaction people had to Basecamp when they first released it (Basecamp is a very lightweight project management tool). They realized this was because the tool was helping other people do their job better. This has become part of their philosophy, looking for opportunities in the marketplace to “spot chain reactions and be the catalyst” around helping others.

Lesson 4: Target Nonconsumers and Nonconsumption

This is actually a concept that Jason borrowed from Clayton Christensen (a famous professor at Harvard Business School) in the books Innovators Dilemma and Innovators Solution. The idea is that there exists an entire market of nonconsumers, or people who have a need but existing players aren’t targeting these people. The advantage of targeting this segment is that you minimize the chance for competition from entrenched players.

Lesson 5: Question Your Work Regularly

At 37 Signals, Jason reported they are always asking questions to make sure they are doing the right things. Internally, this list of questions includes:

• why are we doing this?
• what problem are we solving?
• is this actually useful?
• are we adding value?
• will this change behavior?
• is there an easier way?
• what’s the opportunity cost?
• is it really worth it?

Lesson 6: Read your Product

Given the firm’s background, this was a lesson I found particularly interesting. Jason claimed that the “Biggest sin on the internet right now is bad copywriting … paying too much attention to pixels and not enough attention to words.” Beyond this he pointed out that words are actually less expensive to correct and improved copy will make doing the design second result in a stronger design.

Lesson 7: Err on the Side of Simple

As surprising as I found the last lesson, this one was probably the most obvious given 37 Signal’s business. Jason pointed out that you should always “start with the easy way.” The interesting and non-obvious point was that he extended this beyond product issues. For example, he recommended people start a company by setting up an LLC, until they need a C Corp.

Lesson 8: Invest in What Doesn’t Change

Jason said that this is the “best business advice he’s gotten in some time.” It interesting because this isn’t something that is intuitive, when you think about tech companies which tend to be focused on what is new and upcoming. However, Jason pointed out that principals can last. For example at 37 Signals, he said they anticipate in 10 years “simple, affordable software” will still be worth investing in.

Lesson 9: Follow the Chefs

Jason called chefs the smartest business professionals. He explained this is because they are aware that you become famous and successful by giving knowledge away. For example, chefs have cooking shows and write cook books. Yet it doesn’t stop their restaurants from being successful. In fact, he claimed they are probably more successful because of their sharing.

Lesson 10: Interruption is the Enemy of Productivity

Originally David Heinemeier Hansson (Jason’s partner) and Jason didn’t live in the same city. They eagerly awaited David moving to Chicago and being able to get even more done. Interestingly, when David arrived they actually found productivity decreasing. At 37 Signals, they have come to believe that this was due to the increased interruptions; and so they ended up favoring passive communication like email versus things that are more instantaneous but also interrupt your workflow.

Lesson 11: Road Maps Send You in the Wrong Direction

When talking about business plans, financial projections, or features for products 37Signals believes road maps are bad, because “they lock you into the past.” The only exception is APIs, because people are counting on it. Instead he said your expectation should be “do the right thing at the right time.”

Lesson 12: Be Clear in Crisis

At the beginning of this year, 37 Signals had some infrastructure problems that resulted in a few hours of unscheduled downtime. This was widely discussed on the internet. They quickly posted about what had happened and during the technical problems kept they the homepage updated with status messages. Through this experience, it reinforced their belief that people love you even more if you are open, honest, public and responsive during a crisis.

Lesson 13: Make Tiny Decisions

Rather than trying to make major decisions, when possible, Jason encouraged entrepreneurs to break problems down to the atomic level. In web properties, this is especially powerful because they’ve been able to break features down to the atomic level and then launch them one at a time. This is good because the team can gain momentum and celebrate little launches. However, it’s also good because “when you make tiny decisions, you can’t make big mistakes.”

Lesson 14: Make it Matter

Jason ended his presentation by encouraging the audience to make sure their work was significant. He talked about how meaningful he felt the products they were creating were for individuals. Before opening it up for questions, he said that “everything you do should matter.”

Conclusion

One of the things I love most about SXSW is the transparency with which so many leaders share about their business. At last year’s festival, two of my favorite panels were: Web App Autopsy and The Figures Behind the Top Web Apps.

We’d love to hear any good case studies or lessons you’ve learned running startups or in business. Please share them in the comments below.

Charlene Li gave the opening keynote at today’s Graphing Social Patterns conference. The keynote was titled “The Future of Social Networks” and Charlene clarified that specifically she was focused on five to ten years out in her presentation. Her basic thesis is that in the future, ’social networks will be like air.’ In other words, it will be ubiquitous as you navigate across the web and sites will feel inadequate (like you can’t breathe) if a user’s social network isn’t part of the experience.

The majority of Charlene’s talk then focused on how each component of a social network will evolve given this vision:

• Profiles
• Relationships
• Activities
• Business Models

Profiles: A Universal Identity

Like most of us, Charlene has literally dozens of identities online (see slide below).

Moving forward she’d like to see a universal identity. Her specific proposal centers on either email and/or mobile phones, since this would be an identity she controls. Thankfully, Charlene also anticipates a federated approach (such as OpenID.) Also, she anticipates a few major players will probably serve as major federation focus points. We have already seen this happen begin to happen with both AOL and Yahoo! supporting OpenID.

Charlene also talked about the “Bill of Rights for Users of the Social Web," a document created by a number of thought leaders in the social web: Joseph Smarr, Marc Canter, Robert Scoble & Michael Arrington. The document states:

We publicly assert that all users of the social web are entitled to certain fundamental rights, specifically:

• Ownership of their own personal information, including:

• their own profile data
• the list of people they are connected to
• the activity stream of content they create;

Control of whether and how such personal information is shared with others; and

Freedom to grant persistent access to their personal information to trusted external sites.

I imagine there will be more conversation on this in the afternoon panel Dan Farber is moderating on Data Portability.

Relationships: A Single Social Graph

Over the next few years, Charlene pointed out that a unified social graph will develop. She showed her current social graph as it exists inside Facebook, and then pointed out what it was missing: colleagues, parents, extended family, school parents, neighbors (see slide below). I think this is something we all realize intuitively – so the overriding point is that our real social graph is far more complex.

New ‘Entrants’ Will Be Portals

I actually found this one of the more interesting points from Charlene’s presentation. She proposed that the a number of ‘new entrants’ will emerge, except that they won’t be startups at all. Instead, she predicts that a number of the major portals (Google, Microsoft Live, Yahoo!, and AOL) will actually fill the the relationship mapping gap. She pointed to 4 reasons why they are natural entrants:

1. Millions of Regular Users
2. Search & Deep Content
3. Ad & Content Networks
4. Relationship Maps

Activities: Social Context for Activities

Going back to ’social networks being like air’, not surprisingly Charlene projects that social context will be important for most online activities. As an example of how this might happen, she used shopping. She talked about Amazon integrating with Facebook (or any other repository of social graph info) such that they could highlight book reviews from her friends. Charlene also pointed out that any portal could easily incorporate social data into their site. She used Yahoo! as an example saying they could:

1. Search based on what my friends find relevant
2. Elevate stories tagged by my friends — anywhere (maybe multiple social graphs web 2.0 & shopping)
3. Compare daily portfolio performance to friends
4. In terms of advertising, which of my friends owns a Focus & what do they think of it?

Business Models: Social Influence Defines Marketing Value

When talking about business models, her basic point was that we have yet to properly value networks based on their social value. She pointed to Marian Salzman’s (of JWT) concept of personal CPMs. The basic idea being that an individual’s authority on specific topics plus their network’s interest and authority on the topic, results in a value of reaching that user. If this is true then “social networks will have to compete to have the best experience for high influence people.”

Conclusion

Based on the vision she laid out, Charlene ended with a map of how open she anticipated these open platforms evolving.

To realize this vision of ubiquitous social networks, Charlene pointed out 2 things that must happen:

1. We need the technology to evolve, which she wasn’t that worried about
2. We need to increase trust, which she challenged the industry to think about

You can view all of Charlene’s Slides here.

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