Online application development is really now a commodity exercise. Its amazing how fast and how easy and how inexpensively one can develop a robust, database-driven application. So how to online companies win? You can create clever features but there is so much pressure to be open and collaborative in order to get attention that clever features don't stay proprietary for very long.
User Interface, which at one time was relegated as the very last thing to throw together, is rapidly becoming a key variable (and maybe the key variable) to win. Look at Yahoo's comment today where they said they have tested over 141 front page designs to see which one can be the most sticky. Ease of use is a big part of today's value proposition and can't be ignored.
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