Transcript Web 2.0, Social Networks, and E-Commerce

Social Networks and
Industry Disruptors in
the Web 2.0 Environment
Learning Objectives
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Understand the Web 2.0 revolution, social and business
networks, and industry and market disruptors
Understand the concept, structure, types, and issues of
virtual communities
Understand social networks and describe MySpace, Flickr,
Facebook, Cyworld, and similar sites
Understand person-to-person video sharing and describe
YouTube and its competitors
Describe business networks
Describe how the entertainment industry operates in the
Web 2.0 environment
Describe some of the enablers of the Web 2.0 revolution
Understand the relationship between Web 2.0 and ecommerce
Describe Web 3.0
The Web 2.0 Revolution, Social Networks,
Innovations, Media, and Industry Disruptors
Web 1.0
 Organized around pages, software,
technology and corporations
Web 2.0
 The popular term for advanced Internet
technology and applications, including blogs,
wikis, RSS, and social bookmarking
 One of the most significant differences
between Web 2.0 and the traditional World
Wide Web is greater collaboration among
users, content providers, and enterprises
Web 2.0 Statistics
 There are 70 million blogs
 About 120.000 new blogs are created each day or
1,4 every second
 Each day, approximately 1,5 million posts are
made to blogs or 17 posts per second
 Japanese is the most popular blogging language
(37%); English is second (33%); Chinese is third
(8%)
 230 million posts that use tags or categories are
tracked
 etc
Web 2.0 Tools
O’Reilly (2005) cited the following as
being important Web 2.0 tools:
 Google AdSense
 Flickr
 Blogs
 Web services
 RSS and podcasting
 Search engines
 Napster
Representative Characteristics of
Web 2.0 (O’Reilly 2005)
 The ability to tap into the collective intelligence of users
 Making data available in new or never-intended ways
 The presence of lightweight programming techniques and
tools that lets nearly anyone act as a developer
 The virtual elimination of software-upgrade cycles
 Network as platforms, delivering and allowing user to use
applications entirely through a browser
 Users own the data on the site and exercise control over
that data
 An architecture of participation and digital democracy
encourages users to add value to the application as they
use it
 New business models are created
The Web 2.0 Revolution, Social Networks,
Innovations, Media, and Industry Disruptors [2]
 Social media
 One of the major phenomena of Web 2.0 is the emergence and
rise of mass social media
 Online platforms and tools that people use to share opinions and
experiences, including photos, videos, music, insights, and
perceptions
 Feature: they are controlled by the users rather than by
organizations
 People can use these media with little or no cost
 Disruptors
 Companies that introduce significant changes in their industries
 Example: ZOPA which facilitates person-to-person lending. This
might lead to changes in the banking industry
The Web 2.0 Revolution, Social Networks,
Innovations, Media, and Industry Disruptors [3]
The Web 2.0 Revolution, Social Networks,
Innovations, Media, and Industry Disruptors [4]
Virtual Communities
 Virtual (Internet) community
 A group of people with similar interests who interact
with one another using the Internet
 Virtual communities parallel physical communities,
such as neighborhoods, clubs and associations but
people don’t meet face-to-face (online)
 Similar to the click-and-mortar e-commerce model
Virtual Communities [2]
Elements of interaction in a virtual
community
Category
Element
Communication
Bulletion boards, chat rooms, email,
newsletters, blogging, wikis, mashups, web
postings, voting
Information
Directories and yellow pages, search engine,
member-generated content, links to
information sources, expert advice
EC element
E-catalogs, shopping carts, advertisements,
auction of all types, classified ads, bartering
online
Virtual Communities [3]
 Types of Virtual Communities
 Transaction and other business
 Purpose or interest
 Relations or practices
 Fantasy
 Social networks
 Commercial Aspects of Communities
 Social commerce
• A subset of e-commerce in which the users and
their personal relationships are at the forefront
• The main element is the involvement of the user in
the marketing of products being sold
Virtual Communities [4]
 Key Strategies for successful online
communities (Accenture)
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Increase traffic and participation in the community
Focus on the needs of the members
Encourage free sharing of opinions and information
Obtain financial sponsorship
Consider the cultural environment
Provide several tools and activities for member use
Involve community members in activities and
recruiting
8. Guide discussions, provoke controversy, and raise
sticky issues
Virtual Communities [5]
 More success factors (Leimeister and
Krcmar, 2004)
1. Handle member data sensitively
2. Maintain stability of the Web site with respect to the
consistency of content, services, and types of
information offered
3. Provide fast reaction time of the Web site
4. Offer up-to-date content
5. Offer continuous community control with regard to
member satisfaction
6. Establish codes of behavior (netiquette or guidelines)
to contain conflict potential
Online Social Networks
 Social network
 A special structure composed of individuals (or organizations) that is
based on how its members are connected through various social
familiarities
 Social network theory views social relationships in terms of nodes and
ties
• Nodes: individual actors within the networks
• Ties: relationships between the actors
 Social Network Analysis (SNA)
• The mapping and measuring of relationships and flows between
people, groups, organizations, animals, computers, or other
information or knowledge processing entities
• The nodes in the network are the people and groups, whereas the
links show relationships or flows between the nodes
• SNA provides both a visual and a mathematical analysis of
relationships
Online Social Networks [2]
 Representative social networks: from
Facebook to Classmates.com
 Representative Social Networking Web Sites
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Flickr
Facebook
Classmates Online
Friendster
Orkut
Xanga
Digg
Cyworld
YouTube and Company—
A Whole New World
 Free video-sharing websites (where users can
upload, view and share video clips)
 Users can rate videos and the site shows the
average rating and the number of times users
have watched a video
 The service is free for everyone
 By July 2006, 100 million clips were viewed daily
with an additional 65.000 new videos uploaded
each day
 The site has about 20.000.000 visitors per month
 YouTube has also become a means of promoting
bands and their musics (Social impact)
YouTube [2]
 It’s a prime example of a social network
with YouTube, users can:
 Upload, tag and share videos worldwide
 Browse millions of original videos uploaded by
community members
 Find, join and create video groups to connect with
people who have similar interests
 Customize the experience by subscribing to member
videos, saving favorites and creating play lists
 Integrate YouTube videos on websites using video
embeds or APIs
 Elect to broadcast their videos publicly or share them
privately with specified friends and family upon upload
YouTube [3]
The Business and Revenue Models
 Before being bought by Google, YouTube
had an advertising-based business model
• The site launched advertisements in March
2006 using Google’s AdSense
 A steady increase in high-speed Internet
connections at home has propelled
YouTube’s success, making the
distribution and consumption of online
video more effective
YouTube [4]
Implementation difficulties
 YouTube policy doesn’t allow content to be
uploaded by anyone not permitted by U.S.
Copyright law to do so and the company
frequently removes infringing content
To counter the competition, YouTube
is offering innovative applications
such as video awards to most creative
and popular original videos
Business Networks
Business network
 A group of people that have some kind of
commercial relationship
 For example, the relationships between
sellers and buyers, buyers among
themselves, buyers and suppliers, and
colleagues and other colleagues
• LinkedIn
– Allow registered users to maintain a list of contact details
of people they know and trust in business
– Learn about jobs, people and business opportunities
recommended by contacts in their contact network
Entrepreneurial Networks
Offer resources to start or improve
entrepreneurial projects or startups
 Help their members in properly running a
business or project as well as differentiating
the business from similar ones
The goal: bring together a broad selection
of professionals and resources that
complement each others’ endeavors
Example
 ecademy.com: a global social network for
businesspeople
Social Marketplace
 Derived from the combination of social
networking and marketplaces
 An online community that harnesses the power of
social networks for the introduction, buying, and
selling of products, services, and resources,
including people’s own creations
 Example:
 Windows live expo: online social marketplace that
provide online classifieds (search based on friends
and contacts or by geographic proximity)
 Fotolia.com, Flipsy, etc
Entertainment Web 2.0 Style: From
Communities to Entertainment Marketplaces
 Entertainment and business communities
 Example: last.fm (radio), mixi.co.jp (invitation-only
social networking service site in Japan)
 Advertising movies and events in communities
 Use social networking site to promote movie
 Online marketplace for movies
 Indplay.com has a mission to connect films with
professional buyers through an online marketplace
 The hype machine (hypem.com): new concept which a
server scans and indexs music blogs then the files is
added to a database. The title is posted on Hype
Machine directory.
 Internet series: similar to soap operas on TV
Entertainment Web 2.0 Style: From
Communities to Entertainment Marketplaces
 Mobile Web 2.0 devices
for entertainment and
work
 iPhone
• all-in-one smartphone
• Apple’s product
 Nokia’s N800 Internet
Tablet
 SAMSUNG Galaxy
 dll.
Technology Support: From Blogger.com
to Infrastructure Services
 Web 2.0 and social software
 Social software enables people to rendezvous, connect and
collaborate through computer-mediated communication
 Social software tools
• Communication tools: instant messaging, VoIP and Skype, text
chat, internet forums, blogs, wikis, collaborative real-time
editor, prediction markets
• Services: search engine, social guides, social bookmarking,
social citations, social libraries, etc
• Emerging technologies: P2P social networks, virtual presence,
mobile tools for web 2.0
• Tools for individuals: personalization, customization, search,
RSS, file-sharing tools
• Web 2.0 development tolls: mashups, web services
Technology Support: From Blogger.com
to Infrastructure Services [2]
Tools for blogging and wikis
 Tools for blogging: problogger.net, digg.com,
del.icio.us, etc
 Wiki tools: editme.com, seedwiki.com,
socialtext.com, etc
 Tools for RSS and Podcasting: newsgator.com,
etc
 Will Wikis, Blogs, and RSS Replace E-Mail or
Just Supplement It?
 Enterprise Wiki and Blog Tools
 Blogging for Business
Technology Support: From Blogger.com
to Infrastructure Services [3]
 Personalization tools: from My Yahoo! To netvibes
 My Yahoo!: combine page segments featuring Yahoo!’s own
news and information with segments containing RSS feeds
 Netvibes.com: modules can be added easily and are arranged in
a menu
 DEVELOPMENT TOOLS
 Social Bookmarking
• Web service for sharing Internet bookmarks. The sites are a
popular way to store, classify, share, and search links
through the practice of folksonomy techniques on the Internet
and intranets.
 Intel’s Web 2.0 Software Suite
• A collaboration software suite for SMEs
Technology Support: From Blogger.com
to Infrastructure Services [4]
 Tools that support applications
 File-Sharing Tools: allpeers.com, mediamax.com, pando.com, etc
 Alexa: Web Traffic Information Provider
 Mobile Phones and Social Networks
 Infrastructure support
 The Need for Very Rich Media
 A number of companies monitor online chats and provide
subsribers with reports on topics
 Google Alerts: monitor what the media has to say about any topic
 Advanced search features
 etc
 Where is web 2.0 software going?
 Large companies like to embed web 2.0 tools in their existing
collaboration products
Web 2.0, Social Networks,
and E-Commerce
Why is there an interest?
 Retailers’ benefit from online communities
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Get consumers’ feedback
Word-of-mouth (i.e. viral marketing)
Increased website traffic
Increased sales using collaborative filtering
ADVERTISING
 Viral Marketing
 Viral blogging
• Viral marketing done by bloggers.
 Classifieds and Job Listing
 Mobile Advertising
Web 2.0, Social Networks,
and E-Commerce
Shopping
 MySpace are trying to capitalize on ecommerce, ex:
• Lets brand owners create profile pages, ex. Burger
King with its mascot “The King”
• Music-download service
Feedback from customers
 Conversational Marketing: brings in feedback via
blogs, wikis, online forums, chat rooms and social
networking sites
 Risks
• Negative feedback
Web 2.0, Social Networks,
and E-Commerce [2]
Web 2.0, Social Networks,
and E-Commerce [3]
 Other revenue-generation strategies in social networks
 Indirect Strategies
• Strategic acquisition
• Maintaining control of hard to re-create data sources
• Building attention trust
• Turning applications into platforms
• Fully automated online customer self-service
 Web 2.0 commerce activities inside the enterprise
 Allow employees to collaborate and communicate in an employeedriven system
 Promote the use of enterprise wikis via demonstrations
 Set up internal blogs and incorporate them into internal directories
 Set up enterprise social bookmarking systems
 CIOs should be involved from the beginning to make sure the right
infrastructure and tools are in place
The Future: Web 3.0
WEB 3.0: WHAT’S NEXT?
 Web 3.0 Structure
• Application Program Interface (API) Services
• Aggregation Services
• Application Services
– Voice commerce (v-commerce)
» An umbrella term for the use of speech recognition to
support voice-activated services, including Internet
browsing and e-mail retrieval.
• Serviced Clients
The Future: Web 3.0 [2]
 Web 3.0 and the Semantic Web
• Semantic Web
– An evolving extension of the Web in which Web content
can be expressed not only in natural language, but also
in a form that can be understood, interpreted, and used
by intelligent computer software agents, permitting them
to find, share, and integrate information more easily
 Mobile Social Networks
• Web 3.0 will be characterized by an explosion
of mobile social networks
The Future: Web 3.0 [3]
 Future Threats
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Security concerns
Lack of Net neutrality
Copyright complaints
Choppy connectivity
Summary
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Web 2.0 has brought together the contributions
of millions of people and made their work,
opinions and identity matter
User-created content is a major characteristic
of web 2.0 as is the emergence of social
networking
One impact of web 2.0 has been the creation of
industry disruptors
Virtual communities create new types of
business opportunities
Web 3.0 is the next generation of the web
which will combine social and business
computing