Seminar 5 Social Networks in the Web 2.0 Environment Ref: Chapter 8 – Turban and Volonino Seminar 5 Social Networks in the Web 2.0 Environment Ref: Chapter 8 – Turban and Volonino

Learning Objectives 1. Understand the Web 2.0 revolution, social and business networks and industry and market disruptors. 2. Understand the concept, structure, types, and issues of virtual communities and worlds. 3. Understand social networking and social networking sites. 4. Describe enterprise social networks. 5. Understand the Web 2.0 social networking, and e- commerce relationship. 6. Describe the Web 3.0 concept.

Problem – Competition is user created; often poor & lacking accuracy. Invasion of privacy. Solution – Advisory board – block offenders, improve complaint handling, reader involvement initiative. Results – Initiatives boosted reader confidence early-on tripling traffic. Problems continue.

You…….

The Web 2.0 Revolution

Web 2.0 vs. Traditional Web Greater collaboration among Internet users & others, content providers & enterprises. May improve internal business processes & marketing. Far better collaboration with customers, partners, suppliers, & internal users.

Web 2.0 Key Stats 75 million blogs exist online & about 120,000 new blogs added each day, 1.3 new blogs every second. Up to 7000 new splogs (spam blogs) created every day. 1.5 million comments posted in blogs every day, 17 posts per second. Growing to 75 million blogs took only 320 days. Japanese is #1 blogging language at 37%, English at 33%, Chinese at 8%.

Web 2.0 Characteristics Ability to tap into user intelligence. Data available in new or never-intended ways. Rich interactive, user-friendly interface. Minimal programming knowledge required. Perpetual beta or work-in-progress state making prototype opportunities rapid. Major emphasis on social networks. Global spreading of innovative Web sites.

Web 2.0 Companies – The Next Net 25 The Next Net 25The Next Net 25 Social Media: Mashups & Filters: Enterprise :

Social Media Online platform to share “social stuff” ◦ People Control ◦ Use with Ease ◦ Little or no Cost

The emergence and rise of mass social media.

The Disruptors Innovations that change the way a business is conducted. ◦ Online wedding ◦ Real estate industry

Industry & Market Disruptors Questions to help identify disruptors (Disruption Group): 1. Is service or product simpler, cheaper or more accessible? 2. Does disruptor change basis of competition with current suppliers? 3. Does disruptor have a different business model? 4. Does product or service fit with what customers value & pay for?

You and the Traditional Media

Virtual Communities and Virtual World Virtual Community – interaction on the internet Virtual World – user defined 3D world Business aspects of virtual worlds

Online Communities Associations Ethnic Gender Affinity

Social Networks Sites

Virtual Worlds Top 10 Trends for Online Communities Second Life

Social Networking Web Sites - Examples

Issues For Social Network Services Lack of privacy controls Inappropriate language translations among countries Fierce competition for users Prey to illegal activities Cultural objections may become volatile

Enterprise Social Networks Characteristics Gated-access approach is common Common interests Source of information & assistance for business purposes

Typical modes of interaction with social networks.

Enterprise Social Network Interfaces Utilize existing social networks Create in-house network & then use as employee communication tool & form of knowledge management Conduct business activities Create services Create and/or participate in social marketplace

Retailers Benefit from Online Communities Source of feedback similar to focus group Viral marketing Increased website traffic Increased sales resulting in profit

YouTube is a Steal! Tremendous ad-revenue potential Brand-created entertainment content Ronaldinho: Touch of Gold Ronaldinho: Touch of Gold User-driven product advertising Nokia N90 Nokia N90 Multichannel word-of-mouth campaign Customer product reviews

Web 3.0 Structure 1. Application Program Interface Services 2. Aggregation Services 3. Application Services 4. Serviced Clients

Managerial Issues Impact from social networking. Web 2.0 impact. To sponsor, or not, a social network & all that it would require. Dealing with risk.

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