1. Chapter 8 Social Networks and Industry Disruptors in the Web 2.0 Environment

2. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall1 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. 3.Understand social networks and describe MySpace, Flickr, Facebook, Cyworld, and similar sites. 4.Understand person-to-person video sharing and describe YouTube and its competitors.

3. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall2 Learning Objectives 6.Describe business networks. 5.Describe how the entertainment industry operates in the Web 2.0 environment. 6.Describe some of the enablers of the Web 2.0 revolution. 7.Understand the relationship between Web 2.0 and e-commerce. 8.Describe Web 3.0.

4. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall3 The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors THE WEB 2.0 REVOLUTION 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.

5. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall4 The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors FOUNDATION OF WEB 2.0 REPRESENTATIVE CHARACTERISTICS OF WEB 2.0 Web 2.0 Companies Web 2.0 Going Global

6. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall5 The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors social media Online platforms and tools that people use to share opinions and experiences, including photos, videos, music, insights, and perceptions. disruptors Companies that introduce significant changes in their industries.

7. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall6 The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors

8. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall7 The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors

9. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall8 Virtual Communities virtual (Internet) community A group of people with similar interests who interact with one another using the Internet.

10. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall9 Virtual Communities Types of Virtual Communities Transaction and other business Purpose or interest Relations or practices Fantasy Social networks

11. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall10 Virtual Communities 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.

12. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall11 Virtual Communities KEY STRATEGIES FOR SUCCESSFUL ONLINE COMMUNITIES 1.Increase traffic and participation in the community 2.Focus on the needs of the members 3.Encourage free sharing of opinions and information 4.Obtain financial sponsorship 5.Consider the cultural environment 6.Provide several tools and activities for member use 7.Involve community members in activities and recruiting 8.Guide discussions, provoke controversy, and raise sticky issues

13. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall12 Virtual Communities More success factors 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

14. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall13 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.

15. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall14 Online Social Networks 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. Social Networking Services

16. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall15 Online Social Networks REPRESENTATIVE SOCIAL NETWORKS: FROM FACEBOOK TO CLASSMATES.COM Representative Social Networking Web Sites Flickr Facebook Classmates Online Friendster Orkut Xanga Digg Cyworld

17. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall16 YouTube and Company— A Whole New World YOUTUBE: THE ESSENTIALS BRIEF HISTORY AND TECHNOLOGY THE SOCIAL IMPACT OF YOUTUBE THE BUSINESS AND REVENUE MODELS Strategic Advantages of the Business Model

18. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall17 YouTube and Company— A Whole New World IMPLEMENTATION DIFFICULTIES: THE COPYRIGHT PROBLEM THE COMPETITION

19. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall18 Business and Entrepreneurial 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.

20. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall19 Business and Entrepreneurial Networks Example: LinkedIn Entrepreneurial Network COOPERATE SOCIAL NETWORKS social marketplace 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.

21. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall20 Entertainment Web 2.0 Style: From Communities to Entertainment Marketplaces ENTERTAINMENT AND BUSINESS COMMUNITIES Last.FM Mixi

22. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall21 Entertainment Web 2.0 Style: From Communities to Entertainment Marketplaces ADVERTISING MOVIES AND EVENTS IN COMMUNITIES ONLINE MARKETPLACE FOR MOVIES THE HYPE MACHINE INTERNET SERIES

23. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall22 Entertainment Web 2.0 Style: From Communities to Entertainment Marketplaces MOBILE WEB 2.0 DEVICES FOR ENTERTAINMENT AND WORK iPhone

24. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall23 Entertainment Web 2.0 Style: From Communities to Entertainment Marketplaces YAHOO! GO Nokia’s N800 Internet Tablet

25. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall24 Technology Support: From Blogger.com to Infrastructure Services WEB 2.0 AND SOCIAL SOFTWARE Communication Tools Services Emerging Technologies Tools for Individuals Web 2.0 Development Tools

26. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall25 Technology Support: From Blogger.com to Infrastructure Services TOOLS FOR BLOGGING AND WIKIS Tools for Blogging Wiki Tools Tools for RSS and Podcasting Will Wikis, Blogs, and RSS Replace E- Mail or Just Supplement It? Enterprise Wiki and Blog Tools Blogging for Business

27. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall26 Technology Support: From Blogger.com to Infrastructure Services PERSONALIZATION TOOLS: FROM MY YAHOO! TO NETVIBES 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

28. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall27 Technology Support: From Blogger.com to Infrastructure Services TOOLS THAT SUPPORT APPLICATIONS File-Sharing Tools Alexa: Web Traffic Information Provider Mobile Phones and Social Networks INFRASTRUCTURE SUPPORT The Need for Very Rich Media Other Tools WHERE IS WEB 2.0 SOFTWARE GOING?

29. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall28 Web 2.0, Social Networks, and E-Commerce WHY IS THERE AN INTEREST? ADVERTISING Viral Marketing viral blogging Viral marketing done by bloggers. Classifieds and Job Listing Mobile Advertising

30. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall29 Web 2.0, Social Networks, and E-Commerce SHOPPING FEEDBACK FROM CUSTOMERS Conversational Marketing Risks

31. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall30 Web 2.0, Social Networks, and E-Commerce

32. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall31 Web 2.0, Social Networks, and E-Commerce 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

33. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall32 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

34. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall33 The Future: Web 3.0 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

35. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall34 The Future: Web 3.0 Future Threats Security concerns Lack of Net neutrality Copyright complaints Choppy connectivity

36. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall35 Managerial Issues 1.How will e-commerce impact the business environment? 2.What are the impacts of the Web 2.0 boom? 3.Should we explore Web 2.0 collaboration? 4.How shall we start? 5.Do we need a community? 6.How should we deal with Web 2.0 risks?

37. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall36 Summary 1.Web 2.0, social media, and disruptors. 2.The structure and role of virtual communities. 3.Online social networks. 4.YouTube and others. 5.Business networks.

38. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall37 Summary 6.Web 2.0 and entertainment. 7.Web 2.0 enablers. 8.Social networks and e-commerce. 9.Web 3.0.

39. Chapter 8 Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall38 All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. Copyright © 2009 Pearson Education, Inc. Copyright © 2009 Pearson Education, Inc. Publishing as Prentice Hall