1. E-Commerce, Web 2.0, and Social Networking
Chapter 8
E-Commerce, Web 2.0,
and Social Networking

2. Before the Internet… How did we do business?
How did companies communicate with customers?
Who controlled the relationship?
E-commerce: buying and selling of goods and services over public and private computer networks

3. Evolution of Interorganizational Systems

4. How do companies use E-Commerce?
E-Commerce is the buying and selling of goods and services over public and private computer networks
Merchant companies – take title to the goods they sell. They buy and then resell them.
Example?
Nonmerchant companies – arrange for the purchase and sale of goods without ever owning or taking title

5. E-Commerce Merchant Companies
Types – May use different IS
Sell directly to customers
B2C
Sell to companies
B2B
Sell to government
B2G
Web storefronts – customers can manage orders

6. Example

7. Nonmerchant E-Commerce
Most common
Auctions
Others can serve specific industries or interests
Clearinghouses
Provide goods and services at stated prices and arrange for delivery but never take title
Electronic Exchange
Matches buyers and sellers

8. How does E-commerce improve market efficiency?
Disintermediation
Elimination of middle layers in supply chain
Distribution directly to buyer
Eliminates carrying costs, shipping costs are reduced
Improved flow of price information
Customer can find best price for the value
Seller can understand price elasticity
Direct information from consumer
Price experimentation

9. Web 2.0
Loose grouping of capabilities, technologies, business models, and philosophies
First Example:

10. Comparing Web 2.0 with Traditional Processing

11. Group Exercise Each group look at one of the characteristics
Compare and contrast the differences between Web 2.0 and Traditional Processing
What do the terms mean?
Can you find an example of the Web 2.0 characteristic?

12. Software as a Service Companies that don’t sell a product or license
They provide software as a service (free)
Thin client processing (no software installed)
Example: Google Maps

13. Why is Web 2.0 important? Use increases value
Participation and ownership differences
“Do what you want, we’ll publish it.”

14. How can businesses benefit?
Advertising
Adwords – you pay to put your ad on sites or in search results
Adsense – others pay you to put their ad on your site
Social Networking
Mashups

15. (Extra content, not in book)
Internet Advertising
(Extra content, not in book)

16. Advertising Targeted Advertising possible in Facebook
Location
Demographics
Interests
Send people to your site for information, to buy product, or to your Facebook page to become a fan
– Applies to Facebook, Google, and many other tools

17. Facebook Advertising Designing the Ad Choose External URL or a page
Title
Body
Picture

18. Facebook Advertising Target the Ad Location Demographics
Likes/Interests
Education
Workplace
Facebook Connections

19. Facebook Advertising
Set the Budget

20. Some Terms to Know
Total Impressions = How many times our ad is visible to users
Total Clicks = How many times users click on our ad to visit our page
Click Through Rate = Clicks/Impressions
Average CPM = Cost per 1000 impressions

21. Tracking Clicks and $ on Facebook

23. Designing the Ad
Choose type of ad
Text
Image
Display Ad
Mobile Ad

24. Text Ad

25. Display Ad

26. Ad Settings

27. Keywords
Make your own list
Use Keyword Tool to find other suggestions

28. Tracking Ad Performance

29. Comparing CPM to Evaluate Advertising Options
Print Advertising
$400
32,000 pieces
CPM = 400/32 = $12.50
TV Advertising
$1500
135,000 viewers
CPM = $11.11
Facebook Advertising
$2600
12 Million impressions
CPM = $0.22

30. Extra Credit: The Mobile Movement
Watch video
How do you use your phone?
Over a 3 day period, log your use.
Summarize in a chart how you use your phone
Messages (text or )
Information search
Purchases
Social Networking
Did use of your phone impact purchasing decisions? How?

31. Social Capital
Investment in social relations with the expectation of returns in the marketplace
Adds Value by providing:
Information
Influence
Social Credentials
Personal Reinforcement
Total Value of your Social Capital: # and strength of relationships and the resources controlled by those related

32. Over 100 million members
Professional network of contacts
Resume management/availability
Find and be introduced to potential business partners and experts
Interact in group settings
Recruiting

33. Step One – Get Established
Establish your Profile
Contact information
Experience
Education
Recommendations

34. Step Two – Get Connected
Add connections
Click on Contacts
Add connections from your:
addresses
Colleagues
Classmates
LinkedIn’s recommendations
See who others are connected with and send invitations
Rule of Thumb: Connect with whom you know

35. Step Three – Get Involved
Source:

36. Extra Credit Create a profile on LinkedIn
Connect with me and other professors
Join a JMU group
Post a discussion item on LinkedIn
Advice:
Review your Facebook and Twitter presence and be sure that if you connect them on LinkedIn that there is nothing embarassing or inappropriate for a professional
If you don’t connect accounts, make sure your security settings are appropriately set on Facebook

37. How Social Networks Add Value to Businesses
Number of relationships
Strength of relationships
Resources controlled by “friends”
Traditional vs. Social Networking with Technology – How is it different?

38. Business Applications for Facebook
Social
Useful
Expressive
Engaging
What apps on FB do you use?

39. Should We Have a Group or Page?
Use for group interaction and communications
Consider Facebook Groups
Can be secret, open, or closed
Use for promotion to current or prospective customers
Consider Facebook Pages
Post variety of information related to your business
Profiles – for individuals

40. (Extra content, not in your book)
Measuring Engagement
(Extra content, not in your book)

41. Engagement Ratio Engagement Ratio = # of Interactions Fans
Likes to your posts
Comments on your post
Wall posts by others
Shares

42. Comparing Engagement Ratios

43. Beauty of Comparing Ratios
Denominator is # Fans – puts you in comparable terms with those who are much larger or smaller
Allows you to see what’s working
Downside – It’s manual

44. Using Twitter

45. Twitter’s Uses Short updates (140 characters or less) Instantaneous
Relationship builder with those you may not know…yet
Research on variety of topics
Research of candidates

46. An Analogy – Twitter is like a Party
Can be as large as you want it to be
Invite (Follow) people who tweet about things that interest you
People you can learn from
People you can help
What do you say?
What you would say when networking at a party
Use manners, show kindness, have fun
Source:

47. Twitter Terms Following, Followers Tweet, Retweet, and DM
Hashtags to know
#anyterm – used to categorize tweets
#hburg
#jmu
#fail
#ff – Follow Friday – recommendations on who to follow

48. Business Application of Twitter
Dialogue with stakeholders
Public relations
Relationship sales
Market research

49. User Generated Content (UGC)
Ratings and Surveys
Opinions
Customer Stories
Discussions
Wikis
Blogs
Videos

50. Crowdsourcing Users provide services to or on behalf of the vendor
Combines social networking, viral marketing, and open source design
Example:

51. Empowering Customers
Enterprise 2.0 – application of Web 2.0, collaboration systems, social networking to facilitate the cooperative work of people in organizations
SLATES
Search
Link
Authoring
Tags
Extensions
Signals

52. SLATES

53. Risks of Social Networking
Junk and crackpots
Inappropriate content
Unfavorable reviews
Mutinous movements
Dependency on social network vendor
Example:

54. Responding to Problems
Leave it
Respond to it
Delete it

55. Fox Lake Story Continues
Scenario Video