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

2. 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 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

3. 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

4. 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

5. 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

6. 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

7. 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

8. The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors [3]

9. The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors [4]

10. 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

11. Virtual Communities [2]  Elements of interaction in a virtual community CategoryElement CommunicationBulletion boards, chat rooms, email, newsletters, blogging, wikis, mashups, web postings, voting InformationDirectories and yellow pages, search engine, member-generated content, links to information sources, expert advice EC elementE-catalogs, shopping carts, advertisements, auction of all types, classified ads, bartering online

12. 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

13. Virtual Communities [4]  Key Strategies for successful online communities (Accenture) 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

14. 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

15. 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

16. Online Social Networks [2]  Representative social networks: from Facebook to Classmates.com  Representative Social Networking Web Sites Flickr Facebook Classmates Online Friendster Orkut Xanga Digg Cyworld

17. 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)

18. 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

19. 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

20. 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

21. 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

22. 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

23. 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

24. 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

25. 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.

26. 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

27. 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

28. 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

29. 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

30. Web 2.0, Social Networks, and E-Commerce  Why is there an interest?  Retailers’ benefit from online communities 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

31. Web 2.0, Social Networks, and E-Commerce  Shopping  MySpace are trying to capitalize on e- commerce, 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

32. Web 2.0, Social Networks, and E-Commerce [2]

33. 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 employee- driven 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

34. 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

35. 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

36. The Future: Web 3.0 [3]  Future Threats Security concerns Lack of Net neutrality Copyright complaints Choppy connectivity

37. Summary 1.Web 2.0 has brought together the contributions of millions of people and made their work, opinions and identity matter 2.User-created content is a major characteristic of web 2.0 as is the emergence of social networking 3.One impact of web 2.0 has been the creation of industry disruptors 4.Virtual communities create new types of business opportunities 5.Web 3.0 is the next generation of the web which will combine social and business computing