Post on 11-Apr-2017
transcript
LECTURE L19SOCIAL
Eric Schmidt Le Web Conference 2011
before social media?
READ ONLY CULTURE
PASSIVE CONSUMERS
STANDARDISED, INDUSTRIALISED
before broadcasting?
SINGING THE SONGS OF THE DAY
CONVERSATION
RadioCommercial
Radio TV
Magazines
BROADCASTING
1900 20001950
VideotapesCommercial
TV
Newspapers
Films
LPCD DVD
First email sent1971
First online bulletin board
1979
World WideWeb1991
GeoCities1994
Instant Messages IM1996
BROADCASTING
1970 20101980 1990 2000 2010
TheGlobe.com1995
LiveJournalP2P, Napster
1999
Friendster2002
MySpaceLinkedin
PhotobucketDelicious
2003
Facebook2004
Youtube2005
Twitter2006
END OF BROADCASTING
END OF BROADCASTING
Clay Shirky How social media can make history
“We’re all in this together”
And then we got LOL cats…
Network Effect
Occurs when a product or service becomes more valuable to its users as more people use it
Understanding this helps build better products and businesses
Source: Benedict Evans slide deck
Network properties: 1. Whether the nodes are homogeneous or heterogeneous 2. Their type of clustering and degree of connections3. Directionality of those connections 4. Whether they have (or are) complements Putting the ‘network’
in network effects
Network PropertiesNetworks are basically just a set of nodes connected by links
Source: Benedict Evans slide deck
Network Properties1. Homogeneous or heterogeneous?
Homogeneous: Composed of similar types of nodesSkype is an example of a homogeneous network where most of the value is derived from a single class of users, all interested in placing a phone call
Heterogeneous: Composed of different types of nodes OpenTable is an example of a heterogeneous network with two distinct categories of participants: one side is restaurants, the other side is diners
Source: Benedict Evans slide deck
Network Properties2. Degree of connections and type of clustering Source
Degree: Measures number of connections to a single node
Clustering coefficient: Measures degree to which nodes in a graph (e.g., social graph, interest graph, intent graph, etc.) cluster together
Type of cluster: Can range from hub-and-spoke (star) to connected (clique). Example of Facebook friends connections clustering (high school, college, significant other’s, etc. clusters)
Source: Benedict Evans slide deck
Network Properties3. Connections: Unidirectional or Bidirectional?
Friends
Facebook, for example, is one place where connections tend to be bidirectional
Follower
Twitter, for example, is one place where connections can more easily be unidirectional or one-way following, leads to asymmetrical connections
Source: Benedict Evans slide deck
Network Properties4. Complementary Networks
Increase in usage of one product by a set of users reinforces and increases the value of a complementary (but separate!) product, which in turn, increases the value of the original
More usage of the MS Windows operating system, results in more usage of the MS Office suite of applications
Source: Benedict Evans slide deck
Network PropertiesCommon law for assessing the value of communication networks
Source: Benedict Evans slide deck
The Brat Pack Returns
Breakfast Club 1985
BRAT PACKMASHUPS
YouTube's Origins as a Dating Site
The YouTube EffectYouTube is changing the way we Innovate
The Liquid Network
Chris Anderson How web video powers global innovation
TED 2010
CROWD ACCELERATEDINNOVATION
Crowd Accelerated InnovationCrowd - Group of people that share a common interest. The bigger the crowd, more innovation
Light - Clear visibility of the capabilities of the best people
Desire - Innovation is hard, need practice
THE TOOLS OF PRODUCTION IN THE HANDS OF PEOPLE
WHAT HAPPENS WHEN YOU CONNECT PEOPLE?
Clay Shirky How cognitive surplus will change the world
WHY DOPEOPLESHARE?
WHY DOPEOPLECONTRIBUTE?
WHY DOESOPEN SOURCEWORK?
WHY DOES THESE WORK?WE DON’T KNOW THESE PEOPLE AND WE DON’T TRUST THEM
Rachel Botsman We've stopped trusting institutions and started trusting strangers
WHY DOPEOPLECONTRIBUTE?
Sharing is in our self interests
We do it for ourselves
It is in companies best interest
WHY DOESOPEN SOURCEWORK?
THE NEW SHARINGECONOMY
HIERARCHAL NETWORK
20th Century 21st Century
http://www.flickr.com/photos/piet_musterd/
Crowdsourcing
Source:PicutrefromIMDb,FilmJuno
Source:PicturefromAmazon.
Those who control the media control the culture
SOCIAL MEDIA
Social media is the first media network created by consumers
New universe of platforms, how we do business
PLATFORMS
Software SellerBuyer
Software brings the coordination cost to zero
Think Uber, Airbnb etc
PLATFORMS
Software Consumer Producer
Consumer Producer
Software brings the coordination cost to zero
THE NEW MARKETPeople reject consumerism
Consumer-capitalism ate everything, and people are becoming apathetic towards consumer mass-marketing and production
People do not care for being targeted anymore and have even stopped voting as a result of being targeted by politics
Access trumps ownership
Jerry Michalski - Jumping Platforms
Source:http://www.flickr.com/photos/webrevenu/
Source:Facebook
Network effect
1.71 billion people
January 15, 2009, US Airways Flight 1549
Tahrir Square, 2010
Tehran uprising, 2009
JuliaKlöckner,ofchancellorAngelaMerkel’sCDU,toldherTwitter“followers”onthatafternoon:“People,youcanwatchthefootballinpeace.Thevotewasasuccess.”
“four more years”
Inthreehours,themessagehadbeenre-tweetedabout455,000times
770.000 retweets
3 million retweets
Launched October 2010
600 million active users
In 2012, Facebook bought Instagram for $1 billion
Launched March 2010
Pintrest
Users: 176 million, active 150 million
84% are women
75% of usage is mobile, 93% of users shopped online
Launched September 2011
Snapchat
Users: 200+ million
First popular with users age 13-23
7 billion videos per day
Launched September 2010
Users: 1 billion
700 million photos and 100 million videos every single day
55 employees - bought by Facebook for $19 billion
There is actually value in not belonging to a group
Facebook killers?
NEXT