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Chapter 8
Social Networks in the Web 2.0 Environment
Information Technology for ManagementImproving Performance in the Digital Economy
7th editionJohn Wiley & Sons, Inc.
Slides contributed by Dr. Sandra ReidChair, Graduate School of Business & Professor, Technology
Dallas Baptist University
8-1Copyright 2010 John Wiley & Sons, Inc.
Chapter Outline
8.1 The Web 2.0 Revolution, Social Media, and Industry Disruptors
8.2 Virtual Communities and Virtual Worlds8.3 Online Social Networking: Basics and
Examples8.4 Major Social Network Services: From
Facebook to Flickr8.5 Business (Enterprise) Social Networks
8-2Copyright 2010 John Wiley & Sons, Inc.
Chapter Outline (cont’d)
8.6 Commercial Aspects of Web 2.0, Social Networks
8.7 The Future: Web 3.08.8 Managerial Issues
Copyright 2010 John Wiley & Sons, Inc. 8-3
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.
8-4Copyright 2010 John Wiley & Sons, Inc.
• Problem – Competition is usercreated; often poor & lackingaccuracy. 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.
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Copyright 2010 John Wiley & Sons, Inc. 8-6
8.1 The Web 2.0 Revolution, Social Media, and Industry Disruptors
Revolution
Copyright 2010 John Wiley & Sons, Inc. 8-7
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.
Copyright 2010 John Wiley & Sons, Inc. 8-8
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%.
Copyright 2010 John Wiley & Sons, Inc. 8-9
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.
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For more, read this article: Web 2.0 Technologies for CIOs
Web 2.0 Companies – The Next Net 25
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Social Media:Mashups & Filters:
Enterprise:
The emergence and rise of mass social media
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(Source: Hinchcliffe, D., Web 2.0 Blog, web2.wsj2.com)
Industry & Market Disruptors
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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?
The You era: Consumer-generated content swamping, disrupting traditional media
Copyright 2010 John Wiley & Sons, Inc. 8-14
(Source: Hinchcliffe, D., Web 2.0 Blog, web2.wsj2.com)
Copyright 2010 John Wiley & Sons, Inc. 8-15
8.2 Virtual Communities and Virtual Worlds
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Online Communities
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Associations
Ethnic
Gender
Affinity
Social Networks Sites
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Virtual Worlds
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Top 10 Trends for Online Communities
Second Life
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8.3 Online Social Networking: Basics and Examples
Social Networking Web Sites - Examples
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SNA Analysis
• Social network analysis (SNA) is the study of social networks to understand their structure and behavior
• Small world phenomenon (6 degrees)• Characteristics (size, heterogeneity, centrality, multiplexity,
clustering, roles, groups. …)• Approximating large SNs • Visualization• Types of relationships (strong and weak ties)
Data Mining for SNA• Community Extraction• Link Prediction• Cascading Behavior• Identifying Prominent Actors
(hubs & authorities)• Information search and Expert
Identification• Trust propagation (building a web
of trust)• Characterization of Social
Networks• Anonymity• Identity Resolution (or alias
detection)
Applications of Data Mining in SNs
• Organization Theory• Semantic Web• Viral Marketing• Social Influence and E-Commerce• Social Computing• Criminal Network Analysis• Newsgroup Message Classification• Social Recommendation Systems
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8.4 Major Social Network Services: From Facebook to Flickr
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
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Let's Learn From Facebook's Terms-of-Service Flap
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8.5 Business (Enterprise) Social Networks
Enterprise Social Networks Characteristics
• Gated-access approach is common• Common interests• Source of information & assistance for
business purposes
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Typical modes of interaction with social networks
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.
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
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8.6 Commercial Aspects of Web 2.0, Social Networks
Retailers Benefit from Online Communities
• Source of feedback similar to focus group• Viral marketing• Increased web sit traffic• Increased sales resulting in profit
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YouTube is a Steal!
• Tremendous ad-revenue potential• Brand-created entertainment content
Ronaldinho: Touch of Gold• User-driven product advertising
Nokia N90• Multichannel word-of-mouth campaign• Customer product reviews
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Generating revenue from Web 2.0 applications
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.(Source: Hinchcliffe, D., Web 2.0 Blog, web2.wsj2.com.)
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8.7 The Future: Web 3.0
Web 3.0 Structure
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How Web 3.0 Will Work
1. Application Program Interface Services
2. Aggregation Services
3. Application Services
4. Serviced Clients
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8.8 Managerial Issues
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.
Copyright 2010 John Wiley & Sons, Inc. 8-39
Copyright 2010 John Wiley & Sons, Inc.
All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the Information herein.
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