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Social Networks and Industry Disruptors in the
Web 2.0 Environment
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 networks7. Describe how the entertainment industry operates in the
Web 2.0 environment8. Describe some of the enablers of the Web 2.0 revolution9. Understand the relationship between Web 2.0 and e-
commerce10. Describe Web 3.0
The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors
Web 1.0 Organized around pages, software,
technology and corporationsWeb 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
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
Web 2.0 ToolsO’Reilly (2005) cited the following as
being important Web 2.0 tools: Google AdSense Flickr Blogs Web services RSS and podcasting Search engines Napster
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
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
The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors [3]
The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors [4]
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
Virtual Communities [2]
Elements of interaction in a virtual community
Category ElementCommunication Bulletion boards, chat rooms, email,
newsletters, blogging, wikis, mashups, web postings, voting
Information Directories and yellow pages, search engine, member-generated content, links to information sources, expert advice
EC element E-catalogs, shopping carts, advertisements, auction of all types, classified ads, bartering online
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
Virtual Communities [4]
Key Strategies for successful online communities (Accenture)1. Increase traffic and participation in the community2. Focus on the needs of the members 3. Encourage free sharing of opinions and information 4. Obtain financial sponsorship5. Consider the cultural environment6. Provide several tools and activities for member use7. Involve community members in activities and
recruiting8. Guide discussions, provoke controversy, and raise
sticky issues
Virtual Communities [5]
More success factors (Leimeister and Krcmar, 2004)1. Handle member data sensitively2. 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 site4. Offer up-to-date content5. Offer continuous community control with regard to
member satisfaction6. Establish codes of behavior (netiquette or guidelines) to
contain conflict potential
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
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
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)
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
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
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
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
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
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
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
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.
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
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
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
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
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
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
Web 2.0, Social Networks, and E-Commerce [2]
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
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
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
The Future: Web 3.0 [3]
Future Threats• Security concerns• Lack of Net neutrality• Copyright complaints• Choppy connectivity
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