social networks and industry disruptors in the web 2.0 environment

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

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


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


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


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


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

social networks and industry disruptors in the web 2.0 environment

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