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Chapter 8
Social Networks and Industry Disruptors
in the Web 2.0 Environment
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 1
Learning Objectives
1. Understand the Web 2.0 revolution, socialand business networks, and industry andmarket disruptors.
2. Understand the concept, structure, types,and issues of virtual communities.
3. Understand social networks and describeMySpace, Flickr, Facebook, Cyworld, andsimilar sites.
4. Understand person-to-person video sharingand describe YouTube and its competitors.
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Learning Objectives
6. Describe business networks.6. Describe how the entertainment industry
operates in the Web 2.0 environment.
7. Describe some of the enablers of the Web2.0 revolution.
8.
Understand the relationship between Web2.0 and e-commerce.
9. Describe Web 3.0.
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 3
The Web 2.0 Revolution, Social Networks,
Innovations, Media, and Industry Disruptors
THE WEB 2.0 REVOLUTIONWeb 2.0
The popular term for advanced Internet
technology and applications, including blogs,
wikis, RSS, and social bookmarking. One ofthe most significant differences between Web
2.0 and the traditional World Wide Web is
greater collaboration among users, content
providers, and enterprises.
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The Web 2.0 Revolution, Social Networks,Innovations, Media, and Industry Disruptors
FOUNDATION OF WEB 2.0REPRESENTATIVE
CHARACTERISTICS OF WEB 2.0
Web 2.0 CompaniesWeb 2.0 Going Global
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 5
The Web 2.0 Revolution, Social Networks,
Innovations, Media, and Industry Disruptors
social mediaOnline platforms and tools that people
use to share opinions and experiences,
including photos, videos, music, insights,
and perceptions.
disruptorsCompanies that introduce significant
changes in their industries.
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The Web 2.0 Revolution, Social Networks,Innovations, Media, and Industry Disruptors
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 7
The Web 2.0 Revolution, Social Networks,
Innovations, Media, and Industry Disruptors
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Chapter 8
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Virtual Communities
virtual (Internet) communityA group of people with similar interests
who interact with one another using the
Internet.
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 9
Virtual Communities
Types of Virtual CommunitiesTransaction and other businessPurpose or interestRelations or practicesFantasySocial networks
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Virtual Communities
COMMERCIAL ASPECTS OFCOMMUNITIES
social commerceA subset of e-commerce in which the users
and their personal relationships are at the
forefront. The main element is theinvolvement of the user in the marketing of
products being sold.
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 11
Virtual Communities
KEY STRATEGIES FOR SUCCESSFULONLINE COMMUNITIES1. Increase traffic and participation in the community2. Focus on the needs of the members3. Encourage free sharing of opinions and information4. Obtain financial sponsorship5. Consider the cultural environment6. Provide several tools and activities for member use7. Involve community members in activities and
recruiting
8. Guide discussions, provoke controversy, and raisesticky issues
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Virtual Communities
More success factors1. 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 satisfaction
6. Establish codes of behavior (netiquette orguidelines) to contain conflict potential
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 13
Online Social Networks
social networkA special structure composed of
individuals (or organizations) that is
based on how its members are
connected through various social
familiarities.
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Online Social Networks
social network analysis (SNA)The mapping and measuring of relationships andflows 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 amathematical analysis of relationships.
Social Networking Services
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 15
Online Social Networks
REPRESENTATIVE SOCIAL NETWORKS:FROM FACEBOOK TO CLASSMATES.COM
Representative Social Networking Web SitesFlickrFacebookClassmates OnlineFriendsterOrkutXangaDiggCyworld
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YouTube and CompanyA Whole New World
YOUTUBE: THE ESSENTIALSBRIEF HISTORY AND TECHNOLOGYTHE SOCIAL IMPACT OF YOUTUBETHE BUSINESS AND REVENUE
MODELS
Strategic Advantages of the BusinessModel
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 17
YouTube and Company
A Whole New World
IMPLEMENTATION DIFFICULTIES:THE COPYRIGHT PROBLEM
THE COMPETITION
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Business andEntrepreneurial Networks
business networkA 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 colleaguesand other colleagues.
Chapter 8
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Business and
Entrepreneurial Networks
Example: LinkedInEntrepreneurial Network
COOPERATE SOCIAL NETWORKSsocial marketplace
An online community that harnesses thepower of social networks for theintroduction, buying, and selling ofproducts, services, and resources,including peoples own creations.
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Entertainment Web 2.0 Style: FromCommunities to Entertainment Marketplaces
ENTERTAINMENT AND BUSINESSCOMMUNITIES
Last.FMMixi
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 21
Entertainment Web 2.0 Style: From
Communities to Entertainment Marketplaces
ADVERTISING MOVIES AND EVENTSIN COMMUNITIES
ONLINE MARKETPLACE FORMOVIES
THE HYPE MACHINEINTERNET SERIES
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Entertainment Web 2.0 Style: FromCommunities to Entertainment Marketplaces
MOBILE WEB 2.0 DEVICES FORENTERTAINMENT AND WORK
iPhone
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 23
Entertainment Web 2.0 Style: From
Communities to Entertainment Marketplaces
YAHOO! GONokias N800 Internet Tablet
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Chapter 8
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Technology Support: FromBlogger.com to Infrastructure Services
WEB 2.0 AND SOCIAL SOFTWARECommunication ToolsServicesEmerging TechnologiesTools for IndividualsWeb 2.0 Development Tools
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 25
Technology Support: From
Blogger.com to Infrastructure Services
TOOLS FOR BLOGGING AND WIKISTools for BloggingWiki ToolsTools for RSS and PodcastingWill Wikis, Blogs, and RSS Replace E-
Mail or Just Supplement It?
Enterprise Wiki and Blog ToolsBlogging for Business
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Technology Support: FromBlogger.com to Infrastructure Services
PERSONALIZATION TOOLS: FROM MYYAHOO! TO NETVIBES
DEVELOPMENT TOOLSsocial bookmarking
Web service for sharing Internet bookmarks. The
sites are a popular way to store, classify, share,
and search links through the practice of folksonomytechniques on the Internet and intranets.
Intels Web 2.0 Software Suite
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 27
Technology Support: From
Blogger.com to Infrastructure Services
TOOLS THAT SUPPORT APPLICATIONSFile-Sharing ToolsAlexa: Web Traffic Information ProviderMobile Phones and Social Networks
INFRASTRUCTURE SUPPORTThe Need for Very Rich MediaOther Tools
WHERE IS WEB 2.0 SOFTWARE GOING?
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Chapter 8
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Web 2.0, Social Networks,and E-Commerce
WHY IS THERE AN INTEREST?ADVERTISINGViral Marketingviral blogging
Viral marketing done by bloggers.
Classifieds and Job ListingMobile Advertising
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 29
Web 2.0, Social Networks,
and E-Commerce
SHOPPINGFEEDBACK FROM CUSTOMERSConversational Marketing
Risks
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Web 2.0, Social Networks,and E-Commerce
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 31
Web 2.0, Social Networks,
and E-Commerce
OTHER REVENUE-GENERATIONSTRATEGIES IN SOCIAL NETWORKS
Indirect StrategiesStrategic acquisitionMaintaining control of hard to re-create data sourcesBuilding attention trustTurning applications into platformsFully automated online customer self-service
WEB 2.0 COMMERCE ACTIVITIES INSIDETHE ENTERPRISE
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The Future: Web 3.0
WEB 3.0: WHATS NEXT?Web 3.0 StructureApplication Program Interface (API) ServicesAggregation ServicesApplication 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
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 33
The Future: Web 3.0
Web 3.0 and the Semantic WebSemantic WebAn evolving extension of the Web in which Web
content can be expressed not only in natural
language, but also in a form that can beunderstood, interpreted, and used by intelligent
computer software agents, permitting them to
find, share, and integrate information more
easily.
Mobile Social Networks
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The Future: Web 3.0
Future ThreatsSecurity concernsLack of Net neutralityCopyright complaintsChoppy connectivity
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 35
Managerial Issues
1. How will e-commerce impact the businessenvironment?
2. What are the impacts of the Web 2.0 boom?3. Should we explore Web 2.0 collaboration?4. How shall we start?5. Do we need a community?6. How should we deal with Web 2.0 risks?
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Chapter 8
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Summary
1. Web 2.0, social media, and disruptors.2. The structure and role of virtual
communities.
3. Online social networks.4. YouTube and others.5. Business networks.
Chapter 8
Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 37
Summary
6. Web 2.0 and entertainment.7. Web 2.0 enablers.8. Social networks and e-commerce.9. Web 3.0.
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Chapter 8
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All rights reserved. No part of this publication may be reproduced, stored in a
retrieval system, or transmitted, in any form or by any means, electronic,mechanical, photocopying, recording, or otherwise, without the prior written
permission of the publisher. Printed in the United States of America.