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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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 2

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 4

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 6

    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

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 8

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 10

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 12

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 14

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 16

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 18

    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

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 19

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 20

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 22

    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

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 24

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 26

    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

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 28

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 30

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 32

    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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    Chapter 8

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 34

    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

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 36

    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

    Copyright 2009 Pearson Education,Inc. Publishing as Prentice Hall 38

    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.