Turban and Volonino
Chapter 8
Social Networks in the Web 2.0 Environment
Information Technology for Management
Improving Performance in the Digital Economy
7th edition
John Wiley & Sons, Inc.
Slides contributed by Dr. Sandra Reid
Chair, Graduate School of Business & Professor, Technology
Dallas Baptist University
Copyright 2010 John Wiley & Sons, Inc.
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Chapter Outline
• 8.1 The Web 2.0 Revolution, Social Media, and
Industry Disruptors
• 8.2 Virtual Communities and Virtual Worlds
• 8.3 Online Social Networking: Basics and
Examples
• 8.4 Major Social Network Services: From
Facebook to Flickr
• 8.5 Business (Enterprise) Social Networks
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Chapter Outline (cont’d)
• 8.6 Commercial Aspects of Web 2.0, Social
Networks
• 8.7 The Future: Web 3.0
• 8.8 Managerial Issues
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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 ecommerce relationship.
6. Describe the Web 3.0 concept.
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Figure IT7eU
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• Problem – Competition is user
created; often poor & lacking
accuracy. 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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8.1 The Web 2.0 Revolution, Social Media,
and Industry Disruptors
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Revolution
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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.
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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%.
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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.
For more, read this article: Web 2.0 Technologies for CIOs
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Web 2.0 Companies – The Next Net 25
Social Media:
Mashups & Filters:
Enterprise:
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Figure 8.1
The emergence and rise of mass social media.
(Source: Hinchcliffe, D., Web 2.0 Blog, web2.wsj2.com)
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Industry & Market Disruptors
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?
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Figure 8.2
The You era: Consumer-generated content swamping, disrupting traditional
media. (Source: Hinchcliffe, D., Web 2.0 Blog, web2.wsj2.com)
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8.2 Virtual Communities and Virtual Worlds
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Table 8.1
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Online Communities
Associations
Ethnic
Gender
Affinity
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Social Networks Sites
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Table 8.2
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Virtual Worlds
Top 10 Trends for Online Communities
Second Life
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8.3 Online Social Networking:
Basics and Examples
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Social Networking Web Sites - Examples
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8.4 Major Social Network Services: From
Facebook to Flickr
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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
Let's Learn From Facebook's Terms-ofService Flap
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8.5 Business (Enterprise) Social
Networks
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Enterprise Social Networks Characteristics
• Gated-access approach is common
• Common interests
• Source of information & assistance for
business purposes
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Figure 8.3
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
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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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Figure 8.4
Generating revenue from Web 2.0 applications.
(Source: Hinchcliffe, D., Web 2.0 Blog, web2.wsj2.com.)
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8.7 The Future: Web 3.0
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Web 3.0 Structure
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
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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.
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