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Chapter 8
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.
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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 Web 2.0 revolution. 8. Understand the relationship between Web 2.0 and e-commerce. 9. Describe Web 3.0.

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The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors
THE WEB 2.0 REVOLUTION Web 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.
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The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors
FOUNDATION OF WEB 2.0 REPRESENTATIVE CHARACTERISTICS OF WEB 2.0
Web 2.0 Companies Web 2.0 Going Global

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The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors
social media Online platforms and tools that people use to share opinions and experiences, including photos, videos, music, insights, and perceptions. disruptors Companies 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

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The Web 2.0 Revolution, Social Networks, Innovations, Media, and Industry Disruptors

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Virtual Communities
virtual (Internet) community A group of people with similar interests who interact with one another using the Internet.

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Virtual Communities
Types of Virtual Communities
Transaction and other business Purpose or interest Relations or practices Fantasy Social networks

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Virtual Communities
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.

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Virtual Communities
KEY STRATEGIES FOR SUCCESSFUL ONLINE COMMUNITIES
1. 2. 3. 4. 5. 6. 7. Increase traffic and participation in the community Focus on the needs of the members Encourage free sharing of opinions and information Obtain financial sponsorship Consider the cultural environment Provide several tools and activities for member use Involve community members in activities and recruiting 8. Guide discussions, provoke controversy, and raise sticky issues
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Virtual Communities
More success factors
1. Handle member data sensitively 2. 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 site 4. Offer up-to-date content 5. Offer continuous community control with regard to member satisfaction 6. Establish codes of behavior (netiquette or guidelines) to contain conflict potential
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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.

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Online Social Networks

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. Social Networking Services

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Online Social Networks

REPRESENTATIVE SOCIAL NETWORKS: FROM FACEBOOK TO CLASSMATES.COM
Representative Social Networking Web Sites
Flickr Facebook Classmates Online Friendster Orkut Xanga Digg Cyworld
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YouTube and Company A Whole New World

YOUTUBE: THE ESSENTIALS BRIEF HISTORY AND TECHNOLOGY THE SOCIAL IMPACT OF YOUTUBE THE BUSINESS AND REVENUE MODELS
Strategic Advantages of the Business Model

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YouTube and Company A Whole New World

IMPLEMENTATION DIFFICULTIES: THE COPYRIGHT PROBLEM THE COMPETITION

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Business and Entrepreneurial 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.

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Business and Entrepreneurial Networks

Example: LinkedIn Entrepreneurial Network

COOPERATE SOCIAL NETWORKS social marketplace An online community that harnesses the power of social networks for the introduction, buying, and selling of products, services, and resources, including peoples own creations.
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Entertainment Web 2.0 Style: From Communities to Entertainment Marketplaces ENTERTAINMENT AND BUSINESS COMMUNITIES
Last.FM Mixi

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Entertainment Web 2.0 Style: From Communities to Entertainment Marketplaces ADVERTISING MOVIES AND EVENTS IN COMMUNITIES ONLINE MARKETPLACE FOR MOVIES THE HYPE MACHINE INTERNET SERIES

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Entertainment Web 2.0 Style: From Communities to Entertainment Marketplaces MOBILE WEB 2.0 DEVICES FOR ENTERTAINMENT AND WORK
iPhone

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Entertainment Web 2.0 Style: From Communities to Entertainment Marketplaces YAHOO! GO

Nokias N800 Internet Tablet

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Technology Support: From Blogger.com to Infrastructure Services

WEB 2.0 AND SOCIAL SOFTWARE
Communication Tools Services Emerging Technologies Tools for Individuals Web 2.0 Development Tools

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Technology Support: From Blogger.com to Infrastructure Services

TOOLS FOR BLOGGING AND WIKIS
Tools for Blogging Wiki Tools Tools for RSS and Podcasting Will Wikis, Blogs, and RSS Replace EMail or Just Supplement It? Enterprise Wiki and Blog Tools Blogging for Business
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Technology Support: From Blogger.com to Infrastructure Services

PERSONALIZATION TOOLS: FROM MY YAHOO! TO NETVIBES 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. Intels Web 2.0 Software Suite

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Technology Support: From Blogger.com to Infrastructure Services

TOOLS THAT SUPPORT APPLICATIONS
File-Sharing Tools Alexa: Web Traffic Information Provider Mobile Phones and Social Networks

INFRASTRUCTURE SUPPORT
The Need for Very Rich Media Other Tools

WHERE IS WEB 2.0 SOFTWARE GOING?

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Web 2.0, Social Networks, and E-Commerce

WHY IS THERE AN INTEREST? ADVERTISING
Viral Marketing viral blogging Viral marketing done by bloggers. Classifieds and Job Listing Mobile Advertising

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Web 2.0, Social Networks, and E-Commerce

SHOPPING FEEDBACK FROM CUSTOMERS
Conversational Marketing Risks

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Web 2.0, Social Networks, and E-Commerce

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Web 2.0, Social Networks, and E-Commerce

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

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The Future: Web 3.0

WEB 3.0: WHATS 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
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The Future: Web 3.0

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

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The Future: Web 3.0

Future Threats
Security concerns Lack of Net neutrality Copyright complaints Choppy connectivity

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Managerial Issues
1. How will e-commerce impact the business environment? 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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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.

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Summary
6. 7. 8. 9. Web 2.0 and entertainment. Web 2.0 enablers. Social networks and e-commerce. Web 3.0.

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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.

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