Chapter 8 Social Networks in the Web 2.0 Environment Information Technology for Management Improving Performance in the Digital Economy 7 th edition John Wiley & Sons, Inc. Slides contributed by Dr. Sandra Reid Chair, Graduate School of Business & Professor, Technology Dallas Baptist University Turban and Volonino 8-1Copyright 2010 John Wiley & Sons, Inc.

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 8-2Copyright 2010 John Wiley & Sons, Inc.

Chapter Outline (cont’d) 8.6 Commercial Aspects of Web 2.0, Social Networks 8.7 The Future: Web Managerial Issues Copyright 2010 John Wiley & Sons, Inc.8-3

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 e- commerce relationship. 6.Describe the Web 3.0 concept. 8-4Copyright 2010 John Wiley & Sons, Inc.

8-5 Figure IT7eU

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. Copyright 2010 John Wiley & Sons, Inc.8-6

Copyright 2010 John Wiley & Sons, Inc The Web 2.0 Revolution, Social Media, and Industry Disruptors

Revolution Copyright 2010 John Wiley & Sons, Inc.8-8

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. Copyright 2010 John Wiley & Sons, Inc.8-9

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%. Copyright 2010 John Wiley & Sons, Inc.8-10

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. Copyright 2010 John Wiley & Sons, Inc.8-11 For more, read this article: Web 2.0 Technologies for CIOsWeb 2.0 Technologies for CIOs

Web 2.0 Companies – The Next Net 25The Next Net 25 Copyright 2010 John Wiley & Sons, Inc.8-12 Social Media: Mashups & Filters: Enterprise:

Figure 8.1 Copyright 2010 John Wiley & Sons, Inc.8-13 The emergence and rise of mass social media. (Source: Hinchcliffe, D., Web 2.0 Blog, web2.wsj2.com)

Industry & Market Disruptors Copyright 2010 John Wiley & Sons, Inc.8-14 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?

Figure 8.2 Copyright 2010 John Wiley & Sons, Inc.8-15 The You era: Consumer-generated content swamping, disrupting traditional media. (Source: Hinchcliffe, D., Web 2.0 Blog, web2.wsj2.com)

Copyright 2010 John Wiley & Sons, Inc Virtual Communities and Virtual Worlds

Table 8.1 Copyright 2010 John Wiley & Sons, Inc.8-17

Online Communities Copyright 2010 John Wiley & Sons, Inc.8-18 Associations Ethnic Gender Affinity

Social Networks Sites Copyright 2010 John Wiley & Sons, Inc. 8-19

Table 8.2 Copyright 2010 John Wiley & Sons, Inc.8-20

Virtual Worlds Copyright 2010 John Wiley & Sons, Inc.8-21 Top 10 Trends for Online Communities Second Life

Copyright 2010 John Wiley & Sons, Inc Online Social Networking: Basics and Examples

Social Networking Web Sites - Examples Copyright 2010 John Wiley & Sons, Inc.8-23

Copyright 2010 John Wiley & Sons, Inc Major Social Network Services: From Facebook to Flickr

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 Copyright 2010 John Wiley & Sons, Inc.8-25 Let's Learn From Facebook's Terms-of- Service Flap

Copyright 2010 John Wiley & Sons, Inc Business (Enterprise) Social Networks

Enterprise Social Networks Characteristics Gated-access approach is common Common interests Source of information & assistance for business purposes Copyright 2010 John Wiley & Sons, Inc.8-27

Figure 8.3 Copyright 2010 John Wiley & Sons, Inc.8-28 Typical modes of interaction with social networks.

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 Copyright 2010 John Wiley & Sons, Inc.8-29

Copyright 2010 John Wiley & Sons, Inc Commercial Aspects of Web 2.0, Social Networks

Retailers Benefit from Online Communities Source of feedback similar to focus group Viral marketing Increased web sit traffic Increased sales resulting in profit Copyright 2010 John Wiley & Sons, Inc.8-31

YouTube is a Steal! Tremendous ad-revenue potential Brand-created entertainment content Ronaldinho: Touch of Gold Ronaldinho: Touch of Gold User-driven product advertising Nokia N90 Nokia N90 Multichannel word-of-mouth campaign Customer product reviews Copyright 2010 John Wiley & Sons, Inc.8-32

Figure 8.4 Copyright 2010 John Wiley & Sons, Inc.8-33 Generating revenue from Web 2.0 applications. (Source: Hinchcliffe, D., Web 2.0 Blog, web2.wsj2.com.)

Copyright 2010 John Wiley & Sons, Inc The Future: Web 3.0

Web 3.0 Structure Copyright 2010 John Wiley & Sons, Inc.8-35 How Web 3.0 Will Work 1. Application Program Interface Services 2. Aggregation Services 3. Application Services 4. Serviced Clients

Copyright 2010 John Wiley & Sons, Inc Managerial Issues

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. Copyright 2010 John Wiley & Sons, Inc.8-37

Copyright 2010 John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permission Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages caused by the use of these programs or from the use of the Information herein. Copyright 2010 John Wiley & Sons, Inc.8-38