Chapter 18Social Networks and Industry Disruptors in the Web 2.0 Environment 2008 Pearson Prentice Hall, Electronic Commerce 2008, Efraim Turban, et al.Learning ObjectivesUnderstand the Web 2.0 revolution, social and business networks and industry and market disruptors.Describe Google and the search engine industry, the impact on advertisement, and the industry competition.Understand the concept, structure, types and issues of virtual communities.Understand the social and business networks and describe MySpace, Flicker, Facebook, CyWorld, and other amazing sites.2Learning ObjectivesUnderstand the person-to-person video sharing and describe YouTube and its competitors.Describe business networks.Describe why the travel and hospitality industry is moving so rapidly to Web 2.0. Describe the concept of P2P landing and the story of ZOPA, and Prosper.3Learning ObjectivesDescribe how the entertainment industry operated in the Web 2.0 environment.Describe some of the enablers of the Web 2.0 revolution: blogging, wikis, mushups, etc.Understand the financial viability that accompanies digital Web 2.0 implementation.Describe the anticipated future of EC and the Web 3.0 concept.4The Web 2.0 Revolution, Social Networks, Innovations, and Industry DisruptorslWeb 2.0 The popular term for advanced Internet technology and applications including blogs, wikis, RSS, and social bookmarking. Web 2.0 offers greater collaboration among Internet users and other users, content providers, and enterprises than Web 1.0lFoundation of Web 2.0lThe Web as a democratic, personal, and do-it- yourself medium of communications5The Web 2.0 Revolution, Social Networks, Innovations, and Industry DisruptorslRepresentative Characteristics of Web 2.0lThe ability to tap into the collective intelligence of userslMaking data available in new or never-intended wayslThe presence of lightweight programming techniques and tools that let nearly anyone act as a developerlThe virtual elimination of software-upgrade cycles by making everything a perpetual beta or work in progress, and by allowing rapid prototyping using the Web as a platform6The Web 2.0 Revolution, Social Networks, Innovations, and Industry DisruptorslUsers own the data on the site and exercise control over that datalAn architecture of participation and digital democracy that encourages users to add value to the application as they use itlThe creation of new business models lA rich interactive, user-friendly interface based on Ajax or similar frameworks7The Web 2.0 Revolution, Social Networks, Innovations, and Industry Disruptorslsocial media The online platforms and tools that people use to share opinions, experiences, including photos, videos, music, insights and perceptions with each other 8The Web 2.0 Revolution, Social Networks, Innovations, and Industry DisruptorslGround rules of social media:Communication in the form of conversation, not monologueParticipants in social media are people, not organizationsHonesty and transparency are core valuesIts all about pull, not pushDistribution instead of centralization9The Web 2.0 Revolution, Social Networks, Innovations, and Industry Disruptors10The Web 2.0 Revolution, Social Networks, Innovations, and Industry DisruptorslIndustry and Market Disruptors ldisruptors Companies that introduce a significant change in their industries thus cause disruption in the way business is done lChecklist of questions to help identify disruptors Is the service or product simpler, cheaper, or more accessible?Does the disruptor change the basis of competition with the current suppliers?Does the disruptor have a different business model?Does the product or service fit with what customers value and pay for? 11The Web 2.0 Revolution, Social Networks, Innovations, and Industry DisruptorslThe top four killers of would-be- disruptors:Is the disruptor trying to be beat the mainstream supplier at his own game?Is the disruptor choosing growth ahead of profits?Does the disruptor need to change consumer behavior or to educate the customer?Is the disruptor saddled with old business processes or an outdated business model?12The Web 2.0 Revolution, Social Networks, Innovations, and Industry DisruptorslThe potential for disruption and opportunity lThe best future companies are likely those that will create innovative new ways to facilitate collaboration by the hundreds of millions of us who can be reached and embraced by effective architectures of participationlThe big winners will enable us and encourage us to take control, contribute, shape, and direct the designs of the products and services that we in turn consume 13The Web 2.0 Revolution, Social Networks, Innovations, and Industry Disruptors14Google and Company: Advertisement and Search Engines lsearch engine A document retrieval system designed to help find information stored on a computer system, such as on the web, inside a