Chapter 7/Social Computing
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This document provides an overview of social computing and how businesses can utilize various social media and networking tools. It discusses 6 types of social computing applications for businesses: marketing, shopping, customer relationship management, human resources, and freelancing. The document also outlines the fundamentals, benefits, and risks of social commerce and how companies can do social advertising, market research, and improve customer service through social networks.
Chapter 7/Social Computing
- 1. Lesson 07 Social Computing © Logorilla/iStockphoto
- 2. Chapter Outline 1. Web 2.0 2. Fundamentals of Social Computing in Business 3. Social Computing in Business: Shopping 4. Social Computing in Business: Marketing 5. Social Computing in Business: Customer Relationship Management 6. Social Computing in Business: Human Resource Management 7. Freelancing
- 3. Learning Objectives 1. Describe six Web 2.0 tools and the two major types of Web 2.0 sites. 2. Describe the benefits and risks of social commerce to companies. 3. Identify the methods used for shopping socially. 4. Discuss innovative ways to use social networking sites for advertising and market research. 5. Describe how social computing improves customer service. 6. Discuss different ways in which human resource managers make use of social computing. 7. Discuss the advantages and disadvantages of crowdsourcing to organizations.
- 4. Introduction • Opening Case: Tiger Tans and Gifts • Human behaviors and decisions are influenced by their social context. • Social computing combines social behavior and information systems to create value. • Users, rather than organizations, produce, control, use, and manage content via interactive communications and collaboration.
- 5. 1 Web 2.0 • Web 1.0: First generation of the Web • Focuses on creation and commercialization of the Web • Web 2.0 • A loose (wide) collection of information technologies, applications, and the Web sites that use them • A new digital ecosystem that promotes creativity, connectivity, collaboration, convergence, and community
- 6. Web 2.0 Applications • AJAX • A Web development technique that enables portions of Web pages to reload with fresh data instead of requiring the entire Web page to reload • Tagging • Using a tag (a keyword) to describes a piece of information in multiple, overlapping associations rather than in rigid categories • Geo-tagging: Tagging information on maps • Really Simple Syndication (RSS) • Subscribers receive customized information when they want it, without having to surf thousands of Web sites • Subscribers receive a notification of the changes and information about the new content
- 7. Web 2.0 Applications • Blogs (or weblogs) • Personal Web sites, open to the public • The site creator (blogger) expresses his/her feelings or opinions via a series of chronological entries • Blogosphere: Millions of blogs on the Web • Service providers: www.blogger.com, www.xanga.com • Microblogging • A form of blogging using short messages, image, or video • Example: www.twitter.com • Wiki • A Web site made up entirely of content posted by users • Promotes collaboration • Example: www.wikipedia.org © esolla/iStockphoto
- 8. Web 2.0 Applications • Social networking Web sites • A Web site that supports activities for maintaining social networks • Allow users to create a profile page, post blogs, and link and media share • Enterprise social networks • Business-oriented social network www.linkedin.com • Corporate social networks • Mashup • A Web site that takes different content from other Web sites and mixes them together to create a new kind of content • Example: www.housingmaps.com
- 9. 2 Fundamentals of Social Computing in Business • Social commerce • The delivery of electronic commerce activities and transactions through social computing • Supports social interactions and user contributions • See Table 8.2 for benefits of social commerce • What are the risks of social commerce?
- 10. Benefits of Social Commerce
- 11. 3 Social Computing in Business: Shopping • Social shopping • A type of e-commerce using social networking tools to enhance the shopping experience • Ratings, reviews, and recommendations • Guide consumers in purchase decisions • Examples: www.epinions.com, www.shopsocially.com • Group shopping • Major discounts offered for a short time • Examples: www.groupon.com, www.livingsocial.com
- 12. Social Shopping • Shopping communities and clubs • Offer discounts for members for limited time without diminishing a brand’s image • Examples: www.ruelala.com, www.kaboodle.com • Social marketplaces and direct sales • Social marketplaces: Online intermediaries using social networks for buying and selling products and services • Examples: www.craigslist.com, www.flipsy.com • Peer-to-peer shopping models • Support bazaar-style and bartering systems • Encourage collaborative consumption: Peer-to-peer sharing or renting www.relayrides.com
- 13. 4 Social Computing in Business: Marketing • Marketing • A process of building profitable customer relationships by creating value for customers and capturing value in return • Two main processes: 1.Advertising 2.Market research
- 14. Social Advertising • Social advertising • Leverages user dynamics to influence consumers • Peer pressure, friend recommendations, likes, etc. • Social apps • Branded online applications that support social interactions and user contributions • Nike+ app • Viral marketing (word of mouth)
- 15. Online Advertising • Advertising is an attempt to disseminate information in order to influence a buyer-seller transaction. • Advertising Methods: • Banners are simply electronic billboards. • Pop-up ad appears in front of the current browser window. • Pop-under ad appears underneath the active window. • Permission marketing asks consumers to give their permission to voluntarily accept online advertising and e- mail. • Viral marketing refers to online “word-of-mouth” marketing. The strategy is to have people forward
- 16. Eight Types of Web sites for Advertising Portals: most popular; best for reach but not targeting Search: second largest reach; high advertising value Commerce: high reach; not conducive to advertising
- 17. Eight types of sites (continued) Entertainment: large reach; strong targetability Community: emphasize being a part of something; good for specific advertising Communications: not good for branding; low targetability
- 18. Eight types of sites (continued) News/weather/sports: poor targetability Games: good for very specific types of advertising Source: Don Farrall/Photodisc/Getty Images, Inc.
- 19. Benefits of Advertising on Social Networks • Control is in your hands with self-service ads • Target your audience • Viral marketing • Set a budget that works for you • Lower cost
- 20. Market Research • Market research • The open nature of social networking allows merchants to understand, identify, and target potential customers at zero or low cost • Conversational marketing • Using blogs, wikis, online forums, and social networking sites to collect feedback from customers • Social intelligence • A process of monitoring, collecting, and analyzing socially generated data to support strategic decisions • How do companies use social media tools such as Facebook and Twitter for market research?
- 21. 5 Social Computing in Business: Customer Relationship Management • Social computing helps improves customer service • Companies are aware of the effects of negative comments posted by social network members • Opportunity to involve customers proactively () to reduce problems through improved customer service
- 22. 6 Social Computing in Business: Human Resource Management • Recruiting • Recruiters scan online social networks, blogs, etc. to find information about potential employees • Job seekers are more visible to recruiters if they are online and active • Training • Several companies use virtual worlds for training purposes • www.secondlife.com • Cisco uses its virtual campus in Second Life for product training and executive briefings • IBM runs management and customer interaction training sessions in Second Life
- 23. 7 Freelancing • Freelance: • Working for different companies at different times rather than being permanently employed by one company. • Freelancer: • A person who sells works or services to employers without a long-term commitment to any of them.
- 24. Top Five Freelancing Websites • odesk.com • freelancer.com • elance.com • guru.com • vworker.com
- 25. Available Project Types • IT & Programming • Design & Multimedia • Writing & Translation • Sales & Marketing • Finance & Management • Admin & Data Entry • Engineering & Manufacture • Legal
- 26. Available Projects at Freelancer.com
Editor's Notes
- #10: Risks of social commerce • Negative, unedited, and possibly invalid and unethical reviews • Potential bias content (20–80 rule of thumb: 20% of individuals contribute 80% of the content • Information security concerns • Invasion of privacy • Violation of intellectual property and copyright • Employees’ reluctance to participate • Data leakage of personal information or corporate strategic information • Poor or biased quality of users’ generated content • Cyberbullying/cyberstalking and employee harassment
- #17: Portals and Search have the greatest reach. Community and Games have the highest level of engagement. Search and News/Weather/Sports have the highest monetization.
- #18: Portals and Search have the greatest reach. Community and Games have the highest level of engagement. Search and News/Weather/Sports have the highest monetization.
- #19: Portals and Search have the greatest reach. Community and Games have the highest level of engagement. Search and News/Weather/Sports have the highest monetization.
- #21: Using Facebook for Market Research • Get feedback from Facebook fans and their friends on advertising campaigns, market research, etc. • Test market your messages. Provide two or three options and ask fans which one they prefer and why. • Use Facebook for survey invitations (i.e., to recruit participants). Using Twitter for Market Research • Follow tweets about the company • Monitor industry-specific keywords. www.twellow.com • Follow the most frequently used words www.tweetstats.com