E-Commerce 2.

0 :Second Generation
IS 406 E- Business
 Contents
Introduction
Social Computing
Web 2.0
Social media
Social network
Social networking services:
Examples
Services
Enterprise social network
Social commerce
The digital world : economy , enterprise , Society and the social customer
Virtual Communities: types and classification
Recent Innovative Tools and Platforms for Social Networking
 The Future: Web 3.0
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Introduction
We are moving into the second generation of EC, which
we call E-Commerce 2.0. It is based on Web 2.0 tools,
social media, social networks, and virtual worlds.

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Social Computing
• Social computing refers to a computing system that involves
social interactions and behaviors. It is performed with a set of
tools that includes blogs, wikis, social network services, and
other social software tools, and social marketplaces.
• In social computing and commerce, people work together over
the Internet, consult with specialists, and locate goods and
services recommended by their friends.

**What is the difference between social computing and traditional computing system?

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Web 2.0
• Web 2.0 is the second generation of Internet-based tools and services that
enables users to easily generate content, share media, and communicate and
collaborate, in innovative ways.
• Web 2.0 is viewed as a new digital ecosystem, which can be described through
five C’s: creativity, connectivity, collaboration, convergence, and community.
• Web 2.0 uses dozens of tools such as wikis, RSS feeds, blogs, and microblogs (e.g.,
Twitter). With microblogging you can transmit short messages (up to 140
characters) to a list of recipients via the Internet and wireless or wireline devices.

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Social Media
• Social media involves user generated online text, image, audio, and
video content that are delivered via Web 2.0 platforms and tools.
• The media is used primarily for social interactions and conversations
such as sharing opinions, experiences, and insights.
• A key element is that users produce, control, and manage content.

**How Oprah Is Using Social Media to Build Her Business?

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Social Network
• A social network is a social entity composed of nodes (which are generally
individuals, groups, or organizations) that are connected by links such as hobbies,
friendship or profession.
• In its simplest form, a social network can be described by an image of the nodes
and links.

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Social networking services
• Social networking services (SNSs) , such as LinkedIn and Facebook, provide and
host a Web space for people to build their homepages for free.
• SNSs also provide basic support tools for conducting different activities and allow
many vendors to provide apps.
• Initially, social networks were used solely for social activities. Today, corporations
have a great interest in the business aspects of social networks (e.g., see
linkedin.com , a network that categorizes businesses by geography, functions,
industry, and areas of interest).

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CONT.
The following are examples of representative social network services:
• Facebook.com : The most visited social network website.
• YouTube.com : Users can upload and view video clips.
• Flickr.com : Users share and comment on photos.
• LinkedIn.com : The major enterprise-oriented social network.
• Pinterest.com : Provides a platform for organizing and sharing images
• Google+ : A business-oriented social network.

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CONT.
Social network sites provide many capabilities and services such as:
1. Users can construct a Web page where they present their profile to the public.
2. Users can create a circle of friends who are linked together.
3. Photo, video, and document viewing and sharing.
4. Experts can be made available to answer member queries.
5. Online voting may be available to poll member opinions.
6. The site may provide an e-newsletter.
7. The site supports conference (group) chatting, combined with document and image sharing.
8. Users can bookmark self-created content.

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Enterprise Social Networks
• Business-oriented social networks also known as professional social
networks , are social networks whose primary objective is to facilitate
business.
can be:
• public, such as LinkedIn.com. As such, they are owned and managed
by an independent company.
• Private, owned by corporations and operated inside them.
• These networks can be directed toward customers or company
employees.

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Social Commerce
• E-commerce activities that are conducted in social networks by using social
software (i.e., Web 2.0 tools)
Some examples of social commerce:
1. Disney allows people to book certain tickets on Facebook without leaving the
social network.
2. Dell Computer claims to have made $6.5 million by selling computers on Twitter
in 2 years.
3. Starbucks is using extensive promotions on Facebook including generating ideas
from the members via its My Starbucks Idea website

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The digital world
The three elements of the digital world:
• Economy
• Enterprises
• Society.

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The Digital Economy
• The digital economy , also known as the Internet economy , is an
economy based on online transactions, mostly e-commerce.
• It includes digital wireline or wireless communication networks (e.g.,
the Internet, intranets, extranets, and VANs), computers, software,
and other related information technologies.

The following table summarizes the major characteristics of the digital economy.

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The Digital Enterprise
• It refers to an enterprise, such as Amazon.com, Google, Facebook, which uses computers and
information systems to automate most of its business processes.
• T he digital enterprise is a new business model that uses IT to gain competitive advantage by
increasing employee productivity, improving efficiency and effectiveness of business processes,
and better interactivity between vendors and customers.
• Note that the term enterprise refers to any kind of organization, public or private, small or large.
An enterprise can be a manufacturing plant, a hospital, a university, a TV network, or even an
entire city.
• Many companies employ a corporate portal , which is a gateway for customers, employees, and
partners to reach corporate information and to communicate with the company.

**Give an example of corporate portal .

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The Social Business (Enterprise)
• The Social Business Forum defines social business as “an organization
that has put in place the strategies, technologies and processes to
systematically engage all the individuals of its ecosystem (employees,
customers, partners, suppliers) to maximize the co-created value.”

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The Digital Revolution and Society

• The most important, element of the digital world is people and the way they work and live.
• The digital revolution has changed almost any activity one can think of – work, play, shopping,
entertainment, travel, medical care, education, and much more.
Example :
Google has developed cars that drive themselves automatically in traffic (autonomous vehicles).
Ford Company is using ‘My Ford Touch’ system to calculate the fastest, shortest, and most fuel-
efficient way to get to a destination.
An international research project is developing a computerized system that enables monitoring
patients at home in real time, conducting a diagnosis, and providing medical advice.

**So , what is digital society ?

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The Social Customer
• An important component in the digital society is the social customer.
• Social customers (sometimes called digital customers ) are usually
members of social networks who share opinions about products,
services, and vendors, do online social shopping, and understand
their rights and how to use the wisdom and power of social
communities to their benefit.

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Virtual Communities
• A community is a group of people with common interests who interact with one another.
• A virtual community is one where the interaction takes place over a computer network, mainly
the Internet.
• Virtual communities parallel typical physical communities, such as neighborhoods, but people do
not meet face-to-face. Instead, they meet online.
• Virtual communities offer several ways for members to interact, collaborate, and trade
Types of virtual communities:
1. Transaction and other business activities
2. Purpose or interest
3. Relations or practices
4. Social networks
The most popular type of virtual community today is the social network

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Classifications of Virtual Communities

Public Versus Private Communities

• public , meaning that their membership is open to anyone. The owner of the
community may be a privately held corporation (e.g., Twitter), public for profit, or
non-profit organizations. Many of the large social networks, including Facebook,
belong to the public for profit category.
• private communities belong to a company, an association, or a group of
companies and their membership is limited to people who meet certain
requirements (e.g., work for a particular employer or work in a particular
profession). Private communities may be internal (e.g., only employees can be
members), or external (for customers).

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Recent Innovative Tools and Platforms for Social Networking

1. Snapchat.com − A mobile photo messaging service for “chatting” with friends

through photos, videos, and captions “like ‘texting’ with pictures or videos”
2. Whatsapp.com − According to its website, WhatsApp is a cross-platform free
mobile messaging app for smartphones. Users can form groups, send each
other unlimited images, video and audio media messages. The company was
acquired by Facebook in 2014 for around $19 billion.
3. Instagram.com − A free platform for sharing photos and videos. As a social
network, it allows for creation of reviews, etc. (Acquired by Facebook in 2012.)
4. Hshtags.com - (A social media search engine dedicated to hashtags’) –Enables
users to see in real-time, all public content related to any keyword and join any
related public conversation in real time

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The Future: WEB 3.0

• Web 2.0 is here. What’s next? The answer is a still-unknown entity

referred to as Web 3.0 , the future wave of Internet applications.
• Web 3.0 is projected to deliver a new generation of business
applications that will see business and social computing converge.
Web 3.0 could change the manner in which people live and work as
well as the organizations where they work.

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Evolution of web technologies
Source: Adapted from Spivack (2007)

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