Lecture 7: E-commerce, Web 2.0, and Social Networking Systems nga.lethiquynh@ueh.edu.vn Study questions Q1 How organizations use ecommerce? Q2 How organizations use Web 2.0? Q3 How Do Social Networks Add Value to Businesses? Q4 What are business applications for Facebook, Twitter, and User-Generated Content (UGC)? Q5 How can organizations manage the risks of social networking applications? Q1 How organizations use e-commerce? E-Commerce  e-commerce is the buying and selling of goods and services over public and private computer networks E-Commerce Company categories  Merchant: buy goods and resell them  Non merchant: sell services and goods provided by others  a company can be both a merchant and nonmerchant company E-Commerce Merchant Companies  Merchant companies: B2C sales between a supplier and a retail customer B2B sales between companies B2G sales between companies and governmental organizations C2C Source: textbook[1], page 250 Nonmerchant E-Commerce Source: textbook[1], page 249  Auctions: match buyers and sellers by using an ecommerce version of a standard auction  Clearing house: provide goods and services at a stated price and arrange for the delivery of the goods, but they never take title  Exchanges: matches buyers and sellers Unique Features of E-commerce Technology Ubiquity Personalization Interactivity Information density eCommerce techonology features Social technology Global reach Universal standards Richness Ubiquity  Internet/Web technology available everywhere: work, home, and so on, anytime  Effects:  Marketplace removed from temporal, geographic locations to become “marketspace”  Enhanced customer convenience and reduced shopping costs Information density  Large increases in information density— the total amount and quality of information available to all market participants  Effects:  Greater price transparency  Greater cost transparency  Enables merchants to engage in price discrimination 10 How Do Social Networks Add Value to Businesses?  Increase the Number of relationships  Increase the Strength of Relationships Progressive organizations:  Maintain a presence on Facebook, LinkedIn, Twitter, and other SN sites  Encourage customers and interested parties to leave comments  Risk - excessively critical feedback 25 Using Social Networking to Increase the Number of Relationships Source: textbook[1], page 259 26 Using Social Networks to Increase the Strength of Relationships the strength of a relationship is the likelihood that the entity in the relationship will something that benefits the organization  social networks provide four forms of value: influence, information, social credentials, and reinforcement   If an organization can induce those in its relationships → strengthen that relationship 27 28 Q4 What Are Business Applications for Facebook, Twitter, and User-Generated Content (UGC)? With Facebook, organizations can  create a page and manage that page for business purposes  Use Facebook Groups  Use Facebook Applications Source: Facebook 29 principles for designing meaningful FB applications • use information in the social graph • share a personal perspective on the world Social Useful Expressive Engaging 30 • address real needs, from entertainment to practical tasks • compel users to come back again, and again, and again 31 Twitter  a Web 2.0 application that allows users to publish 140-character descriptions of anything  is an example of a category of applications called microblogs Source: twitter.com How Can Businesses Benefit from Microblogging?  Public relations (PR)  Microblogging enables any employee or business owner to communicate with the world  Twitter  essentials for PR Relationship sales  relationships forming from microblogging can serve as an ideal channel for sales  Market research  to know what people think of your product 32 User-Generated Content (UGC)  Common types of UGC: Source: Textbook[1], page 269 33 UGC Applications Source: Using MIS, Kroenke, page 270 34 35 Q5 How Can Organizations Manage the Risks of Social Networking Applications? Manage the Risks of Social Networking Applications   Problem Sources  Inappropriate content  Unfavorable review  Dependency on the SN vendor Responding to Social Networking Problems  Leave it  Respond to it  Delete it 36 Summary Q1 How organizations use ecommerce?  Q2 How organizations use Web 2.0?  Q3 How Do Social Networks Add Value to Businesses?  Q4 What are business applications for Facebook, Twitter, and User-Generated Content (UGC)? Q5 How can organizations manage the risks of social networking applications?  37 Additional Resources  Vietnam B2C Ecommerce 2014 Report  Social Media Revolution (2013)  Social Media Revolution (2017) 38