Social Computing and Web 2.0 in Business Fundamentals in Information Systems Study Guide

Introduction to Social Computing and Web 2.0

According to the Seventh Edition of "Introduction to Information Systems" by R. Kelly Rainer and Brad Prince, social computing represents a significant shift in how information systems interact with users. This shift is primarily driven by the evolution of the World Wide Web from a passive delivery mechanism to an interactive platform. Web 2.0 represents the suite of tools and characteristics that facilitate this interactive environment. Key characteristics of Web 2.0 include tagging, which refers to using a keyword or term to describe a piece of information such as a blog, picture, article, or video clip. Unlike rigid classification systems, tagging allows users to place information in multiple, overlapping associations. When users generate these classifications themselves to categorize and retrieve web content, it is referred to as folksonomies. Geotagging is a specific subset of tagging that refers to marking information on maps; for instance, Google Maps allows users to add pictures, restaurant ratings, or hotel information to specific geographical locations.

Additional Web 2.0 features include Really Simple Syndication (RSS), a tool that allows users to receive customized information when they want it, removing the necessity of surfing through thousands of websites. For example, the National Public Radio (NPR) website utilizes an RSS toolbar aggregator to help users manage content. Blogs, or weblogs, are personal websites open to the public where creators express opinions or feelings through chronological entries. Microblogging is a specific form of blogging practiced on platforms like Twitter, where users publish short messages, images, or embedded videos.

Advanced Social Structures and Collaborative Technologies

Web 2.0 also encompasses collaborative platforms like Wikis, which are websites made up entirely of user-generated content, with Wikipedia being the most prominent example. Social structures in this digital space are defined by Social Networks. A social network is composed of individuals, groups, or organizations linked by various factors including values, visions, ideas, financial exchange, friendship, kinship, conflict, or trade. The activity of using social software (like blogs) or sharing media is known as Social Networking. Within these networks, the Social Graph serves as a map of a single member's connections across the broader network, while Social Capital refers to the total number of connections an individual possesses within and between these networks.

In a professional context, Enterprise Social Networks are business-oriented platforms, either public or private, designed to support networking, community building, social collaboration, social publishing, social intelligence, and social analytics. Another innovative development is the Mashup, a website that aggregates different content from multiple sources to create a new, integrated service. Google Maps is considered a classic mashup when it pulls information from public transportation websites to provide customers with integrated transit directions.

Fundamentals of Social Commerce and Collaborative Consumption

Social Commerce is defined as the delivery of electronic commerce activities and transactions through social computing. This environment supports social interactions and user contributions, enabling customers to participate actively in the marketing and selling of products in online marketplaces.

Customers benefit from social commerce through better and faster vendor responses on platforms like Twitter, Facebook, and YouTube. They can assist one another via online forums, meet their expectations more quickly, and perform searches, link-sharing, or purchasing without leaving their social network page. For businesses, the benefits are twofold. First, companies can test new products and ideas inexpensively, learn extensively about customer experiences through rapid feedback, and identify/alleviate customer anger quickly. Second, businesses can create more effective marketing campaigns, utilize low-cost user-generated content, enjoy free advertising via viral marketing, and identify influential brand advocates to reward them.

Collaborative Consumption is an economic model based on sharing, swapping, trading, or renting products and services, emphasizing access over ownership. This model includes collaborative production, crowdfunding, and peer-to-peer lending. The advantages of this model include self-management, variety, flexibility, and a positive environmental impact. However, it faces disadvantages such as the need for law and regulatory adjustments, resource and pay issues, and concerns regarding employee benefits and protections.

Social Computing in Shopping and Marketplaces

Businesses utilize social computing in shopping through several distinct mechanisms. Ratings, Reviews, and Recommendations are pervasive and come from four primary sources: customer reviews integrated into vendor pages, expert reviews from independent authorities, sponsored (paid-for) reviews, and conversational marketing where individuals interact via email, blogs, or live chats. Sites like Epinions facilitate this by allowing customers to rate things ranging from cars to music, such as reviews for children's films.

Group Shopping involves websites like Groupon and LivingSocial that offer major discounts for short time frames. Shopping Communities and Clubs host exclusive, short-duration sales for members, often featuring luxury brands at heavy discounts without damaging the brand's image. Social Marketplaces and Direct Sales act as online intermediaries; Etsy is a prime example of a social marketplace where members can market and sell handmade or vintage items. Furthermore, retailers like Sephora integrate these concepts on their digital platforms (sephora.my) by offering Beauty Pass rewards, "Click & Collect" services for in-store pickup within 22 hours, and brand spotlights for companies like Fresh, Rare Beauty, or Drunk Elephant.

Social Computing in Marketing and Market Research

Social Marketing efforts leverage the social context of the user to utilize peer pressure and friend recommendations (such as "likes"). Conversational Marketing involves companies obtaining feedback through blogs, wikis, and online forums.

Market research is heavily conducted via social networks. On Facebook, companies can obtain feedback from fans (acting as a free focus group), test-market messages by asking fans to choose between options, and invite users to surveys through targeted ads based on demographics like age and gender. Twitter provides a rich source of instant information. Businesses can use Twitter Search to monitor what is being said to them or use TweetStats to see trending topics. Companies like Dell, JetBlue, Teusner Wines, and Pepsi use Twitter to solicit information, interact with customers, or provide rapid responses to complaints. LinkedIn is used for market research by posting questions to solicit advice or engaging with specific professional groups for targeted results. Dell also utilizes a dedicated platform called IdeaStorm to directly capture customer ideas and feedback.

Social Computing in Customer Service and Human Resources

Social computing has empowered customers, as they now use the "wisdom of crowds" to their benefit. Companies must closely monitor negative comments and involve customers proactively to resolve issues. In the realm of Human Resource Management, social computing is used for:

  1. Recruiting: Both recruiters and job seekers use online social networks as primary platforms.
  2. Onboarding: Assisting new employees in acquiring the skills and behaviors needed to become effective members.
  3. Employee Development: HR professionals use enterprise tools like Chatter, Yammer, and Tibbr to promote collaboration on projects and simplify workflows. E-learning and e-training are also leveraged through social computing.
  4. Finding a Job: Because the majority of entry-level positions in the U.S. are now listed exclusively online, job seekers utilize traditional sites and social networks like LinkedIn for efficient connection with employers.

Questions & Discussion

Question: Which of the following are features of Web 2.0? a) Really Simple Syndication (RSS) b) Blockchain c) Mashup d) AI Response: The features of Web 2.0 include (a) Really Simple Syndication (RSS) and (c) Mashup.

Question: Which of the following are benefits of social commerce to businesses? a) Competitors can steal their customers b) Obtain free advertising through viral marketing c) Identify problems quickly and alleviate customer anger d) Can get feedback from other customers experience Response: The benefits to businesses include (b) obtaining free advertising through viral marketing and (c) identifying problems quickly and alleviating customer anger. (Note: option d is generally framed as a benefit to the customer in providing peer feedback, though it informs the business).

Question: Describe THREE (3) ways how a company can use social computing in its business. Response: Companies can use social computing in:

  1. Shopping: By integrating customer reviews and ratings to build trust or using social marketplaces like Etsy to sell products.
  2. Marketing: By conducting market research on Facebook and Twitter to test new advertising campaigns or monitor brand sentiment.
  3. Human Resources: By utilizing LinkedIn for recruitment and enterprise tools like Yammer for internal employee development and collaboration.