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Chapter 8

Chapter 8. E-Commerce, Web 2.0, and Social Networking. Before the Internet…. How did we do business? How did companies communicate with customers? Who controlled the relationship? E-commerce: buying and selling of goods and services over public and private computer networks.

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Chapter 8

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  1. Chapter 8

    E-Commerce, Web 2.0, and Social Networking
  2. Before the Internet… How did we do business? How did companies communicate with customers? Who controlled the relationship? E-commerce: buying and selling of goods and services over public and private computer networks
  3. Evolution of Interorganizational Systems
  4. How do companies use E-Commerce? E-Commerce is the buying and selling of goods and services over public and private computer networks Merchant companies – take title to the goods they sell. They buy and then resell them. Example? Nonmerchant companies – arrange for the purchase and sale of goods without ever owning or taking title Example?
  5. E-Commerce Merchant Companies Types – May use different IS Sell directly to customers B2C Sell to companies B2B Sell to government B2G Web storefronts – customers can manage orders
  6. Example
  7. Nonmerchant E-Commerce Most common Auctions Others can serve specific industries or interests Clearinghouses Provide goods and services at stated prices and arrange for delivery but never take title Electronic Exchange Matches buyers and sellers
  8. How does E-commerce improve market efficiency? Disintermediation Elimination of middle layers in supply chain Distribution directly to buyer Eliminates carrying costs, shipping costs are reduced Improved flow of price information Customer can find best price for the value Seller can understand price elasticity Direct information from consumer Price experimentation
  9. Web 2.0 Loose grouping of capabilities, technologies, business models, and philosophies First Example:
  10. Comparing Web 2.0 withTraditional Processing
  11. Group Exercise Each group look at one of the characteristics Compare and contrast the differences between Web 2.0 and Traditional Processing What do the terms mean? Can you find an example of the Web 2.0 characteristic?
  12. Software as a Service Companies that don’t sell a product or license They provide software as a service (free) Thin client processing (no software installed) Example: Google Maps
  13. Why is Web 2.0 important? Use increases value Participation and ownership differences “Do what you want, we’ll publish it.”
  14. How can businesses benefit? Advertising Adwords – you pay to put your ad on sites or in search results Adsense – others pay you to put their ad on your site Social Networking Mashups

  15. Internet Advertising

    (Extra content, not in book)
  16. Advertising Targeted Advertising possible in Facebook Location Demographics Interests Send people to your site for information, to buy product, or to your Facebook page to become a fan
  17. Facebook Advertising Designing the Ad Choose External URL or a page Title Body Picture
  18. Facebook Advertising Target the Ad Location Demographics Likes/Interests Education Workplace Facebook Connections
  19. Facebook Advertising Set the Budget
  20. Some Terms to Know Total Impressions = How many times our ad is visible to users Total Clicks = How many times users click on our ad to visit our page Click Through Rate = Clicks/Impressions Average CPM = Cost per 1000 impressions
  21. Tracking Clicks and $ on Facebook
  22. Designing the Ad Choose type of ad Text Image Display Ad Mobile Ad
  23. Text Ad
  24. Display Ad
  25. Ad Settings
  26. Keywords Make your own list Use Keyword Tool to find other suggestions
  27. Tracking Ad Performance
  28. Comparing CPM toEvaluate Advertising Options Print Advertising $400 32,000 pieces CPM = 400/32 = $12.50 TV Advertising $1500 135,000 viewers CPM = $11.11 Facebook Advertising $2600 12 Million impressions CPM = $0.22
  29. Extra Credit: The Mobile Movement Watch video How do you use your phone? Over a 3 day period, log your use. Summarize in a chart how you use your phone Messages (text or email) Information search Purchases Social Networking Did use of your phone impact purchasing decisions? How?
  30. Social Capital Investment in social relations with the expectation of returns in the marketplace Adds Value by providing: Information Influence Social Credentials Personal Reinforcement Total Value of your Social Capital: # and strength of relationships and the resources controlled by those related
  31. Over 100 million members Professional network of contacts Resume management/availability Find and be introduced to potential business partners and experts Interact in group settings Recruiting
  32. Step One – Get Established Establish your Profile Contact information Experience Education Recommendations
  33. Step Two – Get Connected Add connections Click on Contacts Add connections from your: Email addresses Colleagues Classmates LinkedIn’s recommendations See who others are connected with and send invitations Rule of Thumb: Connect with whom you know
  34. Step Three – Get Involved Source: http://www.socialmediaexaminer.com/social-media-funnies-bikers-get-linkedin/
  35. Extra Credit Create a profile on LinkedIn Connect with me and other professors Join a JMU group Post a discussion item on LinkedIn Advice: Review your Facebook and Twitter presence and be sure that if you connect them on LinkedIn that there is nothing embarassingor inappropriate for a professional If you don’t connect accounts, make sure your security settings are appropriately set on Facebook
  36. How Social Networks Add Value to Businesses Number of relationships Strength of relationships Resources controlled by “friends” Traditional vs. Social Networking with Technology – How is it different?
  37. Business Applications for Facebook Applications Social Useful Expressive Engaging What apps on FB do you use?
  38. Should We Have a Group or Page? Use for group interaction and communications Consider Facebook Groups Can be secret, open, or closed Use for promotion to current or prospective customers Consider Facebook Pages Post variety of information related to your business Profiles – for individuals

  39. Measuring Engagement

    (Extra content, not in your book)
  40. Engagement Ratio Engagement Ratio = # of Interactions Fans Interactions: Likes to your posts Comments on your post Wall posts by others Shares
  41. Comparing Engagement Ratios
  42. Beauty of Comparing Ratios Denominator is # Fans – puts you in comparable terms with those who are much larger or smaller Allows you to see what’s working Downside – It’s manual

  43. Using Twitter

  44. Twitter’s Uses Short updates (140 characters or less) Instantaneous Relationship builder with those you may not know…yet Research on variety of topics Research of candidates
  45. An Analogy – Twitter is like a Party Can be as large as you want it to be Invite (Follow) people who tweet about things that interest you People you can learn from People you can help What do you say? What you would say when networking at a party Use manners, show kindness, have fun Source: http://www.inc.com/marla-tabaka/giving-up-on-twitter.html
  46. Twitter Terms Following, Followers Tweet, Retweet, and DM Hashtags to know #anyterm – used to categorize tweets #hburg #jmu #fail #ff – Follow Friday – recommendations on who to follow
  47. Business Application of Twitter Dialogue with stakeholders Public relations Relationship sales Market research
  48. User Generated Content (UGC) Ratings and Surveys Opinions Customer Stories Discussions Wikis Blogs Videos
  49. Crowdsourcing Users provide services to or on behalf of the vendor Combines social networking, viral marketing, and open source design Example: www.msdn.com
  50. Empowering Customers Enterprise 2.0 – application of Web 2.0, collaboration systems, social networking to facilitate the cooperative work of people in organizations SLATES Search Link Authoring Tags Extensions Signals
  51. SLATES
  52. Risks of Social Networking Junk and crackpots Inappropriate content Unfavorable reviews Mutinous movements Dependency on social network vendor Example: www.facebook.com/progressive
  53. Responding to Problems Leave it Respond to it Delete it
  54. Fox Lake Story Continues Scenario Video
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