9. The Age of Conversation “ Social Media is people having conversations online”
10. “ For seizing the reins of the global media, for founding and framing the new digital democracy, for working for nothing and beating the pros at their own game, Time’s Person of the Year for 2006 is you”
12. Reason #1 SOCIAL NETWORKING SITES ARE OFFICIALLY MORE POPULAR THAN MOST SITES. TIME, OCTOBER 13, 2007
13. These people companies’ potential customers, employees or shareholders Over 13 million articles 200,000,000 blogs #2 largest search engine in the world 54% = no. of bloggers who post content or tweet daily
14. Prospects of Web 2.0 Business Traditional Method The Internet Small Jewelry designer
15.
16.
17. The fact is… Web 2.0 is not a fad It’s a fundamental shift in the way we communicate. People are talking about your brand. Right now.
18. However Only 38% of companies gather insight from customer engagements Only 32% look for ways to turn problems into new sales opportunities Only 17% use the opportunity to identify & cultivate potential customer champions and advocates Only 1 in 5 embrace intelligent Internet analytics Source: http://www.destinationcrm.com/articles/Web-Exclusives/Viewpoints/Can-You-Hear-the-Social-Media-Conversation-56361.aspx
19. Bottom Line? Nearly two-thirds of companies are not finding their customers’ voice Maintaining customer happiness & loyalty comes from listening to where & how customers are talking
20. Tasks of Web 2.0 Business Boarding the 2.0 wagon…
So what comes to your mind when you think of Web 2.0? For the Koreans: Cyworld, gmarket, naver
Web 2.0 A term broadly referring to Internet services that foster collaboration and information sharing; These characteristics are what set “Web 2.0” apart from “Web 1.0”.The term is often applied to websites and Internet services that foster social media or other sorts of peer production . Social Media Content that is created, shared, and commented on by a broader community of users . Services that support the production and sharing of social media include blogs, wikis, video sites like YouTube, and most social networks.
Here’s another way to understand what Web 2.0 is about. Tag cloud which a typical web 2.0 phenomenon in itself. Tags are usually single words and are normally listed alphabetically, and the importance of a tag is shown with font size or color So we now know what web 2.0 is. What sets it apart from web 1.0 then?
Here’s web 1.0 as we know it. The supplier has control over the information so they were seen as the powerful, magnanimous ones. The way we used Web 1.0 was typically very linear. The internet was seen as a tool for business and utility. Webmasters created websites and users visited and viewed them. Communication was between webmaster and client. Webpages were static and when we needed an answer to a question our only option was to “AskJeeves” or “Yahoo”
Web 2.0 sites allow users to interact not only with the site and webmaster but with other people who access the site. Some good examples of Web 2.0 sites are Facebook, MySpace, and Digg. Nowadays anyone and everyone is creating their own webpages filled with content that they enjoy. Making webpages is now within the reach of people who have no programming knowledge. In Web 1.0 website creation was left to the “experts”. The use of the internet went from being driven by expert webmasters to being driven by users. Users are now involved in creating their own internet experience. There are thus the ones who are empowered with the ability to create and interact with others. One way I like to think of the difference between 2.0 and 1.0 is to consider Web 1.0 as a 2D picture that one looks at and enjoys whereas Web 2.0 is a 3D experience where things are happening all around you and you are a part of it.
The shift can be illustrated by this diagram. Here, we are witnessing a paradigm shift where traditional means of communication are quickly giving way to a new generation of Internet based tools. Traditional means of communication puts heavy reliance on print-based documents, email and static Internet websites. However with digital media tools becoming increasingly cheap and ubiquitous, audiences are now allowed to be involved in far greater levels of two-way interaction, discussion and conversation shift of control from institutions to consumers. the media no longer owns the audience. Instead, the audience has now the power to create and produce their own content.
Welcome to the Age of conversation Conversation is the essence of social media because social media is basically people having conversations online. And these conversations are powered by the digital tools mentioned earlier.
UGC has become possible thanks to the tools of creation that has become increasingly available in everyone’s hands. Take for example our own personal computer. It comes equipped with media creation and editing tools. Even the cell phones that are in our pocket boast video recording, audio recording, GPS location, mobile internet and other capabilities, making it a very powerful media creation device. With such easily available digital media tools, people who were mere consumers in the past are now becoming creators
Not only that, jumping onto the web 2.0 bandwagon has financial benefits for businesses Let’s take a small jewelry designer as an example. If she wants to sell to the consumers directly, the traditional method is to sell her products at craft fairs and such. However, with business websites that are affordable to create, small business can thrive on selling their products to consumers directly via the Internet. Also, a brick and mortar jewelry store would need to be filled with products for customers to look at but with such business websites, online photographs would suffice and consumers can simply choose and select their desired items. This is a huge advantage to small business owners such as a jewelry designer because the product does not have to be assembled until the consumer orders it.
This reiterates the long tail principle which corresponds to the Pareto Distribution where the business landscape is increasingly shifting away from just a small number (head of the demand curve) to a huge number of niches (tail of the curve). Another dimension of the long tail effect is the dramatically falling costs of reaching those niches. As a result, with the Internet and the easy access to the tools of Web 2.0, it can drive demand down to serve millions of niche markets. In sum, the prospect of Web 2.0 businesses is in the creation of the Internet and digital media tools which helps increase the efficiency by allowing consumers to have easier access, hence breaking the geographical barrier and lowering the distribution costs. In fact, several initiatives have been undertaken by businesses with the purpose of expanding their consumer base into different countries. Some web-based initiatives include incorporating different languages to reach global audiences, using culturally-appropriate colors in the web pages, allowing various payment methods and currencies acceptable in different countries, tailoring contents and visuals to the targeted audiences, etc.
Why is it important to find the customers’ voice? Or why do companies need to have engaging conversations with employees and clients? Well, maintaining customer happiness and loyalty comes from listening to where and how customers are talking.
But just by jumping onto the web 2.0 bandwagon does not mean immediate success. They have to properly utilise the tools. We will hence examine 2 case studies in which the companies in the respective industries engage in web 2.0.
To make it fair between the 2 industries. So that we can analyze them in a level playing field. For fair comparision