Who Am I? > Yuqing (Ching) Ren Transforming > 4 th year Assistant Professor in the Information and Decision Sciences Department B Business with Social i ith S i l > Ph.D. from Carnegie Mellon University > Research Interests focus on online communities, Media Technologies collaboration technologies, knowledge management, and agent-based modeling of complex social networks > Teach IDSC 3001 and MBA elective on Web 2.0 Yuqing (Ching) Ren Information and Decision Sciences Carlson School of Management 12/2/2010 12/2/2010 Agenda Read This Book! > Engaging consumers and employees > MovieLens Community research > Wikinomics: How Mass > Open innovation and crowdsourcing > Open innovation and crowdsourcing Collaboration Changes Collaboration Changes Everything , by Don Tapscott > Amazon Mechanical Turk research and Anthony D. Williams > Open source and peer production > Wikipedia research 4 12/2/2010 12/2/2010 Why Web 2.0? Web 1.0 to Web 2.0 > Facebook has 500 million > Web 1.0 > Web 2.0 users with 70% outside of US > Wikipedia has 3 million+ > Static > Dynamic articles in English, all created by volunteers > Publishing > Publishing > Collaborating > Collaborating > Apache Web Server, an > Non user enhanced > User generated Open Source Software project, is the infrastructure for ~50% of all websites > Massively Multiplayer Online Games were a $1 billion The old Web is about sites, clicks, and eyeballs market in North America & Europe in 2006 The new web is about communities, participation, and peering > Dell, IBM, and NASA creating spaces in Second Life 5 6 12/2/2010 12/2/2010 1
Web 2.0 as a Platform Web 1.0 versus Web 2.0 > According to Tim O'Reilly, Web 2.0 is the business revolution caused by the move to the Internet as platform, and the key to success is users add value and building databases that dd l d b ildi d t b th t get better the more people use it 7 12/2/2010 12/2/2010 Wikinomics: The Art and Key Tools of Web 2.0 Science of Peer Production > Wikinomics, the new model of innovation and value > Blogs - An online journal that keeps a running chronology of entries. creation called "peer production" or peering, describes > Wikis - A website that anyone can edit what happens when masses of people and firms directly from within the browser collaborate openly to drive innovation and growth in p y g > Social Networks - Online community that S i l N t k O li it th t their industries allows users to establish a personal profile and communicate with others > Other Tools (RSS, Folksonomies, Mashups, Virtual Worlds, Rich Media, Twitter/microblogging) 10 12/2/2010 12/2/2010 The Four Principles NBA on Social Media of The New Web > Among professional leagues, N.B.A. has the most > Openness fans on Facebook (5.3 million), the most followers on Twitter (2.1 million) and the most viewed videos > Peering g on YouTube (438 million). > Sharing > All 30 teams have a presence on Facebook and Twitter. Nearly 200 players — more than 40 percent > Acting globally of the league — have Twitter accounts. > Besides workouts and lunch, players also express sentiments: “Loosing people eryday, enjoy ya life n i know its hard but try n do so wit no regrets!” 11 12/2/2010 12/2/2010 2
Coca-Cola Social Media > To build “brand love” and “brand value” > Feeds on Twitter Engaging Consumers as g g g > Video on YouTube ($100K) • Happiness machine on campus H i hi Prosumers > Expedition206.com • Three 20-sth to 206 countries • Blog on Twitter and Flickr 12/2/2010 12/2/2010 A New Model of Prosumption > Customers do more than customize or personalize their wares; they can self-organize to create their own designs or ads. > It makes big impacts with fewer resources I k bi i i h f > It innovates more rapidly and engages stakeholders in loyal communities > It benefits from positive feedback loops that are difficult for competitors to reverse 15 16 12/2/2010 12/2/2010 The Twister Bot Change of Marketing Funnel > Purchase of customers are not the end of marketing, but only half-done. From th t that point, firm needs to i t fi d t support and empower customers to make them happy, because this can lead to even bigger sales. http://mindstorms.lego.com/MeetMDP/RobT.aspx 18 17 12/2/2010 12/2/2010 3
Mass Connectors Mass Mavens > Mass influencers who issue their influence > Mass influencers who issue their influence through massive social networks . These through bogs, discussion forums, online reviews. people often use Twitter or Facebook as channel These people are extremely productive and are to influence others and are heavily trusted. y highly likely to cover top several search results of g y y p > 80% impressions from 6.2% or 11 million very related online search terms. > 1.31 billion post every year from 13.4% or 24 connected people with 537 (versus 133 for average people) friends or followers million people (not just blogging but also 60% from discussion forums, ratings, and reviews) 19 20 12/2/2010 12/2/2010 Harnessing Prosumer Communities > More than customization > Losing control > Customer tool kits and context orchestration C t t l kit d t t h t ti > Becoming a peer > Sharing the fruits 21 22 12/2/2010 12/2/2010 Community Growth 02-07 23 24 12/2/2010 12/2/2010 4
Partnership and Revenue Revenue and Units Sold (02-07) Sharing > Design challenges and the Bestee Awards > $20,000 for Design of the Year > Thursday hourly awesome giveaway > Street Team Points S T P i > Tell friends and get points > Tee Riffic photos and Tee V ($15 per photo used) > Link to Threadless from other sites ($3 per sale) 25 26 12/2/2010 12/2/2010 Not An Easy Task > Delloitte ‘s 2008 Tribalization of Business Survey > A majority of communities have fewer than 500 active How to Build a Vibrant members and 50% respondents said biggest obstacle to making communities is to get people engaged to making communities is to get people engaged Online Community > Companies also reported a significant impact from the communities. 35% have seen an increase in word-of- mouth for their brands, 28% have seen their overall brand awareness, 24% have seen increase customer loyalty and bringing outsides ideas into the firm. 28 12/2/2010 12/2/2010 Critical Mass Theory Two Bases of Commitment to Groups (Prentice, Miller, and Lightdale, 1994) (Oliber, Marwell, & Teixeira 1985) > “Snob and bandwagon effects” > Group Identity > To predict the probability , extent, and effectiveness > Commitment to the group as a whole & what it stands for of group action, you need to consider two variables: > Group commitment can be independent of commitment to its > The shape of the production function members (e g members (e.g., National Rifle Association, Sierra Club) National Rifle Association Sierra Club) > Interpersonal Bonds > Heterogeneity of resources and interests in the population with interests being the values > Commitment to the group through commitment to its members > Like the group to the extent one knows, likes & feels similar to individuals place on the public goods and resources being what individuals must contribute to achieve it particular members (e.g., Fraternity, friend circles) 29 12/2/2010 12/2/2010 30 5
Translating from Theory to Design Research Site: MovieLens.org > Personalized movie recommendation site Guidelines Identity-Based Bond-Based Commitment Commitment > Discussion forums added in June 2005 • about a social category • about particular members Provide > New features • emphasizing group • emphasizing interpersonal detailed information homogeneity similarity > Movie groups • highlighting out-group • highlight individual presence identities > Profiles page • to the group • to individual others Facilitate > Recent activity page repeated exposure • with one’s entire group • with individual others > Commenting Support communication 12/2/2010 31 12/2/2010 32 Ten Movie Groups Group Profiles > Ten clusters of users with similar size and level of > Group membership activities based on cosine similarity between user > Group name and icon movie ratings > Group statement > Animal names such as Tiger, Bear, … > Animal names such as Tiger, Bear, … > Group homogeneity G h i > Representative movies > High rating movies > Frequently rated movies > Out-group presence > Group rankings 12/2/2010 33 12/2/2010 34 Group Membership Group Homogeneity 12/2/2010 35 12/2/2010 36 6
Comparison with Other Groups Individual Profiles > Individual information > User ID and picture > Movie group > Personal information P l i f i > Interpersonal similarity > Similarly rated movies > Differently rated movies > Movie predictions 12/2/2010 37 12/2/2010 38 Similar Ratings Different Ratings Predictions 12/2/2010 39 12/2/2010 40 Main Findings > Theory-inspired designs increased self-report commitment, visit frequency, and contribution > 11%-100% increase in visit frequency Crowdsourcing & g > More features were sometimes (not always) better Open Innovation > Newcomers and old-timers responded differently, and newcomers were more open and responsive to the new features 12/2/2010 41 12/2/2010 7
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