This document discusses how organizations use e-commerce, Web 2.0, social networking, and user-generated content. It explores how e-commerce allows businesses to sell directly to consumers or other businesses. Web 2.0 focuses on user collaboration and sharing through applications like social media. Social networks can increase relationships and influence for businesses through platforms like Facebook and Twitter. While these tools provide opportunities, they also present risks like inappropriate content that groups must manage.

1. Lecture 7: E-commerce, Web
2.0, and Social Networking
Systems
nga.lethiquynh@ueh.edu.vn

2. 2
Study questions
Q1 How do organizations use e-
commerce?
Q2 How do 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?

3. 3
Q1 How do organizations
use e-commerce?

4. 4
E-Commerce
 e-commerce is the buying and selling
of goods and services over public and
private computer networks.

5. 5
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.
5

6. 6
1. B2C sales between a supplier and a retail customer
2. B2B sales between companies
3. B2G sales between companies and governmental
organizations
C2C
E-Commerce Merchant Companies
 Merchant companies:
Source: textbook[1], page 250

7. 7
Nonmerchant E-Commerce
7
 Auctions: match buyers and sellers by using an e-
commerce 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
Source: textbook[1], page 249

8. 8
Unique Features of E-commerce Technology
eCommerce
techonology
features
Ubiquity
Information
density
Global reach
Universal
standards
Richness
Social
technology
Interactivity
Personalization

9. 9
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

10. 10
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

11. 11
Global reach
 The technology reaches across national
boundaries, around Earth
 Effects:
 Commerce enabled across cultural and
national boundaries seamlessly and without
modification.
 Marketspace includes, potentially, billions
of consumers and millions of businesses
worldwide.

12. 12
Universal standards
 One set of technology standards:
Internet standards
 Effects:
 Disparate computer systems easily
communicate with one another.
 Lower market entry costs; costs merchants
must pay to bring goods to market.
 Lower consumers’ search costs-effort
required to find suitable products.

13. 13
Richness
 Supports video, audio, and text
message
 Effects:
 Possible to deliver rich messages with text,
audio, and video simultaneously to large
numbers of people.
 Video, audio, and text marketing messages
can be integrated into single marketing
message and consumer experience.

14. 14
Social technology
 The technology promotes user content
generation and social networking
 Effect:
 New Internet social and business models
enable user content creation and
distribution, and support social networks.

15. 15
Interactivity
 The technology works through
interaction with the user
 Effects:
 Consumers engaged in dialog that
dynamically adjusts experience to the
individual.
 Consumer becomes co-participant in
process of delivering goods to market.

16. 16
Personalization/Customization
 Technology permits modification of
messages, goods
 Effects:
 Personalized messages can be sent to
individuals and groups.
 Products and services can be customized to
individual preferences

17. 17
How Does E-Commerce Improve
Market Efficiency?
 Disintermediate
Source: Vannevar

18. 18
 Price elasticity: measures the amount that
demand rises or falls with changes in price.
How Does E-Commerce Improve
Market Efficiency?
18

19. 19
 Price information:
How Does E-Commerce Improve
Market Efficiency?
19
Source: Digital River

20. 20
Q2 How do organizations
use Web 2.0?

21. 21
Web 2.0
 focused on the ability for people to
collaborate and share information
online

22. 22
Comparison of Web 2.0 with Traditional
Processing
Source: textbook[1], page 252

23. 23
How Can Businesses Benefit from
Web 2.0?
 Advertising
 specific to user interests
 Example: Google AdWords, Google AdSense
 the cost of reaching a particular, qualified
person is much smaller than in the
traditional advertising model.
 Mashups
 occur when the output from two or more
Web sites is combined into a single user
experience.
 Example: Google’s My Maps

24. 24
Q3 How Do Social Networks
Add Value to Businesses?

25. 25
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.

26. 26
Using Social Networking to Increase
the Number of Relationships
Source: textbook[1], page 259

27. 27
Using Social Networks to Increase
the Strength of Relationships
 the strength of a relationship is the
likelihood that the entity in the
relationship will do 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.

28. 28
Q4. What Are Business
Applications for Facebook,
Twitter, and User-Generated
Content (UGC)?

29. 29
With Facebook, organizations can
 create a page and manage that page
for business purposes
 Use Facebook Groups
 Use Facebook Applications
Source: Facebook

30. 30
4 principles for designing meaningful FB
applications
• compel users to
come back again,
and again, and
again
• share a
personal
perspective
on the world
• address real
needs, from
entertainment
to practical
tasks
• use
information
in the social
graph
Social
Social Useful
Useful
Engaging
Engaging
Expressive
Expressive

31. 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

32. 32
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

33. 33
User-Generated Content (UGC)
Source: Textbook[1], page 269
 Common types of UGC:

34. 34
UGC Applications
Source: Using MIS, Kroenke, page 270

35. 35
Q5 How Can Organizations
Manage the Risks of Social
Networking Applications?

36. 36
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

37. 37
Summary
 Q1 How do organizations use e-
commerce?
 Q2 How do 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?

38. 38
Additional Resources
 Vietnam B2C Ecommerce 2014 Report
 Social Media Revolution (2013)
 Social Media Revolution (2017)