This document discusses how social media is transforming communication and business. It defines key terms like social networking, social media, and Web 2.0. It then outlines five ways that social media is changing communication, such as how people now power browse online instead of reading traditionally, and how writing is influenced by concise formats like tweets. It also outlines five ways social media is changing business, such as how word of mouth travels faster and interruptive advertising is less effective. The document concludes by predicting that social media will have an even greater influence in the future and that niche membership sites will grow faster than large platforms.