The document explores the evolution of social media and network platforms, highlighting their significant milestones from the birth of the internet in the 1970s to the dominance of platforms like Facebook, Twitter, and Instagram. It discusses key network properties, including the value and dynamics of heterogeneous networks, the concept of network effects, and various laws that assess the value of communication networks, such as Sarnoff’s, Metcalfe’s, and Reed’s laws. Additionally, it emphasizes how social media has transformed consumer behavior and interactions by enabling a collaborative environment and changing trust dynamics between individuals and institutions.

1. LECTURE L19
NETWORK PLATFORMS

2. Facebook 2004
Social Media
iPhone 2007
Mobile Internet
FourSquare 2009
Location based Services

3. Eric Schmidt
Le Web Conference 2011

7. before social media?

8. READ ONLY CULTURE

9. PASSIVE CONSUMERS

10. STANDARDISED, INDUSTRIALISED

11. before broadcasting?

12. SINGING THE SONGS OF THE DAY

13. CONVERSATION

14. Radio
Commercial
Radio
TV
Magazines
1900 20001950
Videotapes
Commercial
TV
Newspapers
Films
LP CD DVD
Broadcasting

15. First email
sent
1971
First online
bulletin board
1979
World Wide
Web
1991
GeoCities
1994
Instant Messages IM
1996
1970 20201980 1990 2000 2010
TheGlobe.com
1995
LiveJournal
P2P, Napster
1999
Friendster
2002
MySpace
Linkedin
Photobucket
Delicious
2003
Facebook
2004
Youtube
2005
Twitter
2006
END OF
BROADCASTING
Broadcasting

16. END OF
BROADCASTING

17. Clay Shirky
How social media can make history

19. And then we got LOL cats…

21. Network

22. Network Effect
Occurs when a product or service becomes more
valuable to its users as more people use it
Understanding this helps build better products and
businesses
Source: Benedict Evans slide deck

23. Network properties:
1. Whether the nodes are homogeneous or heterogeneous
2. Their type of clustering and degree of connections
3. Directionality of those connections
4. Whether they have (or are) complements
Network Properties
Networks are basically just a set of nodes connected by links
Source: Benedict Evans slide deck

24. 1. Homogeneous or heterogeneous?
Homogeneous: Composed of similar types of nodes
Skype is an example of a homogeneous network where most of
the value is derived from a single class of users, all interested in
placing a phone call
Heterogeneous: Composed of different types of nodes
OpenTable is an example of a heterogeneous network with two
distinct categories of participants: one side is restaurants, the
other side is diners
Source: Benedict Evans slide deck
Network Properties

25. 2. Degree of connections and type of clustering Source
Degree: Measures number of connections to a single node
Clustering coefficient: Measures degree to which nodes in a
graph (e.g., social graph, interest graph, intent graph, etc.)
cluster together
Type of cluster: Can range from hub-and-spoke (star) to
connected (clique). Example of Facebook friends connections
clustering (high school, college, significant other’s, etc. clusters)
Source: Benedict Evans slide deck
Network Properties

26. 3. Connections: Unidirectional or Bidirectional?
Friends
Facebook, for example,
is one place where
connections tend to be
bidirectional
Follower
Twitter, for example, is one
place where connections can
more easily be unidirectional
or one-way following, leads
to asymmetrical connections
Source: Benedict Evans slide deck
Network Properties

27. 4. Complementary Networks
Increase in usage of one product by a set of users reinforces and
increases the value of a complementary (but separate!) product,
which in turn, increases the value of the original
More usage of the MS Windows operating system, results in
more usage of the MS Office suite of applications
Source: Benedict Evans slide deck
Network Properties

28. Common law for assessing the value of communication networks
Source: Benedict Evans slide deck
Network Properties
Sarnoff’s Law
Value of the network is proportional to
the number of viewers
V = n
Broadcast: Yahoo!, Netflix

29. Common law for assessing the value of communication networks
Source: Benedict Evans slide deck
Network Properties
Metcalfe’s Law
Value of the network is proportional to
the square number of connected users
V = n2
Peer to peer: Facebook

30. Common law for assessing the value of communication networks
Source: Benedict Evans slide deck
Network Properties
Reed’s Law
Value of a group-forming network is proportional to the
and ease with which groups form within it (subgroups
grow faster than sheer number of P2P participants)
V = 2n
Gruop forming: Slack, WhatsApp groups

31. Send a package to a person in Omaha, Nebraska tell them
the name of the person in Boston, Massachusetts but don’t
give them any address
Tell them to mail the package and instruction to someone
the might know some people that might know the Boston
person
Small World Experiment
How many people were involved?
Turns out that the world is connected by six degrees…

32. Actor Kevin Bacon claimed
in an interview that he
worked with everyone in
Hollywood or someone
who worked with them
Became a popular party
game…
Six Degree of Separation

34. Network is a group of interconnected people (social network)
or system of things (telephone, printers to computers)
Marketplace is network where money/transactions flow
between two or more sides with distinct (i.e. hetrogeneous)
groups of users on one side; a successful marketplace is
where supply and demand are attracted to the same place
Network Terms

35. Platform is a network of users and developers; the multi-sided
feedback loop between those users, developers, and the
platform itself creates a flywheel effectincreasing value for
each of those groups.
It can also be thought of as a network that can be
programmed, customized, and extended by outside users—
often meets needs and creates niches not defined by its
original developers at the outset
Network Terms

37. Strange things start to happen

38. Breakfast Club 1985

39. BRAT PACK
MASHUPS

41. YouTube's Origins as a Dating Site

42. YouTube is changing the way we Innovate and learn
The Liquid Network just came online…
The YouTube Effect

43. Chris Anderson
How web video powers global innovation
TED 2010

45. CROWD
ACCELERATED
INNOVATION

46. Crowd - Group of people that share a common interest. The
bigger the crowd, more innovation
Light - Clear visibility of the capabilities of the best people
Desire - Innovation is hard, need practice
Crowd Accelerated Innovation

47. THE TOOLS
OF PRODUCTION
IN THE HANDS
OF PEOPLE

48. WHAT HAPPENS
WHEN YOU
CONNECT PEOPLE?

49. Clay Shirky
How cognitive surplus will change the world

51. WHY DO
PEOPLE
SHARE?

52. WHY DO
PEOPLE
CONTRIBUTE?

53. WHY DOES
OPEN SOURCE
WORK?

55. WHY DOES THESE WORK?
WE DON’T KNOW THESE
PEOPLE AND WE DON’T
TRUST THEM

56. Rachel Botsman
We've stopped trusting institutions and started trusting strangers

58. WHY DO
PEOPLE
SHARE?

59. WHY DO
PEOPLE
CONTRIBUTE?

60. Sharing is in our self interests

61. We do it for ourselves

62. WHY DOES
OPEN SOURCE
WORK?

63. It is in companies best interest

65. Those who control the media control the culture
Social media is the first media network created by consumers
New universe of platforms, how we do business
Social Media

66. Software SellerBuyer
Software brings the coordination cost to near zero
Think Uber, Airbnb etc
Platforms

69. The Network Effect

70. Worldwide, there are over
2.32 billion monthly active
users (MAU) as of December
31, 2018
Facebook in numbers

73. January 15, 2009, US Airways Flight 1549

76. Tahrir Square, 2010

77. Launched October 2010
1 billion active users
In 2012, Facebook bought
Instagram for $1 billion
Instagram

80. Launched March 2010
Pintrest
250 million active users monthy
84% are women
75% of usage is mobile, 93% of users shopped online

81. Launched September 2011
Snapchat
Users: 400 million
First popular with users age 13-23
7 billion videos per day

82. Launched September 2010
WhatsApp
Users: 1 billion
700 million photos and 100 million videos every single day
55 employees - bought by Facebook for $19 billion

83. NEXT