An introduction to how businesses are using social networks to create value. Working on part 2 - comments about this appreciated.

1. Online Communities “ People of the Earth….. A POWERFUL GLOBAL CONVERSATION HAS BEGUN.” The Cluetrain Manifesto: Levine, Locke, Searls & Weinberger, 2000

3. What is an online community? Message Board Blog Wiki’s Chat Rooms Customer Reviews Forum Instant Messenger Supplier Reviews Content Management System Teleconferencing Technology People Information Exchanges Online Games Virtual Meetings Communities Of Practice Knowledge Communities

4. Definitions of Online communities “ An online community is a messaging system, or forum, which is available to anyone, anywhere, anytime through the internet, which facilitates as ongoing conversation between a group of individuals, large or small, who have a common interest, topic or goal they wish to exchange information, opinions and knowledge on.” Julie Walker Oct 2004. “ A virtual community allows people to engage in the exchange of information, and learn from each other and about each other.” Rothaermela & Sugiyamab (2001) “ groups of people informally bound together by shared expertise and passion for a joint enterprise” Wenger & Snyder (2000) “ Communities tend to be identified on the basis of commonality or identification among their members, whether a neighbourhood, an occupation, a leisure pursuit, or a devotion to a brand.”

5. Brief history of online communities 2003-06 Advertising Community Channels Engagement Brand Marketing CAMERA PHONES 3G, Wireless & mobile 1973 1968 1978-79 2002- 03 1998- 99 1996-97 1994-95 1992- 93 1986-91 1979-85 2000-01 ARPA PAPER PREDICTS EMERGENCE OF VIRTUAL COMMUNITIES FIRST EMAIL MESSAGE STRENGTH OF WEAK TIES BBS’s USENET NEWSGROUPS MUD’s ONLINE SERVICES – COMPUSERVE, AOL, THE WELL, MINTEL etc LOTUS NOTES INTERNET RELAY CHAT LISTSERV WEB CROSSING “ THE VIRTUAL COMMUNITY” COMMUNITIES ONLINE COMMERCE COMMUNITIES – EBAY, AMAZON TEXT MESSAGING INTRANETS HOMESTEADER’S - GEOCITIES NETGA IN SIXDEGREES COMM OF PRACTICE CLUETRAIN MANIFESTO BLOGGER RSS B2B COMMUNITIES – CISCO SAP GOOGLE GROUPS LINKEDIn SOCIAL NETWORKING – FRIENDSTER, LINKEDIN SMARTMobs concepts technologies BBB’s –bulletin boards MUD – Multiple User Dimensions – online strategy games ARPA – Advanced Research Project Agency initiatives Key Jenny Ambrozek & Joseph Cotrel 9 th Int. conference on Virtual Communities

8. Amazon – Product Review Community Conversion Process at Amazon The story of one Amazon customer as told in a white paper from Lithium Technologies: In 1998, the customer went to Amazon, when he could not find the book he was looking for at Barnes and Noble. If it was on Amazon and not too expensive he would order the book. He would do this 2 or 3 times per year. In 2000, he started to read the customer reviews – which he found useful and found that their were other reviews for household items, kitchen gadgets, tools etc. At this time, his transaction value increased to $100 to $200 and he made purchases several times per year. In 2001, he started to post his own reviews and had 15 to 20 on the site. Now, his buying behaviour has changed and Amazon is his first port of call.

9. EBay – buyers and sellers EBay utilise customer and supplier reviews, in a peer to peer reputation based community where both buyers and sellers can be rated by those whom they have either bought from, or sold to. As both buyers and sellers develop their reputation within the community the more likely they are to trade and remain loyal to the EBay exchange – moving to another platform will mean they have to either build up their reputation or operate within an environment which does not benefit from this form of trust building system. This system is not full proof and has been manipulated in the past, but it does create a valuable guide for the community and a reward for loyalty to and participation in the community.

11. Zonelabs – Customer Support Community(1) Zonelabs are a software vendor who develop and sell Firewall solutions. They have a free downloadable product which is there entry level solution for home users and has limited functionality. In 2002, over 60million copies of their free software had been downloaded and it was financially impossible to support all these users via a traditional help desk. They implemented an online support community, where users could help each other. Zonelabs did provide some technical support resource to the online community to supplement the community’s knowledge. Currently there are 13 topics within the Zonelabs support community – one of which is an off-topic board where non product specific conversations take place. There are no statistics for Zonelabs as it is a subsidiary of Check Point technologies.

15. Ezboard – Lifestyles the largest English speaking community host Audience Ezboard's members are young and economically strong. Forty percent of Ezboard household heads are between 18 and 35, and half between 35 and 54. More than 50% of our members are women and over 90% of our users are on Ezboard sites for more than an hour a week. Revenue model Profitable since Q2 2004, Ezboard's revenue model relies on a mix of subscription and advertising . Description The largest online community network site on the planet, Ezboard connects people like you with other people who share your interests and passions. Whether you want to participate in online conversations or run your own discussion board, Ezboard's hosted Web platform makes it easy for you to get up and running in just a few minutes.

16. iVillage

18. Dove – Campaign for Real Beauty

20. Other branded communities…..

22. Communities standalone businesses

23. Case Study - Habbo Hotel Description : Habbo hotel is developed and managed by Sulake, an interactive entertainment company specializing in developing, publishing and distributing multiplayer online communities and games. Community Statistics 2000 Founded by Finnish advertising company 2005 35m registered users Turnover US$18m 16 countries – localised language and tone 5.4 million unique visitors per month Target audience – 12 to 18 Male Female split – almost 50-50 Community Attributes Member safety number ONE priority Moderated 24/7 x 365 All activity logged and monitored 2/7 x 365 Parental Reporting available Customisable Avatars Look and feel in line with target audience Community leaders who provide advice to the members on topics like drug abuse, sex, teenage relationships etc

24. Habbo Hotel – Case Study (2) Research carried out by a US company has identified a number of characteristics which are required by the youth (16 to 25) segment. The table to the left identifies these characteristics and shows that the majority of these are present in the Habbo hotel online community which is aimed at the 12 to 18 market segment. In addition to these characteristics online trust and security is very important. Habbo hotel address this through 24/7 moderation and the creation of “audit trails” for all activity on the site. Safety of the members is the primary concern of Habbo Hotel. “ You can attract youth through clever design, but you retain them through commitment to genuine and persistent “listening” to their needs.” Community Attributes to attract & engage youth(16-25) culture (research by US org. Habbo Hotel Age 12 to 18 Attract and Engage with Information which is updated frequently Yes A visually appealing and easy to navigate user interface Yes A system which enables them to do multiple tasks quickly Yes Develop & Maintain their Loyalty through Communication in their own language and tone Yes “ funny” or humorous interactions Yes Facilitating self expression Yes Giving them a voice, listening to them and acting on their views Yes Help them to help themselves Yes Making them feel like “insiders” Yes Learn who the influencers are and how they influence the group by Facilitating their ability to converse with each other Yes Understand how they filter info and what they will or will not forward on ? Understanding that incentives are expected but do not motivate ? Connect them to a “brand” Yes

26. New Advertising Channel

28. Web Site Traffic Strategies

29. Traffic Strategies EMAIL Search Engine Optimisation SMS/Text WEB SITE Word of Mouth Viral Online Circular Multiple Iterations From One instance CONTENT must be: COMMUNITY must be: ONE WAY – ONE TIME Circular Multiple Iterations From One instance Informative Valuable Interesting Relevant Engaging Educational Entertaining Enhancing a lifestyle

35. Client A Q&A Discussion