YUJIE YI (Nicole)
Module 1 Unit 1 Socialnomics
Mobile tools (i.e. smartphones) are changing the way we do business
Subsequently the way market products, design products, find customers, interact with
customers etc. is also different.
Mobile tool usage and online consumer behavior is changing
Social media is not a replacement
Capital Management and Business
Information and Communications Technology (ICT) is the largest single component
of capital investment
ICT sector has grown at twice the rate of GDP growth since 1997.
Managers need to know how to invest this capital wisely
The success of your business in the future may well depend on how you make ICT
1 /11 Wikis, Social Networking Applications – i.e. Facebook, Twitter, have changed how we
access and use information. However, they are only the tools.
But…these tools are the means to doing things and not the ends.
As business managers we need to know how to leverage their potential to achieve
Digital Persona of Business
How businesses, customers, suppliers etc. interact in the digital era
Often changes the landscape of how business processes are done
Impacts many things including marketing, branding, communicating and relationship
Digital Persona Changing How We Do Things – PeertoPeer Exchange
P2P (i.e. Napster) changed how we access music. It put the sharing into social media.
It reshaped businesses and required new laws to be created because of the technology.
It ultimately changed the music business landscape.
What is Social Media?
Social Media: ADM1370N Socialnomics
YUJIE YI (Nicole)
Social Media is a group of Internetbased applications that build on the ideological
and technological foundations of Web 2.0 and that allow the creation and
exchange of User Generated Content.
Types of Social Media:
Social Networks: Facebook, LinkedIn, Friendster
Blogs: Blogger, WordPress, Tumblr
Discussion Forums: OffTopic. Com, IGN Boards
Multimedia Sharing: YouTube, Slideshare
Content Aggregators: Digg, Reddit
Social / Collaborative Bookmarking & Tagging: StumbleUpon, Diigo
Old Wine in New Bottles
Social media does NOT change the business processes we do; rather, it changes HOW
we do the processes.
It increases the value of information (but does not necessarily change the information
It also increases NC – coefficient of connectivity – this is what connects people,
information and processes.
3 /11 Categories of Social Media
We can broadly categorize social media based upon functionality.
World Wide Web (1991)
Internet Relay Chat (1983)
Media Sharing (P2P) – (1999)
Social Networking (1997)
Real time location based networking (GPS style technology) (2008)
Overview of Socialnomics
“Socialnomics: How Social Media Transforms the way we live and do business” by
Book is about:
Impact of social media on businesses and consumers
Implications for business & suggestions to improve performance in various business
Overview of Socialnomics ADM1370N Socialnomics
YUJIE YI (Nicole)
Definition: World of Mouth
An advancement of Word of Mouth:
It disseminates the information quickly and globally;
Its digital aspect allows the original integrity of the message to remain intact;
It is traceable to an original source.
Challenge: think twice, tweet once.
Spending time on socialmedia makes you more “productive”
Implications of social media on business:
Business models need to shift, i.e. American Airlines.
Social media also drives activity in the offline world.
Social media is an “and” thing, rather than an “or” thing.
Page 4 – Mass Markets to Mass Niches
Maslow’s hierarchy of needs in the context of consumers (individual satisfaction and
acceptance and social integration)
5 /11 Information distribution (television, newspapers etc.) used to be one to many.
Chris Anderson’s long tail describes how niche information access is the new normal.
Long Tail & Social Media
“The Long Tail: Why the Future of Business Is Selling Less of More” by Chris
Applicable to online businesses: distribution and inventory costs of businesses
successfully applying this strategy allow them to realize significant profit out of