Over a billion and a half people signed up for Facebook. This site the most used site for people when using the Internet. People are not watching TV so much anymore - they using Facebook, Youtube and Netflix and number of popular web sites.
Some people denote their time working for others online. What drives people to write an article on Wikipedia? They don´t get paid. Companies are enlisting people to help with innovations and sites such as Galaxy Zoo ask people to help identifying images. And why do people have to film themselves singing when they cannot sing and post the video on Youtube?
In this lecture we talk about how people are using the web to interact in new ways, and doing stuff.
19. 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
20. 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 Putting the ‘network’
in network effects
Network Properties
Networks are basically just a set of nodes connected by links
Source: Benedict Evans slide deck
21. Network Properties
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
22. Network Properties
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
23. Network Properties
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
24. Network Properties
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
40. Crowd Accelerated Innovation
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
62. Those who control the media control the culture
SOCIAL MEDIA
Social media is the first media network created by consumers
New universe of platforms, how we do business
65. THE NEW MARKET
People reject consumerism
Consumer-capitalism ate everything, and people are
becoming apathetic towards consumer mass-marketing
and production
People do not care for being targeted anymore and have
even stopped voting as a result of being targeted by
politics
Access trumps ownership
Jerry Michalski - Jumping Platforms
99. 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
100. There is actually value in not belonging to a group
Facebook killers?