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.

1. LECTURE L19
SOCIAL

2. Eric Schmidt
Le Web Conference 2011

6. before social media?

7. READ ONLY CULTURE

8. PASSIVE CONSUMERS

9. STANDARDISED, INDUSTRIALISED

10. before broadcasting?

11. SINGING THE SONGS OF THE DAY

12. CONVERSATION

13. Radio
Commercial
Radio TV
Magazines
BROADCASTING
1900 20001950
Videotapes
Commercial
TV
Newspapers
Films
LP
CD DVD

14. First email
sent
1971
First online
bulletin board
1979
World Wide
Web
1991
GeoCities
1994
Instant Messages IM
1996
BROADCASTING
1970 20101980 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

15. END OF
BROADCASTING

16. Clay Shirky
How social media can make history

18. “We’re all in this together”

19. And then we got LOL cats…

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 Putting the ‘network’
in network effects
Network Properties
Networks are basically just a set of nodes connected by links
Source: Benedict Evans slide deck

24. 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

25. 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

26. 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

27. 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

28. Network Properties
Common law for assessing the value of communication networks
Source: Benedict Evans slide deck

30. The Brat Pack Returns

31. Breakfast Club 1985

33. BRAT PACK
MASHUPS

35. YouTube's Origins as a Dating Site

36. The YouTube Effect
YouTube is changing the way we Innovate
The Liquid Network

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

39. CROWD
ACCELERATED
INNOVATION

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

41. THE TOOLS
OF PRODUCTION
IN THE HANDS
OF PEOPLE

42. WHAT HAPPENS
WHEN YOU
CONNECT PEOPLE?

43. Clay Shirky
How cognitive surplus will change the world

45. WHY DO
PEOPLE
SHARE?

46. WHY DO
PEOPLE
CONTRIBUTE?

47. WHY DOES
OPEN SOURCE
WORK?

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

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

54. WHY DO
PEOPLE
CONTRIBUTE?

55. Sharing is in our self interests

56. We do it for ourselves

57. It is in companies best interest
WHY DOES
OPEN SOURCE
WORK?

58. THE NEW
SHARING
ECONOMY

59. HIERARCHAL NETWORK
20th Century 21st Century

63. http://www.flickr.com/photos/piet_musterd/
Crowdsourcing

65. Source: Picutre from IMDb, Film Juno

66. Source: Picture from Amazon.

68. 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

69. PLATFORMS
Software SellerBuyer
Software brings the coordination cost to zero
Think Uber, Airbnb etc

70. PLATFORMS
Software Consumer
Producer
Consumer
Producer
Software brings the coordination cost to zero

71. 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

72. Source: http://www.flickr.com/photos/webrevenu/

74. Source: Facebook

77. Network effect

78. 1.71 billion
people

83. January 15, 2009, US Airways Flight 1549

88. Tahrir Square, 2010

89. Tehran uprising, 2009

92. Julia Klöckner, of chancellor Angela Merkel’s CDU, told
her Twitter “followers” on that afternoon: “People,
you can watch the football in peace. The vote was a
success.”

93. “four more years”
In three hours, the message
had been re-tweeted about
455,000 times
770.000 retweets

94. 3 million retweets

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

102. Launched March 2010
Pintrest
Users: 176 million, active 150 million
84% are women
75% of usage is mobile, 93% of users shopped online

104. Launched September 2011
Snapchat
Users: 200+ million
First popular with users age 13-23
7 billion videos per day

105. 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

106. There is actually value in not belonging to a group
Facebook killers?

107. NEXT