Web 2.0 and Enterprise 2.0

As technology has developed, so too has the web and it is expanding constantly. Currently, we are in the era of Web 2.0 and Social Media is harnessing collaboration. Social Media is the revolutionary transformation of media, going from a top-down broadcast model to one that allows the former audience to communicate with one another and take part in the content creation (Khan,2010).

Social media is fast becoming a new type of media for online social interaction. It is also a new communication medium platform which encourages individuals to become co-producers, co-creators and co-developers. In other words, social media allows people to shift flexibly between the role of audience and author. The term “Social Media” started with Rohit Bhargava of Ogilvy Public Relations in 2006. It is a collective term for online interactive “technologies and practices that people use to share opinions, insights, experiences, and perspectives” (Wikipedia, 2010). Currently, the social media platforms are combinations of online Web-based collaborative tools which allow individuals and organizations to instantly collaborate, to share information and to discuss ideas. As well, thwy allows people to form a highly accessible online collaborative community. In 2010, Kaplan and Haenlein defined six different social media types in their Business Horizons article called Users of the world, unite! The challenges and opportunities of Social Media and Social Netwroks is one of them.

In 1954, the term “Social Network” was first coined by J. A. Barnes in the book Human Relations – Class and Committees in a Norwegian Island Parish. According to Wikipedia (2010), a social networks is a social structure made up of individuals (or organizations) called “nodes,” which are tied (connected) by one or more specific types of interdependency, such as friendship, kinship, common interest, financial exchange, dislike, sexual relationships, or relationships of beliefs, knowledge or prestige. In other words, they allow people to build their online personal profile and connect with their friends to form their own social network. As well, they help to share content with others and to allow people to communicate more interactively. The typical examples of social networks are Facebook and MySpace (see Figure 1.0).

Social Networks

Figure 1.0 – Examples of Social Networks

Today, more and more companies are using social netowrks to communicate with their employees, consumers and business partners. Companies like Coca-Cola, Southwest Airlines, Pepsi, Intel, Dell and Ford are changing their corporate culture to support Social Media. For example, Intel is using Twitter to connect with their consumers – Michael Brito (a former social media manager at Intel) on Vimeo. This week i am going to look  into an organization that uses social networks. One of the best examples for an organization is Nike.

Nike Logo

Figure 2.0 – Nike

Nike (see Figure 2.0) is an American company and was founded as Ble Ribbon Sports in January 1964 by Bill Bowerman and Philip Knight. With more than 30,000 Nike employees across six continents in the world, Nike is the world’s leading sportswear and equipment supplier (Nike, 2010). Nike is using social networks to reach out to consumers and young audiences, as well as, to allow them to share their own sports story with others. In July 2006, Nike and Apple partnered up together to launch a new innovative Nike+iPod product, Nike Plus (see Video 1.0). It is also known as Nike + iPod which is a technology providing motivation to runners in 180 countries around the world (Nike, 2010). It also allows them to track their personal workout data, upload their running/walking information and connects ruuners around the world at a website, Nike+ (see Figure 3.0) where it’s aggregated with all the other data uploaded by all the other runners and walkers (Hames, 2008). Most importantly, Nike+ website is a virtual gathering place for the runners. They have collectively logged 459 million kilomiles. In other words, Nike creates an online community with social network applications (Nike Plus | Facebook, Nike Plus | Twitter) for the consumers to communicate, so they can be engaged and can be part of a community whether it is a digital community or virtual community or even if it is a physical community.

Nike Plus Statistics

  • Nike has more than 2 million Nike+ community members.
  • Nike+ community members have logged more than 459 million kilomiles. (September, 2010)
  • Since launch in July 2006 over 900,000 challenges (908,935 and counting) have been created, more than 1.7 million goals (1,732,653 and counting) have been created, and more than 140,000 training programs (141,819 and counting) have been launched on www.nikeplus.com (Nikebiz, 2010).

A video clip explains “what Nike+ is”

Video 1.0 – Nike+ Motivation

Figure 3.0 – Nike+ website

Benefits of Social Networking Site (Social Network)

Nike is one of the major organizations that truly enhance their bottom line through social networking (MarketingHackz.com, 2009). There are some key benefits for Nike to launch a strong corporate social networking site.

  • User Focus – Make it useful, fun, and informative for your customers and potential customers.  People do not want to participate in networks that simply advertise new products or offer specials.
  • Niche Building – Having a social network is nice, but creating one that is THE place to go for participants passionate in a particular niche is extremely important when it comes to making a network stand out.
  • Product Tie-Ins – In the end, a social network should make a splash on the bottom line.  People have shown that they are willing to spend money on a product if the benefits work both ways: the product must enhance the use of the network and the network must enhance the use of the product.
  • Event Tie-Ins – The Internet is loaded with ways to learn about and register for events.  By using the social network to improve the efficiency and communication of events, especially ones that are locally focused but involve multiple venues, the overall value of the network will be enhanced.
  • Set Community Goals – Nike+ is getting close to logging 100 Million Miles amongst their users.

From MarketingHackz.com.

In conclusion, Nike has successfully launched Nike+product with social networks. Nike+ uses digital technology (embedded a chip in a shoe) to enhance consumers performance and make sure that there is both a community angle of it and all the social attraction (MarketingHackz.com, 2009). More companies will use social networks like Facebook and Twitter as tools to provide ways for the organization to build brand loyalty, gather information and even create competitive advantages.

References:

Nike+ Shows Why Corporate Social Networking Is Important. 2009. MarketingHackz.com.

 Nike Partners with Seminal Hip Hop Group De La Soul to Release ARE YOU IN?: Nike+ Original Run Available Exclusively at the Nike iTunes Store Beginning April 28th. 2010. 2010. NikeBiz.

Social Media. 2010. Wikipedia.

Social Network. 2010. Wikipedia.

Kaplan, Andreas M. and Haenlein Michael. 2010. Users of the world, unite! The challenges and opportunities of Social Media, Business Horizons, Vol. 53, Issue 1, p. 59-68.

N. Khan. 2010. Internet Marketing.

Nike. 2010

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Comments on: "Business and Corporate Social Networks" (7)

  1. I agree with you about ‘user- focus’. I believe people need to develop thing for the user… Developer cant just develop something without any goal, they should always thing that the user is the person who will decide whether if something is good or not.. And the way that nike is doing about making social network useful,fun is really good because people just dont get the ad also enjoy being part of it…

    Nice post….Very well done…

    • Hi 16paola, thanks for your comments. I think web is shift from company-oriented to consumer-oriented. Consumers are playing important role in the online community. The consumer decides is one of the Nike’s 11 maxims. Consumers are changing the way product marketing and consumers are also creating competitive advantage for Nike. Therefore, i thnk that is way social networks helps Nike to gain the sports market and also build the brand loyalty.

  2. Intriguing blog post! I enjoy watching the Nike ad. There is no doubt social network could expand organisation’s business like Nike itself. Today, many organisations have started to realise the benefits of using social network tools such as Facebook and Twitter. Even Singapore Police Force is making good use of social media such as Facebook, Twitter and YouTube .

    According to Nielsen (2010), “Internet users in the U.S. spent 43 percent more time on social networking sites in June 2010 than they did during the same period in 2009. Meanwhile, Facebook and Twitter now account for almost 23 percent of all time spent online by U.S. users, up from 15.8 percent in June 2009”.

    Reference:

    Marshall, J. (2010). Social Site Use Up 43 Percent in a Year in U.S.. Retrieved on September 27, 2010.

    • Yes, Wan. I agree with you that more and more companies will use social networks tools and also value the social media. Each business has its own way to use social netowrk to promote its business and build brand loyalty. According to Social Network Watch (2010), 60% Of Web Users Visit Social Networks, Facebook was the runaway leader, with 31.9% (up from 4.4%) of votes cast and Twitter in a second (8.7%, up from 3.8%).

  3. What really amazes me is that, people who uses facebook, take advantage of this engine, enabling them to do advertisement. Constantly do i see pictures tagged online about new items online etc…. place order through leaving an email and ordering item.

    Best set of example that’s seen consistently are notifications for party events that is happening for the asian society around brisbane. By naming a couple thats most familiar with are Reiji and Klub Kandy. Every fortnightly they send out emails to all Locals around brisbane and most surprisingly users respond towards this feedback.

    Whats your say on this everyone!??

  4. Very informative blog! again, good research you have there. I also believe that social media will play an important part of our life, just like the interent. First it starts off with books and papers, then we have the internet, now we got social media!

    wow…..look at how things are evolving so rapidly. There are good and bad side of things and i guess this apply to everything. Having social media in corporation will become important as its beneficial for the business. I also believe that its existence will continue to grow in workplaces.

  5. Good post. I learn something totally new and challenging
    on sites I stumbleupon everyday. It’s always helpful to read through articles from other authors and use something from their sites.

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