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Social computing is a social structure in which technology puts power in communities, not institutions. As more individuals use the Internet to shop, work, and exchange ideas, a more egalitarian social structure is emerging. Individuals take cues from one another, rather than traditional sources of authority — like corporations, media outlets, political institutions or organized religions. Manifestations of social computing include:
- Social networks
- Peer-to-peer content distribution
- Open source software
- Blogs
- RSS
- Podcasting
- Consumer-to-consumer commerce
- Meet-ups
- Mash-ups
- Tagging
- Social search
- User-generated content
- Peer ratings
- Wikis
- Comments and trackbacks
- Widgets
- Voter-driven content
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Because power is shifting from institutions to communities, your company is at risk. Rather than ignore, deny, or fight this trend, your company must take steps to tap into the power of social computing as you develop new products, communicate with customers, and manage employees and business partners. You should care about it for two reasons:
- Radically different — and powerful — behaviors. Consumer-to-consumer activities like messaging, blogging, podcasting, social networks, and C2C eCommerce are growing rapidly — especially among young people. And new behaviors borne by these technologies are having real impact. Witness the rise of Linux, the overthrow of a Philippine leader spurred by SMS text messaging, or the success of the Howard Dean presidential campaign — all are illustrations of social computing at work and its profound impact on events and consumer culture.
- Lower levels of trust and brand loyalty. Most consumers do not trust any form of traditional media institution, and trust levels have been declining steadily over the last few years. The only information channel gaining in trust? The Internet. In addition, the number of consumers who say brand is more important than price has declined steadily — from 59% in 2000 to 52% in 2005. The bottom line: Earning customer loyalty from these powerful and less trusting consumers will be far more challenging in the years to come.
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