Unit 5.3
Fundamentals of Social Computing in Business
Learning Objectives
By the end of this session, you will be able to:
- ✅ Define Social Computing in a business context.
- ✅ Explain the shift from a one-way to a two-way conversational model.
- ✅ Describe key concepts like social commerce, social marketing, and crowdsourcing.
- ✅ Identify the main business benefits of adopting social computing.
What is Social Computing in Business?
Social Computing (or Enterprise Social) is the use of social tools and philosophies to support and enhance business activities with both customers and employees.
It's a strategic shift in communication and collaboration.
🎯 The core idea: Move from broadcasting to engaging.
The Shift: One-Way vs. Two-Way Communication
📢 Traditional Model (One-Way)
- Business broadcasts messages.
- Customers are a passive audience.
- Internal comms are top-down (management ➝ employees).
- Example: TV ads, press releases.
💬 Social Computing Model (Two-Way)
- Business engages in a dialogue.
- Customers provide public feedback and share experiences.
- Internal comms are collaborative across departments.
- Example: Replying to tweets, Instagram Q&A sessions.
Quiz: One-Way or Two-Way?
Classify each communication example.
Key Concepts in Social Business
Social computing has given rise to several powerful business strategies:
- Social Commerce
- Social Marketing
- Crowdsourcing
- Enterprise Social Networks (ESNs)
1. Social Commerce 🛒
Using social media and online interactions to facilitate the buying and selling of products and services.
Examples:
- Shoppable posts and stories on Instagram.
- Customer reviews and ratings on e-commerce sites.
- "Buy" buttons directly on Facebook or Pinterest.
🇳🇵 Nepal Context: Many small businesses in Nepal use Instagram and Facebook pages as their primary storefront, handling orders and customer queries directly through DMs and comments.
Spot the Social Commerce!
Click on every scenario that is an example of Social Commerce. Select all that apply, then check your answers.
2. Social Marketing 📈
Using social media platforms to build a community around a brand by creating valuable and shareable content.
The goal is community engagement, not just direct advertising.
Examples:
- Viral video campaigns on YouTube or TikTok.
- Engaging with customers on Twitter using brand personality.
- Partnering with influencers to showcase products.
🧴 Real Case: Old Spice Talks Back (2010)
- February 2010: Old Spice's TV and online ad "The Man Your Man Could Smell Like" went viral on YouTube.
- July 2010, the "Response" campaign: the same actor recorded nearly 200 short personalised videos in about two days. Each one replied to a real comment or tweet from fans and celebrities.
- Why it worked: the brand listened and replied to individuals, in public and with humour, instead of only broadcasting.
This is social marketing: building a community conversation, not just placing an advert.
🎬 Watch: The Old Spice Response Campaign
3. Crowdsourcing 🧠
Outsourcing a task to a large, undefined group of people (the "crowd") through an open call, usually online.
Leverages the collective intelligence of the public.
Classic Example: LEGO Ideas, where fans submit and vote on new set designs.
Modern Example: Waze, which uses real-time traffic data from its community of drivers to find the best routes.
Crowdsourcing Simulator
You are a product manager collecting ideas. Click each crowd member to gather their contribution. Reach 6 ideas to launch your product!
👕 Real Case: Threadless — The Crowd Designs and Decides
- Since 2000 (Chicago, USA): artists anywhere submit T-shirt designs online.
- The community votes on the designs. The favourites are printed and sold, and the designers are paid.
- Less risk: the company prints designs it already knows people like.
- Built-in marketing: designers share their entries to win votes, which brings in new customers.
Crowdsourcing can handle creation (designs), selection (votes) and promotion (sharing) all at once.
Printed T-Shirts at a Market
🎬 Watch: Threadless, Designed by the Crowd
4. Enterprise Social Networks (ESNs) 🏢
A private, internal social network used within a single organization to improve collaboration and communication.
Goal: Break down silos!
- Connect employees across departments and locations.
- Make it easier to find information and experts.
- Improve knowledge sharing and company culture.
Examples: Slack, Microsoft Viva Engage (formerly Yammer); Workplace from Meta was shut down.
ESN: Break the Silos!
Each department is isolated in its own silo. Click Connect to ESN on each department to break the silo and reveal the collaboration benefit.
🎬 Watch: What an ESN Is
⚡ Business Benefits of Social Computing
- Increased Brand Awareness & Loyalty: Build a strong community.
- Improved Customer Service: Respond to issues publicly and quickly.
- Enhanced Employee Engagement: ESNs foster a connected workforce.
- Faster Innovation: Use social listening and crowdsourcing for new ideas.
Match the Benefit!
Read each business scenario. Click the correct benefit it demonstrates. Score: 0/4
🧪 Quick Activity: Which Social Business Concept?
Social commerce, social marketing, crowdsourcing, or an ESN?
- A city asks residents to report potholes with photos in an app. → Crowdsourcing
- A bakery posts daily behind-the-scenes reels to grow a loyal following. → Social marketing
- A bank's branch staff share fraud warnings with each other in an internal channel. → ESN
- A clothing page lets followers buy a dress straight from a live video. → Social commerce
Practical Application in Nepal 🇳🇵
🔍 Case Study: Digital Wallet Customer Service
Companies like eSewa and Khalti actively use their Facebook and Twitter pages not just for marketing, but as primary customer support channels.
- Users post transaction issues or queries publicly on their page.
- The company responds quickly, often directing the user to a DM for sensitive info.
- Benefit: This public two-way conversation builds trust and shows other potential customers that they are responsive.
🏔️ Worked Example: A Trekking Company Goes Social
Illustrative: a hypothetical trekking agency in Thamel. This answers Exam Long Q2.
| Concept | What the company does | Benefit |
|---|---|---|
| Social commerce | Treks are booked and paid for through a link in its Instagram profile | Bookings straight from discovery |
| Social marketing | Guides post live trail updates and short clips of sunrise at viewpoints | Authentic content that clients share |
| Crowdsourcing | Past trekkers vote on next season's new route | Launches routes people already want |
| ESN | Guides on different trails share weather and trail-closure alerts in one internal channel | Safer, faster decisions |
Exam tip: name the concept, give the example, then state the benefit, as in this table.
⚠️ The Other Side: Risks of Social Business
External
- Public complaints spread fast
- Fake reviews and misinformation
- Campaigns can be hijacked or mocked
- Crowdsourced ideas may be poor or impractical
Internal
- Confidential data leaked on an ESN or social media
- Information overload and distraction
- Low adoption: staff go back to email
- Time and cost of moderating communities
Manage the risks with a social media policy, moderation, staff training and a crisis-response plan.
Key Takeaways
Remember these core principles:
- Conversation over Broadcast: Social business is about two-way dialogue.
- Key Tools: Social commerce, marketing, crowdsourcing, and ESNs are the building blocks.
- Major Benefits: Drives customer loyalty, improves service, enhances collaboration, and accelerates innovation.
- Listen First: The most valuable insights come from listening to your customers and the crowd.
Exam Practice 📝
Short answer
- What is social computing?
- What is meant by the shift to a conversational model?
- Give three business benefits of social computing.
Exam Practice 📝 (continued)
Long answer
- Explain how businesses apply social computing, and discuss the benefits and risks.
- Discuss the key concepts of social business with examples from a Nepali organization.
Revise the answers in the full note.
Image & Video Credits
Images
- Drying up printed T-shirts: Rwebogora, CC BY-SA 4.0, via Wikimedia Commons
- Customer service desk, IKEA Torp, Uddevalla: W.carter, CC0, via Wikimedia Commons
Videos (YouTube)
- MASSIVE, "Old Spice - The Response Campaign" (3–60 s)
- AIRSANG, "How Threadless Built a $15M T-Shirt Empire Through User Creativity" (0–64 s)
- Deloitte CIO Journal, "TMT Predictions 2013: Enterprise Social Networks" (0–63 s)
Thank You!
Any questions?
Next Up: Unit 5.4 - Social Shopping, Marketing, and Customer Relationship Management