The Emerging Value of Social Computing in Business Model Innovation

The value of Social Computing and its application in business has largely remained unclear until now. However, this chapter reveals that Social Computing principles may have important business value, as they can help lower transaction costs. This makes the Social Computing development here to stay, instead of another hype. This chapter describes Social Computing with nine technological and social principles, obtained by comparing both Internet and academic sources in this field, being Open Platform, Lightweight Models, Enabling Services, Intuitive Usability, Long Tail, Unbounded Collaboration, Collective Intelligence, Network Effects, and User Generated Content. The results show that Social Computing provides most support in those aspects of business where connections with the environment exist; the relations with partners and customers. This chapter will explain what Social Computing is, and how one can use it to increase business value.