BUSINESS MANAGEMENT &

DIGITAL APPLICATIONS

WEB EVOLUTION

Dr. Chiara Ancillai

2025/2026
 LEARNING OBJECTIVES
First lectures will be devoted to give an overview of the main DTs that have shaped and are
shaping the society (the context in which we live as individuals and companies work) with a
twofold objective:

• Learning the evolution of digital technologies: to know which are these technologies and how
they evolved over time. Some of them have been around for a while, were born with certain
features and for certain purposes but then changed over time while others are more recent and
are evolving at a fast peace and will probably have a greatest impact in the future

• Understanding how digital technology affects business and how to deploy digital tools in
business processes and activities (where they can be deployed and in which areas they are
more impactful). This is pivotal since we need to know the consequences of the fast
technoloogical development for business and the main transformation they’ve entailed so that
we can integrate such technologies in the strategy (if the context change, companies need to
change their strategy to remain competitive)

COMPETITIVE ADVANTAGE?
LEARNING OBJECTIVES

CHAPTER 14. USING TECHNOLOGY TO MANAGE

INFORMATION

Slightly different content. You will find more on the

slides
 DIGITAL TECHNOLOGIES

We can identify two broad categories of DTs that are commonly linked to the
Digital Transformation:
• SMAC technologies are linked to the initial development and affect how
businesses operate in the digital economy
• DARQ technologies; a new generation of technologies which is likely to bring
Digitial Transformation even beyond the current level (The emerging forces
that are now redefining the boundaries of what is possible)
 Accelerated the digital transformation: impressive impact
SMAC TECHNOLOGIES on how we live and work. Enabled new Business Models
(e.g. platforms), thus affecting different industries

S M A C

SOCIAL CLOUD
MOBILE ANALYTICS
A broad range of Thanks to Internet
Main trend of the last
technologies and tools We refer to advanced connectivity allow for:
decade. Moved from cellular
which allow content sharing techniques to analyze big
phone to smartphone that • On-demand computing
among users. Since they can data and transform raw data
can allow to: resources (store, exchange
autonomously create and into actionalble insights:
• Access to information and and analysis of data)
share content:
services anywhere • Data-driven decision • Increased flexibility for
• Build communities and • Mobile-first consumer base making businesses (no upfront
networks online • Expand business presence in • Increased efficiency, costs)
• New communication customers’ daily life (e.g. reduced costs • Mass access to other
methods (interactivity) personalization, mobile • Optimized products technologies (the
Source: IBM commerce,) and services supporting infrastructure)
 Increased capability of storing, exchanging and analyzing
information has paved the way for a new generation of DTs.
DARQ TECHNOLOGIES Businesses have the capability to build immersive and intelligent
worlds. Strategic horizon: still witnessing their impact on industries

D A R Q

DISTRIBUTED LEADGER ARTIFICIAL QUANTUM

TECHNOLOGIES INTELLINGECE REALITY COMPUTING
Solving the problem of data Technologies that can Extended reality (AR, VR, 3D The next generation of
centralization in the hands of few perform cognitive activities environments) which blend the computing based on the
big corps by alllowing similar to humans digital and physical world to principles of quantum
• Transaction without • Automate business mechanisms to process info
intermediaries • Create new, immersive
function • Computations that classical
• Large-scale collaboration and environments and hand-
• Scan unprecedented computers cannot achieve
transaction among strangers free informationa access
amount of data • Discover new materials and
• Self-executing smart • Impact on training,
• Make the benefits of transform global cybersecurity
contracts remote collaboration and
analytics more available Source: IBM
experiential mktg
 DIGITAL TECHNOLOGIES

While SMAC technologies built the digital foundations of modern companies, DARQ
technologies push innovation further — creating intelligent, decentralized, and immersive
systems.
These technologies will not only transform industries but also reshape the skills, strategies, and
ethical frameworks required of future managers.
In essence, DARQ represents the frontier of the next digital era — where data, intelligence, and
computation converge to redefine how value is created.
DIGITAL REVOLUTION?
 INDUSTRIAL REVOLUTIONS
• Industrial Revolutions (IRs) mark a significant
technological and scientific development that has
occurred in the past or is about to occur in the
future

• The 1st IR began in the late 18th century and was

mainly characterized by the invention of
mechanical systems, e.g. steam locomotives and
weaving looms thanks to the biggest technological
innovation of this era (i.e. steam power).
Mechanized production through steam power:
production shifted from hand methods to the use
of machines (greatest impact in the textile industry,
the first to use such modern production method)

• The 2nd IR began in the late 19th century and was

marked by electrification and the novel installation
of assembly lines to implement mass production
Source: Speringer and Schnelzer, 2019
chains and division of labor
DIGITAL REVOLUTION
3 rdIndustrial Revolution: started in the mid-late 20th century and was
marked by DIGITALIZATION:
the shift from mechanical, analog, and electronic technology to DIGITAL
technology. Started with DIGITIZATION

The process of encoding analog

information into a digital
format (i.e. into zeros and ones –
DIGITIZATION
bits) such that computers can
store, process,
and transmit such information

It takes an analog process and changes it into a

digital format without any different-in-kind
changes to the process itself
 The most significant event in information
DIGITAL REVOLUTION dissemination since Gutenberg’s printing press and
marks a bigger shift in human communication

INFORMATION
DIGITIZATION REVOLUTION

Before Digitization, the info only existed in the

physical world (Book – we needed the physical
copy to read). Thanks to Digitization the info is
no longer dependent on the context of origin

Different information, previously conveyed by different means of

communication, can now be easily stored, copied, and transferred with the
same means
 Clarify three terms that are often used interchangeably —
digitization, digitalization, and digital transformation — but
DIGITAL REVOLUTION which actually describe different stages of how technology
impacts organizations and society

Digitization is the process of converting analog content (documents, sounds, images) into digital format (e.g. scanning a
paper document into a PDF file, converting music from vinyl record, taking a physical photo and storing as a JPEG) .
However, this process does not in itself imply a change in organizational or business models. It is a technological
operation, not yet strategic (i.e. data conversion). Digitization doesn’t change how a business operates; it only changes the
format of information.

Example: Scanning paper documents or electronic transmission of invoices are cases of digitization

Digitalization refers to the use of digital technologies to change or improve business processes.
It implies an operational transformation, because it changes the way companies communicate and make decisions. Here,
technology is not just converting data — it’s improving efficiency and productivity.
Processes become faster, cheaper, and more accurate.

Example: A company that integrates a CRM platform to manage the relationship with customers digitalizes the business
process, achieving greater customization and traceability.
 DIGITAL REVOLUTION
Digital transformation is a strategic and cultural change in which an organization fundamentally rethinks its business model
and value creation through digital technologies. This is not just about tools or processes — it’s about innovation and strategic
renewal.
It affects people, culture, and strategy, not only technology.

Example: Netflix transforming from DVD rentals to a global streaming platform. Tesla integrating software, data, and
connectivity to redefine the automotive industry. Banks offering mobile-first, personalized, AI-driven services.

Concept Focus Main Action Impact Level

Digitization Data Convert analog → digital Technical
Use digital tech to improve
Digitalization Processes Operational
workflows
Redesign business and value
Digital Transformation Strategy & Culture Strategic
creation

You can think of these as layers of digital maturity: Digitization → Digitalization → Digital Transformation
Each step builds upon the previous one. Digitization gives you the data, digitalization gives you efficiency,
and digital transformation gives you innovation and competitive advantage.
INTERNET
 INTERNET

ARPANET pioneering project (’60s) was established by the Advanced Research Projects
Agency (ARPA) of the United States Department of Defense to build a communication
network for military purposes (linking together different universities)

Internet (Interconnected Network) is a global telematic network through which the

nodes (hosts) can exchange information regardless of the technological platform used

A physical infrastructure of independent, yet interconnected (via cable or wireless) networks, that
uses the Transmission Control Protocol/Internet Protocol (TCP/IP) to exchange digital content
 GENERAL PURPOSE TECHNOLOGY
A set of technologies that can be used in several
economic activities and whose introduction
entails a paradigm shift in society through their
impact on pre-existing economic and social
structures (e.g. steam engine, electricity, etc.)

Three characteristics:
• Pervasiveness: widespread worldwide

• Incremental innovations which, over time,

improve their quality with a consequent
reduction in their price

• Foster innovation in different application

sectors (e.g. Internet is used for information
dissemination, as a transaction platform, etc.)
 INTERNET AS A GPT
GPTs stand out for their ability to generate complementary innovations.

The Internet, like GPT, does not create value on its own, but acts as an enabling infrastructure for new
organizational models and forms of competition (e-commerce, sharing economy, digital platforms) and new
modes of production, communication and consumption.

Economic implications:
• Economies of network and scale
The more users use the Internet, the more its value grows: this is the network effect.
At the same time, the marginal costs of disseminating digital content tend to zero → this generates enormous economies
of scale (E.g. Producing a song is expensive, but once it is created, Spotify can stream it to millions of users at almost no
additional cost. The more users listen, the lower the average cost per user)
• Increased productivity in information industries
Companies that base their activity on information (media, finance, logistics, health, education) benefit from an increase in
efficiency thanks to data sharing and analysis (e.g. online banking or telemedicine systems reduce transaction times and
costs)
• Shifting competitive advantage
In digital economies, competitive advantage no longer derives from physical resources (capital, plants), but from intangible
resources such as information, organizational knowledge, brand reputation, ability to innovate quickly (e.g. Google’s
strength lies in data and algorithms, not in physical infrastructure)
 HOW THE INTERNET INFLUENCES INDUSTRY STRUCTURE
Here, the model has been adapted to illustrate both positive
Porter’s 5 Forces model is a classic framework used to analyze the (+) and negative (–) influences of the Internet on each force
competitive environment of an industry and assess its overall attractiveness.
It helps companies understand the factors affecting their profitability and
develop strategies to increase their competitive advantage.

1. Threat of New Entrants: This force examines how easy or difficult it is for
new competitors to enter the market. High barriers to entry, such as
high startup costs or strong brand loyalty, reduce this threat, benefiting
established companies.
2. Bargaining Power of Suppliers: This force looks at the influence
suppliers have on a company. When there are few suppliers, or they
offer unique products, they have more power to drive up prices, which
can impact profits.
3. Bargaining Power of Buyers: This force focuses on the influence
customers have on the market. If customers have many options, they
can demand lower prices or higher quality, increasing competition
among companies.
4. Threat of Substitute Products or Services: This examines the likelihood
of customers finding an alternative way to fulfill their needs. When
substitutes are readily available, it can decrease industry profitability, as
companies may have to lower prices to stay competitive.
5. Industry Rivalry: This force analyzes the intensity of competition within
the industry. High rivalry, often found in industries with many
competitors or slow growth, can lead to price wars and reduced
profitability.
 RELATIONSHIPS WITH THE FIVE FORCES
Because the strength of each of the five forces varies considerably from industry to industry, it would be a mistake to draw
general conclusions about the impact of the Internet on long-term industry profitability; each industry is affected in
different ways.

An examination of a wide range of industries in which the Internet is playing a role reveals some clear trends. Some are
positive. For example, the Internet tends to dampen the bargaining power of channels by providing companies with new,
more direct avenues to customers. The Internet can also boost an industry’s efficiency in various ways, expanding the
overall size of the market by improving its position relative to traditional substitutes.

But most are negative:

• Rivalry: Internet often increases rivalry (easier comparison, lower switching costs, faster imitation) thus pushing
competition toward price.
• Entry barriers: Internet lowers entry barriers (less need for physical assets, less differentiation) so new entrants can
more easily enter.
• Substitutes: The Internet can expand the market but also creates new substitutes; more choices means more pressure.
• Buyer power: The Internet gives buyers more information and options, reducing switching costs and increasing their
bargaining power.
• Supplier power: Suppliers too can reach downstream more directly, reducing intermediaries and increasing competitive
pressure.
 RELATIONSHIPS WITH THE FIVE FORCES
Many companies mistakenly view the Internet and other technologies as a panacea for competitive advantage. Instead of
leveraging the Internet to reinforce their unique value propositions, they often use it to mimic competitors, thereby
eroding industry profitability. For instance, numerous online retailers have adopted similar pricing strategies, leading to
a "race to the bottom" where differentiation diminishes.

Porter highlights that the Internet can alter the competitive forces within an industry. While it can lower barriers to
entry and increase the bargaining power of buyers, it also enables companies to reach new markets and create
efficiencies. The net effect on profitability depends on how companies respond strategically.

Example: The rise of streaming services like Netflix disrupted traditional cable television by offering on-demand content
at lower prices. However, Netflix's investment in original content and global expansion has allowed it to maintain a
competitive edge.

In conclusion, Porter's article serves as a timely reminder that technology, including the Internet, should be viewed as a
tool to support strategic goals, not as a substitute for them. Companies that succeed in the digital age are those that
maintain a clear strategic focus and use technology to enhance their unique value propositions.
Porter’s central point is that the Internet does not nullify the Five Forces; it reshapes them. Firms must strategically
analyze how each force is affected in their industry and leverage technology to reinforce unique positioning rather than
chase every new online trend.
WEB EVOLUTION
 ARE INTERNET AND WEB THE SAME?

World Wide Web is one of the services Internet offers: WWW browser software (e.g.
Edge, Mozzilla, Chrome, Safari) allow the device to become a web client of the Internet
client-server network
WWW is a web of contents (texts, images, sounds, and animations)
located across the various nodes of the Internet, and connected to
each other
Key characteristic of WWW are hyperlinks: docs display
easily identifiable words (blue-colored) that contain a link to
other documents to be accessed automatically

Each user can build his/her reading paths according to specific

interests and curiosity (open information field)
 WEB 1.0: KEY FEATURES

Document abstraction from the physical

network

Static documents and read-only data such

as corporate website (basic fonts, grey
buttons and blue hyperlinks)

Mainly text: few images and videos even

to a lesser extent

Users can only enjoy content provided by companies and

web developers (knowledgeable of HTLM)

Browsing only (no comments and interactions)

 Web 2.0: key features

User-Generated → Firms lose control over the

Content content (e.g. product
reviews)
Web 2.0
Easy content → Firms lose control over the
sharing channel used (opportunity to
convey original messages
through multiple channels and
A term that was first used in 2004 to formats; challenge of
describe a new way in which software integrating channels and info)
developers and end-users started to Hyperlinks and
utilize the WWW; that is, as a platform → Peer-to-peer content is
interaction among
whereby content and applications are no more trustworthy and can
users
longer created and published by go viral
individuals, but instead are continuously
modified by all users in a participatory
Tagging/Hashtag → Folksonomy
and collaborative fashion Source: Kaplan and Haenlein (2010)
 NEW COMMUNICATION MODELS
ONE-TO-MANY MANY-TO-MANY
ONE-TO-ONE

Customer/customer communication
Conveying a promotional message to a is added to company/customer
large audience via mass media (press, The firm can reach out to customers communication. Today consumers
TV, radio): standardized and one-way in a direct and personalized way enjoy content published by other
communication, in which the company through numerous touchpoints users, which is often considered
pushes the content to a large audience thanks to a simultaneous way of more trustworthy and interesting
communicating inherent in new
digital technologies
 Me thinking about
something random

A TRUE STORY
Amazon ADV of the
same thing
 NEW COMMUNICATION MODELS

These examples captures one of the most significant transformations in digital communication brought about by the evolution
from Web 1.0 to Web 2.0 — the rise of personalized advertising and data-driven marketing.

In Web 1.0, communication was largely one-way: companies broadcasted messages to a mass audience, much like traditional
media. Users were passive receivers of information. However, as the Web evolved into its 2.0 phase, interaction, participation,
and data collection became central.

These examples illustrate a phenomenon most of us have experienced — the feeling that online platforms, particularly Amazon
and social media, seem to ‘read our minds’. What’s actually happening is a sophisticated system of algorithmic tracking and
behavioral targeting. Our searches, clicks, and even the time we spend thinking about a product are translated into digital
footprints (e.g. personal details, online transactions and purchases, social media content, browsing patterns, data generated by
smart objects). These footprints fuel personalized advertising systems that deliver ads seemingly aligned with our thoughts.

From a business management perspective, this represents the shift from mass marketing to micro-targeting, where companies
no longer speak to a generalized audience but engage individuals directly. It also raises questions about privacy, consumer
autonomy, and the ethics of data use — key issues that modern managers and marketers must navigate.
One-to-one communication: Conversational Commerce
Recognizing the need to adapt to changing consumer preferences, skincare brand
Dermalogica started promoting its products in one-on-one consultations directly in
WhatsApp:

• Dermalogica teamed up with Charles, a Meta Business Partner that specializes in

building conversational commerce solutions on WhatsApp Business
• Interested shoppers can choose to engage via text or voice message and request a
personal skincare consultation with Dermalogica’s trained cosmetician in WhatsApp
• The consultant meets with customers in real time via text message on WhatsApp to
give skincare advice, answer questions and help guide each individual to the
Dermalogica products that are right for them. During the consultation, customers can
send photos and videos to the consultant as needed
• Dermalogica continues to engage with customers on WhatsApp to provide support,
tips, recommendations and more. Dermalogica also sends out regular campaigns to
customers who have opted to receive messages in WhatsApp, typically once a month.
People who reply to these messages receive a direct message from the Community
Manager
• WhatsApp analytics to track campaign performance and revenue, and gain insights
into customer behaviors and preferences that can help optimize future marketing
effort
Higher revenue, open rates and click-through rates than from identical campaigns in email
 BRAINSTORMING SESSION

“Would you trust skincare advice from WhatsApp?”

“What makes the experience valuable vs. frustrating?”

 BRAINSTORMING SESSION
1. Trust factors – Why users might trust WhatsApp consultations
• Human touch: real-time interaction with a trained consultant builds credibility
• Personalization: tailored advice based on individual needs increases perceived expertise
• Brand recognition: the presence of a trusted brand (Dermalogica) on a familiar platform adds legitimacy
• Transparency: possibility to ask questions, see product information, and receive follow-up messages

2. Potential frustrations or barriers

• Privacy concerns: sharing personal data or skin photos through a messaging app may feel unsafe
• Authenticity doubts: uncertainty about whether the consultant is real or automated
• Information overload: too many promotional messages can reduce engagement
• Response time: delays or generic replies can quickly erode trust

3. What makes the experience valuable

• Fast, convenient, and personalized communication
• Empathy and real understanding of customer needs
• Seamless integration between advice and purchase process
• Feeling of being “seen” and cared for as an individual
 SOCIAL MEDIA
The best examples of Web 2.0: Meta family, LinkedIn, and TikTok are among the largest
Web 2.0 businesses, where ordinary people create the content

1999 2004 2010

2002 2006 2016

 SOCIAL MEDIA: DEFINITION

A group of Internet-based applications that build on the ideological and

technological foundations of Web 2.0, and that allow the creation and
exchange of User Generated Content
Kaplan and Haenlein (2010)

A technology-centric—but not entirely technological—ecosystem in which a

diverse and complex set of behaviors, interactions, and exchanges involving
various kinds of interconnected actors (individuals and firms, organizations,
and institutions) can occur
Appel et al. (2020)
 SOCIAL MEDIA: DEFINITION

TECHNOLOGY HOW TO USE

A set of digital technologies: Users and organizations use social media to

applications or websites create, exchange content and interact

New features and services (e.g. FB marketplace, New ways to use social media (socialization,
WeChat payment system) and new social media information, inspiration, etc.)

INTERACTIVITY

Unlike traditional media (e.g. TV, press, radio), social media is characterized
by a two-way communication
SOCIAL MEDIA ACTIVITY BY PLATFORM

Users spend time on multiple platforms

Users explicitly use different social media

for different purposes and to get different
types of value

Adding competitor capabilities to one

platform does not change the perception
people have spent years forming of what a
specific social media is meant for. That’s
why Instagram Reels is struggling to
compete with TikTok, even though it is the
same thing
 WHY SOCIAL MEDIA AS A MARKETING CHANNEL?
Social media potentially plays a key role in every phase of the purchasing process

1
PRE-PURCHASE
2
3
• Discovery touchpoint PURCHASE
• Touchpoint to search POST-PURCHASE
• Download
for information and
evaluate alternatives
discounts and • Word-of-mouth
coupons (reviews/sharing)

• Purchase • Customer service

• Post-purchase relationship
 INFORMATIONAL
Provides data, news or updates that are useful to keep the audience updated
on important issues (e.g. milestones, industry news, previews/storytelling of
events, product/service images, experiences by staff or customers, behind
the scenes, etc.)
 EDUCATIONAL CONTENT
To teach and educate the audience on a specific topic
(es. tutorials, how to, Q&A, case studies, tips&tricks,
infographics, etc.)
 TRENDING follow trends and viral topics using
temporary relevance to attract attention and
EMOTIONAL designed to evoke strong INTERACTIVE to stimulate the active
increase visibility
emotions, such as joy, nostalgia, surprise or participation of users and create dialogue and
(e.g. trending news/hot topics, seasonal or
excitement direct involvement (e.g. surveys, contests, holiday content, etc.)
(e.g. images, videos, quotes) giveaways, crowdsourcing, quizzes, etc.)
REAL TIME MARKETING
Marketing communication technique that leverages the company’s ability
to exploit or respond promptly to external events and stimuli
 HOW TO USE SOCIAL MEDIA AS A MARKETING CHANNEL?
Social media marketing does not mean posting content by
chance or showcasing, having fun, collecting lots of likes and Posting content
Counting follower, likes,
interactions Answer to comments, reactions
comments and
messages
Social media must be managed as business resources, which
needs a strategic approach

Analyze the brand

Work on the
Analyze social media
competitors calendar

Crafting buyer Analyzing

personas performance
Manage technical
issues
Reporting based on
Social media KPIs
advertising
Ongoing training
 THE CHALLENGE OF SOCIAL MEDIA MARKETING
PERFORMANCE MEASUREMENT
Today, almost every company invests heavily in social media marketing, yet many managers remain unsure whether these
investments actually pay off. Unlike traditional advertising (TV, radio, print), social media is:
• Interactive: users co-create and comment on content;
• Dynamic: trends and algorithms change constantly;
• Data-rich but confusing: every post produces thousands of data—likes, shares, comments, sentiment—but not all of them
indicate real business value.
Traditional performance measurement tools were not designed for this context.
As a result, firms often “measure what is easy to measure” rather than “what truly matters.”

Phase Meaning Key Activities

• Define and prioritize social media
objectives.
• Identify proper KPIs.
Designing and implementing SMM Key
1. Development • Collect and analyze data.
Performance Indicators (KPIs)
• Build dashboards and reports.
• Periodically review KPIs.

Interpret data, make operational or

Applying those KPIs in decision-making and
2. Use strategic decisions, and learn from
control processes.
results.
 THE CHALLENGE OF SOCIAL MEDIA MARKETING PERFORMANCE MEASUREMENT
SMM Performance Measurement Process

Development Use

Use of indicators
Building for decision-
Identifying Periodic
Data collection information making and
KPIs revision of KPIs
systems control processes

Feedforward loop

• Managing
• Defining and structured and
• Metrics
prioritizing SM unstructured SM
overload
goals data • Lack of trust in
• Integration of
• Conflicting • Lack SM KPIs
Challenges SM data with
goals and of knowledge regar n.a. • Lack of
traditional
interests ding relevant competencies
systems
among organiz metrics in interpreting
• Customization
ational actors • Focusing KPIs
of dashboards
about what to on surface-level
and reports
measure and quantitative data
how to define provided by SM
KPIs platform-based
statistics

• Developing new competencies

Solutions • Hybridization among departments
• Involving external consultants and agencies

Source: Ascani and Ancillai, 2025

 THE CHALLENGE OF SOCIAL MEDIA MARKETING
PERFORMANCE MEASUREMENT
Step 1: Development of Social Media KPIs
(a) Identifying and Defining KPIs
Challenge: Many firms do not have clear social media objectives.
They confuse “visibility” with “success.” For example, getting many likes does not necessarily increase sales or
customer loyalty.
Organizational tension: Marketing, IT, and finance departments have different views. Marketers focus on engagement;
accountants want financial impact.

(b) Data Collection and Analysis

Challenge: Social media data are massive, diverse, and partly unstructured (text, images, emotions).
Companies often rely only on simple, platform-provided metrics.

(c) Reporting and Dashboards

Challenge: Too many metrics create “information overload.”
Dashboards often contain numbers that managers do not understand or trust.
Integrating social media data with CRM or sales data is also difficult.
 THE CHALLENGE OF SOCIAL MEDIA MARKETING
PERFORMANCE MEASUREMENT
Step 2: Using Social Media KPIs
Challenges:
(a) The Problem of Trust
Managers often distrust social media indicators.
Data may not represent all customers, or may depend on platform algorithms that companies cannot control.
Consequently, managers use these KPIs only to confirm existing decisions, not to challenge them.
(b) The Problem of Skills
Many marketers can collect data but lack analytical and business interpretation skills. They cannot translate “engagement
rate” into financial outcomes or strategic insights.

Possible Solutions to technical and organizational challenges

Develop new skills by training people who combine marketing, analytics, and accounting skills who can connect marketing
insights with accounting logic.
Encourage hybritization between marketing, finance, and IT teams when defining KIPs. A balanced set of indicators should
include both engagement (comments, shares) and conversion or ROI and combine quantitative (clicks, visits) and qualitative
(sentiment, tone) analyses (e.g. using tools such as text mining or AI). Create hybrid indicators—for example, linking positive
sentiment to customer satisfaction scores or sales trends. Simplify dashboards to a few, meaningful metrics and ensure they are
connected to strategic goals. Customize dashboards for different managerial levels.
Use external consultants when necessary to design dashboards and train staff.
 THE CHALLENGE OF SOCIAL MEDIA MARKETING
PERFORMANCE MEASUREMENT: KEY TAKEAWAYS

Measuring engagement is not

enough.
Performance measurement on social
Social media metrics must be
media is not just about technology or
connected to broader business
numbers —
outcomes (brand value, customer
it’s about how different people and
loyalty, sales)
departments work together to understand
what “success” means and how to
measure it (organizational alignment).
Marketing and accounting must “speak the
same language” This collaboration helps
companies move from data collection to Data quality and interpretation
real managerial action. matter.
The challenge is not the lack of
data, but the ability to turn it into
insight that supports decisions.
LIMITS OF WEB 2.0

DATA CENTRALIZATION
Most of the data
generated online is
collected by big tech
companies (e.g. Google,
Amazon, Netflix)
 WEB 3.0: UNPRECEDENTED LEVEL OF DECENTRALIZATION
AND SECURITY
Web 3.0 represents the next evolutionary step of the Internet — one
that moves beyond centralization toward distributed systems of
value, trust, and control.
Whereas Web 2.0 relied on a few dominant intermediaries (the so-
called Big Tech) to host, manage, and monetize user data, Web 3.0
envisions a digital ecosystem where users become co-owners and
active participants in both content and infrastructure.
This paradigm shift redefines the Internet as a peer-to-peer network
of collaboration, not merely a platform for communication or
commerce.

This is made possible to blockchain which is a database that exists on

Web 3.0
many servers at the same time and removes the need for a central
authority
 BLOCKCHAIN
A shared, immutable ledger publicly distributed that facilitates the process of recording transactions
and tracking assets in a business network. An asset can be tangible (a house, car, cash, land) or
intangible (intellectual property, patents, copyrights, branding)
(IBM, 2023)
• The blockchain is constantly growing as new sets of recordings, or blocks, are
added to it

• Each block contains a timestamp (encoded information identifying when a

certain event occurred) and a link to the previous block, so they actually form a
Alice pays for chain. Data in each block can’t be altered. This means data can’t be lost since it
dinner James exists on many independent servers at the same time and is not controlled by a
David central server. To change data another block should be added containing the
new information. This ensures immutability, transparency, and collective
Liv verification.

• The system is encrypted by complex algorithms (Trust, therefore, is no longer

enforced by institutions or corporations, but by cryptographic consensus
mechanisms)

• This removes the possibility of tampering by a malicious actor — and builds a

D2 A L2 A J2 A
ledger of trustworthy transactions
 ECONOMIC AND SOCIAL IMPLICATIONS OF WEB 3.0
• Data sovereignty and value ownership – (micro-level: individuals)
Web 3.0 redefines the relationship between users and digital platforms by restoring control over personal data and digital
identities. Instead of relying on centralized intermediaries that collect and monetize information, individuals can manage how, when,
and with whom their data is shared. Through blockchain-based identities and personal wallets, users can directly capture part of the
value they generate online — for example, by selectively sharing data or contributing digital content (monetizing the digital
footprint). This shift places individuals at the center of digital value creation and ensures that ownership is transparent and user-
driven (e.g. choosing to share mobility data with a transport provider in exchange for discounts)

• Tokenized participation – (meso level: communities and platforms)

The introduction of digital tokens transforms participation into a measurable and exchangeable form of value. Tokens can represent
access rights, contribution levels, or governance roles, enabling new incentive systems where users are rewarded for the economic
and social value they create — such as producing content, supporting community growth, or providing liquidity. These mechanisms
encourage active involvement and align individual incentives with collective outcomes, fostering more cooperative and inclusive
digital ecosystems (e.g. contributors to a decentralized knowledge-sharing platform might receive tokens for writing articles or
curating content)

• Decentralized governance and market structure – (macro level: industry and competition)
Web 3.0 also reshapes how coordination and decision-making occur at the ecosystem level. Decentralized governance models —
DAOs — allow groups and communities to organize, allocate resources, and make strategic decisions without relying on a central
authority. This reduces dependence on dominant platforms and lowers barriers to entry for new market participants. As a result,
power becomes more distributed, competition can increase, and digital markets evolve toward more open and collaborative
structures (e.g. a decentralized investment club can collectively decide which startups to support)
 CHALLENGES AND OPEN QUESTIONS IN WEB 3.0
Although Web 3.0 carries the promise of a more open, fair, and user-centric Internet, several technical, ethical, and societal
challenges must still be addressed before it can reach widespread adoption.

Interoperability
The ability for different blockchains and decentralized applications to communicate and exchange information reliably. Today, most
blockchains function like separate digital islands: each has its own rules, standards, and technologies, and they rarely work
seamlessly with one another. This lack of connection creates several limitations. First, users cannot easily move their digital identity
or assets across platforms: what you create or buy on one blockchain often stays trapped there. Second, developers must rebuild
the same tools multiple times, because every blockchain requires its own technical version. Finally, innovation becomes
fragmented, as each ecosystem evolves on its own without benefiting from what others have already developed.
Blockchains should be able can “speak the same language”, allowing assets, data, and services to move freely from one network to
another

Transparency and Accountability

Blockchain technology is often praised for its transparency. A paradox: how can systems be both transparent and privacy-
preserving? Two main tensions emerge:
Data visibility vs. personal privacy: Since all transactions are traceable, users risk being monitored or having their financial history
exposed, even if their names are not directly attached to their addresses.
Automation vs. accountability: smart contracts execute automatically, yet errors or malicious code can cause irreversible outcomes
without clear mechanisms for oversight (it is not always clear who is responsible when things go wrong)
Future governance models must balance transparency with ethical responsibility, ensuring that openness does not undermine users’
rights or legal protections.
 CHALLENGES AND OPEN QUESTIONS IN WEB 3.0
Digital Inclusion
Web 3.0 risks creating a new digital divide between those who possess the literacy, financial means, and technological
access to engage with blockchain systems — and those who do not. Barriers include: complex user interfaces and technical
jargon; financial risks associated with cryptocurrencies; regulatory uncertainty that discourages participation; geographic and
socioeconomic disparities in Internet access.
To fulfill its democratizing potential, Web 3.0 must prioritize usability, education, and accessibility, ensuring that
decentralization does not become a privilege for the technologically skilled few.

Sustainability
A final, and increasingly urgent, challenge concerns environmental sustainability. Many blockchain networks consume vast
amounts of electricity for transaction validation and security. Although newer systems drastically reduce energy use, the
sector still faces scrutiny over its carbon footprint and hardware waste.
Sustainable development of Web 3.0 therefore depends on: greener consensus protocols, renewable energy integration, and
policies promoting energy-efficient digital infrastructures.
 WEB 3.0: UNPRECEDENTED LEVEL OF DECENTRALIZATION
AND SECURITY

Web 3.0 aspires to decentralize power, yet it

must overcome fragmentation, opacity,
inequality, and environmental cost.
Its future will depend not only on technological
innovation, but on usability, governance,
inclusiveness, and sustainability — the human
dimensions of a decentralized Internet.

Blurred boundaries: ongoing change processes

Concrete applications mainly in the financial sector (e.g.

cryptocurrencies, decentralized finance, Non-Fungible Tokens)
WEB EVOLUTION: RECAP

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