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Social networking has become the biggest frontier. This paper explores the issues surrounding social networking in the business world and specifically on e-commerce. When people interact with others on the internet, exchanging information using social media sites it is said that they are socially networking. As we analyzed the impact that social networking sites have on e-business systems it became clear that this is a business venture that needs to be explored. Marketing of products, Selling of goods and services and customer Relationship management are just but some of the areas that most companies who have ventured into e-business thrive. But most of those businesses need to be aware of some of the risks involved in this internet like malware, Data security, and financial information security.
Introduction
Social Networking has become very popular during the last few years. Early social networking websites in the early 90's focused on bringing people together through chat rooms, and share personal information and ideas personal homepage publishing tools which are the precursors to blogging. There were different approaches and innovations which gave the users more control over their content and connectivity. Between 2002 and 2004, Friendster, MySpace and Bebobe came the most popular social networking websites while Facebook, emerged as a competitor, rapidly growing in size.[1] Social Networking became a business strategy component and diversified both in territories and languages across the world. There are currently approximately 200 existing and emerging social networking models. There are basic principles that have been embraced with time in the concept of social networking, these include involving and engaging the user quickly, enable self expression where the user can customize their profile and community building in which the connection interactions create an environment that fosters development of communities. As these communities grow, contributors become emotionally vested in the network. The amount of trade conducted electronically (e-business) has also grown extraordinarily with widespread Internet usage. E-business is a term used to describe businesses that utilize business technologies to streamline business processes, improve productivity of a business and improve customer service. The following elements are key to conducting e-business:
A product or service been offered A place to sell the product - web site acts as the place A way to get people to come to your website A way to accept orders A way to accept money A fulfilment facility to ship products to customers A way to accept returns A way to handle warranty claims if necessary A way to provide customer service e.g. email, online forms, online knowledge bases, FAQs etc
Social Networking impact on e-Commerce and e-Business. Impact of Social Networking on e-business
Technology companies such as Intel and Cisco were among the first to seize the Internet to overhaul their operations. Intel deployed Web-based automation to liberate its 200 sales clerks from tedious order-entry positions. Instead, salesclerks concentrate on customer relationship management functions such as analyzing sales trends and pampering customers. The business analyst also have an opportunity to analyse the data and
come up with information concerning their products and how they can improve on sales. This can be done using systems like Business intelligence. Some of the propable impacts on e-business are:.
Expanded reach Faster launch of products Better customer experience The more people you reach the higher the possiblity of increased revenue; Also the more the products are launched the higher the probabilty of selling more hence increased revenue. Good customer service will always bring back same customer and who will inturn market you to other people.
social networks. People will have a global view of subjects that interest them. Enterprises will take advantage of these relationships, global trends and anticipate customer needs to develop new innovative products. Involvement and shared knowledge produces better quality work therefore new products will be of good quality.
Social networks will become the dominant channel for viral marketing campaigns
Social networks will become the dominant channel for viral marketing campaigns in future. Successful future viral campaigns will incorporate both social networks and email, but with an emphasis on the former. Social network will use influence of friends to market viral products. If it's a good product then it the information will move like wild fire. Though same sites can be used to blast a product that is not of good standard.
Challenges
Some of the challenges that will be encountered by businesses are:
Storage
Bandwidth, memory and archiving storage needs will increase to support rich media applications. Media applications are notorius for taking up alot of space.
Interoperability
As a wide range of applications develop, capabilities inside and outside the corporation, interoperability of applications across software platforms will be imperative.
Cultural Diversity
Since we have different people and cultures in the world it becomes difficult make everyone happy. Different people would want different views of the website. There are those who won't like the colour or certain images, while others might want it in their language. Also the cultural assimilator should check to make sure the proper meaning is being disseminated for each communication effort. However, using local firms to translate the Web pages often prevents these types of communication problems from occurring.
Speed
Technology is changing at alarming rate and therefore the corporate world needs to keep up with speed. If left behind the company may lose business to other competitors who have embraced the latest technology. Speed of implementing new technology is expensive and hence need for analyzing benefits before giving a go ahead for new systems.
Discussion of possible applications focusing on opportunities, benefits and risks Opportunities and benefits
With the number of internet users growing at a breath taking rate it is important to grab the opportunities that come with it. Companies that have a vision have started incorporating e-business systems into their setup. Some of the opportunities that e-business can maximise on are: McGregor (1999) [8]
e-Commerce
E-commerce includes online ordering and invoicing, online payment and transactions, automated customer accounts, electronic presentation of products. When a customer access a product he/she has accurate and up to date information since the web application is accessing the database at that integrated with backend systems. Online ordering can also be integrated with order entry system. Also you can establish partnerships with payment service providers so that users can pay online. Such setup will improve time taken to serve a customer and also reduce overheads.
Customer relationship
Customer information is collected and saved in one location hence there data consistency whenever information is retrieved. Analytical tools can be used to get information on customers purchasing habits which in turn can be used in future to target them with related products. This can be a powerful tool to raise revenue.
Risks
In each business you implement there are always risks that area associated with it especially in this 'dot.com' generation. Some of the risks are discussed below.
Invasion of privacy
Having sensitive customer data will need high level privacy. There is always a possibility of the privacy of a customer being infringed.
Shipping
Customers can claim that their order did not reach them while the truth is that it reached them. They can even go to the extent of demanding for a refund.
Malware infection
There is a possibility of being harassed by malicious software. This are common when you are connected to the internet.
Conclusion
Social networking has made huge impact on how people socialize, communicate and share information. Its growth has led to some organisations changing their strategy so that they can benefit from the social influence from users on such websites. But even with all these transformation, few organisations are ready to take advantage of this phenomenon.
There is need for e-business companies to implement Systems that can capture social interactions in a format that can be accepted by ecommerce websites. This is important since such information with help of an analytical system can be used by the sales and marketing teams to come up with reports that can be used to make marketing decisions. With the right vision that focuses on how to utilize the information collected from users a company can gain competitive advantage over its competitors.
References
1. 2. 3. 4. 5. 6. 7. Steve Rosenbush , " News Corp.'s Place in MySpace," BusinessWeek, July 19, 2005. (MySpace Page Views figures) 2005. News Corporation buys MySpace: BBC.co.uk website. ITV buys Friends Reunited: BBC.co.uk website. Over 200 social networking sites: InfoJuice website. Retrieved on January 19, 2008 David Skul, , "3 Principles of Social Network Design" http://www.buzzle.com/articles/3-principles-of-socialnetwork-design.html, 12/21/2007 Goad,R and Mooney, T. (2008). The Impact of Social Networking in the UK. Ref i,iv,x. McGregor D. (1999) e business. The opportunities. (Accessed Jan 5th 2010) http://www.pdms.com/infocentre/articles/ebusiness.xml.