Web 2.0 and a Small or Medium-sized Business - Essay Example

?WEB 2.0 AND A SMALL OR MEDIUM-SIZED BUSINESS of The Potential of Social Media and Related Developments under the Banner “Web 2.0” For Helping a Small or Medium-Sized Business (SME) To Communicate With Customers and To Share Knowledge Between Its Staff Technological advancements experienced in the recent years have significantly changed the way people live and conduct business. Particularly, the advancements have significantly changed the business environment and made it increasingly competitive (Chaney, 2009, p. 19). One of the major and most important advancements of technology is the internet which has significantly changed people’s lives and how they do business. Specifically, internet has facilitated the development of social media and related developments under the banner “Web 2.0” which has been central to business operations in the recent times. Web 2.0 refers to the concept that uses internet network (World Wide Web) as a platform for sharing information, collaboration, user-centered design, and interoperability among individuals and companies (Lincoln, 2009, p. 11). Web 2.0 platforms give users the opportunity to collaborate as well as interact with one another as creators and users of content that is user-generated. This technology is revolutionary in the sense that it allows collaboration and interaction among users in a virtual community unlike other websites that limit consumers to passive viewing of the contents that have already been created for them (Elliott, 2004, p. 27). Web 2.0 platforms include social networking sites, web applications, blogs, hosted services, and video sharing sites among others. The fact that social media has grown exponentially over the years means that no business can ignore it, as it is very critical to the success and performance of businesses (Shah, 2010, p. 16). This paper will discuss the potential of social media and related developments under the banner “Web 2.0” for helping a medium-sized business (Proxar IT Consulting) to communicate with customers and to share knowledge between its staff. Web 2.0 technologies use internet network (World Wide Web) as a platform for sharing information, collaboration, user-centered design, and interoperability among individuals and companies. Several studies have shown that Web 2.0 has a wide range of generic business benefits that emanates from the adoption of developments in web services, software as a service, and interpersonal computing (Nair, 2011, p. 46). The first generic benefit is that Web 2.0 can help a business improve its ranking particularly in the search result and therefore extend its presence onto other sites. This is important to any business in the sense that it builds high quality links to the company and therefore increases the exposure of the business (Chaney, 2009, p. 35). However, for this to be more efficient, the content should be made relevant to staff and existing and potential customers. The second generic benefit is that it helps in the brand management of the business and helps them to protect their reputation. Proactive use of Web 2.0 can remarkably help to build and find relationships with customers, as well as improve relationship between employees (Lincoln, 2009, p. 19). In addition, Web 2.0 is beneficial to businesses because it enhances relationships between the business, its partners, customers, and staff. Through social media, customers, employees, investors, and partners find the platform to interact and collaborate (Lee, 2010, p. 114). Another generic business benefit of Web 2.0 is brand awareness; it presents businesses with incredible opportunity to generate content that brands the company in good light and therefore generate brand awareness to the targeted audience (Elliott, 2004, p. 44). Social media has proved to be fundamental in building consistent presence and therefore enhances brand awareness for any business that uses it. More importantly, Web 2.0 technologies when effectively used can facilitate innovation in the business. It is no doubt that social media is a great learning tool and helps businesses to learn about customers and how they talk about the business’ products and services. As a result, the business can focus on the areas that need innovation or improvement (Shah, 2010, p. 29). Moreover, Web 2.0 enhances the competitive advantage of the business; while it is true that many of the competitors may be using social media to improve their business, analyzing what they say or do can help a business to differentiate its brand and eventually get better results thereby gaining competitive advantage (Chaney, 2009, p. 82). In the light of the enormous generic business benefits that Web 2.0 presents to business, small or medium-sized business cannot afford not to adopt its developments. Proxar IT Consulting is a medium-sized company in the London that is focused on delivering secure and high performance IT services and solutions. Like other small and medium-sized business across the world, Proxar can benefit from the potential benefits of social media and related developments particularly the Web 2.0 technologies (Lee, 2010, p. 116). In particular, it can benefit from the adoption of Web 2.0 development (interpersonal computing) like social networking sites such as Facebook and Twitter and blogs to communicate with customers and to share knowledge between its staffs (Lincoln, 2009, p. 23). Being in the technology industry, Proxar can greatly reap the generic business benefits of Web 2.0 since many of its staff and clients use Web 2.0 technologies with increasing frequency. Proxar can use Web 2.0 to provide customers with different and diverse information in diverse and plural ways. Since Web 2.0 can help transfer of information to a more diverse range of audience compared to other types of media, Proxar can reach a wide range of customers in easily, quickly and provide them with a wide range of information (Chaney, 2009, p. 102). This is important in not only providing customers with relevant and quick responses, but also in making them more aware of the products and services that it provides (Shah, 2010, p. 44). Interpersonal computing such as blogs and social networking sites such as Facebook and Twitter can transmit information to the wider public and is more useful in communication as it transcends nationality and class (Elliott, 2004, p. 56). Since many IT companies have presence in the Web 2.0 technologies, Proxar should seek to enhance its exposure in the social media, and specifically in the interpersonal computing. It should create high quality content that can enable it to stand out from the rest in have the highest ranking in search results (Lee, 2010, p. 115). Also, it should build important links that can help it elevate its ranking in the interpersonal computing sites. It should seek to have the many followers in the sites such as Facebook and Twitter. Additionally, Proxar can improve its brand management by using interpersonal computing; interpersonal computing can help it to not only improve its reputation, but also to protect its reputation. It can use interpersonal computing proactively to find and build customer and staff relationships. Along with that, it can use the website to deflect any negative opinions that may come in the blogs and social networking sites (Nair, 2011, p. 51). In order to have a remarkable brand, Proxar should keep on building more positive sentiments regarding itself in order to ensure that customers are less likely to find negative opinions or comments that may be detrimental to the company. Related to improved brand management is brand awareness; social media has proved to be critical in presenting an incredible opportunity of generating brand awareness among the audience that the company is targeting (Lincoln, 2009, p. 70). Web 2.0 can also help a small and medium-sized business such as Proxar to create better customer and staff relationships, which is instrumental in ensuring company’s success. More than other tool, interpersonal computing platforms such as blogs and social networking sites has the potential of building better relationships for business. This is because they have the ability of giving a business a human face. Chaney (2009, p. 74) notes that people like to buy from people and interpersonal computing platforms offers a better opportunity for that. Therefore, a company that adopts interpersonal computing makes its business more human, and enhances relationships among its customers and staff. By humanizing the business through interpersonal computing, Proxar can remarkably facilitate the growth of its business, support its current marketing systems, and improves its brand reputation (Shah, 2010, p. 148). Furthermore, interpersonal computing can help a small or medium-sized business to communicate with customers and to share knowledge between staff through innovation. Social media promotes innovation through learning; it can help Proxar to know how customers are talking about its services and products and therefore pay more attention in areas that it needs to innovate or improve on (Lee, 2010, p. 117). Also, feedback and conversations between customers and the company can help the company to know about how it can best meet or exceed customers’ needs, therefore spurring innovation. Interpersonal computing platforms such as blogs and social networking sites can enable Proxar staff to share knowledge and information therefore stimulating innovation in the company. More importantly, it can help Proxar to gain competitive advantage by following what its competitors say and do and therefore find ways to differentiate its brand and obtain better outcomes (Elliott, 2004, p. 112). In conclusion, the discussion has shown how Web 2.0 has a wide range of generic business benefits. Adoption of Web 2.0 technologies such as web services, software as a service, and interpersonal computing can significantly improve the success of any company. As has been noted, interpersonal computing platforms such as blogs and social networking sites has immense potential for helping a small or medium-sized business such as Proxar IT Consulting to communicate with customers and to share knowledge between its staff. It is no doubt that Web 2.0 developments can significantly alter the ways that business communicate and share knowledge with its staff, actual and potential customers, and its wider stakeholders. This has been demonstrated by exponential growth of social media and its enormous uptake by individuals and businesses. Therefore, Proxar ought to adopt fully the Web 2.0 developments and incorporate them in its all aspects including communication and knowledge sharing in order to remain competitive and improve its profitability. References Chaney, P 2009, The Digital Handshake: Seven Proven Strategies to Grow Your Business Using Social Media, New York: Wiley & Sons. Elliott, G 2004, Global business information technology: An integrated systems approach, Harlow: Financial Times Prentice Hall. Lee, D 2010, “Growing Popularity of Social Media and Business Strategy,” SERI Quarterly, 3(4), 112-117. Lincoln, S 2009, Mastering Web 2.0: Transform Your Business Using Key Website and Social Media Tools, London: Kogan Page. Nair, M 2011, “Understanding and measuring the value of social media,” Journal of Corporate Accounting & Finance (Wiley), 22(3), 45-51. Shah, R 2010, Social Networking for Business: Choosing the Right Tools and Resources to Fit Your Needs, Upper Saddle River, New Jersey: Pearson Prentice Hall. Read More