The Impact of Social Networking on e-Business - Assignment Example

 The Impact of Social Networking on e-Business Abstract The arrival of electronic business or e-business age has brought many transformations in the approaches of traditional businesses. Additionally, in a number of businesses, completely new business models have emerged or developed that are presenting substantial scope for reforming the business operations, sales, management, administration, supply chains. Additionally, this also have a great influence on changing the traditional ways of working of value chains and information flows. Since, these all new transformations have offered a lot of facilities in scenario of production and management. Thus, in order to contribute entirely in the modern and up-to-date web based business environment, corporations carry on to make important economic investments, not merely in information and communication technologies (ICTs) however as well in the procedures and people essential to function them. In this scenario social networking is a new emerging term and trend for the effective establishment and presentation of business on the web. However, the paradigm of social networking is new. In addition, the social networking web sites are web based portals those are a new tendency in the development of content rich internet portals. Additionally, the social networking website or online portal is used to join people according to their information, stored in user profiles. Furthermore, these social network user profiles decide the means through which an online user presents themselves to other similar social network users. The most significant unique factor among a variety of sites is the variety of profile information that they store, organize as well as are able to carry out operations on their information (Neumann et al., 2005). Though, the use of social network in business is new and emerging trend. However, at the present, more web based businesses are making use of the web based portals for advertising, communicating and marketing, dealing with, and making sales. In addition, the new trends of the web based business support through social network are getting more attention of a lot of businesses. This paper presents a detailed analysis of the social networking and its usage for the e-business. The main intention of this paper is to offer a comprehensive overview of the technology areas and social networking structures that are useful to the businesses. Introduction Liebowitz (2005) outlined that, at the present, social networking technology plays a significant role in e-business and e-commerce economic development and managing activities. For instance, the utilization and implementation of the computer-mediated technology for the social networks offer prospects intended for users to share corporate information regarding a variety of products offered, quality of the products or services, and prices to augment the business popularity as well as the make popular the services they offer (Liebowitz, 2005). Additionally, a most popular example of virtual community is eBay that is a virtual marketplace from where millions of customers and users globally purchase and sell products, share frequent interests, discuss the products and optimum practices, get assistance and feedback from other customers, and advertise the services and products that helps improve business reputation. Lea, Yu, Maguluru, & Nichols (2006) stated that this kind of social networks and virtual communities encourage financial system through expanding transactions among loosely linked diverse communities of people as well as small businesses (Lea et al., 2006; Girgensohn & Lee, 2002). The aim of this research is to analyze and investigate the advantages and effectiveness those are offered by the social networks and virtual communities to the e-Businesses. In this scenario I will conduct an analytical study for the investigation of the social network impacts on the web based business platforms. Problem analysis Palmer & Koenig-Lewis (2009) stated that in case of customary shapes of social networks, the members are local people (like that kinship, friends, people we come across at job, associates of face-to-face communities, play groups, neighbors). Thus, in this type of social network people need to organize the network through interactions that typically happen among people who physically live in the specific region. The customary social networks are frequently little in size, can exhibit homogeneity between associates as well as nature of arrangement; can be constrained through physical meeting (Palmer & Koenig-Lewis, 2009). According to Goorha (2009) with the development of technology, the social networks developed from personal communications of human over time to a technological infrastructure and communications that links those humans” as well as have developed into online social networks that are arbitrated through the computer networks. In addition, the communications and dealings among people that usually happen face to face are at the present accomplished on the web based online arrangements by means of convergent synergy of online conferencing, instant messaging, real-time collaboration technologies, interactive white boards and shared online work spaces throughout the internet like that HTTP protocols (Goorha, 2009). Liebowitz (2005) stated that devoid of some physical boundaries of customary social networks, the new evolutionary web based social networks influence, impact and improve advantages, benefits and effectiveness of the customary social networks throughout the time and space and speed up and globalize the corporation’s business procedures. For instance, social network associates are capable to locate as well as transmit business information, that fallout in supplementing information, from and to diverse geological and geographical locations all through the globe. This also facilitates in case of establishment of interaction and communication at time once they start contributing in the communication activities as well as access the network. In addition, the associates offer solutions to resolve problems intended for each other. Furthermore, the network supported and computer-mediated new evolutionary social networks frequently present and exhibit additional heterogeneity in the social characteristics along with their associates (Liebowitz, 2005; Palmer & Koenig-Lewis, 2009). Literature review According to (Boyd & Ellison, 2007), “social network sites are web-based services that facilitate individuals to perform following tasks”: 1. Build an open or hidden profile inside a bounded system 2. Develop a directory of other people with whom they communicate 3. View and edit their directory of connections and those made by others inside the system. The individuality of social network sites is not that they allow individuals to meet strangers; on the other hand, they facilitate people to build up and make identifiable their social networks. Thus, this can result in communication among users that would not in other ways be made, although that is not the major objective, and these communications are normally between "latent ties" the people sharing some offline connections (Boyd & Ellison, 2007). At the present, the social networking websites have become a family name. Despite the fact that, it is someone’s confidential or professional life, they are in fact wonderful process for communicating with friends, colleagues, and making new relationships online (Sedycias, 2009). Since, a social networking web site is a web site where people are able to develop an online profile; and they mention their interests in profile, as well as they can insert links to other profiles. Typically, the users of social networking sites are able to dispense personal information, encompassing photographs, blog entries and videos. MySpace is an example of social networks, which is very popular in the same way with individuals and with music groups, who are able to market their tour dates, and transfer their songs on their profile pages (Hawkins, 2009). A social networking site is a very helpful and functional way to keep in contact with a large number of people (friends, colleagues, relatives, etc). Since, if someone has some news which he/she needs or wishes to distribute to others, then he/she can insert it on his/her personal bulletin board and it will be transferred or distributed to the people to whom he wants to share. Thus, the social networking sites can play a significant function for meeting with new people, whether on a business or friendship (Hawkins, 2009). Phillips & Phillips (1998) define the social network as a set of organizations, businesses, individuals, or other social entities those are linked through a set of publicly meaningful associations, like that co-working, friendship, or else information exchange, as well as communications to effectively attain desired results through sharing resources, expertise and information. In addition, a social network usually offers member a huge number of prospects for discovering, setting up novel social or commerce contacts for teamwork, social support, exchanging social capital comprising economic resources, services and goods, discovering and application of information transfer, plus producing social wealth (Phillips & Phillips, 1998). Liebowitz (2005) has stated that vritual communities’ like that social networks normally offer both (non-profit and profit services) and are able to develop and improve the major economic and social values. In addition, these digital settings augment the resourcefulness as well as facilitate citizens to build up interaction and set up socio-economic forces at elevated standards. For instance, the AOL (Amerce Online) network facilitates in carrying out locally related business, corporate and commerce information as well as augments the characteristics like that local publicity prospects intended for vertical markets (for example real estate, auto, health and employment ). However, with no profit services and economical advantages the social networks and virtual communities are hardly ever attractive. In additional, a lot of non-profit social networks and virtual communities are failing and turned out to be a portal to the city. Similarly with no non-profit services, the city can turn out to be too homogeneous since an outcome of following economic efficiency (Liebowitz, 2005). Discussion Liebowitz (2005) stated that presnetly web based business social networks can differ in terms of heterogeneity and size. Additionally, the main factor that is differentiating these social networks is the nature of the business. However, in case of small, homogeneous networks those are a characteristic and part of customary work groups as well as rural communities; they are excellent for perusing the accessible resources. On the other hand, huge size web based business social networks demonstrate additional heterogeneity in social uniqueness of the social network associates as well as offer additional complexity in the arrangement of these networks (Liebowitz, 2005). Social Network Implementation for E-Business: Electronic business or e-business can be defined as “the use or application of the internet and other digital technology for coordination, organizational communication, and the management of the company” (Laudon & Laudon, 1999, p.25). In addition, by issuing information through electronic network, e-business expands the accessibility of management. In addition, the managers can make use of web documents, e-mail, and work-groups software applications to successfully and effeciently communicate regularly with thouands of personnel, and even to organize distant task forces and teams. Since, these jobs would be unfeasible in face-to-face traditonal corporations (Laudon & Laudon, 1999, p.25). Thus, the definition of e-business clrearly shows the importance of social networking for e-business. The use of social networks can improve the process of e-business. Since, the social networks work as a medium for distirbuting or sharing information. Lea, Yu, Maguluru, & Nichols (2006) stated that the success of a business is completely connected with the prospect to mobilize as well as direct resources (for example financial, human, intangible or physical intellectual business resources) into businesses as well as that are extremely connected to the power of an entrepreneur’s social network. In addition, the basic advantages of establishing a powerful business social network encompass prospects of implementing novel social or corporation contacts for cooperation, establishing exchanged social capital including financial resources, goods or services as well as discovering and applying knowledge transfer. For that reason, it is significant for business managers or entrepreneurs to powerfully attach with the communicators in their business social network with regard to set up as well as uphold connectivity to obtain resources required for their business accomplishment. There are a range of associations intended for the exchange of business and corporate data and information through those business members and users of the network are communicating and interacting (Lea et al., 2006; Swamynathan et al., 2008). Liebowitz (2005) stated that procedure of setting up and upholding a powerful social network for a business is a time consuming task. However, at the present, the new web based technology is offering efficient tools and techniques to establish the e-business social network. Since, this new technology based social network for a business, offers effective management for the business marketing, sales, supply chain management and customer relationship management (Liebowitz, 2005). Using social networks for purchase decision making: Palmer & Koenig-Lewis (2009) stated that social networking technology can be used with the e-business for purchase decision making. Since, the social network web based platforms for the e-business have a realistic cognitive purpose like that helping the product selection. However, there is nothing innovative in the results of a buyer's peer group in controlling purchase decisions as well as fundamental buyer behavior models have traditionally incorporated peer group manipulating on the closing results. Additionally, there are a huge number of proofs, for instance, that, when contrasting professional and personal services suppliers, customers choose to be guided through information from friends and other personal contacts rather than a business's proper promotion mix. A significant communication goal intended for e-business is frequently leverage “free” encouraging marketing and promotion by means of word-of-mouth suggestion, as well as to limit the damage reasoned by negative word-of-mouth (Palmer & Koenig-Lewis, 2009; Qiao, 2008; Ibrahim et al., 2008). Using social networks to contribute E-business website: Rodgers, Yen, & Chou (2002) outlined that until now, the advantages to purchaser of having a community of users to facilitate notify their purchase selection have been noted, as well as sequentially, communities can facilitate in distribution of the seller's messages (Rodgers et al., 2002). Neumann, O'Murchu, Breslin, Decker, Hogan, & MacDonaill (2005) stated that a unique characteristic or attribute of social network positions is the visible motivation and capability of individuals to transfer their opinion to others, consisting of people who are unfamiliar to them (Neumann et al., 2005). Palmer & Koenig-Lewis (2009) offer a research for the social network websites. In this research it is was discovered that 23 % of customer and business website users had posted comments regarding an advertisement and 25 % had distributed (forwarded) that advertisement to other users of the website (Palmer & Koenig-Lewis, 2009). Additionally, there is a hypothetical foundation for considering why people can willingly provide information to others, established in models of reciprocity. Implicit estimations of feedback to self have been at the center of a lot of evolutionary models of socio-biology. In addition, the Darwinian models entail self-centeredness in that altruistic performance of co-operation is simply accepted where that is computed to enhance an individual's probability of endurance. However, it has been conventionally supposed that altruism is essentially connected to straight reciprocity of benefits. Despite the fact that, this fundamental model does not completely take account of humane acts that outcome from co-operation that is jointly circuitously in the course of other members of a society, as well as not essentially the individual to whom self-sacrifice was originally extended. It has been assessed that peer-group, emotional support, and an understanding of social individuality are frequently a more famous incentive for contributing in online communities than information seeking (Neumann et al., 2005; Liebowitz, 2005). Social Networking for Shaping Customer Experience: Palmer & Koenig-Lewis (2009) stated that the idea of “customer experience” is more and more being encouraged like an intellectual integrator of the different motivations that customers recognize. However, a structure for modeling the complication of the holistic knowledge in online social networks is offered through some social associations those shape the experience of expenditure as well as recognize four sources of e-business customer’s experience: (Palmer & Koenig-Lewis, 2009) Citizenship Consumption of the product Friendships Family membership The experiments and researches shown that the web based society is apparent in the proposition that consumers seek products fewer for their private value in utilization than for their connecting values to other “community” members. In the other terms of “service dominant logic”, worth in utilization is achieved in the course of associations by peers. Social groups that once achieved individuality in the course of their association to their work group, church or geographic location discover these resources of acknowledgment in more difficult in an evolving individualistic, mobile and secular world, plus instead associations through social network websites turn out to be a source of shared group of people experience. However, a number of have talked about a “Brandscape” as a gradually more significant kind of community, in that customers feel themselves sensitively connected to one another (Palmer & Koenig-Lewis, 2009). Broader Impacts of Social Networking for E-Business: The e-business arrangement can attain more effective competitive edge by implementing social networking into e-business structure. In addition, this implementation offers the business to have following advantages (Liebowitz, 2005; Girgensohn & Lee, 2002; Lea et al., 2006): Offering business facility regarding the availability of information to its client and members for sharing and exchanging resources Generating, gathering, and correlating the business network data (like that centrality, degree, redundancy, density, etc.) as well as accomplishing innovation Offering a structure for appropriate and timely communication, contextual information, distribution of experiences, and expert approaching to stimulate knowledge formation The utilization of social networking and virtual community arrangement means to have a more information and integration of business departments. Since, the social network and virtual community could hold information as well as sensitive real-time sensory data (protected and access controlled data). In addition, that arrangement offers more successfully and efficiently applying the traditional social network concepts of interaction. For instance, the similar data can comprise traffic status, bus schedules (location as well as route data intended for each few minutes), weather condition and live videos. Social networks offer flexibility regarding the virtual community’s communication. In addition, they are offering flexibility to users to contribute in the business communities as they desire to permit them to produce their perfect environment and the elasticity that is essential to survive in a business environment as transforming for the faster business handling environment. Social networks present dissemination of activities. In addition, the social networking establishment offers the e-business, the experience, knowledge, and best practices that could be distributed through numerous communication media (for example exhibitions, virtual working groups, websites, publications, training courses and a virtual discussion forum). Furthermore, the e-business communication in the course of these media can be either asynchronous (offline) or synchronous (online). Effective business marketing arrangement establishment Rapid sharing and transmission of business promotions Well equipped customer relationship management Availability of the online customer services Quick customer based revisions of products and services of business Enhancing business cycle through web based promotions Delivering more effective business services Widening the business arrangement Targeting customer in a more better way Taking business decision through analyzing the social network arrangement Issues in Social networks: Neumann, O'Murchu, Breslin, Decker, Hogan, & MacDonaill (2005) state in the social networking and web based communities especially in the scenario of e-business infrastructure the information and data is transmitted straightly among the systems of the clients linked to that social network. Thus, a social network user could be able to decide to participate in the network actions or take a free ride. However, the main difficulties in case of free riding can reason degradation of the social network performance as well as it produces vulnerabilities like that denial of service or loss of privacy. Additionally, these types of issues can arise in case of the system where there is risk to individuals having some negative aims. In addition, there is another concern to be reflected on in web based networks is information credibility. Since, in a business social network the information credibility is vital because in case of less effective credibility, business or users can suffer. Another factor in e-business based social network is the integrity of the content design and user interface design that require to be measured during development of an effective web based e-business social network. Additionally, social network user's satisfactions through handling and network self-efficacy are as well significant to successfully maintain business clients in virtual communities (Neumann et al., 2005; Ibrahim et al., 2008; Sedycias, 2009). Summary Social networks improve the economic and social advancements of a business. The web based virtual communities and e-business makes use of innovative information communication technologies to offer platforms where group of people in diverse communities are able to share knowledge, interact, share experiences as well as mutual interests. This paper has presented a detailed analysis of social networking and its main advantages to web based business setup. This research has analyzed the implementation of the virtual community and social network concepts to e-business. It is assessed that this arrangement can offer better promotion and structure for the social interaction between the ecommerce users, to fuel corporate business as well as cooperation activities, to produce the connection among discovery, societal reimbursement, and as a result to improve business networks. I hope this research will offer a comprehensive overview of the interaction between social network and e-business arrangement. References 1. Boyd, d.m. & Ellison, N.B., 2007. Social Network Sites: Definition, History, and Scholarship. [Online] Journal of Computer-Mediated Communication Available at: http://jcmc.indiana.edu/vol13/issue1/boyd.ellison.html [Accessed 12 March 2010]. 2. Girgensohn, A. & Lee, A., 2002. Making web sites be places for social interaction. In Computer Supported Cooperative Work, Proceedings of the 2002 ACM conference on Computer supported cooperative work. New Orleans, Louisiana, USA, 2002. ACM New York, USA. 3. Goorha, P., 2009. 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