Social Networking and Enterprise - Research Paper Example

Table of Contents Social Networking and Enterprise 3 Introduction 3 Overview of social networking in businesses 3 Top five most popular social networks in 2010 4 Top Four most popular social networks in 2010 5 Advantages of social networks in businesses 5 Building the business 6 Searching for the right collaborators 7 Advertising products globally 7 Disadvantages of social networks 8 Viruses and malware 8 Privacy 8 Data leakage 9 Negative publicity 9 Choosing a social network 9 Creating an enterprise social network 11 Conclusion 11 References List 13 Social Networking and Enterprise Introduction This paper critically addresses advantages and disadvantages of social networking in the world of business. To bring the concepts of social networking into perspective, a retail chain of stores will be used as an example of a business premise that has embraced the use of social networking in its operations. Secondary sources of information dealing with the subject of social networking in business premises and workplaces will be used to help in addressing the question at hand. Apart from advantages and disadvantages of social networking, the concept of creating a social network in a business premises will also be discussed. Choosing of a retailing firm as a case study is inspired by the fact that the core objective of retailers is to attract customers in large numbers, hence the interest to analyze how retail firms operate through social networks. Overview of social networking in businesses Today, the technology of social networking is an innovation that cannot be ignored in business premises. Before the realization of how beneficial social networks are in the business world, many people were of the opinion that social networks are avenues for people to pass the time (Shah 2010, p. 7). However, persons of brilliant minds took that advantage, which has changed the way businesses carry out their operations. Businesses are highly dependent on social networks to enhance their relationship with employees and customers. The increased number of social networks offers businesses a chance to decide on whether to adopt a consumer social networking or an enterprise social networking site or even both. The choice of social networking site to adopt is determined by the desired level of integration to match the business goals, public relations strategies, and organizational learning (Silver 2009, p. 21). The use of social networks gained popularity in 2003 onwards due to increased usage of the internet across the globe as well as increased internet awareness (Hartley 2010, p. 4). Currently, there are several social networks each with its unique area of specialization. Therefore, businesses willing to make profits through social networks have to choose the social network that suits them best. The process of choosing the appropriate social network is dependent of two key aspects. An organization has to decide whether the social network to adopt is one with the highest number of users or one which satisfies the organization’s needs the best (Funk 2011, p. 33). The top five most popular social networks are Facebook, MySpace, Twitter, LinkedIn, and Classmates (Drobnjak 2011, p. 8). Figure 1: shows statistics of the top five social networks in 2010 A survey conducted in 2010 found out that twitter, Facebook, You Tube, and Business blogs are the most popular social networks in the world of business (Drobnjak 2011, p. 16). Figure2: the four most popular social networks in the business world in 2010 Advantages of social networks in businesses Social networks have numerous advantages when applied in the running of business operations. The choice of a social network depends on the intended need. Social networks help business organizations in five ways. These key benefits are assisting in the growth of businesses, finding collaborators, hiring excellent employees, take the business global, and in branding of the business. Building the business This entails all essential steps required in the establishment of a business. When developing a business idea, it is necessary to understand the business risk to be undertaken. Conducting a market survey on the risk to be undertaken may be expensive, especially when the intended business is not ventured by many people. In such situations, social networks save a great deal by offering a quick understanding of the risk at hand. This is because social networks are highly saturated with essential information needed by business operators. Information comes in the form of consumers’ comments on goods and services offered by business organizations. Therefore, product and business developers can utilize such information to build businesses and develop new products (Safko 2012, p. 54). Product development is a crucial step in building and maintaining a strong business. Good products have the ability to market themselves since they are appealing to many customers. Therefore, product developers should involve potential customers in product development process (Rafinejad 2007, p. 27). Business organizations can achieve this by posting steps involved in product development on social networks in order to get feedbacks from potential customers. Information obtained is essential in improving the quality of the product under development. Market survey follows after a product has gotten into the market. To gain a competitive advantage over other retailers of similar products, it is essential to conduct a market survey on quality, prices, and customer care services offered by other retailers (Safko 2012, p. 65). Social networks create a platform through which consumers discuss their experience regarding products they have used. These opinions can assist business operators in their market surveys since they are a direct reflection of what consumers feel about products in the market. Searching for the right collaborators Business collaborators fall into two categories; retailers and suppliers and business contacts. The two groups operate in different social networks, and business operators need to find collaborators from the different networks. The easiest way to find collaborators when operating a business oriented network is to add a social network into the business network. Adding a social network enables the flow of feeds such as those in Twitter and a direct link to LinkedIn. The other aspect in finding collaborators is networking. The concept of networking is vital in finding business partners and customers, but it is a time consuming activity. However, using networking platforms such as LinkedIn can make networking an easy affair (Sethi 2010, p. 13). Creating a business profile allows business operators to find out what others in similar business are doing with possibilities of creating networks with them. LinkedIn is an example of a social network that allows retailers to form business networks which subsequently reduce operating costs (Jefferson &Traughber 2012, p. 5). Advertising products globally Most retailers focus on attracting as many customers as possible. Unlike traditional advertisement platforms such as radios and televisions, advertisements on social networks have the potential to reach millions of users around the world. In addition, costs of social media advertisements are cheaper compared to those done through conventional advertisements. With social networks, a business, brand or product can gain massive acceptance within a few days. Small retail businesses stand good chances of introducing new brands via social networks into the market without incurring a lot of cost. On the other hand, social networks have the potential to destroy the reputation of a brand within an extremely short period (Tuten 2008, p. 53). Disadvantages of social networks Despite the fact that fact social networks offer numerous advantages to retail businesses, there are also potential threats associated with the usage of social networks in businesses. Viruses and malware In the recent past, a number of social networks have suffered attacks from hackers aiming to gain access to existing accounts. The increased vulnerability of social networks to hackers is due to the large amount of user data, which is acquirable through a breach of existing security measures. Upon gaining access into a user accounts, hackers are in a position to gain access into many computers within a short notice (Jefferson & Traughber 2012, p. 8). Privacy The other disadvantage associated with social networks is the lack of privacy. This occurs because social network users usually give out a lot of information, which may be sensitive and can lead to phishing attacks, identity theft, and cybercrime. Facebook has encountered privacy related issues on several occasions. One of the privacy issues was the move by Facebook to give out user data to large advertising firms. In addition, business competitors will always be looking to see what their rivals are posting on the social network in order to figure out how to react best (Jefferson & Traughber 2012, p. 7). Data leakage Business organizations try as much as possible to safeguard their confidential information. However, this cannot be fully achieved, especially where employees are able to get reach of confidential information. Therefore, employees are the main cause of data leakage through sharing of information with the outside world. Leaked information can be damaging to a business organization more so when it is in the hands of rival business organizations. Issuing hard punishments to employees who leak confidential information can help in reducing incidences of data leakage (Drobnjak 2011, p. 6). Negative publicity Social networks enable business organizations to spread information related to their operations with a lot of ease. However, the ease at which positive information is shared around the globe is the same way negative publicity is spread to the world. The retail premises under analysis once suffered the impacts of negative publicity after an unsatisfied customer posted a blog on the internet, expressing his dissatisfaction with the retail business. Customers who saw the blog also commented expressing their dissatisfaction and went further to share the blog through other social networks. The blog caused the retail premises to lose revenue, and a survey on customer satisfaction revealed that many customers were dissatisfied (Drobnjak 2011, p. 6). Choosing a social network The effectiveness of a social network is judged by the amount of users operating accounts with a given social network. Social networks are largely defined by the community. With such knowledge, business organizations must know the social networks that best suit their operations in order to maximize on profits (Sweeney & Craig 2010, p. 151). Business organizations have different needs, and it is these needs that determine the social network to be used in a given business organization. A SWOT analysis can be applied when choosing the best social network to adopt in a retail enterprise. SWOT analysis helps businesses to analyze possibilities of adopting a given social network. This is achieved by outlining strengths, weaknesses, opportunities, and threats associated with preferred social networks (Drobnjak 2011, p. 14). Figure 3: SWOT analysis in determining possibilities of including Facebook on the retail business network When applying SWOT analysis technique, it is essential to note that strengths can turn into weaknesses; weaknesses can turn into strengths, opportunities can turn into threats, and threats can turn into opportunities (Fine 2009, p. 23). The use of a SWOT analysis gives one a challenge of not being able to obtain the exact points needed to characterize a specific social network. This is because social networks are remarkably diverse and possibilities offered by social networks are of a wide range. Before adopting any social network for business purposes, it is advisable to first conduct a SWOT analysis to identify a social network, which meets the needs of an organization. In cases where negatives are more than positives, the business should not adopt the social network under investigation (Jue et al 2009, p. 137). Creating an enterprise social network Apart from joining well established social networks, business organizations can opt to create personal, customized social networks (Ryan 2011, p. 20). A retailing business enterprise can come up with a customized social network that allows customers to register and create user profiles. Registered customers can participate in contests, surveys, and post comments related to products provided by the retail business. The retail enterprise can create a database that lists all the retailed products, which enables customers to view specifics attached to each retailed product. An enterprise network creates a platform where information is passed over and feedback obtained. Market surveys become easy to conduct through enterprise networks. In addition, customers have a direct influence on the kind products to be added or removed from the shelves (Awolusi 2012, p. 2). Conclusion With the help of enterprise networks, customers are able to bring forward their concerns about retailed products. Retailers can also respond quickly to complaints raised by customers before the situation gets worse. Therefore, building social presence in a retail enterprise is essential in ensuring there is a smooth running of business operations. From the discussion above, it is evident that building social presence comes with significant positive effects. Although there are some negative attributes of social networks, proper selection of the most suitable social networks reduces the negative impacts associated with social networking in the world of business. In the future, more and more business organizations are likely to turn into social networking in attempts to market their business enterprises. References List Awolusi, F. (2012). The Impacts of Social Networking Sites on Workplace Productivity. The Journal of Technology, Management, and Applied Engineering 28 (1). pp. 1-5. Drobnjak, A. (2011). Social Networks and Business, Fribourg, University of Fribourg.pp1-25 Fine, L. G. (2009). The SWOT Analysis: Using Your Strength to Overcome Weaknesses, Using Opportunities to Overcome Threats, New York, CreateSpace. pp20-23 Funk, T. (2011). Social Media Playbook for Business: Reaching Your Online Community with Twitter, Facebook, LinkedIn, and More, New York, ABC-CLIO. pp. 25-35 Hartley, D. E. (2010). 10 Steps to Successful Social Networking for Business, Chicago, American Society for Training and Development. pp. 2-6. Jefferson, C. & Traughber, S. T. (2012). Social Media in Business: How Social Media Can Help Small Businesses and Non-Profit Organizations, Lawton, Cameron University. pp. 2-8. Jue, A. Marr, J. A. & Kassotakis, M. E (2009). Social Media at Work: How Networking Tools Propel Organizational Performance, New York, John Wiley & Sons. pp. 130-140 Rafinejad, D. (2007). Innovation, Product Development and Commercialization: Case Studies and Key Practices for Market Leadership, Fort Lauderdale, Ross Publishing. pp. 20-27. Ryan, P. K. (2011). Social Networking, New York, The Rosen Publishing Group. pp.10-20. Safko, L. (2012). The Social Media Bible: Tactics, Tools, and Strategies for Business Success, New York, John Wiley & Sons. pp. 58-66. Sethi. (2010). Business Communication, Noida, Tata McGraw-Hill Education. pp.10-15. Shah, R. (2010). Social Networking for Business: Choosing the Right Tools and Resources to Fit Your Needs, Upper Saddle River, Pearson Prentice Hall. pp. 2-10. Silver, D. (2009). The Social Network Business Plan: 18 Strategies That Will Create Great Wealth, New York, John Wiley and Sons. pp. 15-21. Sweeney,S. & Craig, R. (2010). Social Media for Business: 101 Ways to Grow Your Business Without Wasting Your Time, Gulf Breeze, Maximum Press. pp. 142-155. Tuten, T. L. (2008). Advertising 2.0: Social Media Marketing in a Web 2.0 World, Westport, Greenwood Publishing Group. pp. 50-55. Read More