Impacts of Smartphones on Businesses - Essay Example

Impacts of Smartphones on Businesses Name Institution Impacts of Smartphones on Businesses A rapidly changing digital media environment characterizes the contemporary society. This has been on the forefront because of the proliferation of devices used in consumption of content at work, home, and any other place. Recently, consumers were depending solely on their laptops and desktops to connect to the internet. However, the current developments in information technology have enabled users to access a wide variety of digital content over diverse devices (Ling, 2004). The introduction of Smartphone and tablets has rendered consumers as digital omnivores. This has been depicted by the type of content consumed as well as the ways of consuming this content. A very different landscape has been created by cross-platform consumption, and this requires insights for individual usage, as well as, the nature of their complementary use. According to Kaputa (2012), there are many questions, challenges, and opportunities faced by consumers, which accompany the growth of fragmented digital device diet. For instance, how are devices changing media consumption habits of consumers? How can one use digital devices in a meaningful way? The digital media is ever evolving, and where one manages to answer the above questions and more, he or she can maximize the use of Smartphone in conducting businesses, and other activities. An example of a field that is undergoing rapid changes because of Smartphone usage is food packaging. This field is evolving beyond a system of simple delivery where packaging space was mainly occupied by functional information such as ingredients and branding (MobileReference, 2007). The digital world presents opportunities for companies to pass messages about brands, as well as engaging consumers in ways that traditional marketing strategies did not. This allows companies to deliver their messages effectively and efficiently. Food brands for perishable foods or dietary supplements are actively using social media and digital economy to connect with consumers. The trend in food and beverage packaging is characterized by the presence of quick response(QR) codes. Any consumer who has a Smartphone with a QR reader can scan a code in a shop and be directed to a website or a social media section containing variety of information concerning the product. This can be a mix of content about the product or videos explaining traceability of a product or cooking recipes (Ilyas & Ahson, 2006). This information is helpful to consumers, because some of them could be first timers. For instance San Pellegrino launched a campaign in early 2012 that involved the placement of QR codes on their bottles of water. When consumers scanned the QR code, they got information about the beauty and history of Bergamo, Italy, the place of origin of the water. Another example is the QR codes placed by Heineken on their beer bottles. This code provided a unique way of directing consumers to download a new app. These two examples are just part of the many strategies of conveying useful information to consumers. However, QR codes convey useful information for educational or entertainment purposes in a manner that is fun and interesting. How Smartphones are changing the way people shop There are many ways to connect consumers to a brand, and one of the ways has been to ask for feedback from consumers about a product via social media. For example, Mountain Dew engaged consumers in a contest that required them to provide a new packaging design, whereby the top winner received an Aple Mackbook pro. Small and large companies engage consumers at different levels by maximizing on the use social media, (Kaputa, 2012). Smartphone in particular allow consumers to carry out a range of activities, and to use applications to gain information, as well as, for entertainment purposes. Most companies are thus creating a successful social media strategy rather than simply starting by placing a Facebook or Twitter profile o the packaging. The buying behavior of consumers in the contemporary society is characterized by the use of mobile apps. Mobile apps are being used for diverse activities such as checking the origins of produce, the pesticide levels, comparing prices etc, without leaving a particular store. This has been made possible by the use of shopping applications that assist consumers in their decision-making processes (Ilyas & Ahson, 2006). For instance, some applications assist consumers to make health conscience decisions in their shopping habits. There are apps that are being developed based on an understanding of the buying behavior of consumers, thereby delivering targeted offers that reflect on when, and how they shop. This works to the advantage of the buyers and sellers. For instance, there is a mobile app by Gaia Herb called ‘meet your herb.’ This app allows consumers to enter a ‘herb id’ that is found on the back of the product they buy, and they will find all information pertaining to the usage of the herb, and the right users for it. The most common application that has been used for business purposes has been email. However, mobile application are growing in usage because they are used to address specific needs(Ling, 2004). For instance, business entities use applications to address sales force automation, to calculate logistics, to provide customer service etc. Smartphones are effective in accessing back-end data sources thus increasing efficiency and efficiency in carrying out roles and responsibilities. The diversification of apps thus creates many opportunities for companies and business entities to maximize on their efficiency. Smartphones are used by large and midsize organizations to boost their activities towards achievement of goals and objectives. The use of more than just the C-suite guarantees increased productivity for an organization. Smartphones have many advantages, for instance they assist in saving costs and time, (OECD 2012). This can be seen in a scenario where a salesperson enters data into a mobile platform from whichever place rather than travelling back to the office to do so. Another example is where a field service technician uses smartphone GPS app to optimize a repair route. It is important for organizations to quantify these productivity gains, and they can do so easily. Organizations enjoy mobility gains that are based on increased business opportunities. These can be categorized into better customer service and shortened sales cycles. It is not easy to quantify such benefits, but the bottom line is affected mostly. In this regard, effectiveness and efficiency is increased in the organization. For instance, Ling (2004) argues that apps allow service representatives to attend to the queries of customers without having then to visit the organization in person, and this makes a difference between keeping the customer and totally losing him. The customers can also access data immediately through Smartphone apps. In this regard, the opportunities of sales increases. For instance, a realtor who provides photos of his houses is likely to have his customers buy them. As mobile applications become sophisticated, they require powerful devices to support them. In addition, strict security controls are required for back-end data access. New devices are released daily, and the Smartphones are becoming more sophisticated, (OECD 2012). This means that a midsize organization should be careful when opting for a particular smartphone. The first step involves mapping out the applications that an organization may want to implement for present and future times. Questions that need to be addressed at this point depend on the type of application. For instance, one may want to know whether an application requires a VpN support. The technical requirement that might need to be addressed at this point can be the concerns of the mobile device platform. In this regard, one may want to find out whether the platform can handle multi tasking, its security, whether it is scalable etc. Buying habits of consumers The increase in the use of Smartphones has led to the pickup in retail sales, although the rate is slower than expected. This means that customers are cautious of their spending habits. This cautiousness in shopping has led to an increase in Smartphone shopping. According to analysts, this strategy of cautious shopping based on use of Smartphones is affecting retail earnings because the buyers opt for the lowest prices (Karch, 2010). The buyers use Smartphones to search for the best prices, and the aspect of price the core determinant of what they opt for. In this regard, the customers prefer the lowest retail prices. The economic crisis in the contemporary world pushes customers to search for means of minimizing costs. Consumers use Smartphones and the internet to search for the lowest possible prices. It has come to a point where consumers buy what they need only (Schropfer, 2010). This is perpetrated by careful and cautious spending habits of consumers at present times. The use of apps and Smartphoones facilitate the process of searching for information. Consumers thus spend more time comparing prices, and collecting information about a particular product, before making a decision to buy. Smartphones assists such individuals to gather information concerning products and their prices in different shops, without moving from shop ton shop. This therefore saves in costs and time. Influence on the way people shop The in-store shopping experience is transformed significantly by Smartphones. According to Zheng& Ni (2006), a significant number of mobile users use their phones to access real-time information to enable them to compare prices, find retail locations, to search for coupons and to access photos of products. This information is changing the shopping experiences of customers, as well as the retail experiences. This trend is changing the consumer shopping landscape as well as, the digital technology service aligned to it. Many developments are taking place thus the services continue to improve from time to time. The next frontier has been labelled as ‘visual info-gratification.’ This represents an emerging trend for 2012, which has been termed as ‘point –know-buy, (Mittal & Gupta, 2010). The technology is available already, but developments are inevitable in a field that is expanding fast. This technology allows the users of Smartphones to bypass a text, and to point a phone literally at a product, in order to find out about it. The information that customers get allows them to make the best decisions concerning what, when, where and how to buy a certain product. This is an effective way that enables quick decision making that best suits individual needs. There are various apps that are coming up, and the services are improved significantly. For instance, an app which allows one to trace the shop of a cloth that is being worn by another individual in front of him. This app also allows one to search for the cheapest price available for that cloth, and how the sign or label in that cloth can be translated to a different language (Kaputa, 2012). In this regard, the shopping behavior of consumers is facilitated. In addition, the shoppers arrive at their desires and best options without necessarily travelling from one shop to the other. The provision of information facilitates decision-making processes of shoppers, and thus their shopping skills are boosted. As a result, shoppers become keener in what they buy, as they place their needs, and preferences first. How Smartphones impact on the way businesses should be organized The trends marked by the increase in the use of Smartphones in shopping may soon render department stores as big social centers, collection centers where people will collect the items they ordered for online. Retail shops should thus watch out for the shopping habits of consumers that are changing at a significant rate. This is perpetrated by the developments taking place in the information technology and communications industry. As a result, smartphones that are more sophisticated are released, as well as, new apps that impact greatly on shopping and buying behaviors of consumers (Karch, 2010). According to researchers, smartphone shopping contributes significantly to slowed retail recovery. However, other factors such as gasoline prices have impacts on the slowed retail recovery. In this regard, buyers prefer to research products, and to compare prices before visiting the designated shop. Retail shops should watch out for the developing shift towards smartphone shopping. This is because consumers continue to search for lowest prices of goods and services. In this regard, the profit margins will be reduced significantly for big retailers. This adds more pressure on retailers who now have to price down their products to lower profit margins in order to maintain customers (Faas, 2009). These impacts will be felt greatly in small retail shops. This is because the large retail chains focus on quantitative production rather than focusing on high –profit goods, as seen in small retail shops. The impacts of buying behaviors should thus be factored in decision-making strategies as well as the planning stages. Faas argues that retail shop can maximize on the opportunities presented by the increased use of Smartphone to better services, and attract customers eventually. In as much as customers are running for the lowest prices in the industry, it is important to note that some of them will be interested in the quality more than the price. It is thus important to learn the buying behavior of customers before opting for a particular business strategy. Consumers have different characteristics which range from tastes, to preferences, price, age group, etc. It is evident that the current trend in retailing is online shopping. This trend is weeping the whole globe, and it is penetrating into organizational cultures. Ilyas & Ahson, (2006) argue that smartphones are part of a growing subset of a technology category, and it is popular in the orporate environment. Most companies are adopting the use of mobile applications to boost productivity and customer services. In most companies, the management gives employees smartphones. However, an upcoming trend will see the employees entering organizations with their own smartphones. This came up because some employees prefer a single device for personal, and corporate activities, rather than possessing multiple handheld devices. On the other hand, employers respond positively to such wishes, and this trend is likely to continue. Medium-sized businesses are known for taking up individual-liable cellular plans. In this regard, the businesses do not force employees to wait for long approval processes in order to acquire corporate devices (Mittal & Gupta, 2010). Therefore, they encourage employees to see their smartphones as potential work related enhancers of productivity. However, the need to implement a simplified and standardize strategy for all employees still stands. It is important to implement this strategy to ensure that all employees benefit from the policy in terms of support, productivity, security, and cost control. In this regard, all employees who enter a company with their personal smartphones to be used for corporate purposes should use the designed strategy purposed to standardize all activities, as well as, to guarantee security. In conclusion, smartphones continue to impact greatly on the way businesses are conducted now and in the future. The retailers and other owners of businesses should watch out for the trends in the industry to maximize on the opportunities available, and to avoid pitfalls. The developments taking place in the information communication and technology industry require business entities to keep up with the emerging trends to maintain customers. Most companies have adopted the use of smartphones in improving business endeavors. The emerging trends indicate that employees will soon be entering companies or organization with their individual smartphones for corporate use. The use of smartphones guarantees significant boost in productivity thus increased business returns. Smartphones have impacted greatly on the buying and shopping behaviors of consumers. The work of shopping around has been lessened by the availability of codes that provide information about products, their prices, contents, recipes, etc. In this regard, consumers do not travel to designated shops in order to get information necessary for deciding what to buy; this information can be obtained right at their comfort zone. This has made consumers to search for the best shops with the lowest prices. References Faas, R. J. (2009). IPhone for work: Increasing productivity for business professionals. New York?: Apress. Ilyas, M., & Ahson, S. (2006). Smartphones. Chicago, Ill: IEC. Kaputa, C. (2012). Breakthrough branding: How smart entrepreneurs and intrapreneurs transform a small idea into a big brand. Boston, MA: Nicholas Brealey Pub. Karch, M. (2010). Android for work: Productivity for professionals. New York: Apress. Ling, R. S. (2004). The mobile connection: The cell phone's impact on society. San Francisco, CA: Morgan Kaufmann. Mittal, K., & Gupta, S. (2010). BlackBerry for work: Productivity for professionals. New York: Apress. MobileReference, . (2007). Nutrition Study Guide. Boston: MobileReference.com. Organisation for Economic Co-operation and Development. (2012). OECD internet economy outlook 2012. Paris: OECD. Schropfer, D. W. (2010). The smartphone wallet: Understanding the disruption ahead. Red Bank, NJ: TLG. Zheng, P., & Ni, L. M. (2006). Smart phone and next generation mobile computing. San Francisco, Calif: Morgan Kaufmann. Read More