Facebook and MySpace - Secrets of Popularity - Coursework Example

Innovation Management There has been a widespread acceptance among children and particularly teenagers for the social networking sites as these sites provide them with unique chances to present themselves to the world, build a group of acquaintances and friends, acquire knowledge and manage privacy (Livingstone, Sonia and Brake, David R.., 2010). FACEBOOK VS SIXDEGREES.COM In order to understand what it was that Facebook had and SixDegrees did not, let us explore the features of the two. SixDegrees Andrew Weinrech began the journey of the premier social networking sites in 1997. SixDegrees.com wanted to find out the factors behind the continuously increasing fame of the Internet. In addition to this, it also aimed to comprehend the inquisitiveness of the individuals, that is, the reason for remaining interlinked. The first ever social networking site, SixDegrees, strived to connect people by means of business networking and friendship to depict relations and linkages in a bigger community through degrees. This meant that the site presented the user with six network clouds, showing the number of people in each of your six degrees. The rationale behind this site was to help interaction among these people so that they could communicate on the basis of shared interest. Another purpose was to help a person to progress in his/her field. However, this website was short of the personalization aspects. Facebook Facebook changed the concept of social networking and made it totally based on sheer entertainment. This meant that no skill set was required to join it. It gave the user liberty to do senseless and useless things like ‘poke a friend’ or get ‘likes’ on a selfie. It gained popularity as people could play games and help each other by sending gifts or other items needed by the game player. The underlying principle behind this was again interaction and sharing of common interests. Analysis The above description shows that the reasons of failure of the initial social networking sites may include the following: 1) People thought that they do not have many friends on these social networking sites which made these networks exciting and attractive. 2) Limited activities could be undertaken at that time on these sites, besides accepting the friend requests or sending invitations to others. Besides these SixDegrees did not take any measure to become the product leader once again and thrash the new comers in the market. Thus, it was unable to beat Facebook, Google G+, Friendster, Twitter, MySpace and various related social networking sites. The firm encountered shortage of funds, as SixDegrees.com did not invest in any kind of research and development expenditures to improve and enhance their technology and hence, failed to accomplish the demands of the consumers.             The reasons why MySpace gained more popularity as compared to SixDegrees.com and Friendster indicated that it was easily customizable. Moreover, pictures could be shown, separate space was allocated for blogging, and music could also be played.             Facebook provided improved and quality security as compared to MySpace and it also provided a platform to numerous external developers which permitted them to develop certain characteristics for the website. On the other hand, MySpace was owned and operated by a specific corporate management team having an objective to create all of the required applications internally. Moreover, Facebook allowed the marketplace to evaluate the prospective features that could be included. This led to the availability of product reviews, massive expansion of the social games and group created by individuals. Furthermore, Facebook provided the opportunity to the users to easily limit the number of individuals that could have access to your profile information; this is especially for the people who want to share their personal details. Facebook started publishing advertisements of sales which assisted in getting detailed information about the geographical location, demographics of the users and various other priorities. IMPORTANCE OF INNOVATION In order to make a business economically viable and to keep it running, it is very important that innovation be made a part of it. Innovation keeps a business abreast of what is happening in the external environment and keeps an updated view of the preferences and choices of the customers (Swan, & Newell, 2000). The competitive achievement of any organization or project is contingent upon that organization or project’s administration and maintenance of the process of innovation as it suggests the aspects which contribute to the effective management of the process of innovation (Adams, Bessant and Phelps, 2006). This concept was well understood and applied by the maker of Facebook as he carefully took innovation into account to make it work to his advantage. According to Frenkel et al. (2000), assessment, measurement and benchmarking of innovation proficiency and exercise is an essential and intricate problem for various present-day companies and projects. Facebook managed to complete this process by the creation of identities which were formed by means of communication with friends and family. This was done by giving youngsters a chance to experiment the process of interaction. This is how it evolved successfully and managed to keep pace with the changing needs of its users. CONCLUSION To sum it all up, we can say that one of the reasons why the first social networking sites failed was the lack of customization and personalization provided by the sites. These sites had features which allowed for limited interaction. Other than this, at that time, the cost of internet was way too high and made it impossible for the users to spend much time on these sites. However, social networking sites like Facebook and MySpace changed the concept of social networking by giving the user complete freedom to do whatever he/she wanted to do, no matter how silly it appeared. Not only this but the users also have the freedom to play games and share their achievements. Along with this, the cost of using internet has considerably reduced and everyone has access to internet. Apart from everything discussed above, one thing which present-day social networking sites have is the ability to manage the process of innovation and that has made all the difference. REFERENCES Adams, R., Bessant, J. & Phelps, R., 2006, Innovation management measurement: A review. International Journal of Management Reviews, Vol. 8(1), 21-47. Adar, E., & Ré, C., 2007. ‘Managing Uncertainty in Social Networks’, IEEE Data Eng. Bull, Vol. 30 (2), 15-22. Cheung, Christy M.K., Chiu, Pui-Yee and Matthew K.O. Lee, 2011, ‘Online social networks: Why do students use facebook?’, Computers in Human Behavior Vol 27, No. 4, 1337-1343. Frenkel, A., Maital, S. and Grupp, H. (2000). Measuring Dynamic Technical Change: a Technometric Approach. International Journal of Technology Management, 20, 429–441. Livingstone, S. & Brake, D., 2010, ‘On the rapid rise of social networking sites: New findings and policy implications’, Children & society Vol. 24, No. 1, 75-83. Livingstone, Sonia and Brake, David R. (2010). On the Rapid Rise of Social Networking Sites: New Findings and Policy Implications. Children & Society, 24 (1). pp. 75-83. ISSN 0951-0605 Sinclaire, Jollean K., & Vogus, Clinton E., 2011, ‘Adoption of social networking sites: an exploratory adaptive structuration perspective for global organizations. Information Technology and Management, Vol. 12(4), 293-314. Sparrowe, Raymond T., Liden, Robert G., Wayne, Sandy J. & Kraimer, Maria L., 2001, ‘SOCIAL NETWORKS AND THE PEREORMANCE OF INDIVIDUALS AND GROUPS’, Academy of Management Journal, Vol. 44, No. 2, 316-325. Swan, J. & Newell, S., 2000, ‘LINKING KNOWLEDGE MANAGEMENT AND INNOVATION’, ECIS, pp. 591-598. Tidd, J., Bessant, J. & Pavitt, K., 2011, ‘Managing Innovation: Integrating Technological, Market and Organizational Change’, John Wiley and Sons. Available from http://cms.schwarzpharma.com/_uploads/media/7180_Tidd%20Managing%20Innovation.pdf Van Zyl, A. S., 2009, ‘The impact of Social Networking 2.0 on organizations’. The Electronic Library, Vol. 27(6), 906-918. INNOVATION MANAGEMENT Innovation Innovation can be defined as the real inception and implementation of a novel concept. It is the stage when an invention is introduced in the market in form of a service or a product (Fagerberg 2005) It can also be defined as the creation and application of the management exercise, procedure, framework or methodology which is technology wise new and the purpose of which is to fulfill the goals of the organization (Birkinshaw and Hamel, 2008). Innovation Management Innovation management comprises of inception of a novel product in a well-known firm and is representative of a specific type of a change in an organization. Broadly speaking, it can be regarded as the variation in state, form or standard over the period of management actions wherein change deviates from the past practices (Hargrave & Van de Ven, 2006; Van de Ven & Poole, 1995: 512). Innovation management has various aspects. It encompasses the ways for employee motivation, choice of clear cut performance parameters and formation of a favorable culture in the company (Goffin and Mitchell, 2011). The process of management is a very simple one. All a company has to do is to move away from the conventional methods of doing something and stumble upon something far from old school. In this fast paced world, a company has to make a choice whether to let its rivals come up with something innovative and then follow it or to simply become pioneers in something new (Hamel, 2006). In order to do this, a company must develop assortment of new management techniques which can boost the working of the company. In short innovation management depicts the way in which managers carry out the process of management (Hamel, 2006). SIGNIFICANCE OF INNOVATION To keep a business financially stable and to let it run smoothly, steps are taken to introduce innovation as it keeps the managers updated with the happenings in the external environment. This also informs the management about the changing needs and wants of the customers (Swan, & Newell, 2000). CONCEPTS RELATED TO INNOVATION MANAGEMENT In order to manage the innovation brought in a company, it is very important that it is managed effectively. Although there are various aspects pertaining to the topic of innovation management, this paper will discuss only three of these. These aspects are as follows: Modification of the features and needs of the consumers Escalated Competition The ever-changing business environment Modification of the Features and Needs of the Consumers The second driving force for innovation is known as modification of the features and needs of the consumers. The demographics indicate that a huge number of markets develop continuously. An example of this can be the population of the West which is growing old and their requirements will cause a change and variation in the markets of consumer goods. On the contrary, numerous other markets in Southeast Asia comprise of a large number of young individuals with varying interests and demands. There is a probability that the revenues of the countries in which the industries have flourished recently will ascend quickly. In addition to this, the demand of certain goods and services is supposed to grow at a rapid rate. Recently, the renowned Whirlpool Corporation has introduced the most inexpensive automatic washing machine named Ideale. This machine has the retail selling of $150 approximately in certain countries like China and Brazil. At the same time, the Nano Car to be launched by Tata group will leave a huge effect on the demand of the consumers (Goffin and Mitchell, 2011). Additionally, the variations in the requirements of the consumers also refer to the phenomenon that the traditional market segments are becoming extinct or fragmenting which causes the companies to make amendments in the collection of their goods and services in return. For instance, the car producers have 15 market segments to target now in the United States, whereas, this number of market segments was only 5 in the late 1960’s. The market of Henry Ford is exactly opposite to this market situation (Goffin and Mitchell, 2011). Similarly, people have greater demand for more ecologically friendly and suitable goods and services along with the reasonable value. In addition to the fundamental wants, an extra challenge of innovation to be faced by the markets is to find out the invisible needs of the consumers (Goffin and Mitchell, 2011). Escalated Competition Another driver of innovation is known as escalated competition. It is also referred to as a continuously augmenting competition. The expenditures on logistics have crashed and as a result, the domestic and local markets which were considered to be safe and sound have to encounter the severe threats from their foreign competitors (Goffin and Mitchell, 2011). In addition to this, the markets also have to cope with the competition from the organizations which are present just outside their industry of business. For instance, the bicycle industry of Japan has encountered extreme competition from a multinational foreign company named Nippon Bicycle which now possesses a major share in the market because they are providing custom made and high quality mountain bikes in accordance with the requirement and desire of the consumer. They also deliver these bikes in a very short time. The attention-grabbing point here is that Nippon is owned by Panasonic, which is an electronics company, but it has made it place successfully in the market by appropriately using is professionalism in logistics (Goffin and Mitchell, 2011). The Ever-changing Business Environment The business environment is characterized by change which can sometimes be slow and at other times it can be quite drastic. Due to the efforts made by the trade groups like North American Free Trade Association (NAFTA) and European Union (EU) have opened new avenues for international markets. Apart from this, the rules influencing particular markets are being made less strict in various Western countries (Goffin and Mitchell, 2011). Various companies are following the policy of retrenchment whereby they reduce the excessive expenditures. So far they have been able to considerably reduce their overhead expenditures. Diminishing returns are brought by continuous focus on increasing efficiency. Instead of cutting down expenses, companies are now looking for new product and services which can reap increased revenues and profits (Goffin and Mitchell, 2011). The economic crunch has specifically influenced the entry of innovative products. Although companies may considerably reduce the stream of funds towards innovative products to reap the revenues but it must be appreciated that companies which continuously invest in the research and development for innovative products are able to survive in the long run (Goffin and Mitchell, 2011; Mikkola, 2001). Another important aspect in formulating an innovation plan with regards to environment comprises of a comparison between the way a company must operate and the way its stakeholders want it to perform. The discrepancy between the two tells the company where innovation is required (Goffin and Mitchell, 2011). SMARTPHONE AS AN INNOVATION Smartphone is the new rage these days. Everyone has one and everyone wants a better one-a phone which has all the latest apps and software which can technologically be possible. Almost everyone can be seen carrying it and showing it off. With the ‘Smartphone fever’ on the rise, the mobile companies are also straining every nerve to come up with latest technologies, cut down prices (Ingenbleek, 2010) and make it sleek and stylish. In order to encourage customers to buy Smartphones, the producers offer these phones at a reasonable price. This competition of manufacturing the most reasonably priced smartphone will form a varied form of innovation- something which is unprecedented (Danova, 2014). The companies will strive to come up with exclusive features to give their product an edge over other products. These manufacturing companies will spend a continuous stream of funds to make their product better (Danova, 2014). If a particular company comes up with a unique feature then the entire market directs its efforts towards the attainment of that particular aspect. In the meantime, manufacturers of reasonably priced phone will employ competency and innovative thinking to include the best smartphone competences in their phone sets (Danova, 2014). CONCLUSION The analysis of smartphone as an innovation reveals that a business dealing with the manufacture of smartphones needs to consider factors like increased competitiveness, requirements of the customer and the business environment which is always in the state of flux. Due to the technological changes and advancements, the needs and preferences of the smartphone users also change. This means that as soon as a new model comes in or a new feature pops in, the user naturally goes for it. The innovation manager must bear this in mind while chalking out an innovation strategy. This aspect is closely linked with the aspect of varying business environment. The change in business environment can sometimes be quite unpredictable. The external factors influencing the manufacture of smartphone are also dependent on its stakeholders. In such conditions, it is important for the company to deviate from its traditional course (Hamel, 2006) and opt for innovation which can help it survive in the long run. REFERENCES Danova, T., 2014, Cheap smartphones will create a new breed of innovation. Business Insider. Accessed on April 23, 2014 from http://www.businessinsider.com/cheap-smartphones-will-create-a-new-breed-of-innovation-2014-4 Fagerberg, J., D. Mowery and R.R. Nelson (eds.) (2005), The Oxford Handbook of Innovation, Norfolk, Oxford University Press. Goffin, K., & Mitchell, R., 2011, ‘Innovation management’, New York. Hamel, G., 2006, The why, what and how of innovation management. Harvard Business Review. Hargrave, T., & Van de Ven, A. 2006. A collective action model of institutional innovation. Academy of Management Review, 31: 864 – 888. Ingenbleek, P., Frambach, R. T. & Verhallen, Theo M. M., 2010, ‘The role of value‐informed pricing in market‐oriented product innovation management’, Journal of Product Innovation Management, Vol. 27, No. 7, 1032-1046. Mikkola, J. H., 2001, ‘Portfolio management of R&D projects: implications for innovation management’, Technovation, Vol. 21, No. 7, 423-435. Swan, J and Newell, S., 2000, Linking Knowledge Management and Innovation. ECIS Proceedings. Paper 173. Accessed on April 23, 2014 from http://aisel.aisnet.org/ecis2000/173 Van de Ven, A. H, & Poole, M.S. 1995.Explaining development and change in organizations. Academy of Management Review, 20: 510-540. Read More