management information system BY tenik183 Introduction In today business environment, Web 2. 0 was created and became one of the accepted tools and most prominent business model for information system.
As a second phase of web evolution, Web 2. 0 has successfully transformed in online public commons from one-way communication (Web 1. 0) to two-way communication which information is sharing for people around the world.
(Laudon, Laudon, 2012) Web 2. 0 has four defining features, which are interactivity, real-time user control, social participation (sharing) and user-generated content.The technologies and ervices behind these features include cloud computing, software mashups and widgets, blogs, RSS, wikis, social networking sites, social bookmarking and podcasts. Nowadays, many organizations are attracted by the emerging social media sites, and have invested and integrated into the value-add function of the business in order to facilitate interaction and collaboration with stakeholders.
Although Web 2. 0 technologies are becoming mainstream both in consumers and business environment, some of the organization still remain doubtful about the implication of welcoming social network tools into the workplace.The compatibility and adaptability issue with existing system, the adoption cost, and maintenance issue are some of the main concerns faced by the organizations. However, there is no getting away from the fact that the technologies are here to enhance and help to provide the organizations with competitive strategies.
1) Investigate the effects that social networking sites may have within the business environment. The rising of online social networking sites has rooted in the emerging of Wed 2. 0. Among the enormous popularity of social networking sites are Facebook, Twitter, Myspace, LinkedIn, Friendster, and Flickr.With that reason, many organizations are using them as a method and thought that the widespread adoption of social networking tools in peoples’ personal lives can migrate to the professional environment where they can be used to create unprecedented knowledge, to promote their business and take advantage of value created by users. (Exhibit 1) Organizations need to understand that how critical it is social networking can effect the business environment such as the brand, skill set and marketplace.
According to the Andriole’s research (2010), Web 2. 0 technologies include social networking sites (i. e.Facebook, Twitter, Myspace, LinkedIn, Friendster) can help to improve collaboration and communication within most companies. (Exhibit 2) It can help to facilitate and coordinate the discussions, sharing information and idea between employees, suppliers and customers. With these social networking sites, employees are allowed to contribute to discussion, planning, making decisions and share latest information. Furthermore, it also can help to break down the geographical boundaries and time to speed up the interaction between countries which will reduce the cost of interaction, travelling and operations.Through such ersonnel base by connecting and interacting with friends of friends and so forth.
Organizations are able to communicate with customers more effectively and stay up to date with the “buzz” on social networking sites that previously only available through telephone or email. Thus, with social networking sites will allow organizations to improve communication and productivity by disseminating information among different groups of employees in a more manner, resulting to cost-effectively increase their productivity and, ultimately their competitive advantage. Social networking will also be the key to employee excellence.People think more lobally as when their contact lists become increasingly international. They used social networking sites to get more information and knowledge in their interest topics and also from their friend’s comments. In addition, they will also have access to multiple external advisors or mentors from different industries. Hence, social networking is a self-development tool that can be used from smart phone at anytime, anywhere, any place.
Social networking sites such as Facebook, Friendster, Myspace, and Twitter also have high impact in viral marketing due to their characteristics of cost effective compare to other traditional media.According to Kotler, et al, (2012), viral marketing is another form of Word of mouth’ that encourages organizations to pass along company products and services or audio, video, or written information to others online to increase effectiveness of marketing. (Exhibit 3) It is much more cost effective compared with traditional direct marketing such as catalogs, direct mail, door to door sales and telemarketing. Furthermore, organizations can easily create a presence for their corporate and promote engagement with the brand by building communities for customers to actively participate in conversations.Although it is not a proven ethod, the power of influence is ever present in the discussion, which is what social network tools add to viral marketing. (Exhibit 4) Based on Andriole’s research (2010), customer relationship management can be improved through social networking sites such as Wikis and external customer blogs. However, there are also some negative impact and risk that are associated with social networking sites.
Organizations can use Web 2. 0 technologies as advantage but also can lose control over the content and conversation in public. The nature of social networking sites is that they are “well” social, so things get shared.The uploaded information is easily accessible among public and competitors. And one small mistake can morph into a public relations nightmare. Thus, the hostile reaction from competitors and dissatisfied customers may leads to problem with image.
Social networking can be a big waste of time and affect the productivity of employees in the workplace. Employees may spend too much time on social purposes such as networks and blogging rather than on work related contributions, thus create distractions and reduce productivity and cause serious resources waste with regards to the utilization of servers and networks.Employees might accidentally downloaded unwanted spywares and opens up the possibility for hackers to commit fraud and launch spam and virus attack resulting serious data and identity theft, and jeopardize the security of internal IT system. technology of Web 2.
0 improves and advances, social networking sites have an even bigger effect on business environment, in both positive and negative. 2) Discuss the types and forms of businesses that may deploy these networking sites to achieve competitive advantage.In almost every industry, there are some firms do better than most others, there’s almost always a stand-out firm. In pure online retail, Amazon is the leader, in off-line retail Walmart, the largest retailer on earth, is the leader. In online music, Apple’s iTune is considered the leader with more than 75 percent of downloaded music market, and in the related industry of digital music players, the iPod is the leader. In Web search, Google is considered the leader (Laudon, Laudon, 2012).
Firms that “do better” than others are said to have a competitive advantage over others: They either have access to special resources that others do not, or they are able to use commonly available resources more efficiently – sually because of superior knowledge and information asset. In any event, they do better in terms of revenue growth, profitability, or productivity growth (efficiency), all of which ultimately in long run translate into higher stock market valuation than their competitors (Laudon, Laudon, 2012). With the fast development of Internet communication technologies, the businesses need to exploit how Web 2.
technologies can be operated and used to develop new ways of profiting and create competitive advantage in today turbulence environment. According to the McKinsey Global Survey results (2009), nearly 1,700 xecutives from around the world, across a range of industries and functional areas, 69 percent of total respondents has reported that their companies have gained measurable business benefits in terms of more innovative products and services, more effective marketing, better access to knowledge, lower cost of doing business, and higher revenues. Exhibit 5) This survey turned up strong evidence that these competitive advantages are translating into measurable business gains (Business-to- Business, Business-to-consumer) such as greater ability to share ideas, improved ccess to knowledge experts, reduced costs of communications, travel, operations, decreased the time to market for products and have had the effect of improving employee satisfaction.
Successful companies not only tightly integrate Web 2. 0 technologies with the work flows of their employees but also create a “networked company’ linking themselves with customers and suppliers through the use of Web 2. tools. Some professional services such as business consultants, private sectors, public relations firms, professional firms and so forth also anticipated the Web 2. 0 revolution.
They sed LinkedIn, the world’s largest professional network to exchange information, ideas, and opportunities among colleagues, clients and partners. (Exhibit 6) It is also the most convenient way for business networking, such as building personal connections and stay connected with peers who work in similar Jobs.Furthermore, LinkedIn also offers corporate recruiting solutions to assist professional services in finding the right candidates in today tough hiring market. (Exhibit 7) Beside LinkedIn, they also use Twitter and Facebook to create a professional page to market their business, build web traffic and, no doubt, leads. As such, social networking sites will industry is also undergoing significant and rapid transformation in recent years due to the emerging of Web 2.
0.Implementation of new business model is required to deliver innovative solutions to attract, retain and monetize customers who spend most of the time online, especially on social networking sites. From the personal branding strategies to web marketing approach, celebrities as well as companies are using social networking sites such as Facebook & Twitter as a platform for their PR campaign. The advancement in digital technology also provides an opportunity for ajor record labels and artists to upload tracks to Myspace Music & Music Play On for fans to listen. Exhibit 8) These tools help to connect with the existing and new fans from all over the world. In summary, a lot of organizations are using Web 2. 0 technologies such as social networking sites (Facebook, Twetter, Myspace and LinkedIn) to achieve their competitive advantage to compete in their business environment.
3) What extensions could you bolt on these existing networking sites to make them more attractive to business users? Web 2. 0 is a growing popularity of phenomena and is currently the subject of much debate in public circles.It is currently assessed as a measure to enhance interaction and communication, increase organization and employee performance, and organization learning. There are a lot of extension could bolt on to these existing networking sites to make them more attractive to the business users. Today, most of the companies are using Web 2.
0 tools for internal and external purposes. Web 2. 0 applications offer the opportunity to develop networked exchanges and consolidate knowledge.
In this way, Web 2. 0 tools offer recognizable advantages over Web 1. communication and traditional knowledge management. According to the Andriole’s esearch (2010), (Exhibit 9) Web 2. 0 technologies such as social networking sites can lead the way toward improved knowledge management system which will become a major repository for frequently used knowledge and helps to extend internal core competences of an organization.
Knowledge management has become an important theme at many large business firms as managers realize that much of their firm’s value depends on the firm’s ability to create, share, retrieve, organize, leverage and manage knowledge.All these can be realized by using social networking sites such as Facebook and Twitter, or authoring tools like blogs and wikis. They can integrate into their organizations IT structures and business processes to create interaction, increase speed of access to experts as well as enhance dynamic knowledge exchange between those who need to seek knowledge and those who hold the knowledge. The principles of open communication, collaborative culture and bottom-up process of knowledge sharing have to be developed and supported by all employees in order to take the most out of social networking sites.Based on Andriole’s research (2010), social networking sites also can be used by trainers in any organization to enhance he effectiveness of their traditional training strategy (Exhibit 10). Even within the traditional formal learning environment, these new tools are being used by the trainers or educators to ensure that formal learning is becoming more participated, forum and find out the participants or trainee requirement so that the trainers are able to customize the training program and prepare better presentation to meet their needs.Human resources department in any organizations can use social networking sites as a tool to find suitable candidates.
Nowadays, more organizations have used social etworking sites such as Facebook and LinkedIn as an effective means of finding right candidates to fill the vacancies. LinkedIn provides data on a person’s skills, qualification, experience, previous roles and business contact that is valuable to an employer for further evaluation. Beside the social space, organizations need to use this tool in a more effective way to take on the opportunities arise from social networking sites in obtaining more suitable candidates.More than half the internet user population have Joined social network and created a massive online audience as large as television that is attractive to arketers. (Exhibit 1 1) Social networking sites such as Facebook, Myspace, Twitter, and thousands of others become a major platform for e-commerce which can buy online.
E-commerce refers to the use of the Internet and the Web to transact business. E-commerce remains the fastest growing form of commerce when compared to physical retail stores, services and entertainment.The breadth of e- commerce offerings grows, especially in the services economy of social networking. Businesses must adapt and realize that social networking and e-commerce play a significant role in connecting with customers and growing an online business. In summary, the social networking has changed the ways of doing business with their current and potential consumers.
Organizations are aware the need to incorporate the web-based technologies in order to enhance interaction and communication, increase organization and employee performance, and organization learning.It is very important that employers must recognize and understand the potential of the latest technologies innovations and make effort to incorporate them at a corporate strategic level. No matter what, they should not ignore that social networking is here to stay and provide opportunities for globalization. REFERENCE Book Twelfth Edition, England: Pearson Education Limited. 2. Kotler, Philip.
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ian. ru/images/ Exhibit 2 Source: Stephen J.Andriole, “Business Impact of Web 2. 0 Technologies” (2010) Exhibit 3 Source: Nissan Malaysia (Facebook) Exhibit 4 Source: Stephen J.
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com/music) Source: Music Plan On Home Page (http://en. musicplayon. com/index? ) Exhibit 9 Exhibit 10 Exhibit 11 Source: Digi Facebook (http://www. facebook. com/#! /myDiGi)