Social Business Networks Within e-Business Marketing - Essay Example

Social Business Networks within e-Business marketing Abstract Business networking in e-marketing holds a pivotal role. This report analyzes the nature of business networking, the potential, various business models, and it finally discusses the aspects of a successful business networking model. The methodology uses secondary sources such as journals and books while discussion and findings analyzes results. Towards the end the conclusion draws upon the various aspects of business networking and recommends an effective business model. Executive Summary Businesses that are un-engaged in online community and business networks will probably lose in the long term. The future belongs to online networking platforms. The aim of this study is to investigate what and the business model includes and what would be a successful business networking platform. Transparency, engagement and nimbleness are the hallmarks of business networking. Moreover, the tools available online are beneficial for everyone but what really matters is how a company modifies them according to their business environment. LinkedIn is a great example that brings together the best of the physical and online worlds together there is no other platform that can compete with LinkedIn in terms of connecting businesses, professionals, individuals and customers. Contents Introduction 3 Area of investigation 3 Background 4 Aim and Objectives 4 Methodology 5 Findings 5 Alternative e-business methods 9 Discussion and Analysis 10 Conclusion 11 References 12 Appendixes 15 Introduction The Internet has made it easier for businesses to reach a diverse range of people. Social media and specific business networking help global collaboration and sharing of knowledge. A number of social media applications in e-business and e-commerce emerge every day. This sends shockwaves to the ecosystem of businesses around the world. The businesses have to react in real time to these trends to keep up to date. Nowadays almost everyone is connected through an online resource network. Smartphones have unleashed the true power of social networks. People are not confined to their desktop or monitor screens anymore. They can take their online networks and apps anywhere. Social networking accounts for about 22% of the people's time spent online. Social analytics has made the individual people more intelligent by learning from interactions and delivering their advice. It is only natural for businesses to replicate such a model that gels in with these trends. Whether it is to connect with business partners or to reach new clients. Various business models serve this purpose, but the true success lies in how a business uses these tools/models effectively to achieve their identified goal(s). Area of investigation Even though there has been a lot of talk about the business networking and e-commerce, however, there is not enough study that gauges various business models to measure their efficiency and usability. Despite the widespread adaption of various business modeling techniques, no research has been performed on its effectiveness (Lucassen et al., 2012). For this reason, this study becomes necessary. This paper first tries to understand the impact of social networking in e-business platforms. It identifies the key factors that make it such a powerful force. Then it looks at the various business models to understand how they serve business needs or make the most use of the opportunities that social networking has to offer businesses. Background The Internet has changed the way people communicate and do business. E-Business gives the perfect platform for small businesses to compete with big names through networking. Different authors have discovered the emerging common themes where scholars study the business models (Zott, Amit & Massa, 2011); 1) Focus on being the new unit of analysis 2) That emphasize a system-level or holistic approach to explaining how companies do business 3) Activities of the firm in conceptualizing business models 4) Business models themselves explain how they create value (something more than just the redundant wheel of theory and implementation) But these are generalizations. Specific models or strategies would be helpful in measuring the performance. Aim and Objectives The aim of this paper is to analyze social business networks in e-business marketing. The first step analyzes the potential of these networks and what it can achieve for businesses and customers. Then it looks at different business models that are being applied in social business networking to help reach that potential. The overall purpose of the paper is to identify a business model that is closest to reaching its true potential in terms of collaboration and knowledge sharing. Methodology A range of academic journals and books are studied to understand the nature of the social network in the context of business. The focus is on secondary sources to comprehend the trends in business networking that strengthen the e-business marketing. The purpose is to sift through various business models that have been analyzed by scholars and researchers. And then try to focus on the most successful business model (or business networking platform) that has been serving both the businesses and the customer. Findings Issues of e-business design, access and management for integrating business operations The theory of e-marketing is in its seed stage, and a need for a well-established study is needed that can be considered the stepping stone towards a concrete theory building of e-marketing (El-Gohary, 2013). For this reason, it is appropriate to discuss many theories to understand the impact and productivity of various business models. There is hardly any business in the world that would not benefit from business networking. The tourism industry has been transformed with the advent of the internet. Social media and IT play a significant role in shaping the tourism destination marketing (Kavoura et al., 2013). E-business allows an online company to expand easily to other countries through the convenience of Internet (Chan and Yazdanifard, 2014). This is the hallmark of business networking. This benefit has given companies access to international markets. Even though there are many tenants of social networking in e-business IBM identifies three main categories (IBM Software Group, 2011); Engagement: A social business connects many people with an interest or expertise. It is easy to form networks (whether one is an individual, a customer, partner or a team) to tap into new sources of innovation. It helps become more creative and expand into different regions and opportunities. This connection or network is the foundation of trust factor across business connections. Becoming part of this network shows a willingness to share information. The more elaborate and diverse the pool is greater its power. The engagement makes the network more collaborative and provides the tools for the members that interact with each other and solve business problems. Transparent: A social business aspires to eradicate unnecessary boundaries between experts. This is true inside the company as well as in the marketplace. It welcomes the tools and business models that strengthen knowledge sharing and new ideas from different sources. This is how the employee sentiments or processes become efficient by gauging and sensing the customers’ mood. Utilizing analytics and social connections can be effectively used to solve business problems and acquire new customers. Nimble: A social business is nimble and reactive in real time. It has to make use of social networks and adjust its business strategy. A social network gets insights in real time to make more logical and beneficial decisions. The information flow is not one-way. Business networking is also a tool for communicating information, promotions, marketing materials quickly to the customers. Access on mobile devices makes this strategy two times more powerful in terms of connecting and working with the business partners, as well as communicating with the customers. Cloud technology makes it even more efficient where time and space constraints turn into opportunities. It also means that an agile business can tap into the most lucrative resources that deliver the greatest value. The business is more adaptive to the marketplace changes. The marketplace dictates the direction of business networking. Web programming, website design, portals, Web servers, apps, data services, page design are all matters of crucial importance for anyone looking for a business or a career in e-business (IRMA, 2002). These technologies keep frequently changing. If a company is not socially engaged online, it will have a hard time in connecting with clients and sharing knowledge with other businesses in future. Contemporary online business models and their evaluation There are many online business models to evaluate. The open business model is among the most popular and easy to incorporate. The business model must be adjusted from a prototype to the scale of the subject company, many business models only perform well when there is a limited number of trained professionals working for a common goal (Chesbrough, 2012). One theory might serve one firm but fail in another. The nature of the business dictates the kind of networking. LinkedIn is a great example of B2B marketing as it is a social platform for professionals where they can get together, exchange information about marketing trends and business strategies (Brennan, Canning and McDowell, 2014). It serves well for other businesses by facilitating their networking. Business models are supposed to modify gradually over time responding to the changing markets, legal structures and technologies (Teese, 2010). Therefore, a contemporary business model needs to be updated to stay beneficial. There are some common industry terms regarding business networking (IBM Software, 2014); Enterprise 2.0 It is focused mostly on collaborating behind the firewall between partners and employees. When a large company effectively employs this, it appears to shrink in terms of communicative ability among the partners and employees. Social CRM It is a market-driven customer oriented strategy where a business marks the customers as its focus point that dictates the business strategy. Social media: It is very popular among common users. They spend significant time on Facebook and Twitter, etc. Every social medium has its accountability and regulations. Business networking alone can only achieve so much but by harnessing the power of social media the growth and reach of the business can see new heights. Social software: blogging, messaging, commenting, file-sharing, forums, tagging, etc. are all the set of social tools that can help build a more personal and broader business environment. Alternative e-business methods Reseller e-business arrangements are modifying the nature of channel relationships (Osmonbbekov and Gruen, 2013). Crowdsourcing is another factor that is rapidly changing the industry landscape. This has been a dominant trend by providing a level playing field for skilled professionals around the world. It will be like shooting in the dark if different strategies are discussed without seeing their performance. To define the performance for Internet websites, e-business and e-commerce platforms the e-metrics is used (Buhalis and Mamalakis, 2015). And a great e metrics is how safe clients and as professionals feel while interacting online. Please see appendix for business model and design flow chat. Online shopping is gaining popularity as a transaction medium. But this popularity of online purchase has also triggered genuine concerns about Internet safety (Hartono et al., 2014). This is even true in business-to-business transactions which is the hallmark of business networking. E-business dictates the range of issues that affect the organization. These issues include adopting technology choosing the business model, economics, marketing strategy, legal aspects and managerial strategies for competing in the market (Combe, 2012). It means that a company needs to hone these tools to get the maximum benefit out of these elements. Discussion and Analysis The rapid growth of social networking and mobility has blurred the boundaries separating individuals. It has gained tremendous power that the economy demands initiating or expanding e-business projects (Turban et al., 2015). People connect with others to share knowledge and discover new information and accomplish tasks in an efficient manner. Trust plays an important role in e-business (Rahimnia and Hassanzadeh, 2013). Growth, innovation, and productivity have taken new meanings in the wake of social media and applications that enhance business productivity. Business networking in e-business marketing encourages people, customers and partners to build trust relationships. Smart organizations have already embraced the power of networking online to get closer to their customers. For a business to build a business network is not only about incorporating collaborative tools and hoping that the results will follow but also the way international marketing is interpretive for a company depends on the level of involvement in the global marketplace (Doole and Lowe, 2012). The networking task is a long-term strategy and has payoffs accordingly. Corporate leadership and strategy jump in on the networking agenda. Business networking is not an object that a corporation needs to take from the shop and put it in its business. The companies have to design and craft the methodologies tools and partners that will carry this mission in the long term. LinkedIn is the fastest growing professional network that allows its user to build contacts, look for jobs and seek clients (HGST, 2014). The way LinkedIn connects business professionals is probably the best model to follow for any business looking to expand online. Conclusion As the people around the globe are connecting with each other vivid shifts can be seen on the online platform. The ways people interact, form relationships and make business decisions are drastically changing. The consumers have now considerable power in shaping the brands. The companies that do not necessarily incorporate technology even their employees now demand social tools for the workplace. Some might even go beyond the norms in demanding the IT department to assist with them in providing these tools. This is a transformative time; all the major trends of information sharing and business are going through radical changes. The businesses who want to stay away from the social media or forming online networks would probably become obsolete in the near future. References 1. Brennan, R., Canning, L., & McDowell, R. 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Implementing EC Systems: From Justification to Successful Performance. In Electronic Commerce (pp. 647-689). Springer International Publishing. 19. Zott, C., Amit, R., & Massa, L. (2011). The business model: recent developments and future research. Journal of management, 37(4), 1019-1042. Appendixes Elements of Business Model and Design1 Barriers in Creating a Business Model2 Read More