The Impact Of Social Media Business Essay

The Impact Of Social Media Business EssayThis paper presents the significance of the upstart and in noneational deliverance to plaqueal study, adopting to the business environmental modifys and managing.Design/methodology/approach -The paper analysis the performers that amplification the role of tender media (SM) and their influence to transmits in the value added in the organization.Findings The paper contributes to the discussion about the importance of kind media by enabling the access to the companionship and theResearch limitations/implications The sentiment is base on a suppositional view of the sophisticated sunrise(prenominal) economy, noesis direction and the impact of social media on value creation.Practical implications out that the Originality/value SM leads to the fact that we argon non talking about knowledge management, but about enabling access to knowledge. SM influence on the formation of chain supply and consequently to the value added in the enterprises in innovative economy.Keywords innovative economy, knowledge management, networking, organizational changes, social media, value added chainPaper type Research paper penetrationSustainable schooling and increased uncertainty in the business environment ar forcing companies to inflict as a strategic goal a constant reconstruction of a comprehensive infra grammatical construction. This renewal based on a more flexible organizational structure (internal environment) including the introduction of modern technologies for the implementation of birth marketing and renovation of the technological innovations. technology has with the phenomenon of the mesh and the development of mobile networks transformed the way in which our society communicates and socializes. Technology is no longer the bowl of developers and pulmonary tuberculosisrs, but is becoming a central democratic element, which allows for the continuing presence of society.1Conservative organizations dem onstrate the requirements of change management policy and organizational structures based on the Taylor paradigm of the hierarchy. At the same time, it has to be aware of the ability to develop and achieve at least basic levels of literacy in the field of modern instruction and talk technologies (ICT), which plays an important role in the conquest of both stinting and social development. By achieving their strategic purposeives, companies testament be affected by the increase in productivity, efficiency, added value and consequently, the development of economy and society 11, 20.The business environment has been necessary to realize the electronegative consequences of ICT developments with the emergence of high-tech crime. Such abuses are increase in frequency on both IT and radio-diffuse technologies. The crimes are divided into those where computers are used as a means of enforcement (computer related crime) or as an object of enforcement (computer crime) and criminal actions in the field of illegal use of the Internet 41.In much(prenominal) an environment it is difficult to define and determine the appropriate boundaries of business. Competitors do not compete only with similar (or identical) business models. unseasoned ones are emerging with different approaches, techniques and thoughts that undermine the traditional rates set market contend 8 (figure 1). bring of technology development to the organizational changesPhenomenon of the Internet in the new economy has influenced in the early nineties of the twentieth century (including the Internet or the digital economy2), the rise of the third wave of capitalism. During the last economic crisis and recession, which ended 2009 and the consequences of which the world felt in the form of low economic growth, the emergence of Internet technology, joined the digital technology3, which further affects the changes in global markets, which point out in the manners of the consumers and in developing new busi ness models 37.SOCIAL MEDIAorganisational CHANGES AND ADOPTIONLEGAL AND ETHICAL NORMSTECHNOLOGYGLOBALIZATION PROCESSORGANIZATIONAL EFFICIENCYCOMPETITIVE ADVANTAGEVALUE ADDEDACESS TO KNOWLEDGEThe new economy has in the early 21st century led to changes in strategies, structures and management styles. For managers it is expected to dominate the release, management and use of resources, in contrast to the strategies of the old economy, which stress that the management strategy to manage the acquisition and possession make to defend their own resources 28.An increasing role in the technological field of ICT in the past a few(prenominal) years has been seen in mobility, cloud computing, business intelligence systems, and SM 16.All these factors assume a leading role in ICT in essential and underdeveloped economies. Technology and economic growth during the period of transition from the new innovative economy have become inseparable 27, 37.Innovative economy in the process of organizat ional evolution introduces new approaches for the development of business models. Even in the early twentieth century in the so-called old economy there was a predominant position that for a successful (profitable) business to occur substantive active ownership (hierarchy) must be implemented and that those organizations need to introduce a vertical organizational structure. In the eighties in the so-called the new economy, knowledge and the flexibility of organizational structures started to significantly affect the performance of companies. In the innovative economy innovation and intuition are becoming the key success factors 9, 21, 39.Organizational changes include internal and external factors, technology, markets, the legislation (emphasis on the protection of clever property), which is in line with new processes, restructuring and mergers and takeovers. Seventy percent of organizational change efforts fail. The causes for failure can be found in the fact that managers skip vital elements in the processes of change 34.Innovative economic theory (in contrast to neoclassical) follows from the thesis that capital accumulation is the main vehicle for economic growth in todays knowledge-based economy. To change so there is also the global financial theory that during the innovation, economy favors Asset circumspection prior to ownership. This new business logic derives from the thesis that economic growth in the innovative economy arises due to the final product or services that are incurred as a result of knowledge 3. The innovative entrepreneurship that has been developed based on R D and the down-regulation of activities, highlights the risk upon capital and intellectual property (patents and licenses) and fosters a networking organization that enables collaboration between companies (e.g., clustering). In the innovative economy, partnerships among organizations are based almost exclusively on human capital. Economic capital has lost the importance it still has in the new economy 7. meshing economics considers integration as a strategic instrument that affects the growth of knowledge, and increases the role of breeding and human knowledge in a knowledge society. The archetype of network management is important as a management style that builds or appropriates synergies, particularly between information management, knowledge and human resources. companionship and behavior have become a power not only to the new economy but also to the innovative economy 10, 33. Networking promotes the importance of Supply-Chain management for the success of which it is necessary to provide unknown knowledge and prepare for the changes brought about by the development of social media4and their introduction into business operations 13, 22.The advantage of the network structure is two-way communication. Processes operating is not run in isolation because, with two-way communication typically every person can communicate with any new(prenominal ) person, and information can move freely within an organization f 8, 42. familiarity and information are part of the supporting information system which enables their ravish and processing (from the data to the end of wisdom), it is determined by knowledge management. In the given concept network knowledge management can be delineate as a shift from a transaction perspective in the distribution of inter-organizational knowledge management process. Specifically, this means that the members of each exchange acquire special skills needed to support decision-making 40.Individual companies use outsourcing management activities in order to minimize the operating costs. Companies are therefore compensated for the purchase of thier own information system (introduction of cloud computing), own implementation of marketing activities (setting up their own social platforms on the existing activity), finance, shared services and the production specific part of a product, of which the produc tion is not a core activity. The company has to be aware that decisions on the implementation of external operations are risk and that such decisions significantly affect company performance 20.Management of supply chains is an important part of the value chain by Porter 30, who developed a model to determine the development of rival advantages. Porter stresses the need to identify free-enterprise(a) advantages seen in the company as a whole. Cost-effectiveness and successful differentiation are important factors in the chain of activities for the success of companies that bring value to nodes. In the Internet age, the value chain has become a basic tool for arrest the impact of information technology on business. The company starts to integrate the value chain and entire value system, which includes suppliers, distribution channels and consumers. Importance of Supply-Chain Management SCM and guest relationship management CRM is to bring together applications, which include co nsumers, distribution channels, supply links for ordering example, production orders and deliveries. Development of new technologies to further product development or integration services and exchange of complex models among partners and consumers, which build on the exchange of information through social media. The show began after the onset of the need for identifying the impact of social software solutions upon knowledge management and determining the value of knowledge in enterprises 6, 31, 38.Von Krogh 38, points out that the SM leads to the fact that we are not talking about knowledge management, but about enabling access to knowledge. Social tools are in fact opening channels of communication with businesses, universities, research institutes, suppliers, customers, users, competitors, and so forthThis theoretical overview ended with description of the quite new concept of the creative economy. It connects creativity, knowledge and innovation economy. The concept is to elevat e investment in innovative technologies and to encourage a period of recession, a new economic cycle and stimulate economic growth 14.The importance of new technologies for the business developmentSoftware applications based on the Internet are entering into all aspects of industrial and service sectors. weathervane technology provides better opportunities for companies to create strategic priority positions, than they could before any other information technology 31. An issue that Porter 31, exposed is how to use the Internet in a way that will influence an increase in economic value? The author exposed two factors that determine profitability industry structure and sustainable competitive advantage a universal factor which exceeds any form of technology or business. Their effectiveness varies from company to company and from industry to industry. The Internet has an important impact on business development and in connecting relations in business to consumer (B2C) and business to business (B2B). Thus it has gained an important role in company performance and thus results in profit, which depends on the specifics of psyche companies or industries. The expansion of online portals and blogs is increasing the communication among Internet users ( voltage customers). This leads to an exchange of opinions on the quality of products or services. The Internet has influenced the development of relations between consumers (C2C), which has a significant relationship to the creation of consumer perception of the quality of brand or company reputation.Progress and development of Web technology have an enormous impact on the evolutionary changes in social, economic and cultural fields 32. A capacity to adapt is conditional with changes in organizational behavior such as with the presentation and adaptation of technological innovations 36.CRITICAL INFRASTRUCTURE eeffeeeeeeeeccddddd+++++*****INFRASTRUCUTREinteractivity applications Growth of do commerce on demandconnect co mmunicate collaboratereal timeon demand(from) distance*Critical infrastructure IT developments and breakthroughsOrganizations have to adapt to changes in environment if they wish to survive. In the 21 century we are witnesses to global heating and climate change. Society and organizations are looking for solutions within the concept of sustainable development, which will affect all levels of contemporary culture organizations, whose task will be a close relationship with global challenges. Private organizations will need to consider how environmental responsibility starts in their basic concept of development and this will also affect the organizational culture 35. In cultural fields organizations are exposed to cases of managing the culture and limiting behavior of group members through sharing the same norms. In todays increasingly networked and virtual world one must be aware that each group consists of members coming from different social background, cultural group, country, etc All this affects in to the culture of the organizations 35.Launch of new ICTs in the knowledge-based industryThe knowledge-based industry achieves its performance with the ability to develop new knowledge and the use thus in the development of new products and services. Within organizations, the emphasis on knowledge management, and the processes within an organization geared to the development and dissemination of knowledge throughout the organization. An inborn role in these processes is played by the workforce at all levels of he organization whose ideas and insights serve to create knowledge, and the organizations competitive advantage (A Dictionary of homo Resource Management 2008). Between knowledge based industry classified automotive industry, information industry, pharmaceutical and healthcare industries and media and entertainment industryPhenomenon online platforms that represent social media (SM) (Table 1) have acquired a large force in 2004, when Facebook announc ed We give people the power to share and make the world more open and machine-accessible 23. During this period a new form of social media has formed, Twitter, which currently has a billion registered users who generate 175 million messages (tweets) daily. Use of online media is growing people and organizations use them for self-promotion, dissemination and the exchange of information users express their opinions, criticisms and compliments and straight communication 2.TABLE I examples of social media for business1. Social-Media/Social-Bookmarking Sites for share favorite sites on the Web with electromotive force customers and business partners by commenting on, uploading and ranking different news, articles and company blogs.Reddit, Digg, Del.icio.us, Technorati, Ning, Furl, WikiHow, Youtube, Ma.gnolia.2. Professional-Networking Sites online networking communities for companies or individuals for promotion, recruiting, business opportunities.Linkdeln, Xing, Focus, Facebook. Ecade my, Research gate, Plaxo3. Niche Social-Media Sites sites convenient for linking up for attainability business fool audience.Pixel Groovy, Mixx, Tweako, Small Business Brief, Sphinn4. General Social-Media Sites opportunities for advertise, promotion etc.Wikipedia, Newsvine, Wetpaint, Twitter5. Job sites suitable for searching for high qualified candidates.CareerBuilder.com, The Wall Street Journals CareerJournal, SologigTodays knowledge society, in addition to knowledge-intensive processes, is including the benefits of creating and finding new information with communication technologies. Following the implementation of new web-based solutions (Web 2.0) the term enterprise 2.0 has been established for companies using new technological solutions that include digital media and social software solutions for business purposes 23, 24.Social media tools enable the creation of new forms of connections and contribute to the maintenance of social connections (networks). It has never been po ssible to share mutual information and knowledge so quickly on a global scale. Social media allow instant transfers of video and picture material, as puff up as maintaining blogs. This gives rise to the joint efforts of the public resulting in a new, often freely accessible database of information and knowledge. The role and structure of social media links the development of digital media technologies (e.g. digital signage) and the decline in prices increasingly influence in facilitating the transfer of information events in ways not previously possible (e.g., incorporate television, video portals, etc.). Social networks are growing in different environments and strongly influence the changes in society, technology and business practice 15, 12.e commerceNew IT capabilities competitive strategies efficiency of operationssocial networksrule of managementCompanies should be aware that the customers (internet tools users) are becoming the new marketers (viral marketing mouth to mouth communication + SM), with extensive opinion-leading talks about the brand (table 3) 12. All these factors come together through social media to create an external image of the company, which will depend on its reputation and consequently, the value of the firm (e.g., informing the interested public through the website if a corporation, showing the relationship to both owners and the media and consequently, affect the value shares) 18. Organizations have no influence upon customer publications through social media. They can only publish a retaliatory explanation later and try through to decrease potential damage to their image. Viral marketing has had an influence on reducing the role of PR and marketing agencies. Technology today allows companies to create personal communication blogs, or use other similar social platforms. Companies can even invest in their own social programs and store and transfer them via digital media.Social media guestViral marketingCustomerViral marketingCus tomerOrganizationFig. 1. Social media communicationThe development of the management skills based on the influence of technological change which lead to existence of the concept of KM 2.0.Von Krogh 38, notes that in the context of the impact of social software solutions onto the generation of KM and upgrades to increase the added value of organizational knowledge, there is a need to focus on Identification of indications of how people adapt their communication with the external environment in terms of quality, distinctiveness and ownership of data, information and knowledge, How people account for the risk of sharing their content with strangers. Are people receptive to the issues of ownership and transfer of data between strangers (the problem of infection of information from researchers and developers on outside experts to help create the so-called open innovation? How it affects the takeover or merger of the development company that owns the new technologies developed by its mem bers to communicate with experts in acquiring.The impact of social media to value added in knowledge-based industriesKnowledge is already seen as the key factor of a sustainable competitive advantage in the new economy. An organizations need to develop an organizational culture to raise the level of awareness of employees to create and share knowledge is the basic concept of business, allowing further growth of the organization. An organizational culture based on sharing knowledge, providing opportunities for the development of KM processes, which are closely associated with the creation of added value is essential 19, 29.The organization has to take its objectives into account, their knowledge and know-how from the environment, to establish a policy to customer relationship management (CRM) and suppliers, develop a marketing strategy that provides market positioning and design of brand loyalty. These resources constitute social capital, which occurs in two forms as an internal adh esive to create the organizational culture or as an external component relationship. Keeping these two forms of social capital requires different approaches to individual forms 26.Social media has become an important source of knowledge and enables the creation of the content value chain. This is achieved by linking complementary organizations and respective organizations with their distributors and customers 26, 38.The purpose of networking between organizations is the tendency to develop and implement technology solutions and processes that will enhance the organizational added value and bring added value to the customer in the form of utility value. Linked organizations that constitute the value chain have to reach decisions on strategies to increase the added value (e.g., acquisition, accumulation and divestment) with a consensus with partners. In order for successful participation to occur in the value chain, organizations have to identify common goals, be complementary and tr ust each other 25.Knowledge that is transmitted through social media will impact favorably on added value provided that the information delivered to the customer at any moment will be of sound quality, accuracy and up-to-date.. The increase in the effective implementation of the dissemination of information via the SM (Facebook, Twitter, Youtube, proprietary platforms, etc), Increase the dissemination of information on the advertise product, service, etcOrganizations must ensure that the flow of information through social media is properly secured, and that they will not lose their knowledge 38. With such policy the use of SM in the field of marketing communication in knowledge based industry will increase the reliability of the information and the general perception of loyalty to the brand and the organizations good name. This will increase the ROI of social media compared to classic media 18. Consequently this will lead to high added value in knowledge based industry.Management c hanges Processes of creation Resultsthe value added with SMHRMTechnological development enabling the aces to knowledge financialperformanceEnterprise infrastructureRelations in supply change feedbackMarketing trading non financialB2B, B2C and C2C performanceService unconscious marketing BSC, human capitalUnwanted marketing (spam)ConclusionsThe emergence of the Web in the new economy has highly influenced the development of new forms of communication and socializing. With the expansion of social media during the innovative economy there have been qualitative leaps in the communication and contagion of information.Social media has changed the focus on KM from managing the knowledge to the providing of the access to knowledge.Social media allows access to data and video information to a broad range of potential consumers. 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