Friday, October 12, 2012

Understanding Social Network Impacts to Organizational Performance

Nowadays the world was booming with the series of social networking site that's taken place in mainly of human life and give an impact regardless of positive or negative.

As the world becomes more vibrant and volatile, social media networking such as Facebook, YouTube, Twitter and much more become virally induced into human life as well as give an impact to the businesses and entrepreneurs.

In fact, without all of these social media human will not progress and moving like today and will cause any of major problems in communications and management strategies of particulars organisations and country as well.

This social networking come out with an outstanding number of active users since the very first medium exists. This type of communications medium seems to develop and expand rapidly year by year. This situation makes not only the effect on human but also affecting the business performance.

As reported by eBiz, Facebook and Twitter become the most popular and high-rank in the world for social networking regarding profits and registered users. The facts that each of entrepreneurs should take great consideration is, according to Forbes 50% of the population currently use Facebook and more than 37% use Twitter. [1]

So to questions the capability of social networking impact towards organisational and business performance should be considered as a nonsense attempt.

Facebook Influence of Marketing


According to World Resources SIM Center, Malaysia was in 2nd rank for the number of Facebook users, and the statistic show Facebook became the most popular site for Malaysian till December 2011. [2]

This statistic proved the need for detail study to be done on the effect of social networking towards business profits and performances.

The formula is very easy; the market is about conservations. It consists human being, not just about the demographic sector. The internet and for sure, on time being a social networking, enabling conversations among human being faster and the market getting smarter, more informed and organised.

A lot of studies proved successful CEO is the one who takes a progressive step in the manipulating social network, especially in a large company. They finally realise that to produce progressive companies is by using social technologies to engage with customers, suppliers, and even their own employees enable organisations to be more adaptive and agile. [3]

The study by BRANDFog 2012 CEO Survey state more than 82% of respondents are likely or much more liable to trust a company whose CEO and team engage in social media.

And an incredible 77% of respondents are likely or much more willing to buy from a company whose mission and values are defined through their leadership's involvement in social media. [4]

In Malaysia, some of the social networking-based companies have non-stop development day by day. The companies like PETRONAS and Shell, and a lot more companies seem like they are easily used these social networking-based company to advertising their products.

The company like ChurpChurp.com which mainly used Twitter and Facebook to advertise a product of their client and Nuffnang.com which used a blog platform to gain profits by hiring a famous blogger to write an advertorial  the article to promote a particular product of client  and earn thousands of readers per day.

How Startup Should Use Social Network?


The successful company will try their best to listen, engage and monitor their client’s need and feedback. Without all these factors, the conservation that linked human being to each other and making networking stronger and directly affected by marketing progress will not happen.

Steven R. Covey once wrote in his greatest book The 7 Habits of Highly Effective People, in the 5th habit, he states, persons to seek first to understand, then to be understood. [5]

This should apply to business companies too in due to listening and engage with their customers and clients. The rule of customers always right should really understand. They have right to criticise. The jobs for each of the company to do is understand them and make an improvement. Period.

Nowadays, Facebook itself offers new functions that are “Group” which easily can be used by companies to engage and monitor the feedback directly from the client and customers without having a problem of the overlook of some feedback.

And through the Twitter, the company is permitted to use their own hashtags  #  to get client’s feedback towards their product and services directly without interfering with other conservations. [6]

Marketing is about building a trust between products and customers. The conservations and networking between customers and manufacturers are the only windows to realise the day to day improvement of each company’s profits.

Social Media ROI


All the CEOs used to look at Return On Investment (ROI) for each of the investment made by their companies regarding training, building and equipment to preserve the “gains from investment”. ROI will help businesses to evaluate the performance of an investment and compare it to the performance of their other investment. [7]

In social media investment too, the company wants to look up how long the investment in social media will sustain their profits in the market.

This is called Social Media ROI. According to the research done by InventHelp, a lot of companies gain the profits in significant amount after making an investment through the social media network.

BaseballRose.com spent USD200 acquiring Facebook fans and resulting in USD1000 in revenue.

93% of business for Foiled Cupcakes comes from Facebook fans and Twitter followers.

Joie de Vivre Hotels booked 1000 rooms for its USD79 per promotion to its 10000 Twitter followers. Jimmy Choo saw a 33% increase in sneaker sales with its Twitter campaign. Edible Arrangements ran a Facebook promotion which resulted in double-digit sales increase. [8]

For the records, thousands of companies used to invest in social networking and already gain revenue from that. The social networking regardless their types of medium used to always give a positive ROI to investors.

This will directly give a massive impact on company and business performance and the chance for them to sustain their marketability among the users or customers.

Conclusion: A Gen-Z Era of Business


If in the current political environment, all political parties used to endorse their approach and re-evaluate their stand on each issue just because of the fever of new generation called as Gen-Z which their life surrounds with high-end technologies and information, all entrepreneurs and businessman should do the same.

Revaluation on the marketing approach used before must be done in due to avoid a dismiss risk faced by their company from the market arena. Social networking media are the smart choice unconditionally and unquestionable. For the time being, the smart will keep going, and conservative seem like quickly jump into their own grave.

References:

[1] Forbes: Why CEOs Should Care: How Social Media Drives Business by David K. Williams, CEO of Fishbowl and writer for HBR and Forbes.
[2] WRSC.org: World Map of Social Networks.
[3] GNUBAND.org: Social Networking for Your Business by Paolo Massa, a researcher at Fondazione Bruno Kessler, Centre for Scientific and Technological Research.
[4] Small Business Trends: Small Business Leaders: How Social Should You Be? on the study of BRANDFog 2012 CEO Survey.
[5] QuickMBA: Management according to 7 Habits of Highly Effective People
[6] Twitter.com: What Are Hashtags (“#” Symbols)?
[7] Investopedia: Definition of ‘Return On Investment – ROI.'
[8] InventHelp: Measure Social Media Return on Investment (ROI). Infographic

Understanding Impacts of Entrepreneurial Skills on Business Performance

Entrepreneurship is referred to the act of being an entrepreneur or “one who undertakes innovations, finance, and business acumen to transform innovations into economic goods”. [1]

This field of work is essential with ideas, innovations and inventions for a better life of the human and capitalise the materials.

The entrepreneur has always been connected with the business manner. In fact, in the real world, many of the businessmen did not do entrepreneur job, but comfortable being as regular businessmen which they are not able to invent something new to their product, do not have entrepreneurial skills and just gradually making a profit by selling and buying the ready-made product in the market.

By means of full respect for the entrepreneurship spirits, the entrepreneur is someone who made up the idea, design the product, manufactured the product and selling it into the market.

This kind of job required sort of skills which will help the entrepreneur survive in the business world. This skill is called as entrepreneurial skills.

Definition of Entrepreneurial Skill


Entrepreneurial skills are defined as the skills that critically needed in the business and marketing in due to ensure the business going through smoothly all the consequences of the decision-making and business strategy.

The skill is required when it involves the marketing process, financial management, client responses, business evaluation and assessment, the trajectory of companies in the long term planning and competitive market analysis.

Entrepreneurial skill also defined as the ability to create something new with value by devoting the necessary time and effort, assuming the accompanying financial, psychic and social risks, and receiving the resulting rewards of monetary and personal satisfaction and independence. [2]

One of the study states that the array of possible entrepreneurial skills encompasses the perception of economic opportunity, technical and organisational innovations, gaining command over scarce resources, taking responsibilities for internal management and for the external advancement of the firm in all aspects (of teaching enterprise). [3]

All these definitions by research strongly shown entrepreneurial skills is the ability of survival of particulars entrepreneurs. Some studies already sort out several skills that needed by each of entrepreneur to ensure they succeed in what they are doing. Skills mean autonomy to each entrepreneur.

All of them believe the power of self-government and innovativeness to face the globalisation and the needs of customers will increase their competitiveness in the business field.

The skills that they have will ensure whether they were able to manipulate the surroundings to give good feedback to their business or let the gross of the economy put them under par.

Impact of Effective Communication


Many studies lineup communication as the most important skills that must be completely installed and polished by each of the entrepreneurs. Effective communication skill will provide a ladder to any entrepreneur to take another level of their business.

Major of learning and teaching process nowadays at business school provides a particular course with majorly focusing on building the highest-impact communication skills among their graduates.

The impact during the process to sell the idea persuades the client and give a response to each customer’s feedback is the reason of communication skills always be a critical edge to decide everything.

The easiest analogy to understand the urgency of communication skills and its impact on entrepreneurship is how teachers at school operate successfully as an entrepreneur in teaching enterprise.

In order to be a successful entrepreneur in dealing with the client that is their student as a stakeholder of particulars schools and universities, each of teacher must have the ability to effective communication skills which means they are able to express the personality as educated and to understand students so that ideas can be shared. [4]

Same goes to entrepreneur outside, the need to have high-impact communication skill is critically endorsed by the challenging surrounding and the current economic environment. Business is about the competition.

To perform consistently in the business world, the entrepreneur needs this kind of skill.

Empowering Self-Governing


Each of entrepreneurs needs the skills to govern themselves by practising a right time management competence and self-motivation skills. Both of this skill also lining up as the most important entrepreneurial skill that must be adopted in the way to ensure the business is always done in the discipline border.

Without this discipline, it is impossible for any entrepreneur to achieve something.

Business peoples should master to prioritise their schedule which means they are able to balance between the urgency of some matter by the right of time sensitivity and another working schedule.

A great entrepreneur should know better to be effective on everything they are doing regardless the meeting with the client or own workers. The prioritising of sort of schedule and tasks will remain them in the time context of the particular job, and this will boost the business performance by the efficiency of their working.

Each minute is counted. The world nowadays seeks for the people who are able to do couples of jobs in the shortest of time given. The formula is very easy; the more time you can save the tendency of business performance get better will highly increase.

The study also showed most of the successful entrepreneur in the world manages to self-motivated to overcome the barrier built by them. Popular English idioms, the biggest enemy, is yourself is perfectly picturing this skill that should be able to grab by peoples in the entrepreneurial world.

An entrepreneur should see himself as a great manager, and he got his own class. The commitment, enthusiasm, and passionate are the brothers who will make their dream in the business world become a reality. This sort of skills will keep the entrepreneur on the right track to gain something in the business performance.

How Steve Jobs Sell 1st iPhone?


Many peoples wonder when Apple has become the most popular brand since 2007 after they start selling their product known as iPhone.

During peoples around the world still freezing with the magnificent Nokia N98 which called as the greatest smartphone, Steve Job come out with extraordinary phone with unconventional functions and design such as full touch screen, smooth lagging time, tons of gaming and entertainment applications, powerful camera and a lot more features which rarely found anywhere such of functions on the other brands. [5]

Business experts discuss this, and for the record, Harvard Business Review (HBR) once ago wrote about the impact of marketing skill done by Steve Jobs to the performance of the Apple in the industry of smartphones and brands.

They agree the right moment to launch the good marketing point of the particular product is the key point of the successfulness of Apple nowadays. This is the impact of entrepreneurial skills, having by Steve Jobs that driving him to do something to his business. [6]

In the business, an entrepreneur should know better on how to reach their customers using the best marketing approach. The sales and marketing factor is the most important skills entrepreneurs should have in their day to day activities and development.

As the year climbing the ladder of time non-stop, we could see how marketing has nowadays become more interesting, challenging and endurance.

The effect of marketing through social media networking like blogs, Facebook and Twitter give tremendous change to the entrepreneurs.

Whether they admit or not, the need for expertise in social media marketing is also considered as an entrepreneurial skill that must be had by each entrepreneur to make sure they are able to survive in their playground.

Conclusion: All-Rounder Entrepreneur


Current economic situation and global regression push entrepreneur, regardless their age in the business world to the limit of skills and expertise. Entrepreneurs should understand why they must skill in a particular area to get through any obstacles in front of them and bringing up their business to the next level.

Skills come with knowledge and experiences. The ability to extract the knowledge they had during in the universities and experiences they had in their life is called wisdom.

Entrepreneur does not ever object this statement because facts show only smart and well-rounded entrepreneur could have the chance to be extraordinary among others and their business performance is tremendously unconventional regarding profits and success.

References:

[1] Wikipedia: A group of ideas around entrepreneurship. PDF
[2] Hisrich, Richard D. & Peters, Michael P., (2002). Entrepreneurship. Boston: McGraw-Hill/Irwin
[3] Kilby, P. (1971). Hunting the Heffalump in P KILBY ed. Entrepreneurship and Economic Development.pp:1-40. New York: The free press
[4] Adeyemo, SA. (2009). Understanding and Acquisition of Entrepreneurial Skills: A Pedagogical Re-Orientation for Classroom Teacher in Science Education.
[5] Kenneth L., Greg L., & Jason D. (2011). Capturing Value in Global Networks: Apple’s iPad and iPhone.
[6] Harvard Business Review: The Real Leadership Lessons of Steve Jobs.