Paper-7 by shilpablore


									                                                                            International Journal of Computer Information Systems,
                                                                                                                 Vol. 2, No.4, 2011

                            Business consequences in Social
                                                                                         Hogskolan I Borås
                                                                                           Borås, Sweden
                      Md. Rofiqul Islam                                      
                  Master’s in Informatics
                    Hogskolan I Borås
                      Borås, Sweden
                                                         Shakti Raj Pandey
                                                                                      Master’s in Informatics
                                                                                        Hogskolan I Borås
                                                                                          Borås, Sweden
                     Md. Shariful Alam                                      
                  Master’s in Informatics

Abstract— The power of social networks term from their ability      with other Facebook users, post photos, plan events and join
to capture real-world phenomena such as collaboration,              groups, try out applications, etc. Although the history of
competition and partnerships. Social networks provide means for     Facebook is not long, its explosive growth has successfully
enterprises to capture and expose many informal connections         caught the eyes of researchers. Like other information systems
between their stakeholders. In this paper we discuss how social     (IS), the acceptance, usage and continuance of Facebook have
networks could sustain growth and unfold business opportunities     become an interesting research area among researchers. Prior
in modern enterprises. Furthermore, we study various types of       research studying Facebook was mostly associated with
theories which are related to the consequences of business in       acceptance and usage, such as motivations and usage effects
social networks and investigate metrics that measures their
                                                                    [4][5][6]. There are also some studies focusing on specific
value-added to enterprises. It’s in response to business-oriented
social network requirements .In this paper we considered
                                                                    issues including Facebook identity and self-presentation, and
Facebook as our major area and we conducted some real time          trust and privacy issues. However, Bhatta cherjee [7] argued
survey in Facebook regarding how people use to do shopping          that both the initial acceptance and continued usage of IS are
with social networking sites.                                       the critical determinants for their long-term viability and
                                                                    success. Moreover, with the popularity of the Internet, more
                                                                    and more people take online social networking as one part of
Keywords- Consequences, Facebook, Theories, Social networking       their daily lives, which increases both the social value and the
sites (SNS).                                                        commercial value of SNSs. Therefore, in order to achieve long-
                                                                    term success, maintain sustained operation and gained long-
                                                                    term benefits in a competitive environment, there is a need to
                                                                    conduct a study specific to the post-adoption of Facebook.
                                                                    Unfortunately, little work has been done focusing on exploring
                     I. INTRODUCTION                                factors influencing the continuation of the use of SNSs. And in
    A social network site (SNS) is a web-based platform which       this paper we are discussing about how the consequences of
allows users to build their own profiles in a bounded system        business in social networks with its related theories.
and to share connections with their friends within this system
[1]. Social network sites integrate digital communication and
publishing together which makes the communication simple
and across time and space [2]. An important characteristic of
SNS is that SNSs enable users to make visible their social                                II.EMPIRICAL STUDY
networks and build connections between individuals.                     In these years of internet era, we have seen the changes in
Facebook, which was launched in 2004, initially targeting at        our daily lives. We have moved our personalities into the
college students but later welcoming everyone, is one of the        internet, creating our own personal profile that everyone can
fastest-growing and best-known social network sites today with      see and move our friendship there, too. This phenomenon is
more than 500 million users [3]. Facebook is a tool that enables    known as social networking. What we can do in social
users to manage maintain and enhance their social connections       networks has expanded. Sharing was the main thing, from
by helping people keep track of and reach people they know          photos, videos, greeting etc. Social networks became our daily
and help people communicate and share information with              routine. Now it can also be a part of work life or school. Event
others they trust. Users can use Facebook to establish a profile,   invitation, announcement, sharing notes from class, making an
connect with friend and build their networks, communicate           arrangement for a meeting, sharing calendar, reading what is

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                                                                               International Journal of Computer Information Systems,
                                                                                                                    Vol. 2, No.4, 2011
happening on the other side of the workplace, name it, and                          II. CONSEQUENCES FOR THE COMPANY
most of them you can do it on social networks. Business has               Companies will have the chance to interact with their
also been moving into social networks. The new method of              customers “personally”. Therefore it gives a chance for the
business has strength as it means holding your business right to      company to know their customers better, providing better
your customers. This was the reason so many kind of business          service and also promotion. The interaction here will also be
moved into social networks, from multinational companies,             faster, great for launching new products. The company will
large shops, small shops and personal businesses that don’t           also get an expanded reach without too much effort.
even have a shop. But moving this business does not mean that         Nevertheless, companies will need to make adjustments to
it has no consequences.                                               meet the style of the new communication [10]. According to
    It is known that social networks stem out of multiple             AT&T’s analysis on business impacts of social networking,
relationships between people. Can these relationships be useful       authenticity, transparency, attentiveness, worth and ethical
in the world of work? Can enterprises capitalize on these             should be added into the new corporate communication.
relationships to increase their market shares? Can employees          Authenticity is keeping up with culture and daily operation
adopt new practices in line with these relationships? Finally,        honestly. Transparency says it all; a company needs a real and
can social networks in the enterprise become accessible?              open profile. Attentiveness means updating the news and
                                                                      interacting with the people, not answering people is a big
   These are some questions that have been raised following           failure. Worth means that in a longer term or in a way that we
the recent boom of social applications such as Facebook               cannot see directly, will this eventually bring revenue to us.
(, Twitter ( and Orkut               Ethical is to put the contents out of the subject of company’s
(                                                       product sometimes and just bond with the customers.
    Ethier reports, that "the study of social networks is
important since it helps us to better understand how and why            III.    CONSEQUENCES FOR THE SOCIAL NETWORK PROVIDER
we interact with each other, as well as how technology can alter
                                                                          At first, social network provider usually expected that
this interaction." [8]. Moreover, Ethier argues, that "the field of
                                                                      business will take place in the social network that they created.
social network theory has grown considerably during the past
                                                                      Now that it does, the social network company should realize
few years as advanced computing technology has opened the
                                                                      that it has a potential cause for crime or fraud. In order to
door for new research." in a report published by DEMOS about
                                                                      prevent this, the social network will need to make adjustments.
customers and suppliers. This should positively impact
                                                                      Security is on the topof the list. Technology can be developed
productivity, business development and collegiality as long as
                                                                      to prevent fake accounts and fake advertisements. It would also
these applications are used in a "controlled" way. Forrester
                                                                      be great, if the social network makes a special feature to
research predicts, that "Enterprise 2.0 will become a $4.6billion
                                                                      localize the business in it to make an easier access and an easier
industry by 2013 and social networking tools will garner the
                                                                      organization.An easier access can invite more people to use it
bulk of the money" [9].
                                                                      for business process and it will create revenue to the social
                                                                      network company, too. Feedback and complaint should be
      I.    CONSEQUENCES FOR INDIVIDUALS/CUSTOMERS                    made available for evaluating this business feature.
    Business in social networking for customers can bring both
positive and negative effects. Customer now will have more                          IV.   CONSEQUENCES FOR THE SOCIETY
options on what to buy, have easier access to products and buy
                                                                          There are of course consequences of business in social
products from the friends around them in the network. That
                                                                      networking for the society. As it is getting very easy to sell a
means that the transaction is done through the trusted circle.
                                                                      product, people will have a new habit of conserving their stuff
This also means, that the payment method can be chosen and
                                                                      so that in the future they may sell it. Like using internet in
agreed between the customer and seller and a meeting to see
                                                                      general, there will be also changes in the interaction of the
the products in person can save money on shipping. Other
                                                                      people, as they will lose real life touch and contact. On the
benefits are generally the same as online shopping, such as
                                                                      benefits, like any online shopping, there will be less use of
easier in comparing prices between many shops. The shops are
                                                                      paper. People won’t need to visit a shop, therefore saving the
online 24/7 h/d. So you have the possibility of choosing
                                                                      energy, preventing more carbon release to the atmosphere,
between new or second hand products, you can buy products
                                                                      indirectly preventing global warming. There will also be an
that are not available in normal stores and many more.
                                                                      increasing demand for shipping and also internet banking.
    On the other side, it can also bring many disadvantages
relating to privacy like personal details of the customers are             V.     HOW MUST SOCIAL NETWORKS BE DEFINED IN AN
exposed to the company. The company can study the shopping                                   ENTERPRISE?
pattern of a particular customer. Sometimes this can have the
downside as the company will send more advertisements that                For an enterprise we suggest, that a social network should
the customer do not desire. It also have the downside of online       include all the stakeholders that directly fall into the interaction
shopping, for example we cannot get the product straight away,        circles of this enterprise. We identify two types of interaction
need to pay more money on the shipping, exposing to crime             circles, inner and outer interaction. On the one hand, the
when they decided to meet in person for a transaction, or             customer and supplier stakeholders are part of the inner circle.
simply the product is not like what is expected.                      They constitute an enterprise's primary level of concern in

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                                                                             International Journal of Computer Information Systems,
                                                                                                                   Vol. 2, No.4, 2011
terms of how to satisfy customer demands and how to rely on           as both of the suppliers and the consumers of the content. This
suppliers. On the other hand, the competitor and partner              is the contrast to a traditional business model, where the
stakeholders are part of the outer circle. They constitute the        suppliers and the consumers are distinct agents. The revenue is
second level of concern for an enterprise in terms of how to be       gain via the online advertisements.
aware of competitor plans and how to seek the assistance of
potential partners.                                                    IX.    HOW THE BUSINESS IS DONE IN THE NETWORKING SITES
    A customer-centric social network can be used by the                 There are some steps, which if followed well, the business
enterprise to contact a customer's "friends" to disseminate           can be done in the networking sites.
information on products and services and hence, boost sales.
    A supplier-centric social network can be used by the              A. Managing a Profile
enterprise to establish a supplier's reliability level as perceived       Creating a full profile with exact information is the first
by those who have dealt with this supplier in the past and thus       step to earn the trust. The second step is the establishment of
to decide if the supplier is reliable.                                the business account. To follow the networking sites
                                                                      information completely and installation of proper application to
    A competitor-centric social network can be used by the
                                                                      integrate blogs and other social media will be the next step.
enterprise to work with a competitor's allies to regulate markets
                                                                      After posting a professional or a business casual photo, posting
and eventually identify solutions to common issues.
                                                                      newsletters, subscription information and archives will be the
    Finally, a partner-centric social network can be used by the      last step for a well done business profile.
enterprise to identify individuals and groups, with that an
enterprise can work with to join forces and tackle complex            B. Connecting and Sharing with Others
initiatives.                                                              Obtaining a vanity URL, so that people on the site can get
                                                                      access to that business and adding that URL to any marketing
               VI.    THEORETICAL FRAME WORK                          collateral will be the start of connecting and sharing business
    A social network is the social structure that is made up of       with others. With posting the business updates regularly,
the combination of the individuals which have the common              focusing on the business activities, sharing useful articles and
interest up to some extent. It is the online service, platform or     links for presentation will spark the interest of the customers in
sites which are responsible for focusing on building and              the business. Sharing valuable resources and prospects will
reflecting of social networks or social relations among the           establish credibility. To find more connections it is helpful to
people who share the interests or the activities. The social          upload contacts from email clients. Finding experts in that
network usually represents the individual via the profile that        business field and inviting them as a guest blogger or as a
has been created which implies that what kind of individual he        speaker in events and sharing survey and research data will
or she is. It is very helpful to get around the people of same        gain the credibility. Marketing products by posting the
interest and it also help to be in touch with the people whom         discounts and package deals will win over the customer. By
we really want to. These social networking sites today have           following these steps, it will be a better business in the
named a great impact on the individual all around the world.          networking sites [12].

    The typical structure of the social networking is divided             One of the advantages of business via such sites is that the
into two parts, basic structure and additional feature.               business turns as a resource to others and the uploaded contents
                                                                      provide an ongoing online view of the company. There will be
                                                                      shown continuously products and services, so that it provides
A. Basic Structure
                                                                      the branding and identity for the business. Referrals and the
    The networking sites, it tends to share some conventional         recommendation of services or products will be much more
features, the individual users creates the profile containing the     natural and easy to handle. The social aspects bring out the
information about himself or herself and also can upload              emotional connectivity between the company and the
pictures, post the blogs or search the other people who contains      customers and it helps the company to understand who the
the same interest.                                                    customers are and how to build the trust easily between the
                                                                      company and the customers. Moreover clients and potential
B. Additional Features                                                clients meet the company and the company’s employees before
    Few of the social networking sites also have the different        the business. Thereby it will be also easy to be partner with
kinds of features such as creating the groups, uploading and          another business and also easy to watch the competition. That
streaming the videos, holding the discussion in forum, creating       means that global market is much more accessible.
an advertisement and creating surveys etc. [11]

   The social network operates business in an autonomous
way, in which the social networks member serves the dual roles

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                                                                                International Journal of Computer Information Systems,
                                                                                                                       Vol. 2, No.4, 2011
     XI.   RELATION OF DIFFERENT ETHICAL THEORIES IN TERMS              E. How the Business via Networking Site is Relative to
               OF BUSINESS IN NETWORKING SITES                              Time?
                                                                            It is already proved that the most of the people give there
 A. Ethical Relativism                                                  minimum time also to the networking sites. There are many
     The Business via the networking sites explains the ethical         reasons behind it, because it has been a virtual society.
 relativism in terms of wrong or right as this ethical theory           According to the times perspective, the business done via the
 explains that there are no universal moral norms. It can be            networking site is very crucial, because this type of business is
 explained with the help of an example; let us assume that              very less time consuming. The advertisement is on the sites of
 someone’s mother has a heart attack to save her life every             the social network and the people visit those advertisements
 seconds counts and her son has to exceed the posted limit of 80        within the time they use to go through that site. If the product is
 m.p.h. in route to the hospital, because it is not fair to hold the    favorable for them, they will buy it online. So, it is really good,
 speed limit law.                                                       because they don’t have to consume their time going to the
                                                                        physical stores and get the job done online. The same thing is
     So coming to the point of this ethical theory in terms of
                                                                        applicable to the owner of that business, because it is less time
 business in networking sites, we should take consideration of
                                                                        consuming, too.
 the relative theory which gives the relativism in terms of the
 culture, society, family, individual and time.
                                                                        F. Consequentialism
 B. How Business via Networking Sites Relative to Culture?                  According to the ethical perspective of consequentialism it
                                                                        explains, that right and wrong are based on the consequences of
     The networking sites have made the different culture come
                                                                        an action. The business via the networking sites completely
 together at one place. The networking sites have made the
                                                                        follows the ethical theory of consequentialism, in which both
 people from different places come together at a single point and
                                                                        the owner and the customer follows that particular theory.
 share views and ideas. So, the networking sites can be also
                                                                        Consequentialism has two aspects, egoism and utilitarianism.
 called as the cross cultural environment. While performing the
 business using the social networks is always an advantage,
 because this kind of business sometimes also helps to exchange         G. Egoism Theory for Business via Networking Sites
 the culture. For example the product made in Sweden, which                 The egoism explains that everyone must act in ways that
 has it cultural values when it is advertised in the networking         brings the greatest amount of happiness to oneself. This
 sites, will be visible by all the people, who are in that social       explanation matches exactly to the character of the owner of
 network and who possesses the different culture. Those people          the business that is done in the networking sites. The owner of
 can go through that advertisement and if a product is good-            the business starts the business for his own interest and
 looking in their opinion, perhaps they will buy it. But if they        advantage, because the social network is full of many people
 think that the product is meanly, they won’t buy it. So at the         with different interests and the networking site is the perfect
 end the cultural values and perhaps a little bit of culture is         platform for performing the business. So the owner of the
 shared.                                                                business uses the social network for his sole interests and
                                                                        benefit which supports the egoism theory.
C.    How the Business via Networking Sites is Relative to
   Society?                                                             H. Utilitarianism Theory for Business via Networking Sites
     The social networking sites include the society, because               The utilitarianism theory explains that everyone must act in
 they are creating a virtual society, where a number of people          ways that bring the greatest amount of happiness to the largest
 are sharing mostly the same interests and maybe business               number of people. The social network contains the largest
 advertisements etc. In networking sites it is actually focused on      number of people who actually use the social networking sites.
 that certain group of people in the society, for example the           The theory fits to the customer of the business process, because
 business of new fashioned clothes will focus to the group of           the customers, who do shopping with the help of the
 young people who have taste on new fashion. So, according to           advertisement, are the largest number of people with the same
 the ethical perspective, the old people are left here, so that this    interest or common ground, for example shopping. They will
 particular business for the young people is well-done and for          be happy, because they save their time and also they can look
 the old people it is probably not very interesting.                    up the quality of the product. They can also meet the business
                                                                        person or the company before buying. So the utilitarianism is
 D. How the Business via Networking Sites is Relative to                followed by this way, because the business brought happiness
      Individual?                                                       to the largest number of people who are using it [13]
      The business is done by the individual or the company and
                                                                        I.   Deontological Theories for Social Networking in Business
 it is also focused on either the individual or the company, too.
 Some of the business is always focused on the individual                   When we think about the Deontological theories for
 interest, so, with the help of the advertisement, that is available,   business in social networking we have to consider that “Right
 the individual determines either the product is good enough or         or Wrong based on the character of action”. As per this theory
 not. According to the ethical perspective, the business for the        action is based on a sense of duty are right, here we have come
 individual is in either right way or the wrong way.                    cases which is effected by using the face book.

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                                                                            International Journal of Computer Information Systems,
                                                                                                                   Vol. 2, No.4, 2011
   An Australian couple who defaulted on their mortgage has                    67% says they feel this kind of shopping inconvenient
been served legally binding court documents via social                         50% says they are neutral to buying
networking site Facebook.
                                                                    Both       73% say the seller is trustworthy
    It means the government is using the social media for their
medium of communication, because when they use their                         Sometimes they are not so sure about the real
regular service people or not responding, here we can consider      condition of the goods.
the deontological theories, the character of action made them to
choose the social media.                                            People still prefer the conventional way of shopping, because
                                                                    the payment is simpler and they get the goods straight away.
When they send court documents through face book, the person        Online shopping through social networks must offer something
may able to see immediately and his egoism will react here.         that is a bargain, for example cheaper than those sold on local
Like this the ethical theories will applicable in every corner of   shops or rarely found on local shop to get a chance for a bigger
the social networking.                                              number of customers.
                                                                                              XIII. CONCLUSION
XII. RESULTS OF OUR SURVEY                                              In this paper we identified some questions that will arise
                                                                    when social networks become an element of enterprises' best
For this paper a survey about shopping through social               practices. Social networks have a role to play in opening up
networking is conducted.       One of this paper’s author           new business opportunities for enterprises and sustaining their
experienced in her home country, where lots of people in her        growth. To assess the effective use of these opportunities,
Facebook network tagged photos almost every day a different         measurement metrics are required. These metrics vary
one, not people’s photos but pictures of bags, clothes, etc.        depending on the type of social network that an enterprise
Selling via Facebook becomes a trend. The seller are mainly         hopes to capitalize on. We identified four types of social
personal seller, they don’t have a real shop. The survey was        networks, namely customer, supplier, partner and competitor
conducted to see how much interest people have towards this         networks. The ethical theories of business consequences show
newly spread online shop through social network.                    the user behavior when they are using these social networks or
                                                                    get affected by the social networks. So at the end of the line we
                                                                    would like to say, that social networks are integrated with our
The survey result has a little variation between male respondent
                                                                    day-to-day life activities and makes us to share and gain
and female respondent. Half of the female respondent said that      knowledge, creating opportunities above all of these social
they know the seller while more than half of the male               networking sites make the world as global village,.
respondent said that they didn’t know the seller. This result
shows that seller often target her female friends. It also shows                                  REFERENCES
that female respondents choose to be safe by buying from a
friend while the male respondent is more of an adventurer,          [1]   D.M. Boyd and N.B. Ellison, “Social Network Sites:Definition, History,
buying from someone they don’t know.                                      and Scholarship”, Journal ofComputer-Mediated Communication, 13(1),
Interestingly, from this survey it is seen that 73% of the                2008, pp.210-230.
respondent said that the sellers are trustworthy and they also      [2]   C. Dwyer, S.R. Hiltz, and G. Widmeyer, “Understanding Development
                                                                          and Usage of SocialNetworking Sites: The Social Software Performance
find shopping by social network convenient but on the other               Model”,in the 41st Hawaii International Conference on SystemSciences,
hand they said that they are unlikely to buy products from                Waikoloa, HI, 2008.
shops on social network.                                            [3], “Facebook Reaches 500 MillionUsers”,
                                                                    [4]   (,           2009,last
From this survey we can conclude that the number of                       accessed on April 12, 2009.
purchasing in social network is still lower than the number of      [5]   S.P. Andon, “Evaluating Computer-MediatedCommunication on the
products offered. The reasons behind this might be that people            University Campus: The Impact ofFacebook.Com on the Development
                                                                          of RomanticRelationships”, in College of Communication, The
still prefer normal shopping, as they get the goods straight              FloridaState University, 2007.
away. Offering goods in social network should be more               [6]   N.B. Ellison, C. Steinfield, and C. Lampe, “SpatiallyBounded Online
appealing to the customers, for example selling goods in                  Social Networks and Social Capital: TheRole of Facebook”, in the
cheaper price or things that you cannot find in local shops.              Annual Conference of theInternational Communication Association,
                                                                          Dresden,Germany, 2006.
In the following are the survey findings shown;
                                                                    [7]   N.B. Ellison, C. Steinfield, and C. Lampe, “TheBenefits of Facebook
Female 72% say shopping through social networks is                        "Friends:" Social Capital and CollegeStudents’ Use of Online Social
convenient                                                                Network Sites”, Journal ofComputer-Mediated Communication, 12(4),
                                                                    [8]   A. Bhattacherjee, “Understanding InformationSystems Continuance: An
         56% say they sometimes know the seller                           Expectation-Confirmation Model”,MIS Quarterly, 25(3), 2001, pp. 351-
         BUT 72% say they are unlikely to buy products from               370
social networks                                                     [9]   [3] J. Ethier. Current Research in Social NetworkTheory, Last Visited
Male     50% says they don’t know the seller

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                                                                                      International Journal of Computer Information Systems,
                                                                                                                           Vol. 2, No.4, 2011
[10] B. Satterfield. What Can Social Networking Dofor Your Organization?,
     Last                          Visited                           August
                                                                                                 Md. Shariful Alam, completed BSc(Eng.) in Computer
[11] The Business Impacts of Social Networking. (2008, October 11).                              Science and Engineering from Chittagong University of
     Retrieved      October    14,   2010,     from    AT&T       Business:                      Engineering and Technology, Chittagong, Bangladesh                          on 2008, Now he is studying Master’s in Informatics
     10-08.pdf                                                                                   under School of Business and Informatics, Högskolan i
[12]                             Borås, Sweden. He has almost 4 years professional
     networking-structure.html                                                                   carrier in software development field. His current
[13]                       research interest: Object Oriented Technology,
                                                                                                 Software     Engineering,    System     Development
                                                                                                 Philosophy, Image Processing, Information System and
                                                                                                 Business Process.
                           AUTHORS PROFILE

                                                                                                 Shakti Raj Pandey, completed BSc(Eng.) in
                      Md. Rofiqul Islam, completed Bachelor of Science                           Information Technology, From University of Pokhara,
                      (Hons.) in Computer Engineering at American                                Nepal on 2006, Now he is studying Master’s of
                      International University of Bangladesh 2006. Now he is                     Informatics under School of Business and Informatics,
                      studying Master’s of Informatics under School of                           Högskolan I Borås, Sweden. This M.Sc is mostly finish.
                      Business and Informatics, Högskolan i Borås, Sweden.                       He has almost 2 years professional experience in
                      This M.Sc is mostly finish. He has Three International                     software development field. His current research
                      Journal publication. His current research interest:                        interest: Software Engineering, System Development
                      Parallel Programming, Information system planning,                         Philosophy, Information System and Business Process.
                      Software Engineering..

        April Issue                                                   Page 39 of 81                                       ISSN 2229-5208

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