How Can Web Based Applications Help and Influence Businesses Today?

By
Andrew Hansen
# 297 349

April 6, 2012
Professor Frank Ezinga
BUSI 370

Table of Contents

I. Introduction of Topic

II. Literature Review

III. Discussion

IV. Conclusion

V. References

VI. Appendices

I. Introduction of Topic

The ability for businesses today to effectively respond to changes in both their external and internal environments relate directly to their success. If a business has the ability to respond to changes in the external environment such as demands, trends and customer preference they can then structure their procedures and policies to maximize profit (Meyer 5). In the same sense if a firm is able to regulate and maintain an internal environment within the firm that is positive, influential and innovative then they will be able to more efficiently react to external changes and to stimulate new product ideas and efficiency from their employees. Businesses are continually searching for innovative ways to create a competitive advantage over their competitors. Ways that allow their firm to be able to respond better to their environment then others within their market (Table 1). This search is critical in relating to the future structure and success of the firm and will dictate whether or not this business will be able to survive in such a competitive economy. In the last few years the emergence of the Internet and other similar technology has changed the ways that businesses operate. Small businesses now are given the opportunity to compete with bigger more popular business through the use of the Internet and its many capabilities. In essence the Internet has completely revolutionized the world of business today and how it operates. Businesses today can now use web-based applications, tools or applications for the web, to more effectively respond to the external and internal environments and in doing so become more efficient as a firm. There are so many different ways that web-applications can affect businesses today to allow for more efficiency and growth. The key is for a business to implement the correct tools and applications to maximize efficiency. The introduction of web-based applications into new businesses completely changes the organizational structure and culture of any business through a new sense of transparency and communication. The internal environment of this particular business, that has implemented web applications, now shifts into a culture of innovation through appropriate applications. Web based applications can create a sense of unity throughout all levels of management by the ability for every employee to have access to similar information and equipment. When web-based applications are introduced within the external environment of today businesses are able to gather and organize data in a more effective way. Business can utilize different web applications to collect and analyze the data of consumers, creating a more effective marketing and distribution plan. No matter how you look at it web-based applications have changed the entire way that the business world operates today. Web applications are continuing to introduce new ways and ideas in how to organize and target new and old customers. It is allowing firms to create and sustain a market where before never seemed possible. The influence of web-based applications has changed the art of business like never before. Throughout this research paper we will discuss the changes that have occurred, the results generated through web based applications and lastly how a business can apply web-based applications internally.

II. Literature Review

In order to gain an educated insight into how web based applications can affect businesses today several resources were required to create evidence of real world scenarios. These resources were able to strengthen the argument of how through using specific web-based applications in today’s economy businesses will become more efficient and effective. The resources are as follows:

The article “The Social Side of Business 2.0” by Daniel Burrus contributed to the development of my paper through the context of social media. I was able to gain a more in depth insight towards how business can utilize web-based applications to create a level of social networking. This networking was able to stimulate a relationship between a consumer and a business. Burrus talked about how in today’s society media is everything and therefore businesses need to capitalize on networking this resource. I used this article to illustrate key points to how business can facilitate communication with clients directly through web-based applications. Within this article Burrus also highlights 8 innovative ways that business can facilitate social networking through web-based applications. By offering so many alternatives and examples this article significantly strengthened my research in the area of communication. The article by Brian Ganapathy, “Total Transparency” illustrated the ability and influence of web based applications in regards to the internal environment. Web-Based applications do not always have to be directly targeted towards the consumers but can also be utilized in a way to organize operations and communications internally. This article strengthened my research by providing in example towards the diversity of web-based applications in regards to communication. This allowed me to demonstrate how specific applications can stimulate transparency through technology leading to a more team orientated atmosphere and vision. Kevin Hill’s article on “Start up Helps Local Businesses Stalk Their Competitors on Social Media” illustrated how web-based applications can directly capture consumers. This article strengthened my research by providing a physical example of how applications can increase the profit of a business. This article by Hill illustrated the simple ways that web-based applications can be used and explained how they can be adapted within a companies philosophies and marketing scheme easily. Rapoza illustrates in his article,” Information Technology,” the specific type of atmosphere that must be present when a firm is attempting to adapt new web-based applications. This article strengthens my research in the sense that it illustrates the specific characteristics a firm must have to implement web-based applications and the particular atmosphere that must be present when implementing new software. Meyer in his article “Does Social Software Support Service Innovation?” Adds a whole new dimension towards the advantages of web-based applications. This article directly illustrates how innovation can be supported and encouraged through applications. Meyer’s article provides key evidence towards the importance of web-based applications. In today’s society businesses must have innovation to be successful. Through this article it provides a direct reference to how web-based applications can immediately impact the success and the future efficiency of the business. Miles discusses through his article about the importance of social networking in an environment that is exponentially increasing its dependence on technology. I used Mile’s position as a voice within my paper to strengthen the web-based application influence. Miles provides excellent examples towards how social networking has evolved over the last 10 years. Through the information I was able to determine that social networking and communication are the greatest ways that web-based applications can influence a business today.

III. Discussion

For a business to survive in today’s economy they must have a mindset that is continuing to grow and expand. A business cannot be stagnant, if they do they will fail (Knuckles 4). A firm must be able to implement changes and react to current trends to stay up to date and competitive. Today businesses are continuing to look for ways to make their firms more flexible through new technology and structures. A large part of being successful today is the ability for a firm to respond to its external environment through their internal organization and structure. This is often difficult to do, therefore the ability for a firm to facilitate this relationship effectively reflects the success of the business. In the last couple of years the internet has grown as a reliable resource and tool that businesses can now use to interact with their environment (Table 3). With this change and advance in technology new methods have developed that provide businesses a more effective way to respond to the needs of their external and internal environment (Table 7). Tools or applications accessed over network, known as web-based applications, have been introduced and have completely redesigned how business operate today. This introduction of web-based applications has created so many new opportunities for businesses and has surprisingly levelled the playing field between large and small sized companies (Meyer 4). Applications have revolutionized how firms communicate and connect with the consumer in so many different ways. This increase in demand and dependence of web-based applications has created a level of uncertainty in regards to how in fact web applications can actually influence and help a business. So when evaluating the influence of web-based applications today it is important to recognize three key characteristics that stand out amongst the rest. The three distinct ways that web-based applications can change and influence a company lie within the areas of innovation, communication and transparency. Essentially the core of what a business truly is. These three characteristics are how web-applications can influence a business today. Within these areas the introduction of appropriate web-based applications can completely revolutionize how a firm previously operated. Each of these areas are what facilitates how successful and competitive a firm is. Through the analysis of these functions of a firm we can see how successful web-applications are in influencing the effectiveness of a business. The diversity of web-applications today allow for business to choose what technologies they want to adapt to create a specific culture that their employees and potential customers can relate to. In the sense of web-based applications films can choose from a variety of perspectives to shift and shape both an internal and external culture. The first of the three characteristics, innovation, the creation of better or more effective products, process, services and technology that are accepted by society, allows for firms to stay competitive. Innovation is introduced and encouraged when there is an increase in knowledge sharing through web applications in business today (Meyer 290). In business today employees need to have access to internal information to be effective and innovative. Therefore innovation can be stimulated by the appropriate implementation of web-based applications such as Cloud computing and Social software (Ganapathy 1). Innovation is key to the success of any business today because it generates an atmosphere where employees can take risks and make mistakes. Cloud computing facilitates knowledge sharing which encourages innovative decisions. “Innovation in services relies mainly on two important features: the internal knowledge within the organization and its employees and the external network of the firm including customers and other businesses” (Sundbo, 1997). Business can apply web-based applications to directly stimulate more internal knowledge sharing with employees and customers, which will shape the entire vision and future of the firm. By allowing all employees to have access to knowledge you are essentially increasing the responsibility levels of each individual, resulting in an increase in productivity. This sense of knowledge and pride, facilitated by these web applications, creates a sense of community to which innovation is introduced. “Web-based applications and social software have the potential to support the innovative capability of firms due to its application in knowledge management where it creates knowledge transparency and supports knowledge exchange via a faster access to information, more efficient communication and appropriate tagging and linking” (Miles 2). In business today web-based applications can have a direct impact on the innovative capabilities of a firm by organizing and storing information through tools, which will allow employees, managers and potential customers to be more effective. Thus illustrating how web-based applications can have a positive influence on how the firm operates innovatively. Web-based applications can also help introduce and foster communication, the largest and most important aspect in business today, within the context of an appropriate environment (Table 2). Communication relates to everything a business can and can not do. If a firm is able to effectively communicate to its employees and its customers then they are in turn able to be profitable (Knuckles 12). Our world continues to operate in a society where communication dictates everything, therefore if a firm can’t communicate then by definition they can’t succeed. A firm needs web-based applications to stay competitive because of our society’s exponential dependence on technology (Table 4). If used appropriately the introduction of specific web-based applications can completely reinvent the way a business operates. Daniel Burrus’ article perfectly introduces several web-based applications that can directly increase the communication within a firm. There are 8 different web applications that have the ability to foster and stimulate networking both internally and externally to increase the level of communication within a business (Table 6). Through facebook, twitter, wikipedia, youtube, Digg, Visual Communication, Wiki, Cloud Computing and Saas, firms are able to captivate the area of communication. These web applications illustrated here and Web 2.0, the 2nd generation of web development and design that focuses on fostering social networking, illustrate how business are able to be positively influenced in the area of communication (Table 5). Social networking is the most influential aspect of web-based applications that have the potential to change how a business operates today. Our world is organized and operated by different levels of social networking that illustrates to consumers what is popular and what is not (Burrus 16). If a firm can capitalize on this then they can ensure themselves a future filled with success and profitability. Transparency is a characteristic that is difficult for a business to entertain but if it is introduced it has the ability to create an atmosphere of productivity and cost reduction. Transparency, much like communication, requires everyone within a particular business to be on the same page. Transparency directly relates to openness, communication and accountability (Miles 7). In the business world transparency is extremely effective in regards to relationships between suppliers and retailers. If a business is able to be transparent with their supplier they will be able to reduce costs and create a relationship that fosters the ability to succeed in a competitive environment. Services are characterized by an intense interactivity between supplier and client, and are often produced and consumed at the same time (Evangelista, 2000; Miles, 2005). Transparency can allow for effective relationships between suppliers and clients resulting in better business operations. In the scope of web-based applications businesses can introduce online collaboration portals that provide retailers and their supplier partners the insight they need to make win-win decisions for each. In more a specific way a web-application tool that can be introduced to increase the efficiency of a business would be a retail-centric collaborative supplier portal. This web application would directly increase the transparency of a business within the retail and sales industry. As discussed in the area of innovative characteristics of a firm, a centralized online hosting system can help increase the transparency of a business (Ganapathy 1). Such supplier collaboration has tremendous productivity and efficiency benefits by streamlining and automating the traditional paper- and time-intensive activities associated with order management, procurement and delivery, product information management, vendor performance, product development, inventory management, promotion programs, rebates, customer insight, and new product introductions. (Rapoza 1). The ability for a business to implement different web-based applications within the areas of innovation, communication and transparency will directly reflect the success of any business in today’s economy. The world of business is challenging and managers are forced to continue to shape their company to the structure society is pushing. Different web-based applications will become popular at different times and it is directly up to the business to make sure they are able to appropriately use the tools of the Internet to maximize the opportunities. Web-based applications can completely change and influence the strategic capabilities of a business and the operational capabilities no matter the context or scenario. Web-based applications work and the faster businesses realize this the sooner they will find success.

IV. Conclusion

Through the analysis of current businesses today it is clear that web-Based applications are crucial in facilitating the efficiency of operations, communication of personnel and reduction of costs. In such a competitive environment today businesses need to be able to respond effectively to changes in demands within their environment and web-applications offer an opportunity to do so. With the implementation of web-based applications businesses today can truly reshape their culture and core competency to better serve their demands. Through the introduction of web-based applications and web 2.0 businesses have been able to completely change the ability to innovative, be transparent and communicate. Web-based applications are a perfect response to a consumer base that is continuing to become more and more dependent on technology and networking. Businesses now have access to software that can become personalized to the needs of any particular business allowing for elaboration. This personal connection influences and encourages more lucrative relationship between businesses and consumers. Through all this new technology the most effective way that businesses have discovered to use web-based applications is within the communication aspects of the firm, most notably “Social Networking.” Today our society is becoming more dependant on the Internet and other technology to make connections within businesses (Table 7). In order to react and understand specific demands and trends Businesses must utilize the specifications of web applications to collect, organize and store data. The greatest need in today’s current economy is communication because of the generational outlook towards sophistication of software (Davis 1). In hindsight Web-based applications can influence and effect businesses today in so many different ways. As technology continues to advance so will the tools to utilize it. Firms will need to respond to these changes in technology and demand in order to stay competitive and successful. As long as businesses are able to implement the most effective software and capabilities that facilitate the operations of their firm in the areas of innovation, transparency and communication then they will be effective. When these characteristics are functioning the influence of web-based applications is clearly being illustrated and success is generally associated. Jani McKay, professor at Trinity Western University, once illustrated that a business is just like a person. It has a physical element, in the sense of human resources and manufacturing of a product, good or service, and it also has a personality element, in regards to the internal environment and how the business is structured through technology and resources. In light of these words web-based applications can provide a business today with a brilliant and vibrant personality that allows for the firm to react and communicate with any other individuals and business within their environment. Creating a successful lifestyle and career through an extroverted and advanced personality reflected and stimulated by the correct and appropriate implementation of web-based applications.

V. References

Burrus, D. (2011). The Social Side of Business 2.0. National Underwriter / Life & Health Financial Services, 115(24), 16-18

Davis, G. Entrepreneur; Apr2012, Vol. 40 Issue 4, p36-36, 5/6p, 1 Color Photograph

Dealernews; Apr2012, Vol. 48 Issue 4, p56-56, 1p

Evangelista, R., Sirilli, G. and Smith, K. (1998) Measuring innovation in services, IDEA paper series 6.

Ganapathy, B. (2011). Total Transparency. Progressive Grocer, 90(5), 142

Hill, K. (2011). Start-up Helps Local Businesses Stalk Their Customers on Social Media. Forbes.Com, 44

Knuckles, Craig D. (2005.). Web applications : concepts & real world design. Hoboken, NJ: John Wiley. 125-197

Marceau, G. (2011). Extended Information And Decision Networks. Journal Of Internet Banking & Commerce, 16(2), 1-10...

Meyer, J. (2010). Does Social Software Support Service Innovation?. International Journal Of The Economics Of Business, 17(3), 289-311. doi:10.1080/13571516.2010.513814

Miles, I. (2005) Innovation in services, in: J. Fagerberg, D.C. Mowery, and R.R. Nelson (Eds), The
Oxford Handbook of Innovation, pp. 433–58 (Oxford: Oxford University Press).
Rapoza, J. (2007). IT PLANNER 5 STEPS, 24(27), 41-44.

Sundbo, J. (1997) Management of innovation in services, The Service Industries Journal, 17, pp. 432–55.

VI. Appendices

TABLE 1. Descriptive statistics: Purpose of social software use, internal versus external Variable Percentage of Firms No social software 67.63 Social software for internal purposes only 10.10 Social software for external purposes only 5.57 Social software for both purposes 1 16.70
Sum 100.00

Observations reduced to 485 due to firms indicating that they use social software without specifying

TABLE 2 Purpose of Social Software Use Variable Percentage of Firms Internal communication 55.37 Internal knowledge exchange 49.15 External communication 37.85 Composition/support of customer relationships 35.03 More efficient business processes 32.20 Innovation stimulation 31.07 Work on joint project with other firms/freelancers 24.86 Advertisement for new products 11.30 Other purposes 1.13

TABLE 3:

TABLE 4:

TABLE 5:

TABLE 6:
1) Facebook: This application allows you to connect and share. Contact employees which creates internal collaboration.

2) Twitter: A micro blogging service that has short quick answers 140 characters. Generates marketing opportunities and has potential to solve internal problems.

3) Wikipidea: An internal and secure web 2.0 where engineers around world have the ability to share info in a secure environment.

4) Youtube: Web 2.0 uses youtube as a marketing tool to create funny videos for promotion.

5) Digg: An internet software where individuals submit links and stories to share. Good way for firms to track advances in technology and to observe trends.
6) Visual Communications: When firms use laptops, phones for video conference. Face to face which enhances connection with sales force, business partners and consumers.

7) Wiki: Collaborative websites, community websites to help share information.

8) Cloud Computing & Saas: Storage software, IT process, data centre facilities. Gives
24/7 access to info. Can streamline out IT needs of the firm.

TABLE 7: