The Death of Social Media in Start-Up Companies and the Rise of S-Commerce: Convergence of E-Commerce, Complexity and Social Media

The Death of Social Media in Start-Up Companies and the Rise of S-Commerce: Convergence of E-Commerce, Complexity and Social Media

Suresh Sood (UTS Business School, University of Technology, Sydney, Australia)
Copyright: © 2012 |Pages: 15
DOI: 10.4018/jeco.2012040101
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Abstract

Startup employees led by the entrepreneur are masters of embracing complexity. This means the startup team understands cause and effect follow a non-linear relationship with the subtlest of changes potentially resultant in producing chaotic behavior and surprise. For the startup, this means counterintuitive thinking wins the day. In light of this, small expenditures can have a greater impact on developing new business. The startup employee prefers not to be constrained by desktop or the old broadcast model of email; instead exploiting social technologies anywhere. A startup is a learning organization improving processes and results on an ongoing basis mirroring entrepreneurship as a learning process. Startup employees realize success goes beyond consideration of product functionality or a track record built on an existing base of customers. With major technology disruptions during 2012-2014, the potential to launch a “startup-in-a-box” integrating social, mobile, and wearable computing technology is a reality and essential. Only through a combination of social technologies can startups and founding employees maintain pace with the changing business landscape and generate a rapid amount of knowledge to sustain sufficient advantage in the market. Furthermore, the forthcoming death of social media and rise of S-commerce as convergence with E-commerce progresses to help generate revenues from newfound knowledge perfectly complements startup employees.
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The Business Environment Challenge Of Internal Startups

The internal company startup groups form part of small to mid-size organisations operating in a business as usual (BAU) manner yet the environment in which they operate is changing drastically. For example, the global retail environment is undergoing tremendous pressures from customers purchasing online. In turn, the large retail chains desire to work directly with manufacturers bypassing the distributors to obtain a greater margin. Under this circumstance, the distributor faces total extinction or move to a future state transforming to become a brand owner dealing directly with consumers online (Figure 1). Thus, the distributor bypasses the retailer online and finds creative approaches to working in-store (offline).

Figure 1.

Transforming to brands

In light of this, the distributors failing to transform are unlikely to remain in business over the forthcoming 3 to 5 years. New players as brand owners will replace the distributor of 2012. Software organisations face similar challenges. The software as a service model forces the traditional software supplier to reinvent or die. In the service model the software supplier no longer receives a capital expenditure but an ongoing monthly fee for customer access to the software.

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