Social Media: The Core of Enterprise 2.0

Social Media: The Core of Enterprise 2.0

Ashok Kumar Wahi, Yajulu Medury, Rajnish Kumar Misra
DOI: 10.4018/ijssmet.2014070101
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The purpose of this paper is to provide an understanding of the Web 2.0 phenomenon and social media and its implications on customer relationship management, in order to learn that online communities and social networking are at the core of the enterprise of future or Enterprise 2.0. A range of published articles and books regarding Web 2.0, Enterprise 2.0, CRM 2.0 and social networking are examined and critiqued. A model is proposed to establish the association between Enterprise 2.0 and Information Technology from the perspective of social media. The sources are divided into three basic elements: Web 2.0, Online Social Networking websites and CRM 2.0. If Enterprise 2.0 is the enterprise of future then Social Media is the future of enterprise. Customer engagement and customer value proposition form the core of Enterprise 2.0 and online communities and social media form the corresponding core for knowledge creation and integration of Enterprise 2.0. Social media should affect customer relationship management in organizations. In the knowledge society of the future extended enterprises will become the basis of business rather than the competitive strength of individual enterprises and therefore the need to proactively prepare for it.
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Social Media And The Web 2.0 Phenomenon

Looking from a purely technical point of view there is not much that is common between the two. However when both are merged and analysed, what is obtained is the immense power with the potential of transforming not just our daily lives but how things take place in businesses also. Web 2.0 calls for a discourse because it assists in the delivery of social networking capability.

Web 2.0 Has Been Around For Some Time

The term Web 2.0 was coined by Tim O’Reilly, founder and CEO of O’Reilly Media, Inc., and the term became better known across the industry after the O’Reilly Media Web 2.0 conference in 2004 (Bernal, 2009).

O’Reilly, in perspective, two years after the term was coined, defined Web 2.0 as ‘‘the business revolution in the computer industry caused by the move to the internet as platform, and an attempt to understand the rules for success on that new platform. Chief among those rules is this: Build applications that harness network effects to get better the more people use them.’’ (Musser & O’Reilly, 2006).

O’Reilly has stated that Web 2.0 does not have a hard boundary, but rather, a gravitational core (O’Reilly, 2005). The core, a set of principles which are similar but not identical, imply on several aspects of the Internet industry, starting from the way software is developed, through marketing, content development and day-to-day operations.

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