The Impact of SMAC on Business Transactions
SMAC means social, mobile, analytics, and cloud (Kotelec, 2014). It is a combination of four technologies that are speeding up business transactions. This technology includes social media, mobile gadgets, sensors, and cloud computing (Kotelec, 2014). What caught my attention regarding the utilization of this technology was how it helps analyze consumer behaviors in different regions at very fast rates: it shows where and when people consume certain goods and services.
I believe this technology will impact a business by improving the sales of individual companies. However, it may also lead to unemployment since it does not require many people to operate. Therefore, many marketers and other people employed in the business sector risk losing their jobs. This technology has had an effect on me because it requires sophisticated computer skills, yet mine is not suitable. Worse still, it requires connectivity to social media: I use social media, but most of the other users are young, and transacting with them is very difficult due to our age difference.
I do not think it has any potential for improvement. It has included all the possible areas. However, it still has a future since many people are still adapting it, and it has proven to be effective in many fields.
Advantages
- It reduces the cost of marketing goods and services.
- It helps reach consumers from all parts of the world in a short period.
- Since many people know how to use social media and mobile gadgets, it does not require new skills for use in the workplace.
Disadvantages
- Replaces manpower with computers.
- Age and language barrier hinders some business transaction.
WhatsApp as the Future of Business Transactions
Many people in countries such as India use Whatsapp in their business transactions (Belanger, 2014). Such transactions do not involve adverts and most of the other elements of business transactions. However, its use caught my attention because it is possible to send images of the products and have instant feedback.
I think WhatsApp will impact a business by speeding up the transactions because WhatsApp is cheaper than ordinary texting, and customers can send images of their products and get feedback within one minute. This invention has not had any negative effect on me. In fact, it has helped me communicate with friends abroad at lower costs compared to ordinary texting. I believe it is possible to make improvements in the use of WhatsApp in business. Its inventors can make it accommodative to business persons by creating a customized component for advertising.
Advantages
- Quick feedback on products.
- It is cheaper than texting and other social networks.
- It can be used in the workplace, especially for sending photos and videos, without requiring new skills.
Disadvantage
It only works on special phones, which may be expensive for people in some countries.
Social Media and B2B2C Transaction
Over the past two years, the B2C model of business transactions has been replacing the conventional B2B model (B2B vs. B2C, 2014). In other words, manufacturers are in direct contact with their customers. The reason for this trend is an improvement in the level of market knowledge due to the help of social media. This model captured my attention when I found all the information about my dream car, Ford Mustang, on Facebook. Some friends also informed me via Twitter that I could buy it directly from the manufacturers.
The use of social media will help consumers get goods at lower prices because no third parties will be involved in the transactions. This new business model has affected me since I consult Facebook pages for almost every product before buying it. There is still potential for improvement in this sector since not all businesses have embraced the use of social media. It will be more efficient when all manufacturers adopt the use of social media to reach out to their clients. This model of the transaction has a future since more people are joining social media.
Advantages
- It is easier to reach international customers.
- Cuts the cost of products by not involving retailers.
- Users do not require special skills.
Disadvantage
Only social media users can benefit.
References
Kotelec, M. (2014). Five manufacturing trends that will shape the market in 2015.Industry Week. Web.
Belanger, B. (2014). Whatsapp, your next best business tool. Web.
B2B vs. B2C marketing: How social media has blurred the lines (2014). Web.