Monday, March 27, 2017

Deloitte’s Report on Facebook’s Global Economic Impact

1.      How does Social Network Analysis play an important role in shaping

a.       Users behavior in terms of conducting businesses
Facebook facilitates economic activities than have an impact to the users behavior as it:
·         Allows new and traditional business all over the world to reach customers locally, nationally, and globally.
·         Reduces barriers to marketing by helping businesses of all sizes raise awareness of their brands and find people most likely to be interested in their products and services.
·         Support entrepreneurship by providing a way for businesses to promote their activities.
·         Enables new ecosystems such as the app economy that stimulate innovation and generate jobs.
·         Increase demand for mobil devices and internet services that carry positive spill-overs to other parts of the economy.

b.      The economic outcome locally and globally?
Facebook connects more than 1.35 billion people with their friends and families around the world, and helps them discover new products and services from local and global business. It is a catalyst for economic activity in ecosystems composed of marketers, app developers, and providers of connectivity. Facebook enabled $227 billion of economic impact and 4.5 million jobs globally in 2014. Facebook’s business model focuses on tools that allow business to reach new and existing customers through pages and advertising. These tools help business to grow the sales and ultimately employ more people. This broad economic impact enables far more revenue and jobs for global and local economies than Facebook’s own company operations.


2.      Explain the implementation of SMART concepts in integrating Facebook services into a company’s business (Specific, Measureable, Assignable, Realistic, Time-Related)

a.       Specific (the exact outcome to be achieved for the period)
In 2014 more than 1.35 billion people around the world log into Facebook at least once a month, a 14% increase compared to a year ago. More than 83% of people active on the platform log in via their mobile devices and many of them return to check their News feed multiple times a day.

b.      Measurable (units of accuracy, timeliness, completeness, quality, quantity rate or cost used to determine progress and achievement)
In the United States, Facebook accounts for nearly 20% of all time spent on mobile. Altogether people on Facebook represent the largest audience in the world that is reachable on a single platform. Through its wide reach and high user engagement, Facebook provides business of all sizes and technical sophistication with a significant opprtunity to speak directly with their customers.

c.       Assignable (so that the objective can be achieved (but stretching) within the scope of the role, skills and capabilities with appropriate effort and motivation)
As of June 2014, more than 30 million small and medium businesses have established a Facebook page, and more than 1.5 million companies actively use Facebook’s targeted advertising system to reach potential customers. The number of active advertisers has grown by more five hundred thousand since 2013.

d.      Realistic (so that the objective states the individual’s share of the work to be done for the department)
Facebook has become a hub that democratizes marketing and it facilitates economic activity for businesses of all sizes.
Marketing: use marketing platform to connect with consumers and build brand value then have impact in the developer app economy and create the sale of mobile devices and internet connectivity.
The new economic activity enabled through Facebook’s emergence and growth in the relevant ecosystems.

e.       Time-related (so that the objective has a realistic time frame for completion)
In order to attribute Time-related value to Facebook, the results of the study estimate the economic activity enabled by Facebook after deducting pre-existing activity estimated to have been displaced.

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