Social Networks and the Business Value of Social Media

Abstract. Social Media (SM) is a participatory people-to-people media that leverages Web 2.0. Internet technology to facilitate individuals to connect to one another. SM assists in an effective dialogue between users, thus, enabling them to dynamically participate, review and contribute their thoughts, feelings, ideas, photos, videos, among others. Businesses are using SM to see how the products are being reviewed and rated by consumers and what the blogs and discussion boards are telling about their company and its products. Others are building businesses around this technology. By observing several blogs, discussion forums, social networking sites and general websites, we critically evaluate the impact of SM in the development of business. We also argue that description of SM should not be restricted to just social networking sites but must also include sites that bring service providers and customers together. We finally conclude by distilling our interpretations and findings