Social media are credited with fueling the uprisings in the Middle East, and two cases this week show the influence it can have on business.
As Al Maag points out in his blog, the changes Facebook (Nasdaq: FB) made to its site have raised such a hue and cry that the uproar is its own news story. (See: Is Your Business Face on Facebook?) Facebook invited user feedback, which so far seems overwhelmingly negative. It doesn't sound as if Facebook is going to change things back, though. The vibe I'm getting is that, like Apple Inc. (Nasdaq: AAPL), Facebook is telling users, "We know what's good for you. Just hang in there." The first iPhone had connection problems when handled a certain way, and Apple's original response was "So don't do that." It has since fixed the problem.
In contrast, we have OnStar, which reversed its policy yesterday regarding data collection and its subscribers. OnStar told the press:
OnStar announced today it is reversing its proposed Terms and Conditions policy changes and will not keep a data connection to customers' vehicles after the OnStar service is canceled.
OnStar had recently sent e-mails to customers telling them that effective Dec. 1, their service would change so that data from a customer vehicle would continue to be transmitted to OnStar after service was canceled -- unless the customer asked for it to be shut off.
"We realize that our proposed amendments did not satisfy our subscribers," OnStar President Linda Marshall said. "This is why we are leaving the decision in our customers' hands. We listened, we responded and we hope to maintain the trust of our more than 6 million customers."
If OnStar ever offers the option of a data connection after cancellation, it would only be when a customer opted-in, Marshall said. And then OnStar would honor customers' preferences about how data from that connection is treated.
Maintaining the data connection would have allowed OnStar to provide former customers with urgent information about natural disasters and recalls affecting their vehicles even after canceling their service. It also would have helped in planning future services, Marshallsaid.
"We regret any confusion or concern we may have caused," Marshall said.
Not all the correspondence between Apple, OnStar, and their users was via social networking, but you can bet a big chunk of it was. Even if comments weren't sent directly to the companies, readers, users, "Friends," and the news media were able to gauge public reaction through posts, Tweets, blogs, and Likes. I know OnStar was monitoring posts, because it sent its statements directly to me, and I quoted the Wall Street Journal as my original source regarding OnStar. (See: Measuring the Value of 'Big Data' in the Supply Chain.)
OnStar has impressed me on two levels. First, it responded quickly and decisively to its users' concerns. Second, it went the extra mile to track down EBN's editorial e-mail address. (I'm sure there is an automated data-collection technology behind that, but still…)
These businesses will continue to collect data, but that's not the point (at least for today). Social media played a big role in the decisions these companies made. I've had my doubts about social networking and its application in business, but I'll never deny its power.
The negativity over the recent Facebook changes seems overly-hyped, and the relative indifference over OnStar's callous treatment of customer preferences underscores this. The difference between the two companies in their customer relationships goes beyond the degree of control customers have on what data is transmitted.
With OnStar, your vehicle's operation is potentially turned over to a remote third party. This is not always an error-free proposition and false alarms have been known to happen. This scenario is a lot more disturbing than your Facebook information becoming more visible to your Facebook friends.
After OnStar's violation of their former customer's right to sever a business relationship, I would take their latest assurances with a grain of salt. Certainly an RF transmitter ceasing to operate is a tricky thing to verify, and probably incurs some cost to verify.
Facebook though unrepentant, realised the importance of gauging its users or customers mood via its recent site alterations.
@Anna young I agree with you. Facebook is still unrepentant. But I guess this attitude is slowly changing after google+ was released. Till now FB didnt care to gauge its customers mood, but after Google+ success FB is worried about its market share.
Social media played a big role in the decisions these companies made.
@Barbara, I totally agree with you. Social media is playing vital role in the decision these companies are making. Infact social networking sites like Twitter are being used by hedge fund managers. The millions of tweets posted on Twitter are being analysed by hedge fund managers to predict share price patterns. As you rightly summarised we cannot deny social meidas power.
Exactly, FlyingScot. I've seen it at work in marketing campaigns that people soundly rejected and posted about why on social media outlets, as in the case of the aborted Got Milk? campaign that ran this summer. You can get some sense of the discussion and arguments it sparked at http://gotdiscussion.org/#/
While I don't like the changes that FaceBook has made, I do see a bit of a difference between the FaceBook situation and OnStar. With FaceBook, uses have volutarily (and often naively) place information in the public domain, giving the user control of the data provided (although no control over how it is used, which should be a concern to users). With OnStar, the user doesn't know or have control over what information is collected or how it is used, whether they subscribe to the service or not.
Social networking is a very powerful tool and companies should try their best to harness the force. I suppose like anything else it can be used for good or bad and so companies must view it as another check and balance on business conduct.
“Facebook invited user feedback, which so far seems overwhelmingly negative. It doesn't sound as if Facebook is going to change things back, though. The vibe I'm getting is that, like Apple Inc. (Nasdaq: AAPL), Facebook is telling users, "We know what's good for you. Just hang in there." The first iPhone had connection problems when handled a certain way, and Apple's original response was "So don't do that." It has since fixed the problem.”
I think it’s a wrong policy of Facebook. They are forcing the user to use, what they like on behalf of users taste. There is big question, how long they can force the users like that?
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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