Managing the Digital Enterprise

The report aims at providing an insight into managing the digital enterprise. There report discusses about the business models and strategies of four social networking sites like Instagram, Facebook, Messenger and WhatsApp. Based on this overview the report tries to explain how there is a significant amount of social media usage on the mobile devices. The report also tries to discuss as to how the social networking sites have become a part of everyday life of the people and their proper usage helps in ensuring business success by drawing in some examples. The report however ends with a discussion on the future of social networking sites.

Running head: MANAGING THE DIGITAL ENTERPRISE
Managing the Digital Enterprise
Name of the Student:
Name of the University:
Author Note:

1MANAGING THE DIGITAL ENTERPRISE
Executive Summary:
The report aims at providing an insight into managing the digital enterprise. There report
discusses about the business models and strategies of four social networking sites like Instagram,
Facebook, Messenger and WhatsApp. Based on this overview the report tries to explain how
there is a significant amount of social media usage on the mobile devices. The report also tries to
discuss as to how the social networking sites have become a part of everyday life of the people
and their proper usage helps in ensuring business success by drawing in some examples. The
report however ends with a discussion on the future of social networking sites.

2MANAGING THE DIGITAL ENTERPRISE
Table of Contents
Introduction:....................................................................................................................................3
Social Media Accounts for Significant Amount of Online Usage on Mobile Devices...................3
Instagram......................................................................................................................................4
Facebook......................................................................................................................................5
Messenger....................................................................................................................................6
Whatsapp......................................................................................................................................7
Reasons of People for Using Networking Sites...............................................................................8
Role of Large Internet Entities in Guarantying Business Success..................................................9
Instagram......................................................................................................................................9
Facebook......................................................................................................................................9
Messenger:.................................................................................................................................10
Whatsapp:...................................................................................................................................11
Reasons of Facebook for Buying Instagram and Snapchat...........................................................11
Reasons for Making Such Acquisitions.........................................................................................11
Possibilities of Facebook for Making Money In spite of the App Being Free..............................12
Reasons for Investing in a Networking Site..................................................................................12
Conclusion:....................................................................................................................................12
References:....................................................................................................................................13

3MANAGING THE DIGITAL ENTERPRISE
Introduction:
The report aims at providing an overview on the management of digital enterprise. Thus,
report will provide an insight into how various social media accounts for significant amount of
online usage particularly on the mobile devices. To analyze the fact, the report will mention the
business models and strategies used by four social networking sites like Instagram, Facebook,
Messenger and WhatsApp. Instagram represents a desktop, mobile and internet based photo
sharing service and application that allows the users in sharing videos and pictures either
privately or publicly with pre approval. Facebook represents an online social media based in
America that provides social networking services. However, Messenger represents a software
application and instant messaging service. Whatsapp is a cross platform and freeware instant
voice over and messaging IP service that allow the users to send text messages as well as voice,
video calls, images and documents from the user location. The report will also put forward an
insight on how the various social networking sites have become a part of our lives across the
globe and have helped in contributing to the business success when used across the right channel.
To analyze this, the report will put forward examples of few companies that have used various
networking sites that have also helped them to succeed.
Social Media Accounts for Significant Amount of Online Usage on Mobile Devices
The report commences by agreeing with the statement that ‘social media accounts for
significant amount of usage especially on mobile devices’. This is because of the emergence of
high-end smart phones along with the business level strategies of the social networking site to be

4MANAGING THE DIGITAL ENTERPRISE
supported by a mobile app. The business models and strategies used by four social networking
sites like Instagram, Facebook, Messenger and Whatsapp.
Mobile devices are taking over the landscape between the 18 to 34 year old demographic
profiles with currently 2.6 million users that will eventually grow by 6.1 million by the year 2020
(Arthur et al. 2014 ). This will be equivalent to equating around one Smart phone user in every
1.2 people across the world by the end of 2020. This had initiated additional investments by the
various social media platforms and Face book through its investments in Messenger is already on
its way. The increased use of social media on the mobile devices for sharing private messages is
infiltrated by the brands as a platform for customer service or newer distribution channels for
making money.
Instagram is bought by Facebook with around $1 billon cash. Instagram primarily focuses
at making money through advertising and generates revenue of around $6.82 billion. Facebook
also purchased the messenger service for around $19 billion and generated revenue close to
$1,289,000 by charging a meager amount of $ 1 dollar either for downloading the app (Team
2017). However, the most well known of all the social media app includes Facebook owned by
Mark Zuckerberg. The bulk of the revenue for this site comes primarily from the digital
advertisements.
Instagram
Instagram has a mobile product design that determines its success (Miles 2014). The
popularity of Instagram is driving every single person since it is easy to get started. The business
model and strategies that includes:
a. Easy Startup:

5MANAGING THE DIGITAL ENTERPRISE
One simply needs to go to the App store download, set an account by choosing a
username and a profile picture.
b. Sharing of Photos
The Instagram App allows the users to take pictures with the help of the app or use the
ones that already existed easily through the mobile device. The users can post title for each photo
and instantly share it on Facebook, Twitter, Flickr, Tumblr and Posterous.
c. Manipulation of Photos
The app has around eleven different filters to make the photos interesting. The most
boring photo can have an amazing look with the use of such filters within seconds of clicking by
the mobile camera.
d. Social Aspect
The Instagram App revolves around having followers and friends. Thus, it allows the
users to follow people by clicking few buttons of his/her mobile device.
e. Finding and Following People
Instagram allows the users to use their Smart phones to find their friends who are already
using it and follow them immediately. The app also comes with a feature known as ‘Invite
Friends’.
Facebook
The business model and strategies used by Facebook includes:
a. Ensures Easier Download:

6MANAGING THE DIGITAL ENTERPRISE
The Facebook mobile app is downloaded from the app market by just clicking few
buttons (Maher et al. 2015). After installation the user need to create an account with a user
name and password along with providing an email id to Facebook for receiving notifications and
account information. The user can then create their own profile by mentioning hobbies,
relationships and hometown along with a picture.
b. Allows a Quick View
The homepage of the app provides links to all the features of the social media website on
a smaller and convenient screen (Ray 2013) of the Smart phone. The features are related to the
news feed, profile, friends, messages and places thereby allowing easy access. However, the
notifications are visible at the bottom of the screen.
c. Allows Management of Admins
Facebook allows its users in assigning five different admins that includes editor
moderator, analyst, advertiser and another admin who have complete access through their mobile
devices.
d. Creation of Post and Schedules
Facebook allows the users in creating and publishing all sort of post including status
update, video, photo, sharing a link and creation of an event within seconds with the use of Smart
phone.
e. Adding Comments or Private Messages
The Facebook mobile app allows the users in easily responding to the comments of their
pages through direct messages

7MANAGING THE DIGITAL ENTERPRISE
f. Quicker Reply to the Messages
The app helps the users in replying and viewing the private messages on the page opened
in the Smart phone (Ho 2014). This helps in saving the time and effort.
g. Viewing Insights
The app allows the user especially the business owners and the marketers in checking
their page statistics while on the move (Wang, Pauleen and Zhang 2016) in their mobile devices.
Messenger
The business model and strategies used by Messenger includes:
a. Easier to Install
The Messenger app is installed into the mobile devices from the available app market by
the click of few buttons.
b. Allows Sharing of Relevant Content
The messenger allows the users to share of relevant and helpful content via his/her smart
phones.
c. Ensures Faster Response
The messenger ensures quicker business response and allows the user to experience better
customer service (Lezo 2015).
d. Provides Personalized Experiences

8MANAGING THE DIGITAL ENTERPRISE
Messenger helps in providing the users personalized experiences along with gaining a
deeper insight. The app helps in providing a real and friendly touch.
e. Helps in Enhancing the Shopping Experience
People can now use Messenger app strategy to enquire about brands they are unaware
and have a nice shopping experience simply by using the app in the mobile devices.
f. Ensures Direct Sales:
Businesses can use messenger and opt for direct sales to the customers easily by simply
installing its app in the smart phones.
Whatsapp
The business model and strategies used by Whatsapp includes:
a. Easier Installation
For installing, the app on the mobile devices users needs to go the play store and
download the free app.
b. Use of Changed Logo
The Whatsapp allows users especially the businesses to add a different logo with the
phone icon (Latiff and Safiee 2015). The logo makes them easily recognizable to the frequent
users.
c. Enables Registering Phone Numbers

9MANAGING THE DIGITAL ENTERPRISE
The Whatsapp app is a chat tool that allows users to register their mobile number and
businesses to use landline numbers for registering with the app.
d. Ensures Setting Automated Replies
The app also enables the users in setting up automated replies for answering queries even
when the user is unavailable for chatting at a particular moment (Muratovski 2015).
e. Tracking of Message Statistics
The Whatsapp app puts forward option for viewing data for the number of messages
received and sent. This helps in keeping a track of how the app is working for the user.
Reasons of People for Using Networking Sites
People use networking sites for interaction, talking with the friends, networking, business
purposes, entertainment and making payments. However, social networking sites like Instagram,
Facebook, Messenger and WhatsApp is helping businesses to succeed in terms of profitability,
expansion, image and reputation.
Role of Large Internet Entities in Guarantying Business Success
Instagram
The ways in which Instagram helps a business are as follows (Alkhowaiter 2016):
1. Enables businesses in setting up their Instagram account: This is ensured by either
including a link for boosting traffic to the site or staying recognizable with a photo and a name or
by including an interesting and informative bio that helps in hooking followers.

10MANAGING THE DIGITAL ENTERPRISE
2. Instagram allows businesses in creating popular posts through attractive photos that
helps in driving sales.
3. Instagram helps businesses on reaching a wider audience with the help of Hashtag
features. This social networking platform helps the business in introducing newer services and
products and enhances their profitability.
4. Instagram also helps in strengthening Customer Relationships. Business can also
integrate Instagram as one of the mediums for social media marketing thereby giving an insight
about the newer ways of the company (Kumar et al. 2016). Instagram however acts as a
beneficial tool in business promotion.
Facebook
The ways in which Facebook can promote a business are as follows (Trottier 2013):
1. Facebook puts forward a low cost marketing strategy that businesses can easily avail.
2. Facebook helps businesses in sharing basic information
3. This is a social media platform that allows businesses in sharing photos and videos
4. ou can use Facebook to 'talk' to existing and potential customers by posting and
receiving messages.
5. Facebook helps businesses in providing customer support by answering the after sales
queries of the customers.
6. This social media site helps businesses in enhancing their profile by asking potential
and existing customers in clicking the ‘Like’ button.

11MANAGING THE DIGITAL ENTERPRISE
Messenger:
The role of Messenger in Business includes (Torresi 2014):
1. Messenger allows businesses to send and accept messages instantly
2. The Messenger facility helps businesses to configure their business settings and
accordingly deal with the customers.
3. This social networking app helps in creation of saved replies that is not only efficient
but also professional.
4. This platform also helps businesses in personalizing their communication.
5. Messenger allows businesses in adding keywords so that conversations are easily
manageable.
6. Businesses can also add a messenger box to their website thereby encouraging the
visitors to contact with the help of the improved and new page plug-in function.
Whatsapp:
The role played by Whatsapp in promoting business includes (Ibrahim et al. 2014):
1. The Whatsapp allow businesses to undertake internal communication
2. This app also helps businesses in communicating with the customers
3. WhatsApp can act as a great tool for supporting customers because of its extensive
reach

12MANAGING THE DIGITAL ENTERPRISE
4. Businesses use this app for growing their business in a cost effective manner
Reasons of Facebook for Buying Instagram and Snapchat
Facebook paid an astonishing amount of one million dollar for acquiring Instagram
(Ibrahim et al. 2014). Facebook also wanted to acquire Snapchat whose co-founder rejected the
three million dollar offer of Facebook in buying this video and photo-sharing app.
Reasons for Making Such Acquisitions
Facebook acquired Instagram when it just had only 30 million users which later built up
to 600 million users (Muratovski 2015). The acquisition of Facebook proved that it could build
an ample number of products at a given point in time thereby sending messages across the
entrepreneurs in owning the best position in the Silicon Valley for driving the massive growth.
The acquisitions also provided a proof for existence ofMark Zuckerberg, owner, in turning the
visions of the growth and its impact in the reality without unnecessary meddling.
Possibilities of Facebook for Making Money In spite of the App Being Free
Facebook can make money through the availability of data or customer information (Ho,
2014). The networking site has undertaken self serve advertising thereby allowing marketers in
deciding the customers they wanted to appeal and buy the advertisements in putting it up in front
of the users who fits the profile. This is where the customer information comes into play.
Reasons for Investing in a Networking Site
The networking sites have helps many businesses in attaining success. For instance,
Zappos represents online retailers who sell clothing, shoes and accessories (Zappos.com 2018).

13MANAGING THE DIGITAL ENTERPRISE
The company has a Facebook custom page with a catchy caption that shows their treatment
towards the potential fans that further helped in solidifying their relationship in managing a
position in the market. Facebook, owned and created by Mark Zuckerberg has also helped
Zappos in earning some loyal customers and thereby enhance their sales.
Conclusion:
The report ends with a discussion on how social media helps in determining the success
of the business. There have been examples provided that supports this norm. The report also
discusses about the impact of various social media sites on mobile devices. The future of social
networking sites is quite bright as it is believed that brands will make their presence across
stories, news feeds and within the messenger services. This will help the brands in better
integrating with the lives of the audience. For businesses, launching of newer consumer products
will be a norm in future. Facebbook is believed to build better tools for providing assistance to
the brands. Chatbots will also make a mark in the field of social media marketing along with
Instagram stories staying visible and a top trend. With the advancement of technology, pages
would be easier to load thereby ensuring better results. The social media evolution will also lead
to expansion of the networks and connect a wider world. The social media will reach a stage
when it will help in live streaming for connecting to the rest of the world in real time.

14MANAGING THE DIGITAL ENTERPRISE
References:
Alkhowaiter, W., 2016, September. The power of instagram in building small businesses.
In Conference on e-Business, e-Services and e-Society (pp. 59-64). Springer, Cham.
Arthur, W., Doverspike, D., Muñoz, G. J., Taylor, J. E., & Carr, A. E. (2014). The Use of Mobile
Devices in High‐stakes Remotely Delivered Assessments and Testing. International Journal of
Selection and Assessment, 22(2), 113-123.
Ho, J.K.K., 2014. A Research Note on Facebook-based questionnaire survey for academic
research in business studies. European Academic Research, 2(7), pp.9243-9257.
Ibrahim, J., Ros, R.C., Sulaiman, N.F., Nordin, R.C. and Ze, L., 2014. Positive impact of
Smartphone application: Whatsapp & Facebook for online business. International Journal of
Scientific and Research Publications, 4(2), pp.1-4.
Kumar, A., Bezawada, R., Rishika, R., Janakiraman, R. and Kannan, P.K., 2016. From social to
sale: The effects of firm-generated content in social media on customer behavior. Journal of
Marketing, 80(1), pp.7-25.
Latiff, Z.A. and Safiee, N.A.S., 2015. New Business Set Up for Branding Strategies on Social
Media–Instagram. Procedia Computer Science, 72, pp.13-23.
Lezo Castillo, A., 2015. Social Media: Origins and Marketing Potential.
Maher, C., Ferguson, M., Vandelanotte, C., Plotnikoff, R., De Bourdeaudhuij, I., Thomas, S.,
Nelson-Field, K. and Olds, T., 2015. A web-based, social networking physical activity

15MANAGING THE DIGITAL ENTERPRISE
intervention for insufficiently active adults delivered via Facebook app: randomized controlled
trial. Journal of medical Internet research, 17(7).
Miles, J., 2014. Instagram power: Build your brand and reach more customers with the power of
pictures. New York, NY: McGraw-Hill Education.
Muratovski, G., 2015. Paradigm shift: Report on the new role of design in business and
society. She Ji: The Journal of Design, Economics, and Innovation, 1(2), pp.118-139.
Ray, R., 2013. The Facebook guide to small business marketing. John Wiley & Sons.
Sheldon, P. and Bryant, K., 2016. Instagram: Motives for its use and relationship to narcissism
and contextual age. Computers in Human Behavior, 58, pp.89-97.
Team, T. (2017). Facebook's Strong Ad Revenue Growth To Continue. [online] Available at:
https://www.forbes.com/sites/greatspeculations/2017/10/30/facebooks-strong-ad-revenue-
growth-to-continue/#4e06975e6fe7 [Accessed 21 Mar. 2018].
Torresi, I., 2014. Translating promotional and advertising texts. Routledge.
Trottier, D., 2013. The business of conversations: Market social media surveillance and
visibility. First Monday, 18(2).
Wang, W.Y., Pauleen, D.J. and Zhang, T., 2016. How social media applications affect B2B
communication and improve business performance in SMEs. Industrial Marketing
Management, 54, pp.4-14.
Zappos.com 2018. [online] Available at: https://www.zappos.com/ [Accessed 28 Feb. 2018].