02 February 2011
So You Think Social Media Is Important?
According to a study released in January 2011 from the University of Massachusetts Dartmouth Center for Marketing Research, those who try Social Media - seem to like it and now the importance has spread mainstream with the following chart as provided by eMarketer.
Well it would seem you are in good company.
What still bothers me a little is that while we move from eCommerce to F-Commerce or is it SM-Commerce - in my view we are moving towards more and more near or actual real time commerce.
Great - BUT.... will the back end systems (which is my specialty) keep up? The truth is out there somewhere - but the legacy systems model of contract based agreements as opposed to real time technologies will come under a lot of pressure. The ability of cache to be real and accurate with trust - becomes a lot harder.
I have opined before that the demands of Social Media based commerce and individualized results is a recipe for disaster for legacy systems. This seems to get confirmed at every turn. Last year - at the OTA meeting in Seattle - the CTO for Pegasus demonstrated how search is driving more and more transactions but not driving more sales or profit. Indeed the corollary is true. The harder the user searches to get better pricing the lower the yield and the greater the cost of the transaction.
Anyone still stuck in the legacy world - (are you listening GDSs) - and not paying attention to this issue is either guilty of monopolistic or ostrich behaviour. Possibly both.
The emergence of next generation FIND vs explicit search demands better back end infrastructure.
And yes - the emerging companies get this. Those who are sticking to the old model. Your time is up. Time for you to get out of the way... and close the door on the way out.
With special thanks to the Dr Who Tardis money box. http://gadgetsin.com/uploads/2010/09/doctor_who_tardis_money_bank_2.jpg