Business networking
Encyclopedia
Business networking is a socioeconomic activity by which groups of like-minded businesspeople recognize, create, or act upon business opportunities. A business network is a type of social network
whose reason for existing is business activity. There are several prominent business networking organizations that create models of networking activity that, when followed, allow the business person to build new business relationships and generate business opportunities at the same time. A professional network service
is an implementation of information technology
in support of business networking.
Many businesspeople contend business networking is a more cost-effective method of generating new business than advertising
or public relations
efforts. This is because business networking is a low-cost activity that involves more personal commitment than company money.
As an example, a business network may agree to meet weekly or monthly with the purpose of exchanging business leads and referrals
with fellow members. To complement this activity, members often meet outside this circle, on their own time, and build their own one-to-one relationship with the fellow member.
Business networking can be conducted in a local business community, or on a larger scale via the Internet
. Business networking websites have grown over recent years due to the Internet's ability to connect people from all over the world. Internet companies often set up business leads for sale to bigger corporations and companies looking for data sources.
Business networking can have a meaning also in the ICT domain, i.e. the provision of operating support to companies and organizations, and related value chain
s and value network
s.
It refers to an activity coordination with a wider scope and a simpler implementation than pre-organized workflows or web-based impromptu searches for transaction counterparts (workflow is useful to coordinate activities, but it is complicated by the use of s.c. patterns to deviate the flow of work from a pure sequence, in order to compensate its intrinsic linearity; impromptu searches for transaction counterparts on the web are useful as well, but only for non-strategic supplies; both are complicated by a plethora of interfaces needed among different organizations and even between different IT
applications within the same organization).
; when he does take that quote and compare to current retail prices, if it's not lower than the retail market by 300 percent to 400 percent, then this factory is part of a business network, meaning they provide the special price only to the network members. This keeps the real value of the product hidden from the public and only available to the large firms they deal with.
s. Since businesses are expanding globally, social network
s make it easier to keep in touch with other contacts around the world. Specific cross-border e-commerce platforms and business partnering networks now make globalization
accessible also for small and medium sized companies.
attend general and exclusive events. Many professionals tend to prefer face-to-face networking over online based networking because the potential for higher quality relationships are possible. Many individuals also prefer face-to-face because people tend to prefer actually knowing and meeting who they intend to do business with.
Face to face
business networking is often facilitated by referral networking clubs.
s and companies can be seen as Networked Businesses, and will tend to source the business and their suppliers through the network of relationships that they have in place. Networked businesses tend to be open, random, and supportive, whereas those relying on hierarchical
, traditional managed approaches are closed, selective, and controlling.
s and value networks need some sort of IT support. Traditionally, it is provided by software applications, software packages, ERP
s, and/or workflows; presently, also by different types of web-based innovations.
A truly ICT business networking approach rethinks and rebuilds the operating support from scratch, around two key business features: information contributions, to be provided by the activities involved, whether they are performed by human beings, automated tools or jointly by the two, in a coordinated way; and automated information exchanges, to be provided by the TLC network.
Information contributions and exchanges, in turn, need to be supported by data storage
and access security (signature
, encryption, authentication, decryption), which both can be provided either as add-ons or as built-in features.
Social network
A social network is a social structure made up of individuals called "nodes", which are tied by one or more specific types of interdependency, such as friendship, kinship, common interest, financial exchange, dislike, sexual relationships, or relationships of beliefs, knowledge or prestige.Social...
whose reason for existing is business activity. There are several prominent business networking organizations that create models of networking activity that, when followed, allow the business person to build new business relationships and generate business opportunities at the same time. A professional network service
Professional network service
A professional network service is a type of social network service that is focused solely on interactions and relationships of a business nature rather than including personal, nonbusiness interactions.Notable examples include LinkedIn, Viadeo, XING and Wisestep.com.-See also:* Business...
is an implementation of information technology
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
in support of business networking.
Many businesspeople contend business networking is a more cost-effective method of generating new business than advertising
Advertising
Advertising is a form of communication used to persuade an audience to take some action with respect to products, ideas, or services. Most commonly, the desired result is to drive consumer behavior with respect to a commercial offering, although political and ideological advertising is also common...
or public relations
Public relations
Public relations is the actions of a corporation, store, government, individual, etc., in promoting goodwill between itself and the public, the community, employees, customers, etc....
efforts. This is because business networking is a low-cost activity that involves more personal commitment than company money.
As an example, a business network may agree to meet weekly or monthly with the purpose of exchanging business leads and referrals
Referral marketing
Referral marketing is a method of promoting products or services to new customers through referrals, usually word of mouth. Such referrals often happen spontaneously but businesses can influence this through appropriate strategies.-Overview:...
with fellow members. To complement this activity, members often meet outside this circle, on their own time, and build their own one-to-one relationship with the fellow member.
Business networking can be conducted in a local business community, or on a larger scale via the Internet
Internet
The Internet is a global system of interconnected computer networks that use the standard Internet protocol suite to serve billions of users worldwide...
. Business networking websites have grown over recent years due to the Internet's ability to connect people from all over the world. Internet companies often set up business leads for sale to bigger corporations and companies looking for data sources.
Business networking can have a meaning also in the ICT domain, i.e. the provision of operating support to companies and organizations, and related value chain
Value chain
The value chain, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.-Firm Level:...
s and value network
Value network
A value network is a business analysis perspective that describes social and technical resources within and between businesses. The nodes in a value network represent people . The nodes are connected by interactions that represent tangible and intangible deliverables. These deliverables take the...
s.
It refers to an activity coordination with a wider scope and a simpler implementation than pre-organized workflows or web-based impromptu searches for transaction counterparts (workflow is useful to coordinate activities, but it is complicated by the use of s.c. patterns to deviate the flow of work from a pure sequence, in order to compensate its intrinsic linearity; impromptu searches for transaction counterparts on the web are useful as well, but only for non-strategic supplies; both are complicated by a plethora of interfaces needed among different organizations and even between different IT
Information technology
Information technology is the acquisition, processing, storage and dissemination of vocal, pictorial, textual and numerical information by a microelectronics-based combination of computing and telecommunications...
applications within the same organization).
Large firms networks vs. small business networks
Large firms networks spread wider than small business, but the difference between the two types is that to be part of a large firm network you have to achieve a preset level of success, for example fly over to China find out which factory manufactures your favorite product, go to the factory owner, offer to buy a large quantity of the product, he will give you a quoteFinancial quote
A financial quotation refers to specific market data relating to a security or commodity. While the term quote specifically refers to the bid price or ask price of an instrument, it may be more generically used to relate to the last price which the security traded at...
; when he does take that quote and compare to current retail prices, if it's not lower than the retail market by 300 percent to 400 percent, then this factory is part of a business network, meaning they provide the special price only to the network members. This keeps the real value of the product hidden from the public and only available to the large firms they deal with.
Online business networking
Businesses are increasingly using business social networks as a means of growing their circle of business contacts and promoting themselves online. In general these networking tools allow professionals to build up their circle of business partners they trust. By connecting these business partners the networking tools allow individuals to search for certain people within their network. Through introductions, the members of these tools then can get in contact with new prospective business partnerBusiness partner
Business partner is a term used to denote a commercial entity with which another commercial entity has some form of alliance. This relationship may be a highly contractual, exclusive bond in which both entities commit not to ally with third parties...
s. Since businesses are expanding globally, social network
Social network
A social network is a social structure made up of individuals called "nodes", which are tied by one or more specific types of interdependency, such as friendship, kinship, common interest, financial exchange, dislike, sexual relationships, or relationships of beliefs, knowledge or prestige.Social...
s make it easier to keep in touch with other contacts around the world. Specific cross-border e-commerce platforms and business partnering networks now make globalization
Globalization
Globalization refers to the increasingly global relationships of culture, people and economic activity. Most often, it refers to economics: the global distribution of the production of goods and services, through reduction of barriers to international trade such as tariffs, export fees, and import...
accessible also for small and medium sized companies.
Face-to-face business networking
Professionals who wish to leverage their presentation skills with the urgency of physically being presentInterpersonal communication
Interpersonal communication is usually defined by communication scholars in numerous ways, usually describing participants who are dependent upon one another. It...
attend general and exclusive events. Many professionals tend to prefer face-to-face networking over online based networking because the potential for higher quality relationships are possible. Many individuals also prefer face-to-face because people tend to prefer actually knowing and meeting who they intend to do business with.
Face to face
Face time
Face time is an English idiom for direct personal interaction or contact between two or more people at the same time and physical location. Face time therefore occurs in "real life" or "meatspace" and contrasts primarily with interaction or contact which occurs over distance and/or electronically...
business networking is often facilitated by referral networking clubs.
General business networking
Before online networking, there was and has always been, networking face-to-face. "Schmoozing" or "rubbing elbows" are expressions used among business professionals for introducing and meeting one another, and establishing rapport.Networked Businesses
With networking developing, many businesses now have this as a core part of their strategy. Those that have developed a strong network of connections supplierDistribution (business)
Product distribution is one of the four elements of the marketing mix. An organization or set of organizations involved in the process of making a product or service available for use or consumption by a consumer or business user.The other three parts of the marketing mix are product, pricing,...
s and companies can be seen as Networked Businesses, and will tend to source the business and their suppliers through the network of relationships that they have in place. Networked businesses tend to be open, random, and supportive, whereas those relying on hierarchical
Social stratification
In sociology the social stratification is a concept of class, involving the "classification of persons into groups based on shared socio-economic conditions ... a relational set of inequalities with economic, social, political and ideological dimensions."...
, traditional managed approaches are closed, selective, and controlling.
Business networking in the ICT domain
Companies and organizations, and related value chainValue chain
The value chain, is a concept from business management that was first described and popularized by Michael Porter in his 1985 best-seller, Competitive Advantage: Creating and Sustaining Superior Performance.-Firm Level:...
s and value networks need some sort of IT support. Traditionally, it is provided by software applications, software packages, ERP
Enterprise resource planning
Enterprise resource planning systems integrate internal and external management information across an entire organization, embracing finance/accounting, manufacturing, sales and service, customer relationship management, etc. ERP systems automate this activity with an integrated software application...
s, and/or workflows; presently, also by different types of web-based innovations.
A truly ICT business networking approach rethinks and rebuilds the operating support from scratch, around two key business features: information contributions, to be provided by the activities involved, whether they are performed by human beings, automated tools or jointly by the two, in a coordinated way; and automated information exchanges, to be provided by the TLC network.
Information contributions and exchanges, in turn, need to be supported by data storage
Data storage
Data storage can refer to:* Computer data storage; memory, components, devices and media that retain digital computer data used for computing for some interval of time....
and access security (signature
Digital signature
A digital signature or digital signature scheme is a mathematical scheme for demonstrating the authenticity of a digital message or document. A valid digital signature gives a recipient reason to believe that the message was created by a known sender, and that it was not altered in transit...
, encryption, authentication, decryption), which both can be provided either as add-ons or as built-in features.