Investigation of theAdoption of Social Media in the UK Telecommunications IndustryExecutive SummaryThis report attempts to evaluate how the advent of Web 2.0 and consequent social media technologies have changed the way telecommunications companies interact with their stakeholders in the UK. The findings of the report show how social media technologies such as instant messaging, wikis, and social media platforms have drastically changed telecoms’ internal and external business operations, and highlights the importance of online communities and how they can influence general opinion. Further analysis presents the rapid diffusion of innovation among new social media technologies, such as increasing mobile and messaging platforms, and the impact that they have had on telecoms companies. Using the primary findings of this study, a strategy for telecoms companies is suggested through which they can take advantage of the increasing use of mobile technologies, and foster online communities to create marketing campaigns that take advantage of brand user generated content to attract customers. IntroductionWeb 2.0 radically transformed how Internet users interactwith one another and with the brands they support, due to being able tocommunicate using digital platforms. The development of these technologies hasled to a wealth of social networking platforms such as Facebook and YouTube,where users can share and create content about anything. Moreover, the use ofthese platforms has also changed the way businesses interact with stakeholders.Organisations can now exchange information in a rapid manner from all over theworld. In the same way, consumers now have more direct relationships with theirfavourite brands and others with the same interests, establishing onlinecommunities that can influence general opinions about brands, thereby changingtraditional consumer buying behaviour (Ebersbach et al., 2008). Figure 1: Number of social network users worldwide (Statista, 2017) This report attempts to evaluate the impact that socialmedia technologies have had on how telecommunications companies in the UKinteract with their stakeholders. To answer the question, the report willfirstly provide a background of the telecommunications industry; this will befollowed by an introduction to the most widely used social media tools withinthe industry. Secondly, through an analysis of business drivers, the reportwill carry out an evaluation of social media adoption. Thirdly, the report willanalyse the rapid innovation diffusion of social media and future trends in abid to analyse the impact they have had on the telecommunications industry overthe past number of years. Finally, the report will draw on the findings tosuggest a strategy for improving communications plans with stakeholders bytaking advantage of new technologies. Finally, the report will conclude byexamining the implications of the use of social media in the telecommunicationsindustry, and presents observations regarding possible future implications. 1. Telecommunications Industry Ofcom (2017), the UK’s communications regulator, defines thetelecommunications industry as a combination of telecoms, television, radio,and mail correspondence. In an attempt to obtain an in-depth analysis, thisreport will focus only on how social media have influenced thetelecommunications sector in the UK. Telecoms companies offer a wide range ofservices. However, their core business is providing network services communications,both fixed and wireless. Moreover, the UK Parliament (2017, p.2) considers thetelecoms industry to have significant, importance as they ‘underpin much of theeconomic and social activity in the UK’. In fact, all UK companies rely in someway on the connectivity provided by telecoms companies. Even citizensacknowledge the importance of telecoms services, as broadband is currentlyviewed as one of top five modern-day essentials (Which?, 2016).The leading companies in the UK in fixed broadband servicesare BT, Sky, Virgin Media, and Talk Talk. BT’s market share increased after itsacquisition of EE in 2016 (Ofcom, 2017). Figure 2:  UK telecoms’ fixed broadband market share (Ofcom, 2017). In mobile services, the leading companies are EE, O2,Vodafone, and Three (BT Group, 2016). Figure 3: UK market share mobile revenues (BT Group, 2016). Over a five-year comparison, revenues of the UK telecomscombined decreased by -2.2%; however, in 2016 they increased by 0.4% (Ofcom,2017). Figure 4:  UK telecoms revenues (Ofcom, 2017). In consideration of the extensive use of technologies withintelecoms companies, the industry can be characterised according totechnological readiness and integration (Low et al., 2011). Moreover, due tothe high competitive pressure within the industry, particularly in the UK,these companies have increasingly made use of new technologies, making themexcellent examples in the adoption of Web 2.0 and social media technologies.2. Social Media ToolsThe advent of online platforms has changed how companiesinteract with their customers. These changes are mostly driven by how onlinecommunities can influence potential customer opinions. Online platforms arecharacterised primarily by user-generated content, fostering the creation ofcommunities online made up of customers who interact with each other, and shareinformation and personal views on specific brands (Cova and Pace, 2006).Business Week (2004), for example, devoted its ranking of the world’s 100 mostvaluable brands to the rise of what it labelled ‘brand communities’, and theimpact they have on their chosen brand. With the increasing importance of brandcommunities on social networks, telecommunications companies have begunadopting these platforms with the intention to control, or have an impact onthe messages and information shared online.The development of e-business capabilities is crucial, as it isnot only rapidly changing the way that companies buy, sell, and deal withcustomers, but also becoming a more central part of internal business operations(Zhu, 2004). Instant messaging applications such as Slack (Slack, 2018) canconnect business teams with tools and services for better integrating theirwork, and for remaining up-to-date with new tasks. Organisations that use thesetools obtain substantial returns through efficiency improvements. Fasterresponse times, better integration between business units, and accessibility toinformation are only some examples of how instant messaging platforms,alongside the use of APIs, can improve business performance.With the advent of the Internet, the research of newproducts has become simpler. Studies note that the rise of information-sharingmechanisms, such as blogs and social media, is shifting the online market froma small number of products with high demand to a large number of products withrelatively small demands, nurturing the formation of the “long-tail” (Anderson,2006, p.10-15). Hence, the rise of social network platforms opens up newopportunities for analysing several aspects and patterns of communication,through the collection of data (Baars and Kemper, 2008). For example, it ispossible to understand what people think about the performance of atelecommunication service, and react accordingly. Therefore, the correct use ofdata is essential when analysing customer needs and future trends. Theincreasing use of data collection for reasons other than new businessopportunities has also given rise to ethical concerns, in particular amonggovernments and regulators. The newly developed General Data ProtectionRegulation (GDPR) aims to give control back to citizens of their data. Forexample, customers now have the right to ask businesses to view or delete datacollected about them (). This regulation will have several consequences. Companieswill be required to adopt comprehensive changes in order to implement a newcomparable level of privacy. As such, businesses will need to make investmentsin both technical and ethical contexts in order to adjust to this new law.3. Social Media Adoption Through the TOE framework (Tornatsky and Fleischer, 1990),composed of structural, environmental and technological factors, and with theuse of real case scenarios, this report will evaluate social media adoption inthe telecoms industry, and the impact that these technologies have had on howsaid organisations interact with their stakeholders. The TOE framework ischaracterised by:Organisation, whichdescribes the internal operations of firms. External taskenvironment, which refers to the external context of the firmsTechnology, whichanalysis the current and future trends of social network technologies. Figure 5: TOE framework representation (Tornatsky and Fleischer, 1990). Inthe analysis of social media adoption, along with the TOE framework, thisreport will employ the business drivers of telecom companies. In their paper,Oliveira and Martins (2010) identify three business drivers for telecomscompanies in the adoption of digital technologies: perceived benefits,obstacles, and technological readiness. Therefore, with the use of a model, inthis case a combination of the TOE framework and the identified businessdrivers, the following section will analyse social media adoption in thetelecoms industry, and how these technologies can support their businessoperations. Figure 6: Business drivers within the TOE framework. 3.1 BenefitsThe advent of Web 2.0 has delivered benefits to the internaland external interaction between businesses and their customers and suppliers.As explained earlies, social media platforms have fostered the creation ofonline communities who interact based on their favourite brands, and has apositive effect on brand trust, and therefore, on brand loyalty (Laroche,Habibi and Richard, 2013). Moreover, these technologies have also created acollaborative environment known as ‘Enterprise 2.0’, where employees collaboratewith one another through private online platforms that nurtureknowledge-sharing (Efimova and Grudin, 2007). Similarly, communication betweenbusinesses have also changed. For example, integration of the supply chainthrough e-procurement indicates as a result increased performance amongorganisations (Hsin Chang, Tsai and Hsu, 2013). 3.1.1 Internal Mark Morell (2010) explains how British Telecommunications’organisational culture, where their employees should support one another bycontinually sharing new knowledge, and remain in contact with each other, hashelped the company to successfully create and implement an internal blogavailable to more than 14 000 employees and third parties. With the use of ablogging platform in the form of an intranet system, British Telecommunicationis capable of assessing employees’ needs in terms of sharing new knowledge,creating an integrated technology platform, and remaining up-to-date with newimplementations.3.1.2 External In 2013, O2 created a campaign with the attempts to engagewith online communities, while at the same time delivering a positive messagethat would be associated with their brand (Shortyawards, 2013). The campaigninvolved social media accounts on Twitter, thus user-generated content,exhorting social media accounts to encourage other users to eliminate the useof harsh comments over social media platforms. The campaign used the hashtag #bemoreodogto collect conversations, thereby allowing O2 to respond where appropriate, andallowing consumers to learn more about the campaign. As a result, commissionedNielsen research found that users associated with the message on Twitter weremore likely to report that they would choose O2 next time they switched mobilephone networks, compared to those that had not been exposed to the campaign.3.2 ObstaclesIn the evaluation of the adoption of social mediatechnologies, obstacles are as significant as perceived benefits, as they mayoffer indicators about cultural behaviour within the industry. To betterunderstand these behaviours, the analysis should be divided between internaland external barriers. For example, whereas employees’ motivations are theprimary factors in the internal adoption of new technologies (Vuori andOkkonen, 2012), in the external environment, the main barriers are related tocost and technical operations (Pan and Jang, 2008). By understanding thesebehaviours, it will be possible to address new opportunities in the adoption ofsocial media technologies.3.2.1 Internal The main obstacle in the adoption of new technologies withinorganisations is the slow adoption of new platforms by employees. According toVuori and Okkonen (2012), two main factors that characterise this slowadoption. Firstly, the time and effort required to learn how to use these newplatforms, and accordingly, an increased workload. Secondly, the similaritiesbetween one platform and another, and as a result, low perceived added valueand a lack of effort in learning how to switch to the new information system.To create motivation for platform switching, the use of rewards or promotionscan help to address these barriers.3.2.2 External Environmental factors define the main external obstacles tosocial media adoption. In the telecoms industry, however, there are lowerbarriers (Zhu et al., 2003). For instance, larger organisations with largefinancial resources, such as telecoms companies, are more likely to adopt newtechnologies. Moreover, industries with a high level of consumer readiness andcompetitive pressure generally follow environmental trends in the adoption ofnew technologies. However, in developed countries, one of the main barriers tothe adoption of new technologies is the regulatory environment. The analysis ofexternal obstacles indicates how, other than financial resources, the adoptionof new technologies is mainly driven by factors external to organisations. 3.3 Opportunities3.3.1 Internal The analysis of theobstacles to social media adoption discovered that in the internal environment,social media barriers are related to a lack of motivation among employees. Inparticular, by constantly introducing new platforms, employees may come to viewlearning how to use these platforms as a waste of time. Through the combinationof social media and e-learning (Cidral et al., 2018), it is possible to createrewards for employees who help others, while at the same time fostering the useof new platforms, thanks to increased shared knowledge. Thus, offering rewardsto employees may be serve as a possible solution for removing some barriers tothe internal adoption of social media technologies, and as a means foraddressing new opportunities to foster knowledge within the organisation.3.3.2 External By considering the primary obstacles in the internal analysis,the main reason for why employees do not adopt new social platforms can beidentified as a lack of motivation. A possible solution to this scenario is tooffer rewards to employees who make use of new platforms, as they will offervalue to the business in terms of supporting their operations. In recent years,telecoms companies such as Vodafone and EE have created internal social mediaplatforms to motivate their employees to share new knowledge, with significantresults (O’Reilly, 2018; Vodafone, 2016). However, by focusing only onIntranet, companies are missing out on the opportunity to leverage theiremployees, and on taking advantage of their knowledge of the company to createmarketing campaigns using Q&A social media platforms such as Quora andReddit, which can serve as tools for connecting brands with potentialcustomers, thus creating rewards for both employees and the company. Therefore,when seeking out new opportunities, companies must also analyse their internalenvironment, through which it is possible to discover existing resources thatcan be used to take advantage of the possibilities that social media platformsoffer.4. Innovation Issues4.1 Innovation Diffusion Innovation adoption, in a social system, can be promoted ashaving a domino effect. Tornatsky and Fleischer (1990) define ‘technologyinnovation’ as a set of events and behaviours on the part of individuals orsocial units. The diffusion of innovation (Rogers, 2003) is generally linked toa small number of early adopters; over time, the new service or product willgain momentum and spread through a specific social system. Hence, the diffusionof new technologies depends on the initial adoption behaviours of a few people,who will then help spread it throughout their social networks to people who mayinitially have barriers against its approval. In the case of social mediatechnologies, the diffusion of innovation occurs more rapidly than previoustechnological changes, as Web 2.0 renders connections among individualsquicker.4.2 Innovation and the Telecommunications IndustryIn recent years, entrepreneurs have increasingly taken advantageof social media platforms to foster the continued creation of new platforms,made easier by the low cost involved in their development, and the rapiddiffusion of innovation. Consequently, nowadays, Internet users find themselveswith many options related to their experience and social media intentions.However, the high threat of substitution and the low cost of change have givenrise to what is known as the ‘cyber migration’ (Zengyan et al., 2009; Cheung etal., 2011), where costumers regularly switch between these services. Theserapid changes between platforms have made it more difficult to retaincustomers. In recent years, even telecoms companies havesuffered the cyber migration effect. The status of smartphones as the mostwidely-owned internet-enabled device, and the introduction of the mobileapplication, WhatsApp, have radically transformed how people share informationwith each other. As reported by TheEconomist (2015), in 2015, WhatsApp already counted more daily messagesthan all other standard texts combined. Therefore, the increased use ofWhatsApp resulted in a reduction of revenues generated from SMS services fortelecom companies (Ofcom, 2017); in an attempt to retain costumers, thesecompanies now offer this as a free service. Figure 7: WhatsApp messages surpassing the number of traditional messages combined (The Economist, 2015). 5. Impact AnalysisAs reported in section 4.2, social media platforms havecreated a radical shift in the telecommunications industry. For example, theamount of mobile data used to access for the Internet per month over the pastfew years has drastically increased (Ofcom, 2018).Figure 8:Average fixed broadband revenue per connection and data use per month (Ofcom,2017).In the same way, mobile users are now progressively makinguse of data using their smartphones (Ofcom, 2017) Figure 9: Average monthly mobile data per connection (Ofcom, 2017). The increase in use of mobile data is driven both by anincreased use of social media platforms and by an increase in the use ofsmartphones (Statista, 2017). Figure 10: Percentage of internet connections in the UK by device (Statista, 2017). The increased use of data and social media platforms haschanged the business strategies of telecommunications companies. From havingpreviously offered direct messaging and video calls, today, these services areshifting towards the use of mobile and desktop applications via internet broadband.For example, SMS revenues and usage in the telecoms industry are falling, aspeople have moved away from traditional messages to social media platforms suchas WeChat and WhatsApp. In the UK, 69% of people use internet applicationsrather than SMS.In the same way, Internet phone calls are slowly taking theplace of traditional phone calls, as the number of individuals who are makingvoice and video calls using the Internet continues to increase (Statista,2017). Figure 11: Share of individuals making voice calls over the internet in the UK (Statista, 2017). Furthermore, the increased use of smartphones and data haveopened up new possibilities for how telecoms companies interact with theircustomers. In fact, through the use of big data databases and social media analytics,telecoms can now reach a wider audience, and can do so with a betterunderstanding of the opinions customers have of their brand (Statista, 2017). Figure 12: Areas of increased impact of digital technologies usage in organizations in the UK (Statista, 2017). As shown in the image above, with the introduction of socialmedia, marketing campaigns are now focusing more on individuals andcommunities, as they are the ones structuring and shaping social mediaplatforms (Berthon et al., 2012).5.1 ImplicationsTo summarise, the impact analysis demonstrated twosignificant changes in the impact of social media platforms within the telecomsindustry. Firstly, the ease of use of platforms such as WhatsApp and WeChat hastransformed the services that telecoms companies offer to their customers, witha switch to focusing on delivering more data and free mobile data for the useof mobile applications. Secondly, marketing campaigns are now more focused onsocial media platforms, as individuals can influence people within theirnetworks, and the collection of online data can help telecoms companies createa micro-targeting campaign, or predict future consumer behaviour. As such, theincreasing use of data and the fostering of online communities via social mediahas changed interactions between telecoms companies and their customers.6. RecommendationsThis report discussed how social media have changed howtelecoms companies interact with their customers, and how there are now moreexposure opportunities available to the former. For example, when a brandengages with its fans through social media, it can benefit from a secondaryeffect and gain more exposure among the friends of the targeted audience(Lipsman et al., 2012). It was also discussed how user-generated content, whichstructures the content of social media platforms, have the potential to shapeconsumer brand perceptions (Smith, Fischer and Yongjian, 2012). In this way,social media have given costumers the power to influence opinions on how peoplemay perceive brands.6.1 Recommended StrategyThe recommended strategy will make use of the AIDA model.The model describes the four cognitive phases experienced by an individual whenchanging their behaviour towards a product or service (Doyle, 2011). The stepsinvolved are attention, interest, desire, and action. Through these steps, themodel creates a purchasing funnel that supports buyers, from gaining anawareness of the product to its eventual purchase. Moreover, if considered inthe context of social media, the AIDA model will not only focus on consumersand the company, but will also involve the social networks and communitiesconnected with the target audience. Figure 13: The four stages of  the AIDA model. The strategy comprises two steps and aims to influencenon-costumers through existing customers within the same social network. Thefirst step is to make use of the AIDA model to attract existing customers, andto have them create new content on their social media platforms that includesthe specific brand. Secondly, using the data collected by social networkplatforms, it will be possible to evaluate the impact of the strategy onexisting customers, extract the structure of social networks, and target newpotential customers. As such, the strategy takes advantage of the trendindicating that online consumers trust their friends on social media more thanthe advertisements displayed by business organisations (Katona, Zubcsek and Sarvary,2011).6.1.1 AIDA ModelAttentionThe objective of this step is to create awareness ofadvertising aimed at the target audience. With the use of GPS technology,telecoms companies can track the location of their customers. Thus, when theyare near a digital screen, for example, at London bus stops, a targetedadvertisement can be displayed. Figure 14: Example of digital display at London bus station. InterestThe next step is aimed at stimulating interest in theadvertisement. The use of GPS for displaying the advertisement will ensure thatexisting customers are targeted. Thus, by displaying the logo of a brand, suchpublicity will likely attract the interest customers.DesireObtaining the desire of the customer is likely the mostchallenging aspect. To do this, the advertisement might offer motivationrelated to personal identity, by setting up a campaign that enables consumersto adapt their personal preferences. Research indicates one of the reasons forpeople engaging in brand-related content as being self-expression (Muntinga,Moorman and Smit, 2011).ActionThe final stage of the AIDA model consists of persuadingcustomers regarding the ‘call to action’. The idea is to offer a simple way forcustomers to freely express their personal brand through the campaign, therebypersuading them into the creation of user-generated content (Burmann, 2010).For example, the use of a set of pre-generated artistic images that represent arange of personalities, and in which customers can see their specificpersonality being reflected.6.1.2 Metrics and ImplementationsThe final part of the strategy comprises the collection ofdata. The data will be used to take advantage of social media measurements, toevaluate the effectiveness of the strategy, and to extract online communitiesinvolved with the brand. In this way, it is possible to firstly gain anunderstanding of the efficacy of the marketing strategy on existing customers,using ratios such as the activation of the advertisement and the creation ofnew content. Secondly, the process will provide an understanding of theexisting customer communities. Through the use of visual graphics software suchas GEPHI (Gephi, n.d.), and the model created by Girvan and Newman (2002), itis possible to understand the structure of these communities. Moreover, theevaluation of social media metrics such as network structure and social roles(Peters et al., 2013), will help the identification of potential customers totarget who are strictly related to the existing users. 7. ConclusionsSocial media technologies have drastically changed theinteractions of telecommunications companies in the UK with their stakeholders.This report carried out an extensive literature review on the background of thetelecommunications industry in the UK, followed by a discussion of theemergence of social media tools such as wikis, instant messaging, social mediaplatforms, and the use of big data, alongside its ethic concerns. Using the TOEframework and business drivers, the report then analysed the adoption of thesetechnologies. Moreover, innovation issues pertaining to social mediatechnologies, as well as future trends, were also presented. From theinnovation analysis and recent changes in the telecommunications industry, theimpact that these technologies have had on the industry was analysed. Finally,according to the findings of the impact of these technologies and the trendsanalysed in the research, the report suggested a strategy for improvingexternal business performance, and for improving the communication betweentelecoms companies and their customers and other stakeholders. As explained in this report, smartphones are currently thefirst device used for connecting to the internet. Moreover, mobile phones makeit easy to access applications, which are easy to use and offer a wide range ofservices. WhatsApp, for example, makes it easy to share information throughinstant messaging. Furthermore, as mobile data speed becomes faster, voiceapplications will likely become more popular and replace traditional phonecalls. With the development of this environment, it is possible then to maketwo considerations. 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