Mark Zuckerberg is a 25-year-old billionaire poised to be the most influential character in modern business and technology. How is it possible that Zuckerberg, a college dropout with no prior business experience, could enter the Internet market and create the fourth-most-visited Web site in the world (Alexa)? The simplified answer is that he recognized, or at least capitalized on a massive paradigm shift in the way we do business online. Through the development of his social networking Web site, Facebook.com, Zuckerberg practically invented what we now call social media and completely restructured the business landscape. In order to be competitive in today’s business environment, businesses and individuals must understand (1) the changing landscape of modern business, (2) the emerging trends of that landscape, and (3) the lessons learned from this new business paradigm.
1. THE CHANGING LANDSCAPE OF MODERN BUSINESS
Five years ago, few had ever heard the term “social media.” However, things were about to change; Facebook was introducing itself to a Harvard University community, YouTube was brewing in the minds of its creators, blogging was starting to catch on, and the practices and principals of Web 2.0 were dictating how new Web sites and communities were being built (Blood).  The paradigm shift toward social media had begun and the world was taking notice.
Two driving factors identify the shift: (a) the diversification of information authors and (b) the reconsolidation of information mediums.
a. THE DIVERSIFICATION OF INFORMATION AUTHORS
Traditionally, information has been funneled through major media organizations like CNN, Fox News, and The New York Times. These organizations act as gatekeepers through which information must pass before it is received by society at large. The gatekeepers decide the relevance and importance of information.
Social media has restructured this process. Instead of funneling information through the gatekeepers, social media acts as a bridge that connects information directly to society. Individuals can then decide for themselves what information is relevant and important and what is not. Figure 1.2 illustrates the difference between the traditional approach and the social approach.
Social media facilitates individuals’ abilities to be authors, influencers, and contributors to the flow of information. A 12-year-old boy has the same influence on the flow of information as does a 20-year veteran of The Wall Street Journal. Regardless of their background, people now have the ability to influence the opinions of thousands. Individuals (and businesses) are blogging about what is important to them and tweeting about what they are doing. The consolidation of this information allows people to identify for themselves what
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