According to Rouse, "Business innovation should improve on existing products, services or processes; or it should solve a problem; or it should reach new customers" (Rouse, 2017). I did not use this definition for innovation in my report but I should have because it is the most simple and accurate definition in consideration to Facebook.
Is it too late to save Facebook?
The key problem with the innovation of Libra is trust. With so many discrepancies and controversies surrounding Facebook's online security, the issues are inevitable. People are beginning to remove themselves from Facebook due to their lack of trust. What are the chances people will allow them to deal with their money? They have tried to improve Facebook's image, however, perhaps an innovation that demands trust from the users is not the best way to go.
Another issue with the innovation is all the competitors that follow it. It is not just Bitcoin that Zuckerberg must compete with. These competitors consist of: "Apple, WeChat, and Google [who are]... making inroads into global finance” (Lacey & Levy, 2019). In fact, after Libra was announced, big competitors like Bitcoin actually become more popular and successful overnight, making a lot of money (figure 1). I did not realise this reaction to Libra by other companies, my report discusses that Libra was interesting to people, little did I know that at the same time Bitcoin’s interest clearly rose. Facebook becoming a competitor just made Bitcoin more successful- the irony.
References:
The key problem with the innovation of Libra is trust. With so many discrepancies and controversies surrounding Facebook's online security, the issues are inevitable. People are beginning to remove themselves from Facebook due to their lack of trust. What are the chances people will allow them to deal with their money? They have tried to improve Facebook's image, however, perhaps an innovation that demands trust from the users is not the best way to go.
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| Figure 1. Strauss, 2019. |
Another issue with the innovation is all the competitors that follow it. It is not just Bitcoin that Zuckerberg must compete with. These competitors consist of: "Apple, WeChat, and Google [who are]... making inroads into global finance” (Lacey & Levy, 2019). In fact, after Libra was announced, big competitors like Bitcoin actually become more popular and successful overnight, making a lot of money (figure 1). I did not realise this reaction to Libra by other companies, my report discusses that Libra was interesting to people, little did I know that at the same time Bitcoin’s interest clearly rose. Facebook becoming a competitor just made Bitcoin more successful- the irony.
- Browne, R. (2019) "Bitcoin vs Libra: Here are the key differences between the two cryptocurrencies." CNBC. Available at: https://www.cnbc.com/2019/07/19/bitcoin-vs-libra-how-facebooks-cryptocurrency-is-different.html
- Lacy, E & Levy, S. (2009) "The Ambitious Plan Behind Facebook’s Cryptocurrency, Libra."Wired. Available at: https://www.wired.com/story/ambitious-plan-behind-facebooks-cryptocurrency-libra/#
- Rouse, M. (2017) "Server performance and benchmark testing guide- Definition: business innovation." TechTarget. Available at: https://searchcio.techtarget.com/definition/business-innovation
- Strauss, D. (2019) "Bitcoin spikes to its highest level in a year after Facebook unveils crypto plan." MarketsInsider. Available at: https://markets.businessinsider.com/currencies/news/bitcoin-crypto-price-reaction-to-facebook-new-libra-project-2019-6-1028287832
good use of references and again good structure. However, the first section is in black writing and is very hard to read.
ReplyDeleteThank you for your comment. I am aware about the colour difference, I realised that it was different after I published the blog :)
Deletegood use of in depth information on how Libra was associated with Facebook and what it was made for
ReplyDeleteThank you for your comments :)
DeleteInteresting points about the cryptocurrency, also good use of graph. However, the first section is in black which is not consistent with the rest of the text.
ReplyDeleteThank you for highlighting the inconsistency, I am not quite sure as to how this happened however I now know to preview my documents before I publish them.
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