The Emerging Model For Business In The Internet

Published Date: 02 Nov 2017

What is syndication? Syndication is the information or content sharing among different website. Syndication is a fundamental of organizing principle in the world for a long time but it is seldom use for business. There are different kind of syndication which is broadcast syndication, print syndication, search syndication, syndicated loan, web syndication and many more. For example, web syndication is a form of syndication in which website material is made available to multiple other sites (Web Syndication, 2013).

This article gives information about the merging of syndication of business into an entertainment world such as internet to become an e-business or e-commerce. Syndication suits the web because traditional business is a kind of linear supply and demand chains but for the syndication is a type of loose, web like networks.

There are 3 types of syndication roles which is originators, syndicators, and distributors. The roles job of originators is to create original content to be syndicated and make convenience for any type of company or personal to disseminate that content or information worldwide. Example of originator is Inktomi which start up a powerful search engine and syndicate the search engine to other company that is needed because they knew they will having difficulty to compete with the popular search engine such as Yahoo.

The second role of syndication is syndicators. This role is to collect all the data or content from different sources and making it available through standard formats. It also means syndicators work for the package content and manage relationships between originators and distributors. Examples of some web are iSyndicate, LinkShare. Motley Fool and many more.

The third role of syndication is a distributor which is to deliver content to end user or customer. They use the syndication power to decrease the cost of the enquiry content and increase the value they will provide to customers. Example of some web are Women.com, Yahoo!, Motley Fool and many more.

However, there are challenges or problem when implement this emerging model for business in the internet syndication. The problem face is when companies enter or using syndication networks, the managing people or CEO need to rethink their, relationships, products, and even the core capabilities. When organizations begin to be constructed out of components syndicated from many other organizations, the result will be a mesh of relationships with no beginning, end, or center. (Werbach, Kevin,2000)

B. Literature Review

In the article, the achievements is that it is like beyond outsourcing which it involve the outside user to supply different kind of business such as asset or function. Syndication is works with information compare to physical resources that a company or individual can syndicate services or product without adding additional charges.

Besides that, syndication using internet can make all things to be automatic and standardized compare to physical outsourcing. In addition, internet is an open system which allows different kind of information sharing so the rules can be coded in standard form which can be used by any company. These allow syndication networks created, expand and highly optimized.

In term of internet which is a flexibility architecture that can allow the creativity of internet entrepreneur which also known as technopreneur unlimited. Besides that, syndication also gives choices for those companies had with outsourcing but existence of those choices make a coherent strategy.

There is limitation or weaknesses of the syndication of the internet doing with business. The weakness that will occur is that everything will be change such as the strategy and management. In addition, the syndicated world of internet is almost different from traditional business which the assets, roles, and relationships is fixed.

The reason syndication requires businessman or executives to rethink of their strategies and relationship in radical ways because a company’s hinges on its connections to other companies, this will cause less view of the core capabilities as secrets to protect. They treat it as the products to sell. For example, the success of FedEx who distribute its package-tracking capability to other company using internet.

Through the whole article, the author mention about the emerging of the business into the internet world. This syndication of doing business is expanding to define the structure of e-business. By applying this, the executives need to rethink their core capabilities, services, product and relationships. For the rethinking of core capabilities, the best example is Amazon. Amazon experience a very important lesson for all company which is there are no more to protect the core capabilities in this syndicatedworld.

C. Proposed solutions

The solution of the problem statement of syndication using internet era is to form a new shape of business. What is the way to form it? The author mention that by replace an economy of a small unit with the one who is large , they need to rethink for the strategies which is force by internet. In addition, the businessmen need to see them as product instead of the core capabilities to protect.

The New shape of Business is to reduce the impact of individual company strategies and relationships. They will process originate, syndicate, and share out information without the awareness of others company in the network. Every participant company will retain the measure of control, which means they will choose the respective syndication partners to have business relationship to work with and will decide the business rules into the syndication process.

They will very complex, highly adaptive to the system and well structure and functioning syndication network. As the internet economy grow wider, syndication will follow to be grow along with it certain business rule and conditions.

D. Paper organization

The first part of the article is mention about the how the syndication idea is, and how the merge the business with internet era with different kind of example. In addition, they also mention about the reason why the syndication is suitable for the web.

The second part is describing the syndication roles which are originators, syndicators and distributors. In this section, they provide a lot of example of these 3 roles in real industrial and how they do work in different situation.

The third part is mention about the beyond outsourcing and everything change from a little to more and what kind or structure will be change from traditional business to syndication in term of strategic focus, different kind of role, relationships and many others.

The last parts are for the weakness of syndication and conclude how they solve. They also give example of Amazon’s syndication strategy and the management committee or businessman need to rethink the core capabilities and restructure the businesses which emerge with internet. Besides that, they also provide the solution to solve the weaknesses which is the new shape of business.