Four challenges Facebook will face after the IPO
- 16 May, 2012 07:07
When Facebook goes public, it will enter a new world full of shareholder meetings, earnings reports, and the constant pressure to turn an increasingly bigger profit. But the Facebook IPO isn't just about making money; it's also about expanding the network, in pursuit of Mark Zuckerberg's vision of a more connected world. With that in mind, here are four challenges Facebook will face after its public offering is complete:
Regain User Trust
Although Facebook's numerous privacy transgressions haven't stunted its growth, they appear to be taking their toll on users' attitudes toward the service. A recent AP-CNBC survey of Facebook users found that 59 percent don't trust the social network to keep their information private, and 54 percent wouldn't feel safe purchasing goods and services through Facebook. That could be a problem as Facebook tries to push social networking into more aspects of our lives.
To earn trust back, Facebook needs to be more transparent about what happens to user data, especially with third-party apps and Websites. Too often, users share information by accident, because Facebook relegates important details to the fine print. This only cements Facebook's reputation as a company that doesn't care enough about privacy.
More Mobile Dominance
Facebook is already one of the most popular phone apps, reaching 80 percent of U.S. smartphone subscribers over the age of 18, according to Comscore. But the social network could be much bigger than it already is, if only it could bring its own app ecosystem to phones and tablets. So far, rumors of a Facebook phone haven't come to fruition, nor has the chatter about a browser-based mobile platform for Facebook apps. That doesn't mean Facebook can sit on the sidelines forever. Eventually the company may try to become a major mobile player, with direct control over Facebook-connected apps and services.
Fix Frictionless Sharing
By allowing users to share links and other details about their lives with zero effort, Facebook has also created chaos. Facebook's so-called "frictionless sharing," which lets apps automatically publish details about what users are doing, is a fire hose of mostly worthless information. As Slate's Farhad Manjoo argued, automatic sharing crushes our ability to show good taste, burying truly useful information among the noise. And of course, it also leads to embarrassing cases of accidental sharing. At the core of frictionless sharing is a good idea: Telling friends about your life should be easy. But right now, it's too easy, the point that it's a repellant for people who don't always want to be plugged in to a social network.
Don't Grow Complacent
As Facebook gets bigger, it will face the same challenge as does every major tech company: Stay nimble enough to fend off smaller, scrappier competitors. With Instagram, Facebook took the easy way out by acquiring the start-up for $1 billion--a deal that has yet to be approved by regulators. There will be more companies like Instagram in the future, and Facebook can't simply acquire them all.
Join the CIO Australia group on LinkedIn. The group is open to CIOs, IT Directors, COOs, CTOs and senior IT managers.
- Facebook's Valuation for IPO is Lower Than Expected : PCWorld
- Facebook Privacy Complaint: A Complete Breakdown : PCWorld
- Facebook Admits Ad Service Tracks Logged-Off Users : PCWorld
- Facebook Users Don't Trust Site on Privacy Issues : PCWorld
- Back Off, Mark Zuckerberg! - Robert Wright - Technology - The Atlantic
- comScore Introduces Mobile Metrix 2.0, Revealing that Social Media Brands Experience Heavy Engagement on Smartphones - comScore, Inc
- The Facebook Phone: Busting the Myth : PCWorld
- Facebook's Secret Projects Outed: Meet Project Spartan : PCWorld
- Facebook's Terrible Plan To Make Us Share Everything We Do Online - Slate Magazine
- Improve Your Experience : Facebook
- Jared Newman - Google+
- HTC unveils new Butterfly s phone that packs more battery life
- Google Glass apps for enterprises coming by early 2014
- iPad 5 rumour rollup for the week ending June 18
- Say 'cheese', Earthlings! Spacecraft to snap home planet pic from deep space
- Social media adds spice to financial services, say banks
Solving the skills conundrum – part 1
Samsung Galaxy S4 vs. HTC One: 5 Reasons to Choose the GS4
High school students still see ICT as ‘sitting at a computer all day’: survey
Does encryption really shield you from government's prying eyes?
Solving the skills conundrum – part 1
McAfee Complete Endpoint Protection - Business
McAfee makes endpoint security painless for users and easy and efficient for IT. Built for strength, speed, and simplicity, McAfee Complete Endpoint Protection - Business suite helps growing organisations get Internet security right, from turnkey installation to rapid response. Find out more.
Agentless Security for Virtual Environments
Virtualised datacentres, desktops, and cloud computing should be secured by the same strong protection technologies as physical machines. However, traditional agent-based solutions that are not architected for virtualisation can result in a number of significant operational security issues. Find out more about the first agentless security platform solution.
New Demands for Real-time Threat Management
Many organisations are evaluating a new security model based upon IT risk management best practices. This is a good idea, but not enough for today’s dynamic and malevolent threat landscape. To keep up with IT changes and external threats, large organisations need to embrace two new security practices: real-time risk management for day-to-day security adjustments and real-time threat management to detect and remediate sophisticated, stealthy, and damaging security breaches (i.e., advanced persistent threats, or APTs). Learn more.