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Social Media

Information Systems

Chapter 8

8-2

Q1: What Is A Social Media Information System (SMIS)?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Social media (SM) – IT to support content sharing among networks of users – Enables communities of practice  People related by common interest

• Social media information system (SMIS) – IS for sharing content among networks of users

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Convergence of Many Disciplines

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Number of Social Media Active Users

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Three SMIS Roles

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

1. Social media providers – Facebook, Google+, LinkedIn, Twitter, Instagram, and Pinterest

provide platforms – Attracting, targeting demographic groups

2. Users – Individuals and organizations

3. Communities – Mutual interests that transcend familial, geographic, and

organizational boundaries

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SM User Communities

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

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Social Media Application Providers

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Facebook, Twitter, LinkedIn, Google …

• Maybe charge fee – Free company page free on Facebook, but ... – Fee to advertise to communities that “Like” that page

• Internal SM using SharePoint for wikis, discussion board, photo sharing

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Five Components of SMIS

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SMIS Is Not Free

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Costs to develop, implement, manage social networking procedures

• Direct labor costs

• 92% use social media to recruit (93% from LinkedIn)

• 73% hired using social media – One third rejected candidates because of social profile

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Q2: How Do SMIS Advance Organizational Strategy?

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• Strategy determines value chain – Value chains determine business processes – Processes determine SMIS requirements

• How do value chains determine dynamic processes? – Dynamic process flows cannot be designed or diagrammed

• SM fundamentally changes balance of power among users, their communities, and organizations

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SM in Value Chain Activities

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Social Media and the Sales and Marketing Activity

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• Dynamic, SM-based CRM process

• Social CRM – Each customer crafts relationship  Wikis, blogs, discussion lists, frequently asked questions, sites

for user reviews and commentary, other dynamic content – Customers search content, contribute reviews and commentary,

ask questions, create user groups, etc. – Not centered on customer lifetime value

8-13

Social Media and Customer Service

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Relationships emerge from joint activity, customers have as much control as companies

• Product users freely help each other solve problems

• Selling to, or through, developer networks most successful – Microsoft's MVP program

• Peer-to-peer support risks loss of control

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Social Media and Inbound and Outbound Logistics

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• Numerous solution ideas and rapid evaluation of them

• Better solutions to complex supply chain problems

• Facilitate user created content and feedback among networks needed for problem solving

• Loss of privacy – Open discussion of problem definitions, causes, and solution

constraints – Problem solving in front of your competitors

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Social Media and Manufacturing and Operations

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• Improve communication channels within organization and externally with consumers, design products, develop supplier relationships, and improve operational efficiencies

• Crowdsourcing

• Businesses-to-consumer (B2C)

• Youtube channel to post videos of product reviews and testing, factory walk-throughs

• Yammer - enterprise social networking service

8-16

Social Media and Human Resources

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Employee communications using internal personnel sites – Ex: MySite and MyProfile in SharePoint

• Finding employee prospects, recruiting candidates, candidate evaluation

• Place for employees to post their expertise

• Risks: – Forming erroneous conclusions about employees – Becoming defender of belief or pushing unpopular management

message

8-17

What Is the Value of Social Capital?

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• Value of social capital

 Number of relationships, strength of relationships, and resources controlled

• Adds value in four ways: 1. Information 2. Influence 3. Social credentials 4. Personal reinforcement

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So What? Facebook for Organizations… and Machines

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• Chatter, by salesforce.com, to connect employees, customers • Communities identify, solve problems more quickly and more

effectively • Readily find and recruit needed experts within organization • Faster project collaboration • Internal-facing communities use social media to make

organizations better

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Q3: How Do SMIS Increase Social Capital?

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• Capital – Investment of resources for future profit

• Types of business capital

– Physical capital: produce goods and services (factories, machines, manufacturing equipment)

– Human capital: human knowledge and skills investments

– Social capital: social relations with expectation of marketplace returns

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What Is the Value of Social Capital?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

Benefits to People

1. Information – Opportunities, alternatives, problems, and other factors

important to professionally and personally

2. Influence – Decision makers and peers

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What Is the Value of Social Capital? (cont’d)

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

3. Social credentials – Being linked to a network of highly regarded contacts

4. Personal reinforcement – Professional identity, image, and position in organization

or industry

• Understand what social capital is, why it’s valuable, and how you can benefit from it

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Gain Social Capital for Professionals

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• By adding more friends and strengthening relationships with existing friends

• By adding friends and strengthening relationships with people who control resources important to you

• Measure your social networking capital with online service, such as Klout.com – More others respond to your content, higher your score

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How Do Social Networks Add Value to Businesses?

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Progressive organizations: – Presence on Facebook, LinkedIn, Twitter, and other SN sites – Encourage customers and interested parties to leave

comments – Risk - excessively critical feedback

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Using Social Networking to Increase the Number of Relationships

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Using Social Networks to Increase the Strength of Relationships

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• Strength of a relationship – Likelihood other entity will do something that benefits your

organization

• Positive reviews, post pictures using organization’s products or services, tweet about upcoming product releases, and so on

• Strengthen relationships by asking you to do them a favor

• Frequent interactions strengthen relationships

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Using Social Networks to Connect to Those with More Resources

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• Social Capital = Number of Relationships × Relationship Strength × Entity Resources

• Huge network of people with few resources less valuable than smaller network with substantial resources

• Resources must be relevant

• Most ignore value of entity assets

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Top YouTube Channels

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Q4: How Do (Some) Companies Earn Revenue from Social Media?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Hyper-social organization – Use SM to transform interactions with customers, employees,

and partners into mutually satisfying relationships with them and their communities

• You Are the Product. – “If you’re not paying, you’re the product.” – Renting your eyeballs to an advertiser

• Monetize

8-29

Revenue Models for Social Media

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• Advertising

• Pay-per-click

• Use increases value

• Freemium – Offers users a basic service for free, then charges a

premium for upgrades or advanced features

• Sales – – Apps and virtual goods, affiliate commissions, donations

8-30

Does Mobility Reduce Online Ad Revenue?

C o p y r i g h t © 2 0 1 7 P e a r s o n E d u c a t i o n , I n c .

• Number of mobile devices to reach 10 billion by 2018

• Mobile data traffic eleven-fold increase

• Average click-through rate of smartphones is 4.12%, but just 2.39% on PCs

• Conversion rate – Frequency someone clicks on ad makes a purchase, “likes” a

site, or takes some other action desired by advertiser

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Does Mobility Reduce Online Ad Revenue? (cont'd)

• Paid search, display or banner ads, mobile ads, classifieds, or digital video ads

• Use of ad-blocking software growing by 69% per year

8-32

Mobile Ad Spending

8-33

Q5: How Can Organizations Address SMIS Security Concerns?

• Develop and publicize a social media policy – Delineate employees’ rights and responsibilities – Index to 100 different policies at Social Media Today Web site

• Intel's Three Pillars of SM Policies 1. Disclose 2. Protect 3. Use Common Sense

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Intel’s Rules of Social Media Engagement

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Managing the Risk of Inappropriate Content

• User-generated content (UGC)

• Problems from external sources – Junk and crackpot contributions – Inappropriate content – Unfavorable reviews – Mutinous movements

8-36

Responding to Social Networking Problems

• Leave it

• Respond to it

• Delete it

• General rule

 “Never wrestle with a pig; you’ll get dirty and the pig will enjoy it.”

8-37

Internal Risks from Social Media

• Threats to information security, increased organizational liability, decreased employee productivity

• Directly affect ability to secure information resources

• Innocuous comments inadvertently leak information used to secure access to organizational resources – Bad idea to tell everyone it’s your birthday because your

date of birth (DOB), can be used to steal your identity

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Internal Risks from Social Media (cont'd)

• Employees inadvertently increase corporate liability when they use social media – Sexual harassment liability – Leak confidential information

• Reduced employee productivity – 64% of employees visit non-work-related Web sites each day – Tumblr (57%), Facebook (52%), Twitter (17%), Instagram

(11%), and SnapChat (4%)

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Q6: Where Is Social Media Taking Us?

• New mobile devices with innovative mobile-device UX, coupled with dynamic and agile information systems based on cloud computing and dynamic virtualization

• BYOD policy – Organization the endoskeleton, supporting the work of people

on the exterior  Employees craft own relationships with their employers

• Non-routine cognitive skills more important

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How Does the Knowledge in This Chapter Help You?

• How to apply some of your knowledge to help organizations

• Learned components of a social media IS and commitment organization makes when it places a Facebook or Twitter icon on its Web page

• Learned how organizations use SMIS to achieve strategies across the five primary value chain activities and how SMIS can increase social capital

8-41

How Does the Knowledge in This Chapter Help You? (cont’d)

• Learned how revenue can be earned from social media

• Learned about need to manage risks of social media, and how social media will challenge you in the future

8-42

Security Guide: Digital Is Forever

• Transmitting any personal information using an Internet connection you can become a victim

• Stored on numerous servers and employer’s server farms

• In most cases, impossible to delete

• Digital zombie

• Companies analyze everything you digitally say and do – Google

8-43

Security Guide: Digital Is Forever (cont'd)

• Big Data = Big Money – Personal data illegally accessed by criminals and sold on the black

market to other nefarious characters; or – Legally accessed by companies and sold to other companies

• Steps to remove or mask digital footprints – Clearing cookies – Encrypting email – Avoid using real name – Use virtual networks to mask IP address

8-44

Guide: Developing Your Personal Brand

• College recruiters look for evidence a student has “walked the talk”

• Social media presence one component of a professional brand – Traditional sources of personal branding, like personal

networks of face-to-face relationships, important

• Understand importance and value of personal brand