Experiencing MIS 8th by m kronenke chapter 08

Q1: What Is A Social Media Information System SMIS?• Social media SM – Use of IT to support content sharing among networks of users – Enables communities, tribes, or hives – People relat

Social Media

Information Systems

Chapter 8

“It’s All About Eyeballs”

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• New owner wants to change way PRIDE is used and make it more profitable

• Number of eyeballs to look at ads and clicks to generate revenue

• Will PRIDE actually work?

• Need to describe it to potential vendors

• Carefully think about details of how system will function before estimating development costs or

project timeline

PRIDE Application Prototype

• Generating revenue from social applications difficult, but possible

• Not all social media applications involve Facebook or Twitter

• It's all about marketing

• Think about ways of applying new, emerging technology to accomplish business organizational

strategies

Study Questions

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Q1: What is a social media information system (SMIS)?

Q2: How do SMIS advance organizational strategy?

Q3: How do SMIS increase social capital?

Q4: What roles do SMIS play in the hyper-social organization?

Q5: How do (some) companies earn revenue from social media?

Q6: How can organizations manage the risks of social media?

Q7: 2025?

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

• Social media (SM)

– Use of IT to support content sharing among networks of users

– Enables communities, tribes, or hives

– People related by a common interest

• Social media information system (SMIS)

– Supports sharing of content among networks of users

Social Media Is a Convergence of Disciplines

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Number of Social Media Active Users

Three SMIS Roles

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• Social Media Providers

– Facebook, Google+, LinkedIn, Twitter, Instagram, and Pinterest provide platforms

– Attracting and targeting certain demographic groups

SM User Communities

Social Media Application Providers

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• Facebook, Twitter, LinkedIn, Google

• Sponsors might pay a fee, depending on application and what they do with it

– Creating a company page free on Facebook, but

– Charges fee to advertise to communities that “Like” that page

• Custom developed SM for company using SharePoint for wikis, discussion board, photo sharing

Five Components of SMIS

SMIS Is Not Free

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• Costs to develop, implement, and manage social networking procedures

• Direct labor costs for employees who contribute to and manage social networking sites

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

• 73% hired using social media, and one-third have rejected candidates because of something on

their social profiles

Q2: How Do SMIS Advance Organizational Strategy?

• Strategy determines value chains, which determine business processes, which determine information systems

• How do value chains determine dynamic processes and thus set SMIS requirements?

• SM process flows cannot be designed or diagrammed, they constantly change

SM in Value Chain Activities

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Social Media and the Sales and Marketing Activity

• 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

Social Media and Customer Service

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• 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 Most Valuable Professional (MVP) program

• Peer-to-peer support risks loss of control

Social Media and Inbound and Outbound Logistics

• Social media can be used to provide numerous solution ideas and rapid evaluation of them

• May provide better solutions to complex supply chain problems

• Facilitates user creates content and feedback among networks needed for problem solving

• Loss of privacy a significant risk

– Problem solving in front of your competitors

– Non-employees voluntarily participate in product design or product redesign

• Widely used in businesses-to-consumer (B2C) relationships to market products to end users

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

Social Media and Human Resources

• Employee communications using internal personnel sites

– Ex: MySite and MyProfile in SharePoint

• Used for 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 an unpopular management message

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

What Is the Value of Social Capital?

• Value of social capital

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

• Adds value in four ways:

How Do Social Networks Add Value to Businesses?

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Progressive organizations:

– Maintain a presence on Facebook, LinkedIn, Twitter, and other SN sites

– Encourage customers and interested parties to leave comments

– Risk - excessively critical feedback

Using Social Networking

to Increase the Number of

Relationships

Using Social Networks to Connect to Those

with More Resources

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

• Huge network of relationships with people who have few resources may be of less value than a smaller

network of relationships with people who have substantial resources

• Resources must be relevant

• Most organizations ignore value of entity assets and try to connect to more people with stronger

relationships

So What?

Facebook for Organizations… and Machines

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• Chatter, by salesforce.com, to connect employees and customers via social media

• Organizational communities identify and solve problems more quickly and more effectively than before

• Readily find and recruit needed experts within organization to help solve problems

• Faster project collaboration

• Internal-facing communities use social media to make organizations better

Ethics Guide: Social Marketing? Or Lying?

• Purpose of guide: Explore ethical dimension of that danger

• How is social networking different in business than in private life?

• Do ethics vary between private and business use of social networking?

• Habits formed when using social sites may be inappropriate, harmful, or unethical when applied to

business site

• You Are the Product

– “If you’re not paying, you’re the product.”

– Renting your eyeballs to an advertiser

Revenue Models for Social Media

• Advertising

• Pay-per-click

• Use increases value: The more people use a site, the more value it has, and the more people will visit.

• Freemium revenue model

– Offers users a basic service for free, and then charges a premium for upgrades or advanced features

• Sale of apps and virtual goods, affiliate commissions, donations

Does Mobility Reduce Online Ad Revenue?

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• By 2018, number of mobile devices is expected to reach 10 billion

• Mobile data traffic will increase eleven-fold

• 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

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

• PC ad clicks more effective, on average, than mobile clicks

• Clickstream data easy to gather

• Android users far more likely to click and convert on Facebook ads than iPhone users

• Mobile devices unlikely to kill Web/social media revenue model

• How best to configure the mobile experience to obtain legitimate clicks and conversions

Q5: How Do Organizations Develop an Effective SMIS?

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• Focus on being cost leader or on product differentiation

• Industry-wide or segment focus

• Premeditated alignment of SMIS with organization’s strategy

• Next slide shows process of developing a practical plan to effectively use existing social

media platforms

Social Media Plan

Development

Common SM Strategic Goals

Brand Awareness Extent that users recognize a brand Organization’s brand mentioned in a tweet

Conversion Rates Measures the frequency that someone takes a desired

action Likes the organization’s Facebook page

Web Site Traffic Quantity, frequency, duration, and depth of visits to a Web

site

Traffic from Google+ post mentioning the organization’s site

User Engagement Extent to which users interact with a site, application, or

other media User regularly comments on organization’s LinkedIn posts

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Common SM Metrics

Brand Awareness Total Twitter followers, audience growth rate, brand mentions in SM, Klout or Kred score

Conversion Rates Click rate on your SM content, assisted social conversions

Web Site Traffic Visitor frequency rate, referral traffic from SM

Q6: What Is an Enterprise Social Network (ESN)?

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• ESN

– Software platform uses social media to facilitate cooperative work of people within an organization

– Improve communication, collaboration, knowledge sharing, problem solving, and decision making

• Enterprise 2.0

– Use of emergent social software platforms within companies, or between companies, partners or

customers

Enterprise 2.0: McAffee's SLATES Model

Changing Communication

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• Communication channels within corporations changed in equally dramatic ways

– Using ESNs, employees can bypass managers and post ideas directly for CEO to read

– Quickly identify internal experts to solve unforeseen problems

Deploying Successful Enterprise Social Networks

• Organizations still learning how to use and successfully deploy ESNs

• Develop a strategic plan for using SM internally via same process as used for external social

media use

• Assess likelihood of employee resistance

ESN Implementation Best Practices

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Q7:  How Can Organizations Address SMIS Security Concerns?

• Need a social media policy

• Consider risks from nonemployee user-generated content

• Look at risks from employee use of social media

Managing the Risk of Employee Communication

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• Develop and publicize a social media policy

– Delineate employees’ rights and responsibilities

• Intel's Three Pillars of SM Policies

1. Disclose

2. Protect

3. Use Common Sense

Intel’s Rules of Social Media Engagement

Managing the Risk of Inappropriate Content

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• User-generated content (UGC)

• Problems From External Sources  

– Junk and crackpot contributions

– Inappropriate content

– Unfavorable reviews

– Mutinous movements

Responding to Social Networking Problems

• Leave it

• Respond to it

• Delete it

 “Never wrestle with a pig; you’ll get dirty and

the pig will enjoy it.”

Internal Risks from Social Media

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

• Directly affect ability to secure information resources

• Seemingly innocuous comments can inadvertently leak information used to secure access to organizational resources

– Not a good idea to tell everyone it’s your birthday because your date of birth (DOB) can be used to steal your identity

Internal Risks from Social Media (cont'd)

• Employees may 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%)

Q8: 2025?

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• Chief Digital Officers (CDOs) responsible for developing and managing innovative social media programs

• Integrated mobile video, augmented by Google/ Facebook’s Whammo++ Star, have many features that enable employees and teams to instantly publish ideas in blogs, wikis, videos, etc

• BYOD

• Need to harness power of employee and partners social behavior to advance company strategy

Q8: 2025? (cont'd)

• Emergence in context of management means loss of control of employees

– Employees craft own relationships with their employers

• Mobility + cloud + social media will create fascinating opportunities for your nonroutine

cognitive skills in the next 10 years!

Security Guide: Securing Social Recruiting

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• Employees sharing personal information on SN

• Technology blurs line between work life and home life

• Work is portable and always on

• Be careful about what you say

• Work networks are not social networks

Security Guide: Securing Social Recruiting (cont'd)

• Use communities to locate prospects

• Find potential behavior or attitude problems

• Exposing protected data illegal to use for hiring decisions

• Treat every candidate the same

• Join LinkedIn, use Google + circles

• Keep your personal social data out of publicly accessible circles

• Social media is a double-edged sword

Guide: Developing Your Personal Brand

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

• Social media presence only 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.