Experiencing MIS 10th by m kronenke chapter 08

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“In a mixed-reality environment we can create anything”

anything.

– Virtual 60-foot prehistoric megalodon shark

– Virtual 40-foot power bar

– Overlay virtual objects over reality

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ARES Application Prototype

– Unsure how many users it can support.

– Think about details of how system will function before estimating development costs or project timeline.

organizational strategies.

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Study Questions

Q8-2 How do SMIS advance organizational strategy?

Q8-3 How do SMIS increase social capital?

Q8-4 How do (some) companies earn revenue from social media?

Q8-5 How do organizations develop an effective SMIS?

Q8-6 What is an enterprise social network (ESN)?

Q8-7 How can organizations address SMIS security concerns?

Q8-8 2027?

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Social Media Information System (SMIS)

Q8-1 What is a social media information system (SMIS)?

Social media (SM)

IT for sharing content among networks of users.

Enables communities of practice.

People related by a common interest.

Social media information system (SMIS)

Sharing content among networks of users.

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Convergence of Many Disciplines

Figure 8-1 Social Media Is a Convergence of Disciplines

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Number of Social Media Active Users

Figure 8-2 Number of Social Media Active Users

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Three SMIS Roles

Social Media Providers

Facebook, Google+, LinkedIn, Twitter, Instagram, and Pinterest platforms.

Attracting, targeting demographic groups.

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SM User Communities

Figure 8-3 SM Communities

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Social Media Application Providers

Facebook, Twitter, LinkedIn, Google …

May charge fee, depending on application and purpose

Free company page 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

Figure 8-4 Five Components of SMIS

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SMIS Is Not Free

Costs to develop, implement, manage social networking procedures

Direct labor costs

96% of companies use social media to recruit employees

76% of recruiters say they view details about volunteer work on social media sites positively

SM posts with spelling mistakes or poor grammar were viewed negatively by 72% of respondents

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SMIS and Organizational Strategy

Strategy determines value chains,

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, communities, and organizations

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SM in Value Chain Activities

Figure 8-5 SM in Value Chain Activities

Sales and marketing Outward to prospects Social CRM

Peer-to-peer sales

Loss of credibility Bad PR

Customer service Outward to customers Peer-to-peer support Loss of control

Inbound logistics Upstream supply chain providers Problem solving Privacy

Outbound logistics Downstream supply chain shippers Problem solving Privacy

Manufacturing and operations Outward for user design;

Inward to operations and manufacturing

User-guided design Industry relationships Operational efficiencies

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Social Media and the Sales and Marketing Activity

Dynamic, SM-based CRM process

Social CRM

Customers craft own 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.

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Social Media and Customer Service

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

Benefits

Numerous solution ideas and rapid evaluation of them.

Better solutions to complex supply chain problems.

Facilitates 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

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

Crowdsourcing.

Businesses-to-consumer (B2C)

YouTube for posting videos of product reviews and testing, factory walk-throughs

Yammer - enterprise social networking service

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Social Media and Human Resources

Employee communications using internal personnel sites

Ex: MySite and MyProfile in SharePoint.

Finding prospective employees, recruiting and evaluating candidates

Place for employees to post their expertise

Risks:

Forming erroneous conclusions about employees.

Pushing unpopular management message.

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Q3: How Do SMIS Increase Social Capital?

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?

Value of social capital

Number of relationships, strength of relationships, resources controlled.

Adds value in four ways

1 Information

2 Influence

3 Social credentials

4 Personal reinforcement

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How Do Social Networks Add Value to Businesses?

Progressive organizations:

Have Facebook, LinkedIn, Twitter, other SN sites

Encourage customers and interested parties to leave comments.

Risk – encouraging excessively critical feedback.

Klout score – measure of individual’s social capital.

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Using Social Networking to Increase the Number of Relationships

Figure 8-6 Growing Social Networks

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Top YouTube Channels

Figure 8-7 Top YouTube Channels

Source: Data from Nat Ives, “What a YouTube Celeb Pulls In,” Adage.com, April 15, 2016, accessed May 25, 2016, http://adage.com/article/news/a-youtube-celeb-pulls/29801

Top 5 Beauty and Style Channels

Monthly Views (millions) Est Monthly Earnings

Est Monthly Earnings

CharlisCraftyKitchen 29.1 $127,777

CookiesCupcakesandCardio 17.1 $79,309 How To Cook That 16.4 $77,773 MyCupcakeAddiction 13.5 $64,268

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Using Social Networks to Increase the Strength of Relationships

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 someone to do you a favor

Frequent interactions strengthen relationships

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Using Social Networks to Connect to Those

with More Resources

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

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

Resources must be relevant

Most organizations ignore value of entity assets

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Enhanced Golf Fan

So What?

Advances in technology have changed the way we consume entertainment.

In 1998 54% of people would rather attend a game than watch it at home; in 2011 that

number had dropped to 29%.

The PGA has started providing data visualizations, advanced statistics, real-time updates, and live feeds to improve the viewing experience.

How could other sports use data analytics to enhance the viewing experience?

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Synthetic Friends

Ethics Guide

Army of bots for company SM

Inflates follower count.

“Click farms”

Form of click fraud.

Large group of low-paid workers hired to click on paid advertising links for the click fraudster.

Attracts annoying spam accounts

Then comes the purge

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Earning Revenue from Social Media

Hyper-social organization

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

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Revenue Models for Social Media

Advertising

Pay-per-click

Use increases value

Freemium

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

Sales - apps and virtual goods, affiliate commissions, donations.

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Does Mobility Reduce Online Ad Revenue?

By 2020, number of mobile devices to reach 11.6 billion

Mobile ad spending should reach $77B, and account for 73 percent of total digital ad spending

Average click-through rate of smartphones is 2.18%, but just 1.86% 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 41% per year.

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Mobile Ad Spending

Mobile users click ads more often and generate more revenue

Design problem: How best to configure mobile experience to obtain legitimate clicks and conversions?

Figure 8-8 Mobile Ad Spending

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Developing an Effective SMIS?

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

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Social Media Plan Development

Figure 8-9 Social Media Plan Development

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Common SM Strategic Goals

Figure 8-10 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

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Success Metrics

Success metrics are measurements to track performance toward goals.

Also called key performance indicators (KPI).

Ignore vanity metrics

Minimize bounce rate

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Common SM Metrics

Figure 8-11 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

User engagement Number of SM interactions, reshares of SM content

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Enterprise Social Networks (ESN)

ESN

Software platform uses SM 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.

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Enterprise 2.0: McAffee’s SLATES Model

Figure 8-12 McAfee’s SLATES Model

Source: Based on Andrew McAfee, “Enterprise 2.0: The Dawn of Emergent Collaboration,” MIT Sloan Management Review, Spring 2006, accessed emergent-collaboration

http://sloanreview.mit.edu/article/enterprisethe-dawn-of-Q8-6 What is an enterprise social network (ESN)?

Enterprise 2.0 Component Remarks

Search People have more success searching than they do in finding from structured content.

Links Links to enterprise resources (like on the Web).

Authoring Create enterprise content via blogs, wikis, discussion groups, presentations, etc.

Tags Flexible tagging (like Delicious) results in folksonomies of enterprise content.

Extensions Using usage patterns to offer enterprise content via tag processing (like the style of Pandora).

Signals Pushing enterprise content to users based on subscriptions and alerts.

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Changing Communication

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.

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