1. Social Media Information Systems
Chapter 8
Social Media
Information Systems

2. “It’s All About Eyeballs”
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.
GOALS
Illustrate how social applications can generate revenue.
Show how cloud-based infrastructure can support social applications.
Consider a unique application of social networking for fitness.
Show the difficulties inherent in the systems development process.
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3. 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.
A report with data from a cloud database. Because it is being served from the cloud, it is accessible by doctors, patients, health clubs, employers, insurance companies, and others who are not yet known to be involved
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Study Questions
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?
Best response to rapid technological change is to learn and understand underlying principles.
Focus on principles, conceptual frameworks, and models that will be useful to address the opportunities and risks of social media systems in early years of your professional career.
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5. 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
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6. Social Media Is a Convergence of Disciplines
Focus on MIS portion of diagram by discussing SMIS and how they contribute to organizational strategy.
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7. Number of Social Media Active Users
77% of Fortune 500 companies maintain active Twitter accounts; 70% Facebook pages, 69% YouTube accounts
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Three SMIS Roles
Social Media Providers
Facebook, Google+, LinkedIn, Twitter, Instagram, and Pinterest provide platforms
Attracting and targeting certain demographic groups
Users
Both individuals and organizations
Communities
Mutual interests and transcend familial, geographic, and organizational boundaries
Over 73% of people with Internet access use SM, and 40% access SM via mobile phones.
68% of Pinterest users are female. 80% LinkedIn users are 35 or older.
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SM User Communities
Community A - first-tier community of users with direct relationship to the site. User 1 belongs to three communities — A, B, and C.
Communities B–E - second-tier communities intermediated by a first-tier user.
Number of second and higher tier community members grows exponentially.
Exponential nature of relationships offers sponsoring organizations both a blessing and a curse.
If social media site wants pure publicity, will need viral hook to relate to as many communities as possible.
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10. Social Media Application Providers
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
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11. Five Components of SMIS
SM application providers host SM presence using elastic servers in the cloud.
Develop and operate custom, proprietary, social networking application software.
Content data - data and responses to data contributed by users and SM sponsors.
Connection data - data about relationships.
Organizations must have procedures for creating content, managing user responses, removing obsolete or objectionable content, and extracting value from content.
Social media creates new job titles, new responsibilities, and need for new types of training.
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SMIS Is Not Free
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
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13. 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.
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14. SM in Value Chain Activities
This figure summarizes how social media contributes to five primary value chain activities and to human resources support activity.
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15. 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 CRM flies in the face of the structured and controlled processes of traditional CRM.
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16. 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 Most Valuable Professional (MVP) program
Peer-to-peer support risks loss of control
Amazon's Vine customers provide pre-release and new product reviews to the buyer community.
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17. 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
Suppliers and shippers work with many companies.
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18. Social Media and Manufacturing and Operations
Designing products, developing supplier relationships, and improving operational efficiencies
Crowdsourcing
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
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19. 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
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20. Q3: How Do SMIS Increase Social 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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21. What Is the Value of Social Capital?
Number of relationships, strength of relationships, and resources controlled
Adds value in four ways:
Information
Influence
Social credentials
Personal reinforcement - professional image or status
Relationships in social networks can:
Provide information about opportunities, alternatives, problems, and other factors important to business professionals.
Provide an opportunity to influence decision makers who are critical to your success.
Be a form of social credentials.
Reinforce a professional’s image and position in an organization or industry.
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22. How Do Social Networks Add Value to Businesses?
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
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23. Using Social Networking to Increase the Number of Relationships
Discuss how could a photographer use SM to communicate a wedding experience using text, pictures, and video instantly to everyone in your social network,
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24. Using Social Networks to Increase the Strength of Relationships
Strength of a relationship
Likelihood other entity (person or organization) will do something that benefits your organization
Write positive reviews, post pictures of you using organization’s products or services, tweet about upcoming product releases, and so on
Organizations strengthen relationships with you by asking you to do them a favor
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25. 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
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26. So What? Facebook for Organizations… and Machines
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
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27. 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.
Goals
Distinguish between using social networking for fun and for business.
Explore ethical questions about deception on business social networking sites.
Formulate ethical principles when creating or using social networks for business.
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28. Q4: How Do (Some) Companies Earn Revenue from Social Media?
Hyper-social organization
Use social media 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
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29. 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
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30. Does Mobility Reduce Online Ad Revenue?
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
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31. 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
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32. Q5: How Do Organizations Develop 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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33. Social Media Plan Development
Take a few minutes to consider each step in the process.
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34. Common SM Strategic Goals
Description
Example
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
Goal
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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36. Q6: What Is an Enterprise Social Network (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
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37. Enterprise 2.0: McAffee's SLATES Model
Enterprise 2.0: Application of social media to facilitate cooperative work of people inside organizations. Can be used to enable people to share knowledge and problem-solving techniques.
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38. 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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39. 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
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40. ESN Implementation Best Practices
Read through the items and reflect on what you went through when you first started using SM. Think about how important your friends were in your decision to start using SM.
Having an internal champion or defender is very important.
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41. 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
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42. Managing the Risk of Employee Communication
Develop and publicize a social media policy
Delineate employees’ rights and responsibilities
Intel's Three Pillars of SM Policies
Disclose
Protect
Use Common Sense
Organizations and executives no longer plan and control organizational messaging. Such messaging emerges via a dynamic, SM-based process. Ask students what they think about that.
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43. Intel’s Rules of Social Media Engagement
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44. Managing the Risk of Inappropriate Content
User-generated content (UGC)
Problems From External Sources  
Junk and crackpot contributions
Inappropriate content
Unfavorable reviews
Mutinous movements
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45. 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.”
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46. Internal Risks from Social Media
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
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47. 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%)
Smart managers know SM comes with both benefits and costs.
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Q8: 2025?
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
Social media means customers use all the vendor’s touch points they can find to craft their own relationships.
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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!
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50. Security Guide: Securing Social Recruiting
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
Goals
Encourage students to think seriously about how their personal social media sites affect their job prospects.
Provide criteria upon which students can evaluate their social media behavior.
Underline the need for multiple, strong passwords, once again!
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51. 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
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52. Guide: Developing Your Personal Brand
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.
Goals
Raise students’ attention to the need for and value of a personal brand.
The guide in Chapter 8 discusses social recruiting and seeks to minimize damage; this guide seeks to maximize benefit. These are two different, and important, perspectives on personal use of SM.
Explore the thin and hard-to-walk line between shameless personal advertising and authentic expressions of personal value.
Take a topic, say data security in the cloud, auditing cloud data sources, or some other topic of interest to the class and then search the Web for experts in that field during class.
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Active Review
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?
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54. Case Study 8: Sedona Social
Suppose Sedona Chamber of Commerce hired you as manager of community social media
Want you to provide advice and assistance to local businesses in development of social media sites and manage Sedona CoC’s social media presence
Begin by making suggestions on ways their SM site could be improved
GOAL:
Use case questions to get student to think of ways to use social media.
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Pink Jeep Tours
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