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Week Seven: Chapter Eight: Social Media Information Systems (8.3 How do…
Week Seven:
Chapter Eight: Social Media Information Systems
8.1 what is a social media information system (SMIS)?
Social Media:
use of information technology to support the sharing of content among networks of users
Social Media Information System:
information system that supports the sharing of content among a network of users
enables
communities of practice
(people related by common interests)
Social Media Factors of Influence
Psychology
Organisation Theory
Marketing
MIS
Computer Science
Sociology
Psychology
Three organisational units of SMIS
Social Media Providers:
Facebook, Google+, LinkedIn, Twitter, Instagram and Pinterest provide platforms that enable the creation of social networks / relationships among people with common interests
Attracting, targeting demographic groups
Users
individuals and organisations that use social media sites to build social relationships
depending on how organisations want to use social media, they can be users, providers or both
Communities
SM communities are formed based on mutual interests that trascend familial, geographic and organisational boundaries
belong to several different SM communities
for pure publicity - try to relate to as many communities as possible
Viral Hook:
some inducement (prize) for passing communication along through the tiers
SMIS COMPONENTS
HARDWARE
Social Media providers:
elastic, cloud-based servers
Users and communities:
any user computing device (desktop, laptop, mobile devices)
SOFTWARE
Social Media providers:
Applications, NoSQL or other DBMS, Analytics
Users and communities:
Browser, iOS, Android, Windows
employ browersd and client applications to communicate with other users, send and receive content and add and remove connections to communities and other users
custom software is expensive but fundamental to a competitive strategy
DATA
Social Media providers:
content and connection data storage for rapid retrieval
content data:
data and responses to data that are contributed by users e.g. friends write on your wall
connection data:
data about relationships e.g. friendships on facebook
Users and communities:
user-generated content, connection data
PROCEDURES
Social Media providers:
run and maintain applications, develop procedures for creating content, managing user responses, removing obsolete or objectionable content
Users and communities:
create and manage content, informal, copy each other
PEOPLE
Social Media providers:
staff to run an maintain application
Users and communities:
Key users, adaptive, can be irrational, do what they want depending on goals and their personalities
8.2 How do SMIS advance organisational strategy?
Strategy determines value chains which determines
dynamic
business processes and thus set SMIS requirements
VALUE CHAINS ACTIVITIES
Social Media & Sales and Marketing
Focus:
Outward to prospects
Dynamic process:
Social CRM, peer-to-peer sales
Risks:
Loss of credibility, Bad PR
Customer Service
Focus:
Outward to customers
Dynamic Process:
Peer-to-peer support
Risks:
Loss of control
Inbound / Outbound Logistics
Focus:
Upstream / Downstream supply chain providers
Dynamic Process:
Problem Solving - better solutions to complex supply chain problems
Risks:
Privacy
Manufacturing and Operations
Focus:
Outward for user design; Inward to operations and manufacturing
Dynamic Process:
User-guided design; industry relationships; operational efficiencies
Risks:
Efficiency / Effectiveness
Crowdsourcing:
dynamic social media process of employing users to participate in product design / redesign
Human Resources
Focus:
Employment candidates, Employee communications
Dynamic Process:
employee prospecting, recruiting and evaluation, Sharepoint for employee-to-employee communications
Risks:
error, loss of credibility
8.3 How do SMIS increase social captial?
Capital:
investment of resources for future profit
TYPES OF BUSINESS CAPITAL:
Physical Capital:
produce g/s
Human Capital:
human knowledge and skills investments
Social Capital:
social relations with expectation of marketplace returns
BENEFITS OF SOCIAL CAPITAL THROUGH:
Information:
opportunities, alternatives, problems and other factors important to business professional
Influence:
decision makers and peers
Social credentials:
being linked to a network of highly regarded contacts
Personal reinforcements:
professional identity, image and position in organisation or industry
The value of social capital is determined by the number of relationships in a social network, by the strength of those relationships and by the resources controlled by those
HOW SOCIAL NETWORKS ADD VALUE TO BUSINESSES
Progressive organisations:
presence on facebook, twitter, instagram etc + encourage comments from customers
risk excessively critical feedback
USING SOCIAL NETWORKS TO INCREASE THE NUMBER OF RELATIONSHIPS
SMIS allows such sales to scale to levels not possible in the past through word of mouth
USING SOCIAL NETWORKS TO INCREASE THE STRENGTH OF RELATIONSHIPS
Strength of relationship:
likelihood other entity will do something that benefits your organisations
frequent interactions strengthen relationships and hence social capital too
the more you interact with a company, the stronger your commitment and allegiance
USING SOCIAL NETWORKS TO CONNECT TO THOSE WITH MORE RESOURCES
social capital = number of relationships x relationship strength x entity resources
huge network of people with few resources is less valuable than a smaller network with substantial resources
resources must be relevant
must ignore value of entity assets
8.4 How do (some) companies earn revenue from social media?
Hyper-social organisations
use SM to transform interactions with customers, employees and partners into mutually satisfying relationships with them and their communities
You are the product
renting your eyeballs to an advertiser
Monetize
REVENUE MODELS FOR SOCIAL MEDIA
Advertising:
paid search, display/ banner ads, mobile ads, classified or digital video ads
Pay-per-click:
revenue model in which advertisers display ads to potential customers for free and pay only when the customer clicks
to grow ad value: increase site value and user contributions (
use increases value)
Freemium:
revenue model 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
Conversion Rate:
measures the frequency that someone who clicks on an add makes a purchase to take some other action desired by the advertiser
8.5 How can organisations address SMIS security concerns?
MANAGING THE RISK OF EMPLOYEE COMMUNICATION
Develop and publicise a
social media policy:
statement that delineates employees' rights and responsibilities
Example of SM policies:
Disclose: be transparent, truthful, yourself
Protect: don't tell secrets, don't slam the competition, don't overshare
Use common sense: add value, keep it cool, admit mistakes
MANAGING THE RISK OF INAPPROPRIATE CONTENT
User-generated content (UGC):
content on your SM site that is contributed by non-employee users
inappropriate content, unfavourable reviews
organisations need to regularly monitor the site and remove objectionable material by employees
RESPONDING TO SOCIAL NETWORKING PROBLEMS
Leave it
Respond it - can be construed in anyway and can enrage the community and generate strong backlash
Delete it
INTERNAL RISKS FROM SOCIAL MEDIA
Threats to information security, increased organisational liability, decreased employee productivity
directly affect ability to secure information resources
innocuous comments inadvertently lead information used to secure access to organisational resources
employees inadvertently increase corporate liability when they use social media
sexual harassment liability
leak confidential information
reduced employee productivity
8.6 Where is social media taking us?
in the context of CRM, the vendor might lose control of the customer might lose control of the customer relationship
employees craft their own relationships with their employers
organisations need to raise and conserve capital and organise vast groups of people and projects