Experiencing MIS 8th by m kronenke chapter 08

Chapter 8

Social Media
Information Systems


“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.

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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.

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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?

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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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Social Media Is a Convergence of Disciplines

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Number of Social Media Active Users

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Three SMIS Roles

•

Social Media Providers

–
–
•

Attracting and targeting certain demographic groups

Users

–

•

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

Both individuals and organizations

Communities

–

Mutual interests and transcend familial, geographic, and organizational boundaries

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SM User Communities

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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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Five Components of SMIS

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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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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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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

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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 Most Valuable Professional (MVP) program
• Peer-to-peer support risks loss of control

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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

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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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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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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, and resources controlled
•

Adds value in four ways:

1.
2.
3.
4.

Information
Influence
Social credentials
Personal reinforcement - professional image or status

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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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Using Social Networking
to Increase the Number of
Relationships

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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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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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