Wk8.pdf - Introduction to Business Information Systems - COMP1750 PDF

COMP1750: Introduction to Business Information Systems WEEK 8: SOCIAL MEDIA INFORMATION SYSTEMS Our Agenda Today… Q1: What is a social media information system (SMIS)? Q2: How do S...

COMP1750: Introduction to Business Information Systems WEEK 8: SOCIAL MEDIA INFORMATION SYSTEMS Our Agenda Today… Q1: What is a social media information system (SMIS)? Q2: How do SMIS advance organisational strategy? Q3: How do SMIS increase social capital? Q4: How do (some) companies earn revenue from social media? Q5: How can organisations address SMIS security concerns? Q6: Where is social media taking us? Faculty of Science and Engineering | School of Computing 2 Q1: What is a social media information system (SMIS)? Q1: What Is A Social Media Information System (SMIS)? Social media (SM) ▪ IT to support content sharing among networks of users ▪ Enables communities of practice People related by common interest Social media information system (SMIS) ▪ IS for sharing content among networks of users Copyright © 2017 Pearson Education, Inc. Convergence of Many Disciplines Copyright © 2017 Pearson Education, Inc.  Number of Social Media Active Users Copyright © 2017 Pearson Education, Inc. Three SMIS Roles Social media providers Facebook, Google+, LinkedIn, Twitter, Instagram, and Pinterest provide platforms Attracting, targeting demographic groups Users Individuals and organisations Communities Mutual interests that transcend familial, geographic, and organisational boundaries Copyright © 2017 Pearson Education, Inc. 7 SM User Communities Copyright © 2017 Pearson Education, Inc. 8 Social Media Application Providers Facebook, Twitter, LinkedIn, Google … Maybe charge fee ▪ Free company page free on Facebook, but... ▪ Fee to advertise to communities that “Like” that page Internal SM using SharePoint for wikis, discussion board, photo sharing Copyright © 2017 Pearson Education, Inc. Five Components of SMIS Copyright © 2017 Pearson Education, Inc. 10 SMIS Is Not Free Costs to develop, implement, manage social networking procedures Direct labor costs 92% use social media to recruit (93% from LinkedIn) 73% hired using social media ▪ One third rejected candidates because of social profile Copyright © 2017 Pearson Education, Inc. Q2: How do SMIS advance organisational strategy? Q2: How Do SMIS Advance Organisational Strategy? Strategy determines value chain ▪ 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, their communities, and organisations Copyright © 2017 Pearson Education, Inc. SM in Value Chain Activities Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. 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 Copyright © 2017 Pearson Education, Inc. Social Media and Inbound and Outbound Logistics Numerous solution ideas and rapid evaluation of them Better solutions to complex supply chain problems Facilitate 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 Copyright © 2017 Pearson Education, Inc. Social Media and Manufacturing and Operations Improve communication channels within organisation and externally with consumers, design products, develop supplier relationships, and improve operational efficiencies Crowdsourcing Businesses-to-consumer (B2C) Youtube channel to post videos of product reviews and testing, factory walk-throughs Yammer - enterprise social networking service Copyright © 2017 Pearson Education, Inc. Social Media and Human Resources Employee communications using internal personnel sites ▪ Ex: MySite and MyProfile in SharePoint 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 unpopular management message Copyright © 2017 Pearson Education, Inc. 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. Information 2. Influence 3. Social credentials 4. Personal reinforcement Copyright © 2017 Pearson Education, Inc. So What? Facebook for Organisations… and Machines Chatter, by salesforce.com, to connect employees, customers Communities identify, solve problems more quickly and more effectively Readily find and recruit needed experts within organisation Faster project collaboration Internal-facing communities use social media to make organisations better Copyright © 2017 Pearson Education, Inc. Q3: How do SMIS increase social capital? 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 Copyright © 2017 Pearson Education, Inc. What Is the Value of Social Capital? Benefits to People 1. Information ▪ Opportunities, alternatives, problems, and other factors important to professionally and personally 2. Influence ▪ Decision makers and peers 3. Social credentials ▪ Being linked to a network of highly regarded contacts 4. Personal reinforcement ▪ Professional identity, image, and position in organisation or industry Understand what social capital is, why it’s valuable, and how you can benefit from it Copyright © 2017 Pearson Education, Inc. Gain Social Capital for Professionals By adding more friends and strengthening relationships with existing friends By adding friends and strengthening relationships with people who control resources important to you Measure your social networking capital with online service, such as Klout.com ▪ More others respond to your content, higher your score Copyright © 2017 Pearson Education, Inc. How Do Social Networks Add Value to Businesses? Progressive organisations: ▪ Presence on Facebook, LinkedIn, Twitter, and other SN sites ▪ Encourage customers and interested parties to leave comments ▪ Risk - excessively critical feedback Copyright © 2017 Pearson Education, Inc.  Using Social Networking to Increase the Number of Relationships Copyright © 2017 Pearson Education, Inc. 27 Using Social Networks to Increase the Strength of Relationships Strength of a relationship ▪ Likelihood other entity will do something that benefits your organisation Positive reviews, post pictures using organisation’s products or services, tweet about upcoming product releases, and so on Strengthen relationships by asking you to do them a favor Frequent interactions strengthen relationships Copyright © 2017 Pearson Education, Inc. 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 smaller network with substantial resources Resources must be relevant Most ignore value of entity assets Copyright © 2017 Pearson Education, Inc. Top YouTube Channels Copyright © 2017 Pearson Education, Inc. Q4: How do (some) companies earn revenue from social media? Q4: How Do (Some) Companies Earn Revenue from Social Media? Hyper-social organisation ▪ Use SM 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 Monetise Copyright © 2017 Pearson Education, Inc. Revenue Models for Social Media Advertising Pay-per-click Use increases value Freemium ▪ Offers users a basic service for free, then charges a premium for upgrades or advanced features Sales – ▪ Apps and virtual goods, affiliate commissions, donations Copyright © 2017 Pearson Education, Inc. Does Mobility Reduce Online Ad Revenue? Number of mobile devices to reach 10 billion by 2018 Mobile data traffic eleven-fold increase 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 Copyright © 2017 Pearson Education, Inc. 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 69% per year Copyright © 2017 Pearson Education, Inc. Mobile Ad Spending Copyright © 2017 Pearson Education, Inc. Q5: How can organisations address SMIS security concerns? Q5: How Can Organisations Address SMIS Security Concerns? Develop and publicise a social media policy ▪ Delineate employees’ rights and responsibilities ▪ Index to 100 different policies at Social Media Today Web site Intel's Three Pillars of SM Policies 1. Disclose 2. Protect 3. Use Common Sense Copyright © 2017 Pearson Education, Inc.  Intel’s Rules of Social Media Engagement Copyright © 2017 Pearson Education, Inc. 39 Managing the Risk of Inappropriate Content User-generated content (UGC) Problems from external sources Junk and crackpot contributions Inappropriate content Unfavorable reviews Mutinous movements Copyright © 2017 Pearson Education, Inc. 40 Responding to Social Networking Problems Leave it Respond to it Delete it General rule “Never wrestle with a pig; you’ll get dirty and the pig will enjoy it.” Copyright © 2017 Pearson Education, Inc. 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 leak information used to secure access to organisational resources ▪ Bad idea to tell everyone it’s your birthday because your date of birth (DOB), can be used to steal your identity Copyright © 2017 Pearson Education, Inc. Internal Risks from Social Media (cont'd) Employees 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%) Copyright © 2017 Pearson Education, Inc. Q6: Where is social media taking us? Q6: Where Is Social Media Taking Us? New mobile devices with innovative mobile-device UX, coupled with dynamic and agile information systems based on cloud computing and dynamic virtualisation BYOD policy ▪ Organisation the endoskeleton, supporting the work of people on the exterior Employees craft own relationships with their employers Non-routine cognitive skills more important Copyright © 2017 Pearson Education, Inc. How Does the Knowledge in This Chapter Help You? How to apply some of your knowledge to help organisations Learned components of a social media IS and commitment organisation makes when it places a Facebook or Twitter icon on its Web page Learned how organisations use SMIS to achieve strategies across the five primary value chain activities and how SMIS can increase social capital Learned how revenue can be earned from social media Learned about need to manage risks of social media, and how social media will challenge you in the future Copyright © 2017 Pearson Education, Inc. Ethics Guide: Synthetic Friends 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 Copyright © 2017 Pearson Education, Inc. Security Guide: Digital Is Forever Transmitting any personal information using an Internet connection you can become a victim Stored on numerous servers and employer’s server farms In most cases, impossible to delete Digital zombie Companies analyse everything you digitally say and do ▪ Google Copyright © 2017 Pearson Education, Inc. Security Guide: Digital Is Forever (cont'd) Big Data = Big Money ▪ Personal data illegally accessed by criminals and sold on the black market to other nefarious characters; or ▪ Legally accessed by companies and sold to other companies Steps to remove or mask digital footprints ▪ Clearing cookies ▪ Encrypting email ▪ Avoid using real name ▪ Use virtual networks to mask IP address Copyright © 2017 Pearson Education, Inc. Guide: Developing Your Personal Brand College recruiters look for evidence a student has “walked the talk” Social media presence 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 Copyright © 2017 Pearson Education, Inc. Active Review Q1: What is a social media information system (SMIS)? Q2: How do SMIS advance organisational strategy? Q3: How do SMIS increase social capital? Q4: How do (some) companies earn revenue from social media? Q5: How can organisations address SMIS security concerns? Q6: Where is social media taking us? How does the knowledge in this chapter help you? Copyright © 2017 Pearson Education, Inc.