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

2. “Nobody Is Going to See Pictures of You in Your PJs on Your Treadmill”
PRIDE – patients exercise at home and still have a group experience.
Members’ performance displayed on cell phone.
Will technology support application?
Will elderly patients use it?
Will it increase motivation?
GOALS
Use PRIDE to:
Illustrate the use of reporting on mobile devices.
Show students an innovative application for mobile + cloud.
Consider a unique application of social networking for health care.
Provide students an opportunity to consider similar but different applications for social applications using mobile + cloud.
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3. PRIDE Application Prototype
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: 2024?
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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. SMIS Organizational Roles
Clarify roles played by the three organizational units.
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8. Copyright © 2015 Pearson Education, Inc.
SM User Communities
Community A is a first-tier community consisting of users with direct relationship to the site. User 1 belongs to three communities — A, B, and C.
Communities B–E are 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, it will want a viral hook to relate to as many communities as possible.
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9. Social Media Sponsors: Not a Casual Commitment
Social media sponsors are companies and other organizations that support a presence on one or more social media sites.
When Microsoft places icons on its promotional pages, it is making a commitment to invest considerable employee time and other costs to support social media.
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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 is free on Facebook, but
Fees are charged to advertise to communities that “Like” that page.
Custom developed SM for company using SharePoint for wikis, discussion boards, and photo sharing.
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11. Five Components of SMIS
SM application providers host the 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 develop procedures for creating content, managing user responses, removing obsolete or objectionable content, and extracting value from content.
Social media is creating 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.
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13. Q2: How Do SMIS Advance Organizational Strategy?
Hyper-social organization theory
Defenders of Belief
Share a common belief.
Seek conformity.
Want to convince others.
Facilitate activities like sales and marketing.
Form strong bonds and allegiance to an organization.
How social media contributes to the primary value chain activities.
Gossieaux and Moran, creators of hyper-social organization theory stated that two kinds of communities are important to commerce.
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14. Q2: How Do SMIS Advance Organizational Strategy? (cont’d)
Seekers of the Truth
Share common desire to learn something, solve a problem, but not a common solution.
Such tribes incredible problem solvers and excel at innovation.
Can be useful in customer service activity.
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15. SM in Value Chain Activities
Figure summarizes how social media contributes to five primary value chain activities and to human resources support activity.
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16. Social Media and the Sales and Marketing Activity
Relationships between organizations and customers emerge in a dynamic process
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.
Traditional CRM is centered on customer lifetime value. SM CRM, customers most likely to generate most business get most attention.
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17. Social Media and Customer Service
Product users help each other solve problems.
Selling to or through developer networks most successful.
Primary risk is the loss of control.
Seekers of truth will seek truth, even if that means recommending another vendor’s product over yours.
Risk of peer-to-peer support is loss of control.
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18. Social Media and Inbound and Outbound Logistics
Seekers-of-the-truth communities provide better and faster problem solutions to complex supply chain problems.
Social media fosters content creation and feedback among networks of users that facilitates iteration and feedback needed for problem solving.
Supply chain problem solving via social media is problem solving in front of your competitors.
Suppliers and shippers work with many companies.
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19. Social Media and Manufacturing and Operations
Crowdsourcing
Enterprise enable users to share knowledge and problem-solving techniques.
Folksonomy - emerges from processing of many user tags
SLATES
Crowdsourcing: Dynamic process of employing users to participate in product design or product redesign.
Enterprise 2.0: Application of social media to facilitate cooperative work of people inside organizations.
Folksonomy: unplanned structure.
Enterprise 2.0 is defined by six characteristics.
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20. McAffee's SLATES Enterprise 2.0 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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21. Social Media and Human Resources
Employee communications using internal personnel sites
Ex: MySite and MyProfile in SharePoint.
Used for finding employee prospects, recruiting candidates, or 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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22. Q3: How Does SMIS Increase Social Capital?
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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23. What Is the Value of Social Capital?
Number of relationships, strength of relationships, and resources controlled.
Information
• Influence
Social credentials
Personal reinforcement of 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 credential.
Reinforce a professional’s image and position in an organization or industry.
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24. 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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25. Using Social Networking to Increase the Number of Relationships
SM Communities
Users 1–4 have a direct relationship with restaurant customers who have a direct relationship with restaurant’s SM site.
Diagram indicates receptions can potentially contribute more than just revenue.
If restaurant can induce reception attendees to form a direct relationship with it, wedding receptions will contribute substantially to number of relationships in its social network and, depending on the strength and value of those connections, possibly contribute substantially to restaurant’s social capital.
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26. Using Social Networks to Increase the Strength of Relationships
Three ways to increase social capital
Ask them to do you a favor.
Frequent interactions strengthen relationships.
Connect with those with more assets.
Social Capital
= NumberRelationships * RelationshipStrength * EntityResources
Social capital depreciates, but can be ameliorated by adding something of value to the interaction.
Strength of a relationship – likelihood a person or organization in the relationship will do something that will create valuable benefits.
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27. Copyright © 2015 Pearson Education, Inc.
Using MIS InClass Exercise 8: Any Other Kayakers Here at the Grand Canyon?
Visit to learn Chatter’s features and applications. Using what you learn, state one Chatter application for each of the value chain activities in Figure 8- 6.
From the salesforce.com site, find three interesting Chatter applications other than General Electric’s. Summarize those applications. Classify them in terms of Figure 8-6.
Chatter can be used to connect employees and customers via social media.
Connect salespeople with pre-sale support personnel or customer service personnel with customers.
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28. Using the Ethics Guide: Social Marketing? Or Lying?
How is social networking different in business than in private life?
Do the ethics vary between private and business use of social networking?
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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29. Q4: What Roles Do SMIS Play in the Hyper-Social Organization?
Uses social media to transform interactions with customers, employees, and partners into mutually satisfying relationships with them and their communities.
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30. Four Pillars of the Hyper-Social Organization
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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31. SEAMS Dynamic Process Activities
Engage with communities with authentic relationships.
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32. How Can SMIS Foster Hyper-Social Organizations
Active lurker
SEAMS Activities and SMIS
Many organizations have a few key users (employees) trained to perform SM engagement tasks. Nonkey users submit ideas and responses to key users for publication in communities. In this way, key users serve as buffer and a filter for possible inappropriate content.
Active lurker, someone who reads, consumes, and observes activity in one social medium, then broadcasts it in some other medium.
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33. Q5: How Do (Some) Companies Earn Revenue from Social Media?
Web 2.0
Web-delivered services and content paid for by advertising.
Key Characteristics of Web 2.0
Pay-per-click revenue model
Use increases value
Mashups
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34. Does Mobility Reduce Online Ad Revenue?
Google generated $7 from each smartphone and about $30 from each desktop. (2012)
Growth is in smartphones
10 billion in next five years
Average click-through rate of smartphones is 4.12% while PCs is 2.39%.
Conversion rate
Unlikely to spell death of the Web/social media revenue model.
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35. Q6: How Can Organizations Manage The Risks Of Social Media?
Social media policy
Statement that delineates employees’ rights and responsibilities.
More technical the organization, the more open and lenient its social policies.
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36. Intel Corporation's Three Key Pillars of Social Media Employee Policy
Transparency and truth
Open and above board
Intel’s Rules of Social Media Engagement
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37. Managing the Risk of User-Generated Content
Problem Sources
Junk and crackpot contributions
Inappropriate content
Unfavorable reviews
Mutinous movements
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38. Responding to Social Networking Problems
Determine how to deal with problematic content before engaging in social media.
Leave it?
Respond to it or let community do it?"
Delete it? If so, what?
“Never wrestle with a pig; you’ll get dirty and the pig will enjoy it.”
If reasonable criticism of the organization’s products or services, leave it.
Responding to problematic content is dangerous. If response could be construed as patronizing or insulting, it could enrage the community and generate a strong backlash.
Allow the community to constrain the user.
Deleting should be reserved for inappropriate, irrelevant and obscene content.
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39. Copyright © 2015 Pearson Education, Inc.
Q7: 2024?
Vendors lose control of the customer relationships.
Emergence in the context of management.
Employees craft own relationships with employers.
Employers provide endoskeleton to support work of people on exterior.
Social media means customers use all the vendor’s touch points they can find to craft their own relationships.
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40. Using the Guide: 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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41. Using the Guide: Social Recruiting (cont'd)
Use communities to locate prospects.
Get a sense of candidate to find any 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 any circle publicly accessed.
Social media is a double-edged sword.
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42. 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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43. Copyright © 2015 Pearson Education, Inc.
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: 2024?
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44. 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 there SM site could be improved.
GOAL:
Use case questions to get student to think of ways to use social media.
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