This criterion is linked to a Learning OutcomeWhat is it about? Why is it so interesting to you?
This criterion is linked to a Learning OutcomeWho are the stakeholders? (e.g. customers, employees, investors, competitors, government)
This criterion is linked to a Learning OutcomeWhich concept(s) in the textbook does this relate to? You may have to read ahead in the text book. (See attachment)
This criterion is linked to a Learning OutcomeHow can this information benefit you personally?
This criterion is linked to a Learning Outcome inclusion of personal insights and understanding
Information Systems
Social Media IS Introduction to Information Systems
Information Systems
LECTURE OUTLINE What is Social Media? Roles of Social Media IS (SMIS) Top Social Media Providers Social Media and Organizational Strategy
Information Systems
Copyright © 2016 Pearson Education, Inc.
Social Media is defined as “a group of Internet-based applications that build on the ideological and technological
foundations of Web 2.0, and that allow the creation and exchange of user-generated content.”
(Kaplan & Haenlein, 2010)
SOCIAL MEDIA
Information Systems
SOCIAL MEDIA INFORMATION SYSTEM (SMIS) Social media (SM) Use of IT to support content sharing among
networks of users Enables formation of communities of practice
(aka communities) — people related by a common interest
Social media information system (SMIS) Supports sharing of content among networks of
users Copyright © 2016 Pearson Education, Inc.
Information Systems
SOCIAL MEDIA IS A CONVERGENCE OF DISCIPLINES
Copyright © 2016 Pearson Education, Inc.
Information Systems
THREE SM ROLES Social media provides Users Communities
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Information Systems
SM ROLE – SM PROVIDERS Social Media Providers Channels such as Facebook, LinkedIn,
Twitter, Instagram, Pinterest, and Google+ Attract and target certain demographic
groups Enable creation of social networks (social
relationships among people with common interest)
Copyright © 2016 Pearson Education, Inc.http://www.pinterest.com/
Information Systems
SM PROVIDERS
Copyright © 2016 Pearson Education, Inc.http://www.stocktwits.com/
Information Systems
SM PROVIDERS
Weibo has 198 million monthly active users (2015-5-20) Twitter has 316 million
Copyright © 2016 Pearson Education, Inc.http://us.weibo.com/gb
Information Systems
SM ROLE – USER Users Both individuals and organizations 73% users on the web use SM with 40% via
mobile devices 92% of companies use social media to recruit
(93% from LinkedIn)
Copyright © 2016 Pearson Education, Inc.
Information Systems
TOP SOCIAL MEDIA PROVIDERS 88% of Fortune 500
companies maintain active Twitter accounts
85% Facebook pages
75% YouTube accounts
Copyright © 2016 Pearson Education, Inc.
Information Systems
SM ROLE – COMMUNITIES Communities Forming communities is a natural human trait Based on mutual interests that transcend familial,
geographic, and organizational boundaries Number of 2nd and 3rd tier community members
grow exponentially
Copyright © 2016 Pearson Education, Inc.
Information Systems
SM USER COMMUNITIES
To induce passing of information to deeper ties, viral hook may be used.
Information Systems
FIVE COMPONENTS OF SMIS
Copyright © 2016 Pearson Education, Inc.
Information Systems
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
Copyright © 2016 Pearson Education, Inc.
Information Systems
SMIS AND ORGANIZATIONAL STRATEGY Strategy determines value chains, which
determine business processes, which determine information systems (Chapter 3)
Social media is dynamic, its flows cannot be designed or diagrammed – they constantly change
How do orgs use value chains to determine dynamic processes and thus set SMIS requirements?
Copyright © 2016 Pearson Education, Inc.
Information Systems
SM IN VALUE CHAIN ACTIVITIES
Copyright © 2016 Pearson Education, Inc.
Information Systems
SOCIAL MEDIA IN SALES AND MARKETING In the past, org controlled customer relationships using
structured processes and related IS Dynamic, SM-based 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*
* An influential person may not be a good paying customer Copyright © 2016 Pearson Education, Inc.
Information Systems
CASE STUDY: SAMSUNG AND DRAGON PHONE Shane Bennett, a loyal Samsung customer, asked for
a free phone from Samsung. Just for fun, he included drawing of a dragon.
Information Systems
Not surprisingly, Samsung said “no”. But to say thanks, they sent him their drawing of a unicycle- riding kangaroo
Shane then shared both messages (and drawings) to Reddit where it went viral. In response, Samsung Canada sent him the phone he asked for – and customized it with his fire-breathing dragon artwork
CASE STUDY: SAMSUNG AND DRAGON PHONE
Information Systems
SOCIAL MEDIA AND CUSTOMER SERVICE Product users amazingly willing to help each other
solve problems (without pay) Relationships emerge from joint activity (co-creation)
where customers have as much control (of the brand) as companies do.
Selling to or through user networks most successful Peer-to-peer support risks loss of business control
Copyright © 2016 Pearson Education, Inc.
Information Systems
CASE STUDY: GAME OF THRONES EXTENDED Ever heard of the HBO series ‘Game of Thrones’? This TV show is so popular that there are slews of
fan websites dedicated to it One such is fanfiction that allows fans to co-create
extension from the original story Take a look at ‘Shadow Cats and Dire Wolves’ by
die-hard fan Roweena Augustine consisting of 17 Chapters (and still going). This is co-creating going off the roof.https://www.fanfiction.net/s/7452280/1/Shadow-Cats-and-Dire-Wolves
Information Systems
SOCIAL MEDIA AND 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 Foster content creation content and feedback
among networks needed for problem solving (e.g. Japan 2011 earthquake)
Loss of privacy/trade secret a significant risk Losing information to your competitors
Copyright © 2016 Pearson Education, Inc.
Information Systems
SOCIAL MEDIA AND MANUFACTURING AND OPERATIONS Designing products, developing supplier relationships, and
improving operational efficiencies – has traditionally been done with structured processes
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
Copyright © 2016 Pearson Education, Inc.http://mystarbucksidea.force.com/apex/ideahome
Information Systems
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 73% hired using social media, and one-third have rejected
candidates because of something on their social profiles Place for employees to post their expertise Risks: Forming erroneous conclusions about employees Becoming defender of belief or pushing an unpopular
management message Copyright © 2016 Pearson Education, Inc.com/17-people-who-were-fired-for-using-facebook-2014-7?op=1″>http://www.businessinsider.com/17-people-who-were-fired-for-using-facebook-2014-7?op=1
Information Systems
LECTURE SUMMARY What is Social Media? Roles of Social Media IS (SMIS) Top Social Media Providers Social Media and Organizational Strategy
Information Systems
Information Systems
Social Media and Social Capital Introduction to Information Systems
Information Systems
LECTURE OUTLINE Social Media and Social Capital Social Media Revenue Strategy Social Media Security Concerns Developing YOUR Personal Social Media Brand
Information Systems
SMIS AND SOCIAL CAPITAL
Copyright © 2016 Pearson Education, Inc.
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
Information Systems
WHAT IS THE VALUE OF SOCIAL CAPITAL? Value of social capital is determined by Number of relationships, strength of relationships, and
resources controlled Social capital adds value in four ways: Information Influence Social credentials Personal reinforcement – professional image or status
Use social media to increase social capital
Information Systems
OH, C. & YERGEAU, S. (2017) “SOCIAL CAPITAL, SOCIAL MEDIA, AND TV RATINGS”. INTERNATIONAL JOURNAL OF BUSINESS INFORMATION SYSTEMS
Copyright © 2016 Pearson Education, Inc.
Information Systems
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1 The Walking Dead 8.65 10/12-10/18 31.03 6053.30 2 The Big Bang Theory 4.58 10/19-10/25 33.33 235.87 3 The Simpsons 3.58 10/19-10/25 74.78 639.08 4 Modern Family 3.47 10/26-11/1 8.36 114.86 5 60 Minutes 3.38 11/2-11/8 0.83 8.00
Oh, C. & Yergeau, S. (2017) “Social Capital, Social Media, and TV Ratings”. International Journal of Business Information Systems
Copyright © 2016 Pearson Education, Inc.
Information Systems
USING SOCIAL NETWORKING TO INCREASE THE NUMBER OF RELATIONSHIPS
Copyright © 2016 Pearson Education, Inc.
Information Systems
USING SOCIAL NETWORKS TO INCREASE THE STRENGTH OF RELATIONSHIPS Strength of a relationship Likelihood that other entity (person or organization) will
do something that benefits your organization Such as 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
Copyright © 2016 Pearson Education, Inc.
Information Systems
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
Copyright © 2016 Pearson Education, Inc.
Information Systems
TOP 10 BRANDS ON FACEBOOK (2017)
Copyright © 2016 Pearson Education, Inc.
Information Systems
COKE SM STRATEGY (WORLD CUP SOCCER MAY 2014)
83% of tweets were direct @replies Copyright © 2016 Pearson Education, Inc.http://simplymeasured.com/blog/lessons-from-coca-colas-social-media-strategy-cohesive-campaigns-and-creative-content/#sm.0001dt21vu2q7dkju8z28yt2myysi
Information Systems
EARNING REVENUE FROM SOCIAL MEDIA Nothing is free SM channels like FB and YouTube has
millions of users but giving free service It cost US83M per month to run FB
You Are the Product “If you’re not paying, you’re the product.” Renting your eyeballs to an advertiser
Copyright © 2016 Pearson Education, Inc.
Information Systems
REVENUE MODELS FOR SOCIAL MEDIA Advertising (FB made 98% ($11.80B) revenue in 2018) 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 (LinkedIn 65% online recruitment, 17% premium subscription, 18% advertising)
Sales of apps and virtual goods, affiliate commissions, donations
Copyright © 2020 Pearson Education, Inc.
Information Systems
DOES MOBILITY REDUCE ONLINE AD REVENUE? By 2021, number of mobile devices is expected to reach 12
billion Mobile data traffic will increase dramatically Average click-through rate of smartphones is 2.18%, but just
1.86% on PCs PC ad clicks more effective, on average, than mobile clicks
Conversion rate are higher on PCs than those for tablets or smartphones
But if there is less ad space on mobile devices, is revenue from mobile advertising limited?
Copyright © 2020 Pearson Education, Inc.
Information Systems
DOES MOBILITY REDUCE ONLINE AD REVENUE? (CONT’D) No, mobile devices unlikely to kill Web/social
media revenue model The volume of mobile device use is
enormous Big Question: How best to configure the
mobile experience to obtain legitimate clicks and conversions?
Copyright © 2016 Pearson Education, Inc.
Information Systems
DEVELOP AN EFFECTIVE SMIS Focus on being cost leader or on product
differentiation Industry-wide or segment focus Key is the premeditated alignment of SMIS with
organization’s strategy
Copyright © 2016 Pearson Education, Inc.
Information Systems
COMMON SM STRATEGIC GOALS
Goal 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
Copyright © 2016 Pearson Education, Inc.
Information Systems
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
Copyright © 2016 Pearson Education, Inc.
Information Systems
SMIS SECURITY CONCERNS Need a social media policy Consider risks from nonemployee user-
generated content Look at risks from employee use of
social media
Copyright © 2016 Pearson Education, Inc.
Information Systems
MANAGING THE RISK OF EMPLOYEE COMMUNICATION Develop and publicize a social media policy Delineates employees’ rights and responsibilities
Intel’s Three Pillars of SM Policies 1.Disclose 2.Protect 3.Use Common Sense
Copyright © 2016 Pearson Education, Inc.
Information Systems
INTEL’S RULES OF SOCIAL MEDIA ENGAGEMENT
Copyright © 2016 Pearson Education, Inc.
Information Systems
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 © 2016 Pearson Education, Inc.
Information Systems
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.”
Copyright © 2016 Pearson Education, Inc.
Information Systems
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
Copyright © 2016 Pearson Education, Inc.
Information Systems
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%) Copyright © 2016 Pearson Education, Inc.
Information Systems
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 (and building your social capital) Copyright © 2016 Pearson Education, Inc.
Information Systems
LECTURE SUMMARY Social Media and Social Capital Social Media Revenue Strategy Social Media Security Concerns Developing YOUR Personal Social Media Brand
Information Systems
- Slide Number 1
- Lecture Outline
- Social Media
- Social Media Information System (SMIS)
- Social Media Is a Convergence of Disciplines
- Three SM Roles
- SM Role – SM Providers
- SM Providers
- SM Providers
- SM Role – User
- Top Social Media Providers
- SM Role – Communities
- SM User Communities
- Five Components of SMIS
- SMIS Is Not Free
- SMIS and Organizational Strategy
- SM in Value Chain Activities
- Social Media in Sales and Marketing
- Case Study: Samsung and Dragon Phone
- Slide Number 20
- Social Media and Customer Service
- Case Study: Game of Thrones Extended
- Social Media and Logistics
- Social Media and Manufacturing and Operations
- Social Media and Human Resources
- Lecture Summary
- Slide Number 27
- Slide Number 28
- Lecture Outline
- SMIS and Social Capital
- What Is the Value of Social Capital?
- Oh, C. & Yergeau, S. (2017) “Social Capital, Social Media, and TV Ratings”. International Journal of Business Information Systems
- Slide Number 33
- Using Social Networking to Increase the Number of Relationships
- Using Social Networks to Increase the Strength of Relationships
- Using Social Networks to Connect to Those with More Resources
- Top 10 Brands on Facebook (2017)
- Coke SM Strategy (World Cup Soccer May 2014)
- Earning Revenue from Social Media
- Revenue Models for Social Media
- Does Mobility Reduce Online Ad Revenue?
- Does Mobility Reduce Online Ad Revenue? (cont’d)
- Develop an Effective SMIS
- Common SM Strategic Goals
- Common SM Metrics
- SMIS Security Concerns
- Managing the Risk of Employee Communication
- Intel’s Rules of Social Media Engagement
- Managing the Risk of Inappropriate Content
- Responding to Social Networking Problems
- Internal Risks from Social Media
- Internal Risks from Social Media (cont’d)
- Guide: Developing Your Personal Brand
- Lecture Summary
- Slide Number 55