UsingMIS013519203X_CH09_accessiblePPT.pptx

Using MIS
Eleventh Edition
Chapter 9
Social Media Information
Systems
Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved
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Study Questions
Q9-1 What is a social media information system (SMIS)?
Q9-2 How do SMIS advance organizational strategy?
Q9-3 How do SMIS increase social capital?
Q9-4 How do (some) companies earn revenue from social
media?
Q9-5 How do organizations develop an effective SMIS?
Q9-6 What is an enterprise social network (ESN)?
Q9-7 How can organizations address SMIS security
concerns?
Q9-8 2029?

“In a Mixed-Reality Environment We
Can Create Anything”
• Find ways to make ARES profitable.
• Traditionally banner ads, pop-ups, and short videos
generate ad revenue.
• Mixed-reality apps allows developers to create anything,
replace anything, and alter anything.
– Virtual 60-foot prehistoric megalodon shark
– Virtual 40-foot power bar
– Overlay virtual objects over reality

ARES Application Prototype
• Users cycle with friends virtually
– Unsure how many users it can support
– Think about details of how system will function before
estimating development costs or project timeline
• Generating revenue from social media applications difficult
• Think about ways to apply new, emerging technology to
accomplish business organizational strategies

Social Media Information System (SMIS)
• Social media (SM)
– IT for sharing content among networks of users
– Enables communities of practice
▪ People related by a common interest
• Social media information system (SMIS)
– Sharing content among networks of users

Figure 9-1 Social Media is a
Convergence of Disciplines

Figure 9-2 Number of Social Media
Active Users

Three SMIS Roles
• Social Media Providers
– Facebook, Google+, LinkedIn, Twitter, Instagram, and
Pinterest platforms
– Attracting, targeting demographic groups
• Users
– Individuals and organizations
• Communities
– Mutual interests that transcend familial, geographic,
and organizational boundaries

Figure 9-3 SM Communities

Social Media Application Providers
• Facebook, Twitter, LinkedIn, Google
• May charge fee, depending on application and purpose
– Free company page on Facebook, but
– Fee to advertise to communities that “Like” that page
• Internal SM using SharePoint for wikis, discussion board,
photo sharing

Figure 9-4 Five Components of SMIS
Component Role Description
Hardware Social media providers Elastic, cloud-based servers
Hardware Users and communities Any user computing device
Software Social media providers Application, NoSQL or other DBMS, Analytics
Software Users and communities
Browser, IOS, Android, Windows 10, and other
applications
Data Social media providers Content and connection data storage for rapid retrieval
Data Users and communities User-generated content, connection data
Procedures Social media providers
Run and maintain application (beyond the scope of this
text)
Procedures Users and communities Create and manage content, informal, copy each other
People Social media providers
Staff to run and maintain application (beyond the scope of
this text)
People Users and communities Key users, adaptive, can be irrational

SMIS is Not Free
• Costs to develop, implement, manage social networking
procedures
• Direct labor costs
• 96% of companies use social media to recruit employees

SMIS and Organizational Strategy
• Strategy determines value chains.
– 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 the balance of power among
users, communities, and organizations.

Figure 9-5 SM in Value Chain Activities
Activity Focus Dynamic process Risks
Sales and marketing Outward to prospects Social CRM
Peer-to-peer sales
Loss of credibility
Bad PR
Customer service Outward to customers Peer-to-peer support Loss of control
Inbound logistics Upstream supply chain
providers
Problem solving Privacy
Outbound logistics Downstream supply
chain shippers
Problem solving Privacy
Manufacturing and
operations
Outward for user
design; Inward to
operations and
manufacturing
User-guided design
Industry relationships
Operational efficiencies
Efficiency/effectiveness
Human resources Employment
candidates;
Employee
communications
Employee prospecting,
recruiting, and evaluation
SharePoint for employee-to-
employee communication
Error
Loss of credibility

Social Media and the Sales and
Marketing Activity
• Dynamic, SM–based CRM process
• Social CRM
– Customers craft own 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

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

Social Media and Inbound and
Outbound Logistics
• Benefits
– Numerous solution ideas and rapid evaluation of them
– Better solutions to complex supply chain problems
– Facilitates 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

Social Media and Manufacturing and
Operations
• Improves communication channels within organization
and externally with consumers, design products, develop
supplier relationships, and operational efficiencies
• Crowdsourcing
• Businesses-to-consumer (B2C)
• YouTube for posting videos of product reviews and
testing, factory walk-throughs

Social Media and Human Resources
• Employee communications using internal personnel sites
– Ex: MySite and MyProfile in SharePoint
• Finding prospective employees, recruiting and evaluating
candidates
• Place for employees to post their expertise
• Risks:
– Forming erroneous conclusions about employees
– Pushing unpopular management message

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

What is the Value of Social Capital?
• Value of social capital
– Number of relationships, strength of relationships,
resources controlled
• Adds value in four ways
1. Information
2. Influence
3. Social credentials
4. Personal reinforcement

How Do Social Networks Add Value to
Businesses?
• Progressive organizations:
– Have Facebook, LinkedIn, Twitter, other SN sites
– Encourage customers and interested parties to leave
comments
– Risk - encouraging excessively critical feedback

Figure 9-6 Growing Social Networks

Enhanced Golf Fan
So What?
• Advances in technology have changed the way we
consume entertainment.
• In 1998, 54% of people would rather attend a game than
watch it at home; in 2011 that number had dropped to
29%.
• The PGA has started providing data visualizations,
advanced statistics, real-time updates, and live feeds to
improve the viewing experience.
• How could other sports use data analytics to enhance the
viewing experience?

Figure 9-7 Top Youtube Channels (1 of 2)
Highest-paid YouTube Channels
Rank Name Annual Earnings (millions)
1 Daniel Middleton (DanTDM) $16.5
2 Evan Fong (VanossGaming) $15.5
3 Dude Perfect $14.0
4 Logan Paul $12.5
5 Mark Fischbach (Markiplier) $12.5
Most-viewed YouTube Channels
Rank Name Annual Views (billions)
1 T-Series 39.5
2 WWE 23.4
3 Ryan ToysReview 22.3
4 netd muzik 21.7
5 SET India 19.0

Figure 9-7 Top Youtube Channels (2 of 2)
Most-subscribed YouTube Channels
Rank Name Subscribers (millions)
1 Felix Kjellberg (PewDiePie) 63.3
2 T-Series 48.6
3 Justin Bieber 39.4
4 Canal KondZilla 34.7
5 JustinBieberVEVO 34.5
Source: Data from Social Blade, “Top 50 Influential YouTube Channels,” Socialblade.com,
June 12, 2018, accessed June 12, 2018, https://socialblade.com/youtube/top/50.

Using Social Networks to Increase the
Strength of Relationships
• Strength of a relationship
– Likelihood other entity will do something that benefits
your organization
• Positive reviews, post pictures using organization’s
products or services, tweet about upcoming product
releases, and so on
• Strengthen relationships by asking someone to do you a
favor
• Frequent interactions strengthen relationships

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 a smaller network of people with substantial
resources
• Resources must be relevant
• Most organizations ignore value of entity assets

Earning Revenue from Social Media
Q9-4 How do (some) companies earn revenue from social media?
• YouTube has more than 1.6 billion active users that watch more
than 5 billion videos each day
• Do all those users really matter if Facebook and YouTube can’t
make a single penny off of them?
• You Are the Product.
– “If you’re not paying, you’re the product.”
– Renting your eyeballs to an advertiser
• Monetize make money from, their application, service, or
content

Revenue Models for Social Media
media?
• Advertising
– Pay-per-click
– Use increases value
• Freemium
– 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

Does Mobility Reduce Online Ad
Revenue? (1 of 2)
media?
• By 2021, number of mobile devices to reach 12 billion
– Mobile ad spending should reach $102B, and account
for 80% of total digital ad spending
• Average click-through rate of smartphones is 2.18%, but
just 1.86% on PCs.
• Conversion rate
– Frequency someone clicks on ad, makes a purchase,
“likes” a site, or takes some other action desired by
advertiser

Does Mobility Reduce Online Ad
Revenue? (2 of 2)
media?
• Paid search, display or banner ads, mobile ads,
classifieds, or digital video ads
• Use of ad-blocking software growing by 30% per year

Figure 9-8 Mobile Ad Spending
Q9-4 How do (some)
companies earn revenue
from social media?
• Mobile users click ads
more often and generate
more revenue.
• Design problem: How
best to configure mobile
experience to obtain
legitimate clicks and
conversions?

Synthetic Friends
Ethics Guide
• 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

Developing an Effective SMIS?
• Focus on being cost leader or on product differentiation
• Industry-wide or segment focus
• Premeditated alignment of SMIS with organization’s
strategy
• Next slide shows process of developing a practical plan to
effectively use existing social media platforms

Figure 9-9 Social Media Plan
Development

Figure 9-10 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

Success Metrics
• Success metrics are measurements to track
performance toward goals.
• Also called key performance indicators (KPI)
• Ignore vanity metrics
• Minimize bounce rate

Figure 9-11 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

Enterprise Social Networks (ESN)
• ESN
– Software platform uses SM to facilitate cooperative
work of people within an organization
– Improve communication, collaboration, knowledge
sharing, problem solving, and decision making
• Enterprise 2.0
– Use of emergent social software platforms within
companies, or between companies, partners or
customers

Figure 9-12 Mcafee’s SLATES Model
Enterprise 2.0 Component Remarks
Search People have more success searching than they do in finding from
structured content
Links Links to enterprise resources (like on the Web)
Authoring Create enterprise content via blogs, wikis, discussion groups,
presentations, etc.
Tags Flexible tagging (like Delicious) results in folksonomies of
enterprise content
Extensions Using usage patterns to offer enterprise content via tag
processing (like the style of Pandora)
Signals Pushing enterprise content to users based on subscriptions and
alerts
Source: Based on Andrew McAfee, “Enterprise 2.0: The Dawn of Emergent
Collaboration,” MIT Sloan Management Review, Spring 2006, accessed
http://sloanreview.mit.edu/article/enterprisethe-dawn-of-emergent-collaboration.

Changing Communication
• Communication channels within corporations changed in
equally dramatic ways.
– Using ESNs, employees can bypass managers and
post ideas directly for CEO to read.
– Quickly identify internal experts to solve unforeseen
problems.

Deploying Successful Enterprise Social
Networks
• Organizations still learning how to use and deploy ESNs
• Develop strategic plan for using SM internally via same
process as used for external social media use
• Assess likelihood of employee resistance

Figure 9-13 ESN Implementation Best
Practices
Blank ESN Deployment Best Practices
Strategy 1. Define how ESN supports the organization’s existing goals and objectives.
2. Define success metrics.
3. Communicate the ESN strategy to all users.
4. Convey an expectation of organization-wide ESN adoption.
Sponsorship 5. Identify an executive sponsor to promote the ESN.
6. Identify ESN champions within each organizational unit.
7. Encourage champions to recruit users.
8. Identify groups that would benefit most from the ESN.
Support 9. Provide all users access to the ESN.
10. Mandate processes to be used within the ESN.
11. Provide incentives for ESN adoption and use.
12. Provide employee training and ESN demonstrations.
Success 13. Measure ESN effectiveness via success metrics.
14. Evaluate how ESN supports the organization’s strategy.
15. Promote ESN success stories.
16. Continuously look for ways to use the ESN more effectively.

Social Media Policy
concerns?
• Develop and publicize social media policy.
– Delineate employees’ rights and responsibilities
– Index to 100 different policies at Social Media Today
• Intel’s Three Pillars of SM Policies
1. Disclose
2. Protect
3. Use Common Sense

Figure 9-14 Intel’s Rules of Social Media
Engagement
concerns?
Disclose
Be transparent-use your real name and employer
Be truthful-point out if you have a vested interest
Be yourself-stick to your expertise and write what you know
Protect
Don’t tell secrets
Don’t slam the competition
Don’t overshare
Use Common
Sense
Add value-make your contribution worthwhile
Keep it cool-don’t inflame or respond to every criticism
Admit mistakes-be upfront and quick with corrections
Source: Used with permission from Intel Corporation.

Managing the Risk of Inappropriate
Content
concerns?
• User-generated content (UGC)
• Problems from external sources
– Junk and crackpot contributions
– Inappropriate content
– Unfavorable reviews
– Mutinous movements
• Monitor by employees or use outsource service
(Bazaarvoice)

Responding to Social Networking
Problems
concerns?
• Leave it.
– “Never wrestle with a pig; you’ll get dirty and the pig
will enjoy it.”
• Respond to it.
– If it yields positive result
• Delete it.
– Comments by crackpots, have nothing to do with the
site, or contains obscene or otherwise inappropriate
content

Internal Risks from Social Media (1 of 2)
concerns?
• Threats to information security, increased organizational
liability, decreased employee productivity
• Seemingly innocuous comments inadvertently leak
information used to secure access to organizational
resources
– Bad idea to tell everyone it’s your birthday because
your date of birth (DOB) can be used to steal your
identity.

Internal Risks from Social Media (2 of 2)
concerns?
• 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%)

Social Media Information Systems in
2029
Q9-8 2029?
• New mobile devices with innovative mobile-device UX,
coupled with dynamic and agile information systems
based on cloud computing and dynamic virtualization
• BYOD policy
– Organization the endoskeleton, supporting the work
of people on the exterior
▪ Employees craft own relationships with their
employers
• Non-routine cognitive skills more important

Social Engineering Bitcoin (1 of 2)
Security Guide
• Insiders, third-party suppliers, and contractors pose an
increasingly serious threat
• Social engineering is the process of manipulating
individuals to access secure systems, gain confidential
information, or violate the integrity of secure systems
• Scammers are trying to convince victims to contribute
their idle computing power to mine cryptocurrencies but
never paying them for their contribution

Social Engineering Bitcoin (2 of 2)
Security Guide
• Another cryptocurrency scam currently involves selling
people cryptocurrencies that do not actually exist.
– Hundreds of different cryptocurrencies
– Difficult to keep track of and verify which currencies
are legitimate
• How could attackers use social engineering to
compromise a secure internal system?
• How would attackers use social engineering to scam
users into mining?

Social Media Online Reputation
Manager
Career Guide
Adam Young at RC Willey
Q. What attracted you to this field?
A. “While looking for career opportunities, I saw that technology
was always going to be important and was constantly evolving.
I’ve always liked new challenges, and this looked like a good
starting point.”
Q. What advice would you give to someone who is considering
working in your field?
A. “Do as much as you can to gain as much experience as you
can before you graduate. A lot of companies are looking for
experience. The more that you do now to develop those skill sets,
the better you will stand out.”

Active Review
media?
concerns?
Q9-8 2029?

Linkedin (1 of 2)
Case Study 9
• In 2006, LinkedIn boasted more than 5 million members
• In 2010, LinkedIn saw membership climb to 90 million
– More than 1,000 employees in 10 offices around the
world
• In 2011 LinkedIn became publicly traded and was valued
at more than $4.5 billion
– Earned more than $150 million per year in advertising
revenue

Linkedin (2 of 2)
Case Study 9
• In 2016, LinkedIn was acquired by Microsoft for $26 billion
– More than 9,000 employees and more than half a
billion members in more than 200 countries worldwide
• Would the two companies be worth more together than
apart?
• Can it be successfully integrated across all Windows
products?

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