UsingMIS013519203X_CH09_accessiblePPT.pptx

1. Using MIS Eleventh Edition Chapter 9 Social Media Information Systems Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Slides in this presentation contain hyperlinks. JAWS users should be able to get a list of links by using INSERT+F7

2. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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?

3. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved “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

4. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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

5. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Social Media Information System (SMIS) Q9-1 What is a 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

8. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Three SMIS Roles Q9-1 What is a social media information system (SMIS)? • 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

10. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Social Media Application Providers Q9-1 What is a social media information system (SMIS)? • 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

11. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Figure 9-4 Five Components of SMIS Q9-1 What is a social media information system (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

12. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved SMIS is Not Free Q9-1 What is a social media information system (SMIS)? • Costs to develop, implement, manage social networking procedures • Direct labor costs • 96% of companies use social media to recruit employees

13. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved SMIS and Organizational Strategy Q9-2 How do SMIS advance 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.

14. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Figure 9-5 SM in Value Chain Activities Q9-2 How do SMIS advance organizational strategy? 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

15. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Social Media and the Sales and Marketing Activity Q9-2 How do SMIS advance organizational strategy? • 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

16. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Social Media and Customer Service Q9-2 How do SMIS advance organizational strategy? • 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

17. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Social Media and Inbound and Outbound Logistics Q9-2 How do SMIS advance organizational strategy? • 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

18. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Social Media and Manufacturing and Operations Q9-2 How do SMIS advance organizational strategy? • 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

19. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Social Media and Human Resources Q9-2 How do SMIS advance organizational strategy? • 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

20. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Do SMIS Increase Social Capital? Q9-3 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

21. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved What is the Value of Social Capital? Q9-3 How do SMIS increase 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

22. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved How Do Social Networks Add Value to Businesses? Q9-3 How do SMIS increase social capital? • Progressive organizations: – Have Facebook, LinkedIn, Twitter, other SN sites – Encourage customers and interested parties to leave comments – Risk - encouraging excessively critical feedback

24. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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?

25. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Figure 9-7 Top Youtube Channels (1 of 2) Q9-3 How do SMIS increase social capital? 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

26. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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.

27. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Using Social Networks to Increase the Strength of Relationships Q9-3 How do SMIS increase social capital? • 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

28. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Using Social Networks to Connect to Those with More Resources Q9-3 How do SMIS increase social capital? • 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

29. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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

30. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Revenue Models for Social Media Q9-4 How do (some) companies earn revenue from social 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

31. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Does Mobility Reduce Online Ad Revenue? (1 of 2) Q9-4 How do (some) companies earn revenue from social 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

32. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Does Mobility Reduce Online Ad Revenue? (2 of 2) Q9-4 How do (some) companies earn revenue from social media? • Paid search, display or banner ads, mobile ads, classifieds, or digital video ads • Use of ad-blocking software growing by 30% per year

33. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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?

34. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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

35. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Developing an Effective SMIS? Q9-5 How do organizations develop 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

37. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Figure 9-10 Common SM Strategic Goals Q9-5 How do organizations develop an effective SMIS? 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

38. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Success Metrics Q9-5 How do organizations develop an effective SMIS? • Success metrics are measurements to track performance toward goals. • Also called key performance indicators (KPI) • Ignore vanity metrics • Minimize bounce rate

39. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Figure 9-11 Common SM Metrics Q9-5 How do organizations develop an effective SMIS? 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

40. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Enterprise Social Networks (ESN) Q9-6 What is an enterprise social network (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

41. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Figure 9-12 Mcafee’s SLATES Model Q9-6 What is an enterprise social network (ESN)? 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.

42. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Changing Communication Q9-6 What is an enterprise social network (ESN)? • 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.

43. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Deploying Successful Enterprise Social Networks Q9-6 What is an enterprise social network (ESN)? • 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

44. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Figure 9-13 ESN Implementation Best Practices Q9-6 What is an enterprise social network (ESN)? 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.

45. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Social Media Policy Q9-7 How can organizations address SMIS security 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

46. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Figure 9-14 Intel’s Rules of Social Media Engagement Q9-7 How can organizations address SMIS security 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.

47. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Managing the Risk of Inappropriate Content Q9-7 How can organizations address SMIS security 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)

48. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Responding to Social Networking Problems Q9-7 How can organizations address SMIS security 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

49. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Internal Risks from Social Media (1 of 2) Q9-7 How can organizations address SMIS security 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.

50. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Internal Risks from Social Media (2 of 2) Q9-7 How can organizations address SMIS security 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%)

51. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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

52. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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

53. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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?

54. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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.”

55. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Active Review 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?

56. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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

57. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved 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?

58. Copyright © 2020, 2018, 2017 Pearson Education, Inc. All Rights Reserved Copyright This work is protected by United States copyright laws and is provided solely for the use of instructors in teaching their courses and assessing student learning. Dissemination or sale of any part of this work (including on the World Wide Web) will destroy the integrity of the work and is not permitted. The work and materials from it should never be made available to students except by instructors using the accompanying text in their classes. All recipients of this work are expected to abide by these restrictions and to honor the intended pedagogical purposes and the needs of other instructors who rely on these materials.

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