Chapter 8 ISA

Leave it:

Reasonable criticism, ligament content, free source of content review

Pay-Per-Click:

Revenue model in which advertisers display ads to potential customers for free and pay only when the customer clicks.

SMIS Components:

SMIS have the same five components as all IS: hardware, software, data, procedures, and people

Data

Social media providers- content and connection data storage for rapid retrieval Users and communities- User- generated content, connection data

Managing the risks of inappropriate content:

This is done by designating a single individual to be responsible a single individual to be responsible for official organizational SM interactions and by creating a process to monitor and mange SM interactions and by creating a process to monitor and manage SM interactions o Clear coordinated and consistent message

Internal Risks from Social Media:

Threats to information security, increase organizational liability, and decrease employee productivity directly effect ability to secure information hackers Employees use of social media can intentionally or unintentionally leak information about intellectual property, marketing campaigns, future products, potential layoffs, budget woes, etc. Employees may inadvertently increase corporate liability when they use social media- employee looking at sexual content at work, sexual lawsuit for organization Threat to employees productivity SM comes with both benefits and costs

User-generated content (UGC):

Which simply means content on your SM site that is contributed by users, is the essence of SM relationship

Social network

a network of social relationships among individuals with a common interest

Monetize

a social media company's ability to make money from its application, service, or contentHow

Influencer

an individual in a social network whose opinion can force a change in others' behavior and beliefs o Such communication is unreliable and brief o When something is good or bad, and when it is recent o Once you have said something, that's it- don't live on for days or weeks

Traditional Capital:

as the investment of resources for future profit o Investment into resources such as factories, machines, manufacturing, equipment, and the like.

Nan, lin: people benefit from social capital in FOUR ways: what are these four ways

1. Information 2. Influence 3. Social credentials 4. Personal reinforcement

Problems from External Sources:

1. Junk and crackpot contributions 2. Inappropriate content 3. Unfavorable reviews 4. Mutinous movements

Communities of practices/ communities

groups of people related by common interest/

Social CRM:

is a dynamic, SM-based process. CRM that includes social networking elements and gives the customer much more power and control in the customer/ vendor relationship With social CRM, each customer crafts his or her own relationship with the company o Customers have much more control over companies o Traditional CRM- centered on lifetime value, social CRM- customer who spends 10 cents but who is an effective reviewer, commentator, or blogger can have more influence than the quiet customer who purchases $10 million.

Connection Data

is data about relationships. Facebook, the relationships to your friends are connection data the liking of an organization is connection data • Both web sites and social media networking sites present user and responder content • But only social networking sites store and process connection data

Content Data

is data and responses to data that are contributed by users. Ex: you provide the source content data for your Facebook site, and your friends provide response content when they write on your wall.

Social media information systems (SMIS):

is the information system that supports the sharing of content among networks of users.

Social Media:

is the use of information technology to support the sharing of content among networks of users. • Social media is a convergence of many disciplines. T

Guidelines when using professionally:

o Adding more friends by strenthing the relationship with existing friends= more social capital o Gain more social capital by adding friends and strengthen relationships with people who control resources that are important to you o Measure success of your social networking efforts- online servies like Klout.com o Important to understand what social capital is, why its valuable, and how you can benefit from it

Henk Flap, Value of Social Capital:

o Is determined by the number of relationships in a social network, by the strength of those relationships, and by the resources controlled by those related. o Our network of current professional contacts provide the most social capital

Social Capital:

o Is investment in social relations with the expectation of returns in the marketplace o Personal life o Help someone get a date- strengthen o Freeload- weaken o Use social media to increase your social capital by recommending or endorsing someone on LinkedIn etc.

Crowdsourcing:

o Is the dynamic social media process of employing users to participate in product design or product redesign o Provide feedback on ebay experience o No better group of advisors than our customer

Human Capital:

o Is the investement in human knowledge and skills for future profit o Investing money and time to obtain knowledge

Business-to-business (B2B)

o Relationships through which businesses generate new retail leads

Business - to consumer (B2C):

o Relationships to market products to end users. o Social media to become industry leaders, promote brand awareness and generate new business to business (B2B) leads to retailers

Procedures:

o Social media providers- run and maintain applications (beyond the scope of this text) o Users and communities- create and manage content, informal, copy each other o Informal, evolving, and socially oriented. - using SMIS easy o Unintended consequences are common o Privacy o Organizations- more formalized and aligned with organizational strategy • Develop procedures by creating content, managing users responses, removing obsolete or objectionable content, and extracting value from content

People:

o Social media providers- staff to run and maintain application (beyond scope of this text) o Users and communities- key users, adaptive, can be irrational o Organizations cannot be as casual o New jobs, responsibilities, and new training o 92% of companies use social media to recruit o 73% have sucessfuly hired using social media, and one-third have rejected candidates because of something on their social profiles

Software:

o Social media provieders- applications, NoSQl, or other DMBS analytics o Users and communitites- browser, iOS , Android, Windows 8, and other applications o Features and functions- important to them o Analytic software to understand how users interact with their site and with application software

Ad-Blocking software:

o Software that filters out advertising content o LinkedIn o Use of this is growing by 43% a year

Increase site value with user contributions

o Use increases value - the more people use a site, the more value a site has, and the more people that visit it o More value, more existing users will return

Social Networks

or social relationships among people with common interests.

What are the three SMIS Roles:

social media providers users communities

what are the three types of capital

traditional, human, and social

Social media providers can be

users, provider or both

Viral Hook

which is some inducement, such as a prize or other reward, for passing communications along through the tiers

Freemium:

• A revenue model offering a basic service for free and then charging a premium for upgrades or advanced features o LinkedIn- selling upgrades of standard SAAS product

How do companies earn revenue: You are the product

• Answer: Making users the product • Being paid to put ad in front of users- • "If your not paying, you're the product"

Social Media And Manufacturing And Operations:

• Dominated by structured processes • Flexibility and adaptive nature of social media would result in chaos if applied to the manufacturing line or to the warehouse • Social media plays a role in product design, developing supplier relationships and improving operational efficiencies

Social Media and inbound and outbound logistics:

• Less tolerance for the unpredictability of dynamic, adaptive processes • Solving problems is an expectation; social media can be used to provide numerous solutions ideas and rapid evaluation. • Communities may provide better and faster solutions to complex supper chain problems • Social media is designed to foster content creation and feedback among networks of users. • Loss of privacy is a significant risk

Advertising:

• Most SM companies earn revenue through advertising • Can come in form of paid search, display or banner ads, mobile ads, classified, or digital video ads • Google led the way in making digital advertising revenue, then gmail, then YouTube • Google- targeting ads based on user content • Digital ads- respond by clicking, know who responds and how quickly, % of who clicked and what action they took next

Social Media and Human Resources:

• Recruiting • Employee communications, often via internal personnel sites- myprofile • Risks of social media cocern the possibility of error when using sites such as facebook to form conclusions about employees and job applicants • SM site becomes too defensive or obviously promulgating an unpopular management message

How to solve problems from external sources:

• Regularly monitor site and remove objectionable material immediately. • Employees or monitoring companies • Mutinous movements- extension of bad reviews.

Social Media and Customer Service:

• SAP • Users with no financial ties are willing to help • Peer-to-peer support is loss of control • Not able to regulate negative comments

Does Mobility Reduce Online AD Revenue:

• Transition from PCs to mobile devices • Now not as many space for ads • On surface, yes this means a reduction in ad revenue • Growth in number of mobile devise far exceeds PC growth • Revenue per device may be lower for mobile than PC, The sheer number of mobile devices is in use may swamp the difference in revenue • Average click through rate on mobile is larger than PCs o Accidental because of space

How Do (Some) Companies Earn Revenue From Social Media:

• having large social network with strong relationships may not be enough to guarantee profitability • Facebook & YouTube- extremely large number of active users- give their services away for free o Billion anything x 0, is still 0 • Nothing is free, even in the world of social media.

Connecting to those with more resources:

• third measure of social capital is the value of the resources controlled by the parties in the relationship • visible- number of relationships • more multiplicative than additive • value of social capital is more in the form of social capital = number of relationships x relationship strength x entity resources • do not take equation literally • a huge network of relationships with people who have few resources may ultimately be of less value than a smaller network of relationships with people who have substantial resources • resources must be relevant to organization

Revenue Models For Social Media:

• two most common ways SM companies generate revenue are by advertising and by charging for premium services • Facebook: creating company page is free, but Facebook charges a fee to advertise to communities that "like" that page.

Communities:

Belong to several or different SM users communities. Formed based on mutual interest and and transcend familiar geographic and organizational boundaries. How an SM site chooses to relate to these communities depends on its goals Pure publicity- as many tires.

Social Media Providers

Companies that provide platforms that enable the creation of social networks. Facebook, twitter, Linkedin, Google are all social media providers o Growth of them has been tremendous o Drawn businesses, advertisers, and investors o Social media providers compete with one another for the attention of users- and the associated advertising dollar

Respond

Dangerous. do something with a positive result

Hardware:

Desktops, laptops, and mobile devices Host the SM presence using elastic servers in the cloud Social media providers- elastic cloud-based servers Users and communities- any user computing device

Strength of a relationship:

In social media, the likelihood that a person or other organization in a relationship will do something that will benefit the organization write positive reviews about an organization strenghten your relationship with someone in power ask them to do you a favor social capital can be spent frequent interactions-strenghten relationships and hence increase social capital • more you intereact with a company, the stronger your commitment and allegiance- only occur when both parties value in continuing the relationshipo social capital can be spent but it can also be earned by adding something of value to the interaction.

Users:

Include both individuals and organizations that use SM sites to build social relationships. • Create and manage SM accounts just like we do. • 77% of Fortunes 500 companies maintain active twitter accounts • Maintain their SM presence, promote their products, build relationships, and mange their images • Can be a user, provider, or both.

Using Social Networks to increase the number of relationships:

Influencer • Use SM to instantly communicate your experiences using text, pictures, and video. • SM- grown social network to reach potential clients that you wouldn't have otherwise • SM- grow number of relationships you have with clients o Depending on number, strength, and value of those relationships- your social capital within those networks would substantially increase • Social capital into financial capital

Responding to Social Networking Problems:

Know sources of potential problems and to monitor for problematic content Three responses: leave it, respond to it, delete it

Conversion rate:

Measures the frequency with which someone who clicks on an ad makes a purchase, "likes" a site, or takes some other action desired by the advertiser o More than twice as high on PCs as on smartphones o PC ads- more effective, on average, than mobile clicks • Mobile devices are unlikely to spell the death of the web/ social media revenue model • Maintain legitimate clicks and conversions

How do social networks add value to businesses?

Orgs. Have social capital just like businesses do• Via salespeople, customer support, and public relations • Endorsements by high profile people- traditional way of increasing social capital • Progressive organizations maintain a presence on Facebook, twitter, etc • Add value to business, consider each of the elements of social capital; number of relationships, strength of relationships, and resources controlled by "friends"

What is a Social Media Information System (SMIS)?

Principles, conceptual frameworks, and models that will last rather than changes in social media services and technology and, in this way, will be useful when you address the opportunities and risks of social media systems in the early years.