Chapter 8

The chapter discusses rapid technological change is to learn and understand underlying principles. It also focuses on principles, conceptual frameworks, and models that will be useful to address the opportunities and risks of social media systems in early years of your professional career.

Q1: What is a social media information system (SMIS)?

Social media IT is for sharing content among networks of users, enables communities of practice and people related by a common interest. Social media information system (SMIS) is sharing content among networks of users. Social has several convergences of many disciplines such as psychology, sociology, computer science, MIS, marketing and organizational theory.  There are three SMIS roles that are consist within social media. Social Media Providers such as Facebook, Google+, LinkedIn, Twitter, Instagram, and Pinterest platforms are attracting, targeting demographic groups, users, individuals and organizations and communities. In addition, mutual interests that transcend familial, geographic, and organizational boundaries. Companies hire staff to maintain their SM presence, promote their products, build relationships, and manage their image. Depending on how organizations want to use SM, they can be users, providers, or both. Five components of SMIS and the SM User communities start with Community A - first-tier community of users with direct relationship to the site.  User 1 belongs to three communities — A, B, and C. Communities B–E - second-tier communities intermediates by a first-tier user.  Then the number of second and higher tier community members grows exponentially. After, exponential nature of relationships offers sponsoring organizations both a blessing and a curse. If social media site wants pure publicity, will need viral hook to relate to as many communities as possible.

Q2: How do SMIS advance organizational strategy?

Learn the relationship of information systems to organizational strategy because 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 balance of power among users, communities, and organizations. Social media contributes to five primary value chain activities and to human resources support activity. General framework by which organizations can accomplish their strategy via a dynamic process supported by SMIS. Organizations controlled their relationships with customers using structured processes and related information systems. In fact, the primary purpose of traditional CRM was to manage customer touches. Customers search content, contribute reviews and commentary, ask questions, create user groups, and not centered on customer lifetime value. Social Media and Customer Service as many organizations struggle to make the transition from controlled, structured, traditional CRM processes to wide-open, adaptive, dynamic social CRM processes. 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. Peer-to-peer support risks loss of control. Social Media and Manufacturing and Operations Improves communication channels within organization and externally with consumers, design products, develop supplier relationships, and operational efficiency.

Q3: How do SMIS increase social capital?

The Value of social capital is number of relationships, strength of relationships, resources controlled and adds value in four ways: information, influence, social credentials, personal reinforcement, capital, investment of resources for future profit. The types of business capital are physical capital: produce goods and services. Human capital is human knowledge and skills investments. Social capital is social relations with expectation of marketplace returns. 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 and using Social Networking to increase the number of relationships growing social networks organizations have social capital just as humans do. Discuss how could a photographer use SM to communicate a wedding experience using text, pictures, and video instantly to everyone in your social network. Growing social networks uses organizations have social capital just as humans do. Discuss how could a photographer use SM to communicate a wedding experience using text, pictures, and video instantly to everyone in your social network, Strength of a relationship is the 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 will weaken the strength social relationships by continually freeloading, declining requests for help, and failing to spend time with friends. 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 and most organizations ignore value of entity assets.

Q4: How do (some) companies earn revenue from social media?

Processing time, data communication, and data storage may be cheap, but they still cost something. Hyper-social organization Transform interactions with customers, employees, and partners into mutually satisfying relationships with them and their communities. The two most common ways SM companies generate revenue are advertising and charging for premium services. Revenue models for social media Pay-per-click use to increases value. Freemium offers users a basic service for free, and then charges a premium for upgrades or advanced features. Also sales that use apps and virtual goods, affiliate commissions, donations. Conversion rate frequency someone clicks on ad makes a purchase, “likes” a site, or takes some other action desired by advertiser.

Q5: How do organizations develop an effective SMIS?

Focus on being cost leader or on product differentiation, industry-wide or segment focus and premeditated alignment of SMIS with organization’s strategy. Create a process of developing a practical plan to effectively use existing social media platforms. Success metrics or key performance indicators (KPI). Metrics are simply measurements used to track performance and don’t improve your decision making are commonly referred to as vanity metrics

Q6: What is an enterprise social network (ESN)?

ESN is a 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 uses of emergent social software platforms within companies, or between companies, partners or customers. The 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. Communication channels within corporations changed in equally dramatic ways and using ESNs, employees can bypass managers and post ideas directly for CEO to read. Quickly identify each organization, 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 and assess likelihood of employee resistance.

Q7: How can organizations address SMIS security concerns?

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. Develop and publicize social media policy. Delineate employees’ rights and responsibilities: disclose, protect, use common Sense and managing the risk of Inappropriate content. Organizations should regularly monitor the site and remove objectionable material.  Monitoring can be done by employees or by companies, which offer services not only to collect and manage ratings and reviews, but also to monitor sites for irrelevant content. For example: User-generated content (UGC), problems from external sources, junk and crackpot contributions, inappropriate content, unfavorable reviews and mutinous movements. Its monitor by employees or use outsource service who are responding to Social networking problems responses are best reserved for when the problematic content has caused the organization to do something positive as a result. Comments by crackpots, have nothing to do with the site, or contains obscene or otherwise inappropriate content. Internal Risks from Social Media are threats to information security, increased organizational liability, decreased employee productivity Directly affect ability to secure information resources

Q8: 2026?

Social media means customers use all the vendor’s touch points they can find to craft their own relationships. New mobile devices with innovative mobile-device UX, coupled with dynamic and agile information systems based on cloud computing and dynamic virtualization. Organization the endoskeleton, supporting the work of people on the exterior. Employees craft own relationships with their employers. Big Data = Big Money, personal data illegally accessed by criminals and sold on black market to other nefarious characters; or legally accessed by companies and sold to other companies. Understand importance and value of personal brand, social media presence one component of a professional brand. Traditional sources of personal branding, like personal networks of face-to-face relationships, important.