Social Media Information System

Overview
• Recognize the process of acquiring IT resources from a
managerial perspective, the available options for acquiring IT
resources and how to evaluate those options.
• Understanding how organizations plan and justify the acquisition
of new information systems.

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Objectives
After completing this unit, you’ll be able to:
• Define Social Media Information System (SMIS) and three SMIS
organizational roles
• Explain five components of SMIS
• Define the way of Social Media Information System in support
of Company strategy
• Describe the implementation of Social Media Information
System in the improvement of Social Capital.
• Describes how to earn revenue from Social Media.

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Contents
1. Social Media Information System (SMIS)
2. SMIS advance organizational strategy
3. SMIS increase social capital
4. Earn revenue from social media

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Social Media Information System[9.1]

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 Social Media Information System
(SMIS)
• An Information system that supports the
sharing of content among networks of users.
• Social media :
Use of information technology to support
the sharing content among networks of
users.
Enables communities, tribes, or hives
People related by a common interest

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 Social Media is a
Convergence of Disciplines

Psychology Organizational
Theory

Sociology
Social Media
Marketing

Computer
Science MIS

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Source: Using MIS (David M.Kroenke, Randall J. Boyle) Ninth Edition Global Edition, Chapter 08 - Pearson.
 Three SMIS Roles

• Social Media Provider

(Facebook, Google+, LinkedIn, Twitter,
Instagram, etc)
• User
• Communities
SM communities are formed based on
mutual interestsand transcend familial,
geographic, and organizational
boundaries

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SM
Communites

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Source: Using MIS (David M.Kroenke, Randall J. Boyle) Ninth Edition Global Edition, Chapter 08 - Pearson.
 SMIS Components

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Source: Using MIS (David M.Kroenke, Randall J. Boyle) Ninth Edition Global Edition, Chapter 08 - Pearson.
Social Media Information System[9.2]

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 Social Media and the Sales and
Marketing Activity
• Relationships between organizationas and
customers emerge in a dynamic process
• Each customer crafts relationship
• Blog, Forums discussion, sites for user reviews
and commentary, other dynamix content
• Customers search content, contribute reviews
and commentary, ask questions, create user
groups, etc

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 Social Media and Customer
Service
• Product users help each other solve
problems
• Selling to or through developer networks
most successful
• Primary risk is the loss of control
 Negative comments about cherished
products and recommendations for
competitor’s products are a real
possibility
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 Social Media and Inbound and
Outbound Logistics
• SM communities may provide better and
faster problem solutions to complex supply
chain problems
• SM fosters content creation and feedback
among networks of users that facilitates
iteration and feedback needed for problem
solving
• Supply chain problem solving via SM is
problem solving in front of your competitors
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Social Media and Manufacturing and
Operations
• Crowdsourcing
- Dynamic SM process of employing
users to participate in product design
or redesign
• Operation can use SM to improve
communication channels within
organization and externally with
consumers.

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Social Media and Human Resource
• Employee communications using internal
personnel sites
- MySite and MyProfile in SharePoint
• Used for finding employee prospects, recruiting
candidates, or candidate evaluation.
• Place for employees to post their expestise
• Risk :
 Forming erroneous conclusions about
employees
 Becoming defender of belief or pushing an
unpopular management message.
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Social Media Information System[9.3]

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 Social Networks Add Value to
Businessses
• Progressive organizations:
Maintain a presence on Facebook,
Linkedln, Twitter, and other SN sites.
Encourage customers and interested
parties to leave comments.
• Value of Social Capital
- Number of relationships
- Strength of relationships
- Resources controlled
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Using Social Networking to Increase
the Number of Relationships

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Source: Using MIS (David M.Kroenke, Randall J. Boyle) Ninth Edition Global Edition, Chapter 08 - Pearson.
Using Social Networks to Increase the
Strength of Relationships
- Ask them to do you a favor
Organizations must provide an incentive
to continue to do it a favor
- Frequent interactions strengthen
relationships
Continued frequent interactions occurs
only when both parties see value in
continuing the relationship

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Using Social Networks to Connect to
Thise with More Resources

• Someone with 1.000 loyal followers in SM

is usually more valuable than someone
with 10 followers.
• The value of social capital is
Number of Relationships * Relationship Strength * Entity Resources

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Social Media Information System[9.3]

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Revenue Models for Social Media
• Two most common way
 Advertising
- Pay-per-click
 Charging for premium services
- Freemium revenue model :
users with basic service is free,
but charge a fee for upgrades or
advances features
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Lesson Summary
You should now be able to:
• Define Social Media Information System (SMIS) and three SMIS
organizational roles
• Explain five components of SMIS
• Define the way of Social Media Information System in support
of Company strategy
• Describe the implementation of Social Media Information
System in the improvement of Social Capital.
• Describes how to earn revenue from Social Media.

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Unit Summary
You should now be able to:
• Define social media, communities, social media provider and
social media information systems
• Explain the five components of SMIS
• Explain three SMIS organizational roles
• Explain four ways that social capital adds value
• Define how to earn revenue from social media

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Question & Answers

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