Using MIS 8th Edition Kroenke

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 Kroenke - Using MIS 8th Ed - Instructor’s Manual

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8
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.. Social Media Information
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.. Systems

LEARNING OBJECTIVES

• Define a social media information system (SMIS).

• Explain how SMIS advance organizational strategy.
• Explain how SMIS increase social capital.
• Describe how (some) companies earn revenue from social media.
• Explain how organizations develop an effective SMIS.
• Describe an enterprise social network (ESN)
• Explain how organizations can address SMIS security concerns.
• Discuss social media issues in 2025.

CHAPTER OUTLINE

• What is a social media information system (SMIS)?

o Three SMIS roles
o SMIS components
• How do SMIS advance organizational strategy?
o Social media and the sales and marketing activity
o Social media and customer service
o Social media and inbound and outbound logistics
o Social media and manufacturing and operations
o Social media and human resources
• How do SMIS increase social capital?
o What is the value of social capital?
o How do social networks add value to businesses?
o Using social networking to increase the number of relationships
o Using social networks to increase the strength of relationships
o Using social networks to connect to those with more resources
• How do (some) companies earn revenue from social media?
o You are the product
o Revenue models for social media
o Does mobility reduce online ad revenue?
• How do organizations develop an effective SMIS?
o Step 1: Define your goals
o Step 2: Identify success metrics
o Step 3: Identify the target audience

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 Kroenke - Using MIS 8th Ed - Instructor’s Manual 2

o Step 4: Define your value

o Step 5: Make personal connections
o Step 6: Gather and analyze data
• What is an enterprise social network (ESN)?
o Enterprise 2.0
o Changing communication
o Deploying successful enterprise social networks
• How can organizations address SMIS security concerns?
o Managing the risk of employee communication
o Managing the risk of inappropriate content
• 2025?

Learning Catalytics is a "bring your own device" student engagement, assessment, and
classroom intelligence system. It allows instructors to engage students in class with real-
time diagnostics. Students can use any modern, web-enabled device (smartphone, tablet,
or laptop) to access it. For more information on using Learning Catalytics in your course,
contact your Pearson Representative.

So What?

1. Visit www.salesforce.com/chatter to learn about Chatter’s features and applications.

How could Chatter affect value chain activities?
Since Chatter is a social media network for an enterprise, it can be used to improve
communication between all parts of an organization, internally, and to establish a
better bond with the organization’s suppliers and customers. Chatter can be applied in
any of the value chain activities in Figure 8-6. Students will identify a variety of
Chatter applications for these activities.

2. How might Chatter help Apple Inc. create better products?

The communication that Chatter could foster between Apple’s creative minds,
development engineers, vendors, and sales/marketing staff could enable Apple to
create products that help keep Apple on the forefront of product innovation.

3. Why would employees, managers, and owners like to use Chatter? Consider each
individually.
Employees would use Chatter to more easily communicate with coworkers and solve
daily operational problems and issues. Managers would use Chatter to better oversee
issues that are occurring and determine where managerial action might be needed.
For example, a flurry of problems being dealt with by customer support staff could
indicate a quality control problem that needs investigating. Owners might like to use
Chatter to keep tabs on the nature of interactions between the company and its
customers and suppliers.

4. One example for SM machines is having machines report operational status data (say
speed, temperature, fuel usage, and so on, depending on the type of machine) to a

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Chatter or other SM site. How can the organization use such reporting in the context
of machine, customer, and employee social media?
Operational status information reported by machines could be fed to the employees
who are responsible for monitoring machine status and performance. Problems that
may be developing might be able to be identified before becoming significant,
enhancing employee maintenance tasks and improving customer satisfaction.
Machine designs can be improved through this status reporting which will appeal to
customers. Machines that must work in a coordinated fashion will be able to be better
coordinated through the direct communication of status information.

5. How might machines use foursquare (location-based social networking)? Consider

machine-to-machine interactions as well as human-to-machine interactions.
Student responses will vary. One example might be a machine-to-machine
interaction that informs a car about road construction so that the driving route can be
modified.

6. Could machine-to-machine social interactions lead to security or privacy concerns?

How?
If there is a machine-to-machine interaction that a human is not aware of, there could
be issues, such as reporting someone’s location that is then used for a purpose other
than what was intended.

USING YOUR KNOWLEDGE

8-4. Visit www.intel.com/content/www/us/en/legal/intel-social-media-guidelines.html.

Using the four pillars that define a hyper-social organization, explain why Intel
appears to be hyper-social.
Some snippets from the Intel page are included here to help illustrate Intel’s social
media intentions.

1. Consumers become humans – Intel asks its employees to “Talk to your readers like you
would talk to real people in professional situations.” In addition, “Social communication from
Intel should help our customers, partners, and co-workers. It should be thought-provoking and
build a sense of community. If it helps people improve knowledge or skills, build their businesses,
do their jobs, solve problems, or understand Intel better—then it's adding value.” Both of the
comments illustrate the goal of viewing customers as real human beings.
2. Market segments become tribes – Intel focuses on groups of people with common
goals and aspirations. “If it helps people improve knowledge or skills, build their businesses,
do their jobs, solve problems, or understand Intel better—then it's adding value.”
3. Channels become networks – Intel strives to form two-way communication, to
inform about what Intel is doing, but also to learn. “As a business and as a corporate
citizen, Intel is making important contributions to the world, to the future of technology, and to
public dialogue on a broad range of issues. Our business activities are increasingly focused on
high-value innovation. Let's share with the world the exciting things we're learning and doing—and
open up the channels to learn from others.”
4. Structure and control gives way to messiness – Intel encourages and promotes
comments and responses. “Consider content that's open-ended and invites response.

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Encourage comments. You can also broaden the conversation by citing others who are blogging
about the same topic and allowing your content to be shared or syndicated.”
(LO: 6, Learning Outcome: Discuss the ethical and social issues raised by the use of
information systems, AACSB: Ethical Understanding and Reasoning Abilities)

8-5. Visit http://socialmediatoday.com/ralphpaglia/141903/social-media-employee-policy-

examples-over-100-companies-and-organizations. Find an organization with a very
restricted employee SM policy. Name the organization and explain why you find that
policy restrictive. Does that policy cause you to feel positive, negative, or neutral
about that company? Explain.

Student responses will vary depending upon the company selected. A good example
of an SM policy that is full of “don’t” messages is that of Baker & Daniels. Baker &
Daniels is a law firm and is therefore very careful to define appropriate and
inappropriate use of SM communications. This policy is a good example of “what not
to do” with social media. (LO: 6, Learning Outcome: Discuss the ethical and social
issues raised by the use of information systems, AACSB: Ethical Understanding and
Reasoning Abilities)

COLLABORATION EXERCISE 8

8-6. Compare the tech companies’ P/E ratios to the traditional companies’ P/E ratios.
Note that some of the tech companies have very high P/E ratios. (A low P/E is good;
a high P/E is bad.) Some, like Twitter, don’t even have a P/E ratio because they
haven’t turned a profit. As a group, list the reasons why the tech companies have
such high P/E ratios. Are the prices of these companies’ stocks justified given the
earnings? Why?

Student group’s answers will vary. New (LO: 2, Learning Outcome: Explain how IS
can enhance systems of collaboration and teamwork, AACSB: Analytic Skills)

8-7. Identify public tech stocks you believe are undervalued (not limited to this list).
Design an investment portfolio consisting solely of tech stocks that you believe will be
profitable. Justify your decision with regard to risk and return on those stocks.
Student responses will vary – a task to be performed. (LO: 2, Learning Outcome:
Explain how IS can enhance systems of collaboration and teamwork, AACSB:
Analytic Skills)

8-8. Create a free online portfolio of these stocks (i.e., via Yahoo! Finance) and track its
progress. Report on its performance.
Student responses will vary – a task to be performed. (LO: 3, Learning Outcome:
Explain how IS can enhance systems of collaboration and teamwork, AACSB:
Analytic Skills)

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8-9. Could overvalued tech stocks lead to a dot-com 2.0 crash like the original dot-com
crash in 1999–2001? Discuss why this may or may not happen. Summarize your
discussion in a couple paragraphs.
Student opinions may vary. Point out that the first dot-com crash occurred because so
much capital had gone in to new business ventures that did not have a well-thought-
out business model. The ideas were fresh and exciting but in many cases there was a
lot of trouble converting the ideas into a real cash flow. Hopefully those same
mistakes will not be made again. (LO: 3, Learning Outcome: Explain how IS can
enhance systems of collaboration and teamwork, AACSB: Analytic Skills)

CASE STUDY 8
Sedona Social

8-10. Search Facebook for Sedona, Arizona. Examine a variety of Sedona area pages
that you find. Using the knowledge of this chapter and your personal social media
experience, evaluate these pages and list several positive and negative features of
each. Make suggestions on ways that they could be improved.
Student opinions will vary on this topic. Look for student to evaluate the use of this
social media venue to support the sharing of content among networks of users. There
are numerous beautiful photos of the area, but less in the way of engaging
“conversation” on the pages about the area. (LO: 4, Learning Outcome: Discuss the
role of information systems in supporting business processes, AACSB: Analytic
Skills)

8-11. Repeat question 8-10 for another social media provider. As of this writing,
possibilities are Twitter, LinkedIn, and Pinterest, but choose another social media
provider if you wish.
Students’ answers will vary depending on the provider selected. Looking at Pinterest,
even more beautiful photos are found along with more commentary and some local
business advertising. (LO: 4, Learning Outcome: Discuss the role of information
systems in supporting business processes, AACSB: Analytic Skills)

8-12. The purpose of a Chamber of Commerce is to foster a healthy business climate for
all of the businesses in the community. Given that purpose, your answers to questions
8-10 and 8-11, and the knowledge of this chapter, develop a set of 7 to 10 guidelines
for local businesses to consider when developing their social media presence.
Students’ answers will vary. Their guidelines should encourage businesses to make it
easy to find information, get answers to questions, enable users to share photos and
comments, keep their pages current and inviting, make it simple for users to share
links with their networks, have a plan for dealing with problematic UGC. (LO: 4,
Learning Outcome: Discuss the role of information systems in supporting business
processes, AACSB: Analytic Skills)

8-13. Sedona has quite a number of potentially conflicting community groups. Explain

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three ways that the Chamber of Commerce can use social media to help manage
conflict so as to maintain a healthy business environment.
Student answers will vary. Students should recognize that the Chamber of Commerce
has a role of promoting the community as a place for growth and development.
Therefore, it should use social media to foster positive relationships among those who
stand to benefit from the community’s growth and development. Since there will be
conflicting opinions among the various community groups, social media can help
each group feel as if its voice is being heard and listened to. (LO: 4, Learning
Outcome: Discuss the role of information systems in supporting business processes,
AACSB: Analytic Skills)

8-14. Examine Figure 8-5 and state how the focus of each of the primary value chain
activities pertains to the Chamber of Commerce. If one does not pertain, explain why.
In your answer, be clear about who the Chamber’s customers are.

• Sales and marketing – the Chamber’s customers are the owners of prospective
businesses in the region. Social CRM can help the chamber manage its contacts
with business prospects.
• Customer service – provides answers to current Sedona area businesses and also
connects existing and prospective businesses.
• Inbound logistics – could apply to the process of obtaining the content included in
Chamber/community promotional material.
• Outbound logistics – used to distribute promotional material to the Chamber’s
customers (current businesses and business prospects).
• Manufacturing/operations – operations applies to the Chamber – employees can
share knowledge and problem solving techniques.
• Human resources – use for prospecting, recruiting, and evaluating employees.
(LO: 2, Learning Outcome: Discuss the role of information systems in supporting
business processes, AACSB: Analytic Skills)

8-15. Given your answer to question 8-14 and considering your responsibility to
manage the Chamber’s social media presences, state how each applicable row of
Figure 8-5 guides the social media sites you will create.
By considering each row of Figure 8-5, a variety of uses of social media become
apparent. Keeping all these uses in mind will help ensure that social media sites are
created for all parts of our value chain, not just one or two. (LO: 2, Learning
Outcome: Discuss the role of information systems in supporting business processes,
AACSB: Analytic Skills)

8-16. Using your answers to these questions, write a job description for yourself.
The Social Media Manager will help moderate and inspire promotional
communications via Chamber of Commerce specific Internet-based applications to
encourage the exchange of user-generated content. This position will serve as a
conduit between the Chamber staff and website consumers (current Sedona
businesses, prospective Sedona businesses, and the general public) to report events
via social media channels. Manages the social media elements to foster interaction,
education, engagement and discussion regarding the Chamber’s promotional efforts

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through the use of both internal and external online communities. The Social Media
Manager will manage, update and enhance through creative efforts our social media
efforts; Facebook, Twitter, and other blogs and social media channels. (LO: 2,
Learning Outcome: Discuss the role of information systems in supporting business
processes, AACSB: Analytic Skills)

8-17. Write a two-paragraph summary of this exercise that you could use to
demonstrate your knowledge of the role of social media in commerce in a future job
interview.
Student answers will vary. Look for students to recognize the variety of uses of social
media sites and to link the organization’s particular value chain activities to its social
media presences. (LO: 2, Learning Outcome: Discuss the role of information systems
in supporting business processes, AACSB: Analytic Skills)

For an example illustrating the concepts found in this chapter, view the videos in
mymislab.com.

Copyright © 2016 Pearson Education, Inc.