TRƯỜNG CÔNG NGHỆ VÀ THIẾT KẾ

KHOA CÔNG NGHỆ THÔNG TIN KINH DOANH

Chapter 8

Social Media
Information Systems.

Giảng viên: ThS. Bùi Xuân Huy

Email: huybx@ueh.edu.vn
 AGENDA
• What Is a Social Media Information
Q1 System (SMIS)?
• How Do SMIS Advance Organizational
Q2 Strategy?

• How Do SMIS Increase Social Capital?

Q3
• How Do (Some) Companies Earn
Q4 Revenue from Social Media?

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 AGENDA

• How Do Organizations Develop an

Q5 Effective SMIS?

• What Is an Enterprise Social Network

Q6 (ESN)?

• How Can Organizations Address SMIS

Q7 Security Concerns?

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 INTRODUCTION

Source: https://www.smartinsights.com/
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 Q1. What Is a Social Media
Information System (SMIS)?

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 Social Media Information
System (SMIS)
 Social media (SM)
 Use of IT for sharing of content among
networks of users
 Enables communities of practice
 A social media information system (SMIS)
 An information system that supports the
sharing of content among networks of
users.

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 Social Media Information
System (SMIS)

Source: Textbook [1] –

Figure 8-1. Social Media Is a Convergence of Disciplines

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 Three SMIS Roles
 Social Media Providers:
 Facebook, Google+, LinkedIn, Twitter,
Instagram, ...)
 Provide platforms that enable the creation
of social networks, or social
relationships among people with common
interests

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 Three SMIS Roles

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 Three SMIS Roles

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 Three SMIS Roles

 Users:
 Individuals and Organizations that use SM
sites to build social relationships.
 SM Communities:
 Mutual interests and transcend familial,
geographic, and organizational boundaries
 viral hook

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 Three SMIS Roles

Source: Textbook [1] –

Figure 8-3. SM Communities

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 SMIS Components

Source: Textbook [1] – Figure 8-4. Five Components of SMIS

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 Q2. How Do SMIS Advance
Organizational Strategy?

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 SMIS Advance
Organizational Strategy

 Social media is by its very nature dynamic 

its flow cannot be designed or diagrammed
 Need to consider how value chains determine
dynamic process  Set SMIS requirements
 SM fundamentally changes balance of power
among users, communities, and organizations.

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 SMIS Advance
Organizational Strategy
 SM in Value Chains Activities
 SM and the Sales and Marketing Activity
 SM and Customer Service
 SM and Inbound and Outbound Logistics
 SM and Manufacturing and Operations
 SM and Human Resources

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 SMIS Advance
Organizational Strategy

Source: Textbook [1] – Figure 8-5. SM in Value Chain

Activities
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 Social Media and the Sales
and Marketing Activity
 In the Past: organizations controlled their
relationships with customers using structured
processes and related information systems
 Nowaday: The relationships between
organizations and customers emerge in a
dynamic process as both parties create and
process content

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 Social Media and the Sales
and Marketing Activity
 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, …
 Not centered on customer lifetime value
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 Social Media and Customer
Service
 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.
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 Social Media and Inbound
and Outbound Logistics
 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.

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 Social Media and
Manufacturing and Operations
 SM does play a role in designing products,
developing supplier relationships, and
improving operational efficiencies.
 Crowdsourcing: the dynamic social media
process of employing users to participate in
product design or product redesign

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 Social Media and
Manufacturing and Operations
 Manufacturers use social media to:
 Become industry leaders,
 Promote brand awareness, and
 Generate new business-to-business (B2B)
leads to retailers
 start a blog to discuss the latest
industry-related news.
 posts interviews with experts,
 comments on new product innovations
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 Social Media and
Manufacturing and Operations
 Ex: Create a YouTube channel
 Post videos of product reviews and testing
 Provide managers with real-time feedback
about how to resolve internal operational
inefficiencies
 Ex: Facebook and Twitter accounts
 Promote positive consumer stories,
announce new products, and follow
competitors.
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 Social Media and
Manufacturing and Operations
 Operations can use social media to
 Improve communication channels (within
the organization and with consumers)
 Ex: Yammer (enterprise social networking
service)
 provide managers with real-time
feedback about how to resolve internal
operational inefficiencies

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 Social Media and
Human Resources
 Find employee prospects
 Recruit candidates
 Evaluate candidates
 Hire the best people more quickly and at a
lower cost (SM sites)
 Communicate with internal personnel (MySite
and MyProfile in SharePoint)

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 Q3. How Do SMIS Increase
Social Capital?

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 SMIS Increase Social Capital
 Capital: the investment of resources for future
profit
 Types of business capital
 Physical capital: produce goods and services
(factories, machines, manufacturing
equipment)
 Human capital: the investment in human
knowledge and skills for future profit
 Social capital: the investment in social
relations with the expectation of returns in the
marketplace
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 What Is the Value of
Social Capital?
 Value of social capital
 Number of relationships, strength of
relationships, resources controlled.
 Adds value in four ways:
 Information
 Influence
 Social credentials
 Personal reinforcement
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 How Do Social Networks
Add Value to Businesses?
 Maintain a presence on Facebook, LinkedIn,
Twitter and social network sites
 Encourage customers and interested parties
to leave comments
 Consider each of the elements of social
capital: number of relationships,
strength of relationships, and resources
controlled by “friends.

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 Using Social Networking to
Increase the Number of
Relationships
 Communicate using text, pictures, and video
instantly to everyone in your social network
 Depending on the number, strength, and
value of those relationships, social capital
within those networks could substantially
increase.

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 Using Social Networking to
Increase the Number of
Relationships

Source: Textbook [1] –

Figure 8-6. Growing Social Networks

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 Using Social Networks to
Increase the Strength of
Relationships
 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

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 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.
 Most organizations ignore value of entity
assets
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 Q4. How Do (Some) Companies
Earn Revenue from Social Media?

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 You Are the Product

 Users use SM applications without paying

 Monetize: make money from, their
application, service, or content.

 Making users the product

(“If you’re not paying, you’re the product. ”)

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 Revenue Models for
Social Media
 Advertising
 Pay-per-click revenue model:
advertisers display ads to potential
customers for free and pay only when the
customer clicks.
 Use increases value: the more people
use a site, the more value it has, and the
more people will visit.

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 Revenue Models for
Social Media
 Freemium
 The freemium revenue model offers users
a basic service for free and then charges a
premium for upgrades or advanced
features

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 Q5. How Do Organizations
Develop an Effective SMIS?

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 Developing 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.
 Process of developing a practical plan to
effectively use existing social media platforms
(next slide)

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 Developing an Effective
SMIS?

Source: Textbook [1] –

Figure 8-9. Social Media Plan Development

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 Q6. What Is an Enterprise Social
Network (ESN)?

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 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.

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 Enterprise 2. 0: Mc. Affee’s
SLATES Model

Source: Textbook [1] – Figure 8-12. McAfee’s SLATES Model

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 Changing Communication

 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.

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 Deploying Successful
Enterprise Social Networks
 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.

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 ESN Implementation
Best Practices

Source: Textbook [1] – Figure 8-13. ESN Implementation Best Practices

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 Q7. How Can Organizations
Address SMIS Security Concerns?

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 Address SMIS Security
Concerns in Organizations
 Social media policy
 Develop and publicize social media policy.
 Delineate employees’ rights and
responsibilities. – Index to 100 different
policies at Social Media Today
 Three key pillars of Intel’s policy in 2015
 Disclose
 Protect
 Use Common Sense
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 Address SMIS Security
Concerns in Organizations

Source: Textbook [1] – Figure 8-14. Intel’s Rules of Social

Media Engagement

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 Managing the Risk of
Inappropriate Content
 User-generated content (UGC): content on
your SM site that is contributed by users
 Problems from external sources
 Junk and crackpot contributions
 Inappropriate content
 Unfavorable reviews
 Mutinous movements

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 Managing the Risk of
Inappropriate Content
 Responding to Social Networking
Problems
 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
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 Managing the Risk of
Inappropriate Content
 Internal Risks from Social Media
 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.
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 Q&A

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