Chapter 11

Implementing
Social Commerce Systems
 Learning Objectives
1. Describe the major issues in the social commerce
implementation landscape.
2. Discuss the security and fraud protection issues in
social commerce.
3. Describe legal, privacy, security, and cyberbullying
issues.
4. Describe the major technological issues including
integration, systems development, and software and
vendor selection.
5. Discuss the major employee-related implementation
issues ranging from wasting time to participation, and
the related guidelines and policies.
 Learning Objectives
6. Discuss organizational impacts including
transformation to social business.
7. Discuss implementation issues related to
SMEs and risk management.
8. Discuss the major success and failure factors,
policies and guidelines, and adoption of
social commerce.
9. Describe the future of social commerce.
 Opening Case: Domino’s Employees
Post Vulgar Videos on YouTube
• The Problem (The Incident)
– 2 employees created 5 prank videos that went viral on
YouTube
– The videos showed a variety of acts of food
contamination by employees
– Six hours after being posted, the videos were featured
on the consumer advocacy site Consumerist
– Even though the videos were pulled by they continued
to damage the Domino’s brand, with many stores
rapidly losing business
 Opening Case: Domino’s Employees
Post Vulgar Videos on YouTube
• The Solution (The Company’s Response)
– Domino’s tracked down the perpetrators and
immediately fired them, requiring them to write a
letter explaining the videos
– CEO Patrick Doyle posted an apology video using the
same key words as were used for the originals
– This video was highly effective, given that it offered a
direct response to both Domino’s customers and to
others who had seen the videos, and it also explained
what Domino’s was doing about the problem
– Domino’s immediately started a comprehensive social
media effort
 Opening Case: Domino’s Employees
Post Vulgar Videos on YouTube
• The Results
– The incident gave Domino’s the impetus to start a
social media communications and monitoring
program
– Domino’s also started practicing proactive
customer interactions via social media, expanding
their initial success with direct customer
engagement and using social media as a means of
rebuilding their brand and maintaining
communications
 Lessons Learned from this Case
• Employees are all spokes people for the brand;
therefore, they should all be trained in social media use
(and misuse) to make them aware of the potential
damage caused by the use of negative brand videos
• Reputation-management response should use the
same social media channels, allowing the company to
specifically target the desired audience
• A company needs to explicitly monitor activities and be
ready to respond immediately in case of a crisis, given
the speed of content spreading on social media and
the potential for damage
 Social Commerce
Implementation Issues
• What Is Implementation?
– Implementation is the process of carrying out,
executing, or practicing of a business plan
Figure 11.1: The Major Implementation Issues of Social Commerce
 Social Commerce
Implementation Issues
• The Implementation Process and Its Major Issues
– The Major Issues and Activities of Social Commerce
Implementation
– Implementation Activities
• Justification/Economics
• Security Issues
• Legal, Privacy, Cyberbullying, and Ethical Issues
• Technological Issues
• Employee-Related Issues
• Organizational Readiness and Impacts of Social Commerce
• Other Implementation Issues
• Critical Success Factors
Security and Fraud Protection in Social
Commerce
• Social Engineering and Fraud
– Social engineering*
• Social Phishing
– Phishing*
Figure 11.2 Social Engineering: From Phishing to Financial Fraud and Crime
Figure 11.3 How Phishing Is Accomplished
 Security and Fraud Protection
in Social Commerce
• Social Media Makes Social Engineering Easy
– How Hackers Are Attacking Social Networks
– Spam in Social Networks and in the Web 2.0
Environment
• Automated Blog Spam
• Defending Social Commerce Systems
– Protecting against Phishing
 Security and Fraud Protection
in Social Commerce
• Protection Against Spam
– Protecting Against Spyware
• Fraud in Social Commerce
– Fraud Protection
 Issues of Legality,
Privacy, Cyberbullying, and Ethics
• Legal Issues
– Violation of Intellectual Property and Copyright
– Video: “Ethical, Social, and Political Issues in
E-Commerce” at
youtube.com/watch?v=5iR8kJU85tU
• Privacy Issues in Social Commerce
– Privacy*
– Invasion of Privacy
– Collecting Information about Individuals
– The Web and Information Collection
– Mobile User Privacy
• Cyberbullying*
 Issues of Legality,
Privacy, Cyberbullying, and Ethics
• Ethics in Social Commerce
– Accuracy of computer-generated recommendations
– Ethics in social commerce websites and application
design
– Invasion of individuals’ privacy (e.g., by advertisers or
e-mail spam)
– Use of intellectual property, including reports and
expertise, without permission from, or payments to,
the creators
– Accuracy of user-generated content
– Use of corporate computer resources for non-work-
related purposes
 Technological Issues
• Social Commerce Systems Integration
– A Facebook Platform
• Open Graph
• Social Plug-ins
• Social Commerce Tools
– Really Simple Syndication (RSS)
– Photo sharing
– Podcasts
– Social news
– Video sharing
 Technological Issues
• Acquisition of Social Commerce Systems
– Managing the Development Process
Figure 11.4 The SC Application Development Process
 Employee-Related
Implementation Issues
• Non-Work-Related Use of Social Media
• Employee Reluctance or Resistance to
Participate
• Quality of Content and Biases of User-
Generated Content
• Data Leakage and Loss of Data
– Transferring Data
 Employee-Related
Implementation Issues
• Social Media Management at Work
– Develop Social Media Policies
– Monitor Content
– Archive Social Media Content
 Organizational Issues
and the Impacts of Social Commerce
• Improving Marketing and Sales Revenue
• Transforming Organizations and Work
– Technology and Organizational Learning
– The Changing Nature of Work
– Restructuring Business Processes
• Business process reengineering (BPR)*
• Business process management (BPM)*
– Change Management*
– How to Organize a Social Commerce Unit in a
Company
 Other Implementation Issues
• Implementation Issues in SMEs
– Examples: Small Businesses Conducting Social
Commerce on Facebook
– Video: “How to Sell on Facebook with a Store -
Step by Step Tutorial” at
youtube.com/watch?v=HQh-f1IYSg4
• Some Strategy Issues for SMEs
– Small Number of Followers
• Risk Factors and Analysis
Successes, Failures, and Lessons Learned

• A Strategy for Social Commerce

Implementation Success
• Some Policies and Guidelines
• Learning from Failures
– Example: Walmart’s In-House Social Network
• Adoption Strategies
Successes, Failures, and Lessons Learned

• Revenue Generation Strategies in Social

Commerce
– Increased Revenue and Its Benefits
 The Future of Social Commerce
• Creation of Jobs
• IBM’s Watson, Smart Computing and Social
Commerce
– Personal investment advisor
– Language translator
– Customer service
– Q&A service
– Matchmaking
– Other applications
• Conclusion