CS 1032 Ch9 Social Networking, e-Commerce, and the Web

social media (SM)

-use of IT to support content sharing of content among networks

-enables communities of practice

-people related by common interest

social media information system (SMIS)

IS for sharing content among network of users

disciplines in social media

psychology, operation theory, marketing, MIS, computer science, sociology

three SMIS roles

social media providers, users, communities

social media providers

-facebook, google+, linkedin (80% 35 yrs+), twitter, instagram, and pinterest (70% female) provide platforms

-attracting, targeting demographic groups

users

individuals and organizations

-more than 73% of people with internet access use SM

-40% use SM via mobile phones

-many users are a particular demographic

-77% of Fortune 500 orgs maintain a twitter account & 70% have facebook

communities

mutual interests that transcend familial, geographic, and organizational boundaries

5 components of SMIS

-hardware

-software

-data

-procedures

-people

(same as all IS)

hardware

-desktops, laptops, mobile devices

-providers host the SM usually in cloud servers

software

browsers and client applications to communicate with users (iOS, Windows, Android)

-many providers use a noSQL DBMS to process data

-many providers invest in analytics

data

-content data is user-generated content provided by users

-connection data is data about relationships (differentiates SMIS from website applications)

-SM providers store and retrieve SM data on behalf of users

procedures

orgs develop procedures for creating content, managing user responses, removing objectionable content, etc.

people

staff must be trained on SMIS user procedures and the org's social networking policy

strategy determines

Value chains, which determine business processes, which determine SMIS requirements

SM fundamentally changes

balance of power among users, their communities, and orgs

social CRM

a dynamic, SM-based CRM process

-each customer crafts relationship (blobs, FAQs, etc)

-customers search content, contribute reviews and commentary, as questions, create user groups, etc

-not centred on customer lifetime value

SM and customer service

-relationships emerge from joint activity, customers have as much control as companies

-product users freely help others solve problems

-selling to/through developer networks most successful (Microsoft MVP)

-peer-to-peer support risks loss of control

SM and inbound and outbound logistics

-numerous solutions and rapid evaluation fo them

-better solutions to complex supply chain problems

-facilitate user created content and feedback among networks needed for problem solving

-loss of privacy

SM and manufacturing and operations

improve communication channels w/in org. and externally w/ customers, design products, develop supplier relationships, and improve operational efficiencies

-crowdsourcing, business-to-consumer (B2C), business-to-business (B2B), internal

crowdsourcing

employing users to participate in product design or product redesign

business-to-business (B2B)

-sales between companies

-youtube channel to post videos of product reviews and testing, factory walk-throughs

internal

use SM to improve communication w/in the org

SM and HR

-employee communications using internal personnel sites (MySite and MyProfile in SharePoint)

-finding employee prospects, recruiting candidates, candidate evaluation

-place for employees to post their expertise

-risks: forming erroneous conclusions about employees, becoming defender of belief or pushing unpopular message)

capital

investment of resources for future profit

physical capital

produce goods and services (factories, machines, manufacturing equipment)

human capital

human knowledge and skills investments

social capital

social relations w/ expectation of marketplace returns

value of social capital

number of relationships, strength of relationships, and resources controlled

we benefit in 4 ways

-info (opportunities, alternatives, problems, & other important factors)

-influence (decision makers and peers)

-social credentials (being linked to network of highly regarded contacts)

-personal reinforcement (prof. identity, image & position in org/industry)

progressive organizations

-presence on facebook, LinkedIn, Twitter and other SN sites

-encourage customers and interested parties to leave comments

-risk: excessively critical feedback

strength of a relationship

likelihood other entity will do something that benefits your org

-positive reviews, post pictures using products or services, tweet about product releases

-asking you to do them a favour

-frequent interactions

social capital =

# of relationships x relationship strength x entity resources

-huge network of people w/ few resources less valuable then smaller network w/ substantial resources

-resources must be relevant

-most ignore value of entity assets

hyper-social organization

use SM to transform interactions w/ customers, employees, and partners into mutually satisfying relationships w/ them and their communities

how do companies earn revenue from SM

hyper-social org, You Are the Product, monetize

revenue models for SM

advertising, pay-per-click, use increases value, freemium (offers users a basic service for free then charges premium for upgrades), sales

average click-through rate

for smartphones - 4.12%

for PCs - 2.39%

conversion rate

frequency someone clicks on and makes a purchase, "likes" a site, or takes some other action desired by advertiser

how orgs can address SMIS security concerns

-develop and publicize a SM policy

-Intel's Three Pillars of SM Policies

1. disclose (be truthful, transparent, & yourself)

2. protect (don't tell secrets, slam the competition, or overshare)

3. use common sense (add value, keep it cool, admit mistakes)

managing risk of inappropriate content

-user-generated content (UGC)

-problems from external sources (junk & crackpot contributions, inappropriate content, unfavourable reviews, mutinous movements)

internal risks from SM

-threats to info security

-increased org. liability

-decreased employee productivity

E-commerce

buying and selling of goods and services over public and private computer networks

implications of E-commerce

technology perspective

-defines the need for additional infrastructure

management & gov perspective

-coordination for smooth bus. operations

-security must be enables

merchant companies

-take title to the goods they sell

-buy goods and resell them

-sell services that they provide

-B2C, B2B, B2G

Business-to-consumer (B2C)

sales b/w a supplier and a retail customer

business-to-government (B2G)

sales b/w companies and governmental organizations

nonmerchant companies

-arrange for the purchase and sale of goods w/out ever owning or taking title to those goods

-sell services provided by others

-auctions, clearinghouses, exchanges

e-commerce auctions

match buyers and sellers by using an e-commerce version of a standard auction

clearinghouses

provide goods and services at a stated price and arrange for the delivery of the goods, but they never take title

electronic exchanges

match buyers and sellers

-the business process is similar to that of a stock exchange

benefits of e-commerce

-leads to greater market efficiencies

-disintermediation

-improves flow of price information

-sellers have access to better info about what customers will pay

-price elasticity

disintermediation

removal of intermediaries b/w parties

-higher revenues for manufacturers

-lower price for buyers

-if all intermediaries are cut, it will be disruptive to Cdn economy

-reintermediation has occurred in some situations (trivago, expedia, etc)

price elasticity

how much demand rises/falls w/ changes in price

-auction sites helpful for this

-experiments w/ customers

challenges of e-commerce

channel conflict, price conflict, logistics expense (small orders), customer service expense, showrooming (tries product in-store, purchases online), taxation (shipping across borders)

"Click farms"

form of click fraud

-large group of low-paid workers hired to click on paid advertising links for the click fraudster

-attracts annoying spam accounts

big data = big money

-personal data illegally accessed by criminals and sold on the black market to other nefarious characters

-legally accessed by companies and sold to other companies

steps to remove/mask digital footprints

-clearing cookies

-encrypting email

-avoid using real name

-use virtual networks to make IP address