Weeks 7 and 8: Social Media

Information Systems; Digital Marketing

CB2500 Information Management

Smart Banking (BI) Smart IS Auditing (ISA)

Smart e-Services (ISSN) Smart Global Business (GBSM)

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 (Reminder) Week 7 Bi-Weekly
Lecture Quiz
CB2500 Information Management

• Available on Canvas till end of Sun

• Cover Lectures 5-6

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 (Reminder) Interim Report 2
CB2500 Information Management

• Interim report 2 due on Sun

• You need to demonstrate that you know how
to use Facepager and SAS Enterprise Miner to
derive insights from a Facebook page
• The Facebook page should contain English
text (100+ comments)
• Screenshot of SAS EM Terms Window in
Appendix
• One student per group submits a report
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 What are we talking about today?
CB2500 Information Management

Video URL: https://www.youtube.com/watch?v=IQfZPsCVbTU

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 Study Questions /
Intended Learning Outcomes
CB2500 Information Management

Q8-1: What is a social media information system

(SMIS)?
Q8-2: How do SMIS advance organizational strategy?
Q8-3: How do SMIS increase social capital?
Q8-4: How do (some) companies earn revenue from
social media?
QCE11-1: How do organizations develop an
effective SMIS?
QCE11-2: What is an enterprise social network
(ESN)
QX1: What is Digital Marketing? 5
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 Q8-1: What Is a Social Media
Information System (SMIS)?
CB2500 Information Management

• Social media information system (SMIS)

• Use of IS to support sharing content among networks
of users
• Enables communities, tribes, or hives
• People related by a common interest

e.g. discussion forum, YouTube, Facebook, Line, etc

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 Three SMIS Roles
Attract and target at
different demographics
Social
groups, e.g. Facebook,
CB2500 Information Management

Media
X, Instagram, YouTube Providers

Individuals or
organizations  build
social relationship with
SMIS
customers Share mutual interests

Com-
Users
munities

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 The Use of Social media
CB2500 Information Management

CityU Department of Information System 8

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 CityU
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 What about Hong Kong
CB2500 Information Management

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 What about Hong Kong
CB2500 Information Management

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 What about Hong Kong
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 Caveat: Organization can be both
users and providers of social media
CB2500 Information Management

• Example: Facebook
– It is a provider
– It is also a user of, for example, Twitter

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 Social Media Application Providers
CB2500 Information Management

– Company page free on Facebook. However, there

could be additional services for a fee!
• For example, advertisement campaign

– Furthermore, there are costs to develop,

implement, manage social networking procedures

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 CB2500 Information Management

SMIS IS
NOT FREE…

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 Five Components of SMIS:
What could you think of?
CB2500 Information Management

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 Five Components of SMIS:
Overview
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 Q8-2: How Do SMIS Advance
Organizational Strategy?
CB2500 Information Management

SMIS is a type of IS!

• Social media is by nature, dynamic! →

• Unstructured business process →
• Unstructured value chain →
Social media fundamentally changes balance of
power among users, their communities, and
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organizations 18
 Social Media &
Sales and Marketing Activity
CB2500 Information Management

• Social Customer Relationship Management

(CRM)
• Each customer (actively) crafts relationship,
no longer in a passive position

Risk: Loss of credibility and poor PR

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 Social Media &
Sales and Marketing Activity
CB2500 Information Management

• Social Customer Relationship Management

(CRM)
• Each customer (actively) crafts relationship,
no longer in a passive position

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 Social Media &
Customer Service
CB2500 Information Management

• Product users are amazingly willing to help each

other solve problems, with or without pay.

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 Social Media &
Customer Service
CB2500 Information Management

• Product users are amazingly willing to help each

other solve problems, with or without pay.

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 Social Media &
Customer Service
CB2500 Information Management

• Any downsides?
• Peer-to-peer support risks loss of control

• For example, customers may recommend

competitors’ products in a focal business’ support
forum… - negative comments
- unreal comments
- competitors attack
→ Recommend competitors’ products

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 Social Media &
Inbound and Outbound Logistics
CB2500 Information Management

• Numerous solution ideas and rapid

evaluation of them →

• Better solutions to complex supply chain

problems

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 CityU
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 Social Media &
Inbound and Outbound Logistics
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• Any downsides/risks?

• 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 &
Manufacturing and Operations
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• Externally with customers

– Crowdsourcing: product (re)design

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 CityU
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 Social Media &
Manufacturing and Operations
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• Externally with customers

– Promote brand awareness in business-to-consumer
(B2C)

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 Social Media &
Manufacturing and Operations
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• Internally within the organizations

– Example: enterprise social networking service

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 Social Media &
Manufacturing and Operations
CB2500 Information Management

• Internally within the organizations

– Example: enterprise social networking service

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 Social Media &
Human Resources
• Finding employee prospects, recruiting
CB2500 Information Management

candidates, candidate evaluation

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 Social Media &
Human Resources
• Internal communication
CB2500 Information Management

• In addition to Yammer, there are MySite and

MyProfile in SharePoint
– E.g., Looking for internal experts

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 Social Media &
Human Resources
• Internal communication
CB2500 Information Management

• In addition to Yammer, there are MySite and

MyProfile in SharePoint
– E.g., Looking for internal experts

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 Social Media &
Human Resources
• Any downsides/risks?
CB2500 Information Management

• Forming erroneous conclusions about employees

• Becoming defender of belief or pushing unpopular

management message

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 Summary: Social Media in Value
Chain Activities
CB2500 Information Management

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 Q8-3: How Do SMIS Increase
Social Capital?
CB2500 Information Management

• Social capital as a combination of

– Social network size
– Relationship strength
– Resources possessed by those in the network

Capital: investment of resources for future

profit
Social capital: investment in social
relationship with expectation of returns in
market place

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UReply Q2

Why is Social Capital

Important to Business?

CB2500 Information Management

Smart Banking (BI) Smart IS Auditing (ISA)

Smart e-Services (ISSN) Smart Global Business (GBSM)

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 Value of Social Capital: Information
CB2500 Information Management

• Opportunities, alternatives, problems, and

other factors important to professionally
and personally

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 Value of Social Capital: Influence
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• Influence decision makers who are critical

to our success

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 Value of Social Capital:
Social credentials
CB2500 Information Management

• Linked to a network of highly regarded

contacts

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 Value of Social Capital: Reinforcement
CB2500 Information Management

• Connections reinforces personal

professional identity, image, and position in
organization or industry

Wow, you know XXX!

You must also be
good at IM!

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 Network
Size
CB2500 Information Management

Social
Capital
Tie
Resource
Strength

Generalize from Individual to Organizations?

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 Using Social Networking to Increase
the Number of Relationships
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 Using Social Networks to Increase
the Strength of Relationships
CB2500 Information Management

• Strength of a relationship
• Likelihood that the other entity will do something
that benefits your organization
Benjamin Franklin

If you want to strength your

relationship with someone
(in power), please ask him
to do you a favor.

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 Caveat
CB2500 Information Management

• Relationship may fade out

• Social capital could depreciate

• But…

Continuing and frequent interactions would

strength relationships and increase social
capital

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 Using Social Networks to Connect
to Those with More Resources
CB2500 Information Management

• The number and strength of relationships

matter
– But they are not the only factors
• Resources must be relevant
– College students may possess more resources
relevant to Nike but not BMW dealership

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 After all…
CB2500 Information Management

Social Capital = Number of Relationships X

Relationship Strengths X
Resources

Huge network of people with few

resources less valuable than smaller
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network with substantial resources 48
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