Chapter Extension 14 Processing Social Capital: Facebook, Twitter, and User- Generated Content (UGC)

Chapter Extension

14Processing Social Capital:

Facebook, Twitter, and User-Generated Content

(UGC)

Q1: How do organizations use information systems to increase the value of their social capital?

Q2: How can businesses utilize Facebook?

Q3: How can businesses utilize Twitter?

Q4: What are business applications for user-generated content (UGC)?

Q5: How can organizations manage the risks of social networking and user-generated content (UGC)?

Study Questions

Copyright © 2012 Pearson Education, Inc. Publishing as Prentice Hall CE14-2

Social structure of individuals or organizations connected by some type of interdependency—friendship, kinship, common interest, financial exchange, dislike, beliefs, knowledge, etc.

Social network

Any activity an individual or organization takes to create, extend or use a social network

Social networking

An information system that facilitates interactions on a social network

Social networking information

system

Q1: How Do Organizations Use Information Systems to Increase the Value Of Their Social Capital?


Traditional business communication is unreliable

SN communication is more reliable

Viral messaging reaches more people, faster, cheaper, and more personal

Fox Lake could expand viral marketing by inducing (viral hook or bait) customers induce their friends to form a relationship with Fox Lake

Common ways companies form SN relationships with customers are groups and applications

Viral Marketing with SN


Word-of-Mouth Marketing

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Traditional business relationship you (the client) have some experience with a business,

You may express your opinions about that experience by word-of-mouth to your social network

Social Network Marketing at Fox Lake


“I just had the Sunday night lobster dinner at Fox Lake, Yummm!”

Viral Social Network Marketing Opportunity

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Viral hook: Something that induces people to share your with others

Viral Message Causes Your Friends (and Theirs) to Connect with Fox Lake


Viral marketing more powerfulif your message induces your friends (and their friends, etc.) to form a direct relationship with Fox Lake’s SN presence

Windows Live SkyDrive

Store documents in “cloud” to share with colleagues or friends

If friends want to add, modify, or delete documents, they get Office Live ID by creating a MSN Hotmail account, thus forming a direct relationship with Microsoft

Example of a Viral Hook


Asking people to do a favor for you

Frequent interactions

Increasing the Strength of Relationships

Buying your products, writing positive reviews, posting pictures using your products or services, etc.


Strength of a relationship: Likelihood that entity (person or other organization) will do something that benefits organization

SocialCapital = NumberRelationships x RelationshipStrength x EntityResourcesMost organizations today ignore value of entity assets and simply try to connect to more people with stronger relationships

This area is ripe for innovation

Connecting to Those with More Assets


Public: Anyone can find group by searching and join

Invitation: Anyone can find group by searching, but must be invited to join

Private: Group cannot be found by searching and members must be invited to join

Q2: How Can Businesses Utilize Facebook?


Private

Public

Invitation

Fox Lake could create an invitation group for each wedding to use as its wedding website

Bride invites everyone on guest list to join group

Prior to wedding, members place photos and videos of their relationship and engagement on group site

Links to gift registers; directions to Fox Lake; weather forecasts; any other information of interest to wedding attendees

Start a discussion list about bride and groom

Fox Lake Possible Use of Facebook


Strengthening Ties with Networking Groups


Social networking application —a computer program that interacts with and processes information in a social network

Survey Hurricane — users who install application on their page can survey their friends on topics of interest

New York Times News Quiz is another application

Fox Lake could create an application called “Plan Your Fox Lake Wedding” and make it part of its product offering

Using Facebook Applications


Example Social Networking (SN) Application


Meaningful applications use information in social graph. A social graph is a network of relationships.

Share a personal perspective on the world

Compel users to to come back again, and again

Address real needs, from entertainment to practical tasks

Use information in social graph

Social Useful

Expressive

Engaging

Key to Success: Make Application Compelling


Why develop an SN application rather than a website?

Answer lies with degree application requires a social graph

Does application use or benefit from social network communication? Is there a need for social collaboration? For feedback and iteration?

If not, could develop a web application

SN Application vs. Websites


Microblog—a website on which users can publish their opinions, restricted to small amounts of text, like Twitter’s 140 characters

Microblogging enables two-way publishing, worldwide

Enables users with similar interests to find each other

Q3: How Can Businesses Utilize Twitter?


•Direct contact, immediate, low cost contact with customers in mass with a link to a website

Public relations

•People look for Tweeters who offer something they value: advice, links to resources, and interesting and thought-provoking opinions

Relationship sales

•Product managers search Twitter traffic to learn the “buzz” about a product

Market research

How Can Businesses Benefit from Microblogging?


Common types of UGC

Q4: What Are Business Applications For User-Generated Content (UGC)?


Common UGC Applications


Inappropriate content

Mutinous movemen

ts

Q5: How Can Organizations Manage the Risks of Social Networking and User-Generated Content?

Unfavorable reviews

Junk and crackpots

Dependency on SN vendor Risks


Q1: How do organizations use information systems to increase the value of their social capital?

Q2: How can businesses utilize Facebook?

Q3: How can businesses utilize Twitter?

Q4: What are business applications for user-generated content (UGC)?

Q5: How can organizations manage the risks of social networking and user-generated content (UGC)?

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Chapter Extension 14 Processing Social Capital: Facebook, Twitter, and User- Generated Content (UGC)