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© University of Reading 2011 www.reading.ac.uk/irc 28 February 2013 Valuation of Social Media Technologies for Internal Business Activities Aimee Jacobs, Keiichi Nakata Informatics Research Centre

Valuation of Enterprise Social Media

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Page 1: Valuation of Enterprise Social Media

© University of Reading 2011 www.reading.ac.uk/irc28 February 2013

Valuation of Social Media Technologies for Internal

Business Activities

Aimee Jacobs, Keiichi Nakata

Informatics Research Centre

Page 2: Valuation of Enterprise Social Media

Outline

• Introduction

– Overview of Social Media

– Social Media adoption in business

• Theory/Methodology

– Organisational Semiotics (OS)

• Valuation Framing Analysis

• Results & Observations

• Summary

Page 3: Valuation of Enterprise Social Media

Introduction

• Web 2.0

“a network as platform, spanning all connected devices” (O'Reilly

2007, p. 17) and

“a more mature, distinctive medium characterised by user

participation, openness and network effects.”(Musser, O’Reilly et al.

2006, p. 4)

Page 4: Valuation of Enterprise Social Media

Introduction

People are rapidly moving towards the use of “Social Media”

Percentage of rise in population for Social Networking sites of Total Online population (Nielsen_Online, 2009)

61

7865 63 67

59 64 6455

39 41

5.4

1.4

9.9 2.710.3 2.6 2.9

4.9

9.612.5

9.9

0

10

20

30

40

50

60

70

80

90

Global

Brazil

Spain Ita

ly

Japan UK US

A

France

Australia

Germany

Switzerland

Pe

rce

nta

ge O

nlin

e G

lob

al P

op

ula

tio

n

Dec-08

Dec-07

Page 5: Valuation of Enterprise Social Media

Reach and Usage by Country during Apr 2010 (Home & Work)Social Networking / Blog Sites

(Nielsen, 2010)

Country% Reach of Active

UsersTime per Person

(hh:mm:ss)

Brazil 86% 05:03:37

Italy 78% 06:28:41

Spain 77% 05:11:44

Japan 75% 02:50:50

United States 74% 06:35:02

United Kingdom 74% 05:52:38

France 73% 04:10:27

Australia 72% 07:19:13

Germany 63% 04:13:05

Switzerland 59% 03:43:58

Introduction

Page 6: Valuation of Enterprise Social Media

Employees have used SM in their personal lives and have

brought this concept to the workplace (Cook 2008)

•Features

– Participation

– Collectivism

– Creativity

– Mass collaboration

– Co-creation

“Enterprise 2.0 is the use of emergent social software

platforms within companies, or between companies and their

partners or customers” (McAfee 2006)

Social Media and Internal Business Activities

Page 7: Valuation of Enterprise Social Media

Stages of Growth Model

1. ExternalCommunications

2. Internal

Communications

3. SocialCommerce

4.SocialBusiness

5. Social

Enterprise

6..Transformation

Corporate

fanpages and

tweets

Communication

Collaboration

Connections

Users aid in

buying and

selling

New business models to meet

customer demands

Enterprise wide information and decisions by

wire

What’snext?

Evolution of SM – Stages of Growth Model Derived from Earl's Model

Page 8: Valuation of Enterprise Social Media

SM Tools and Possible Uses

SM Tool Potential Uses

Forums Internal discussions; practical and process questions, and general staff

issues (Cook 2008)

Blogs General information tool (Tredinnick 2006)

Knowledge management, business intelligence, project management

(Cook 2008)

SNS Connectivity, knowledge sharing, strengthen relationships (Cook

2008)

Wikis Commercial content management systems (Tredinnick 2006)

Knowledge management and information sharing (Jansen 2009)

Social bookmarking Classification of knowledge and information (Tredinnick 2006)

Virtual worlds Meetings, training, and socializing with colleagues (Cook 2008)

Podcasts Briefings and recordings of conference calls (Davidson 2006)

Provide information and presentations and sharing of information

(Zhang 2009)

Media Sharing Informal virtual learning or training (Cook 2008)

Page 9: Valuation of Enterprise Social Media

Challenges

• Social – IT dept threatened - less influence (Cook 2008)

– Fear of loss of control or inappropriateness (McAfee 2006)

– Interactive environment (Chui, Miller et al. 2009) (McAfee 2006)(Li 2007)

– Managers inability to understand the forces of change (Chui, Miller et al. 2009)

– Lack of understanding - create value (Chui, Miller et al. 2009)

– Perception that internal hierarchies will flatten (Ledbetter 2008)

• Technical– Integration with existing information systems (Cook 2008)

– Data retrieval and analysis may be an issue (Passant 2007)

Page 10: Valuation of Enterprise Social Media

Motivation

• Will the same challenges be applicable if the focus is on

internal business activities?

• If not, what challenges may occur?

• Validate the findings from literature review in the

context of internal business activities

Page 11: Valuation of Enterprise Social Media

Aim & Objective

• Aim

– To reveal the perceptions of the stakeholders in relation to the

benefits and shortcomings of using social media for internal

business activities in organisations

• Objective

– To understand the impact that the use of social media tools

may have on an organisation’s stakeholders using a semiotic

approach

Page 12: Valuation of Enterprise Social Media

THEORETICAL FRAMEWORK AND FOUNDATIONS

Organisational Semiotics Approach – focuses on the analysis of how information and human

communication work in organisational contexts (Liu et al. 2001) by concentrating on the relations among the IT system, business process and organisation (Liu 2000)

– semiotic concepts applied to the analysis and design of organisations and information systems (IS) through a range of methods and frameworks (Liu 2000)

• Application of OS for SM…• Organisational Containment Analysis (Jacobs, et al., 2010)• The Semiotic Framework (Jacobs, et al., 2010)• Valuation Framing

Page 13: Valuation of Enterprise Social Media

MEASUR

MEASUR is a set of Methods for Eliciting, Analyzing and

Specifying User Requirements (Stamper, 1993)

• PAM – Problem Articulation Method

• Valuation Framing - Aids in capturing user perceptions of a

technology that is or will be introduced into an organisation

Page 14: Valuation of Enterprise Social Media

Valuation Framing

• Online survey distributed

• 238 responses - 196 were valid and complete responses

• 7-point Likert scale

• 3 questions from each of the valuation aspects

Page 15: Valuation of Enterprise Social Media

Aspects Descriptions

Subsistence Physical livelihood, existences e.g. impact of the new system on job security

Classification Differentiation of people by sex, age, level of education e.g. whether the new system improve equal opportunity for all

Territoriality Impact of the new system may lead to an erosion of control, influence or loss of authority

Temporality Time division, synchronous, asynchronous e.g. issues of time zone differences

Learning Sharing knowledge, gaining awareness e.g. de-skill or more opportunity for learning new skills

Recreation Fulfilment, joy e.g. whether the job becomes more interesting or boring

Protection Fairness, rights e.g. granting file rights access to the appropriate groups of peopleand maintain the confidentiality of information

Exploitation Individual’s vs organisation interests e.g. cutbacks on operating costs with salary-cut, retrenchment or longer working hours

Association Grouping, alliances e.g. formation of teams to evoke competitiveness and sense ofbelonging of the employees

Interaction Interrelations, communications e.g. fostering collaborative attitudes in the workplace

Ten Cultural Aspects for Valuating Impacts on Stakeholders (Stamper, 1988)

Page 16: Valuation of Enterprise Social Media

Example questionsHow strongly do you agree or disagree with the following statement about job security and

the use of Social Media within your organisation?

• It will have an impact on my job security.

Strongly disagree ...........Strongly Agree

• It will affect my livelihood.

Strongly disagree ...........Strongly Agree

• It will Not cause me to lose my job.

Strongly disagree ...........Strongly Agree

How strongly do you agree or disagree with the following statements about how the use of

Social Media affects your job fulfillment?

• It increases the level of fulfilment from my job.

Strongly disagree ...........Strongly Agree

• It will make my job more interesting.

Strongly disagree ...........Strongly Agree

• It will not make my job boring.

Strongly disagree ...........Strongly Agree

Page 17: Valuation of Enterprise Social Media

Valuation Framing Results

VALUATION FRAMING FOR STAKEHOLDERS USE OF SM IN BUSINESS

Ad

min

istr

ative

(11

)

An

aly

st

(2)

Co

nsu

lta

nt

(7)

Ma

na

ge

ria

l

(5)

Ma

rke

tin

g /

Sa

les (

6)

Mid

dle

Exe

cu

tive

(8

1)

Ow

ne

r /

Fo

un

de

r (6

)

Se

nio

r

Exe

cu

tive

(4

4)

Sp

ecia

list

(4)

Te

ch

nic

al

(28

)

Tra

ine

e

(2)

Su

m

Subsistence 0.2 0.8 0.9 0.9 1.5 0.5 0.7 1.2 0.3 0.7 1.5 9.2

Classification 0.2 1.8 0.8 0.4 0.4 0 0.8 0.4 -0.8 0 0.2 4.2

Territoriality 1 0.2 1.6 1.3 1.8 1.2 1.4 1.6 1.8 1.5 2.3 15.7

Temporality 1.2 -0.3 1.7 1.3 1.9 1.3 1.7 1.6 2.3 1.3 2 16

Learning 1.2 0.8 1 2.1 1.7 1.5 1.6 1.5 1.5 1.7 2.2 16.8

Recreation 0.7 0.3 1.2 1.5 1.9 0.7 0.6 1.3 0.9 0.7 1.8 11.6

Protection -0.5 -0.5 -0.8 -0.4 0.2 -0.5 0.1 -0.3 0.4 -0.6 0.7 -2.2

Exploitation 0.8 -1.2 0.2 0.7 0.9 0.5 0.4 0.7 1.8 0.5 0.7 6

Association 0.9 1.2 1.6 1.9 1.6 1.1 1.4 1.7 1.7 1.3 2.7 17.1

Interaction 0.5 1.3 1.2 1.7 1.2 1.1 1.5 1.4 1.1 1.3 1.8 14.1

Sum 6.3 4.5 9.5 11.3 13.3 7.4 10.1 11 11.1 8.4 15.8

Stakeholders

As

pe

cts

Page 18: Valuation of Enterprise Social Media

Results & Observations

• Organisational stakeholders value the use of social media for internal business activities

• Organisational stakeholders feel the use of social media will have the highest positive impact in the aspects of association, learning and territoriality

• Organisational stakeholders feel it will negatively impact them in regards to protection

• It appears that entry level positions place the highest positive value for the use of social media for internal business activities.

• Contrary to anecdotal data, upper management appears to value the use of social media for business activities

• Limitations– Sample size– Classification of job types

Page 19: Valuation of Enterprise Social Media

Summary

Research context

Increase in social media usage among the Internet population

Gradual and ad hoc introduction of SM into business

What has been done:

Identified the value stakeholders place on SM use for internal

business activities

What is next:

Further analysis of the use of SM tools with internal business

activities to gain understanding of what social media is in

business and how best to introduce these tools

– Semi-structured interviews with organisations and customers will

be conducted for further analysis

Page 20: Valuation of Enterprise Social Media

Thank You

Q & A