chapter extension 14 processing social capital: facebook, twitter, and user- generated content (ugc)
TRANSCRIPT
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
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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?
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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
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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
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“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
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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
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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.
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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
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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?
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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
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Strengthening Ties with Networking Groups
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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
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Example Social Networking (SN) Application
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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
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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
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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?
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•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?
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Common types of UGC
Q4: What Are Business Applications For User-Generated Content (UGC)?
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Common UGC Applications
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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
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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)?
Active Review
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