Social Computing in Business

ADM 1370 Q Applications of Information Technology for Business

Presented by: David R. Hanssen, MAcc

Student or professor materials created for this course (including presentations and posted notes, labs, case
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© 2022 David R. Hanssen | ADM1370

Attribution Notice

This slides were prepared by Dr. Umar Ruhi and have been
adapted by David R. Hanssen for use in ADM1370.

© 2022 David R. Hanssen | ADM1370

Agenda

• Administration and Questions

• Social Media & Big Data
– Challenges of Big Data
– Social Network Analysis
• Social Media Strategy
– Social Commerce
– Strategic, Objectives, Tactics
– Social Media Metrics
– Social Media Selection Criteria
– Social Media Key Success Factors

© 2022 David R. Hanssen | ADM1370

Administration and Questions

• Wiki Assignment Outline Posted

• Tutorial #1 to be recorded and posted by Wednesday, next week
Wiki Tutorial #2
• TA office hours for Wiki Assignment to be posted soon
• Any questions about the course?

© 2022 David R. Hanssen | ADM1370

Social Computing in Business
Data, Analysis, and Strategy

© 2022 David R. Hanssen | ADM1370

Big Data

The Size of Data The Speed of Data

• In 2015, Instagram at 400,000,000 users • Over 500,000,000 tweets sent per day
and 40,000,000,000 photos. – ~ 20,000,000 tweets per hour
– ~ 347,000 tweets per minute
– ~ 6,000 tweets per second

With so much data already out there, and so much being created, how do we
effectively use it?

© 2022 David R. Hanssen | ADM1370

Data in Many Forms: Structured vs Unstructured Data

• Structured data refers to information with a high degree of organization, such that
inclusion in a relational database is seamless and readily searchable by simple,
straightforward search engine algorithms or other search operations
• Unstructured data is essentially the opposite
• The lack of structure makes compilation and analysis a time and energy-consuming task.

Unstructured Structured

Animal Type Mood

Dog Pug Happy

© 2022 David R. Hanssen | ADM1370

Big Data Challenges
Challenges to overcome: The 4 Vs

© 2022 David R. Hanssen | ADM1370

Social Media & Big Data

Traditional Approach Big Data Approach

Structured & Repeatable Analysis Iterative & Exploratory Analysis

IT
Business Users
Delivers a platform to
Determine what enable creative
question to ask Top- Bottom- discovery
Down Up
Approach Approach

IT Business Users
Structures the data Explores what questions
to answer that could be asked
question

Monthly sales reports Brand sentiment

Profitability analysis Product strategy
Customer surveys
Structured vs. Exploratory
© 2022 David R. Hanssen | ADM1370
Application of Big Data: Social Network Analysis (SNA)

• The mapping and measuring of

relationships and flows between
people, groups, organizations,
computers, or other information or
knowledge processing entities.

• The nodes in the network are the

people and groups, whereas the
links show relationships or flows
between the nodes.

• SNA provides both visual and

mathematical analyses of relationships

© 2022 David R. Hanssen | ADM1370

Social Network Analysis Example

Example of SNA with Game of Thrones:

https://bl.ocks.org/mohdsanadzakirizvi/
raw/6fc325042ce110e1afc1a7124d0871
30/

Source Data:
https://www.macalester.edu/~abeverid/
thrones.html

© 2022 David R. Hanssen | ADM1370

Social Network Analysis Example

© 2022 David R. Hanssen | ADM1370

From Data to Wisdom

Connectedness

Joining of
Wholes
Social Media helps us Wisdom
collect data and
Understanding Principles and
Formation of identify relationships. Applying Knowledge
a Whole Knowledge

Connection of Understanding Patterns in Data and

Parts Information
Information

Identifying Relationships between

Gathering of Data Items
Parts Data

Understanding
Researching Absorbing Doing Interacting Reflecting

© 2022 David R. Hanssen | ADM1370

Social Media Strategy

Social Media is always in a flux due to three factors:

• End-Users (Demographics, Changing Preferences, …)
• Use Cases (Sharing with Friends, Broadcasting to Public, Purchasing
Products, …)
• Functionality (Chat, Status, Images, Profiles, Permanence, …)

Implication: Strategies and tactics used to manage social media have

to constantly adapt.

© 2022 David R. Hanssen | ADM1370

Review: Adopting a Social Business Aptitude:

Interact with
• Maximize the potential of social media by Platform, User
Users, Big Data
using it across business functions. Data
Analysis
• Rather than using social media as an
inside-out promotional medium, leverage
the outside-in conversations as well.
• Harness big social data to glean insights for
product research, competitive analysis and
prediction of customer needs.
• Update corporate governance policies and
guidelines. New Product or
Greater User Marketing Ideas
Engagement, Improved
Performance (e.g. Sales)

Summary: Have an “Integrated Social Media” (ISM) Strategy

© 2022 David R. Hanssen | ADM1370

Social Commerce

The use of social computing by businesses in innovative ways:

• Delivery of electronic commerce activities and transactions through social

computing.

• Social interactions and user contributions allow customers to participate

actively in the marketing and selling of products and services in online
marketplaces and communities.

• Individuals can collaborate online, obtain advice from trusted individuals,

and find and purchase goods and services.

© 2022 David R. Hanssen | ADM1370

Thinking Strategically

• Although we want to be flexible and open to opportunities that

come our way (e.g. social media trends leading to new product
ideas), we also want to be methodological and strategic in how we
approach the future.
• Let’s consider some frameworks for planning our use of social
media:
–PDCA Framework
–Goals to Metrics Strategy Formulation Framework
–Honeycomb Framework for Social Media Selection
–S.O.C.I.A.L Social Media Success Framework

© 2022 David R. Hanssen | ADM1370

Social Media Strategy: PDCA Framework
Strategy needs to be formulated in terms of
objectives, tactics, and metrics. Corporate
governance issues such as policies and
guidelines need to be considered.
Components of a Social Media Strategy:
• Objectives (Measurable Outcome)
• Tactics (Tools or Approaches Used)
• Metrics (Specific Measurements)
It is a never-ending cycle because of the
changing nature of social media sites and
services, and how we use them.
PDCA Framework:
Plan: Create a social media strategy.
Do: Implementing tactics and campaigns aligned
with the social media strategy.
Check: Regular (daily, weekly, monthly, quarterly, etc.)
review of metrics created as part of the strategy
to determine if business ROI in social media has
been sufficiently achieved or not.
Act (or Fine-tuning the social media strategy, tactics,
Adjust): plans for campaigns, and even potentially
refining or changing metrics or how
measurements are performed.
© 2022 David R. Hanssen | ADM1370
 From Goals to Metrics

• Goal/Mission: A broad idea of what

you want to achieve.

• Objective: Measurable outcome

related to your goal.

• Strategy: General approach to

achieving objective.

• Tactics: Specific actions that realize

the objective.

• KPI/Metrics: Specific measurements

that tell you how you are performing.

© 2022 David R. Hanssen | ADM1370

 From Goals to Metrics – Non-Profit

• Goal/Mission: Promote entrepreneurship

and local businesses.

• Objective: Increase the percentage of new

startups lasting longer than 1 year by 10%

• Strategy: Create awareness of new business

grants and funding.

• Tactics: Create mailing list targeted to new

business owners directing them to open
grant applications.

• KPI/Metrics: Follow-up rate of new business

owners, number of business grant
applications submitted

© 2022 David R. Hanssen | ADM1370

Discussion: University Education

How to do approach your University

education?

What is (are) your:

• Goal/Mission:
• Objective:
• Strategy:
• Tactics:
• KPI/Metrics:

© 2022 David R. Hanssen | ADM1370

Social Media Strategy: Components – Objectives & Tactics

Objectives:
• Link to corporate strategy Classic For-Profit Objectives:
• Ways to extend brand’s strengths online • increase sales
• decrease expenses
Customers:
• Target demographic group and focus
• improve ROI
• Assess type of users

Sharing: Social Objectives:

• What social tools will be used • Greater customer engagement (word
• What type of content will be shared of mouth)

Who: • Influence (public policy or trend

• Who will lead the effort setting)
• Advocacy (Generating attention over
Brand Alignment: social or environmental issues)
• Guidelines, Tone of voice, Media usage

Monitor:
• Listening to customers, Activities monitoring,
Measuring success

© 2022 David R. Hanssen | ADM1370

Social Media Metrics

Example of Social Media Strategic

Metrics: Customer Dialog Metrics

Conversation Reach: How many

users have seen your social media?

Audience Engagement: How active

is your audience with your social
media approach?

Share of Voice: Your ownership of

the market vs. your competitors.

Dialog provides the basis for building

awareness and word of mouth.

© 2022 David R. Hanssen | ADM1370

Social Media Strategy: Criterion-based Selection of Tools
• Recall that there is a wide variety
of possible social media types that
exist.
• An organization’s choice (or
development) of social media
should be governed by what it is
trying to achieve.
Relationship Networks:
• Facebook, LinkedIn, Twitter
Media Sharing:
• Flickr, Instagram, YouTube, Vimeo
Online Reviews:
• UrbanSpoon, TripAdvisor, Airbnb, Amazon
Discussion Forums:
• Quora, Digg, Reddit
Social Publishing:
• Facebook Notes, LinkedIn Pulse, Medium, Tumblr, Blogger
Social Bookmarking:
• Mix.com, Pinterest, Flipboard
Interest-Based Networks:
• LinkedIn and Facebook Groups, GoodReads, HelpfulGardener
Social Commerce:
• Etsy, Polyvore, Airbnb
© 2022 David R. Hanssen | ADM1370
 Honeycomb of Social Media (Functionality & Implications) (Kietzmann et al., 2011)

Social Media Strategy: Criterion-based Selection of Tools

© 2022 David R. Hanssen | ADM1370

 Example: LinkedIn – Identity & Groups

Personal information required

to form the platform’s user
“identity”

Different “groups” can have

different access to the user's
identity.

© 2022 David R. Hanssen | ADM1370

Discussion: Honeycomb Framework

How would you describe Twitter vs.

Facebook using the Honeycomb
framework, in terms of:

• IDENTIY

• RELATIONSHIPS

© 2022 David R. Hanssen | ADM1370

Strategic Social Media Management:
Key Success Factors
Strategy: A comprehensive, company-wide social media strategy, and all functions and
business units adhere to a uniform set of strategic directives.
Organization: Employ dedicated FTEs in different functions and set aside budgets specifically for
social media activities.

Criteria-based Select appropriate social media platforms based on clear criteria to match social
platform selection: media strategy.

Integration: Integrate and leverage social media activities along the entire value chain.

Awareness: Created a significantly higher awareness for social media throughout the
company.

Leadership: Make social media activities a priority for top management and ensure senior
executives are highly involved.

© 2022 David R. Hanssen | ADM1370

To-Do and Coming Up (for Lecture 6):

To-Do: Coming Up:

• Carefully review Wiki assignment outline Web 2.0 Fundamentals

for requirements. Start if you are
• Web 1.0 Vs. 2.0
comfortable, otherwise wait for tutorial
video to be posted. • Features of Web 2.0
• Web Applications
• Enterprise Applications
• Technologies (Wikis, RSS, Widgets,
Tagging, Blogs)

© 2022 David R. Hanssen | ADM1370