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HYPERTECH
Mobile Technology Business Intelligence Social Media
About
MAGAZINE
Hypertech E-Magazine is a compilation of research on Emerging Technologies done by students of the Information Technology course of the Ateneo Graduate School of Business. For this particular issue, focus is on 3 technologies which are generating a profound impact on the way business will be done in the next 5 years. ese are:
e papers point to an in exion point in operating systems and hardware of mobile devices by the year 2013 overtaking desktop PCs. Big data explosion also point to the boom in business intelligence and data mining analytics algorithms. e rise of social media as a fourth channel for advertising and marketing campaigns will have repercussions on the way businesses will promote product and brand awareness and in the marketing mix. Each topic discusses the corresponding Strength-Weakness-Opportunities- reat (SWOT) Analysis of the respective technologies. e applications to business, education, government, and various industries are then discussed as may be appropriate with the corresponding cost/bene t analysis. Finally, the nation-building and ethical implications of the emerging technologies are brought forward to provide fresh insights and good governance approaches.
GROUP1
Paul Inso Althea A. Gallardo Josias F. Jorgio Bill Santillan
B. Trends in the Technology Gartner, Inc., the worlds leading information technology research and advisory company predicts that by 2013 mobile phones will overtake PCs as the most common web access device worldwide and that by 2015 over 80 percent of the handsets sold in mature markets will be smartphones. e implications for IT is that the era for PC dominance with Windows as the single platform will be replaced with a post-PC era where Windows is just one of a variety of environments IT will need support. e market for tools to create consumer and enterprise facing apps is complex with well over 100 potential tools vendors. Currently, Gartner separates mobile development tools into several categories. For the next few years, no single tool will be optimal for all types of mobile application so expect to employ several. Six mobile architectures native, special, hybrid, HTML 5, Message and No Client will remain popular. However, there will be a long term shi away from native apps to Web apps as HTML5 becomes more capable. Nevertheless, native apps won't disappear, and will always o er the best user experiences and most sophisticated features. Developers will also need to develop new design skills to deliver touch-optimized mobile applications that operate across a range of devices in a coordinated fashion.
(http://www.gartner.com/newsroom/id/2209615)
Android became dominant s martphone OS and Samsung and HTC bene ted the most from Android success (Q4 2011)
C. SWOT Analysis
virtual tours and applications for mobile devices that allow the latter. [amobee], the company defining mobile advertising, today announces the launch of [amobee] PULSE Create, a mobile ad creation platform that enables advertisers and publishers to create innovative rich media and 3D mobile ad campaigns. [amobee] PULSE Create marks the first of many: it is the rst full-scale creative ad platform that is fully integrated with [amobee] PULSE for Publishers, which gives publishers the unique ability to measure performances of rich media and 3D mobile ad campaigns. (http://www.thetechnologycafe.com/create-rich-media-and-3d-mobile-ads-easily-with-amobee-pulse-create/)
Mobile technology in medicine is also a highly emerging trend. ere are 4.6 billion of them in the world as of February 2010. Because of that, some scientists want to use a chip that can be embedded in cell phones to detect any dangerous chemicals that might be in the air, which would subsequently help them map their source and cause. e sensors are made of silicon and change color when theyre exposed to certain chemicals, in e ect giving your cell phone a high-tech nose. Its a brilliant way to harness an existing network for medical gain. Advances in phone technology have drastically changed the way we communicate on the go, but while most people think of smartphones primarily as ways to send text and video messages, medical professionals are using them to get a look at your health records. Using phones to download, transmit, and organize medical records can greatly reduce clerical errors and make it easier for doctors to learn your medical history quickly and easily.
(http://techmedicus.com/trends-in-mobile-medicine)
Mobile technology is highly used by radiologists. ey rank 5 in the USA for medical professionals, who use mobile technology as noted in a study conducted by Jackson and Coker Associates study. A good example for this is the ResolutionMD application. Beyond reliability for diagnosis and patient impact, research with our luminary partners Mayo Clinic, Yale University and SUNY reveals that ResolutionMD on mobile devices is making life on-call
livable for radiologists decreasing drive time to hospitals, time away from families and lessening the grind of long shi s).
GE Healthcare has released a mobile device called Vscan. is device costs $8,000 a unit. Dr. Topol, a cardiologist in San Diego, carries with him instead a portable ultrasound device roughly the size of a cellphone. When he puts it to a patient's chest, the device allows him to peer directly into the heart. e patient looks, too; together, they check out the muscle, the valves, the rhythm, the blood ow. "Why would I listen to 'lub dub' when I can see everything?" Dr. Topol says. Another new development for mobile technology in medicine is the application called the Mobile MIM system. is lets doctors use their iPhones to view images from sophisticated hospital tests such as MRIs and CT scans. Developed by MIM So ware Inc., of Cleveland, the program reproduces the scans with enough clarity and delity that physicians can make diagnoses via smartphone. Mobile technology in education is starting to make waves. In a study conducted by Stanford University countries such as India, Palestine, Mexico are adopting the Pocket School System. is enable students access to educational applications and learn from home without having to take the risk of traveling miles to school every day. ere are also applications for the blind which enables them to listen to educational material through the mobile device. Personalized learning environments-Games, apps, and so ware that automatically sca old instruction to meet students' ability levels are becoming increasingly common. For example, Lexia Learning's Reading Core5, which is aligned with Common Core State Standards, sca olds comprehension questions at the end of each activity. Story creationUsing voice recordings, animations, and libraries of photos and drawings, numerous apps now allow students to create and tell their own stories in digital formats. Applications like Toontastic, created by Stanford University's graduate school of education and Zeum, San
Francisco's Children's Museum, allow students to choose from a set of di erent scenes to cra a story with a con ict, challenge, climax, and resolution. e PlayTime eater app, created by a company called Make Believe Worlds, allows students to create a virtual puppet show while recording their voices as the dialogue. e app records the show so that it can be saved and played back. Research supports the idea that engaging both children and their parents in reading can increase the amount of learning a child takes away from a book, and the same holds true for e-books and other electronic media. Several resources are helping increase those moments of connection for parents and students in a variety of ways, including the Pocket Literacy Coach, which sends text messages with ideas for literacy activities to parents' phones.
(http://www.edweek.org/dd/articles/2013/02/06/02reading.h06.html)
Whatever is the industry, mobile technology can be applied. e possibilities are endless and the bene ts are countless for organizations.
c. Financial Calculations:
He added that trends in use raise some interesting issues. Carrying active cell phones provides a mechanism for surveillance and tracking by third parties. As we increase the use of our mobiles we become more vulnerable to receive a new form of spam - the junk text message. He believes this is becoming an increasing problem.
(http://www.ccsr.cse.dmu.ac.uk/resources/general/ethicol/Ecv13no5.html)
Prof. Rogerson added that using cell phones (even with hands-free facilities) whilst driving presents new dangers. A driver's concentration is diverted to the conversation with the person on the phone. is is di erent from conversation with in-car passengers as in this situation both driver and passenger are aware of road conditions and temper their conversation accordingly. Given the "street value" of cell phones, users are increasingly at risk from mugging when using phones in public spaces.
e use of mobiles in public spaces raises another issue. Such conversations intrude into others "quiet spaces" and infringe on the privacy of others. is has led to a new concept of "mobile free zones" on trains. Accoding to Rogerson, there is increasing pressure for us to remain in mobile contact when away from the o ce. e electronically-enabled culture of instantaneous response to the demands of employers and clients has become the norm. He believes we can no longer leave work at the o ce.
(http://www.ccsr.cse.dmu.ac.uk/resources/general/ethicol/Ecv13no5.html)
GROUP2
Al McWalter D. Lim Dunstan Dy Jaja Gerona Angela Jenn Moreto
BUSINESS INTELLIGENCE
Business Intelligence is a set of theories, methodologies, process, architectures, and technologies that transforms raw data into useful information. (Wikipedia)
INTRODUCTION
TOP 5 CHALLENGES OF BI
2. Reporting
- A program that builds infrastructure for strategic reporting to serve the strategic management of a business, not operational reporting. - Involves: o Data Visualization o Executive Information System o OLAP
2. Lack of BI Readiness
- ere are a few questions your organization should be able to answer to best gauge the conditions for a successful implementation. Does your organization have and consistently use a framework for prioritizing and managing BI investments? To what level do you know the quality of your data? Do people within the organization possess necessary BI skills and methodology? Can your organization identify and address risk and change management associated with a BI initiative?
3. Collaboration Platform
- A program that gets di erent areas to work together through data sharing and electronic data interchange
4. Knowledge Management
- A program to make the company data driven trough strategies and practices to identify, create, represent, distribute and enable adoption of insights and experiences that are true business knowledge.
3. Lack of Direction
- ere may be multiple data warehouses, BI environments and user communities within an organization over time, so coordination is in order to prevent rogue management. To prevent multiple unintegrated BI systems, data repositories and versions of the truth, make sure an overarching strategy/roadmap and a BI data architecture plan are in place.
Source: WIKIPEDIA
4. Lack of Execution
-BI strategy and tools are crucial, but so is the follow-through. is can cause, among other problems, issues for end users with ease of use, response time and accuracy, report processing and dashboard moti cations, and delivery on functionality. Successful, repeatable BI execution requires su cient and sustained funding and support, internal or external BI sta , and use of BI-speci c development methodology.
can make a world of di erence. In most successful organizations, the executive team realizes that in order to keep the nger on the pulse you must have a near real-time exposure to stats, scorecards, and other meaningful measures like mobile devices.
5. Lack of BI Impact
- e time to develop business bene ts is at the very start of the BI lifecycle. e requirements-gathering process for BI must connect requirements for information to its use, users, KPIs and strategic objectives in the business process. Source:
http://www.information-management.com/resource-center/?id=10021450
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DATA ACQUISITION
Business Analytics revolve around the acquisition, presentation and data enrichment or analytics. As such the de nitions of these are vital. e de nitions are the following: 1. Data - Items that are the most elementary descriptions of things, events, activities, and transactions 2. Information organized data that has meaning and value 3. Knowledge processed data that conveys understanding or learning, applicable to a problem or activity Starting with data, the following acquisition can be collected manually or via instrument. Quality is critical in this process. is can be determined by usefulness as listed: 1. Contextual data quality 2. Intrinsic data quality 3. Accessibility data quality 4. Representation data quality ese are essential since data acquisition and can run into a lot of problems. Among which are presented at the table below (Table 5.1).
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Given that data must be cleansed when populating data warehouse. In addition, data integrity issues such as uniformity, completeness, and conformity must be checked essentially before storage or subsequent analysis. Upon reaching data integration, access to multiple sources would be required. is is o en enterprise-wide. Usually problem arises when data is disparate and heterogeneous. is is when XML languages are not only essential, but standardize language. Extensible Markup Language is a language format that is both readable to man and machines. It is simpli ed and straight-forward. External data sources can be rooted from the web or commercial databases if not found within the company. Commercial databases are specialized databases that sell them.
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DATA MINING
is is a method that organizes and employs information and knowledge from databases. It uses statistical, mathematical, arti cial intelligence, and machine-learning techniques. Furthermore, it can be automatic and immediate if the applications are in place. It uses patterns on models, be it simple, intermediate or complex. It is centered on hypotheses and is iterative. In addition since it employs arithmetic, it can be scalable. It can provide these: 1. Classi cation 2. Clustering 3. Association 4. Sequencing 5. Regression 6. Forecasting 7. And many others Tools and techniques that are possibly used are the following: 1. Statistical methods 2. Decision trees 3. Case based reasoning 4. Neural computing 5. Intelligent agents
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A speci c example of data mining is text mining. It sometimes referred roughly to text analytics. is is the process of deriving high-quality information from text. is can be used to determine hidden contents, theme grouping and relationships of texts.
is capability combined with e cient information access enabled by InetSo s visual analysis technologies allows maximum self-service that benets the average business user, the IT administrator, and the developer. InetSo solutions have been deployed at over 3,000 organizations worldwide, including 25% of Fortune 500 companies, spanning all types of industries.
http://www.cbronline.com/companies/inetso _technology_corp
http://www.microso .com/en-us/bi/powerpivot.aspx
InetSo Technology
Since 1996 InetSo has been delivering easy, agile, and robust business intelligence so ware that makes it possible for organizations and solution providers of all sizes to deploy or embed full-featured business intelligence solutions. Application highlights include visually-compelling and interactive dashboards that ensure greater end-user adoption plus pixel-perfect report generation, scheduling, and bursting. InetSo s patent pending Data Block technology enables productive reuse of queries and a unique capability for end-user de ned data mashup.
Source 2005 Prentice Hall, Decision Support Systems and Intelligent Systems, 7th Edition, Turban, Aronson, and Liang
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SWOT ANALYSIS
WEAKNESS 1. Costly and expensive to 1. Can accommodate multiple users customize 2. Extremely 2. Good compilation of best expensive to practices for dierent industries purchase 3. Good track record 3. Charges per user 4. Takes a lot of time and money to train 4. Global clientelle users OPPORTUNITIES SO STRATEGIES WO STRATEGIES 1. Many SMEs who went about 1. Sell BI per module their business without for it to be more computerization are becoming 1. Penetrate more SME aordable more tech- conscious. (S2,S3,S4,O1,O2,O3) (W1,W2,W3,O1,O3) 2. Technology is known to create eciency 3. Greater need for companies to dierentiate themselves due to ti competition 4. Faster paced world forces companies to keep up using BI THREATS STRENGTHS
ST STRATEGIES 1. Dierentiate BI from other programs by highlighting its track record and dependable eectivity and eciency. (S2,S3,S4,T2) 2. Use practices from its compilation to help companies understand its busienss process (S2, T5)
WT STRATEGIES 1. Penetrate companies by selling per module and per user (W1,W2,T1,T2)
2. Cheaper alternatives 3. Customized programs available in the market 4. Traditional organization are hesitant to change 5. Many companies do not understand their business process well enough to determine how to improve them
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CBA ANALYSIS
Costs Implementation Planning Contract Labor Internal Implementation Labor Capital Costs Implementation Cost Amortized Implementation Ongoing Maintenance Contract Operational Costs Ongoing Monthly Costs Monthly Cost Unit Hours Dollars Hours Dollars Entry 240 15,400 860 15,500 Extended 10,380 15,400 37,195 15,500 78,475 1,635 1,250 1,166 2,416 4,051
Dollars/Month Dollars/Month
1,250 1,166 $
estimated to complete all planning activities. In the sample there were 120 hours of planning by the accounting department, sales and marketing required 40 hours, and the IT department put in 80 hours. is entry is for all implementation costs for work provided by outside contractors. In the sample project, all implementation activities were provided by an IT consulting rm and totaled $15,400. the number of hours estimated to complete all installation activities by internal corporate resources. In the sample, the IT team provided 240 hours of installation labor, and the accounting team worked for four weeks total (640 hours).
nance of the system. In the sample, ongoing maintenance for the system is paid monthly at a cost of $1,250. is entry includes all expected monthly operational costs. is includes internal labor, expendables, and expected upgrades through the life of the system. In the sample, a specialist in the accounting area will be trained in the weekly system maintenance functions and will devote four hours per week to those activities. In addition, IT has allocated $15,000 annually for support activities and upgrades. Project bene ts is section details the expected bene ts of the project:
Operational Cost:
Contract Labor:
Capital Costs: is entry should include all equipment and material purchased to complete the project. In the sample, installing the system required implementing a new server at a cost of $15,500.
ongoing monthly costs paid to outside contractors, vendors, or agencies relating to the ongoing mainte-
Productivity Savings: Outline the monthly savings expected to result from increases in productivity. ese are typically so costs, and may be the number most subject to scrutiny. I am typically very conservative in estimating these numbers. In the sample, the new system is expected to reduce the manual labor necessary to support customer purchases by one full person, for a net total annual savings of $28,600. Expense Reduction: Detail the expected savings because of a reduction in expenses. ese 18
should be measurable "hard" dollar costs. In the sample, no speci c dollar savings are expected. to result in increased sales, outline the increase in number of units sold on a monthly basis. For service business, the units here will be hours or contracts. In the sample project, the company expects to increase unit sales 25 percent based on customer demand for an online solution. reduction in production cost for goods to be sold is outlined here. e reduction should be the marginal di erence in production cost. In the sample project, no decreased cost of goods sold is expected.
e expected monthly bene t (or cost) over the life span of the system is shown here as a sum. is is almost never a level bene t. Many projects produce an increasing bene t over time, which is better projected using a month-to-month cost/bene t analysis. We have assumed a level bene t in this example for simplicity. In the sample project, the company expects to receive $3,407 in monthly bene t for a total implementation cost of $78,475.
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Payback Months: e payback is the number of months before the initial investment is returned (assuming a positive monthly bene t). In the sample project, the payback for our example company, including all implementation costs amortized over the life of the system and all operational costs, is calculated at 11 months. For traditional businesses, that is a relatively short payback period. is analysis is only as accurate as the numbers that are entered. Use this sheet as a guideline for developing your own analysis. e basic format can be tweaked for services, application systems, prod-
Accessibility Given that we are in the information age, information is power. It provides leverage to those who have access to it and they can hide/omit vital information to the public to further the companys cause at the expense of general public.
Other common ethical issues arising from Business Intelligence are identity the , nancial accountability, Nations security, and many others. To put simply, the information in Business Intelligence can be used in many other ways, ignoring rights, justice care and the common good.
NATION BUILDING
Business Intelligence provides data, information and knowledge for decision makers to decide intelligently and accordingly. As such, these decisions may not be limited to corporate managers, but also, policy makers in government and respective agencies. Business Intelligence, if shared appropriately with the right people, can lead to more informed decisions for our nations leader, be it in economics, society, or technology. A good example is project Noah in the country. It is a project of DOST to create an accurate, integrated and responsive disaster prevention and mitigation system. Although, it is more scienti c than business, the spirit is still the same, using the same technology mentioned above for better informed decisions.
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GROUP3
Liza Angot Chip Canoy Nori Saito George Sarmago
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Perhaps the most popular and largest player in social networking is Facebook. e Facebook was founded in 2004 by Harvard students Mark Zuckerburg, Eduardo Saverin, Dustin Moskovitz and Chris Hughes. Originally introduced within the Harvard community, its popularity then spread to other colleges; which will be eventually made available to the rest of the world. Creating and maintaining a Facebook account is free of charge and as written it its homepage, its free and always will be. Its easy to connect and communicate with friends in Facebook. is is probably the reason why about 10.5 billion minutes are spent by users on Facebook each day. Facebook has over a billion of active users as of September 2012 (Wolframalpha.com) and the Philippines ranks no. 8 with the most no. of users on Facebook (checkfacebook.com). ere are over 30 million active Filipino Facebook users.
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4. Real-time information exchange powerful communication and collaboration enabler 5. Direct interaction and engagement with an audience (human factor) free 6. Cost-e ective, most of the platforms are
Weaknesses:
1. Risk for information leakage 2. Bad publicity/exposure of an organizations weaknesses nesses 3. Has no solid revenue model yet for busi-
4. Hard to maintain: Because of its vast media exposure, signi cant time and dedication are needed to correctly manage social media platforms. 5. Some managements see that it a ects productivit
Opportunities:
1. Apps to drive marketing campaigns and engage in real-time dialogue with customers 2. Capability to integrate tools that have a unique ability to catalyze varied interactions and enable easy data searching and archiving 3. Tools or resources to track and monitor social media campaign results 4. Creating/joining online presence on sites where an organization currently doesnt exist; Reach out to certain groups that traditional media didnt allow 5. Penetration into a new geographical market/ market segment 6. Recruitment Tools for organizations/communities 7. Feedback Management apps opportunity to enhance customer service or experience (e.g. Private-platform social media that can expedite the dissemination of time-sensitive information such as upgrades and announcements and reduce time to
SOCIAL MEDIA:
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respond to end-user queries) 1. Government regulations such as blocked social media sites (i.e. China, etc) 2. Social media sites hackers 3. Unauthorized social media accounts/misrepresentation
reats:
below shows excerpt of a research conducted by Harvard Business Review Analytics Services on the varying bene ts of social media depending on the users e ectiveness in managing them.
BUSINESS/INDUSTRY/EDUCATION
Times are constantly changing, and the opinion of viewing social media in business applications as a passing fancy are well behind us. Social media is not just reserved for teenagers wanting to socialize online anymore. Todays companies are realizing that utilizing social media in their enterprise use is no longer the exception, but instead, a necessity. Areas in companies such as sales, marketing, R&D, HR, and customer service understand the potential for utilizing social media to facilitate innovation, build brand recognition, hire and retain employees, generate revenue, and improve customer satisfaction. Social media use is no longer just an option for enterprises that want to lead in todays business world. e way a company uses social media impacts brand reputation and customer perception. A 2009 study conducted by ENGAGEMENTdb found that the most valuable brands in the world are realizing a direct correlation between top nancial performance and deep social media engagement. Findings found in the study show that businesses that aggressively adopt social media as part of their strategy are more successful nancially. Social media has signi cantly changed the way we communicate and interact. With every major event we experience today for example, it would not be surprising to have instant social media feeds linked to it. Brand experiences are not exempted to this also - a positive brand experience can be shared right away to a number of audiences. Social medias vast and cost e ective reach add up to the many reasons why social media has become an essential marketing tool in most businesses nowadays. Chart 2
Businesses have seen not just a return on their investment, but also revenue increases from the use of social media. But enterprises must be cautious since there have also been negative impacts such as liability for libel, privacy violations and damage to brand recognition. Businesses are utilizing social media in various functional aspects of the business and are reaping substantial bene ts such as improved brand recognition and increased sales, as well as increases in web tra c, customer satisfaction, search engine optimization, and revenue. Social media has become a useful tool for enterprises internationally. A 2010 study conducted by Burson-Marsteller showed that of the Fortune Global 100 companies, 65 percent have active Twitter accounts, 54 percent have Facebook fan pages, 50 percent have YouTube video channels and 33 percent have corporate blogs. Companies have also discovered that they are able to observe the market, as well as their competition and their customers through social media outlets. is allows businesses using social media to be aware of any changes that may be called for and to proactively make the needed adjustments to products, services, or even strategies. Additionally, instant feedback and consumer insights provide a venue for executives to assess consumer opinion and enables them to use this information to further
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improve products, customer service and company perception. According to the 2012 Social Media Marketing Industry Report listed in Forbes.com, here are some of the roles social media is currently playing in the business world: 1. 94% of all businesses with a marketing department used social media as part of their marketing platform 2. Almost 60% of marketers are devoting the equivalent of a full work day to social media marketing development and maintenance 3. 43% of people aged 20-29 spend more than 10 hours a week on social media sites 4. 85% of all businesses that have a dedicated social media platform as part of their marketing strategy reported an increase in their market exposure 5. 58% of businesses that have used social media marketing for over 3 years reported an increase in sales over that period One of the success stories in social media was shared in socialmediastrategiessummit.com. In 2012, IKEA launched an interactive shopping catalogue called Celebrate Brilliantly. e Swedish furnishing giant packed it with video clips that incorporate sharing options for users who want to send gi ideas to family members and friends via Pinterest and Facebook. eir campaign demonstrates the value of making sharing seamless and easy, as well as the possibilities that come with user-generated content (UGC) in a consumer setting. UGC refers to various kinds of media content that are produced primarily by end users. e capability to search for and communicate with potential employees is another area that has been improved by using social media outlets such as LinkedIn. Because of its user-friendliness and its ability to reach a large amount of prospective employees almost instantly, social media is becoming a powerful force in the way businesses communicate, attract and engage their customers, employees and
other stakeholders. Students are bene ting from social media as well. Im not only referring to them using social media to show o their new out t or chat about whos dating who. ey are using it to share resources for homework assignments. ey are using Twitter to get informed on the latest breaking news. eir blogs have been helping them improve their writing and grammatical skills. Across the world, educational councils are turning what was used to be viewed as a distraction into an asset in learning. In 2006, councils in Wales blocked social networking sites, such as Facebook, from being accessed in school. But on March 6, 2013, Welsh Education Minister, Leighton Andrews, said the ban would be reviewed to allow students make use of the social media in teaching and learning situations. To help children and young people develop the skills and knowledge, they need to become con dent digital citizens, we need to teach them how to use the internet safely under supervision and independently, Andrews said. A professor of Educational Technology at the Obafemi Awolowo University, Ile-Ife, Osun State, Prof. Lade Adeyanju, who is also the Vice-President of the Nigeria Association for Educational Media and Technology, adds that integrating social media in educational experiences of students will help them nurture a positive attitude towards the use of technology, not only in their education, but in their lives. He says, At this digital age, teaching, learning and various educational activities should revolve around social media. In this vein, a teacher or lecturer as the case may be, can create a Facebook page, which he regularly updates and post assignments, tutorial questions, suggestions for further reading and also receive feedback from the students. Todays student that becomes savvy in the ways of social media at an early age is going to be able to utilize those skills once they become tomorrows professionals. eir ability to communicate e ectively through social media will de nitely become an asset in a business world that growing increasingly dependent on it.
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COST-BENEFIT ANALYSIS
Social media is still in its infancy compared to other methods of marketing and communication. Like with other relatively new platforms, organizations are o en skeptical and weary of committing whole heartedly to this relatively brand new e ort. One of the main attractions of social media is the low set-up costs that are associated with its initial e ort. However as the saying goes the devil is in the details. At its core social media is another tool that companies use to communicate with its stakeholders, and as such it needs to be carefully thought out. Depending on the type of social media and its content, the cost of setting up a speci c program will vary. (See Table 1) e various social media companies are making a conscious e ort to make their particular brand as user friendly and intuitive as possible. With the intent of completely eliminating any trace of a users manual, its very easy to be lulled by the attractiveness of social media. Regardless if an organization decides to do its social media campaign on in-house or hire someone from the outside, there will be other costs associated with maintaining a social media e ort. Unlike the casual user, organizations that utilize social media must plan, organize, and control their e orts. Management and sta alike must realize that an individual that utilizes social media in his or her personal capacity does not automatically make that person an expert. Like any other marketing, customer service, and communication e orts, dedicated personnel must be in place. One of the biggest misconceptions of social media is that its completely and entirely free of cost. at statement couldnt be farther from the truth. e cost of human capital and the time it takes to maintain social media avenues tends to be brushed aside. Some studies show that an average employee spends approximately 10 hours interacting with a particular form of social media. When translated into a typical 40 hour work week, that equates to 25% of an entire work week. Had this task been delegated on a part-time basis to some person in-house with other responsibilities, the pros-
pect of success would be very low. In addition to the manpower and time it takes to facilitate a proper social media endeavor, companies need to be aware of the fees that consultants charge for more complete metrics, monitoring, audits, and strategies. Training, consulting, workshops, speakers, and the like will also require some spending if a company decides to use these extra services. Comprehensive applications that complement social media are also available for use to the public. However some of these coveted applications that companies value are usually the ones one has to pay for. To sum it all up, there are technical and creative costs that need to be considered when venturing into a social media campaign. As mentioned earlier, social media has transformed the landscape in which companies interact with its stakeholders. Customer care, awareness, and reputation management are some of the direct benets that social media bring to the table. Chris Silver Smith of searchengineland.com brings to the forefront several indirect bene ts of social media. ese consist of search engine optimization (SEO), proactive online reputation management (ORM), and availability. As mentioned in Smiths article, search engines such as Bing and Google take into account social media activities in the mix. It should be noted that social media should not be used as a primary method of marketing, but rather a secondary instrument that complements existing mechanisms in place. So how does this all culminate into a companys success? How is the e ectiveness of a social media campaign measured relative to nancial success? Instinctively, sales gures would be examined and compared to the amount of invested into the social media campaign. However, it is very di cult to di erentiate the e ectiveness of a social media campaign that coincides with other o ine activities. Instead of measuring the e ectiveness in terms of return on investment and return on equity, perhaps a dynamic shi needs to take place. Instead of investment, a more appropriate term would be return on innovation and likewise return on engagement or experience. It is not appropriate to measure social media in terms of nancial return, but the success of
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the entire business should considered when analyzing the success of social media and its positive e ects on a company.
their employers paid them to do. It puts confidential and personal information at risk from being shared to recipients that can possibly cause harm to employees or the company itself. It opens possibility of people falling prey to online scams, fraud, viruses and identity or data the . It can be a platform to negative comments from employees about the company or fellow employees. It is important to note that access to social media in the workplace is a privilege and not a right so employers can control access that can bene t them and maximize o ce hours. But this might not yield maximum results. If employees are granted access to social networking platforms, then a comprehensive and well-de ned policy should be in place to protect the employees and the company as well. Social networking policy generally includes the following elements: Define what social networking is necessary to your organization and employees should be educated what is meant by the term. Disseminate a clear and de ned purpose for the policy. Communicate bene ts of social networking and of having a policy. Provides a clear platform for educating employees. Take into consideration any legal rami cations of violating policy. Refer to confidentiality of employer trade secrets and private or con dential information. Conduct monitoring of social networking outside of company time/property that could be associated with the company, employees or customers. Social media is such a dominant force that it needs to be controlled in a way that it can be bene cial. e risk is great but the reward is greater. at is why it is very important to know our ethical responsibilities not just to our fellow employee and our employer but to our own self as well
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Sources:
http://anikocommunication.wordpress.com/swot-analysis-for-twitter/ http://business. nancialpost.com/2012/12/05/social-medias-productivity-boost/ http://www.fastcompany.com/3004604/social-media-trends-cant-be-ignored-2013 http://www.slideshare.net/AdamVincenzini/social-media-trends-2013-16451026 http://www.forbes.com/sites/jeannemeister/2013/01/03/2013-the-year-of-social-hr/ http://en.wikipedia.org/wiki/Social_media http://windmillnetworking.com/2012/12/21/best-social-media-books-2012/ http://www.forbes.com/sites/moneywisewomen/2012/08/08/the-developing-role-of-social-media-in-the-modern-business-world/ http://www.uncp.edu/home/acurtis/NewMedia/SocialMedia/SocialMediaHistory.html http://www.mediabistro.com/alltwitter/history-of-social-media_b30226 http://www.forbes.com/sites/je ercovici/2010/12/09/who-coined-social-media-web-pioneers-compete-for-credit/2/ http://www.arteducators.org/news/nationalconvention/Scott_Linda_Conv10_SociaMedia101.pdf http://www.parl.gc.ca/Content/LOP/ResearchPublications/2010-03-e.htm http://www.checkfacebook.com/ http://socialmediastrategiessummit.com/blog/the-top-10-social-media-success-stories-of-2012-what-we-can-learn-from-them/ http://hbr.org/web/slideshows/social-media-what-most-companies-dont-know/1-slide http://www.socialmediaexaminer.com/SocialMediaMarketingIndustryReport2012.pdf
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Class Directory
Paul Inso Althea A. Gallardo Josias F. Jorgio Bill Santillan Al McWalter D. Lim Dunstan Dy Jaja Gerona Angela Jenn Moreto Liza Angot Chip Canoy Nori Saito George Sarmago
Publishing Head: Angela Jenn Moreto AGSB Cebu Campus May 3, 2013