Facebook as an Effective Management Information System (MIS) Tool - Coursework Example

Facebook as an Effective Management Information System (MIS) Tool Introduction The traditional approach of management information system (MIS) is toprocure data from different sources and assemble them in forms to distribute them to appropriate departments at regular intervals. This approach was developed further when data was distinguished from information since the latter is the result of analysis of data. Since data analysis can produce different information depending on the method of analysis therefore the system was further developed to make it individual-oriented (Ramachandra et al., 2012, p.125). With growing competition in the business it became necessary for different groups of people to assess information whenever necessary. The system was then developed to store data in the form so that it becomes accessible to all people in different ways. This paved the way for database based on which MIS’s effectiveness depends. This paper will explore Facebook as an effective MIS tool. To avoid overloading of information that can lead to management failure, database has become indispensable in storing data on a computer. The information collected from data helps business people to make decisions that will garner maximum profits. In a computer-based information system, there are six components all of which are used by Facebook. There is hardware that stores user details for employees, software is the web browsers, databases that stores profiles and images, telecommunications that is connection between server and Internet to access web pages, people that include managers, designers, system engineers and other personnel of Facebook, and finally procedure which includes both information through web and people conducting business (Beldauf & Stair, 2010, p.27). Considering the importance of social media like Facebook, it becomes necessary to assess the performance level of Facebook. Therefore the need is to develop key performance indicators. Social media measurement is regular monitoring of the marketing activities of social networking sites. This includes constant tracking of social networking sites like Facebook, Twitter, and blogs, forums, news sites, message boards etc. This measurement allows a marketer to know about the trends and emotions of the public regarding a particular brand or organization. It also helps to know the impact of Facebook on marketing strategies, emerging trends and popularity of brands. Since every data that is extracted from social networking sites is not important, therefore it is required to learn the goals and objectives of the organization. Every data to be assessed needs to be aligned with the strategic goals of the organization. There are number of systems for measuring an organization’s strength regarding social media and each has its own method of measurement and assessment formula. Qualitative Facebook measuring is the process by which the opinions and beliefs of public is assessed regarding a brand. The most popular Facebook qualitative metrics are those that study the influence of Facebook on customers’ attitude towards brands. For instance, 84 percent of marketers assess dialogue with prospects and customers, while 68 percent assess the weight of customers’ relationship with brands. Also, 57 percent of marketers measure the rates of maintaining customer loyalty, while 43 percent calculate the ratio of positive and negative opinions of customers regarding a brand. Moreover, 68 percent of marketers track the reputation of brands or corporations (Barker et al., 2012, p.287). Quantitative social media measuring is counting the number of posts in a social networking site like Facebook along with likes and dislikes for the post. Quantitative measurement does not always give a wholesome and accurate picture of Facebook performance level. This reality becomes even more prominent as a particular brand grows in popularity and more and more people become aware of its utility. Qualitative measurement gives a more accurate picture of positive and negative opinions about people regarding the brand. By studying customer inclination, for or against a brand, helps marketers to design Facebook strategies to promote their brands. For instance, in Facebook, if people are talking about a certain product, they may post that they like it or they do not like it. By using quantitative measure, marketers will simply count the number of hits without separating the positive and negatives ones. Hence, quantitative measurement will only reveal the number of people who have experienced the brand and not the positive or negative sentiments attached to the brand. However, qualitative measurement will assess the ratio of positive and negative hits thus revealing whether majority of people are satisfied or dissatisfied with the brand. Such revelation of brand perception will help marketers make brand promotion strategies. It is to be mentioned here that quantitative measurement and qualitative measurement are not mutually exclusive, and the combination of both can give more accurate and concise picture of customers’ perception of brands. Social media measurement is “unique in bringing both types of insights together to characterize performance and the value derived from social media efforts” (Barker et al., 2012, p.287). The popularity of Facebook as tool for brand promotion can be emphasized with these facts: Facebook page of Coca-Cola has 11 million fans while Starbucks has 13 million (Zarella, 2010, p.3). There are a number of key performance indicators that make qualitative measurement of marketing activities of social media. For the assessment of public opinions, computer algorithms are used “to automatically detect the basic moods, attitudes or emotions of the creators of content on the social web” (Barker et al., 2012, p.287). This means, analysis of sentiments simultaneously distinguishes the different opinions of public regarding a brand like whether they are happy, moderately happy, unhappy or moderately unhappy with the brand. There are several principle objectives for which marketers engage in measuring social media like Facebook’s marketing performance. Firstly, they can find out which social networking sites are more popular which means where people more often engage in conversations about brands. Secondly, marketers can find out the social media channels which consumers use to interact with the brand. Thirdly, it is possible to identify consumers’ awareness level regarding characteristics of the brand and also the misconception that consumers have regarding the brand. Fourthly, it is also possible to assess the impact of social media marketing strategies on people’s engagement with the brand by studying the increase of communication regarding the brand. Finally, it is possible to learn the trend of customers using different brands by studying the difference between growth of communication regarding different brands (Marr, 2012, p.168). From the above discussion, it can be deduced that social media sites are not tools for making social communication only. Being a social media site, Facebook allows users to create own pages to join discussion groups to express interests. Since it is one of the most popular form of social media with more than 800 million users, Facebook is increasingly becoming an important tool for business people to use it as part of their marketing strategies (Grensing, 2013). However, like any social network users Facebook do not adhere to journalistic principles even though they can provide real news for circulation. The principle of credibility may not exist in Facebook posts. The added advantage of Facebook is that every post gives the scope to the readers to post their comments and views. Everyday millions of users post information on topics ranging from social, economic to political issues which induce readers to read them and participate in online discussions and debates. Therefore, it can be speculated that such discussions and debates influence public opinion. An important feature of any social media is that it provides scope to people to express their demands and opinions for certain issues. If they want something to change or if they want to voice their protests against any issue, they can express their views. Previously, common people were dependent on traditional media like newspapers and television to support their views. Now, in Facebook people can communicate with other users or even directly with the concerned organization. The impact of their online interventions becomes even more prominent when the same is echoed by the traditional media. This means, conventional media acts as third party supporters of what is appearing in social media. The basic principles of formation of public opinion have been theorized by Elisabeth Noelle-Neumann. According to this Spiral of Silence theory, public opinion is controlled by social contexts. Individuals observe the trend of people’s views and what is commonly acceptable and accordingly shape own opinion. This theory states that individuals feel the strong need to become part of a group and fear of isolation makes them express views that align with majority of the group members. Very often when an individual’s personal opinion differs from the opinion of the majority, he chooses to remain silent rather than becoming part of the minority group. However in social media sites, dominance over a specific opinion is never forever. If the minority group is silenced for a long time by the majority group, then the former will strength their opinion over time and will eventually gain popularity. If this continues, then sooner or later their opinion will become the dominant one (Riel, 2013, p.15). Conclusion The growing popularity and proliferation of social media is bringing a radical change in the mode of news and information circulation. Moreover, traditional forms of media have also leaned towards the social media with newspapers and magazines having online websites. One advantage of social media is that news can be stored, managed and shared more efficiently than other forms of media. The new generation gets more easily accustomed to social networking sites. Other than social communications and idle chats, social networking sites are increasingly becoming popular platforms for sharing of news and information. References Barker, M. et al. (2012). Social Media Marketing: A Strategic Approach. Cengage Learning Beldauf, K. & Stair, R.M. (2010) Succeeding with Technology, Cengage Learning Grensing, J. (2013) Business Development and Marketing for Lawyers, eBookIt.com Marr, B. (2012). Key Performance Indicators (KPI): The 75 measures every manager needs to know. Pearson Ramachandra, C.G., Srinivas, T.R. & Shruthi, T.S. (2012) Case Study on Comparison of Usage and Acceptance of Management Information System (MIS) in Medium Scale and Large Scale Organizations. International Journal of Engineering Science and Innovative Technology, 1(2), 125-133 Riel, B.M. (2013), Corporate Reputation and the Discipline of Public Opinion, pp.13-19, In Carroll, C.E. (ed) The Handbook of Communication and Corporate Reputation, John Wiley & Sons Zarella, D. (2010) The Facebook Marketing Book, O’Reilly Media Read More