Chapter 11

Implementing Social Commerce Systems

Learning Objectives1. Describe the major issues in the social commerce

implementation landscape.2. Discuss the security and fraud protection issues in social

commerce.3. Describe legal, privacy, security, and cyberbullying issues.4. Describe the major technological issues including

integration, systems development, and software and vendor selection.

5. Discuss the major employee-related implementation issues ranging from wasting time to participation, and the related guidelines and policies.

Learning Objectives

6. Discuss organizational impacts including transformation to social business.

7. Discuss implementation issues related to SMEs and risk management.

8. Discuss the major success and failure factors, policies and guidelines, and adoption of social commerce.

9. Describe the future of social commerce.

Opening Case: Domino’s Employees Post Vulgar Videos on YouTube

• The Problem (The Incident)– 2 employees created 5 prank videos that went viral

on YouTube– The videos showed a variety of acts of food

contamination by employees– Six hours after being posted, the videos were

featured on the consumer advocacy site Consumerist– Even though the videos were pulled by they

continued to damage the Domino’s brand, with many stores rapidly losing business

Opening Case: Domino’s Employees Post Vulgar Videos on YouTube

• The Solution (The Company’s Response)– Domino’s tracked down the perpetrators and immediately fired

them, requiring them to write a letter explaining the videos– CEO Patrick Doyle posted an apology video using the same key

words as were used for the originals– This video was highly effective, given that it offered a direct

response to both Domino’s customers and to others who had seen the videos, and it also explained what Domino’s was doing about the problem

– Domino’s immediately started a comprehensive social media effort

Opening Case: Domino’s Employees Post Vulgar Videos on YouTube

• The Results – The incident gave Domino’s the impetus to start a

social media communications and monitoring program

– Domino’s also started practicing proactive customer interactions via social media, expanding their initial success with direct customer engagement and using social media as a means of rebuilding their brand and maintaining communications

Lessons Learned from this Case• Employees are all spokes people for the brand; therefore,

they should all be trained in social media use (and misuse) to make them aware of the potential damage caused by the use of negative brand videos

• Reputation-management response should use the same social media channels, allowing the company to specifically target the desired audience

• A company needs to explicitly monitor activities and be ready to respond immediately in case of a crisis, given the speed of content spreading on social media and the potential for damage

Social Commerce Implementation Issues

• What Is Implementation?– Implementation is the process of carrying out,

executing, or practicing of a business plan

Figure 11.1: The Major Implementation Issues of Social Commerce

Social Commerce Implementation Issues

• The Implementation Process and Its Major Issues– The Major Issues and Activities of Social Commerce

Implementation– Implementation Activities

• Justification/Economics• Security Issues• Legal, Privacy, Cyberbullying, and Ethical Issues• Technological Issues• Employee-Related Issues• Organizational Readiness and Impacts of Social Commerce• Other Implementation Issues• Critical Success Factors

Security and Fraud Protection in Social Commerce

• Social Engineering and Fraud– Social engineering*

• Social Phishing– Phishing*

Figure 11.2 Social Engineering: From Phishing to Financial Fraud and Crime

Figure 11.3 How Phishing Is Accomplished

Security and Fraud Protection in Social Commerce

• Social Media Makes Social Engineering Easy– How Hackers Are Attacking Social Networks– Spam in Social Networks and in the Web 2.0

Environment• Automated Blog Spam

• Defending Social Commerce Systems– Protecting against Phishing

Security and Fraud Protection in Social Commerce

• Protection Against Spam– Protecting Against Spyware

• Fraud in Social Commerce– Fraud Protection

Issues of Legality, Privacy, Cyberbullying, and Ethics

• Legal Issues– Violation of Intellectual Property and Copyright– Video: “Ethical, Social, and Political Issues in E-Commerce” at youtube.com/watch?v=5iR8kJU85tU

• Privacy Issues in Social Commerce– Privacy*– Invasion of Privacy– Collecting Information about Individuals– The Web and Information Collection– Mobile User Privacy

• Cyberbullying*

Issues of Legality, Privacy, Cyberbullying, and Ethics

• Ethics in Social Commerce– Accuracy of computer-generated recommendations– Ethics in social commerce websites and application design– Invasion of individuals’ privacy (e.g., by advertisers or e-mail

spam)– Use of intellectual property, including reports and expertise,

without permission from, or payments to, the creators– Accuracy of user-generated content– Use of corporate computer resources for non-work-related

purposes

Technological Issues

• Social Commerce Systems Integration – A Facebook Platform

• Open Graph• Social Plug-ins

• Social Commerce Tools– Really Simple Syndication (RSS)– Photo sharing– Podcasts– Social news– Video sharing

Technological Issues

• Acquisition of Social Commerce Systems– Managing the Development Process

Figure 11.4 The SC Application Development Process

Employee-Related Implementation Issues

• Non-Work-Related Use of Social Media• Employee Reluctance or Resistance to

Participate• Quality of Content and Biases of User-

Generated Content• Data Leakage and Loss of Data

– Transferring Data

Employee-Related Implementation Issues

• Social Media Management at Work– Develop Social Media Policies– Monitor Content– Archive Social Media Content

Organizational Issues and the Impacts of Social Commerce

• Improving Marketing and Sales Revenue• Transforming Organizations and Work

– Technology and Organizational Learning– The Changing Nature of Work– Restructuring Business Processes

• Business process reengineering (BPR)*• Business process management (BPM)*

– Change Management*– How to Organize a Social Commerce Unit in a Company

Other Implementation Issues

• Implementation Issues in SMEs– Examples: Small Businesses Conducting Social

Commerce on Facebook– Video: “How to Sell on Facebook with a Store -

Step by Step Tutorial” at youtube.com/watch?v=HQh-f1IYSg4

• Some Strategy Issues for SMEs– Small Number of Followers

• Risk Factors and Analysis

Successes, Failures, and Lessons Learned

• A Strategy for Social Commerce Implementation Success

• Some Policies and Guidelines• Learning from Failures

– Example: Walmart’s In-House Social Network• Adoption Strategies

Successes, Failures, and Lessons Learned

• Revenue Generation Strategies in Social Commerce– Increased Revenue and Its Benefits

The Future of Social Commerce

• Creation of Jobs• IBM’s Watson, Smart Computing and Social

Commerce– Personal investment advisor– Language translator– Customer service– Q&A service– Matchmaking– Other applications

• Conclusion