Page 333 - Using MIS

Q2 How Do SMIS Advance Organizational Strategy? 301
Social Media and Inbound and Outbound Logistics

Companies whose profitability depends on the efficiency of their supply chain have long used
information systems to improve both the effectiveness and efficiency of structured supply chain
processes. Because supply chains are tightly integrated into structured manufacturing pro-
cesses, there is less tolerance for the unpredictability of dynamic, adaptive processes. Solving
problems is an exception; social media can be used to provide numerous solution ideas and
rapid evaluation of them. The Japanese earthquake in the spring of 2011 created havoc in the
automotive supply chain when major Japanese manufacturers lacked power and, in some cases,
facilities to operate. Social media was used to dispense news, allay fears of radioactive products,
and address ever-changing needs and problems.
SM communities may provide better and faster problem solutions to complex supply chain
problems. Social media is designed to foster content creation and feedback among networks of
users, and that characteristic facilitates the iteration and feedback needed for problem solving,
as described in Chapter 2.
Loss of privacy is, however, a significant risk. Problem solving requires the open discussion
of problem definitions, causes, and solution constraints. Because suppliers and shippers work
with many companies, supply chain problem solving via social media may be problem solving
in front of your competitors.

Social Media and Manufacturing and Operations

Operations and manufacturing activities are dominated by structured processes. The flexibility
and adaptive nature of social media would result in chaos if applied to the manufacturing line
or to the warehouse. However, social media does play a role in designing products, developing
supplier relationships, and improving operational efficiencies.
Crowdsourcing is the dynamic social media process of employing users to participate in
product design or product redesign. eBay often solicits customers to provide feedback on their
eBay experience. As its site says, “There’s no better group of advisors than our customers.” User-
guided design has been used to create video games, shoes, and many other products.
Social media has been widely used in businesses-to-consumer (B2C) relationships to
market products to end users. Now manufacturers are starting to use social media to become
industry leaders, promote brand awareness, and generate new business-to-business (B2B)
leads to retailers. Manufacturers can use social media by starting a blog that discusses the latest
industry-related news, posts interviews with experts, and comments on new product innova-
tions. They can also create a YouTube channel and post videos of product reviews and testing
and factory walk-throughs. Facebook and Twitter accounts are useful to promote positive con-
sumer stories, announce new products, and follow competitors. Retailers view manufacturers
who engage in such SM efforts as industry leaders.
Operations can use social media to improve communication channels within the organiza-
tion and externally with consumers. For example, an enterprise social networking service like
Yammer can be used to provide managers with real-time feedback about how to resolve internal
operational inefficiencies. Externally, a retailer could monitor its corporate Twitter account and
respond to product shortages or spikes in demand for new products around holidays.

Social Media and Human Resources

The last row in Figure 8-5 concerns the use of social media in human resources. As previously
mentioned, social media is used for finding employee prospects, for recruiting candidates,
and—in some organizations—for candidate evaluation.
Social media is also used for employee communications, using internal personnel sites
such as MySite and MyProfile in SharePoint or other similar enterprise systems. SharePoint
provides a place for employees to post their expertise in the form of “Ask me about” questions.