Presentation sdimi risks, challenges and benefits of social media 2011

The Risks, Challenges and Benefits of UsingSocial Media in the Mining Industry

Zoë Mullard - InfoMineDr. Dirk van Zyl - UBC Norman B. Keevil Institute of Mining Engineering

Overview

• Introduction to Social Media• Research Methodology• Findings: Applications of Social Media• Risks and Challenges of Social Media• Benefits of Social Media• Pilot project: InfoMine’s Continuous Conferences• Recommendations• Conclusions

Introduction to Social Media

Source: http://www.mwsolutions.ca

Net Effect of Web 2.0

• Equalization between amateurs andprofessionals

• Increased expectations for access toinformation

• Reduced power to control messagesand marketing

Research Background

Conservativeindustry

Scrutinized standards

Negative legacy

CSR and communityengagement investments

Access information

Express concerns Create social networks

Information sharing

Mining Industry

Web 2.0 andStakeholders

Statement of Problem

Inquiry into Web 2.0 communication tools is neededto determine their impacts on mining operations and

business communication strategies.

Research Questions Research Objectives

Research Questions

To develop understanding about howWeb 2.0 tools relate to transparencyand corporate social responsibilitynorms in the mining industry

How are stakeholders in themining industry using Web 2.0tools?

Can these tools be used toenhance stakeholderengagement?

What opportunities and risks areassociated with using thesetools?

To outline the current uses of socialmedia in the mining industry

To provide guidelines for a socialmedia strategy in the mining industry

Theoretical Frameworks

1. Communications Theories2. Stakeholder Engagement Processes3. Social Capital

Key Themes

Transparency: access to information/people

Credibility: provision of trusted information

Authenticity: original, genuine

CommunicationsPublic

Engagement Social Capital

Research Methodology

Website Observations

Site Name of Group/Organizations Social Media Affiliation

1. Society of Mining Engineering (SME) Facebook Mining

2. Alcoa Facebook Mining

3. Fuera Barrick Facebook Civil Soc.

4. LaFarge Facebook Mining

5. LaFarge Twitter Mining

6. Rio Tinto Twitter Mining

7. Barrick Gold Twitter Mining

8. Argentina Mining Twitter Mining

9. No Pebble Mine Twitter Civil

10. RightsandTitle Twitter Civil

11. Republic of Mining Blog Mining

12. IThinkMining Blog Mining

Interviews

Data Analysis

ATLAS.ti - Qualitative Interview Analysis

Quantitative Analysis - Interviews and Website Observations

Findings: Use of Social Media

Web 2.0 Tools Currently Being Used

Blogs

24%

Wikis

6%

Twitter

17%

YouTube

7%

Flickr

6%

LinkedIn

11%

Other

9%

Facebook

20%

Applications of Social Media Relative toMining Issues

Mining Industry• Industry

promotion• Investor relations• Recruitment• Project

management

Civil Society• Raising

awareness• Promoting

events• Recruitment• Discussion,

reflection &protest

Government & Regulators• Project management• Internal information

dissemination• Monitoring

stakeholders

Challenges

• Culture of communication

• Organizational change

• Human and financial resources

• Determining and measuring value

• Lack of industry leadership

• Unrecognized and unproven

• Contextualization of information

• Management of audience expectations

Perceived Risks

• Communication technology changes

• Information co-optation/ manipulation

• Exposure to critics Privacy concerns

• Cannot replace face-to-face

• Legal ramifications

• No exit

Benefits

• Increased dialogue and collaboration / Diminishing silos

• Flexible platforms

• Facilitate building and strengthening relationships

• Outreach to larger audiences

• Opportunity to tell “good news” stories & influencereputation

• Monitoring community sentiment

Indicators of Success

• Community– Growth & distribution community and networks

• Engagement– Response to efforts on platforms (conversations)– Time spent on sites

• Influence– Share of conversation– Sentiment - positive, negative

InfoMine’s Continuous Conferences

• Ongoing conferencing - sharing,collaborating & networking

• Flexible platforms

• Contributors accountable

• Strengthening relationships oftechnical community

Strategies

Three approaches:1. Full integration

• Active site, policies, & dedicated resources

3. Partial integration• “We are just dipping our toes in the social media water.”• Trial & error approach

2. No integration• No application of social media• Monitoring, but no impact on decisions

Recommendations

• Develop Strategy• Set objectives

• Identify opportunities and challenges

• Be flexible

• Determine scope and scale

• Develop indicatorsUnderstand

Engage

Listen

Conclusions

• Moderate application in the mining industry

• Need to overcome perceived risks

• Not a replacement for face-to-face

• Leadership required

Source: edgewatertech.files.wordpress.com

Information Society and the MiningIndustry

The network economy is founded on technology,but it can only be built on relationships. It startswith chips and ends with trust.

Kevin Kelly - Wired Magazine