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Variety of Social Networks

Share MMO

Publish

Discuss

Social Net-works

Micro- blog

Life- stream

Lifecast

Virtual Worlds

Social Games

Social Media

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Social Media‘s many opportunities for a company

Opportunities

Risks

External view

Internal view

Social Media in the Enterprise

Social Media for Recruiting

Social Media for Internal Knowledge Sharing

Social Media for Branding and

Marketing

Social Media for Internal Communication

Social Media for Public Relations

Compliance Risks regarding

Social Media

Reputational Risks regarding

Social Media

Strategic Risks regarding

Social Media

Social Media CRM

Operational Risks regarding

Social Media

Social Media for Innovation and Crowd Sourcing

Social Engineering

Privacy

Security

Regulations

Social Media for Customer

Feedbacks

Social Media for Internal Trainings

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How enterprises are affected

Strategy

Marketing / Sales & Service

Operations & Supply Chain

IT & Technology

HR / Finance & Risk

Market & competitive positioning Pricing & Business model Eco-system orchestration

Customer segmentation & strategy Cross-channel customer experience blueprint Marketing, Sales & Service effectiveness

Lean process design Supplier & Partner networks Focus on agility and information flow

Cloud Computing / delivery approach Information & data Integration & Security

Recruitment, Learning & growth Org model, Performance & incentives Compliance & Risk

New market entrants Disruptive business models Blurring of friends vs. foe

Loss of control Chameleon consumers Front office silos exposed

Pressure Impact

Demand for flexibility & innovation Orchestration of complex eco-system

Increased business demands Explosion of data Rogue IT purchasing

Increased business demands Do more with less Transparency of everything

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Social Media risk areas

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Social Media and an enterprise

Provider of Social Media Network

Social Media Network Applicant

In SMN Third Parties

Third Parties

User Agreement

Advertisment Services

User Agreement

User Agreement

Employees

Company

HR Marketing

Chef

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Social Media‘s organizational impact

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Dimension 1: Official social media sites

Company 1. Organisations use Social Media channels

The public

Companies are using social media channels extensively Is there a social media

strategy? Are risks using social media

platforms officially identified? Are all relevant domains and

names reserved? …

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Companies use Social Media

►Since June 2010 - Migros Social Media Products Directory Migipedia

►May 2011 - Pril labels competition with User Rating

+

-

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Social Media and data privacy

► Applications (Google AdSense, Google Analytics, transmission of directories, etc.)

► Social Media Networks

► Chats ► Employee monitoring

Company

HR Marke-ting

Social Media Network Applicant In SMN Third Parties

Third Parties

Employees

Chef

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Unfair competition, astro turfing

► Unfair competition and selling practices

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Intangible assets in Social Media Networks ► Example: Ernst & Young Facebook Profile

IPR on trademarks and logos

Image rights

Copyright on text

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Personality rights, sector specifics

Personality rights

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Dimension 2: Employees are communicating

Social Web

Company

Companies have introduced social media policies Are the policies touching the

challenges of current social media channels?

Are the employees aware of the policies?

Are there regular awareness trainings?

…

2. Employees communicate via Social Media channels

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What could go wrong when employees use Social Media?

► March 2011 – New York City Ballet dancer makes jokes about his boss

► April 2009 – Bad YouTube Video of Domino’s Pizza

Domino’s stock value drops extremely!

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The right to use of Social Media on the job?

Use permitted without any restrictions.

Use for business and private purpose permitted, however with limitations

Only use for business purpose permitted

No business or private use permitted

Private use neither possible nor permitted

Company

HR Marke- ting

Social Media Network

Employees

Chef

Ways how a Company may act:

► Recommendation: In any case, issue a policy on the use of SMN ► Employee training for the use of Social Media Networks.

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Identity / account fraud

Own your account.

Be careful with accountgrabbing.

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Are you allowed to screen applicants?

► A hint or link to an applicant‘s profile in a Social Media permits consultation ► Research of a person must be documented and filed ► Google ≠ LinkedIn ≠ Facebook ► Not just employees, but also e.g. health insurance or bank loan applicants Private vs. professional profiles

Company

HR Marke-ting

Social Media Network Applicant In SMN Third Parties

Third Parties

Employees

Chef

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Dimension 3: Externals are communicating

Social Web

Company

There are discussions about the company on social media channels Are all relevant social media

sites monitored? Is there a risk analysis

regarding incidents on social media channels?

Is there an incident response process?

…

3. External comment on the company through Social Media

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What could go wrong when externals use Social Media?

► July 2011 - Hackers declare President Obama by Fox News Twitter account for dead

► April 2011 - computer scientists tweet unnoticed over ZDFonline for six months

► July 2012 – User announces termination of all contracts: More than 145,000 likes

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Use of trademarks

► Third party uses a registered trademark or a trademark is disparaged ► Complaint to the operate of the relevant Social

Media

► Action for injunction base on trademark protection (Restriction: Trademark protection is depending of the relevant territory, however the Internet is global)

► Claim based on unfair competition (Restriction: Only possible with competitors)

Own your social media accounts!

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Social Media Monitoring and Web-Crawling

► Social Media Monitoring

► Web-Crawling

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Social Media pillory

► A law firm planned to publish the names of users illegally downloading pornographic material

► Prohibited

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Social Media Governance depending on perspective

Company or public instution

1. Organisations use Social Media channels

2. Employees communicate via Social Media channels

3. External comment on the company through Social Media

Social Media Strategy

Social Media Policy

Social Media Awareness

Social Media Assessment Social Media Monitoring

The public

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Ernst & Young – Social Media Strategy & Governance Approach

Social Media Quick Scan Based on Ernst & Young Social Media Governance Maturity Modell

Social Media Risk Management

Threats, gaps, areas of improvements

Social Media Policy Developement

Policies, Guidelines

Social Media Risk Awareness

Threats, gaps, areas of improvements Social Media

Monitoring KPI, Measuring,

Monitoring

Social Media Technology

Architecture, platform, mobile devices

Social Media Data Integration, interfaces

Social Media Sourcing

Insourcing, outsourcing

Social Media Strategy

SWOT, Goals, KPIs

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►Background ► Since 2010: Partner and Head of IP/IT law of Ernst & Young Law Germany ► 2002-2008: Attorney and partner with Holme Roberts & Owen, Munich, Head of IP/IT law

► Data protection officer for a DAX-group company and the largest German real estate owning company. ► Project for leading German food discounter on the migration to EDI Electronic Data Interchange

(affecting data retention aspects). ► Project for leading German power supplier regarding off-shore hosting of data in the light of data

privacy, tax, accounting and regulatory duties. ► Support of leading German food wholesale group regarding shared services center. ► Public German Bank: Legal advice regarding a large IT-Outsourcing-Project. ► Wirecard AG: Representation in various outsourcing projects in the payment industry (also towards

Deutsche Telekom). ► Several projects on Cloud Computing in the banking sector (i.a. towards Amazon, for German savings

banks). ► Leading German Healthcare and Chemicals group: Support in transfer of operation to an offshore

shared services center.

► Languages: German (native); English and French (fluent); Spanish and Hungarian (basic)

Telefon +49 89 14331 25951 Mobil +49 160 939 25951 E-Mail Peter.katko@de.ey.com

CV Peter Katko