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Ernst & Youngin Liiketoiminnan lait -seminaari 14.2.2013 Helsingissä, Peter katko
Variety of Social Networks



                                      Publish
                          MMO                       Share



                Social                                       Discuss
                Games
                                     Social
                Virtual
                                     Media                   Social
                                                             Net-
                Worlds
                                                             works


                                                    Micro-
                          Lifecast
                                                    blog
                                      Life-
                                      stream




15.2.2013   2   Liiketoiminnan lait -seminaari
                Turvallinen ja tehokas sosiaalinen media
Social Media‘s many opportunities for a
 company
                                                     Opportunities



                                           Social Media                  Social Media
                                           CRM                           for Internal
                                                                         Communication
                                                                                            Social Media for
                                                Social Media
                      Social Media for                                                      Internal Knowledge
                                                 for Customer
                      Public Relations                                                      Sharing
                                               Feedbacks
                                                                         Social Media for
                                  Social Media for                       Recruiting
                                  Innovation and
             Social Media for                                                                        Social Media for
                                  Crowd Sourcing
              Branding and                                                                           Internal Trainings
               Marketing                                   Social Media
External                                                                                                                  Internal
                                                           in the
view                                                                                                                      view
                                                           Enterprise
                       Reputational                                                              Operational
                      Risks regarding                                                          Risks regarding
                       Social Media         Regulations                Social                   Social Media
                                                                     Engineering

                                          Compliance                            Strategic           Security
                                         Risks regarding                     Risks regarding
                                          Social Media                        Social Media

                                                           Privacy




                                                                      Risks

 15.2.2013     3                Liiketoiminnan lait -seminaari
                                Turvallinen ja tehokas sosiaalinen media
How enterprises are affected

                          Pressure                                      Impact

                           New market entrants                          Market & competitive positioning
                           Disruptive business models                   Pricing & Business model
                                                       Strategy
                           Blurring of friends vs. foe                  Eco-system orchestration



                    Loss of control                    Marketing /           Customer segmentation & strategy
                    Chameleon consumers              Sales & Service         Cross-channel customer experience blueprint
                    Front office silos exposed                               Marketing, Sales & Service effectiveness

                                                  Operations & Supply
     Demand for flexibility & innovation                 Chain                      Lean process design
     Orchestration of complex eco-system                                            Supplier & Partner networks
                                                                                    Focus on agility and information flow

                                                   IT & Technology
       Increased business demands                                                           Cloud Computing / delivery approach
       Explosion of data                                                                    Information & data
       Rogue IT purchasing                                                                  Integration & Security

                                                 HR / Finance & Risk
Increased business demands                                                                       Recruitment, Learning & growth
Do more with less                                                                                Org model, Performance & incentives
Transparency of everything                                                                       Compliance & Risk




15.2.2013             4              Liiketoiminnan lait -seminaari
                                     Turvallinen ja tehokas sosiaalinen media
Social Media risk areas




15.2.2013   5   Liiketoiminnan lait -seminaari
                Turvallinen ja tehokas sosiaalinen media
Social Media and an enterprise



            Company
                                      User Agreement
    Chef                                                                         Provider of Social
             HR   Marketing                                                       Media Network
                                         Advertisment Services




                                                                                    User Agreement

                                                                                          User Agreement
 Employees




                              Social Media Network               Applicant                     Third Parties
                                                                 In SMN   Third Parties




15.2.2013              6          Liiketoiminnan lait -seminaari
                                  Turvallinen ja tehokas sosiaalinen media
Social Media‘s organizational impact




15.2.2013   7   Liiketoiminnan lait -seminaari
                Turvallinen ja tehokas sosiaalinen media
Dimension 1: Official social media sites

                                                                    The public

                              1. Organisations use Social
                              Media channels
      Company

                              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?
                               …




15.2.2013   8   Liiketoiminnan lait -seminaari
                Turvallinen ja tehokas sosiaalinen media
Companies use Social Media


►
 + June 2010 - Migros
 Since
Social Media Products Directory
Migipedia




►
 - 2011 - Pril labels
 May
competition with User Rating




15.2.2013    9      Liiketoiminnan lait -seminaari
                    Turvallinen ja tehokas sosiaalinen media
Social Media and data privacy

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




►
                                                         Company
      Chats                                              Chef
                                                                     Marke-
                                                                HR

►     Employee monitoring                                             ting




                                                  Employees




                                                                              Social Media Network   Applicant                Third Parties
                                                                                                     In SMN   Third Parties




15.2.2013      10     Liiketoiminnan lait -seminaari
                      Turvallinen ja tehokas sosiaalinen media
Unfair competition, astro turfing

►    Unfair competition and selling practices




15.2.2013      11     Liiketoiminnan lait -seminaari
                      Turvallinen ja tehokas sosiaalinen media
Intangible assets in Social Media Networks

►    Example: Ernst & Young Facebook Profile
                                                                   Image
                                                                   rights
            Copyright
            on text



                                                                   IPR on
                                                                   trademarks
                                                                   and logos




15.2.2013        12     Liiketoiminnan lait -seminaari
                        Turvallinen ja tehokas sosiaalinen media
Personality rights, sector specifics




                                                            Personality rights




15.2.2013   13   Liiketoiminnan lait -seminaari
                 Turvallinen ja tehokas sosiaalinen media
Dimension 2: Employees are communicating

                                                                 Social Web


  Company


                      2. Employees communicate via
                      Social Media channels


                              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?
                               …


15.2.2013   14   Liiketoiminnan lait -seminaari
                 Turvallinen ja tehokas sosiaalinen media
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!




15.2.2013       15    Liiketoiminnan lait -seminaari
                      Turvallinen ja tehokas sosiaalinen media
The right to use of Social Media on the job?

                                                                              Company
                                                                             Chef
                                                                                         Marke-
                                                                                    HR
                                                                                         ting


 Ways how a Company may act:                                          Employees




                                                                                                  Social Media Network




                           Use for business and
                                                                                                                         Private use neither
     Use permitted without private purpose           Only use for business          No business or private
                                                                                                                         possible nor
     any restrictions.     permitted, however with   purpose permitted              use permitted
                                                                                                                         permitted
                           limitations




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

15.2.2013             16           Liiketoiminnan lait -seminaari
                                   Turvallinen ja tehokas sosiaalinen media
Identity / account fraud



 Own your account.

 Be careful with
 accountgrabbing.




15.2.2013   17   Liiketoiminnan lait -seminaari
                 Turvallinen ja tehokas sosiaalinen media
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

                                                         Chef
                                                                     Marke-
                                                                HR
                                                                      ting




                                                 Employees




                                                                                                     Applicant
                                                                              Social Media Network                               Third Parties
                                                                                                     In SMN      Third Parties




15.2.2013       18       Liiketoiminnan lait -seminaari
                         Turvallinen ja tehokas sosiaalinen media
Dimension 3: Externals are communicating

                                                                Social Web
                             There are discussions about the
                             company on social media channels
                              Are all relevant social media
  Company                       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




15.2.2013   19   Liiketoiminnan lait -seminaari
                 Turvallinen ja tehokas sosiaalinen media
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



15.2.2013      20      Liiketoiminnan lait -seminaari
                       Turvallinen ja tehokas sosiaalinen media
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!




15.2.2013           21        Liiketoiminnan lait -seminaari
                              Turvallinen ja tehokas sosiaalinen media
Social Media Monitoring and Web-Crawling


►    Social Media Monitoring

►    Web-Crawling




15.2.2013     22     Liiketoiminnan lait -seminaari
                     Turvallinen ja tehokas sosiaalinen media
Social Media pillory


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

            ►   Prohibited




15.2.2013         23         Liiketoiminnan lait -seminaari
                             Turvallinen ja tehokas sosiaalinen media
Social Media Governance depending on
perspective

                                       Social Media Strategy
                                                                                   The public

                                 1. Organisations use Social
   Company or public             Media channels
      instution
                                        Social Media Policy


                        2. Employees communicate via
                        Social Media channels

                                     Social Media Awareness


                               3. External comment on the
                               company through Social Media



                        Social Media Assessment               Social Media Monitoring




15.2.2013   24     Liiketoiminnan lait -seminaari
                   Turvallinen ja tehokas sosiaalinen media
Ernst & Young – Social Media Strategy &
Governance Approach
                                                        Social Media
                                                          Strategy
                                                      SWOT, Goals, KPIs
                                                                                 Social Media Risk
                    Social Media
                                                                                   Management
                     Sourcing
                                                                                 Threats, gaps, areas of
                Insourcing, outsourcing
                                                                                     improvements

                                                    Social
            Social Media Data
                                                    Media                            Social Media Policy
                                                                                       Developement
            Integration, interfaces                 Quick Scan                         Policies, Guidelines
                                                    Based on Ernst & Young
                                                    Social Media Governance
                                                    Maturity Modell
                   Social Media                                                   Social Media Risk
                   Technology                                                        Awareness
               Architecture, platform,                                           Threats, gaps, areas of
                  mobile devices                                                     improvements
                                                         Social Media
                                                          Monitoring
                                                         KPI, Measuring,
                                                           Monitoring



15.2.2013               25            Liiketoiminnan lait -seminaari
                                      Turvallinen ja tehokas sosiaalinen media
CV Peter Katko

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


             ►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)



15.2.2013   26          Liiketoiminnan lait -seminaari
                        Turvallinen ja tehokas sosiaalinen media
Ernst & Youngin Liiketoiminnan lait -seminaari 14.2.2013 Helsingissä, Peter katko

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Ernst & Youngin Liiketoiminnan lait -seminaari 14.2.2013 Helsingissä, Peter katko

  • 2. Variety of Social Networks Publish MMO Share Social Discuss Games Social Virtual Media Social Net- Worlds works Micro- Lifecast blog Life- stream 15.2.2013 2 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 3. Social Media‘s many opportunities for a company Opportunities Social Media Social Media CRM for Internal Communication Social Media for Social Media Social Media for Internal Knowledge for Customer Public Relations Sharing Feedbacks Social Media for Social Media for Recruiting Innovation and Social Media for Social Media for Crowd Sourcing Branding and Internal Trainings Marketing Social Media External Internal in the view view Enterprise Reputational Operational Risks regarding Risks regarding Social Media Regulations Social Social Media Engineering Compliance Strategic Security Risks regarding Risks regarding Social Media Social Media Privacy Risks 15.2.2013 3 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 4. How enterprises are affected Pressure Impact New market entrants Market & competitive positioning Disruptive business models Pricing & Business model Strategy Blurring of friends vs. foe Eco-system orchestration Loss of control Marketing / Customer segmentation & strategy Chameleon consumers Sales & Service Cross-channel customer experience blueprint Front office silos exposed Marketing, Sales & Service effectiveness Operations & Supply Demand for flexibility & innovation Chain Lean process design Orchestration of complex eco-system Supplier & Partner networks Focus on agility and information flow IT & Technology Increased business demands Cloud Computing / delivery approach Explosion of data Information & data Rogue IT purchasing Integration & Security HR / Finance & Risk Increased business demands Recruitment, Learning & growth Do more with less Org model, Performance & incentives Transparency of everything Compliance & Risk 15.2.2013 4 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 5. Social Media risk areas 15.2.2013 5 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 6. Social Media and an enterprise Company User Agreement Chef Provider of Social HR Marketing Media Network Advertisment Services User Agreement User Agreement Employees Social Media Network Applicant Third Parties In SMN Third Parties 15.2.2013 6 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 7. Social Media‘s organizational impact 15.2.2013 7 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 8. Dimension 1: Official social media sites The public 1. Organisations use Social Media channels Company 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?  … 15.2.2013 8 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 9. Companies use Social Media ► + June 2010 - Migros Since Social Media Products Directory Migipedia ► - 2011 - Pril labels May competition with User Rating 15.2.2013 9 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 10. Social Media and data privacy ► Applications (Google AdSense, Google Analytics, transmission of directories, etc.) ► Social Media Networks ► Company Chats Chef Marke- HR ► Employee monitoring ting Employees Social Media Network Applicant Third Parties In SMN Third Parties 15.2.2013 10 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 11. Unfair competition, astro turfing ► Unfair competition and selling practices 15.2.2013 11 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 12. Intangible assets in Social Media Networks ► Example: Ernst & Young Facebook Profile Image rights Copyright on text IPR on trademarks and logos 15.2.2013 12 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 13. Personality rights, sector specifics Personality rights 15.2.2013 13 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 14. Dimension 2: Employees are communicating Social Web Company 2. Employees communicate via Social Media channels 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?  … 15.2.2013 14 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 15. 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! 15.2.2013 15 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 16. The right to use of Social Media on the job? Company Chef Marke- HR ting Ways how a Company may act: Employees Social Media Network Use for business and Private use neither Use permitted without private purpose Only use for business No business or private possible nor any restrictions. permitted, however with purpose permitted use permitted permitted limitations ► Recommendation: In any case, issue a policy on the use of SMN ► Employee training for the use of Social Media Networks. 15.2.2013 16 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 17. Identity / account fraud Own your account. Be careful with accountgrabbing. 15.2.2013 17 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 18. 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 Chef Marke- HR ting Employees Applicant Social Media Network Third Parties In SMN Third Parties 15.2.2013 18 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 19. Dimension 3: Externals are communicating Social Web There are discussions about the company on social media channels  Are all relevant social media Company 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 15.2.2013 19 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 20. 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 15.2.2013 20 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 21. 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! 15.2.2013 21 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 22. Social Media Monitoring and Web-Crawling ► Social Media Monitoring ► Web-Crawling 15.2.2013 22 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 23. Social Media pillory ► A law firm planned to publish the names of users illegally downloading pornographic material ► Prohibited 15.2.2013 23 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 24. Social Media Governance depending on perspective Social Media Strategy The public 1. Organisations use Social Company or public Media channels instution Social Media Policy 2. Employees communicate via Social Media channels Social Media Awareness 3. External comment on the company through Social Media Social Media Assessment Social Media Monitoring 15.2.2013 24 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 25. Ernst & Young – Social Media Strategy & Governance Approach Social Media Strategy SWOT, Goals, KPIs Social Media Risk Social Media Management Sourcing Threats, gaps, areas of Insourcing, outsourcing improvements Social Social Media Data Media Social Media Policy Developement Integration, interfaces Quick Scan Policies, Guidelines Based on Ernst & Young Social Media Governance Maturity Modell Social Media Social Media Risk Technology Awareness Architecture, platform, Threats, gaps, areas of mobile devices improvements Social Media Monitoring KPI, Measuring, Monitoring 15.2.2013 25 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media
  • 26. CV Peter Katko Telefon +49 89 14331 25951 Mobil +49 160 939 25951 E-Mail Peter.katko@de.ey.com ►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) 15.2.2013 26 Liiketoiminnan lait -seminaari Turvallinen ja tehokas sosiaalinen media