The document discusses the implications of social media on businesses, including internal communication, customer engagement, and branding strategies. It highlights the risks associated with social media use, such as data privacy, compliance, and employee conduct, while emphasizing the need for effective governance and monitoring practices. Additionally, it explores the impact of social media on external interactions, reputation management, and the evolving competitive landscape in various industries.

2. Variety of Social Networks
Publish
MMO Share
Social Discuss
Games
Social
Virtual
Media Social
Net-
Worlds
works
Micro-
Lifecast
blog
Life-
stream
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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
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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
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5. Social Media risk areas
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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
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7. Social Media‘s organizational impact
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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?
 …
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9. Companies use Social Media
►
+ June 2010 - Migros
Since
Social Media Products Directory
Migipedia
►
- 2011 - Pril labels
May
competition with User Rating
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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
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11. Unfair competition, astro turfing
► Unfair competition and selling practices
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12. Intangible assets in Social Media Networks
► Example: Ernst & Young Facebook Profile
Image
rights
Copyright
on text
IPR on
trademarks
and logos
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13. Personality rights, sector specifics
Personality rights
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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?
 …
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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!
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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.
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17. Identity / account fraud
Own your account.
Be careful with
accountgrabbing.
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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
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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
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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
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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!
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22. Social Media Monitoring and Web-Crawling
► Social Media Monitoring
► Web-Crawling
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23. Social Media pillory
► A law firm planned to publish the
names of users illegally
downloading pornographic material
► Prohibited
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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
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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
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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)
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