Social Media Presentation Gt Vfinal

© Grant Thornton LLP. All rights reserved. © Grant Thornton LLP. All rights reserved.

SOCIAL MEDIA IN THE ENTERPRISE

by Danny Miller, Principal & National Practice Leader

Cybersecurity & Privacy

Regional Practice Leader – Business Consulting

April 2012

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LEARNING OBJECTIVES • Advantages of using Social Media and

associated Risks

• Using Social Media in Marketing – the case for

innovation in social media

• Coaching personnel on using social media

• Creating policies for social media in the

enterprise

• Identify activities that should be considered

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WHAT IS SOCIAL MEDIA? • Social networking

– Social profiles

– Social network analysis

• Social collaboration

– Wikis

– Blogs/micro blogs

– Collaborative office

• Social publishing

– Content sharing

– Content aggregation

– Social publishing

• Social feedback

– Social rating, ranking, commentary

– Social content structure

Social media is an online environment created for

the purpose of mass collaboration, enable content production,

sharing and interactive, influencing dialogue.

Social technologies enable

social media

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Social media landscape can be overwhelming if there isn't a clear purpose, objective, and focus

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WHY IS THIS IMPORTANT? • 90% of US B2B decision makers use social media in their

buying process

• 59% of B2B buyers engaged with peers who addressed

their challenge, 48% followed industry conversations on

the topic and 37% posted questions on social networking

sites looking for suggestions

• The Internet is the C-Suite's top information resource

(74% of C-Level executives say it’s very valuable)

• 53% of C-level executives said they prefer to locate

information themselves

• 6 out of 10 C-Suite executives conduct more than six

searches a day

Source: Buyersphere ebook, Enquiro

Forrester Research, How to take B2B

relationships from Indifferent to Engaged: Jan

2009

Forbes Insight – The Rise of the Digital C-Suite

June 2009

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WHAT IS THE VALUE?

• Enhance brand awareness

• Increase word of mouth referrals

• Share information with current and prospective

business partners

– Develop new business

• Strengthen customer relationships

– Cross sell services

• Help people find and work better with company

• Help to find talent to work for the company

Colleagues

Networks

Friends Teams

Personal

Professional

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Over 160 million people per month (50% of total U.S. population) use social media

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Enterprises "micro-segment" their audiences by creating multiple social media accounts

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As an extreme example, the U.S. Marines have 300 social media accounts

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Use of social media is expected to increase significantly over the next 12 months

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HOW DO YOU BUILD INNOVATION USING SOCIAL MEDIA?

• Increase the velocity of direct communication with clients

• Ability to bring a "viral" message to organizational culture, products or something key to

the organization's strategic priorities

• Take advantage of "social analytics" to understand your audience and better focus on your

customer base

• Control the message related to your organization

• Ability to monitor and understand customer perceptions of the company's brand

• Better visibility, online exposure and increased traffic to website

• Opportunity to build relationships and intimacy with customers

• Ability to measure the frequency of the discussion about the brand

• Early warning of potential product or service issues

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SOCIAL ANALYTICS

• Purest form of Customer Relationship Management (CRM)

• Purpose is to create an intimate connection between your company, products, employees

and culture to a target group

• Ability to receive data from constituents in real-time

• Case Examples

– Predicting product returns based on feedback

– Harvest information on trends, preferences

• Taking "big data" from different sources to produce valuable insight into sales, demand,

returns and trends that would help drive supply chain behavior

• Understand the loyalty loop (keeping customers close and coming back) using information

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SOCIAL MEDIA STRATEGY

• First step is to understand the company's business plan and the overall strategy of the

business

• A social media strategy must align to the business's overall goals and objectives

• Gauge and balance the risk of embracing social media to innovation benefits

• Decide what you want the world to know about you and then define how to get the

message out through social media outlets

• Have a risk mitigation plan in place before you implement your social media entrance

• Decide what are the definable benefits of entering into social media

• Develop a policy for the company in using social media

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WHAT ARE THE RISKS?

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How concerned are executives about potential risks of social media?

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The concerns are justified by review of significant social media crises

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A broken guitar attracts over 10 million views.

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Preparedness: More than half (61%) of respondents indicated their organizations do not have an incident management plan

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Preparedness: More than three-quarters (76%) of respondent companies do not have a clearly defined social media policy

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SOCIAL MEDIA POLICY: KEY POINTS

• How should employees respond to company references in social media?

• How should employees represent themselves?

• Who should officially communicate on behalf of the company?

• When to fact check something (references to legal issues)?

• Guidelines to avoid conflict

• Prohibiting the sharing of non-public financial and personal information

• Properly crediting sources

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SAMPLE SOCIAL MEDIA POLICY

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Marketing is most often responsible for monitoring the social media policy.

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COBIT PROCESSES FOR MANAGING IT (Including Social Media)

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CONCLUSION

• Social media and its associated analytics provides another tool to assist enterprises in

enhancing their connection to customers and to drive innovation and profit

• Many executives in the survey acknowledge there is risk involved in social media, yet this

risk has not been well defined for them

• Governance structures to monitor compliance and manage risk associated with social media

trends are emerging

• As the negative incidents associated with social media begin to receive public attention,

senior leaders will need to react – and look for thoughtfulness and good planning

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ACTIVITIES YOU SHOULD CONSIDER

• Perform a periodic social media audit

– Risk management

– Policies

– People/Awareness

– Processes

– Technology

• Develop a governance strategy that addresses:

– Strategy development

– Policy development

– Training

– Monitoring and enforcement

• When launching a new social media tool, perform a risk assessment

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CONTACT INFORMATION

Danny Miller, CISA, CGEIT, CRISC, ITIL, QSA

National Practice Leader - Cybersecurity and Privacy

Grant Thornton, LLP

A QSA Company

[email protected]

215.622.3155

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GRANT THORNTON/FEI SOCIAL MEDIA SURVEY

• Survey of 141 senior financial executives along with in-depth interviews conducted by the

Financial Executive Research Foundation

• Interviewees roles included CFO, COO, CRO, EVP and VP of finance

• Industries included retail, advertising, life sciences, manufacturing, recycling, financial

services and consulting

• 97% of respondents' companies were headquartered in the US

• Participants were questioned about the following areas:

– opinions regarding social media

– use of social media

– concerns about the risks surrounding social media

– social media policies

– concerns about identity theft and data security