Had the pleasure of chairing a roundtable earlier today on the risk management aspects of social networking and Web 2.0 – the other panelists were Craig Carpenter, the VP & general counsel of Recommind, and Antony Corsi, a partner with Fulbright & Jaworski LLP in London. Here's the formal release that came out of the event, along with some graphics.
The release is self explanatory and confirms what many people suspected – that a lot of organisations still don't 'get' Web 2.0; are not using it properly; appear to be hoping that if they ignore it, it will go away; and – in the case of those organisations trying to curb its use – seem unaware people can access all of these technologies on home computers (and an increasing number on mobile phones, Blackberrys, iPhones etc). It's also interesting to see that 70% are delegating responsibility to IT departments – what, they are letting the techies determine their risk management policy? And, that only 17% are giving the job to legal departments – yes, we know how computer literate lawyers can be! However there is a more serious point here and that is policy should actually be determined at a senior management level, with consultation with the IT and legal departments on its implementation and enforcement. And also check out last Wednesday's Orange Rag coverage of the EIU's "technology democracy" report www.theorangerag.com/blog/_archives/2009/9/23/4329923.html
Recommind today released the results of its recent research into Web 2.0 and social networking habits in UK businesses*. Although many firms already recognise the business benefits of using applications like Twitter, LinkedIn and instant messaging (IM) in a corporate environment, research indicates that an alarming proportion (89%) have no dedicated guidelines in place to control the use of these tools and, ultimately, the spread of information through Web 2.0 channels – an oversight that could put UK companies in grave danger of uncontrollable information risk.
Recommind’s research indicates that although more than half (51%) of UK businesses surveyed are well aware of the data leakage risks associated with Web 2.0 and social networking use, most still overlook the risks posed by an increasingly stringent regulatory climate and the knock-on impact of investigations and e-disclosure requests. Indeed, just 23% of respondents were concerned about their ability to access and preserve information found on these sites and used with these tools. Unless this lax attitude is promptly addressed, Recommind maintains that companies could face serious problems in the near future, including failure to control the flow of sensitive corporate information, an inability to comply with increasingly common regulatory investigations and exorbitant costs when faced with an e-disclosure event. With the usage of such tools by corporate employees skyrocketing, their increased relevance in near-term litigation and investigations is virtually assured.
“Businesses need to think very carefully about how best to address the increasingly mainstream usage of these tools by their staff. In a Web 2.0 world communication is instant, but information can get divulged, co-opted or misconstrued very easily, leaving organisations wide open to information risk,” said Craig Carpenter, VP & general counsel at Recommind. “We’ve already seen numerous cases of employees being reprimanded for discussing proprietary information on sites like Facebook, while a major US network was recently reprimanded when one of its journalists leaked off-the-record commentary from President Obama via his Twitter feed. Firms must ensure their employees are fully aware of the possible ramifications of using these tools in such a dynamic and evolving technological landscape. And while having a company policy in place is common sense, any such policy is only as effective as its enforcement.”
The independent research, which was carried out by Vanson Bourne, questioned CIOs and IT directors in UK firms with more than 1,000 employees on the Web 2.0 and social networking habits within their organisations. Of those surveyed, many are already using social networking tools within their company – 44% are utilising these tools to communicate and share information with colleagues around the world, while a quarter of respondents use these applications for day-to-day business activities, such as marketing and sales, business development and company research.
However, research shows that employees at less than a quarter (23%) of firms surveyed are using Web 2.0 and social networking tools for external communications and networking, while just 17% use these applications to locate people and expertise within the organisation. A surprisingly low set of figures, given that more than half (59%) cited external communications as the biggest benefit Web 2.0 can bring, with almost a third stating that social networking could enable employee knowledge and expertise to be used to its full advantage.
In today’s economic climate, knowledge is the ultimate currency – but Recommind’s research illustrates that employees’ expertise, or ‘tacit knowledge’ as it is widely termed, still remains a largely untapped resource, while only one in five respondents recognised the value social networking could bring in terms of gaining insight into industry knowledge, including partners and customers. With all this in mind, it would be fair to say that the 42% of companies surveyed who do not allow staff to use these tools within the corporate environment are missing out on major internal and external business opportunities.
“It’s clear that organisations are starting to integrate Web 2.0 processes into their everyday corporate activities, but this use is still largely for limited internal purposes – businesses are just scratching the surface of what these tools are capable of,” continued Carpenter. “Firms need to get Web 2.0 savvy as these applications continue to grow in popularity and usefulness in the business realm. Companies risk losing a competitive edge if they restrict access outright in the workplace, so control is the key to maintaining both the corporate advantage and also ensuring that the organisation has adequate procedures in place to protect against information risk.”
“There is no doubt that Web 2.0 tools have become an interesting challenge for organisations across all sectors – communication via such tools is instant, has a wide impact and the business potential can be huge. However, without proper corporate regulations in place these tools can present a great danger to a company’s reputation and a risk to its information security,” said Mike Davis, senior analyst at Ovum. “Web 2.0 and social networking applications used in a business context contain corporate information and must be managed with both discretion and control. Today’s increasingly stringent regulatory climate means that it is more important than ever for firms to take care of their data –whether this is ensuring that all relevant material is preserved and accessible should they be faced with legal action, or preventing information leakage via careless employee use – without guidelines in place the consequences could range from embarrassment to business failure.”
Findings also uncovered that more than two thirds (70%) of firms surveyed believe that responsibility for implementing and enforcing Web 2.0 policies lies solely with the IT department, compared to the legal department at 17% of companies. Although each department has its own set of priorities, Recommind maintains that a more collaborative approach is needed as these tools come to the forefront. Without this cooperation, there is a danger that the IT team will not recognise or fully comprehend which information should be preserved, disclosed or discarded, while the legal department needs assistance to help ensure any technology processes and systems are accurate and up to the job.
“Such responsibility on one department alone is unrealistic – there needs to be more collaboration between the IT and legal departments,” said Carpenter. “Legal departments must step up and become more involved in crafting and enforcing Web 2.0 policies, especially since they are often better placed to understand what information can and cannot be kept or shared on the corporate network. Simply put, a combination of expertise is critical to organisations’ success in today’s regulatory environment.”
* Survey of 100 CIOs & IT directors at UK enterprises with more than 1000 employees conducted by Vanson Bourne in August 2009.
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Wednesday, September 30
Social networking & Web 2.0 - most UK businesses lack a strategy
by
Charles Christian
on Wed 30 Sep 2009 15:28 BST
 1 Attachments
Publishers prices - about half say no change in rates
by
Charles Christian
on Wed 30 Sep 2009 00:40 BST
SWETS, the legal library and subscriptions services company - it currently has about 39,000 journal titles in its catalogue - reports the following data after asking publishers of all sizes what their response was in pricing terms to shrinking library budgets. Roughly have the publishers will not increase their prices at all in 2010 and the remainder say prices will not increase by more than 5%. About 45% of publishers said they expected their sales revenues to decline next year and another 25% expected it to remain at current levels. By the following year - 2011 - the number of publishers predicting declining revenues has fallen to less than a quarter, while 42.5% were expecting revenues to grow by in the region of 5%.
* By way of a footnote, a consultant told us one reason why LexisNexis Axxia and Visualfiles may not have enjoyed the success they might have expected in the corporate sector is that the person responsible for legal library and subscription sales is frequently the same person who controls the inhouse counsel/legal department's IT budget - and they are feeling antagonistic towards LexisNexis because that company has increased some of its subscription rates. Monday, September 28
More webinars for your diary
by
Charles Christian
on Mon 28 Sep 2009 16:47 BST
Here are some more webinars for your diary – this time from DocAuto. These are not 'live' links so please copy and paste them into your browser...
October 7, 2009 - Content Management for WorkSite Using WorkSpace Manager https://www2.gotomeeting.com/register/508215058 October 14, 2009 - WorkSite Monitoring with Watchdog Server https://www2.gotomeeting.com/register/344664723 October 15, 2009 - Putting Your Data to Work for You in WorkSite https://www2.gotomeeting.com/register/834886026 October 22, 2009 - E-mail Lifecycle Management: Plan Before the Pile-Up Begins https://www2.gotomeeting.com/register/937065491 October 28, 2009 - E-mail Management for WorkSite Using OutiM Server https://www2.gotomeeting.com/register/225560771
New compliance case study
by
Charles Christian
on Mon 28 Sep 2009 12:50 BST
Here's a new case study showing how Shulmans in Leeds have cut the cost of client identity verification compliance (know your client, anti-money laundering regulations and all that) by more than 45%.
1 AttachmentsFriday, September 25
Webinar to watch on Monday
by
Charles Christian
on Fri 25 Sep 2009 18:00 BST
TimeKM is hosting a live webinar for ILTA Members on September 28 at 12:00 EST (17:00GMT). Session Title: Consumer Based Technologies an Opportunity to Engage the Firm.
Description: The proliferation of consumer technologies has engaged the modern professional on a personal level like never before. This provides an ideal opportunity for law firms to engage their attorneys with technology and in turn better position it as a competitive advantage for the firm. The famous quote "Attorneys will not use it" is being challenged every day. However, the bar has been set high by consumer trends, technologies, and innovative rich interfaces, thus forcing traditional business applications to step up to get into the game. See how TimeKM is identifying key consumer technologies and leveraging them within traditional business applications to increase adoption rates. Technologies such as web 2.0 (including instant messaging), mobility, and telephony are prime examples that will be demonstrated in the context of TimeKM's capture environment. This session attempts to unify the personal consumer experience with the professional needs in the business environment, resulting in increased adoption by attorneys, thereby propelling technology up the strategic ladder in law firms. To register for this meeting cut & paste this link into your browser: https://pensera.webex.com/pensera/j.php?ED=110726767&RG=1&UID=1018329537&RT=MiMxMQ%3D%3D
Butterworths Alt legal IT event gets good reception
by
Charles Christian
on Fri 25 Sep 2009 08:26 BST
The Butterworths Alternative Legal IT Conference which took place at the end of last week seems to have received a good (well goodish) reception. We say "seemed" as obviously we haven't heard a squeak from the organisers (never seems to occur to them to follow up an event with a post-match report for the benefit of people who weren't there, with a view to encouraging them to attend the following year – its called marketing) but we had our spies on the ground. Although there were some grumbles – one person told us "Day two got off to a bit of a naff start – the agenda was changed and one of the sessions (HR implementations cancelled) so there were a few moans around the table." Plus we also heard complaints the venue was difficult to get to, particularly if you were travelling by train from the North of England – however this report (from a top 100 firm delegate) seems to best sum up the experience...
"One of the better conferences I have been too. As it was aimed at the smaller law firms, the audience was made up of a lot of people that I hadn't met before (and firms I hadn't heard of!) rather than the usual suspects who do tend to dominate these things. The topics were interesting and well delivered by the speakers. The mix of presentations and round table discussions was spot on and there was a lot of interaction, particularly in the round table sessions, giving an interesting and varied discussion. Whilst there is always IT jargon to decipher, I found this conference to be particularly plain speaking and not too techie – some of the bigger conferences get carried away with the detail of how things work rather than the principles involved. And it wasn't all about solutions – the discussions on how IT interacts with the business, the pressures that businesses are currently facing and how IT can support that and the effect of the Legal Services Act were topics that I found particularly thought-provoking and insightful. It was a very relaxed and informative conference that I would definitely recommend attending. Whilst there were suppliers present, they weren't pushy or in your face and blended into the conference very well. No hard selling!!" We also asked David McNamara from SOS (one of the suppliers who were present – Pilgrim were also there) for his views. He said "As one of the sponsors of The Alternative Legal IT Conference, we were very pleased with the event overall and found it extremely useful to attend. In particular, the roundtable discussions immediately after lunch on the first day were a great opportunity to share views and thoughts and the presentations on the second day, in which IT directors from several firms outlined their particular configuration of systems in use and their current projects and priorities, was very enlightening. From SOS's viewpoint, it helped to confirm that we do indeed have a very strong product offering and strategy for the mid-tier firms, that can address many of the key issues highlighted". Thursday, September 24
Elite's London/international event gets record turnout
by
Charles Christian
on Thu 24 Sep 2009 09:03 BST
News in on the recent Elite
bi-annual international user group meeting in London earlier this month. There were 134 attendees from 62 law firms – including representatives from Dubai,
Paris, Amsterdam, Channel Islands, Helsinki and Berlin.
The event used a case study format. Elite featured 17 different sessions with 22 separate presenters,
which included customers, Elite experts and Baker Robbins. The morning Elite
Enterprise workshop offered a preview of new features and business process
reviews, while the Elite 3E workshop presented customization options and tutorials
on dashboard metrics. “Our International User Group grows more popular each year because we
provide real-world solutions to issues our clients are experiencing. Sponsoring
these events benefits Elite because we can continually enhance our solutions
based on direct feedback from these sessions,” said Kim Massana, senior V-P & general manager, Elite. Wednesday, September 23
September issue of Legal Technology Insider out now
by
Charles Christian
on Wed 23 Sep 2009 15:18 BST
The September issue of the Legal Technology Insider newsletter (UK + EMEA edition) is out. The digital edition has already landed on desktops and the print edition should be with the rest of our 18,000 readers from tomorrow. The next issue is published on 22 October.
Economist Intelligence Unit says UK biz not ready for "technology democracy"
by
Charles Christian
on Wed 23 Sep 2009 11:18 BST
Here's an interesting argument some IT departments might like to run by their managements and partnerships... according the Economist Intelligence Unit European businesses are not ready for "technology democracy". Here's the announcement...
A "quiet revolution" is under way in businesses, as employees are demanding "technology democracy" – the power to use the technology applications and devices of their choice in order to perform their work. In so doing they are challenging the technology status quo in their organisations, whereby the IT function dictates which technologies may be used by staff, procures them centrally and sets the rules for their use. But European companies are not entirely ready to embrace technology democracy: 47% of European executives surveyed by the Economist Intelligence Unit say that management of their firms resist extending greater technology freedom to employees. A similar number claim that management is supportive, but the fact that few companies provide training to staff in the workplace use of, for example, personal communications devices and social networking applications suggests that readiness for technology democracy is not high. This pressure will mount on corporate and IT management as a younger cohort of employees-reliant on social networking, messaging and other personal networking technologies to conduct their work-permeates organisations. "Companies will inevitably lose some control over IT use as a result, but this will be no bad thing provided the risks are managed," believes Denis McCauley, Director of Global Technology Research with the Economist Intelligence Unit. "The best business innovations tend to originate at the grassroots level, and employees should be encouraged to use their technology know-how to generate them." These findings are highlighted in a new study published today by the Economist Intelligence Unit and sponsored by Trend Micro, entitled Power to the people? Managing technology democracy in the workplace. Other conclusions of the study are highlighted below. • Innovation and morale stand most to benefit from technology freedom. 42% of European executives (and fully half of those from the UK) say they are prepared to deal with the risks of technology democracy in order to reap the business benefits. The chief gains, they believe, will come in the form of better grassroots innovation, as well as higher morale on the part of employees who are trusted to make at least some technology decisions for themselves. • The risks are real but can be managed. The fears of executives who resist according greater technology freedom are not misplaced. Many employees have wasted valuable work time using Web 2.0 applications for personal purposes, and companies have been damaged by sensitive information appearing on blogs, for example. Respondents agree that the biggest risks from technology democracy are lower productivity, the loss of confidential information and an increased vulnerability to viruses. • Keeping technology chaos in check requires clear rules. Where any degree of democracy exists, technology freedom must be supported by clear rules and regulations to prevent a descent into chaos. The most important means of minimising productivity loss and security risks include conducting regular and mandatory training courses for employees, developing formal guidelines and continuing the work of upgrading network defences. • Firms must provide better training on using new technologies. Most executives in the survey claim that their firms have drafted IT policies to govern employees’ use of devices, applications and websites in the workplace. But few have begun to instil these guidelines in the minds of employees: no more than 21% of surveyed firms provide training on the use of personal communications devices, and only 17% do this in regard to social networking applications. More worryingly, no more than one-fifth have plans to do so in the future. • Some IT decentralisation may be needed to manage the security risks. When asked their view on the implications of greater technology freedom for the IT function, survey respondents’ reply that the delegation of responsibility for information security to individual business units is the most likely outcome. This would allow the IT function to focus on other tasks, such as the management of firewalls and other aspects of physical network security and tracking new external threats. Power to the people? Managing technology democracy in the workplace is available free of charge at www.eiu.com/sponsor/TrendMicro/Technology_democracy |
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