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Web 2.0
A Complex Balancing Act
The First Global Study on Web 2.0
Usage, Risks and Best Practices
Executive Summary
Web 2.0: A Complex Balancing Act                                                What are Web 2.0’s leading trends in business? Defined broadly as consumer
The First Global Study on Web 2.0 Usage,                                        social media applications such as Facebook, Twitter and YouTube, and
Risks and Best Practices                                                        specialized Enterprise 2.0 solutions, Web 2.0 has become a term surrounded
                                                                                by many debates: To adopt or not? How can organizations use Web 2.0
                                                                                technologies? What are the business benefits? Will Web 2.0 use increase or
                                                                                decrease employee productivity? Is the security risk worth the benefits?

                                                                                In collaboration with experts in the fields of security   of it; 25 percent monitor use; and 13 percent
                                                                                and social media, McAfee took a close look at these       block all social media access. Social network sites
                                                                                questions. Commissioned by McAfee, Professors             are regarded as the main security threat of all
                                                                                Mihaela Vorvoreanu and Lorraine Kisselburgh from          social media tools. As a result, nearly half of the
                                                                                Purdue University and the Center for Education and        organizations we surveyed block Facebook.
                                                                                Research in Information Assurance and Security
                                                                                (CERIAS) undertook extensive research with experts        Organizations need to employ a variety of measures
                                                                                from around the globe.                                    to ensure safe use of Web 2.0. Social media policies
                                                                                                                                          and technological protection are the two primary
                                                                                International research firm Vanson Bourne surveyed        measures used today. Two thirds of organizations
                                                                                more than 1,000 organizational decision-makers            worldwide have social media policies for
                                                                                in 17 countries worldwide, and combined with              employees, and 71 percent of those use technology
                                                                                expert interviews, we developed an in-depth               to enforce them. However, that leaves one third of
                                                                                study of emerging policies and practices into how         organizations without a social media policy, and
                                                                                organizations balance the risks and benefits of           almost half of the organizations lack a policy for
                                                                                using Web 2.0 technologies.                               Web 2.0 use on mobile devices.

                                                                                Our findings show high Web 2.0 adoption. Three            To address these challenges, many organizations
                                                                                out of four organizations worldwide use Web               have increased security protection since introducing
                                                                                2.0 for a variety of business functions such as IT        Web 2.0 applications. Seventy-nine percent
                                                                                (51 percent), marketing and sales (34 percent),           increased firewall protection, 58 percent introduced
                                                                                customer relations (29 percent), advertising and          greater levels of web filtering, and 53 percent
                                                                                public relations (28 percent) and human resources         implemented greater web gateway protection. Two
                                                                                (22 percent). The main driver for Web 2.0 adoption        out of five organizations are budgeting for Web
                                                                                is new revenue potential, according to two thirds of      2.0-specific security solutions.
                                                                                our respondents. Only 42 percent of those surveyed
                                                                                felt strongly about the importance of present             Security experts strongly recommend a multi-
                                                                                Web 2.0 tools. While organizations acknowledge            layer security approach that’s customized for Web
                                                                                revenue potential and business value in Web 2.0           2.0-specific challenges to mitigate adoption risks.
                                                                                technologies, leaders and decision makers debate          Eugene Spafford, founder and Executive Director
                                                                                employee use of Web 2.0 in the workplace —                of CERIAS at Purdue University, notes that “the
                                                                                either in the office or on the road.                      best protections are those that don’t get in the way
                                                                                                                                          of getting work finished, because users are not
                                       CONTENTS                                 Security is the leading issue. Half of the                tempted to circumvent those controls. As not all
                                                                                organizations say it is their primary concern for         information needs to be protected in the same way,
                                       Executive Summary                   3    Web 2.0 technologies. For another third, security         and not all users are going to interact with Web 2.0
                                                                                is the main reason they don’t use Web 2.0 more            technologies in the same manner, defenses should
                                       Introduction                        4
                                                                                widely. Six out of 10 organizations suffered large        be tailored to fit the circumstances of use.”
                                       Web 2.0 Adoption in Organizations   5    losses averaging $2 million each because of security
                                                                                incidents during the past year. Together, more than       Executives and industry experts agree that
                                       Employee Use of Web 2.0             10   $1.1 billion was lost by these organizations due to       successful organizational use of Web 2.0 is a
                                                                                security incidents.                                       complex balancing act. It requires analyzing
                                       Balancing Act                       18                                                             challenges and opportunities while mitigating
                                       Conclusion                          24   One of the main sources of security threats is            risks, and combining policy, employee training and
                                                                                employee use of social media. Thirty-three percent        technology solutions to ensure security.
                                       Appendices                          26   of organizations worldwide restrict employee use



                                                                                                                                                            Web 2.0: A Complex Balancing Act    3
“By 2014, social networking
                                                                                                                                                                                                                 Energy use for spam (kWh/year) per email user
                                                                                                                                                                                                                              services will replace e-mail as the
                                                                                                                                                                                                                 Percent of email received that is spam

                                                                                                                                                                                                                              primary vehicle for interpersonal
                                                                                                                                                                                                                              communications for 20 percent of
                                                                                                                                                                                                                              business users.” [Gartner (2010).
                                                                                                                                                                                                                              “Predicts 2010: Social Software Is
                                                                                                                                                                                                                              an Enterprise Reality.”]




                  Introduction                                                                                           Web 2.0 Adoption in Organizations
                  Web 2.0 — defined here broadly as consumer social media applications such                              Our survey shows high adoption of Web 2.0 in the enterprise. More than 75
                  as Facebook, Twitter and YouTube, and specialized Enterprise 2.0 solutions —                           percent of organizations reported using Web 2.0 solutions for many business
                  has become a term surrounded by many debates: To adopt or not? How can                                 functions. While adoption rates vary across countries, they were high overall,
                  organizations use Web 2.0 technologies? What are the business benefits?                                and reached 90 percent or higher in Brazil, Spain and India. Web 2.0 adoption
                  Will Web 2.0 use increase or decrease employee productivity? Is the security                           was lowest in the United States and the Commonwealth countries of the
                  risk worth the benefits?                                                                               United Kingdom, Australia, and Canada.


                  McAfee, in collaboration with communication        emerging technologies at infrastructure and         Survey data confirmed market research group           Web 2.0 Adoption Rates by Country
                  media and IT security experts, and with the help   employee levels. In balancing these challenges      Gartner’s anticipated trend: “By 2014, social
                  of international research firm Vanson Bourne,      and opportunities, the report discusses measures    networking services will replace e-mail as the                                                                               Organizations who use Web 2.0 for business (%)
                  investigated these questions. A survey of more     organizations take to ensure safe use of Web 2.0.   primary vehicle for interpersonal communications
                  than 1,000 organizational decision makers          The survey data and expert opinions corroborate     for 20 percent of business users.”                    100%

                  from 17 countries, and in-depth interviews         that while Web 2.0 has considerable value, using    [Gartner (2010). “Predicts 2010: Social Software Is    80%
                  with experts, paint a complex picture with         Web 2.0 applications successfully is a balancing    an Enterprise Reality.”]
                  two main Web 2.0 issues: the opportunities         act that requires a combination of technology,                                                             60%

                  provided to organizations that have adopted        policy and education.                               Web 2.0 solutions are used for a variety of
                  Web 2.0, and the challenges of embracing                                                               business purposes. About half of the organizations     40%

                                                                                                                         surveyed employ Web 2.0 solutions for IT               20%
                                                                                                                         functions, and roughly a third of organizations use
                                                                                                                         them for marketing, sales or customer service. One      0%




                                                                                                                                                                                                                                                                                                    SNG

                                                                                                                                                                                                                                                                                                          India

                                                                                                                                                                                                                                                                                                                  Spain

                                                                                                                                                                                                                                                                                                                          Brazil
                                                                                                                                                                                                                                                                                           Mexico
                                                                                                                                                                                                                      Japan
                                                                                                                                                                                      Canada




                                                                                                                                                                                                                                                  Sweden

                                                                                                                                                                                                                                                           UAE
                                                                                                                                                                                                           USA




                                                                                                                                                                                                                                                                 France

                                                                                                                                                                                                                                                                          Poland
                                                                                                                                                                                                                              Germany
                                                                                                                                                                                               Australia



                                                                                                                                                                                                                 UK




                                                                                                                                                                                                                                                                                   Italy
                                                                                                                                                                                                                                        Benelux
                                                                                                                         in five organizations reported using Web 2.0 for
                                                                                                                         public relations or human resources — especially
                                                                                                                         recruitment. India leads in adoption of Web 2.0
                                                                                                                         for IT solutions, with about three out of four
                                                                                                                         Indian organizations reporting such use.




4   Web 2.0: A Complex Balancing Act                                                                                                                                                                                                                                                  Web 2.0: A Complex Balancing Act             5
Crowd-sourcing is one of the ways that companies are leveraging
Web 2.0 to create new revenue streams. InnoCentive is an online
crowd-sourcing company where organizations as large as Eli Lilly,
DuPont, Boeing, Procter&Gamble and NASA post research problems
in need of solutions. Scientists from all over the world, whether
                                                                                                                                                                                      The survey data suggests
amateur, professional, or retired, choose problems to work on
and post their solutions. Companies select a winning solution and                                                                                                                     that in 2010 Web 2.0
pay the scientist a cash prize ranging from $5,000 to $1 million,                                                                                                                     solutions are not perceived
depending on the problem’s complexity. InnoCentive enables                                                                                                                            as crucial to organizations.
companies to solve difficult research problems at a much lower cost
than their own R&D departments, and to have access to a diversity
of solutions, ideas and expertise that is unlikely to occur within just
one organization. http://www2.innocentive.com




                   New revenue streams emerged as the highest             Frank Gruber, co-founder of TECH cocktail,           The survey data suggests that in 2010
                   driver of Web 2.0 adoption. Three out of four          discusses some of the ways that companies            Web 2.0 solutions are not perceived as crucial                 Although Web 2.0 was not
                   organizations that use Web 2.0 reported that           are leveraging Web 2.0 technologies — and            to organizations. This is not surprising, given               considered extremely critical
                   expanded use of Web 2.0 technologies could             particularly the people participating in these       that some of the technologies have not reached               for many organizations in this
                   create new revenue streams for their organizations.    platforms — to facilitate production, marketing,     maturation, and uses are still being explored.              study, for one organization it is
                   This is especially true in Brazil, India, the United   and customer service:                                However, respondents see great potential for               vital. charity: water is a nonprofit
                   Arab Emirates and Mexico, where nine out of 10                                                              Web 2.0 in the future, and the data suggests that      organization that provides clean and
                   organizations share this belief. Even 65 percent       “For example, crowdsourcing has been used for        this belief drives adoption. Stowe Boyd, analyst       safe drinking water in the developing
                   of organizations in the public sector that already     design work, solving difficult problems and even     and business strategist, claims the real benefits of   world. It directs 100 percent of public
                   use Web 2.0 see revenue potential from using           to make product decisions. There are a number        Web 2.0 become apparent when adoption rates            donations to funding water projects.
                   it. However, perceived importance of Web 2.0           of companies leveraging Web 2.0 technologies         reach 90 percent. “The more people use social          charity: water does nearly all of its
                   solutions was tempered. Forty-two percent of           for social media marketing campaigns and for         tools, the more efficient the tools become,”           fundraising online and has no budget
                   respondents who reported using Web 2.0 solutions       customer service. Ford has been leveraging social    states Boyd.                                           for marketing or advertising. charity:
                   agreed they were important to business, but about      media and outreach to connect with a newly                                                                  water has raised more than $7.5 million
                   the same percentage was neutral.                       invigorated Ford Fiesta. Zappos leverages Web 2.0    In addition to supporting communication and            in its first two years of operation
                                                                          for customer service, because every employee         collaboration among employees, organizations           using mainly an online community
                                                                          has a Twitter account for customer support and       recognize the value Web 2.0 technologies bring         platform and social media. With the
                                                                          feedback. Intel works with bloggers to spread the    to clients and customer relations. About 40 to         power of social media alone, in 2009
                                                                          word about their innovations.”                       45 percent of organizations feel that Web 2.0          more than $250,000 was raised in a
                                                                                                                               improves customer service, and 40 percent feel it      single day when charity: water was
                                                                          Market pressure was not, overall, a big driver of    enhances effective marketing.
                   Three out of four                                                                                                                                                  the beneficiary of Twestival Global.
                                                                          Web 2.0 adoption. The exception is India and
                                                                                                                                                                                      This resulted in more than 55 water
                   organizations that use                                 Brazil where 78 and 58 percent, respectively,
                                                                                                                                                                                      wells in Uganda, Ethiopia and India,
                   Web 2.0 reported that                                  reported that customers and partners are
                                                                                                                                                                                      and touched the lives of an estimated
                                                                          requesting organizations to engage in Web 2.0.       “The more people
                   expanded use of Web 2.0                                                                                                                                            17,000 people. “Web 2.0 is the heart of
                                                                          Perceived market pressure was higher in the
                   technologies could create                              public sector, where almost half of organizations
                                                                                                                                use social tools, the                                 our operation and our primary source
                                                                                                                                                                                      of revenue. We’re a Web 2.0 charity,”
                   new revenue streams for                                feel it, as opposed to only a third in the private    more efficient the
                                                                                                                                                                                      says charity:water director of digital
                   their organizations.                                   sector. In the largest organizations, the pressure    tools become.”                                        engagement, Paull Young. charity:water
                                                                          to engage in Web 2.0 offerings was highest.
                                                                                                                                                                                      is a convincing example of the impact
                                                                          Almost half of large organizations reported
                                                                                                                                                                                      social media can have on ROI.
                                                                          partner or customer demand, compared to only a
                                                                          third of small organizations.




6    Web 2.0: A Complex Balancing Act                                                                                                                                                             Web 2.0: A Complex Balancing Act   7
McAfee CTO and vice president, Raj Samani, believes that more
                                                                                                                                                                                                          What accounts for Brazil’s high Web 2.0
companies should be concerned about security. He explains that
                                                                                                                                                                                                          adoption rate? Brazilian IT consultant and
the security landscape has changed. Whereas 10 to 15 years
                                                                                                                                                                                                          ICANN member, Vanda Scartezini, explains
ago data infiltration was the biggest concern, these days data
                                                                                                                                                                                                          that Brazilians tend to love novelty and are
exfiltration, good data going out, is the primary challenge. In an
                                                                                                                                                                                                          quick to adopt new technologies. At the
economy where information is the lifeblood of an organization,
                                                                                                                                                                                                          same time, Brazil is seeing “huge infection
preserving the confidentiality, integrity and availability of
                                                                                                                                                                                                          problems” originating from social media.
information is vital. Virus and malware protection is still important,
                                                                                                                                                                                                          Scartezini recommends that organizations
but data loss prevention is fast becoming an indispensable
                                                                                                                                                                                                          use more than one security software
component of an organization’s technology protection.
                                                                                                                                                                                                          applications to protect assets.




                    If Web 2.0 is useful for business functions, what       Large organizations paid even steeper costs for        Virus and malware infections are the most
                    is preventing organizations from using it more?         security breaches because of Web 2.0 usage. The        common types of security incidents. A third of
                    Security is the leading concern for Web 2.0             average loss for a large organization was $4.5         organizations experienced virus infections and
                    technologies. Half of the respondents name security     million, with an average reported loss around $10      almost a quarter experienced malware infections
                    risks as their primary concern with Web 2.0, while      million in Japan and Singapore, and more than          the previous year. In spite of concerns about data
                    a third identify fear of security issues as the main    $8.5 million in Canada. Large organizations in the     exfiltration, very few organizations (less than                        More than $1.1 billion was lost
                    reason Web 2.0 applications are not used more           United States have managed their security risks        one in 10) reported experiencing data leaks or                         by organizations surveyed due
                    widely in their business. Trepidation about security    better, and reported a relatively lower average loss   information overexposure. Security experts found                       to security incidents caused by
                    is higher than average in India and Brazil, two         of $1.7 million.                                       this percentage to be lower than expected, and
                                                                                                                                                                                                          Web 2.0 technologies.
                    countries with the highest Web 2.0 adoption rates.                                                             explain that respondents might be aware of or
                    Large organizations are twice as likely as small        Organizations in countries with high Web 2.0           report only the more serious incidents. Pamela
                    organizations to avoid using Web 2.0 because of         adoption such as Brazil, India and Mexico were         Warren, McAfee cybercrime strategist, stated,
                    security fears. With more employees and more            most likely to have experienced security incidents     “more data leaks might have happened, but they
                    complex infrastructures to protect, it is no surprise   and to report large losses. The average amount         are outside organizations’ awareness.”
                    that large organizations perceive higher risks. At      lost by Brazilian organizations was $2.5 million.
                    the same time, large organizations report the           Japan reported the highest average loss per            Beyond security, other factors that account            Primary concern about Web 2.0
                                                                                                                                                                                                  Concern about Web 2.0
                    highest benefit from using Web 2.0 tools such as        organization at $3 million. Organizations in the       for limited use of Web 2.0 in organizations
                    collaborative platforms.                                United States lost, on average, more than $1.5         include lack of demand and lack of applicability,
                                                                            million due to security breaches.                      reported by 18 percent of respondents. Lack                       9%
                    Fears and concerns about security are well                                                                     of productivity and legal risks also emerged as
                    founded. Six out of 10 organizations experienced                                                               Web 2.0 concerns. However, these reasons lag              15%
                    some sort of security incident the previous year        Six out of 10 organizations                            far behind security fears.
                                                                                                                                                                                                                                    Security

                                                                                                                                                                                                                 49%                Productivity
                    because of Web 2.0 technologies — virus and             experienced some sort of security                                                                                                                       Legal risks
                                                                                                                                   Despite high adoption rates and strong business
                    malware infections were the most common.                incident the previous year because of                                                                                                                   Reputation
                    The financial loss associated with these security                                                              benefits, concern over security remains the                 27%
                                                                            Web 2.0 technologies — virus                           leading factor holding organizations back
                    incidents was high. On average, organizations lost
                    almost $2 million the previous year because of          and malware infections were the                        from exploring the full potential of Web 2.0
                    security incidents.                                     most common.                                           applications. The cost and risk of security
                                                                                                                                   incidents are very high. A large proportion of
                                                                                                                                   security fears are related to employee use of social
                                                                                                                                   media, both for work and personal purposes.




8     Web 2.0: A Complex Balancing Act                                                                                                                                                                                     Web 2.0: A Complex Balancing Act   9
Employee Use of Web 2.0                                                                                                 While Web 2.0 tools were most likely to be
                                                                                                                                           considered useful for improving communication,
                                                                                                                                                                                                  exact same thing happened with e-mail, the exact
                                                                                                                                                                                                  same thing happened with instant messaging, and
                                                                                                                                           survey respondents also reported other benefits:       now with social media, especially the stuff that has
                   While organizations see revenue potential and business value in Web 2.0                                                 enhanced customer service, increased productivity,     social networks in it, they are saying exactly the
                   technologies, decision makers continue to debate whether or not to allow                                                as well as marketing and branding. For example,        same stuff. ‘We’ve got to manage this because
                                                                                                                                           half of respondents reported that use of               they’re going to be sitting there talking about
                   employee usage of Web 2.0 in the workplace — either in the office or on the road.
                                                                                                                                           collaborative platforms improves productivity.         fantasy football.’”
                                                                                                                                           Forty-two percent of respondents said social
                                                                                                                                           network sites enhance customer service.
                   Some organizations emphasize education,              Many organizations that do not restrict employee
                   guidelines and usage policies that provide           usage report positive results from social media                    Organizational leaders differed, however, on
                   parameters for appropriate and allowable use of      tools including enhanced communication                             whether they felt Web 2.0 increased employee                               Mobile social media access can be life saving during large-
                   Web 2.0 technologies for work. In other cases,       and increased employee productivity. Most                          productivity. Only 40 percent of organizations                            scale natural disaster emergencies, and played a major role in
                   organizations are responding to rising employee      organizations rated webmail and collaborative                      agreed that Web 2.0 tools enhance productivity.                          relief and recovery efforts during the 2010 Haiti earthquake.
                   and customer demand for making Web 2.0               platforms as the most useful applications. Only                    However, organizations are more likely to                               Twitter and Facebook were critical to communicating
                   technologies available, and are less concerned       a quarter of organizations rated social network                    indicate that collaborative platform and                               information about relief efforts. Shortly following the
                   about employee productivity or security threats.     sites and streaming media sites such as YouTube                    content sharing applications are more useful                        earthquake, the U.S. State Department began posting assistance
                                                                        as useful.                                                         for productivity than streaming media and                           information on its Facebook page.
                   But many organizational leaders are highly
                                                                                                                                           social networking tools. The social nature of
                   concerned with potential threats from Web 2.0
                                                                                                                                           these tools may factor into the reluctance of                       Agencies, such as the American Red Cross, and citizens used Twitter
                   technologies. They worry about security, data        Perceptions of Web 2.0 Utility for Employee Use
                                                                                                                                           organizational leaders to embrace adoption, as                      to provide minute-by-minute status changes on the ground, and
                   integrity, employee productivity, along with the
                                                                                                                                           well as their relative novelty in the organization.                 to mediate communication with those outside the disaster zone
                   reputational, financial, legal and technological                                     RATED USEFUL BY     PROVIDED BY
                                                                                    WEB 2.0 TOOL
                                                                                                        ORGANIZATIONS      ORGANIZATIONS
                                                                                                                                                                                                               to assist in relief efforts. Volunteers used mobile GPS and camera-
                   consequences that can occur as a result of                                                                              Analyst and business strategist, Stowe Boyd,                        enabled phones to gather photographic and geographic data
                   Web 2.0 usage.                                       WEBMAIL                              48%               90%         discusses the historical resistance to emerging                     about roads, buildings and people. The information was posted to a
                                                                        COLLABORATIVE PLATFORMS                                            technologies in organizations. “When American                       collective Google Maps mashup that allowed emergency personnel
                   In spite of these concerns, 29 percent of                                                 42%               82%
                                                                                                                                           businesses after WWII started to think about rolling                to locate open roads for relief transportation, and identify “last-
                   organizations do not have policies regarding          CONTENT SHARING APPLICATIONS        40%               86%         out telephones on everyone’s desks, the biggest                     seen” locations of individuals seeking family. Building a social media
                   employee usage of Web 2.0 in the office, and
                                                                         STREAMING MEDIA SITES                                             objection that was raised by the senior managers,                   following during quiet times ensures your message gets across
                   fewer still have policies in private sector and                                           28%               82%
                                                                                                                                           who already had telephones, was that everyone                       quickly and credibly during a crisis, even if conventional lines of
                   small organizations. Seventy-five percent of          SOCIAL NETWORK SITES                25%               77%         was going to use these phones for personal use.                     communication are down.
                   organizations without policies indicate they trust
                                                                                                                                           They were going to call mom; they were going to                     http://fcw.com/articles/2010/01/14/social-media-haiti-earthquake-
                   their employees to use tools appropriately, or do
                                                                                                                                           gossip. They weren’t going to use them primarily to                 relief.aspx
                   not consider social media a threat.
                                                                                                                                           do business. But [most of the] time, business people                http://www.readwriteweb.com/archives/social_media_red_cross_
                                                                                                                                           use telephones to conduct business because it’s an                  floods.php
                                                                                                                                           efficient, and direct and obvious way to do it. The




                                                                                                                                                                                                                    GE has used internal Web 2.0 collaboration tools for many
                                                                                                                                                                                                                    years now. As a large multinational corporation with a
                                                                                                                                                                                                                    workforce scattered all around the world, GE needed online
Seventy-five percent of                                                                                                                                                                                             collaboration and social tools. By now, “people have gotten
organizations without                                                                                                                                                                                               so used to them that they’ve come to depend on them,” says
                                                                                                                                                                               Only 40 percent of                   GE systems engineer Anthony Maiello. GE is going beyond
policies indicate they                                                                                                                                                                                              your out-of-the box internal social networking solution:
                                                                                                                                                                               organizations agreed
trust their employees to                                                                                                                                                                                            “Those are great for communication, but they do not meet
                                                                                                                                                                               that Web 2.0 tools
use tools appropriately,                                                                                                                                                                                            our specialized design needs,” explains Maiello. GE is building
                                                                                                                                                                               enhance productivity.                sophisticated collaboration tools that enable engineers
or do not consider social
                                                                                                                                                                                                                    to collaborate remotely and create complex technical
media a threat.                                                                                                                                                                                                     designs. “Because new products are being created on this
                                                                                                                                                                                                                    platform, security is a paramount concern. We do not want
                                                                                                                                                                                                                    external parties attacking our network and getting to this
                                                                                                                                                                                                                    information,” says Maiello.




10   Web 2.0: A Complex Balancing Act                                                                                                                                                                                                                    Web 2.0: A Complex Balancing Act   11
Jonathan Grudin of Microsoft Research, who studies computer-
supported cooperative work, notes that concerns about emerging                                                                                                                                           General Motors, a major U.S. automobile manufacturer,
technologies encroaching on employee productivity are not new. It took                                                                                                                                   empowers employees to promote their latest car models.
many organizations about 15 years before accepting e-mail technologies                                                                                                                                   Employees can borrow cars overnight or for the weekend
because “they had the same concerns about confidentiality and                                                                                                                                            and allow friends and relatives to drive them, as long as
productivity. There were leading industry analysts and organizational                                                                                                                                    an employee is a passenger. Employees can share their
behavioral theoreticians who claimed in the 1990s that e-mail was                                                                                                                                        experience with the car online. “Maybe they’ll go onto
actually a productivity killer. However, when reliable attachment features                                                                                                                               Facebook and tell their friends, ‘you know, I just drove
were added to e-mail systems, allowing documents, spreadsheets                                                                                                                                           the new Camaro and man, it’s just an awesome car!’”
and slide decks to be e-mailed, “managers saw the value, and then                                                                                                                                        says Holtz, who is not affiliated with GM. This program
it became mission critical.” Similarly, Grudin adds, a decade ago,                                                                                                                                       capitalizes on employees’ peer groups and social networks
“company executives warned against IM use in the company, claiming                                                                                                                                       to enhance marketing and potentially increase sales.
again that it was a productivity killer, and it too is now seen as mission
                                                                                                                                                                                                         http://www.gm.com/corporate/responsibility/community/
critical in many organizations. So there is a history of organizations
                                                                                                                                                                                                         news/2010/plant_city_tour_030110.jsp
raising concerns about informal modes of communication.”




In fact, an increasingly mobile workforce has made       Today’s workforce is likely to have access to                                             While IT security experts favor blocking social
information and communicative technologies               information and communication tools at home as                                            media if it is not applicable to an employee’s
essential to communication as well as productivity       well as in the workplace. Ubiquitous connectivity                                         job, industry analysts feel strongly otherwise.                      While IT security experts favor blocking
in organizations. Disaster and crisis situations         is becoming an expectation of the 21st century,                                           Enterprise 2.0 consultant and writer Dion                            social media if it is not applicable to an
provide a compelling argument for employee use           whether using consumer-owned or organizationally-                                         Hinchcliffe thinks blocking social media is “short
                                                                                                                                                                                                                        employee’s job, industry analysts feel
of social media — mobile technologies facilitate         provided devices. This poses an additional challenge                                      sighted.” Consultant and writer Shel Holtz feels
                                                                                                                                                                                                                        strongly otherwise.
communication when traditional infrastructures           to IT security. Indeed, more than half of organizations             Eighty-one percent    blocking access is “the laziest way to approach
fail. When the U.S. Naval base in Millington, Tenn.,     do not allow employees to use their own software                                          the problem,” and argues that companies
                                                                                                                             of organizations
flooded in 2010, 300 residents were displaced and        or hardware in the workplace, and in Canada and                                           should “tease value out of their employees’
their mobile phones were their only connection to        the United Kingdom 70 percent of organizations                      indicated that        social graph.” Holtz states that employees’ social
the world. The U.S. Navy used Facebook to keep           restrict external hardware or software. We expect                   they restrict the     connections, which they create and maintain           While blocking access to social media provides
                                                                                                                                                                                                         better security, these analysts agree that it is
residents informed and help them get safely to           to see this trend decreasing in the near future, as a               use of at least       through social media, are a great resource that
                                                                                                                                                                                                         neither feasible nor sustainable in the face of
restored buildings.                                      growing number of employees from the Millennial                                           organizations should capitalize on. Instead of
                                                                                                                             one Web 2.0 tool                                                            emerging use in the 21st century. Instead, we’re
                                                         Generation enter the workforce and demand                                                 blocking social media, Holtz believes organizations
While certain organizations embrace Web 2.0              ubiquitous connectivity and more open policies                      because they are      should have safe systems in place for using           living in a future were organizations must plan
usage by employees, the majority of organizations        toward consumer devices and social media.                           concerned about       Web 2.0. Employees can use social media               and design environments with less control of
trend differently: eighty-one percent of                                                                                                                                                                 employee activities. JP Rangaswami, CIO and
                                                                                                                             security.             not only for marketing, but also for getting
                                                                                                                                                                                                         Chief Scientist of British Telecom, recommended
organizations indicated that they restrict the use       At the most extreme, 13 percent of organizations                                          quick feedback, testing ideas and helping with
of at least one Web 2.0 tool because they are            block social media access at the infrastructure level.                                    recruitment. “I guarantee you your engineers          in a recent keynote presentation to the E2.0 2010
concerned about security. Organizations in the           Blocking usage is more prevalent in the public sector                                     know who the next best engineering hire is,           conference: “The organization has to design for
United Kingdom, Germany, Canada, Sweden and              and in larger organizations, where it was reported by                                     because they network with other engineers and         a loss of control.” Charlene Li, industry analyst
Singapore are less likely than other countries to        20 percent of organizations.                                                              they know who has the right set of skills and         and CEO of Altimeter Group, notes that “the
restrict use of particular tools. Larger organizations                                                                                             knowledge and background, and who brings the          sense of control you have to give up is significant,
are more likely to place restrictions on social media                                                                                              right experience to the job and who would be a        and executives in particular are not going to
                                                         Patterns of Blocking Social Media
usage than the smallest organizations (87 percent                                                                                                  good cultural fit in the organization,” says Holtz.   invest in something unless they know it’s going
versus 67 percent, respectively).                                                                                                                                                                        to add particular value to the company.” The
                                                         100%
                                                         90%
                                                                                                                                                                                                         value of Web 2.0 technologies, Li points out,
Organizations restrict social media usage through        80%                                                                                                                                             comes in focusing upon the relationships that
policy, technology and controlling use of user-          70%                                              No policy                                                                                      can be formed, not the technology. “It’s not so
owned devices. More than half of organizations           60%                                              Monitor use                             “The organization has to                               much about being on Twitter as the purpose and
                                                         50%
do not allow employees to use their own software                                                          Control/restrict                                                                               the reason, and the connections you can form
                                                         40%                                                                                       design for a loss of control.”
or hardware in the workplace, and 25 percent             30%
                                                                                                          Block access
                                                                                                                                                                                                         with people. It is about the human aspect of
of organizations restrict social media usage to          20%                                                                                                                                             technologies, and this is nowhere more important
specifically authorized individuals.                     10%
                                                                                                                                                                                                         than in using social technologies.”
                                                          0%
                                                                       Small     Medium      Large
                                                                      (<100)   (100-1000)   (>1000)
                                                                Organization size (number of employees)




12    Web 2.0: A Complex Balancing Act                                                                                                                                                                                                       Web 2.0: A Complex Balancing Act   13
The primary concern that organizations have                                                       Some security concerns are specific to
                                                about employee usage of Web 2.0 technologies                                                      Web 2.0 tools used by employees. For example,
                                                is security. This concern is a specific obstacle                                                  technologies that are perceived to facilitate work
                                                to adoption and integration of social media in                                                    productivity, such as webmail, collaborative                                                             Facebook is banned by nearly
                                                organizations. The top four perceived threats                                                     platforms and content sharing applications, are
                                                                                                                                                                                                                                                           half of the organizations,
                                                from employee use of Web 2.0 are malicious                                                        less likely to raise concern than the mainstream
                                                software (35 percent), viruses (15 percent),                                                      social media tools such as Facebook, LinkedIn,                                                           especially mid — to
                                                overexposure of information (11 percent) and                                                      YouTube and Twitter, which are not allowed by                                                            large-sized ones.
                                                spyware (10 percent).                                                                             40 to 50 percent of organizations. There are
                                                                                                                                                  regional differences, as well, in which tools are
                                                 Top Perceived Security Threat from Employee                                                      considered useful for employees. Organizations
                                                 Web 2.0 Usage                                                                                    in Brazil and Singapore, where overall adoption                                                          Social network sites are
                                                                                                                                                  is high, are much more likely to rate webmail                                                            perceived as the riskiest of
                                                                     TOP PERCEIVED SECURITY THREAT FROM                                           useful than organizations in the United                                                                  all Web 2.0 tools from a
                                                                           EMPLOYEE WEB 2.0 USAGE
                                                                                                                                                  Kingdom. However, the United Kingdom reports
                                                                                                                                                                                                                                                           security standpoint.
                                                 MALWARE INTRODUCTION                                                  35%                        higher adoption of collaborative platforms and
                                                                                                                                                  content sharing tools. Adoption of streaming
                                                 VIRUS INTRODUCTION                                                    15%
                                                                                                                                                  media and social network sites is fairly consistent
                                                 INFORMATION OVEREXPOSURE                                              11%                        across all countries.
                                                  SPYWARE INCREASE                                                     10%                        Industry analyst Charlene Li notes that
                                                  SPAM VOLUME INCREASE
                                                                                                                                                  differences in social media usage by country
                                                                                                                       6%
                                                                                                                                                  are less about cultural differences than
                                                  EXPOSED ENTRY POINTS                                                 6%                         about differences in access and social media
                                                  DATA LEAKS
                                                                                                                                                  penetration rates. Li says that because of high
                                                                                                                       7%
                                                                                                                                                  penetration rates, “South Korea and Brazil
                                                  BOTNET INTRODUCTION                                                  5%                         are more likely to be producing content, while
                                                  SPAM USE INCREASE
                                                                                                                                                  other countries like the U.S. lean more towards
                                                                                                                       4%
                                                                                                                                                  content sharing.”



                                                 Web 2.0 Applications Adoption by Country

                                                 80%



                                                 70%



                                                 60%


                                                 50%


                                                                                                                                                                                                                                 Webmail
                                                 40%
                                                                                                                                                                                                                                 Content sharing
                                                                                                                                                                                                                                 Collaborative platforms
                                                 30%                                                                                                                                                                             Streaming media
                                                                                                                                                                                                                                 Social network sites
                                                 20%


                                                 10%
                                                                                                                                                                                            Italy


                                                                                                                                                                                                    SNG
                                                                                                             Japan




                                                                                                                                              Australia
                                                                                                      UAE




                                                                                                                                   Canada




                                                                                                                                                                                                             Spain


                                                                                                                                                                                                                        Brazil
                                                                               Sweden


                                                                                            Benelux




                                                                                                                                                          UK


                                                                                                                                                                  USA




                                                                                                                                                                                   France
                                                                                                                        Mexico




                                                                                                                                                                           India
                                                                     Germany
                                                          Poland




                                                                                                                                                                                              Webmail

                                                “If it’s popular, it’s going to be popular with                                                                                               Content sharing
                                                                                                                                                                                              Collaborative platforms
                                                 the bad guys, not just the good guys.”                                                                                                       Streaming media
                                                                                                                                                                                              Social network sites




                 14           Web 2.0: A Complex Balancing Act
                                                                                                                                      Italy


                                                                                                                                               SNG
                                                  Japan




                                                                                 ustralia
                                          UAE




                                                                      anada




                                                                                                                                                          Spain


                                                                                                                                                                  Brazil
                      weden


                                 enelux




                                                                                              UK


                                                                                                       USA




                                                                                                                          France
                                                           Mexico




                                                                                                               India
         rmany
Poland
Close to half of the leaders surveyed felt that                                                                                                                                                             One in four
employees are most prone to using social media                                                                                                                                                              respondents did
inappropriately by accident, perhaps due to lack                                                                                                                                                            not have concerns
of awareness, or when they are dissatisfied with                                                                                                                                                            about employees
compensation or management.                                                                                                                                                                                 using social media
                                                                                                                                                                                                            inappropriately.




                   Social network sites are more likely to be linked       In some cases, organizations are concerned about     There are both real and perceived consequences of
                   to security issues than other technologies. Among       situations that might give rise to employees         inappropriate Web 2.0 and social media use:                     Legal risks are a major concern for
                   respondents who have experienced security               inappropriately using social media. Close to half                                                                   highly regulated industries such as
                   incidences in their organizations, half suspected       of the leaders surveyed felt that employees are      •	   The financial consequence for security incidents
                                                                                                                                                                                              healthcare or financial services. One
                   social network sites as the cause, and 44 percent       most prone to using social media inappropriately          (including downtime, information and revenue
                                                                                                                                                                                             hospital system, however, found a way to
                   suspected webmail. In contrast, only 20 to 25           by accident, perhaps due to lack of awareness,            loss) is an estimated average of $2 million for
                                                                                                                                                                                            use social media successfully while staying
                   percent of organizations suggested content sharing      or when they are dissatisfied with compensation           all Web 2.0 technologies.
                                                                                                                                                                                         within the limits of the Health Insurance
                   and collaborative platform tools as the cause of        or management. Concerns about inappropriate                                                                   Portability and Accountability Act (HIPAA).
                                                                                                                                •	   Sixty percent of companies report that the
                   security incidents.                                     usage caused by managerial disputes are higher                                                                Scott & White Healthcare is one of the largest
                                                                                                                                     most significant potential consequences from
                                                                           in Spain, Brazil, Mexico and India, while pay                                                                 healthcare systems in the United States,
                   These statistics suggest that many organizations                                                                  inappropriate social media usage are loss of
                                                                           disputes cause more concern to organizations                                                                  operating 10 hospitals in the Texas area. Scott
                   perceive employee usage of Web 2.0 to be non-                                                                     reputation, brand, or client confidence.
                                                                           in the United Kingdom and Australia. Concerns                                                                 & White uses Facebook, YouTube, Twitter and
                   productive and potentially detrimental to business      about accidental misuse are highest in the United    •	   One in three organizations reported unplanned       blogs to communicate with the public. On
                   goals. Facebook is banned by nearly half of the         Kingdom and Canada.                                       investments related to “work-arounds”               Nov. 5, 2009, a soldier opened fire at the Fort
                   organizations, especially mid — to large-sized ones.
                                                                                                                                     necessary for implementing social media in          Hood military base in Texas, killing 13 people
                   In certain European countries like Benelux, Italy and   In contrast, one in four respondents did not
                                                                                                                                     their organization.                                 and wounding dozens of others (CNN, 2009).
                   Spain, more than 60 percent of organizations restrict   have concerns about employees using social
                                                                                                                                                                                         Scott & White Memorial Hospital in Temple,
                   usage. In contrast, only a third of organizations in    media inappropriately. Respondents from small        •	   Fourteen percent of organizations report            Texas, was the closest Level 1 trauma center
                   Japan, Germany and Brazil restrict Facebook.            organizations and from Sweden, Germany, Japan             litigation or legal threats caused by employees     and received the highest number of Fort
                                                                           and the United Arab Emirates were the least likely        disclosing confidential or sensitive information,
                   Security experts explain that negative media                                                                                                                          Hood casualties. Steve Widmann, director of
                                                                           to be concerned that employees would use social           with more than 61 percent of those threats
                   coverage of Facebook over unilateral privacy                                                                                                                          web services at Scott & White, used Twitter, a
                                                                           media inappropriately, where approximately 40             caused by social media disclosures.
                   changes might account for some of this concern.                                                                                                                       blog and YouTube to issue continuous updates
                                                                           percent of leaders were unconcerned.
                   Also, the more users a tool has, the more likely                                                                                                                      throughout the day about access to the
                                                                                                                                Organizational leaders are facing real
                   it is to be a target. “If it’s popular, it’s going to                                                                                                                 hospital’s emergency room, hospital operation
                                                                                                                                consequences when adopting Web 2.0
                   be popular with the bad guys, not just the good                                                                                                                       status and to keep the media and public
                                                                                                                                technologies, but they recognize a growing
                   guys,” said an IT security professional from a major                                                                                                                  informed. Both the local media and the public
                                                                                                                                demand for employee usage. They continue to
                   global nonprofit.                                                                                                                                                     showed support and gratitude for being kept
                                                                                                                                seek the right balance to ensure technological
                                                                                                                                                                                         up-to-date on developments.
                                                                                                                                security while embracing and integrating the
                                                                                                                                opportunities presented by Web 2.0 technologies.         http://www.cnn.com/2009/CRIME/11/12/fort.
                                                                                                                                                                                         hood.investigation/index.html
                                                                                                                                                                                         http://www.forimmediaterelease.biz/index.
                                                                                                                                                                                         php?/weblog/comments/the_hobson_holtz_
                                                                                                                                                                                         report_-_podcast_503_november_23_2009/




16   Web 2.0: A Complex Balancing Act                                                                                                                                                                      Web 2.0: A Complex Balancing Act   17
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Mcafee web20-balancingact

  • 1. Web 2.0 A Complex Balancing Act The First Global Study on Web 2.0 Usage, Risks and Best Practices
  • 2. Executive Summary Web 2.0: A Complex Balancing Act What are Web 2.0’s leading trends in business? Defined broadly as consumer The First Global Study on Web 2.0 Usage, social media applications such as Facebook, Twitter and YouTube, and Risks and Best Practices specialized Enterprise 2.0 solutions, Web 2.0 has become a term surrounded by many debates: To adopt or not? How can organizations use Web 2.0 technologies? What are the business benefits? Will Web 2.0 use increase or decrease employee productivity? Is the security risk worth the benefits? In collaboration with experts in the fields of security of it; 25 percent monitor use; and 13 percent and social media, McAfee took a close look at these block all social media access. Social network sites questions. Commissioned by McAfee, Professors are regarded as the main security threat of all Mihaela Vorvoreanu and Lorraine Kisselburgh from social media tools. As a result, nearly half of the Purdue University and the Center for Education and organizations we surveyed block Facebook. Research in Information Assurance and Security (CERIAS) undertook extensive research with experts Organizations need to employ a variety of measures from around the globe. to ensure safe use of Web 2.0. Social media policies and technological protection are the two primary International research firm Vanson Bourne surveyed measures used today. Two thirds of organizations more than 1,000 organizational decision-makers worldwide have social media policies for in 17 countries worldwide, and combined with employees, and 71 percent of those use technology expert interviews, we developed an in-depth to enforce them. However, that leaves one third of study of emerging policies and practices into how organizations without a social media policy, and organizations balance the risks and benefits of almost half of the organizations lack a policy for using Web 2.0 technologies. Web 2.0 use on mobile devices. Our findings show high Web 2.0 adoption. Three To address these challenges, many organizations out of four organizations worldwide use Web have increased security protection since introducing 2.0 for a variety of business functions such as IT Web 2.0 applications. Seventy-nine percent (51 percent), marketing and sales (34 percent), increased firewall protection, 58 percent introduced customer relations (29 percent), advertising and greater levels of web filtering, and 53 percent public relations (28 percent) and human resources implemented greater web gateway protection. Two (22 percent). The main driver for Web 2.0 adoption out of five organizations are budgeting for Web is new revenue potential, according to two thirds of 2.0-specific security solutions. our respondents. Only 42 percent of those surveyed felt strongly about the importance of present Security experts strongly recommend a multi- Web 2.0 tools. While organizations acknowledge layer security approach that’s customized for Web revenue potential and business value in Web 2.0 2.0-specific challenges to mitigate adoption risks. technologies, leaders and decision makers debate Eugene Spafford, founder and Executive Director employee use of Web 2.0 in the workplace — of CERIAS at Purdue University, notes that “the either in the office or on the road. best protections are those that don’t get in the way of getting work finished, because users are not CONTENTS Security is the leading issue. Half of the tempted to circumvent those controls. As not all organizations say it is their primary concern for information needs to be protected in the same way, Executive Summary 3 Web 2.0 technologies. For another third, security and not all users are going to interact with Web 2.0 is the main reason they don’t use Web 2.0 more technologies in the same manner, defenses should Introduction 4 widely. Six out of 10 organizations suffered large be tailored to fit the circumstances of use.” Web 2.0 Adoption in Organizations 5 losses averaging $2 million each because of security incidents during the past year. Together, more than Executives and industry experts agree that Employee Use of Web 2.0 10 $1.1 billion was lost by these organizations due to successful organizational use of Web 2.0 is a security incidents. complex balancing act. It requires analyzing Balancing Act 18 challenges and opportunities while mitigating Conclusion 24 One of the main sources of security threats is risks, and combining policy, employee training and employee use of social media. Thirty-three percent technology solutions to ensure security. Appendices 26 of organizations worldwide restrict employee use Web 2.0: A Complex Balancing Act 3
  • 3. “By 2014, social networking Energy use for spam (kWh/year) per email user services will replace e-mail as the Percent of email received that is spam primary vehicle for interpersonal communications for 20 percent of business users.” [Gartner (2010). “Predicts 2010: Social Software Is an Enterprise Reality.”] Introduction Web 2.0 Adoption in Organizations Web 2.0 — defined here broadly as consumer social media applications such Our survey shows high adoption of Web 2.0 in the enterprise. More than 75 as Facebook, Twitter and YouTube, and specialized Enterprise 2.0 solutions — percent of organizations reported using Web 2.0 solutions for many business has become a term surrounded by many debates: To adopt or not? How can functions. While adoption rates vary across countries, they were high overall, organizations use Web 2.0 technologies? What are the business benefits? and reached 90 percent or higher in Brazil, Spain and India. Web 2.0 adoption Will Web 2.0 use increase or decrease employee productivity? Is the security was lowest in the United States and the Commonwealth countries of the risk worth the benefits? United Kingdom, Australia, and Canada. McAfee, in collaboration with communication emerging technologies at infrastructure and Survey data confirmed market research group Web 2.0 Adoption Rates by Country media and IT security experts, and with the help employee levels. In balancing these challenges Gartner’s anticipated trend: “By 2014, social of international research firm Vanson Bourne, and opportunities, the report discusses measures networking services will replace e-mail as the Organizations who use Web 2.0 for business (%) investigated these questions. A survey of more organizations take to ensure safe use of Web 2.0. primary vehicle for interpersonal communications than 1,000 organizational decision makers The survey data and expert opinions corroborate for 20 percent of business users.” 100% from 17 countries, and in-depth interviews that while Web 2.0 has considerable value, using [Gartner (2010). “Predicts 2010: Social Software Is 80% with experts, paint a complex picture with Web 2.0 applications successfully is a balancing an Enterprise Reality.”] two main Web 2.0 issues: the opportunities act that requires a combination of technology, 60% provided to organizations that have adopted policy and education. Web 2.0 solutions are used for a variety of Web 2.0, and the challenges of embracing business purposes. About half of the organizations 40% surveyed employ Web 2.0 solutions for IT 20% functions, and roughly a third of organizations use them for marketing, sales or customer service. One 0% SNG India Spain Brazil Mexico Japan Canada Sweden UAE USA France Poland Germany Australia UK Italy Benelux in five organizations reported using Web 2.0 for public relations or human resources — especially recruitment. India leads in adoption of Web 2.0 for IT solutions, with about three out of four Indian organizations reporting such use. 4 Web 2.0: A Complex Balancing Act Web 2.0: A Complex Balancing Act 5
  • 4. Crowd-sourcing is one of the ways that companies are leveraging Web 2.0 to create new revenue streams. InnoCentive is an online crowd-sourcing company where organizations as large as Eli Lilly, DuPont, Boeing, Procter&Gamble and NASA post research problems in need of solutions. Scientists from all over the world, whether The survey data suggests amateur, professional, or retired, choose problems to work on and post their solutions. Companies select a winning solution and that in 2010 Web 2.0 pay the scientist a cash prize ranging from $5,000 to $1 million, solutions are not perceived depending on the problem’s complexity. InnoCentive enables as crucial to organizations. companies to solve difficult research problems at a much lower cost than their own R&D departments, and to have access to a diversity of solutions, ideas and expertise that is unlikely to occur within just one organization. http://www2.innocentive.com New revenue streams emerged as the highest Frank Gruber, co-founder of TECH cocktail, The survey data suggests that in 2010 driver of Web 2.0 adoption. Three out of four discusses some of the ways that companies Web 2.0 solutions are not perceived as crucial Although Web 2.0 was not organizations that use Web 2.0 reported that are leveraging Web 2.0 technologies — and to organizations. This is not surprising, given considered extremely critical expanded use of Web 2.0 technologies could particularly the people participating in these that some of the technologies have not reached for many organizations in this create new revenue streams for their organizations. platforms — to facilitate production, marketing, maturation, and uses are still being explored. study, for one organization it is This is especially true in Brazil, India, the United and customer service: However, respondents see great potential for vital. charity: water is a nonprofit Arab Emirates and Mexico, where nine out of 10 Web 2.0 in the future, and the data suggests that organization that provides clean and organizations share this belief. Even 65 percent “For example, crowdsourcing has been used for this belief drives adoption. Stowe Boyd, analyst safe drinking water in the developing of organizations in the public sector that already design work, solving difficult problems and even and business strategist, claims the real benefits of world. It directs 100 percent of public use Web 2.0 see revenue potential from using to make product decisions. There are a number Web 2.0 become apparent when adoption rates donations to funding water projects. it. However, perceived importance of Web 2.0 of companies leveraging Web 2.0 technologies reach 90 percent. “The more people use social charity: water does nearly all of its solutions was tempered. Forty-two percent of for social media marketing campaigns and for tools, the more efficient the tools become,” fundraising online and has no budget respondents who reported using Web 2.0 solutions customer service. Ford has been leveraging social states Boyd. for marketing or advertising. charity: agreed they were important to business, but about media and outreach to connect with a newly water has raised more than $7.5 million the same percentage was neutral. invigorated Ford Fiesta. Zappos leverages Web 2.0 In addition to supporting communication and in its first two years of operation for customer service, because every employee collaboration among employees, organizations using mainly an online community has a Twitter account for customer support and recognize the value Web 2.0 technologies bring platform and social media. With the feedback. Intel works with bloggers to spread the to clients and customer relations. About 40 to power of social media alone, in 2009 word about their innovations.” 45 percent of organizations feel that Web 2.0 more than $250,000 was raised in a improves customer service, and 40 percent feel it single day when charity: water was Market pressure was not, overall, a big driver of enhances effective marketing. Three out of four the beneficiary of Twestival Global. Web 2.0 adoption. The exception is India and This resulted in more than 55 water organizations that use Brazil where 78 and 58 percent, respectively, wells in Uganda, Ethiopia and India, Web 2.0 reported that reported that customers and partners are and touched the lives of an estimated requesting organizations to engage in Web 2.0. “The more people expanded use of Web 2.0 17,000 people. “Web 2.0 is the heart of Perceived market pressure was higher in the technologies could create public sector, where almost half of organizations use social tools, the our operation and our primary source of revenue. We’re a Web 2.0 charity,” new revenue streams for feel it, as opposed to only a third in the private more efficient the says charity:water director of digital their organizations. sector. In the largest organizations, the pressure tools become.” engagement, Paull Young. charity:water to engage in Web 2.0 offerings was highest. is a convincing example of the impact Almost half of large organizations reported social media can have on ROI. partner or customer demand, compared to only a third of small organizations. 6 Web 2.0: A Complex Balancing Act Web 2.0: A Complex Balancing Act 7
  • 5. McAfee CTO and vice president, Raj Samani, believes that more What accounts for Brazil’s high Web 2.0 companies should be concerned about security. He explains that adoption rate? Brazilian IT consultant and the security landscape has changed. Whereas 10 to 15 years ICANN member, Vanda Scartezini, explains ago data infiltration was the biggest concern, these days data that Brazilians tend to love novelty and are exfiltration, good data going out, is the primary challenge. In an quick to adopt new technologies. At the economy where information is the lifeblood of an organization, same time, Brazil is seeing “huge infection preserving the confidentiality, integrity and availability of problems” originating from social media. information is vital. Virus and malware protection is still important, Scartezini recommends that organizations but data loss prevention is fast becoming an indispensable use more than one security software component of an organization’s technology protection. applications to protect assets. If Web 2.0 is useful for business functions, what Large organizations paid even steeper costs for Virus and malware infections are the most is preventing organizations from using it more? security breaches because of Web 2.0 usage. The common types of security incidents. A third of Security is the leading concern for Web 2.0 average loss for a large organization was $4.5 organizations experienced virus infections and technologies. Half of the respondents name security million, with an average reported loss around $10 almost a quarter experienced malware infections risks as their primary concern with Web 2.0, while million in Japan and Singapore, and more than the previous year. In spite of concerns about data a third identify fear of security issues as the main $8.5 million in Canada. Large organizations in the exfiltration, very few organizations (less than More than $1.1 billion was lost reason Web 2.0 applications are not used more United States have managed their security risks one in 10) reported experiencing data leaks or by organizations surveyed due widely in their business. Trepidation about security better, and reported a relatively lower average loss information overexposure. Security experts found to security incidents caused by is higher than average in India and Brazil, two of $1.7 million. this percentage to be lower than expected, and Web 2.0 technologies. countries with the highest Web 2.0 adoption rates. explain that respondents might be aware of or Large organizations are twice as likely as small Organizations in countries with high Web 2.0 report only the more serious incidents. Pamela organizations to avoid using Web 2.0 because of adoption such as Brazil, India and Mexico were Warren, McAfee cybercrime strategist, stated, security fears. With more employees and more most likely to have experienced security incidents “more data leaks might have happened, but they complex infrastructures to protect, it is no surprise and to report large losses. The average amount are outside organizations’ awareness.” that large organizations perceive higher risks. At lost by Brazilian organizations was $2.5 million. the same time, large organizations report the Japan reported the highest average loss per Beyond security, other factors that account Primary concern about Web 2.0 Concern about Web 2.0 highest benefit from using Web 2.0 tools such as organization at $3 million. Organizations in the for limited use of Web 2.0 in organizations collaborative platforms. United States lost, on average, more than $1.5 include lack of demand and lack of applicability, million due to security breaches. reported by 18 percent of respondents. Lack 9% Fears and concerns about security are well of productivity and legal risks also emerged as founded. Six out of 10 organizations experienced Web 2.0 concerns. However, these reasons lag 15% some sort of security incident the previous year Six out of 10 organizations far behind security fears. Security 49% Productivity because of Web 2.0 technologies — virus and experienced some sort of security Legal risks Despite high adoption rates and strong business malware infections were the most common. incident the previous year because of Reputation The financial loss associated with these security benefits, concern over security remains the 27% Web 2.0 technologies — virus leading factor holding organizations back incidents was high. On average, organizations lost almost $2 million the previous year because of and malware infections were the from exploring the full potential of Web 2.0 security incidents. most common. applications. The cost and risk of security incidents are very high. A large proportion of security fears are related to employee use of social media, both for work and personal purposes. 8 Web 2.0: A Complex Balancing Act Web 2.0: A Complex Balancing Act 9
  • 6. Employee Use of Web 2.0 While Web 2.0 tools were most likely to be considered useful for improving communication, exact same thing happened with e-mail, the exact same thing happened with instant messaging, and survey respondents also reported other benefits: now with social media, especially the stuff that has While organizations see revenue potential and business value in Web 2.0 enhanced customer service, increased productivity, social networks in it, they are saying exactly the technologies, decision makers continue to debate whether or not to allow as well as marketing and branding. For example, same stuff. ‘We’ve got to manage this because half of respondents reported that use of they’re going to be sitting there talking about employee usage of Web 2.0 in the workplace — either in the office or on the road. collaborative platforms improves productivity. fantasy football.’” Forty-two percent of respondents said social network sites enhance customer service. Some organizations emphasize education, Many organizations that do not restrict employee guidelines and usage policies that provide usage report positive results from social media Organizational leaders differed, however, on parameters for appropriate and allowable use of tools including enhanced communication whether they felt Web 2.0 increased employee Mobile social media access can be life saving during large- Web 2.0 technologies for work. In other cases, and increased employee productivity. Most productivity. Only 40 percent of organizations scale natural disaster emergencies, and played a major role in organizations are responding to rising employee organizations rated webmail and collaborative agreed that Web 2.0 tools enhance productivity. relief and recovery efforts during the 2010 Haiti earthquake. and customer demand for making Web 2.0 platforms as the most useful applications. Only However, organizations are more likely to Twitter and Facebook were critical to communicating technologies available, and are less concerned a quarter of organizations rated social network indicate that collaborative platform and information about relief efforts. Shortly following the about employee productivity or security threats. sites and streaming media sites such as YouTube content sharing applications are more useful earthquake, the U.S. State Department began posting assistance as useful. for productivity than streaming media and information on its Facebook page. But many organizational leaders are highly social networking tools. The social nature of concerned with potential threats from Web 2.0 these tools may factor into the reluctance of Agencies, such as the American Red Cross, and citizens used Twitter technologies. They worry about security, data Perceptions of Web 2.0 Utility for Employee Use organizational leaders to embrace adoption, as to provide minute-by-minute status changes on the ground, and integrity, employee productivity, along with the well as their relative novelty in the organization. to mediate communication with those outside the disaster zone reputational, financial, legal and technological RATED USEFUL BY PROVIDED BY WEB 2.0 TOOL ORGANIZATIONS ORGANIZATIONS to assist in relief efforts. Volunteers used mobile GPS and camera- consequences that can occur as a result of Analyst and business strategist, Stowe Boyd, enabled phones to gather photographic and geographic data Web 2.0 usage. WEBMAIL 48% 90% discusses the historical resistance to emerging about roads, buildings and people. The information was posted to a COLLABORATIVE PLATFORMS technologies in organizations. “When American collective Google Maps mashup that allowed emergency personnel In spite of these concerns, 29 percent of 42% 82% businesses after WWII started to think about rolling to locate open roads for relief transportation, and identify “last- organizations do not have policies regarding CONTENT SHARING APPLICATIONS 40% 86% out telephones on everyone’s desks, the biggest seen” locations of individuals seeking family. Building a social media employee usage of Web 2.0 in the office, and STREAMING MEDIA SITES objection that was raised by the senior managers, following during quiet times ensures your message gets across fewer still have policies in private sector and 28% 82% who already had telephones, was that everyone quickly and credibly during a crisis, even if conventional lines of small organizations. Seventy-five percent of SOCIAL NETWORK SITES 25% 77% was going to use these phones for personal use. communication are down. organizations without policies indicate they trust They were going to call mom; they were going to http://fcw.com/articles/2010/01/14/social-media-haiti-earthquake- their employees to use tools appropriately, or do gossip. They weren’t going to use them primarily to relief.aspx not consider social media a threat. do business. But [most of the] time, business people http://www.readwriteweb.com/archives/social_media_red_cross_ use telephones to conduct business because it’s an floods.php efficient, and direct and obvious way to do it. The GE has used internal Web 2.0 collaboration tools for many years now. As a large multinational corporation with a workforce scattered all around the world, GE needed online Seventy-five percent of collaboration and social tools. By now, “people have gotten organizations without so used to them that they’ve come to depend on them,” says Only 40 percent of GE systems engineer Anthony Maiello. GE is going beyond policies indicate they your out-of-the box internal social networking solution: organizations agreed trust their employees to “Those are great for communication, but they do not meet that Web 2.0 tools use tools appropriately, our specialized design needs,” explains Maiello. GE is building enhance productivity. sophisticated collaboration tools that enable engineers or do not consider social to collaborate remotely and create complex technical media a threat. designs. “Because new products are being created on this platform, security is a paramount concern. We do not want external parties attacking our network and getting to this information,” says Maiello. 10 Web 2.0: A Complex Balancing Act Web 2.0: A Complex Balancing Act 11
  • 7. Jonathan Grudin of Microsoft Research, who studies computer- supported cooperative work, notes that concerns about emerging General Motors, a major U.S. automobile manufacturer, technologies encroaching on employee productivity are not new. It took empowers employees to promote their latest car models. many organizations about 15 years before accepting e-mail technologies Employees can borrow cars overnight or for the weekend because “they had the same concerns about confidentiality and and allow friends and relatives to drive them, as long as productivity. There were leading industry analysts and organizational an employee is a passenger. Employees can share their behavioral theoreticians who claimed in the 1990s that e-mail was experience with the car online. “Maybe they’ll go onto actually a productivity killer. However, when reliable attachment features Facebook and tell their friends, ‘you know, I just drove were added to e-mail systems, allowing documents, spreadsheets the new Camaro and man, it’s just an awesome car!’” and slide decks to be e-mailed, “managers saw the value, and then says Holtz, who is not affiliated with GM. This program it became mission critical.” Similarly, Grudin adds, a decade ago, capitalizes on employees’ peer groups and social networks “company executives warned against IM use in the company, claiming to enhance marketing and potentially increase sales. again that it was a productivity killer, and it too is now seen as mission http://www.gm.com/corporate/responsibility/community/ critical in many organizations. So there is a history of organizations news/2010/plant_city_tour_030110.jsp raising concerns about informal modes of communication.” In fact, an increasingly mobile workforce has made Today’s workforce is likely to have access to While IT security experts favor blocking social information and communicative technologies information and communication tools at home as media if it is not applicable to an employee’s essential to communication as well as productivity well as in the workplace. Ubiquitous connectivity job, industry analysts feel strongly otherwise. While IT security experts favor blocking in organizations. Disaster and crisis situations is becoming an expectation of the 21st century, Enterprise 2.0 consultant and writer Dion social media if it is not applicable to an provide a compelling argument for employee use whether using consumer-owned or organizationally- Hinchcliffe thinks blocking social media is “short employee’s job, industry analysts feel of social media — mobile technologies facilitate provided devices. This poses an additional challenge sighted.” Consultant and writer Shel Holtz feels strongly otherwise. communication when traditional infrastructures to IT security. Indeed, more than half of organizations Eighty-one percent blocking access is “the laziest way to approach fail. When the U.S. Naval base in Millington, Tenn., do not allow employees to use their own software the problem,” and argues that companies of organizations flooded in 2010, 300 residents were displaced and or hardware in the workplace, and in Canada and should “tease value out of their employees’ their mobile phones were their only connection to the United Kingdom 70 percent of organizations indicated that social graph.” Holtz states that employees’ social the world. The U.S. Navy used Facebook to keep restrict external hardware or software. We expect they restrict the connections, which they create and maintain While blocking access to social media provides better security, these analysts agree that it is residents informed and help them get safely to to see this trend decreasing in the near future, as a use of at least through social media, are a great resource that neither feasible nor sustainable in the face of restored buildings. growing number of employees from the Millennial organizations should capitalize on. Instead of one Web 2.0 tool emerging use in the 21st century. Instead, we’re Generation enter the workforce and demand blocking social media, Holtz believes organizations While certain organizations embrace Web 2.0 ubiquitous connectivity and more open policies because they are should have safe systems in place for using living in a future were organizations must plan usage by employees, the majority of organizations toward consumer devices and social media. concerned about Web 2.0. Employees can use social media and design environments with less control of trend differently: eighty-one percent of employee activities. JP Rangaswami, CIO and security. not only for marketing, but also for getting Chief Scientist of British Telecom, recommended organizations indicated that they restrict the use At the most extreme, 13 percent of organizations quick feedback, testing ideas and helping with of at least one Web 2.0 tool because they are block social media access at the infrastructure level. recruitment. “I guarantee you your engineers in a recent keynote presentation to the E2.0 2010 concerned about security. Organizations in the Blocking usage is more prevalent in the public sector know who the next best engineering hire is, conference: “The organization has to design for United Kingdom, Germany, Canada, Sweden and and in larger organizations, where it was reported by because they network with other engineers and a loss of control.” Charlene Li, industry analyst Singapore are less likely than other countries to 20 percent of organizations. they know who has the right set of skills and and CEO of Altimeter Group, notes that “the restrict use of particular tools. Larger organizations knowledge and background, and who brings the sense of control you have to give up is significant, are more likely to place restrictions on social media right experience to the job and who would be a and executives in particular are not going to Patterns of Blocking Social Media usage than the smallest organizations (87 percent good cultural fit in the organization,” says Holtz. invest in something unless they know it’s going versus 67 percent, respectively). to add particular value to the company.” The 100% 90% value of Web 2.0 technologies, Li points out, Organizations restrict social media usage through 80% comes in focusing upon the relationships that policy, technology and controlling use of user- 70% No policy can be formed, not the technology. “It’s not so owned devices. More than half of organizations 60% Monitor use “The organization has to much about being on Twitter as the purpose and 50% do not allow employees to use their own software Control/restrict the reason, and the connections you can form 40% design for a loss of control.” or hardware in the workplace, and 25 percent 30% Block access with people. It is about the human aspect of of organizations restrict social media usage to 20% technologies, and this is nowhere more important specifically authorized individuals. 10% than in using social technologies.” 0% Small Medium Large (<100) (100-1000) (>1000) Organization size (number of employees) 12 Web 2.0: A Complex Balancing Act Web 2.0: A Complex Balancing Act 13
  • 8. The primary concern that organizations have Some security concerns are specific to about employee usage of Web 2.0 technologies Web 2.0 tools used by employees. For example, is security. This concern is a specific obstacle technologies that are perceived to facilitate work to adoption and integration of social media in productivity, such as webmail, collaborative Facebook is banned by nearly organizations. The top four perceived threats platforms and content sharing applications, are half of the organizations, from employee use of Web 2.0 are malicious less likely to raise concern than the mainstream software (35 percent), viruses (15 percent), social media tools such as Facebook, LinkedIn, especially mid — to overexposure of information (11 percent) and YouTube and Twitter, which are not allowed by large-sized ones. spyware (10 percent). 40 to 50 percent of organizations. There are regional differences, as well, in which tools are Top Perceived Security Threat from Employee considered useful for employees. Organizations Web 2.0 Usage in Brazil and Singapore, where overall adoption Social network sites are is high, are much more likely to rate webmail perceived as the riskiest of TOP PERCEIVED SECURITY THREAT FROM useful than organizations in the United all Web 2.0 tools from a EMPLOYEE WEB 2.0 USAGE Kingdom. However, the United Kingdom reports security standpoint. MALWARE INTRODUCTION 35% higher adoption of collaborative platforms and content sharing tools. Adoption of streaming VIRUS INTRODUCTION 15% media and social network sites is fairly consistent INFORMATION OVEREXPOSURE 11% across all countries. SPYWARE INCREASE 10% Industry analyst Charlene Li notes that SPAM VOLUME INCREASE differences in social media usage by country 6% are less about cultural differences than EXPOSED ENTRY POINTS 6% about differences in access and social media DATA LEAKS penetration rates. Li says that because of high 7% penetration rates, “South Korea and Brazil BOTNET INTRODUCTION 5% are more likely to be producing content, while SPAM USE INCREASE other countries like the U.S. lean more towards 4% content sharing.” Web 2.0 Applications Adoption by Country 80% 70% 60% 50% Webmail 40% Content sharing Collaborative platforms 30% Streaming media Social network sites 20% 10% Italy SNG Japan Australia UAE Canada Spain Brazil Sweden Benelux UK USA France Mexico India Germany Poland Webmail “If it’s popular, it’s going to be popular with Content sharing Collaborative platforms the bad guys, not just the good guys.” Streaming media Social network sites 14 Web 2.0: A Complex Balancing Act Italy SNG Japan ustralia UAE anada Spain Brazil weden enelux UK USA France Mexico India rmany Poland
  • 9. Close to half of the leaders surveyed felt that One in four employees are most prone to using social media respondents did inappropriately by accident, perhaps due to lack not have concerns of awareness, or when they are dissatisfied with about employees compensation or management. using social media inappropriately. Social network sites are more likely to be linked In some cases, organizations are concerned about There are both real and perceived consequences of to security issues than other technologies. Among situations that might give rise to employees inappropriate Web 2.0 and social media use: Legal risks are a major concern for respondents who have experienced security inappropriately using social media. Close to half highly regulated industries such as incidences in their organizations, half suspected of the leaders surveyed felt that employees are • The financial consequence for security incidents healthcare or financial services. One social network sites as the cause, and 44 percent most prone to using social media inappropriately (including downtime, information and revenue hospital system, however, found a way to suspected webmail. In contrast, only 20 to 25 by accident, perhaps due to lack of awareness, loss) is an estimated average of $2 million for use social media successfully while staying percent of organizations suggested content sharing or when they are dissatisfied with compensation all Web 2.0 technologies. within the limits of the Health Insurance and collaborative platform tools as the cause of or management. Concerns about inappropriate Portability and Accountability Act (HIPAA). • Sixty percent of companies report that the security incidents. usage caused by managerial disputes are higher Scott & White Healthcare is one of the largest most significant potential consequences from in Spain, Brazil, Mexico and India, while pay healthcare systems in the United States, These statistics suggest that many organizations inappropriate social media usage are loss of disputes cause more concern to organizations operating 10 hospitals in the Texas area. Scott perceive employee usage of Web 2.0 to be non- reputation, brand, or client confidence. in the United Kingdom and Australia. Concerns & White uses Facebook, YouTube, Twitter and productive and potentially detrimental to business about accidental misuse are highest in the United • One in three organizations reported unplanned blogs to communicate with the public. On goals. Facebook is banned by nearly half of the Kingdom and Canada. investments related to “work-arounds” Nov. 5, 2009, a soldier opened fire at the Fort organizations, especially mid — to large-sized ones. necessary for implementing social media in Hood military base in Texas, killing 13 people In certain European countries like Benelux, Italy and In contrast, one in four respondents did not their organization. and wounding dozens of others (CNN, 2009). Spain, more than 60 percent of organizations restrict have concerns about employees using social Scott & White Memorial Hospital in Temple, usage. In contrast, only a third of organizations in media inappropriately. Respondents from small • Fourteen percent of organizations report Texas, was the closest Level 1 trauma center Japan, Germany and Brazil restrict Facebook. organizations and from Sweden, Germany, Japan litigation or legal threats caused by employees and received the highest number of Fort and the United Arab Emirates were the least likely disclosing confidential or sensitive information, Security experts explain that negative media Hood casualties. Steve Widmann, director of to be concerned that employees would use social with more than 61 percent of those threats coverage of Facebook over unilateral privacy web services at Scott & White, used Twitter, a media inappropriately, where approximately 40 caused by social media disclosures. changes might account for some of this concern. blog and YouTube to issue continuous updates percent of leaders were unconcerned. Also, the more users a tool has, the more likely throughout the day about access to the Organizational leaders are facing real it is to be a target. “If it’s popular, it’s going to hospital’s emergency room, hospital operation consequences when adopting Web 2.0 be popular with the bad guys, not just the good status and to keep the media and public technologies, but they recognize a growing guys,” said an IT security professional from a major informed. Both the local media and the public demand for employee usage. They continue to global nonprofit. showed support and gratitude for being kept seek the right balance to ensure technological up-to-date on developments. security while embracing and integrating the opportunities presented by Web 2.0 technologies. http://www.cnn.com/2009/CRIME/11/12/fort. hood.investigation/index.html http://www.forimmediaterelease.biz/index. php?/weblog/comments/the_hobson_holtz_ report_-_podcast_503_november_23_2009/ 16 Web 2.0: A Complex Balancing Act Web 2.0: A Complex Balancing Act 17