Risk concerns stall uptake of Web 2.0 technology in the workplace

While corporate executives globally agree that adapting consumer-based Web 2.0 tools (such as Wikis, blogs and social networks) has the potential to transform business, concerns over security and governance are preventing widespread uptake, according to a survey by KPMG International and the Economist Intelligence Unit.

In a cross industry survey of 472 executives around the world almost 70 percent believe that Web 2.0 tools will help employees to work more efficiently, 75 percent of respondents felt that Web 2.0 technologies will foster innovation within their businesses and 86 percent see them improving knowledge sharing. However, while these benefits are encouraging some companies to embrace Web 2.0, for others, potential risks are hindering their uptake.

Over half of respondents feel that protecting and securing critical data is the chief barrier to adoption, while a third admit that not knowing how to measure the impact of the technologies is the most serious challenge to implementing them more broadly across their company. In addition 45 percent cited a fundamental lack of understanding about how Web 2.0 relates to their business.

Crispin O'Brien, Chairman of Technology, KPMG commented: "Web 2.0 is not just about novel consumer technology, there are real business benefits to be derived from enabling more effective knowledge sharing and collaboration among employees. The challenge for the technology industry is to communicate these benefits to customers effectively and address the concerns that remain around security and relevance to different industries."

Implementation of Web 2.0 governance structures varies by industry with some industries indicating they are ‘already there’ and others planning to make significant changes in the next two years. Many respondents indicated that their organisations have not yet addressed the risks of Web 2.0 in any systematic way – fewer than half say they are currently putting in place governance programs that will guard data from unauthorised external access and only 28 percent have included Web 2.0 tools in their risk management processes.

Across industries, IT/technology companies and financial services companies show most awareness of the risks of Web 2.0 and have taken steps to head them off, 52 percent and 60 percent respectively have policies in place to protect digital content from unauthorised access, with the remainder indicating they will do so within two years.

Just over a third of respondents in the entertainment, media, publishing and communications sectors currently have policies in place, despite digitalisation being most advanced within these sectors. Interestingly industries such as automotive and construction & real estate are further ahead with 40 percent and 50 percent respectively having these policies in place.

Consumer Goods industries are the least progressed with policy implementation on this issue, with just one quarter of respondents in this sector having policies aimed at protecting digital content.
Crispin O'Brien continued: "It could be that technology and financial services companies are more attuned to these risks due, to the less tangible nature of the products they deal in, compared with construction or automotive industries. But these more traditional industries can definitely benefit from these new technologies not least of all from the point of view of R&D and increased innovation.

"For the technology sector unlocking the revenue generating potential of these new tools lies in creating a dialogue with customers to help them understand how they can use these tools securely – for the tech companies that achieve this the rewards will be worth the effort."

•Date: 8th January 2008• Region: World •Type: Article •Topic: Operational risk
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