Manage opportunities and risks associated with new technologies
Most companies — large and small — are using social media and cloud computing in one form or another and, increasingly, companies are realizing the power of big data. Together, these technologies are leveling the competitive landscape for businesses in Maine and beyond. The opportunities and risks associated with emerging technologies are unprecedented, but seizing the opportunities while managing the risks is critical.
Big data
Seizing opportunity: Big data consists of high volume, high velocity and/or high variety information assets that require new and powerful forms of computer processing to distill commercially valuable insights. Retailers use big data to identify customer preferences from region to region and stock their stores accordingly. If you have visited Amazon or eBay recently, the results of big data analytics can be frighteningly relevant. Outside the retail sector, big data is being used in the fields of health care, security, law enforcement, banking, scientific research, manufacturing, human resource management and more.
If you are not using Google Analytics, Facebook Insights or something similar to help manage your web presence, you probably should be.
Managing risks: As the collection, maintenance, use and sharing of customer data increases, it is critical for companies to think and plan ahead with respect to potential data usage. And when making use of data, whether collected directly from clients or customers or obtained from a third party, it is important to ensure that such use is permissible and consistent with the rights you have obtained. Use of personal data in a manner that is inconsistent with your privacy policies and data rights can give rise to regulatory enforcement actions, breach of contract claims and class action litigation.
Cloud services
Seizing opportunity: For our purposes, when we talk about the cloud, we are simply referring to services provided remotely via the Internet, also known as software-as-a-service, platform-as-a-service and infrastructure-as-a-service. Cloud services provide business services and functions that used to be handled in-house and on-premises. With increasing frequency, companies are engaging cloud-based service providers for things like customer relationship management, office productivity, project management, IT and accounting. Salesforce.com's cloud-based CRM service changed the industry, and many small businesses are transitioning to services like Google Apps for Business for email, word processing and file storage. Cloud services can deliver cutting-edge technology at affordable prices.
Managing risks: Outsourcing services to the cloud creates vulnerabilities. More than ever, companies are reliant on third-party vendors in remote locations to deliver mission-critical functionality and entrusting them with valuable data. A service interruption or data breach at a cloud vendor is a significant risk, but one that can be managed with appropriate due diligence, contractual protections and other strategies.
Social media
Seizing opportunity: Smart companies are using social media in innovative ways to engage with customers and drive business. Whether your business is B2B, B2C or both, there are a variety of social media platforms to be aware of, including Facebook, Twitter, Linkedin, YouTube, Pinterest and Instagram. Facebook, for example, has approximately 1.2 billion users; Twitter has roughly 230 million active users. Customers with strong product and brand affinity who share social content with others can be a game changer.
Managing risks: Conversely, a bad customer experience can go viral, resulting in reputational harm and lost sales. In 2012, a Canadian coffee company infamously underestimated the power of social media. It offered free single-serve coffee packages to all Facebook users who liked its page, and was unable to meet demand after social media aggregators spread the word. Its failure to live up to its promise and slow response via social media was more widely publicized than the promotion itself. You should have a plan to manage your employees' social media usage.
Matt Stein is a partner at in the Intellectual Property & Technology Group of Pierce Atwood. He can be reached at mstein@pierceatwood.com
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