The internet has officially become old enough to start recycling itself. MySpace’s current owners say they intend to relaunch the once-dominant social platform. There is no announced launch date or detailed blueprint yet, but the news alone has stirred up plenty of nostalgia.
People immediately began remembering customizable profiles, carefully selected songs and enough amateur HTML to turn an entire page neon green. But the reaction is about more than nostalgia.
It also says something about how our relationship with technology has changed and what businesses should consider before embracing the next new platform, software tool or digital trend.
Why MySpace Sounds Appealing Again
Many people are tired of platforms deciding what they should see. Today’s social media feeds are shaped by algorithms that prioritize certain posts, advertisements and recommended content. Updates from people or businesses someone intentionally chose to follow can easily disappear beneath whatever the platform wants to promote that day.
That makes the idea of a simple, chronological feed feel surprisingly refreshing. For businesses, algorithm fatigue also highlights a larger concern: relying too heavily on a platform you do not control.
A company can spend years building an audience, only to have its reach affected by a change in an algorithm, advertising policy, ownership structure or platform strategy.
Social media can still be valuable, but it should not be the only way a business communicates with its customers. Email lists, direct client relationships, company websites and other owned channels provide stability when outside platforms suddenly change the rules.
Technology Risk Looks Different Today
In 2007, a technology problem might have meant a broken profile layout, a slow page or a song that refused to load. Today, introducing a new platform or software tool can create much larger questions:
What customer or employee information will the platform collect?
Where will that information be stored?
Who will have access to it?
What happens if the vendor experiences a breach?
Can the business continue operating if the platform goes offline?
How easily can company data be retrieved or transferred?
Does the organization’s insurance program reflect the new exposure?
These questions are not limited to large technology companies.
Businesses of every size now depend on outside vendors for payroll, customer records, payments, communications, file storage and daily operations. Each connection can make work easier, but it can also introduce another point of vulnerability.
Before Adding a New Platform or Vendor
A polished demonstration and a long list of features can make new technology tempting. Before signing on, businesses should look beyond what the product promises and consider what could happen if it fails. Start with three practical steps.
Understand what the technology touches
Determine what information the platform will collect, what systems it will connect to and which employees will be able to use it.
A scheduling application that stores little sensitive information presents a different exposure than a system connected to payroll, financial records or customer data.
Review the vendor
Ask how the provider protects data, manages access and responds to security incidents. Businesses should also understand how quickly they will be notified of a breach, whether the vendor uses additional subcontractors and what happens to company data when the relationship ends.
Consider the operational and insurance impact
Think through how the business would operate if the platform became unavailable.
It is also worth discussing significant technology changes with your insurance advisor. Adding new systems, collecting more information or becoming more dependent on outside vendors may affect cyber, professional liability or other insurance considerations.
Innovation and Risk Management Should Grow Together
New technology can create efficiencies, improve customer service and open doors that did not exist before. The goal is not to avoid innovation. It is to understand what comes with it.
Shiny features get the attention, but thoughtful planning helps keep a business running when a vendor fails, a platform changes direction or a cyber incident interrupts operations.
The possible return of MySpace may be driven by nostalgia. For business leaders, it is also a useful reminder: platforms come and go, but responsibility for protecting your data, operations and customer relationships remains with you.
DiNicola Insurance Services helps businesses understand the insurance considerations that can accompany changing technology and cyber risk.