Ever Changing Technology: What's Right for You and Your Business - February 8, 2008
Comprehensive IT Planning and Security for Small Businesses in the 21st Century
“WHEN, not IF your small business is attacked.”
TJX, the parent company of T.J. Maxx, Marshalls, HomeGoods and other retail stores, failed to address serious security risks concerning consumer credit card data. Approximately 45 million credit and debit card numbers were stolen over an 18-month period from 2002-2004. The resulting $8.3 billion in estimated losses and reputation damage could have been prevented with an IT security plan.
Small business owners may think that their companies are insulated from cyber attacks or that they are too small or too obscure to end up in the crosshairs of a criminal. “Not so fast,” said Dr. Eric Johnson, associate professor at the Indiana University Kelley School of Business at Indianapolis. “Sometimes companies are attacked not for the information about their own transactions and other records, but as a portal to a bigger fish. Studies show that Internet-connected networks that are not adequately protected are usually discovered by hackers in about 24 hours.”
Dr. Johnson and Michael Wessler, a consultant with Perpetual Technologies, Inc., presented Information Security: Always the Right Choice at a recent Main Street Institute event, which is a partnership between the IU Kelley School of Business at Indianapolis and the Greater Indianapolis Chamber of Commerce.
The presentation focused on IT security as a top management issue, not a technical issue. It is as vital as any other accounting, manufacturing or other operations function. Johnson and Wessler explained that the negative impact on revenue alone is usually the best argument to convince small business owners and managers to include IT security planning into their annual strategies. The pair shared information about different IT security models, stressed the importance of support from and by top management and offered insights into how to conduct risk assessments, asset valuation and other practical applications.
“IT Planning Comes of Age: From Chaotic to Strategic”
If small-business owners want to make sure that their IT systems are offering them the best return for their investments, they should begin by evaluating their strategic business plans. This was one of the over-riding messages of the four presenters who participated in the second breakout session of the Main Street Institute event on February 8.
Aligning Technology to Your Business Strategy was presented by business intelligence practice manager Ann Edwards, client development manager Wayne Taylor, marketing and communications professional Julia Sabatine, and Scott Jordan, president and founder of DELTEC Information.
The presentation focused on the different stages of IT maturity. Most organizations go through a process including a chaotic stage, reactive stage, proactive stage and managed stage before reaching a strategic stage, which is adequately aligned with top management priorities and viewed as a strategic asset.
The panel also cautioned attendees not to think of IT as a necessary evil, but as a helpful tool. Technology is not the answer to every small business problem, but ignoring technology issues will only lead to larger problems and bigger losses. Improperly applied and ineffectively managed technology infrastructure can do more harm than good to an organization.
