The Success of Flayton Electronics - Case Study Example

Boss I Think Someone Stole Our Data 31st January Data Introduction The case study describes howFlayton Electronics firm noted that the security of its customer data had been compromised and they had to make decisions on steps they should undertake to deter such invasions. The company owners realized this after Union Century Bank who regularly examined fraudulent accounts patterns for Flayton Electronics informed them that they had shown up as a common point of purchase for an above-average number of bad cards. This was disturbing news to the owners of the company since they were wondering who was concerned with the thefts and how it happened. The focus for Flayton Electronics was to determine where the problem started and to solve it before the customers learnt about it from the media or other sources. Critical success factors (CSF) Howell (2010) defined critical success factors as a limited number of conditions in a business that have a direct impact on the effectiveness and efficiency of a project. Critical success factors (CSF) are the important areas of a business activity that must be performed well if the enterprise is to achieve the set missions and goals of the organization (Howell, 2010). CSF is important as it helps the business to create a common point of reference of help during the problems that may arise during the operations of the business and measure the success of the project (Wiener, 2006). The managers of Flayton Electronics did not carefully take key interest in the area that receives constant and careful attention, which is the security of the customers’ data. According to the case study, the critical success factors in Flayton Electronics firm were to ensure that the security of the customer’s data, attract and satisfy new customers and to create successful relationships with the customers. There was a data breach in Flayton Electronics firm where there was evidence of purchase of an above average number of bad cards. This was a critical set back to the firm since they would lose important information that was private and the customers would not be amazed to hear such information from a firm that they have entrusted with all their savings. This data breach in the firm means that the managers were not keen enough to follow the critical success factors of the business. This is because as stated in the case study, Laurie who was responsible for security was not sure of all the information she was supposed to know about the breach. Brett Flayton the CEO started researching about how theft happens the next morning after realizing that their company was at threat, which is something that he should have been aware of as the CEO of the company. Sergei the CIO stated that change of technology was a complicated process and hence, the use of credit cards had many complexities to be dealt with. Project benefits, organizational readiness and risk culture of the company Flayton Electronics firm was a regional chain with 32 stores in six states and customers were able to purchase their products online. The benefits of the project were to get maximum profits from the sale of electronic products from the firm, using the new payment card industry (PCI) for data protection. This would enable customers from the six states to make purchases without any problems since their account information details would be captured in the payment cards. The security manager of Flayton Electronics and other employees did not anticipate any kind of theft would happen since the idea of payments using credit cards was a new development in their organisation. As stated in the study, coping with theft involving credit card information was a new territory for Laurie, since all of her professional experiences had involved the stealing of physical properties. Sergei the CIO also stated in the case study that the company becoming PCI compliant is complicated especially when the firm was constantly improving their own technology. There were many high priority projects at various stages of implementation, which needed to be taken care of hence forgetting the probabilities of data being stolen using credit cards in Flayton Electronics. Well-stam (2004) defined risk culture as the system of values and behaviours present throughout an organisation that shape risk decisions. The risk culture of the company saved it from the theft activities that were taking place unnoticed. The Union Century Bank ensured security of the business by regularly examining the fraudulent accounts for patterns and any suspicious activity going on in the business. As mentioned in the study, the routine analysis by Union Century Bank of fraudulent credit card charges identified purchases at the company from compromised accounts. There was also a risk culture followed by employees when there was a problem. The security officer wrote a memo to the CEO informing him that there was a data breach; the CEO also took various steps to investigate the situation by secretly searching for information to find the underlying cause of the problem and finding possible solutions. Project risk recommendations Hillson and Simon (2012) referred project risk recommendation to the steps companies should consider before developing new projects and strategies. Based on the analysis in the case study, Flayton Electronics should have considered its critical success factors to ensure that their business runs effectively. The management of the company is supposed to ensure that the security of their customers’ data is protected by ensuring that no loophole is left in the new technologies that are developed like the use of credit cards (Hillson and Simon, 2012). All the possibilities of fraud should be evaded at the initial steps of project development to ensure that there is safety and all the problems that may arise during the business operation have a solution. The organization should be ready for any problems that may arise during its operation by ensuring they have a way to solve this problem. Flayton Electronics should plan for projects risks and have a way to identify and assess risks that arise and come up with a coordinated and economical application of resources to minimize the problems as Virine and Trumper (2008) stated. Project risk planning helps in lowering the costs involved in ensuring the problem solution and prevents confusion of the managers and employees in trying to identify where the problem started. The employees of the organization should be trained on the risk culture of the company to ensure that they are aware of the steps they are supposed to take when a problem arises (Barkley, 2004). This will guarantee the right procedure is followed in times of crisis and the management will ensure that the problem is solved using legal means. Barkley (2004) stated that the risk culture of the company helps in achieving the strategic objectives of the company. Categories of risks According to the writings by Hillson and Simon (2012), it is stated that the categories of risks in the case study RBS level 1 include the technical risk and the commercial risk. In RBS level 2, the technical risk involves security, safety, and technology in the case study. According to the case study, the security of the customers’ data was undermined when their data was breached. Their customers were not safe since their credit cards were being used in fraudulent deals. The new technology used made it easier for the theft to occur since the management team was not conversant with how the new technology works. In addition, to the RBS level 2, the commercial risk threatened clients and customer stability. After the customers’ data was breached at Flayton Electronics, the risk involved was that the clients would change the business focus and withdraw support for the projects at the company. The customers would also lose trust in making purchases at the company for fear of their private information being used to steal money from the banks. Conclusion Companies should be aware of the current ways the hackers are using to steal from the shops, banks and the people in the society especially with the development of advanced technologies used like credit cards. Business people should therefore be careful to make sure that their systems are updated and have security measures that reduce cases of online theft. The companies should have risk cultures that ensure achievement of strategic goals of the company and security of their customers. References Barkley, B. T. (2004). Project risk management. New York : McGraw-Hill Professional. Hillson, D., & Simon, P. (2012). Practical project risk management: The ATOM methodology. Tysons Corner, Va: Management Concepts. Howell, M. T. (2010). Critical success factors simplified: Implementing the powerful drivers of dramatic business improvement. Boca Raton: CRC Press. Virine, L., & Trumper, M. (2008). Project decisions: The art and science. Vienna, VA: Management Concepts. Well-Stam, D. . (2004). Project risk management: An essential tool for managing and controlling projects. London: Kogan page Wiener, M. (2006). Critical success factors of offshore software development projects: The perspective of german-speaking companies. Wiesbaden: Dt. Univ.-Verl. . Read More