How Big data transforms customer relations

April 3, 2013

I ended my last blog post with the statement “We are entering the age of smart computing and Big data which totally will change the social contract and the customer-relation.” I will in this post make some comments on why I think that the customer-relation will indeed change during the new era of Big Data.

Over time since the industrial revolution in the late 18th century we have passed basically four different ages as illustrated by a blog post from Forrester.

The change in the relation between the seller and buyer can be understood by looking on the main difference in these four ages as illustrated in the picture below:

 

 

The main difference in the fourth step is that the relationship needs to be based upon mutual trust. This since, to keep the relationship in a perfect 1-to-1 relation, the seller needs to send back valuable information to the customer to be able to get even more information from the customer to include in the next iteration of the Big Data analytics. This in order to shift from a traditional campaign-centric view of the world to one of continuous customer engagement. Here Forrester sees the possibility of a new type of class of providers “customer engagement agencies” (CEAs) and define them as:

“Agencies that focus on defining customer-oriented business strategies and mapping them to tactics and execution. They help clients maximize customer profitability and optimize customer experiences by applying data and analytics to every interaction.”

For the organizations that succeed in this they may start to focus on high-resolution management. As prof. Biran Subirana stated

High-resolution management is the next evolutionary step after lean manufacturing. High-resolution management is based on vastly lowering the scale at which you analyze space, time, products and business models. As a result, we have already started to see how a few different sectors have started fragmenting their products and services all with the aim of improving quality and reducing cost. In the long-term, we can cast our imaginations forward and imagine a world without a supply chain, and in its place a packetized distribution network, where each product contains all of the necessary information to essentially become its own store. As the resolution of each item increases, we will see greater randomization, more customization and increased frequency of delivery directly to the end consumer.”

The technologies of today in the age of smart computing and in combination with cloud computing makes it possible to start to implement high resolution management in an affordable way. And this will not only be true for commercial relations, this will happen for the relation between patients with health care systems, student with universities and citizens with governments. From that perspective the seller is coming to the customer – not the other way around.

So, as I stated in the previous blog post, in order to take the steps into mass personalization and an 1-to-1 relation that is based upon mutual trust organizations need to start establish strategies for

  • becoming more user-centric in dialog and offerings, i.e. mass personalization
  • handle privacy and ownership of data, i.e. to establish trust
  • handle governance around data itself, i.e. high-resolution management and the possibility for sustainable innovations
  • handle ethics related to Big Data, i.e. to avoid reputation risks

If your organization has not yet started to think how to adopt and take advantage of this you better do this. We are entering the age of smart computing and Big data which totally will change the social contract and the customer-relation.

Thanks to http://mathiasekman.wordpress.com/

 


Bit9 hack casts spotlight on security industry practices

February 18, 2013

451 Group (a research analyst firm) recently posted a meaningful blog article on this topic – http://idoneous-security.blogspot.com/ . Worth taking a moment to read as it effectively highlights what the security industry faces every day.

By confessing that its mistakes led to security breaches at three customers, Bit9 has sparked debate over whether the industry is ready to block hackers that see vendors as the door to other companies.

Bit9 disclosed last week that cybercriminals stole digital code-signing certificates from its computers and then used them to drop malware in the systems of three unidentified customers. The vendor acknowledged that the theft occurred on computers that it had failed to protect with its own product, which allows only software on a whitelist to run.

The hack is troublesome because cybercriminals are increasingly attacking vendors in order to steal technology that can be used to penetrate their customers’ systems. Vendors whose computers have been breached over the last few years include RSA, Symantec, DigiNotar, Verisign and Comodo.

Bit9 revealed in a blog post on Saturday that the attackers were using the vendor as a way in to its customers. “We can only speculate, but we believe the attack on us was part of a larger campaign against a particular and narrow set of companies,” wrote Harry Sverdlove, chief technology officer for Bit9.

Customers should not expect vendors to be anymore prepared to fend off attackers than most corporations. “Security vendors are no different than their customers and suffer from the same challenges: dealing with the threat landscape, and not having enough time/staffing/resources to accomplish all objectives,” said Rick Holland, an analyst at Forrester Research.

In fact, most security vendors are much smaller than enterprises and often have fewer resources available for security operations, Holland said. “Startups have even more challenges as investments in R&D, marketing and sales trump technology investments.”

Overall, vendors are more focused on implementing best practices in regards to security than their customers, experts say.

“Ultimately vendors of security need to be even more secure than the people that their technologies are protecting,” said Charles Kolodgy, and analyst at IDC. “Most security vendors understand this and I do believe they are better prepared to protect their intellectual property, but mistakes happen so those need to continue to be reduced.”

A certainty is no organization can be 100% protected against a security breach, and everyone is struggling to secure their systems against attackers who are constantly developing new tactics and technology.

“It’s the art of war,” said Gartner analyst Lawrence Pingree.

To better serve customers, vendors need to have procedures in place to handle quickly the consequences of the inevitable hack, Pingree said.

Scott Crawford, analyst for Enterprise Management Associates, said customers need to question their vendors about their security practices. “The focus in the security industry has been pretty similar to the rest of the technology vendor world, which is primarily on getting products out,” Crawford said.

Vendors should be drilled on how well they understand the impact a breach would have on customers, Crawford said. Other discussions should include their secure development practices.

“Do they treat their products the same way that someone designing products for aerospace, defense and the military would?” he said.

Experts agree that the security industry as a whole could benefit from sharing more information about malware and attacks. Currently, there are competing data-sharing frameworks sponsored by government groups, security vendors and the information technology industry, Holland said. Leading groups include OpenIOC, MITRE, and IODEF.

“If I were optimistic in the federal government’s ability to understand the issues as well as execute, I’d welcome legislation in this area,” Holland said.


Oops, we lost a few terabytes! NBD!

December 11, 2012

Earlier this week, Swiss intelligence agency (NBD) warned US and UK counterparts that they might have lost terabytes of top secret data due to insider theft by a disgruntled IT admin.  Reminds me of this xckd:

Chain of Command

We emphasize insider threats and the importance of zero trust all the time at Varonis.  Yes, it’s extremely important to secure the perimeter walls and use data loss prevention to protect endpoints.  But perimeter defense is far more straightforward, if nothing else, than defending against those who appear to be on your team – Kingslayers.

Inside jobs happen over and over again because they’re so hard to stop. According to a Forrester survey in 2010 [1], 43% of data breaches were caused by “trusted” insiders.  Just a few months ago, I wrote about the Zynga employee who, upon leaving the company, felt compelled to take 763 documents—including business plans and other IP—along with him.

So what do we do about it?  The answer is actually in Varonis’ mission statement: we ensure that that only the right users have access to the right data at all times from any device, all use is monitored, abuse is flagged.

Where do you stand in the battle against insider threats?

Are you alerted when statistical deviations in file system and email activity occur?

We jokingly call this our early resignation detection system since, sometimes, when someone is about to resign, they copy everything they’ve ever worked on.  But the alerting system in DatAdvantage was primarily designed to detect suspicious and potentially harmful behavior.

Are you alerted any time someone is granted admin-level access?

One of the top use cases for DatAdvantage for Directory Services is to always know exactly when someone is given super user rights, who granted it, when, and why.  And perhaps even more importantly, we can see what they’re doing with that access.

Do you know when IT administrators can, and do, access business data?

There’s likely no good reason for an IT admin to be rifling through customer records, changing the contents of business data, or deleting files without justification.  If you can say for certain that this isn’t even possible, you’ll be able to prevent a situation like NBD’s.  Incidentally, one of the core reasons businesses cite for not wanting to move corporate data to the cloud is that they lack visibility into what the cloud provider’s IT admin are doing with their sensitive business data at any point in time.

If you’d like a free data protection assessment to find out if your environment is at risk, sign up here.

[1] Source:Forrester, Forrsights Security Survey, Q3 2010


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