Critical Analysis 3

case_study_2.docx

Home >Information Systems homework help >Critical Analysis 3

Critical analysis needed 2

Introduction

The threat of a cyberattack to strike at any moment will only get worse before it gets better. As a result, this threat is also the reason of a massive investment in cybersecurity. Despite the innumerous report that exist in relation to the Cybersecurity industry, and the investment that is being predicted to be made by the billions by 2020, that questions are still echoes, is cybersecurity an industry? Cbinsights (2014) the frequency of cyberattacks to known companies such as, Facebook, Adobe, Evernote, Home Depot, Target and the Federal Reserve Bank can be a justification of the need of a cybersecurity industry. These attacks will only get clever and difficult to stop. As a consequence, these events has got the attention of investor with interest to profit from it by investing in cybersecurity. As it has noted by Cbinsights, in 2013 alone the investment in cybersecurity was 1.71 billion. In addition to an investment of 5.2 billion in the past five years. Additionally, investments in cybersecurity is consistent increasing. Another report by Marketsandmarkets (2015) noted that cyberattack is growing exponentially and more skillful. For that reason, there is demand for a solution from companies of all sectors. The report is predicting a substantial market growth globally from 106.32 billion in 2015 to 170. 21 billion by 2020. Studies after studies has pointed out that not only companies of all sectors have a problem, it also points to the belief that an industry has being created to combat cyberattacks and the investment is just as exponential as the attacks. Meanwhile, Cybersecurityventures (2015) reported the study by PWC that in 2014 alone the detection of attacks was 42.8 million worldwide, and cybersecurity crimes cost the world economy 445 billion. Thus the damage that cyberattacks has caused to economies across the globe, and the investment that is being consistent made, and the increase of these investment for years to come, it is the fundamental reason of why cybersecurity is an industry.

SIC/NAICS

In 1930 the Standard Industrial Classification (SIC) was created. The purpose was to classify and to promote the US economy. As time passed it was constantly reviewed to adapt with the dynamics of sectors of the US industries (Naics, 2016). With the rapid evolved of the US economy, as well as the world’s economy, the need to of a new system of classification was evident. As SIC came under fire by its critics, in 1997 Canada, Mexico and US came together to establish the North America Industry Classification System (NAICS) which replaced SIC. NAICS uses a production-oriented conceptual framework to group establishments into industries based on the activity in which they are primarily engaged (Bls.gov, 2012). Cybersecurity is not listed as a unique industry under SIC nor under NAICS. Rather, it is a breakdown of services, such as computer software, computer hardware, local area network, and wide area network… nonetheless NAICS goes through revisions periodically as industry of all sectors, and economy evolve.

Analyses

As noted cybersecurity is not listed as an industry within NAICS. Rather products that encompasses the foundation of cybersecurity is listed under sections such us, computer and electronics product manufacturing, information industry, professional, scientific, and technical services industry and others (Naics, 2012). The client could adhere the new suite of the cybersecurity products to the prefixes listed under these classifications. However, an attempt should be made to differentiate from its competitor that is current using the classification above. There is a number of other prefixes that can be attached to the new suite of the cybersecurity products to reflect the company’s new services.

Hardware

This product can be classified within the Computer System and Design Services.

· Computer System and Design Services are classified under industry 541512.

· CAD (computer-aided design) systems integration design services

· CAE (computer-aided engineering) systems integration design services

· CAM (computer-aided manufacturing) systems integration design services

· Computer hardware consulting services or consultants

· Computer systems integration analysis and design services

· Local area network (LAN) computer systems integration design services

· Network systems integration design services, computer (Naics, 2012)

Software

This product can be classified within Custom Computer programing Services.

· Custom Computer programing Services are classified under industry 541511

· Applications software programming services, custom computer

· Computer program or software development, custom

· Computer programing services custom

· Computer software analysis and design services, custom (Naics, 2012).

· Processing, Hosting, and Relating services classified under industry 218210

· Automated data processing services

· Data entry services

· Data processing computer services (Naics, 2012).

All the illustrated examples listed above are classification codes under the NAICS that can be used to represent the company’s new department of cybersecurity products. These selections will distinguish the company from its competitors. At the same time, projecting the company to the emerging industry of cybersecurity products and services.

Recommendation

A single code that can be used to coalesce all the products and services that the company intent to provide to its customer is NAICS code 5411512. This code combines a variety of services that can represent the products and services envisioned by the company’s new department of cybersecurity products. To illustrate. This code combines computer systems integration design consulting services, Wide area network computer systems integration design services, local area network computer systems integration design services, Information management computer systems integration design services, office automation computer systems integration design services (Naics, 2012). These are examples of services that any company that uses or provide will be looking to acquire the cybersecurity product that the company’s new department will be putting in the market.

Summary

The cybersecurity industry will only keep growing, for the fact that threats are growing, and so are the awareness to those threats. With the expectation of a cybersecurity market of over 170 billion by 2020, the growing sophistication of the attacks, it is imperative to have strong a cybersecurity industry that can provide the tools, and the technology to overcome the cleverness of the cybercriminals. The prediction of the spending in cybersecurity industry, offers opportunity for small companies to offers new product and service. As a consequence, generate new revenue.

References

Bls.gov. (2012). North American Industry Classification System (NAICS). Retrieved April 14, 2016, from http://www.bls.gov/bls/naics.htm

Cbinsights. (2014). Cybersecurity Industry Report – $5.2 Billion Invested Across 807 Deals Over the Past Five Years. Retrieved April 13, 2016, from https://www.cbinsights.com/blog/cybersecurity-industry-report/

Cybersecurityventures. (2015). The Cybersecurity Market Report covers the business of cybersecurity, including market sizing and industry forecasts, spending, notable M&A and IPO activity, and more. Retrieved April 14, 2016, from http://cybersecurityventures.com/cybersecurity-market-report-q1-2015/

Marketsandmarkets. (2015, June). Cyber Security Market by Solution (IAM, Encryption, DLP, Risk and Compliance Management, IDS/IPS, UTM, Firewall, Antivirus/Antimalware, SIEM, Disaster Recovery, DDOS Mitigation, Web Filtering, and Security Services) - Global Forecast to 2020. Retrieved April 13, 2016, from http://www.marketsandmarkets.com/Market-Reports/cyber-security-market-505.html

Naics. (2012). History of the NAICS Code. Retrieved April 14, 2016, from http://www.naics.com/history-naics-code/

Pwc. (2011, November). Decoding deals in the global Cyber Security industry. Retrieved April 15, 2016, from https://www.pwc.com/gx/en/aerospace-defence/pdf/cyber-security-mergers-acquisitions.pdf