Case Study Chapter 8: A Stolen Laptop at the Department of Veterans Affairs: The Worst Data Theft Ever?

Question 1.
There were several security weaknesses at the VA. First of all, employees could take laptops with sensitive information home and have access to the data outside of the premises. Secondly, the data were not encrypted. At the start of the investigation it was also concluded that the operation system, the password system and detection alerts were not properly secured either. The reporting procedures were not clearly outlined which resulted in the delay of the theft being reported to the law enforcement.

Question 2.
There were a lot of factors that contributed to the weaknesses listed above. First, in 2004 recommendations were made as a result of an audit to centralize IT security systems, to make sure that employees were aware of and followed rules pertaining to data access and complete the implementation of processes related to intrusion detection systems. It was noted that these suggestions were not fully implemented by the management due to strong resistance to change throughout the organization.

Question 3.
To effectively deal with the problems, a lot of changes had to be implemented at the VA. The reorganization plan for the IT operations was approved. The department needed to merge the 2 IT domains in order to fully centralize all the activities. The chief information security officer needed to have greater authority in order to enforce security policies. So, it was decided to raise in rank the chief information officer and the chief information security officer. However, it is not clear from the case study whether the VA was able to fully implement all of these measures in order to solve these issues.

Article - Nokia to Sell Phones With Skype Software

The Internet calling company Skype has made a deal with the biggest cell phone maker Nokia to install Skype software on its newest high-end phones. It is estimated that new phones will enter the market some time in the third quarter of this year. Skype has been entering into partnerships with several cell phone service providers but partnering up with a manufacturer is a great milestone for Skype, according to its CEO Josh Silverman.
A lot of cell phone service providers are afraid that installing Skype on cell phones will decrease their revenues due to the fact that people will not pay practically anything for calls. However, according to Silverman, one of the cell phone service providers that installs Skype on their phones, actually saw an increase in revenues. He explains that consumers started choosing plans with flat rate and were more likely to stay with the same provider.
This article relates to the topics of chapter 7 of the textbook. This is just another service that has become available to consumers due to the technological advances in Internet, telecommunications and networking. I like the idea of having Skype on my cell phone a lot. I won't be limited to having to sit at my computer to make a call via Skype, I'll be able to do it any time I have a cell phone on me.
References:
1. Nokia to Sell Phones with Skype Software 02/17/2009
http://www.wired.com/techbiz/media/news/2009/02/reuters_us_mobile_fair_skype_interview

Scientists Map the Brain, Gene by Gene

Scientists at the Allen Institute for Brain Science in Seattle are working on a huge project to make a detailed map of the human brain, gene by gene. The Allen Brain Atlas would describe the cortex of the brain at the level of specific genes and neurons. If the project is successful, scientists will be able to use the maps to decipher thousands of genes that make the human brain. The scientists at the institute believe that mapping the brain may eventually lead to new techniques in diagnosing and treating of various mental conditions.
Since scientists were talking about possibly analazying 20,000 genes, it became clear that it couldn't be done by hand, and the brain map needed to be in the form of a database. If such a database of human brain existed, it would dramatically increase the speed of research.
To draw a genetic map of the brain scientists at the Allen Institute created an advanced system that could process brain tissue and data very quickly, at levels previously unheard of. During the first step the brain is hand-sliced in 5mm pieces and frozen. Next, a special machine further shaves each piece into thousands of slices that are only several microns thick. These slices are then put on bar-coded glass slides. Next, robots sample each slice for a particular gene and then stain it with dye. During the next step robotic microscopes take pictures of each sample. The color and intensity of dye is used to calculate the amount of gene in the sample. The brain map is correlated by gene and location and stored in the database on the institute's servers. When the project is completed, the brain atlas along with advanced tools to analyze the data will be available to all scientists for free. The project is expected to be completed in 2012.
I was really impressed by this article. It shows how advanced contemporary database systems are and how they can be used in different fields, such as medical research, and how database systems can lead to further technological advances in different fields.

References:
1. Scientists Map the Brain, Gene by Gene. By Jonah Lehrer March 28, 2009
http://www.wired.com/medtech/health/magazine/17-04/ff_brainatlas?currentPage=1
April 17, 2009

Merryll Lynch Connects Past and Future Technology

Question 1.
One of the main reasons Merryll Lynch needed to update its IT infrastructure was to remain competitive. The company wanted their clients to be able to have access to their accounts and portfolios on the Internet. To provide this service was key to staying competitive.

Question 2.
Information technology is one of the most important components of Merryl Lynch's operations and strategy. The company's extraordinary growth was largely due to its information technology advances. Again, Merryl Lynch considered IT upgrade as a way to be competitive and stay ahead of the game.

Question 4.
On the one hand, I don't think selling off their IT initiatives was a good idea because it could give the company's competitors a choice to copy and duplicate it. In my opinion, the company's IT may be considered one of its core competencies, and you never want to share your core competencies with your competitors. However, apparently, it turned out to be a pretty good deal for Merryl Lynch because it tremendously increased IT budget that can be used for further IT developments and enhancements.

Blockbuster vs. Netflix: Which Will Win Out?

Question 1.
Blockbuster has emerged as a video rental business in 1985, and until 2004 its business model has been to open up as many "brick-and-mortar" stores across the country as possible.Until online movie rental companies started coming into play in the late 1990s, Blockbuster's business model proved to be very successful: according to the case study, Blockbuster possessed a 40% market share of the video rental industry in 2004.
Question 2.
Several industry and technology forces have challenged Blockbuster's business model. First, the appearance of other players with a different business model has created competition in the industry. Netflix came out with a dramatically different concept in 1998 by offering an online subsciption service for a low monthly fee, with no late penalties and by delivering movies directly to the customers via mail. The expansion of Internet and related technologies has also caused other companies, such as Movielink, to get into the downloading business and take away even more customers from Blockbuster. Users can download a movie onto their computers and watch it on the computer or re-route it to the TV screen with the use of special cables. With the development of these technologies Blockbuster is now facing several problems. It has to find a way to retain existing customers as well as keep attracting new ones. Blockbuster decided to eliminate all late fees and also created its own online rental service that is integrated with its stores. A Blockbuster customer can order a movie through the online service, receive it in the mail and then return it either in the mail or to any Blockbuster store. If the customer chooses the latter option, he can also rent a movie from a store free of charge.
Question 4.
I think Netflix has been very successful at its strategy and business model. It has been in business since 1998 and had more than 3 million subscribers by 2005. It offers a simple, convenient and fast way to rent movies and return them at any time. When a movie is received at the distribution center, a new movie from the customer's "wish list" is sent out. In my opinion, however, Netflix will have to get into the movie downloading segment to remain competitive in the future.

About Me

I work at Santa Barbara Surgery Center in the position of the Materials Manager. I take care of purchasing surgical supplies and managing inventory. We use a patient management system called AdvantX, and the Materials Department has its own software, OptOR, for managing inventory and purchasing. I was born and raised in Russia, and I graduated with a BA/MA degree in English and Translating from Nizhniy Novgorod State Linguistic University in Russia.
I was doing rhythmic gymnastics for 6 years, and this is still my favorite sport along with figure skating. I also enjoy group classes at the gym (body works, step and cycling), I love reading, cooking Russian food and travelling.

Consumer Group Asks Congress to Investigate Bandwidth Caps

Time Warner Cable is planning to start charging its Internet customers by the volume of their downloads and introduce overage fees if one goes over the cap. By doing this TWC hopes to protect its TV cable business from the threat of movie downloading. FreePress, the consumer group, is encouraging its members to sign an anti-cap petition and submit it to Congress. According to FreePress, TWC's behavior is anticompetitive and should be investigated.
TWC proposes a tiered system that starts with $15 a month for 1GB of downloads with a $2 penalty for every GB above the cap. The highest tier costs $150 a month with no cap. TWC is testing its new program in Texas and is planning to expand its trial to some of New York and North Carolina markets.
I think this article relates to the topis of ethical and social issues in information systems. Movie downloading has become largely available due to advances in IS. High Internet connection speed allows to download movies in minutes for free without having to pay extra for movie channels. This is hurting cable companies that have historically thrived on charging customers extra if they want to have movie channels, and they have to find a way to make a profit. Is it justifiable for TWC to introduce caps on downloads? Will customers stay with TWC or will they find a different provider? I think most customers would go somewhere else if they had a choice, but they don't always do since cable providers often enjoy a monopoly in the area where their services are provided. So, TWC would take advantage of its customers which I believe is unfair.

References:
1. Consumer Group Asks Congress to Investigate Bandwidth Caps.
http://blog.wired.com/business/2009/04/consumer-group.html April 10, 2009