Information Technology Reference
In-Depth Information
13.3.1.2 Revenue Acceleration
IA may decrease time to market of a product or service. The innovation, develop-
ment, and manufacturing may be faster due to secure online processing of com-
munications. IA features may add nonrepudiation (digital signatures) for faster
processing of binding agreements, resulting in less delay due to paper processing,
in-person meetings, and the need for pen signatures. IA may increase cash flow for
similar reasons; customer payments are accelerated due to secure communications
or online transaction processing. IA may contribute to secure automation of invoic-
ing, collections, deposits, and electronic transfers.
13.3.1.3 Sustain Revenue
IA contributes to sustaining existing revenue streams. One example is a secure E-
commerce site that protects the revenue realized by that site. IA contributes to cus-
tomer retention due to high levels of security and privacy. IA contributes to market
share retention due to IA features surrounding the customer use of your products
and services. For example, a secure Web site is less likely to suffer from vandalism
or hacker interference that may affect customer perceptions.
13.3.2
Cost
13.3.2.1
Reduce Cost
By ensuring secure online processing of transactions (e.g., E-commerce), IA con-
tributes to the reduction of manual processes involving paper, printing, mailing,
faxing, and the associated costs in labor and materials. Effective and provable appli-
cation of IA contributes to the reduction of E-risk insurance premium costs. IA
contributes to liability reduction via the
reasonable-man
review.
We put in place X,
Y, and Z as prudent privacy safeguards. These are best industry practices. What more
could we be expected to do?
There is also a reduction in liability exposure due to
legislative compliance.
13.3.2.2
Avoid Cost
IA contributes to cost avoidance through legislative and regulatory compliance; i.e.,
avoid fines for noncompliance and avoid legal fees and court costs for defending
corporate officers. IA helps to avoid penalties for failure to meet SLAs by preserving
availability (uptime) of service.
IA contributes to cost avoidance by protecting assets, for example, safeguard-
ing of intellectual property and availability of information and information technol-
ogy resources. Productivity improvement is cost avoidance (hiring additional people
