Archive for September 2012
A Ryder Cup 2012 Preview: Just Go For It!
Well, the 2012 Ryder Cup is only 1 day and 11 hours away, as of this writing, and the first tee-time couldn’t come quickly enough.
After such a stellar 2012 golf season for the PGA Tour, and golf more broadly around the world, the 2012 Ryder Cup at Medinah in Chicago will be a fitting climax to the golf year, especially considering the caliber of players lined up on both the American and European sides.
I, like all golf fans, would love to see Tiger Woods and Rory McIlroy paired against one another in the Sunday’s singles matches, but I, like everyone, including the captains, will have to just wait and see how the tournament plays out Friday and Saturday in the fourballs and foursomes.
As mentioned in a prior post, the Americans will be led by veteran Ryder Cuppers Phil Mickelson, Steve Stricker, Tiger Woods, and Jim Furyk.
Newcomers to watch will include 2012 FedExCup winner Brandt Snedeker, as well as Webb Simpson and Jason Dufner.
On the European side, Rory McIlroy will be the defacto team leader because of his world number one ranking, but experience on the European side will fall to stalwarts like Lee Westwood, Ian Poulter, and of course, Sergio Garcia.
As for pairings, we’re still eagerly awaiting those, but based on early readings, we can expect to see Tiger Woods and Steve Stricker playing together through the weekend, along with Rory McIlroy and Graeme McDowell.
Phil Mickelson is expected to take newcomer Keegan Bradley under his wings, and Luke Donald and Sergio Garcia are also likely pairings at some point.
In terms of projections, the Europeans certainly seem to have an advantage, having garnered more points than the Americans the last few Cups, and certainly coming into Medinah holding the Cup they won at Celtic Manor in 2010.
Then again, these are teams with players very fairly matched, and the top players in the world at that. I think it will come down to that side whose players can keep their nerves at bay, and still have nerve enough to go at the long par 3s at Medinah when circumstances warrant.
That, and the putting. Always the putting.
As for the renowned 15th hole at Medinah #3, which has been shortened to a 391-yard par four, we’ll see whether or not Bubba Watson can contain himself and not attempt to drive the green in his matches.
Phil Mickelson commented to Golf Week he thought it was an easy birdie lay-up hole, and one can see in a close match with one team behind why it would be awfully enticing to just go for it!
IBM’s New Global Cloud Initiative: Delivering Simpler IT
IBM has made a series of important cloud computing announcements this year, including advancements to the IBM SmartCloud portfolio, through which IBM now manages 1+ million enterprise application users, and over $100 billion commerce transactions per year. In today’s announcement, IBM is broadening its cloud reach by extending its solutions and services on IBM SmartCloud and PureSystems to Managed Service Providers (MSPs).
Some big cloud news has just hovered over the IBM horizon.
Big! As in big, fluffy, floating cotton cumulus kinda clouds.
Only, we’re talking about the IT kind of cloud, not the real clouds.
Today, IBM announced a broad set of global initiatives to better position clients to take advantage of cloud opportunities.
Aimed at further expanding IBM’s cloud ecosystem, this effort is intended to enable organizations to develop solutions and services on IBM SmartCloud and PureSystems, built on open standards.
Managed Service Providers: Making The Cloud Real For Clients
As more clients embrace cloud computing, they are looking to local technology providers known as Managed Service Providers (MSP) to help them quickly develop cloud based services in a more simplistic, secure and economical way.
Managed service providers deliver a defined set of technology solutions or services to clients with a pay-as-you-go model. MSPs are largely leveraged by customers which want to take advantage of cloud technologies but lack the internal IT skills, resources and time.
As part of today’s news, IBM is taking its collaboration with MSPs and its global ecosystem one step further by enabling them to build innovative solutions and services on IBM’s advanced technologies such as SmartCloud, PureSystems, and analytics.
IBM will also provide MSPs access to IBM experts with deep technical skills at four new global centers of excellence; and offer an unmatched set of programs to support MSP marketing efforts to help them build their brands, generate demand for their services, and grow their marketing skills.
Additionally, IBM will offer affordable financing options through IBM Global Financing to help MSPs acquire new technologies.
Here are some of the highlights from today’s announcement:
- Access to Global Centers of Excellence: IBM is launching new Global Centers of Excellence in Shanghai; Tokyo; Ehningen, Germany; and New York City to provide MSPs with access to IBM’s deep technical expertise to develop innovative cloud services and solutions on IBM’s open stack to address industry-specific client needs. This will enable MSPs to get hands-on technical expertise in building skills on technologies such as IBM SmartCloud, PureSystems, storage, security and collaboration. MSPs will also have access to IBM’s 40 IBM Innovation Centers in 33 countries for joint client engagements. In addition, IBM will launch a virtual briefing center that will provide an ongoing forum for MSPs to share ideas and knowledge around industry challenges clients are facing today. This community will enable ongoing engagement of MSPs as well as IBM experts to share best practices.
- Dedicated Marketing and Sales Support: IBM will now offer an unmatched set of marketing and sales support initiatives tailored to MSPs. These initiatives are designed to help MSPs grow their businesses, build their brands and create demand for their capabilities. The new program will provide MSPs with solutions for building a complete marketing plan and a four-part education effort on how to effectively use social media to grow their businesses and better target their clients. Additionally, MSPs will gain access to IBM analytics capabilities to help them identify new customers and capture additional opportunities with their existing customers. As part of the program, MSPs will also receive dedicated support from IBM to guide them through the program and take advantage of the resources made available. A significant part of the $100 million IBM has invested annually in marketing efforts for its global ecosystem will now be made available to MSPs and their marketing efforts.
- Seizing the Opportunity with PureSystems: PureSystems will provide a new, integrated, by-design platform for MSPs to tune hardware and software resources for data intensive workloads. The integration of the PureSystems platform, coupled with the patterns of expertise technology and the flexibility to configure an application for either an on-premise or hosted environment, makes the PureSystems platform a natural choice for MSPs.
- Building on the Advanced Capabilities of IBM SmartCloud: MSPs can take advantage of IBM’s SmartCloud, including an option to integrate the offering as an IBM-backed solution or under their own brand in the market built on IBM SmartCloud Enterprise to expand the services they offer. IBM will also work with new MSPs to design and develop their data center strategies, leveraging IBM’s years of experience in data center best practices.
- Financing Options through IBM Global Financing (IGF): MSPs can acquire new technology solutions and services to support their growth with flexible, affordable payment plans for IBM systems, software and services — including 12-month, 0% loans for IBM Systems, Storage and Software. A payment plan from IGF can provide MSPs with low monthly payment options while avoiding large, up-front cash payments, the ability to upgrade their systems mid-lease and improve IT asset management. MSPs that select PureSystems platforms may defer their first payment for 90 days.
Expanding the IBM Cloud Ecosystem, Addressing Cloud Security Concerns
Members of IBM’s ecosystem, which includes independent software vendors, systems integrators, value-added resellers, and MSPs are collaborating with IBM to take advantage of IBM’s higher value capabilities such as SmartCloud, PureSystems and analytics to build industry specific cloud services.
To date, IBM has built relationships with more than 1,400 MSPs, such as Perimeter, Symmetry, Velocity, CenterBeam, Oxford Networks, PEER 1 Hosting, Connectria, and others. These MSPs are focused on delivering industry specific capabilities such as helping a small healthcare provider manage digital records on the cloud securely, or helping a midsize bank enable their clients to securely conduct more and more of their daily transactions via smartphones.
Additionally, IBM Business Partner Perimeter E-Security, based in Milford, CT, is collaborating with IBM to address the increasing cost, complexity, and stringent compliance requirements associated with securing communications and infrastructure in information intensive businesses such as banking, healthcare, and government.
Solving today’s regulatory and security challenges has and continues to become more and more cost prohibitive. While smaller financial institutions face the same regulatory pressure and data security threats, they lack the resources larger banks have to secure their institution.
Cloud technology is now making it possible for smaller banks to address these issues cost effectively. This collaboration complements Perimeter’s capabilities with advanced technologies such as IBM SmartCloud, storage, and security capabilities, as well as expanding the MSP’s global presence in growth markets such as Africa.
The new offerings, which range from developing skills to gaining access to IBM’s R&D and Innovation Centers, are another proof point of IBM’s focus on providing the right capabilities and expertise to help MSPs fulfill the evolving needs of today’s clients and, in turn, help MSPs grow their own business.
Today’s news builds on IBM’s recently announced sponsorship of the new OpenStack Foundation, an independent entity, to promote the project and open source cloud computing. OpenStack will enhance IBM’s SmartCloud Foundation offerings, drive deeper industry collaboration and accelerate momentum for critical industry standards while also making it easier for MSPs to consume IBM’s offerings through the Cloud.
You can learn more about IBM cloud computing initiatives here, and follow Managed Service Provider communications from IBM on Twitter using the hashtag #ibmmsp.
IBM Board Elects Virginia Rometty As Chairman
The IBM board of directors today elected Virginia M. Rometty chairman of the board, effective October 1, 2012.
Today, the IBM board of directors appointed Virginia M. Rometty chairman of the board, effective October 1, 2012. Rometty currently serves as President and Chief Executive Officer of IBM. Ms. Rometty was appointed to these positions effective January 1, 2012. Ms. Rometty began her career with IBM in 1981 in Detroit, Michigan. Since then she has held a series of leadership positions in IBM, most recently as Senior Vice President and Group Executive, IBM Sales, Marketing and Strategy. Ms. Rometty is a leader in diversity initiatives including IBM’s Women in Technology Council and the Women’s Leadership Council, and is one of the senior sponsors of the Women’s Executive Council. She is a frequent speaker at industry and business conferences, and has been named to Fortune magazine’s “50 Most Powerful Women in Business” for seven consecutive years, including most recently in 2011. Ms. Rometty serves on the Council on Foreign Relations; the Board of Trustees of Northwestern University; and the Board of Overseers and Board of Managers of Memorial Sloan-Kettering Cancer Center. She holds a Bachelor of Science degree with high honors in computer science and electrical engineering from Northwestern University.
Mrs. Rometty succeeds Samuel J. Palmisano, who is stepping down from the board effective October 1, 2012.
Mr. Palmisano will become Senior Adviser to the company until he retires on December 1, 2012.
As of October 1, 2012, Mrs. Rometty’s title will be IBM chairman, president and chief executive officer. Mrs. Rometty, 55, is currently IBM’s president and chief executive officer.
She succeeded Mr. Palmisano as IBM’s ninth CEO in January of this year, after holding senior leadership positions in IBM’s services, sales, strategy and marketing units.
Mrs. Rometty led the successful integration of PricewaterhouseCoopers Consulting — the largest acquisition in professional services history, building a team of more than 100,000 business consultants and services experts.
She became a director of IBM in January.
Mr. Palmisano, 61, became IBM chief executive officer in 2002 and chairman of the board in 2003.
During his tenure, IBM transformed its product and services portfolio, exiting commoditizing businesses, including PCs, printers and hard disk drives, and greatly increasing investments in analytics, cloud computing and other high-value businesses and technologies.
He has overseen the transformation of IBM from a multinational into a globally integrated enterprise. During Mr. Palmisano’s tenure as CEO, IBM created over $100 billion of total shareholder value.
Chatting To Connect
I’ve been watching this whole Apple “Mapgate” discussion from the sidelines with some bemusement.
If you’d have told me a few weeks ago the emerging chatter about the iPhone 5 would come down to a map app’s dysfunction, I would have laughed, but such is the state of our technology polity.
On the one hand, the debate may seem filled with frivolity. On the other hand, it speaks to the seriousness with which users take their smartphones and their apps, particularly when it involves one that could be the very thing that comes between they and their next cup of java at Starbucks…assuming they can still find one!
Whether or not Apple will relent and offer a Google Maps app in the Apple App Store, says a story by Reuters and citing Google chairman Eric Schmidt, will be a decision made by Apple.
Me, I’m still trudging along just fine with my LG “dumb phone,” although I am keeping an open eye towards the looming iPad Mini.
I love my original iPad, but I think it needs one of those “Clean My PC” solutions reoriented for original iPads. It’s become more and more lethargic in terms of performance, and sometimes, when I’m in an application the thing will just reset and take me back to the home screen. Not quite the equivalent of a Microsoft Windows “General Protection Fault” or blue screen of death, but coming close.
Speaking of finding my way, I wanted to remind folks that the IBM InterConnect event is only a short couple of weeks away in Singapore, October 9-11 at the Royal Sentosa Resort.
My airplane tickets have been bought, my hotel booked — now if I could just figure out a way to place myself in a state of somnolence as I board the plane for the longggg journey eastward.
If you’d like to learn more about the InterConnect event, IBM is hosting a Twitter Chat this Thursday, September 27, from 9-10 EST.
If you’ve never attended a Twitter Chat, now’s your chance. Our own social business guru, Sandy Carter, will be moderating the chat, fielding questions and relating details of the coming InterConnect event.
The hashtag for the chat is #IBMInterConnect, so simply log in to your TweetDeck or other Twitter app of choice, enter that hashtag, and be prepared for the discussion this Thursday evening.
If you don’t have a Twitter app, you can also log in to the following URL to follow the action:
http://tweetchat.com/room/ibminterconnect
A little background: IBM InterConnect 2012 is a new and unique event to provide you with opportunities to meet and collaborate with business and IT leaders in your region.
The IBM InterConnect conference will explore topics and key business imperatives, including unleashing innovations, managing the velocity of change and reinventing relationships and uncovering new markets.
IBM’s Scott Hebner and John Dunderdale provide some background on InterConnect in the video below:
Thinking Big @ Information On Demand 2012
Nate Silver, author of the blog “FiveThirtyEight,” will be one of the featured keynote speakers at this year’s IBM Information On Demand 2012 event in Las Vegas, Nevada, October 21-25. Silver correctly predicted the results of the primaries and the U.S. presidential winner in 2008 in 49 states through his statistical analysis of polling data, and at IOD will explain how to distinguish real signals from noisy data as well as how predictive analytics is used in politics.
That annual festouche and gathering of all things data is just around the corner.
Yes, that’s right, it’s almost time for IBM Information on Demand 2012.
So in order to start the drumbeat, I wanted to take a few moments and point you to some useful resources as you prepare to make your way to the Bay of Mandalay, and to optimize your time on the ground in Vegas.
First, the new (and official) IBM Information on Demand blog, which you can find here.
The blog includes easy access to some of the social media channels that will be covering the event (including Facebook, Twitter, LinkedIn and YouTube).
Of course, never forget the official IOD hashtag, #ibmiod, where you’ll be able to follow the endless stream of tidings leading up to, during, and after the event.
The blog also has links off to the IOD 2012 registration engine, as well as to the IOD SmartSite so you can start thinking about your IOD calendar now (I do NOT advise waiting until the last minute…talk about information overload!)
We’ve got some exciting guest speakers this year, including Nate Silver, statistics blogging extraordinaire who first found fame with his “FiveThirtyEight” blog, which is now part of The New York Times family of media properties.
Silver analyzes politics the way most of us should be analyzing our business: Through data…and lots of it.
His analysis of political polling data is unparalleled, and in the 2008 U.S. presidential election, Silver correctly predicted the results of the primaries and the presidential winner in 49 states.
His recent book, “The Signal and The Noise: Why Most Predictions Fail — But Some Don’t,” explores the world of prediction, “investigating how we can distinguish a true signal from a universe of noisy data.” Silver tackles some of the big questions about big data, so we’re very excited to have him join us in Vegas for IBM’s own big data marathon event.
At this year’s event, we’ll continue our trend of including tracks for specialized areas of interest, including forums for Information Management, Business Analytics, Business Leadership, and Enterprise Content Management.
And, of course, you’ll be able to find Scott Laningham and myself down in the EXPO center, where we’ll be talking to and interviewing many of the IBM and industry luminaries on the important data-related topics being discussed at the event.
Speaking of data, this will be my seventh IOD in a row, so I’m looking forward to seeing many of you once again.
Meanwhile, keep an eye here on the Turbo blog for future IOD-relevant posts.
PGA’s New Champion: Brandt Snedeker
Tennessean Brandt Snedeker holds both the 2012 PGA TOUR Championship trophy, along with the 2012 FedExCup, after he held off the world’s best golfers the past four days at the East Lake Golf Club in Atlanta, Georgia. Snedeker’s personal triumph comes just a week before he represents the U.S. in the Ryder Cup at Medinah in Chicago. Snedeker made 61 out of 62 putts inside 10 feet for the week, demonstrating once again he’s got one of the PGA Tour’s hottest putters.
Well, it was a wild and wooly weekend at the PGA TOUR Championship at East Lake in Atlanta, Georgia, and also the culmination of the 2012 U.S. PGA golf season with the awarding of the FedExCup.
In the end, it was Brandt Snedeker’s opportunity to seize the moment, and seize it he did.
Starting with Jim Furyk’s 17th hole meltdown on Saturday with a drive into the water left, the field slowly but surely began to peel away like an onion, leaving Snedeker on the victor’s podium with his amazingly consistent putting stroke and nearly as consistent driving accuracy. (By way of proof, Snedeker made 61 out of 62 putts from inside ten feet!)
The long hitters ended up being eaten away by East Lake, with players like Phil Mickelson, Bubba Watson, and even to some degree Tiger Woods, unable to match the needed pinpoint accuracy to stay on East Lake’s tight fairways and greens.
Snedeker also demonstrated an emotional maturity beyond his years, playing the last round like it was just another day on the links, and his double-bogey at six that included a watery tee shot?…well, that was just a minor setback (As he would later learn, both Tiger Woods and Rory McIlroy also found their way to agua on number six in the final round).
By the time he reached 17, Snedeker’s confidence seemed quite assured, and the chip-in from the off the green just solidified that confidence.
Even a missed tee shot into the back left grandstand on the final hole didn’t shake him up — he just laughed it off, chipped on to the green, and two putted for bogey to walk away with both the TOUR Championship and the FedExCup, and a payout of over $11 million.
Is Snedeker’s victory a prelude to the U.S.’ likely opportunity to reclaim the Ryder Cup from the Europeans next week in Medinah?
Not so fast. Rory McIlroy still continues to pace the golf world, and is backed by some other exemplary European players, including Justin Rose, who stayed close on Snedeker’s heels yesterday, and Sergio Garcia, a Ryder Cup veteran. Europe also has Ian Poulter and Graeme McDowell, both of whom seem to wallow in Ryder Cup pressure, while the American side has a number of Ryder Cup newbies (including Snedeker).
I’m not about to try and call this one in advance. I’ll just say it’s generally expected to be very close, and I’ll be watching every minute before my pro golf withdrawal and depression sets in.
As for the entirety of the 2012 PGA season, it’s likely to prove to be one that golf fans won’t soon forget.
IBM X-Force Mid-Year Report: Security Attacks Focused On Browsers, Mobile, Social
SPAM aside, IBM’s mid-year X-Force Trend and Risk Report shows a sharp increase in browser-related exploits, renewed concerns around social media password security, and continued challenges in mobile devices and corporate “bring your own device” (BYOD) programs.
Yesterday, IBM released the results of its X-Force 2012 Mid-Year Trend and Risk Report.
The mid-year report is troubling, revealing ongoing challenges and opportunities and the need for continued vigilance in the digital security realm.
The headlines: The latest report shows a sharp increase in browser-related exploits, renewed concerns around social media password security, and continued challenges in mobile devices and corporate “bring your own device” (BYOD) programs.
“Companies are faced with a constantly evolving threat landscape, with emerging technologies making it increasingly difficult to manage and secure confidential data,” said Kris Lovejoy, General Manager, IBM Security Services. “A security breach–whether from an outside attacker or an insider–can impact brand reputation, shareholder value, and expose confidential information. Our team of security threat analysts track and monitor security events and attack activity to better help our clients stay ahead of emerging threats.”
Mobile, Social: New Security Targets Of Opportunity
Since the last X-Force Trend and Risk Report, IBM’s X-Force has seen an increase in malware and malicious web activities:
- A continuing trend for attackers is to target individuals by directing them to a trusted URL or site which has been injected with malicious code. Through browser vulnerabilities, the attackers are able to install malware on the target system. The websites of many well-established and trustworthy organizations are still susceptible to these types of threats.
- The growth of SQL injection, a technique used by attackers to access a database through a website, is keeping pace with the increased usage of cross-site scripting and directory traversal commands.
- As the user base of the Mac operating system continues to grow worldwide, it is increasingly becoming a target of Advanced Persistent Threats (APTs) and exploits, rivaling those usually seen targeting the Windows platform.
Emerging Trends in Mobile Security
While there are reports of exotic mobile malware, most smartphone users are still most at risk of premium SMS (short message service, or texting) scams.
These scams work by sending SMS messages to premium phone numbers in a variety of different countries automatically from installed applications. There are multiple scam infection approaches for this:
- An application that looks legitimate in an app store but only has malicious intent
- An application that is a clone of a real application with a different name and some malicious code
- A real application that has been wrapped by malicious code and typically presented in an alternative app store
One game-changing transformation is the pervasiveness of Bring Your Own Device (BYOD) programs. Many companies are still in their infancy in adapting policies for allowing employees to connect their personal laptops or smartphones to the company network.
To make BYOD work within a company, a thorough and clear policy should be in place before the first employee-owned device is added to the company’s infrastructure.
Improvements in Internet Security Continue
As discussed in the 2011 IBM X-Force Trend and Risk Report, there continues to be progress in certain areas of Internet security. IBM X-Force data reports a continuing decline in exploit releases, improvements from the top ten vendors on patching vulnerabilities and a significant decrease in the area of portable document format (PDF) vulnerabilities.
IBM believes that this area of improvement is directly related to the new technology of sandboxing provided by the Adobe Reader X release.
Sandboxing technology works by isolating an application from the rest of the system, so that if compromised, the attacker code running within the application is limited to what it can do or what it can access.
Sandboxes are proving to be a successful investment from a security perspective. In the X-Force report, there was a significant drop in Adobe PDF vulnerability disclosures during the first half of 2012.
This development coincides nicely with the adoption of Adobe Reader X, the first version of Acrobat Reader released with sandboxing technology.
New IBM Security Operations Center Opens In Poland
To further protect its clients from emerging threats like those reported in the IBM X-Force Mid-Year Trend and Risk Report, IBM yesterday announced the opening of a security operations center in Wroclaw, Poland.
This newest IBM Security Operations Center is the 10th worldwide facility to help clients proactively manage these threats, including real-time analysis and early warning notification of security events.
Data for the bi-annual X-Force report comes from IBM’s security operations centers which monitor more than 15 billion security events a day on behalf of approximately 4,000 clients in more than 130 countries.
About the IBM X-Force Trend and Risk Report
The IBM X-Force Trend and Risk Report is an annual assessment of the security landscape, designed to help clients better understand the latest security risks, and stay ahead of these threats.
The report gathers facts from numerous intelligence sources, including its database of more than 68,000 computer security vulnerabilities, its global Web crawler and its international spam collectors, and the real-time monitoring of 15 billion events every day for approximately 4,000 clients in more than 130 countries.
These 15 billion events monitored each day, are a result of the work done in IBM’s 10 global security operations centers, which is provided as a managed security service to clients.
To view the full X-Force 2012 Mid-Year Trend and Risk Report go here.
The Tiger Roars Again
The first round of the TOUR Championship at East Lake was a doozy.
Tiger and Rory paired together…well, it’s something special to watch. Reminds me of those transcendent rounds with Arnold Palmer and Jack Nicklaus playing together.
Two of the best golfers in the world bringing out the best in one another, which mostly they did, and in the game of golf. Pure magic.
Tiger finished at four under, his putting improving but also hitting some gorgeous drives and approach shots.
Rory? Well, it’s his first time at East Lake, so now that he’s had a few runs around the course, watch out. He puts a few more closer to the pin and turns that putter on, and though he may not intimidate Tiger, he’ll certainly catch his attention.
Rory’s been the strong weekend finisher this year, and the real question about Tiger is can he take that momentum from Thursday into today and the weekend?
Phil Mickelson…well, I called it. Can he keep it on the fairway? Mostly not. His drives were all over the place. And STILL he was able to recuperate from hill and dale and still pull off a round of one under 69.
Just imagine what he could do hitting fairways once in a while!
Justin Rose was a surprise leader, but not that big a surprise. Scott Piercy, for me, was out of nowhere.
You’ve also got the likes of Steve Striker, Hunter Mahan, Adam Scott, Brant Snedeker and Zach Johnson also hovering there around two under, and there’s still a lot of golf to be played.
Today’s notable tee times: Rory McIlroy and Phil Mickelson, 12:45 EST. Tiger Woods and Justin Rose, 2:05 PM EST. Jim Furyk and Bubba Watson, 1:05 PM EST. And Ernie Els, Lee Westwood, 11:55 AM EST.
IBM Survey: Social Media Impacting Threats From Reputational Risk
More than 400 respondents in 23 industries across the globe agree: managing reputational risk is crucial to their business, and managing IT risk is a major part of their efforts. And, social media is cited as a major factor for those shifting more focus to their reputational risk management efforts. Learn what these respondents are doing — and what they’re overlooking — in the 2012 IBM Global Reputational Risk and IT study report.
So here’s a question for you? What is your organization doing to more effectively manage its risk profile?
IBM recently released its 2012 Global Reputational Risk and IT Study, and the findings suggest that companies are viewing their IT investments through a new lens.
First, some background, and then a summary of the findings.
This study is an investigation of how organizations around the world are managing their reputations in today’s digital era, where IT is an integral part of their operations and where IT failures can result in reputational damage.
The report was written by the Economist Intelligence Unit, which both executed an online survey and conducted client executive interviews.
That included 427 senior executive responses from around the world, 42 percent of those being C-level, with 33 percent of respondents coming from North America, 29 percent from Europe, and 26 percent from Asia-Pacific.
The survey included industries that ran the gamut, including banking, IT, energy and utilities, and insurance.
Impact of Social Media On Risk
Corporate reputations are especially difficult to manage in an era when anyone with a smartphone and Internet connection can file their complaint with a single touch.
With social media sites like Facebook and Twitter boasting over 1.4 million people combined, there is now a highly visible and immediate alterative to a company’s own communications regarding its reputation.
Because of that, more organizations have introduced reputational risk as a distinct category within their enterprise risk management frameworks.
The study suggests that companies have begun to pay closer attention to the links between IT failures and reputational damage, and also examines how executives are attempting to protect their brands from what could arguably be called “a preventable glitch.”
So, drum roll, please. Here’s a summary of some of the key findings:
- IT risk management and investment directly supports a company’s reputation. Reputational risk has evolved into an asset that is fundamentally supported by IT planning and investment. 78 percent say they included reputational risk in their own IT risk planning, and 75 percent say their budget will grow due to concerns for such. Eighteen percent indicate that spend will increase by more than 20 percent in the next 12 months.
- The CEO owns it but shares it. When asked to name the top 3 C-level execs who owned reputational risk, close to two-thirds say it was shared across the C-suite. 80 percent of CEOs indicated it was theirs to win, followed by 31 percent of CFOs, 27 percent of CIOs, 23 percent of CROs (Chief Risk Officers), and 22 percent of CMOs.
- Five characteristics of highly effective companies — they get reputational risk and invest in it. Of those who do, 83 percent indicated they have integrated IT into their reputational risk management regimes. They also perceive stronger links between IT threats and key elements of reputation (especially customer sat and brand reputation), and they also say they have strong or very strong IT risk management capacity (84 percent). Seventy-seven percent indicated they have well-resourced IT risk management functions, and are more likely to require vendors and supply chain partners to meet the same levels of control as they require internally.
Improving Reputational Risk Management: Best Practices
So what’s a concerned C-level exec to do? The study revealed several core strategies:
- Be proactive rather than reactive. That is, be prepared to invest in developing comprehensive reputational risk management strategies that include robust controls on IT risks, particularly those related to security, business continuity and tech support.
- Create an organization where IT managers collaborate with other risk management specialists. Together, they should be tasked with presenting a comprehensive profile of organization-wide reputational risks to senior management.
- Engage in scenario analysis, especially with new and emerging technology. Don’t wait for the worst to happen — there are plenty of case studies to be used as a basis for “what-if” planning.
- Assess risks across the entire supply chain. A failure by a downstream supplier can be just as devastating as an internal problem, and risk controls can be harmonized among key players.
A More Integrated, Holistic Approach
This more integrated, enterprise-wide approach to risk management — led by the C-suite on down — can help your organization increase the attention being paid to the direct reputational impact of IT risks, and help you mitigate those risks (including those stemming from the use of new technologies).
To learn more and to gain access to the full study, go here.
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