FACULTY OF TECHNOLOGY MANAGEMENT AND TECHOPRENEURSHIP
BACHELOR OF TECHNOLOGY MANAGEMENT (INNOVATION)
2BTMI
SEMESTER II SESSION 2014/2015
BTMP 2083: INFORMATION SYSTEM MANAGEMENT
TITLE OF GROUP ASSIGNMENT: CASE STUDY
PREPARED FOR: DR. YURSRI ARSHAD
PREPARED BY: GROUP 4 FANTASTIC 7
NO.
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NAME
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MATRIC NO.
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1.
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YOW INN ANN
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B061310144
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2.
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NG HENG LOONG
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B061310258
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3.
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TAN HUI HUI
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B061310008
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4.
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CAROLYN LAI PEH NEE
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B061310111
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5.
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CHAN JI YAN
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B061310126
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6.
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LAW PUAY FONG
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B061310151
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7.
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TAM YEE KEN
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B061310057
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TABLE OF CONTENT
NO.
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CONTENT
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PAGES
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1
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CHAPTER 2:
GLOBAL E-BUSINESS AND COLLABORATION
CASE
STUDY 1
Interactive Session: Organization
Ski Resorts
Goes High-Tech for Touch
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3-10
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2
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CHAPTER 5:
INFORMATION TECHNOLOGY
INFRASTRUCTURE
CASE STUDY 2
Interaction Session: People
The Pleasure and Pitfalls of BYOD
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11-17
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3
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CHAPTER 8:
SECURING INFORMATION
SYSTEMS
CASE STUDY 3
Business Problem-Solving Case
The Looming Threat of Cyberwarfare
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CASE STUDY 1: CHAPTER 2
Interactive Session: Organizations
Vail Ski Resorts Goes High Tech for High Touch
Vail Ski Resort is the largest single
mountain ski resort in the United States, with 5.289 acres of the most diverse
and expansive skiing in the world. To match its world-class skiing, Vail is
also trying to offer the world-class customer care --- fine dining; spas and
ski valets ready to haul, stow, and retrieve your equipment; heated boots; and
hand-warming packets. Vail’s season pass is a top value industry-wide, and its
free PEAKS Rewards membership program further inculcates customer loyalty.
Members an purchase the most economical lift tickets online , link the PEAKS
card to a credit card, and accumulate points that can be redeemed for free lift
tickets, ski school lessons, and various discounts.
In 2012, Vail Ski Resorts installed
the fastest, highest capacity gondola in the United States. Seating ten people
per cabin, and with an uphill speed of 1,200 feet per minute, the
state-of-the-art gondola carries 3,600 skiers per hour while decreasing ride
time from 9 to 7.5 minutes. Heated seats and Wi-Fi access make it one of the
world’s most customer-friendly ski lift as well.
Long lift lines have always created
a big headache for skiers. In the past, the only way to gauge the flow of the
crowd was to ask lift operators or check postings on bulletin boards at the
bottom of the lifts. Now Vail skiers are able to obtain accurate up-to-the
minute lift line information by using social networking, streaming alerts, and
the resort’s own Twitter account. Slope congestion can be alleviated by
offering special pins or prizes to coax guests to move to a different slope.
Guests can be directed to on-mountain dining locations at lunch time.
Vail now uses radio frequency
identification (RFID) lift tickets and ski passes. Part of the EpicMix social
media program, the tickets and passes are scanned at the base of each lift so
that skiers and snowboarders can track how many lifts they ride and the
vertical feet ascended each day. The scanned data are automatically transferred
to an EpicMix application which can be accessed from either a smartphone or a computer.
The basic program is a free and confers various pins and virtual awards based
on user statistics. For example, you earn the “Connoisseur” pin after 75 lifts
and the “Over the Moon” pin when you surpass 350,000 vertical feet skied. After
you create your EpicMix account, you can view and share stats by linking to
your Facebook and Twitter accounts.
The EpicMix Racing program provides
additional fun. At one of six race courses, you can compete against friends and
family, all skiers, and even 2010 Olympic women’s downhill gold medalist
Lindsey Vonn. At the beginning of each season, the four-time for race courses
at Vail, Beaver Creek, Breckenridge, Keystone, Heavenly and Northstar. Race pros then ski the courses to establish
their “seconds behind Lindsey.” To factor in changing course conditions, every
day one of the race pros skis each course and uses his or her “seconds behind
Lindsey” to determine a course time for Vonn on that particular day. When you
ski a course, your actual time is automatically recorded and then adjusted for
gender, age, and discipline. Snowboarders, telemark skiers, and adaptive skiers
with disabilities and special needs can also participate. Scores are computed
based on each skier;s “seconds behind Lindsey,” and gold, silver, and bronze
medals are awarded to the top three daily. Race results and leaderboards are
accessed on EpicMix.com or the EpicMix mobile app, available for Apple and
Android smartphones. Your dashboard tallies your Lindsey Vonn Race Series
points, EpicMix Racing medals, total number of resort check-ins, total days on
a mountain, vertical feet, pins earned, and number of EpicMix photo taken.
The six race
course mountains are staffed by 140 professional photographers. Photos are
automatically identified and uploaded by scanning the intelligent chip embedded
in the skier’s lift ticket. Photos can be captioned and shared for free on
Facebook and Twitter, or you can purchase prints at a number of locations,
including, of course, the Children’s Ski Schools. You can also purchase a $30
season package for unlimited downloads of all images taken at all locations and
print them out later. All of these amenities turn a ski vacation into an
“experience” that can be shared with family and friends, increasing emotional
attachment and promoting customer retention.
Still, to ensure
that it is fully leveraging the wealth of customer data it collects, Vail Ski
Resorts’ parent company Vail Resorts implemented SAS Customer Intelligence
software. Customer data were previously collected and stored in a number of
unrelated systems. Now, the data are compiled in a single database that
includes all customer points of contact, allowing a complete picture of
customer habits and preferences to emerge. Rather than one or two versions of a
marketing campaign, Vail Resorts now runs 30 to 50, targeted to specific
groups. In the future, the company expects to expand to hundreds or even
thousands of personalized, individual communications. SAS predictive analytics
will help Vail Resorts to identify guest motivations and anticipate customer
desires, while customer segmentation models identify profitable segments to
which they might be steered. Vail Resorts plans to further personalize its
engagement with its guests and enrich their mountain experiences before they
have even begun.
Sources:
“EpicMix,” snow.com (http://www.snow.com/epic-pass/pass-benefits/epicmix.aspx), accessed May 30, 2013: Bill Pennington, “Getting
Comfortable With the New Vail,” New York Times. March 1, 2013; “EpicMix FAQ,”
epicmix.com (http://www.epicmix.com/faq.aspx), accessed May 30, 2013; Spencer Reiss, “Vail
Resorts Creates Epic Experiences with Customer
Intelligence,” SAS Case Study, March 20, 2013; Lauren Glendenning. “Vail’s New
Gondola Lifts Off,” Vail Daily, November 16, 2012; and Nicole Perlroth, “Nine
Ski Apps to Make the Most of the Mountain,” New York Times, December 26, 2012.
CASE
STUDY QUESTIONS
1.
List
and describe the types of systems described in this case study.
i.
Executive
Support Systems (ESS):
a) Provide
generalized computing capacity that can be applied to changing array of
problems.
b) Typically
use portal with Web interface, or digital dashboard, to present content.
c) In
this case study, this systems help manager to create the marketing campaigns
that will make a largest return of customers.
d) Others
than this, ESS systems also help the Vail Ski Resort to determine which lifts
should be elevation and upgrading and which is the one that always used by
customers.
e) With
this advantage, the resort can increase their lift speed so that more customers
can enjoy more in the resort.
f) To
upgrade the lifts also provides other advantage to the resort. For example, the
organization will be more systematic and their administrative will be improved.
Lastly, investment.
g) The
systems help the manager analyse that where to invest can get the major return.
ii.
Transaction
Processing Systems (TPS):
a) It
is an informational scheme for the collection, storage, retrieval and
modification of transactions made by an organization.
b) Vail Ski Resort used this systems to collect
the basic data of the customers. For example, the customers experience on
skiing and also their visited times to Vail Ski Resorts. Besides that, the
number of skiers that using each lift, the number of the rental ski equipment,
the number of customers who bought meals and meals sold in the food outlet and
the race time of each skiers in the EpicMix Racing program.
iii.
Management
Information Systems (MIS):
a) This
systems help to provide middle managers with reports on firm’s performance, to
help the monitor firm and predict future performance.
b) It
is typically not very flexible systems with little analytic capability. In Vail
Ski Resorts, MIS help to offer skiers the rewards for switching to a different
lift. This is because the resort hope that this way will help to reduce the
people all queue in the same lift.
c) They
hope that the lines of each lift can keep shorter so that these will reduce the
waiting time for customers.
d) The
others advantage that MIS brought to Vail Ski Resort is to help them determine
which the place that most popular and most skiers like to visit.
e) They
will maintain the environment and services that provided. Other than that, they
also trying to improve those places that not always visited by the skiers.
iv.
Decision
Support Systems (DSS):
a) A
decision support system (DSS) is a computer-based application that collects,
organizes and analyses business data to facilitate quality business
decision-making for management, operations and planning.
b) DSS
help Vail Ski Resorts to adjust the maintenance schedules of the ski lifts. By
using this system, the manager can understand which ski lifts are used the most
frequently by customers.
c) The
reward and promotions of the resorts always attract the most customers. The
customers that should receive for special promotions also can be analyse by using
DSS.
d)
This help a lot in the decision making
of the manager. Some customers are also targeted for the return visits by using
DSS.
2.
How
do these systems improve the operation of the business?
The managers of Vail Ski Resort who in charge to collect
the database to make a better and right decision based on the accurate data to
be collected in the information system. By this way, the Vail Ski Resort can
enhance the quality and standard of the Vail Ski Resort to attract the customer
to choose the Vail Ski Resort and increase the growth of the business.
These systems can help the Vail Ski Resort to
determine which type of customer is the target customer in their marketing
campaigns. This is because the resort can ensure to focus on the target customer
who spend more money to give them more major return and stimulate the growth of
the business in Vail Ski Resort by using the information systems.
Vail Ski Resort can provide more
standard and quality of service to convenient the customer when they are in the
Vail Ski Resort. Based on this attractiveness point, , Vail Ski Resort will focus
on satisfaction of customer demands to attract customer to choose
this resort compared with other competitors because the resort will consider
the customer needs and demands first and take the action to satisfy them.
3.
How
do these systems support decision-making? Identify three different decisions
that can be supported by these systems.
4.
Why
is improving the guest experience so important at Vail Mountain Resort?
It is important to create guest experience
so important at Vail Mountain Resorts because it will help to increase the
image of the resorts. In providing those high quality services and improve the
systems in the resorts, the customers gained the best experience when they
enjoy their holidays in the resorts. Taking relax and enjoyable experience will
always let them share their good experience to their friends and family. The
power of word of mouth can be shown in this. The image of the resorts will be
increased through their customers’ experience.
Second, the increase of competitive
advantage. Due to the facilities that provided by Vail Mountain Resorts improve
their system for their organizations and customers, this will increase their
position in the market. All those system that provide by Vail Ski Resorts are
still haven been used in other ski resorts. For example they uses radio
frequency identification (RFID) lift tickets and ski passes. Part of the
EpicMix social media program, the tickets and passes are scanned at the base of
each lift.
Next, improve the customers’
retention. For example, long lift lines always created a big problem for
skiers. They spent lots of time to wait for their turn. To solve this problem,
Vail Ski Resorts create a systems that able to obtain accurate up-to-the minute lift line
information by using social networking, streaming alerts, and the resort’s own
Twitter account. With this improvement, skiers will decrease their time on
waiting for the life ride. They will feel that they spent more time on skiing and
not waiting for the lift. This will let them feel want to visit again to Vail
Ski Resort.
Lastly,
increase the profit and revenue. With the best services provided and more
customers retention will help Vail Ski Resort gain more profit and revenue. The
more customers satisfied to their services and facilities, the more the profit
will be gained.
CASE STUDY 2: CHAPTER 5
INTERACTIVE
SESSION: PEOPLE
The
Pleasures and Pitfalls of BYOD
Just about everyone who has a smartphone wants to be
able to bring it to work and use it on the job. And why not? Employees using
their own smartphones would allow companies to enjoy all of the same benefits
of a mobile workforce without spending their own money to purchase these
devices. Smaller companies are able to go mobile without making large investments
in devices and mobile services. According to Gartner Consultants, BYOD will be
embraced by 38 percent of companies by 2016 and half of all companies will
mandate BYOD by 2017. BYOD is becoming the “new normal.”
But…wait a minute. Nearly three out of five
enterprises believe that BYOD represents a growing problem for their
organizations, according to a survey of 162 enterprises conducted by Osterman
Research on behalf of Dell Inc. Although BYOD can improve employee job
satisfaction and productivity, it also can cause a number of problems if not
managed properly: Support for personally owned devices is more difficult than
it is for company-supplied devices, the cost of managing mobile devices, the
cost of managing mobile devices can increase, and protecting corporate data and
networks becomes more difficult. Research conducted by the Aberden Group found
that on average, an enterprise with 1,000 mobile devices spends on extra
$170,000 per year when it allows BYOD. So it’s not that simple.
IBM’s CIO Jeanette Horan believes that BYOD may
cause as many problems as it solves. BYOD is not saving IBM any money and is
actually creating new challenges for the IT department because employees’
devices are full of software that IBM doesn’t control. IBM provides secure
BlackBerrys for about 40,000 of its 400,000 workers while allowing 80.000 more
employees to use their own smartphones or tablets to access IBM networks.
The IBM IT department found it had no grasp of which
apps and services employees were using on their personal devices, and employees
themselves were “blissfully unaware” of the security risks posed by popular
apps. IBM decided to ban the use of such popular services as the Dropbox
cloud-based cyberlocker, fearing that employees would put IBM-sensitive information
in their personal Dropbox accounts, forward internal e-mail to public Web mail
services, or use their smartphones as mobile Wi-Fi hotspots.
IBM will not allow an employee to access its
corporate networks with his or her personal device unless it secures the
device. The IT department configures the device so that its memory can be
erased remotely if it is lost or stolen. The IT group also disables public
file-transfer programs like Apple’s iCloud; instead, employees use an
IBM-hosted version called MyMobileHub. IBM even turns off Siri, the
voice-activated personal assistant, on employees’ iPhones because the spoken
queries are uploaded to Apple serves.
Each employee’s device is treated differently,
depending on the model and the job responsibilities of the person using it.
Some people are only allowed to receive IBM e-mail, calendars, and contacts on
their portable devices, while others can access internal IBM applications and
files (see Chapter8). IBM equips the mobile devices of the latter category of
employees with additional software, such as programs that encrypt information
as it travels to and from corporate networks.
One company that has successfully implemented BYOD
is Intel Corporation, the giant semiconductor company. About 70 percent of the
39,000 devices registered on its network are personal devices. Intel approached
BYOD in a positive manner, trying to find ways to make it work rather than to
defeat it. Diane Bryant, then Intel’s CIO, didn’t want to be dependent on a
single mobile vendor or device.
Intel hammered out a BYOD strategy and created an
end-user service-level agreement that clarified that end users were voluntarily
using BYOD rather than being mandated by Intel. The company developed different
policies, rules, and access limits for each type of device-smartphones, tablet,
or laptop-with multiple levels of controls in place. Intel maintains a list of
approved devices. If a device does not meet its requirements, it is blocked
from the network. Intel’s BYOD program today offers 40 proprietary
applications, including travel tools to help schedule a flight and conference
room finders. The company has an internal “app store” and uses a variety of
software and security tools, including mobile device management (MDM) software
and mobile app management (MAM) software.
Intel’s goal for BYOD is not to save money but to
make employees happier and more productive. Employees like being able to use
their own device and apps alongside specialized Intel apps. On average, Intel
workers report that bringing their own devices saves them about 57 minutes per
day, which amounts to 5 million hours annually company-wide.
Canadian Tire decided not to allow BYOD at all and
issued new BlackBerry Q10 and Z10 smartphones to its 3000 corporate employees.
(Canadian Tires is one of Canada’s largest companies, with an online e-commerce
store and 1200 retail outlets selling automotive, sports, leisure, home
products, and apparel; petroleum outlets; and financial services.) The company
felt that for its purposes, the bring-your-own-device model was not
sufficiently secure. Canadian Tire’s chief technology officer (CTO) Eugene
Roman worries that an e-mail could send a virus into the company’s core
infrastructure. At present, Canadian Tire’s management thinks BYOD is interesting
but is not yet ready for the company’s mainstream business applications.
In order to successfully deploy mobile devices,
companies need to carefully examine their business processes and determine
whether or not mobility makes sense for them. Not every firm will benefit from
mobility to the same degree. Without a clear idea of exactly how mobile devices
fit into the long-term plans for the firm, companies will end up wasting their
money on unnecessary devices and programs. One of the biggest worries that
managers have about mobility is the difficulty of measuring return on
investment. Many workers swear by their mobile devices, and the benefits are
too significant to ignore, but quantifying how much money is earned or saved by
going mobile can be difficult.
CASE
STUDY QUESTIONS
1.
What are the advantages and disadvantages of the following employees to use
their personal smartphones for work?
- Advantages
a) All
companies will receive benefits of a mobile workforce, even though they not
spend their money for it
b) Avoid
companies from wasting money for unnecessary devices and mobile initiatives.
c) Every
employees will be feel comfortable because they using their own device.
d) Employees
will feel easier because they don’t have burden to carry and manage multiple
devices.
- Disadvantages
a) The
data of a company which is private and confidential will be leak out to public.
This is legal and liability risk for that company.
b) Companies
lose their consistency and efficiency when they have their own hardware, and
control their data and scale their own It infrastructure.
c) Employees
have to spend their own pocket money for buy the devices needed by their
company
d) In
a company every employees using different kind of devices. So the operating
systems available, providing adequate technical support for every employees
will be difficult.
2.
What people, organization and technology factors should be addressed when
deciding whether to allow employees to use their personal smartphones for work?
- People
a) Many
companies are integrating these “mobility experts” into core IT functions and
software development. Mobility experts can help a company leverage mobility
more effectively.
b) Identify
or analyse that employees have ability to own their devices.
c) Make
sure that employees agree to safe the company’s confidential information
- Organization
a) Limit
business smartphone use to a single platform.
b) This
made it easier to keep track to each mobile device and to roll out software upgrades
or fixes, because all employees were using the same devices, or at the very
least, the same operating system. For example, BlackBerry mobile devices access
corporate e-mail and data using a proprietary software and networking platform
that is company–controlled and protected from outsiders.
c) More
than one type of mobile device and operating system
d) Firm
need an efficient inventory management system that keeps track of which devices
employees are using, where the device is located, whether it is being used, and
what software it is equipped with.
- Technology
a) A
number of software products such as Sybase Afaria, Trellia, Microsoft System
Center Device Manager and Odyssey Software Athena have emerged to help
companies manage diverse mobile platforms.
b) Virtualization
is an approach to mobile device management. Companies can install software such
as Citrix Systems XenDesktop that runs Windows desktops and individual
applications on any device, regardless of operating system.
3.
Compare the BYOD experiences of IBM and Intel. Why did BYOD at Intel work so
well?
- Comparison between
BYOD experiences of IBM and Intel
a) According
to the IBM policy, employees who want to use their own devices first must
become “certified,” which they do by passing a mobile security awareness
training course. Only then are they eligible to use their own devices.
b) Likewise,
Intel hammered out a BYOD strategy and created an end-user service-level
agreement that clarified that end users were voluntarily using BYOD rather than
being mandated by Intel.
- BYOD at Intel
works so well because
a) Intel
approached BYOD in a positive manner, trying to find ways to make it work
rather than to defeat it.
b) The
company developed different policies, rules, and access limits for each type of
device.
c) Intel’s
BYOD program 40 proprietary application, including travels travels tools to
help schedule a flight and conference room finders.
d) Intel’s goal for BYOD is not to save money but
to make employees happier and more productive. Employees like being able to use
their own device and apps alongside specialized Intel apps.
4.
Allowing employees to use their own smartphones for work will save the company
money. Do you agree? Why or why not?
Yes, I agree.
a) The
company does not have to prepare administer devices like laptop, Pc and mobile
phones.
b) Avoid
significant hardware, software IP supports costs.
c) Save
cost of paper and printer ink.
d) Employees
to do their business or communicate with customer in a convenience way.
e) Employees
will feel more happier if they using their own devices. Because of the heavy
responsibility towards company asset like laptop is no more. They will use
their devices freely and without any feeling of afraid to top management. It
will help to increase company productivity.
f) Companies
does not have to pay for computers that break or go out of date every several
years.
g) Company
does not have to pay for maintenance and insurance plans or antivirus software
or deal with drive
CASE STUDY 3: CHAPTER 3
THE LOOMING THREAT OF CYBER
“Now our enemies
are also seeking the ability to sabotage our power grid, our financial
institutions, and our air traffic control systems. We cannot look back years
from now and wonder why we did nothing in the face of real threats to our
security and our economy”
With these words in his 2013 State if the union
address, Barrack Obama officially became the first US cyberwar fare president.
Obama was about to sign the improving Critical Infrastructure Cybersecurity
executive order, which allows companies associated with the supervision of the
electrical grids, dams and financial institutions to voluntarily join a program
to receive classified and other cyber security threat information previously
available only to government contractors. The main drawback is that only legislation
can enforce minimum security requirements for private sector companies, which
operate most U.S Critical infrastructure. Unfortunately, Congress in 2012 had
failed to pass two cyber security bills that were much stronger, bowing to
pressures from business worried about stepped-up security costs and concerns
raised by privacy advocates.
Cyberwarfare is more complex than conventional
warfare. Although many potential targets are military a country’s power grids,
financial systems, and a communication network can also be crippled. Non-state
actors such as terrorist ore criminal groups can mount attacks, and it is often
difficult to tell who is responsible. Nations must constantly to be on the
alert for new malware and other technologies that could be used against them,
and some of these technologies develop by skilled hacker groups are openly for
sale to interested governments.
The scale and speed of cyber-attacks has
escalated in the United States and other parts if the world. From September
2012 through March 2013, at least twelve U.S financial institutions-Bank of
America, Citigroup, Wells Fargo, U.S. Bancorp, PNC, Capital One, Fifth Third
Bank, BB&T, HSBC, J.P. Morgan Chase, and American Express-were targeted in
attacks that slowed their server to crawl and then shut down. The severity of
the attacks dwarfed previous distributed denial of service (DDoS) attacks. The
data centers of these organization and had been infected with a long available
malware agent name Itsoknoproblembro, which creates botnets of salve servers,
dubbed bRobbots because they are so difficult to trace back to a command and
control (C&C) servers. The bRobbots inundated the bank Web sites with
encrypted data. A flood of encryption requests immensely intensities attack
effectiveness, enabling the attackers to take down a site with fewer requests.
The goal of the
attacker was to inflict an unprecedented level of strain on as many financial
institutions as possible. No account information was stolen and no financial
gain sought, leading experts to think it was a state-sponsored attack. The
hacker group Izzad-Din Al-Qassam Cyber Fighters claimed responsibility, stating
that it was retaliating for an for an anti-Islam video. U.S government
officials believe the perpetrator is actually Iran, retaliating for economic
sanctions imposed to halt its nuclear program and for what it believes were U.S
cyber-attacks.
In August 2012, the Shamoon virus infected 30,000
machines at Saudi Arabian oil company, Aramco. It destroys workstations by
overwriting the master boot record (MBR), which stores key information about a
hard disk drive to help a computer system start up. Shamoon also deleted data
on servers, and overwrote certain files with an image if a burning American
flag. U.S. officials attributed the attack to Iran.
Less than two weeks later, Qatari natural gas company,
Rasgas, was forced to shut down its website and e-email systems in an attack
initially also attributed to Shammon. An investigative team concluded it was
likely a copycat attack trying to look like the same perpetrator. U.S.
government officials blamed Iranian hacker. Israeli officials attributed both
attacks to Iran’s Cyber Corps, formed after Stuxnet.
Believe to have been developed by a secret
joint United Stated-Israel operation, The Stuxnet worm was discovered in June
2010. It was designed to disable the software that controls Seimen centrifuges
to enrich, uranium, and it reportedly delayed Iran’s ability to make nuclear
arms by as much as five years. Iran has also been the target if the malware.
The Duqu worm, discovered in September 2011, steals digital certificates used
authentication for help future viruses appear as secure software. In April
2012, other espionage malware closely related to Stuxnet and Duqu called Flame
was discovered when hard drives at the Iranian Oil Ministry and National
Iranian Oil Company were wiped clean. Four months later investigators found
that the deletion agent they had been looking for when they discovered Flame
was a separate malware agent they named Wiper. Investigator believes that
Wiper’s first objective is to eradicate the malware created by this group.
Cyber offensives come with a considerable downside.
Previously released malware is recoverable and can be adapted and reused by
both nation-state foes and unaffiliated cyber criminals. Stuxnet code has been
adapted for use in financial cybercrime. Another drawback is uncontrollability.
About 60 percent of known Stuxnet infections were in Iran, but 18 percent were
in Indonesia, 8 percent in India, and the remaining 15 percent scattered around
the world. In November 2012, Chevron admitted that its network had been
infected with Stuxnet shortly after spread beyond Iran.
To U.S. officials, the financial sector, Saudi
Aracmco, and Rasgas attacks signaled a shirt in Iranian policy from cyber
defense to cyber offense. After investing approximately $1 billion in its Cyber
Corps in 2012 (still just a third of United States expenditures), Iran may have
arrived as a first-tier cyber power.
China has been a first-tier cyber power fir
years. U.S targets of suspected Chinese cyber-attacks include federal
departments (Homeland security, State, Energy, Commerce); senior officials
(Hillary Clinton, Adm. Mike Mullen); nuclear-weapons labs (Los Alamos, Oak
Ridge); defense contractors (Northrup Grumman, Lockheed Martin); news
organization ( the wall street Journal, the New York Times, Blomberg),
technology firms (Google, Adobe, Yahoo), multinationals ( Coca-cola, Dow
Chemical) and just about every other node of American commerce, infrastructure
or authority. Hackers have obtained information strategies of major
corporations; designs of more than two dozen major U.S weapons systems,
including the advanced Patriot missile system, the Navy’s Aegis ballistic missile
defense systems, the F/A-18 fighter jet, the V-22 Osprey, the Black Hawk
helicopter and the F-35 Joint Strike Fighter; and the workings of America’s
power grid, possibly laying groundwork for acts of sabotage, Cyber-attacks from
China and other nations have persisted because U.S. has difficultly defending
its information systems, cyberspace is not yet subject to international norms,
and years of intrusions have provoked little American response.
Investigators believe that in September 2012, one of
the elite hacking groups from China’s People’s Liberation Army (P.L.A) attacked
Telvent, a company that monitors utility companies, water treatment plants, and
over half the oil and gas pipelines in North America. Six months later, Telvent
and government investigators still didn’t know if the motive was espionage or
sabotage. U.S intelligence experts believe that China’s U.S investment,
particularly new, substantial investments in oil and gas, deter China from
infrastructure attacks. China’s economy could not escape the negative
consequences from a significant shutdown of U.S transportation systems or
financial markets. Iran, with no U.S. investment, is a much greater threat.
Moreover, diplomatic channels are open with China.
Less than a
week after Obama’s State of the Union address, security firm Mandiant released
details oon a group it dubbed “APT1.” Mandiant traced APT1 to a building in
Shanghai that documents from China Telecom indicate was built at the same time
as the General Staff Department’s 3rd Department, 2nd Bureau- The
military hacking unit, P.L.A. Unit 61398. Outfitted with a high-tech fiber
optic infrastructure, this 12-story white office tower was said to be the
origin of a six year offensive that infiltrated 141 companies across 20
industries.
The Obama administration’s mounting concern with the
economic and national security risks posed by cyber-intrusions has repeatedly
been expressed to top Chines officials. In May 2013, the Pentagon’s annual
report to congress for the first time directly accused the Chinese Government
and P.L.A of attacking U.S. government and defense contractor networks. Direct
confrontation had been skirted because the United States wants China’s help in
dealing with the nuclear and military threat from North Korea and with sanctions
against Iran. Obama again raised the issue during his informal summit with
Chinese premier Xi Jinping in June 2013.
Two months earlier, however, North Korea, another
budding cyberwarfare adversary, was accused of launching its most damaging
attack to date. Despite obstacles limiting its ability to develop expertise,
including sanctions, which restrict its access to technology, and a limited
talent pool due to meager Internet penetration and tesrictive access policies,
North Korea is believed to have perpetrated attacks on both Korea is believed
to have perpetrated attacks on both South Korean and American commercial,
educational, governmental, military institution. In March 2013, 32,000
computers at 3 major South Korean banks and the two largest television
broadcasters were affected. Internet banking sites were temporarily blocked,
computer screens went blank, ATM machines failed, and commerce was disrupted.
The attackers used the Chinese-written Gondad
exploit kit to infect PCs with a Trojan that provide an entryway for an
attacker to take control of the machine, creating a bot or zombie computer.
Once the digital backdoor is created, the controller can deposit a malware
payload, in this case, a wiper agent named Dark Seoul, like Shamoon, Dark Seoul
overwrites the master boot record (MBR). There is no conclusive evidence
implicating North Korea, but tensions had been escalating between the two
countries. The Kim Jong-un administration had expressed fury in the days
leading up to the attacke over ongoing, routine joint Korea/ United states
military training exercises, exacerbated by South Korea ‘s participation in U.S
spearheaded United Nations sanctions against North Korea for its nuclear test
the month before. Seoul contents that
Pyongyang has committed 6 previous cyber-attacks since 2009. Security experts
at South Korea ‘s newly formed cyber security center believe it has been
assembling and training an cyberwarrior
team of thousands, and the United States agrees. For North Korea, the
threat of cyber retaliation is negligible. Internet access is only now
extending beyond a privileged few, business are just beginning to adopt online
banking, and worthwhile targets are virtually nonexistent.
The Obama administration has begun helping Asian and
Middle Eastern allies build up their computer network defenses against Iran and
North Korea, including supplying advanced hardware and software and training
programs. Fture joint war games would include simulated cyber-attacks. But
deterring cyber-attacks is a far more complex problem than conventional
warfare, and US officials concede that this effore is an experiment.
While increased diplomatic pressure and
the intertwined nature of the worlds’ two largest economies may yield a
practicable agreement between China and the United States, how to deal with the
so-called “irrational actors,” Iran and North Korea, is thornier. Since China
is North Korea‘s biggest trading partner and most important ally, hammering out
an agreement with China may be the first step towards managing North Korea.
While Iran is diplomatically isolated, China depends on it meet its energy
needs, China walks a tightrope between exploiting the sanctioned Iranian
economy and following the U.N. sanctions for which it voted. It just may be
that the road to agreements with both Pyongyang and Tehran runs through
Beijing. Meanwhile, the military command responsible for most U.S. cyber war
efforts, U.S. Cyber Command (CYBERCOM), is slated for a 500 percent manpower
increase between 2014 and 2016.
1. Is cyberwarfare a serious problem? Why or why
not?
• Cyberwarfare is a serious
problem because it poses a unique and daunting set of challenges for security
experts, not only in detecting and preventing intrusions but also in tracking
down perpetrators and bringing them to justice.
The most prominent threats so far include:
Ø Successful attacks on the
FAA airline system, including one in 2006 that partially shut down air traffic
data systems in Alaska
Ø Intruders successfully
penetrated the Pentagon’s $300 billion Joint Strike Fighter project and stole
several terabytes of data related to design and electronics systems.
Ø Cyberspies infiltrated the
U.S. electrical grid in April 2009 and left behind software programs whose
purpose is unclear.
Ø In Iraq, insurgents
intercepted Predator drone feeds using software downloaded from the Internet.
2. Assess the
people, organization, and technology factors responsible for this problem.
People
Ø For cybercriminals, the benefit
of cyberwarfare is that they can compete with traditional superpowers for a
fraction of the cost of other types of warfare.
Ø Because more and more
modern technological infrastructure will rely on the Internet to function,
cyberwarriors will have no shortage of targets at which to take aim.
Ø Users of targeted systems
are still too careless about security and don’t do enough to help protect
sensitive systems.
Organization:
Ø The U.S. has no clear policy
about how the country would respond to a catastrophic level of a cyberattack.
Ø Even though the U.S.
Congress is considering legislation to toughen cybersecurity standards, the
standards will likely be insufficient to defend against attacks.
Ø The organization of U.S.
cybersecurity is messy, with no clear leader among intelligence agencies.
Technology:
Ø While the U.S. is currently
at the forefront of cyberwarfare technologies, it’s unlikely to maintain
technological dominance because of the relatively low cost of the technologies
needed to mount these types of attacks.
Ø Secret surveillance
software can be installed on unprotected systems and can access files and
e-mail thus spreading itself to other systems.
Ø Tracing identities of
specific attackers through cyberspace is next to impossible, making deniability
of suspected intruders simple.
3. What
solutions are available for this problem? Do you think they will be effective?
Why or why not?
a) Congress is considering
legislation that would require all critical infrastructure companies to meet
newer, tougher cyber security standards.
Ø As cyberwarfare
technologies develop and become more advanced, the standards imposed by this
legislation will likely be insufficient to defend against attacks.
b) Secretary of Defense Gates ordered the creation of Cybercom,
the first headquarters designed to coordinate government cybersecurity efforts.
Ø It will coordinate the
operation and protection of military and Pentagon computer networks.
Ø It will coordinate efforts
to restrict access to government computers and protect systems that run the
stock exchanges, clear global banking transactions, and manage the air traffic
control system.
Ø ultimate goal will be to
prevent catastrophic cyberattacks against the U.S.
Ø Because spy agencies like
the CIA are prohibited by law from acting on American soil, some people are
proposing to entrust some of the cyberwarfare work to private defense
contractors.
Ø There is no effective way
for a domestic agency to conduct computer operations without entering
prohibited networks within the U.S. or even conduct investigations in countries
that are American allies.
Preventing terrorist or cyberwar attacks may require examining some
email messages from other countries or giving intelligence agencies more access
to networks or Internet service providers.