Impact Of Digital Disruption On Deloitte’s Business And Recommendations

Overview of the Digital Disruption caused by a cyber attack on Deloitte

Write a report outlining the changes that have occurred in a business due to digital innovation using a work centred analysis approach.

 The paper mainly focuses on the changes that have occurred within the business of Deloitte due to digital innovation by utilizing the approach of work centered analysis. It is identified that the paper utilizes two work centered analysis framework by selecting the digital disruption case of Deloitte. This generally involves retrospective analysis and makes appropriate number of assumption within the framework. The first matrix focuses on the WCA of Deloitte before the assumption whereas the second matrix illustrates WCA after the disruption event. The report elaborates assessments of the effect of digital disruption event and helps in providing proper recommendations so that the event of digital disruption within the company “Deloitte” can be properly handled.

Deloitte utilizes accounting management system which helps in providing high-level of financial service to the organization in order to enhance the prospects of growth, for minimizing capital requirements, for getting high return on equity and for attracting as well as retaining profitable retail customers (Raiyn 2014). However, on 25^th September 2017, it is identified that the company was hit by a cyber attack that reportedly went unnoticed and as a result confidential data of the customers were lost. Due to this, every client associated with Deloitte were affected due to the event of digital disruption. Moreover, the firm does not confirm the names as well as numbers of the client who were affected as the number of clients who were affected are quite less in number.

 The digital disruptions that have occurred on 25^th September 2017 have affected clients as well as the company. It is identified that due to the cyber attack, the clients lost their confidential information as well as data (Pipyros et al. 2014). Moreover, it is found the company faces number of problems due to digital disruption that are elaborated below.

Loss of confidential data of the customers: Due to the cyber attack, the company losses data as well as confidential information about the clients. The data as well as information of the client generally includes personal details as well as financial details of the customers (Bretas et al. 2017). Due to the leakage of data, the customers face number of challenges as well as issues.

Loss of important accounting data of the company: Due to cyber attack, the company “Deloitte” faces number of substantial financial loss that generally arises from theft of corporate information as well as financial information (Lee et al. 2014). Due to the cyber breach the company faces number of challenges and in order to resolve those challenges, the company has to incur costs that are mainly associated with the implementation of new system.

Reputational damage:  Trust is considered as one of the essential element for creating proper customer relationship. Cyber attack generally helps in damaging the reputation of the business and assists in eroding the trust of the customers. Due to cyber attack, the company lost both customers as well as profits (Schmitt 2014). It is analyzed that the effects of reputational damage have created impacts on the suppliers as well as all the third parties who are generally associated with the business of the company.

Assessment of the Effects of Digital Disruption

Legal consequence of cyber breach: As per the data protection act, the company needs to manage as well as secure the personal data of the client that they generally hold. However due to the cyber attack, the company losses data of some of the clients as they have failed in putting appropriate measures to stop the occurrence of digital disruption event (Hink et al. 2014). Therefore the company needs to face regulatory sanctions as well as fines. Proper amount of fines are paid as per rues as well as regulation of the government.

Below the surface cost: It is identified that in addition to the financial loss of the incident there are number of intangible costs which generally blight the business. The outcome of the disruption is woefully underestimated for the organizations as the company does not have idea that a cyber-attack impacts the business of the company (Cox 2017). Additionally, the company mainly struggles for managing cash flow effectively and as result they face crippling.

Accounting management system is referred to as high level professionals service which helps to combine the financial and investment advices together including accounting tax services, retirement planning, legal estate planning etc. In the year of 2017, 25^th September, Monday Deloitte faced a major cyber-attack and due to this attack. The financial sector of the company affected negatively after this cyber-attack (Al-Mohannadi et al. 2016). The aim of the company after this attack is to develop a cloud based secured financial management system. It is expected that with the cloud based system, none of the unwanted attacker would be able to hijack information from the server without permission. In most of the cases it has been found that the clients work along with a single accounting manager that is capable to coordinate inputs from the financial experts (Davis 2014). Financial data are the most important information set for any organization those should be stored securely from the external assaults. The recommendations for the issue are as follows:

Encryption: Encryption technology is the most advanced technologies that help the Deloitte organization to keep their data secured from the external attacks. With the help of the encryption technology none of the external rather unwanted users would be able to access data from the email server (Simmons et al. 2014). Only the authorized users would be able to access the email server of the company.

Using string Password: Usage of strong password by the users is another important thing that should be considered by the management authority of the company (Johnson 2015). It is found, that if the employees working in the financial department use strong password, then that password could not be cracked easily by the cyber attackers.

Firewall: Network firewall and application firewall both of this firewall are necessary for the company to implement. It would help the company to keep its data transmission network or channel secured which further assists in resolving issues like cyber-attack within the company.

The accounting management market of Deloitte continues to evolve and embrace the newly developed technologies. In order to make proper growth of the accounting cloud technology acts as the primary enabler in the investment sector of the Deloitte. In order to develop the existing financial management system of the company it is expected that cloud based solution is a vital one (Kaur and Chana 2014). For the investment and accounting management of Deloitte, value positioning for cloud technologies are affecting the entire business.

Recommendations to prevent future cyber attacks

Different software is there that provides cloud based financial solution to the companies to resolve the security level issues of the companies. It is assumed that, both private and hybrid cloud platform are helpful for Deloitte, to manage its stored accounting. There are certain mandatory steps which help the company to transfer their managerial platform from the traditional one to the cloud based one (Wu et al. 2015). It has been analyzed that after the implementation of cloud based system the issues associated to financial attacks and cyber-attacks would be completely resolved.

It is expected that firewall, encryption and strong password are the three major features that would be added if Deloitte changes their manual accounting management system in to a cloud based one. Besides high security the cloud solution also provides huge storage to the consumers. Not only the financial data but also many other confidential data of the employees and clients are hijacked with the cyber-attack (Li et al.2016). Though, Deloitte claimed that very few numbers of consumers were negatively affected but in the upcoming future to resolve this fewer issues they are recommended to transfer their financial data management platform from the traditional one in to a cloud based one. It is expected that with the help of cloud based system no unwanted users would be able to access data from the server.

Conclusion

From the overall discussion it can be concluded that, with the help of cloud based financial management system, the issues of accounting management would be minimized rather resolved completely. In the year of 2017, Monday 25^th September, very few numbers of consumers faced, cyber-attack from the external attackers. In order to resolve the issues of financial management Deloitte should focus on the digital disruption. The case of Deloitte demonstrated that the email server of the company was hacked by external attackers which were required to be resolved by the advanced system developers. With the help of digital disruption, the issues of traditional system are expected to be resolved completely. At the initial stage the main problem was identified and from the problem statement certain are elaborated in this report. Based on the recommendations a cloud based accounting management system implementation plan is also developed in this report

References

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