Secom: Managing Information Security in a Risky World Harvard Case Solution & Analysis

Secom: Managing Information Security in a Risky World


Secom is a Japanese firm, which has subsidiaries that are engaged in providing security services to different companies around the world. Secom initiated its operations back in 1962. Its farsighted pioneer, Makoto Lida with the help of Juichi Toda established the very first security services in Japan by establishing the Japan Patrol Security Corporation. Lida is known to be a visionary leader, who started the stipulation of different security services in Japan. During the course of time, the company has looked to diversify its business portfolio into a wide range of services. These services include Medical Services, Security Services, Insurance Services, Fire Protection Services, Geographic Information Services (GIS), Information & Communication related services, Real Estate Services and other services as well.

Secom is a renowned brand in Japan and various parts of the world with a market share of more than 60%. The brand is known to be one of the most trusted and reliable security and safety service provider all over the world. Despite the fact that Secom is a low development business, its market position coupled with prevalent edges has managed it to achieve the privilege to create generous cash flows throughout the years. This together with a preservationist methodology to business has lead Secom to support and keep up a solid balance sheet with net money. Despite the fact that the Security Services business has been a solid performer through the years because of Secom's invasion into other, once in a while inconsequential business, the edges and ROIC have rather endured.

Summary of Issues:

In the current years, there is so much news related to leaks of personal information from different companies on the Internet. The most alarming thing is that it becomes ferocious and it is increasing rapidly. Criminal acts done by insiders of the company, invasions by outsiders and other careless actions severely affect the companies along with information holders as well. As a result of this, companies may go to bankruptcy or lose their business. For this specific reason, security issues are one of the most important concerns for the companies related to commerce. Companies need to maintain strong security system so as to ensure the security of both hardware and software for every online business. Jashopper is a small Internet company that is engaged in hosting e-commerce site known as Retailers from all over the world paid to place a virtual store on their site. Japanese customers visit Jashopper to purchase products that range from electronic appliances to jewelry and cosmetics.

Main issues that Jashopper need to analyze comprise whether they should outsource the information and security protection department or develop it as its main strength and competitiveness. Secom proposed three alternatives for Jashopper. The first one was least expensive that was based on using advanced housing service. The second alternative was to add an identification and access control system along with advanced housing service. Third alternative was to add a service to assess the vulnerability of cyber and physical security. Hence, the company needs to analyze the level of security in order to achieve the desired level of benefit along with cost.


For the outsourcing choice, the organization ought to utilize Secom or other data suppliers' products and services as opposed to developing it without anyone else present. Criticalness of the security issue can't be denied, however, it is so imperative for the client that they may be more guaranteed if the insurance is given by a few specialists. In addition, since the organization will not wish to excessively depend on other organization's prosperity; therefore, a moderate level of outsourcing will be favored or in any event, the organization ought to have numerous decisions to evade dangers. Further, the organization ought to have an inside group to handle and work with the outsourcing organization. The group ought to have enough resources, and its principle goal is to relate the business prerequisite to the product suppliers, and verify that the switching cost in feeling of customization is low, so the organization can switch to different suppliers and guarantee comparative level of value....................

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Consider the type of security that is appropriate for the Internet company to have on your website. Focused on the 20-man electronic e-commerce companies are trying to decide what parts of the product line of information security they need to purchase from the largest companies in the security service in Japan, Secom. Services include everything from the hosting server, best housing, firewall and intrusion detection, etc. Presents a wide range of products that can be used to ensure safe operation. "Hide
on F. Warren McFarlan, Robert D. Austin, Robert D. Austin Source: Harvard Business School 21 pages. Publication Date: July 31, 2007. Prod. #: 308015-PDF-ENG

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