Heard the one about the company that went out of business because its computer was stolen? No, it`s not a joke. That`s the prospect that has faced many a small business where the founder`s life`s savings went into setting up the business. It`s not only the value of the computer - in fact, it`s the irreplaceable nature of the information stored on the computer that usually turns company management into crisis management.
A study by the Policing and Reducing Crime Unit of the British Home Office examined a series of case studies in which small businesses were targeted by computer thieves. One company, an 18-person advertising agency based in London, and totally reliant on IT, was hit by six computer burglaries in three months.
A stolen car would be driven right up to the premises, and the offenders smashed a window with bricks or a sledgehammer. On two out of the six occasions when this happened, a resident security guard chased offenders away empty-handed. But even when they were not disturbed, burglars were on the premises for less than two minutes.
Now let`s look at the cost of these incidents:
Stolen computer equipment: lb47 097
Damage to premises: lb8 000
Range of preventative measures, including lock-down devices for all computers, a smoke system and fitting windows with a bomb-proof laminate: lb20 645
Total cost: lb75 742
There are two main points for South African SMEs here:
* Had the business not been highly profitable, it could not have survived this spate of thefts.
* This happened in London, far away from the crime capitals of SA. How much more vulnerable are South African SMEs?
Ironically, after two of the thefts, the agency had to wait more than nine months for specialist replacement glass to arrive from SA. In the meantime, the windows had to be boarded up, which had a further detrimental effect on business.
Data disappearing act
As in SA, as in the UK. And as in North America. TJ McCue, co-founder of AdventureBase.com, had this sorry tale to tell in The Wall Street Journal:
Loss or damage to an IT infrastructure can destroy a business that has become too dependent on it.
Arthur Goldstuck, MD, World Wide Worx
It was broad daylight on one of Vancouver`s busiest streets. He had just stopped for a quick bite, and left his laptop on the back seat. When he came out, his car window was smashed, resembling for all the world a scene from the streets of Johannesburg. Of course, his laptop was gone. Insurance paid out for the hardware, but it was the stolen data that really hurt.
"My computer had lots of great data for criminals. For instance: my Quicken file with all my personal financial data, including bank-account numbers; files that show my credit card number, left over from purchases made on Web sites; an AdventureBase QuickBooks file with our corporate bank info. All of these, I realised, were where serious damage could be done."
He cancelled his credit cards, closed his bank and other financially sensitive accounts and initiated new ones. All passwords had to be changed. He closed and reopened his Internet account.
McCue was able to reconstruct the rest of his files. Many times, it`s impossible.
Sure, IT is a blessing to many small businesses, and many entrepreneurs could never have started out on their own had they not had computers to automate or speed up critical business functions. But in the same breath, loss or damage to that IT infrastructure can destroy a business that has become too dependent on it.
* Do you have a small business IT horror story to share? The SME Survey is now inviting participants to become part of a community of small business decision-makers who can share their stories with the world. All you have to do is fill in the questionnaire on the impact of IT on SMEs, and you will be able to submit your own story.
ITWeb readers are also welcome to submit tales of tremendous successes achieved as a result of investment in IT. The best stories will be published on the SME Survey Web site. Visit www.smesurvey.co.za to fill in the survey.
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