Case Scenario:

You recently joined a small start-up company that has developed a suite of cybersecurity products that integrate network sensors (hardware) with big data analytics (software) to provide advanced threat detection at an affordable price. As is often the case with small companies, you are expected to lend your hand to whatever task needs doing. Yesterday, you were helping to write the online product brochures and other marketing materials. Today, your tasks include adding the North American Industry Classification System (NAICS) code(s) for the “cybersecurity” industry to the company’s Website. As you delve into the matter, you quickly discover that there is no NAICS code for a “cybersecurity” industry (see http://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2012). After additional research, you learned that the NAICS codes for your company’s direct competitors (companies selling similar cybersecurity products) included the following:

·        Computer and Electronic Product Manufacturing (NAICS prefix “334”)

o  Computer Terminal and Other Computer Peripheral Equipment Manufacturing

o  Computer Storage Device Manufacturing

·        Information Industry (NAICS prefix “51”)

o  Custom Computer Programming Services

o  Software Publishers

·        Professional, Scientific, and Technical Services Industry (NAICS prefix “54”)

o  Computer Systems Design Services

o  Electronic Stores

·        Retail Trade (NAICS prefix “44”)

o  Electronic Stores

You also learned that the NAICS system was designed to be production or product oriented and that provisions exist for adding new or emerging industries to the NAICS classification system (see NAICS Update Process Fact Sheet, p. 4, section “The Four Principles of NAICS” https://www.census.gov/eos/‌www/naics/reference_files_tools/NAICS_Update_Process_Fact_Sheet.pdf )

Your team leader has asked you to write a short report detailing your findings and recommending which industry your company should declare as its primary industry (out of the four listed above). Your report should include a justification for your selection. Your team leader has also asked you to provide a well-reasoned explanation as to why “cybersecurity” is considered an industry by many reporters and market analysts but is not listed as a unique industry under NAICS.

NAICS codes are incorporated into many business directory listings, independent financial reports / market analyses, and credit reports. Many large organizations, especially government agencies, require that a company have both a Dun & Bradstreet Data Universal Numbering System (D-U-N-S) number and one or more NAICS codes assigned to the company prior to being listed as an approved supplier. 

Research:

1.      Read / Review the Week 5 readings. Pay close attention to those readings which provide evidence that “cybersecurity” is, in fact, an industry.

2.      Research additional information about industry classifications, why they were developed, and how they are used. Here are some suggested sources:

a.       http://www.naics.com/history-naics-code/

b.      https://www.naics.com/naicswp2014/wp-content/uploads/2014/10/How_to_Use_NAICS_SIC_Codes_for_Marketing_NAICSAssociation.pdf?

c.      http://www.bls.gov/bls/naics.htm

d.      https://www.census.gov/eos/www/naics/reference_files_tools/NAICS_Update_Process_Fact_Sheet.pdf (See page 4: “The Four Principles of NAICS” Principles #1 & #2)

3.      Find three or more additional sources which provide evidence that “cybersecurity” is or is not a distinct industry.

CSIA 350: Cybersecurity in Business & IndustryCase Study #3: Is there a cybersecurity industry?Case Scenario:You recently joined a small start-up company that has developed a suite of cybersecurityproducts that integrate network sensors (hardware) with big data analyTcs (soFware) to provideadvanced threat detecTon at an a±ordable price. As is oFen the case with small companies, you areexpected to lend your hand to whatever task needs doing. Yesterday, you were helping to write theonline product brochures and other markeTng materials. ²oday, your tasks include adding the NorthAmerican Industry Classi³caTon System (NAICS) code(s) for the “cybersecurity” industry to thecompany’s Website.As you delve into the ma´er, you quickly discover thatthere is no NAICS code for a“cybersecurity” industry(seeh´p://www.census.gov/cgi-bin/sssd/naics/naicsrch?chart=2012). AFeraddiTonal research, you learned that the NAICS codes for your company’s direct compeTtors (companiesselling similar cybersecurity products) included the following:Computer and Electronic Product Manufacturing (NAICS pre³x “334”)oComputer ²erminal and Other Computer Peripheral Equipment ManufacturingoComputer Storage Device ManufacturingInformaTon Industry (NAICS pre³x “51”)oCustom Computer Programming ServicesoSoFware PublishersProfessional, ScienT³c, and ²echnical Services Industry (NAICS pre³x “54”)oComputer Systems Design ServicesoElectronic StoresRetail ²rade (NAICS pre³x “44”)oElectronic StoresYou also learned that the NAICS system was designed to beproducton or producT orienTedand thatprovisions exist for addingnew or emerging indusTriesto the NAICS classi³caTon system (seeNAICSUpdaTe Process FacT SheeT,p. 4, secTon “²he µour Principles of NAICS”h´ps://www.census.gov/eos/ www/naics/reference_³les_tools/NAICS_Update_Process_µact_Sheet.pdf)Your team leader has asked you towrite a short report detailing your Fndings andrecommending which industry your company should declare as its primary industry (out of the fourlisted above).Your report should include a jusT³caTon for your selecTon. Your team leader has alsoasked you to provide a well-reasoned explanaTon as to why “cybersecurity” is considered an industry bymany reporters and market analysts but is not listed as a unique industry under NAICS.Copyright ©2015 by University of Maryland University College. All Rights Reserved

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