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Case Study #3: Is there a cybersecurity industry?

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”)

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oComputer Terminal and Other Computer Peripheral Equipment Manufacturing

oComputer Storage Device Manufacturing

Information Industry (NAICS prefix “51”)

oCustom Computer Programming Services

oSoftware Publishers

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

oComputer Systems Design Services

oElectronic Stores

Retail Trade (NAICS prefix “44”)

oElectronic 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. 2, 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:

https://business.nasdaq.com/marketinsite/2017/Cybersecurity-Industry-Report-Investment-Case.html

https://www.zionmarketresearch.com/market-analysis/cyber-security-market

https://www.alliedmarketresearch.com/cyber-security-market

https://www.marketsandmarkets.com/Market-Reports/cyber-security-market-505.html

https://www.econstor.eu/bitstream/10419/126224/1/Jentzsch_2015_Horizontal-Vertical-Analysis.pdf

http://blog.gust.com/what-is-the-difference-betwee…

Write:

Using standard terminology (see case study #1), write a two to three page summary of your research. At a minimum, your research summary must include the following:

1.Introduction which includes 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. Your introduction should include an explanation of the importance of standardized industry classification codes (who uses them and why).

2.Analysis and discussion of one or more industry codes which could be used by your cybersecurity company (based upon the product listed in this assignment). The discussion should include a comparison between your company’s business activities and the industry characteristics for the four classification families listed in this assignment (prefixes 334, 44, 51, & 54).

3.Recommendation for the best fit for a single NAICS code to be used by your company on its website and included in its business directory listings and financial reports. This recommendation must include your reasons as to why this code is the best fit.

4.A closing section in which you present a summary of the issues regarding the question of whether or not cybersecurity is a separate industry, your recommendation for selection of a NAICS code, and your rationale for your choice.

Submit For Grading & Discussion

Submit your case study in MS Word format (.docx or .doc file) using the Case Study #3 Assignment in your assignment folder. (Attach the file.)

Formatting Instructions

1.Use standard APA formatting for the MS Word document that you submit to your assignment folder. Formatting requirements and examples are found under Course Resources > APA Resources.

Additional Information

1.You are expected to write grammatically correct English in every assignment that you submit for grading. Do not turn in any work without (a) using spell check, (b) using grammar check, (c) verifying that your punctuation is correct and (d) reviewing your work for correct word usage and correctly structured sentences and paragraphs. These items are graded under Professionalism and constitute 20% of the assignment grade.

2.You are expected to credit your sources using in-text citations and reference list entries. Both your citations and your reference list entries must comply with APA 6th edition Style requirements. Failure to credit your sources will result in penalties as provided for under the university’s Academic Integrity policy.

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