Search

Discusses the need for information security managers to examine the economics of security to protect their companies. Indirect costs and negative impact of lack of security on companies' reputations; Use of return on investment and net present value to economically justify information-security investments; Advantages of using net present value; Problem of externalities; Information sharing issues. INSET: CYBERCRIMES' TRUE PRICE: Crime may not pay, but someone has to....

This article presents the author's opinion on the state of information technology (IT) initiatives in the health-care sector. The health-care industry historically has struggled to keep pace with IT innovation and productivity gains. What kick-started the change was the Health Insurance Portability and Accountability Act. Health-care executives saw that IT could standardize processes, improve efficiencies, and cut costs if implemented properly. It would have been better if the industry had realized this without the regulations, but this was a start. Any investment one make can potentially impact rates, so one have to show a clear return on investment (ROI), even as a nonprofit. But cost-savings and ROI cannot be the only drivers. If one do not invest and innovate, one become stagnant in the marketplace. This invites competition, and unless one have some type of competitive differential such as technology, one lose traction and start a downward spiral. We are looking at new advancements all the time to add value to our constituents. These include member online self-services, interactive voice-response systems, online provider-transactional services, and new programs, such as wellness initiatives.