Demystifying Ransomware: Understanding its Impact on Businesses

In today’s interconnected digital landscape, cyber threats continue to evolve and pose significant risks to businesses of all sizes. Ransomware, in particular, has emerged as one of the most notorious and destructive forms of cyberattacks. In this blog post, we will delve into the world of ransomware, exploring what it is, how it works, and the profound impact it can have on businesses.

What is Ransomware?

Ransomware is a malicious software designed to encrypt files on a victim’s computer or network, rendering them inaccessible until a ransom is paid. It infiltrates systems through various means, such as malicious email attachments, infected websites, or vulnerabilities in software. Once executed, ransomware quickly spreads throughout the network, encrypting files and displaying ransom notes that demand payment in exchange for the decryption key.

The Impact on Businesses:

1. Financial Losses: Ransomware attacks can inflict significant financial damage on businesses. The ransom demands can range from a few hundred to millions of dollars, and even if the ransom is paid, there is no guarantee that the attackers will honor their end of the deal. Moreover, businesses often face additional costs, including incident response, system restoration, legal fees, and potential regulatory fines.
2. Operational Disruption: Ransomware attacks can bring business operations to a grinding halt. When critical systems and data are encrypted, employees are unable to access vital information or perform their duties, leading to productivity losses and disruption of customer services. The downtime can have a cascading effect on revenue, customer satisfaction, and business reputation.
3. Data Loss and Breach: In some cases, ransomware attacks involve exfiltrating sensitive data before encrypting it. Attackers may threaten to publish or sell the stolen data if the ransom is not paid, exposing businesses to the risk of data breaches. Data breaches can result in severe legal and reputational consequences, including lawsuits, regulatory penalties, and loss of customer trust.
4. Reputational Damage: The impact of a ransomware attack extends beyond financial and operational consequences. News of a successful attack can tarnish a company’s reputation, erode customer confidence, and deter potential business partners. Rebuilding trust and restoring the company’s image can be a long and arduous process.
5. Legal and Regulatory Ramifications: Depending on the industry and geographical location, businesses affected by ransomware attacks may face legal and regulatory implications. Data protection laws, such as the EU’s General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA), mandate organizations to protect personal data adequately. Failure to comply with these regulations can result in substantial fines and legal repercussions.

Mitigating the Impact:

While the threat of ransomware is persistent, businesses can take proactive steps to mitigate its impact:

1. Regular Data Backups: Maintain secure and up-to-date backups of critical data. Ensure backups are stored separately from the main network and regularly test restoration processes to verify their effectiveness.
2. Robust Cybersecurity Measures: Implement a multi-layered approach to cybersecurity, including firewalls, intrusion detection systems, antivirus software, and regular patch management. Utilize email filters, spam detection, and employee education to minimize the risk of infection.
3. Employee Awareness and Training: Educate employees about the dangers of phishing emails, suspicious attachments, and malicious links. Promote cybersecurity best practices, such as strong password hygiene, two-factor authentication, and reporting any potential security threats promptly.
4. Incident Response Planning: Develop an incident response plan that outlines the steps to be taken in the event of a ransomware attack. Define roles and responsibilities, establish communication channels, and conduct regular drills to ensure readiness.
5. Regular Security Audits: Conduct comprehensive security audits and penetration

Protecting Your Business: Safeguarding Against Ransomware Attacks

In today’s digital age, businesses face an ever-increasing threat from cybercriminals, and one of the most prevalent and damaging forms of cyberattack is ransomware. Ransomware attacks can cripple an organization, leading to data breaches, financial losses, and reputational damage. However, by implementing robust cybersecurity measures and adopting best practices, businesses can significantly reduce the risk of falling victim to ransomware attacks. In this blog post, we will explore effective strategies to safeguard your business against ransomware and ensure business continuity.

• Employee Education and Awareness:
• A well-informed and security-conscious workforce is the first line of defense against ransomware attacks. Regularly educate your employees about cybersecurity best practices, such as recognizing phishing emails, avoiding suspicious downloads, and practicing strong password hygiene. Conduct training sessions, share informative resources, and encourage employees to report any potential security threats promptly.

• Implement a Multi-Layered Security Approach:
• Having a comprehensive cybersecurity strategy is crucial to protect your business against ransomware. Adopt a multi-layered security approach that includes the following elements:
  1. Endpoint Protection: Install reliable and up-to-date antivirus and anti-malware software on all devices within your network. Enable real-time scanning and automatic updates to detect and block potential threats.
  2. Firewall and Intrusion Detection Systems: Deploy robust firewalls and intrusion detection systems (IDS) to monitor network traffic and prevent unauthorized access. Regularly update and patch these systems to address any vulnerabilities.
  3. Secure Backup and Disaster Recovery: Regularly back up your critical data and ensure backups are stored securely, preferably offline or in a separate, isolated network. Test data restoration processes periodically to ensure backups are viable.
  4. Network Segmentation: Divide your network into smaller segments to limit the spread of ransomware. Implement strict access controls and ensure sensitive data is only accessible to authorized individuals.

• Keep Software and Systems Updated:
• Outdated software and operating systems are common entry points for ransomware attacks. Regularly update all software applications, including web browsers, email clients, and operating systems. Enable automatic updates whenever possible to ensure prompt installation of security patches and bug fixes.

• Email Security Measures:
• Email remains one of the primary vectors for ransomware distribution. Implement robust email security measures, including:
  1. Spam Filters: Utilize advanced spam filters to block suspicious emails and prevent phishing attempts from reaching employee inboxes.
  2. Email Authentication: Implement email authentication protocols like Sender Policy Framework (SPF), DomainKeys Identified Mail (DKIM), and Domain-based Message Authentication, Reporting, and Conformance (DMARC) to prevent email spoofing.
  3. User Awareness: Educate employees about email security best practices, including verifying sender addresses, avoiding clicking on suspicious links or downloading attachments from unknown sources, and reporting any suspicious emails promptly.

• Regular Data Backups and Testing:
• Frequent data backups are essential to mitigate the impact of a ransomware attack. Implement a robust backup strategy that includes automated backups and periodic testing of data restoration processes. Ensure backups are stored securely and kept separate from the main network to prevent ransomware from infecting them.

• Incident Response and Business Continuity Plan:
• Develop a comprehensive incident response plan that outlines the steps to be taken in the event of a ransomware attack. The plan should include procedures for isolating affected systems, notifying stakeholders, engaging law enforcement, and restoring operations. Regularly review and update the plan to reflect changes in technology and emerging threats.

• Regular Security Audits and Penetration Testing:
• Periodically conduct security audits and penetration testing to identify vulnerabilities in your network infrastructure and applications. Engage with ethical hackers to simulate real-world attack scenarios and identify potential weaknesses.

Leave virus protection to your MSP Doctor

Cyberattacks on individuals and businesses for nasty purposes is nothing new. Stealing data, disrupting business, national activities, and just causing general mayhem has been going on for as long as there has been a digital world to attack. Ransomware, however, seems to stand out as a particularly unique and especially troublesome form of crime. For one thing, once an attack has happened, there is likely nothing to do to retrieve your data until you have given in to the demands of the criminals.

As a small- to medium- sized business owner, you should never just rely on off-the shelf virus protection programs as the sole tool to protect your organization against cyber crime. In all cases you should rely on an IT professional to look at every aspect of your IT infrastructure to ensure that everything possible is being done to protect your data. Beyond that, ransomware attacks are a particularly troublesome form of crime that requires special attention. Some of the routine tools to protect data may still be vulnerable to ransomware. This e-guide will talk about seven specific ways that an MSP is best positioned to help protect you from a ransomware attack.

Before talking about how an MSP can help. Let’s define ransomware. Ransomware is an especially nasty software whose MO is as old as crime: Kidnapping ( in this case, datanapping) Ransomware does this by infiltrating your computer systems and encrypting all of your files, making them unreadable to you. Then like any kidnapper, they post a ransom and hold your data hostage until they get paid. They encrypt your files, rendering them inaccessible to you. The attackers then demand a ransom payment. Ransomware attacks are typically carried out through phishing emails, compromised websites, or exploiting vulnerabilities in software. ( please check out some of our other e-guides on training your employees to avoid phishing emails, and avoiding other easy tricks that criminals use to infiltrate your IT systems.)

What happens once they have encrypted your data? You are probably stuck either paying the ransom or losing the data. In the case of ransomware, sometimes routine backups may be infiltrated. This is why an MSP can be of such value in securing your data against this particular form of cyber crime.

The impact of this crime is pretty obvious. Your data–and your customer’s data–is inaccessible. You have almost no choice but to pay the ransom. The loss of data can disrupt daily business activity and damage customer trust. A successful ransomware attack can lead to brand damage, regulatory penalties for data breaches, and potential legal consequences. The overall consequences can be devastating, making it especially important for you to take proactive measures to prevent such attacks.

The basic preventative measures. Are they enough?

In general, there are some basic textbook best practices you can follow

• Educate employees about cybersecurity best practices, including identifying phishing emails and suspicious links.
• Regularly back up data and ensure offline or offsite storage to prevent data loss in case of an attack.
• Keep software and systems up to date with the latest security patches.
• Implement robust endpoint protection solutions, including firewalls, antivirus software, and intrusion detection systems.
• Segment networks to limit the spread of ransomware and restrict access to critical systems.
• Develop and test a disaster recovery plan to ensure an effective response to an attack.

However, straightforward as these appear, these aren’t as simple to implement as they sound and you may not have the time and labor to devote to designing, implementing, and maintaining these procedures. As an MSB, your focus is necessarily focused on operations, revenues, and sales. A Managed Service Provider has the resources and the expertise to handle your virus protection and ransomware avoidance planning so you focus on revenues.

Infection protection: Nine steps to start protecting your company today

Malware is a generic term that covers all manner of software that is designed to attack your devices, applications, programs, and networks. It is software that has bad intentions. Yes, stealing. Either by directly pulling money out of accounts, or improperly acquiring data that ultimately provides access to funds. Example: Stealing your SSN and setting up a credit card to use that info, or convincing you to provide the password to your checking account. Others will snatch your organization’s data and hold it for ransom. As usual, it is all about money. What can you do?

Nine steps to avoid malware

1) Don’t go it alone – As a small- to medium-sized business, you have limited resources, all of which need to be focussed on running the business and planning for the future. That makes it difficult to direct an IT operation that has the depth to address all of the security issues you face. For example, a business owner cannot possibly keep up with the changes and details of tax laws. Doing it themselves, they would likely overlook important tax advantages or inadvertently break some IRS rule. As a result, tax preparation and accounting above the level of basic bookkeeping is outsourced to an outside accounting firm. You should consider looking at IT in the same way.

2) Pay attention to those update windows – Don’t procrastinate. Those update requests aren’t just for adding a new feature. Each update probably addresses some vulnerability in the software that could be exploited by a virus. You may also want to consider outsourcing this project. In a complex business, there is a long list of installed software that needs to be updated. An MSP can coordinate that project and handle any glitches that appear when an update is installed. Also, be mindful that if you permit BYOD- all of those remote devices are vulnerable if their owners neglect updates.

3) Multi-factor Authentication – It is getting tough to log into much of anything these days without hitting MFA. And for good reason. MFA is a tool that works to cut down fraud by asking for additional data to verify your password in order to gain access. Generally it involves entering a password then following up with a token you might be sent via text or email, or using a biometric measure, such as a fingerprint. An MSP can provide applications that can set up MFA to protect your data.

4) Create a strict backup policy and follow it – Data can get corrupted, lost, or stolen. Handling backups is more than just downloading data to a hard drive every evening. An MSP can provide you with the tools needed to handle backups appropriate to the needs of a business operation or take on full responsibility for the task.

5) Manage access – Who can look at what data? In a smaller business, we often just provide access to data to an employee or we don’t. Why? Because it is simple. Instead, tighten your security by segregating data access. Individuals get access only to the data needed as defined by their job description. Follow the Principle of Least Privilege. That is, each individual only has the access to accounts, databases etc. that are absolutely necessary for them to do their assigned tasks.

6) Train everyone on basic data security – Humans are still a very weak link in an organizations defense against cybercrime. Poor password hygiene and inattention to scams are the biggest concern for business owners. Here are some areas where training can help.

7) Identify phishing emails – These are mails that appear to come from legitimate sources, but are faked. Because the reader trusts the sender, they naively open a link that might be attacked which then downloads some forms of malware.

8) Prevent a “Lost” USB – Too often, individuals will find a USB drive left near a desk or dropped somewhere. The temptation to insert it into their computer to see what’s on it can be very hard to resist. This was part of what caused the Target data breach.Train employees to only insert company verified hardware into their computers.

9) Password etiquette – Define standards within your organization about acceptable passwords. An MSP can help you set up programs that require employees to create passwords that meet your defined criteria. Also, consider fostering a culture that makes the sharing of passwords a performance issue that will be addressed by an individual’s supervisor.

10) Take the step beyond anti-malware software – Anti-malware software is necessary, but it isn’t as proactive as one might want. Your MSP can design an endpoint detection and response solution.

So, what, exactly, is Malware?

Listen to the news? Read the internet? You know cyber crime is a very big business. Hackers and criminals are out there doing all sorts of nefarious things. Most generally, you hear that malware is some kind of virus that attacks your software programs, infects your hardware, and bungles up your network. But there are many different types of malware, just as there are many types of criminals–each with their own MO and bad intentions. In this e-guide, we will run through some of the major categories of malware, and then suggest 7 different ways you can work to protect your business from malware.

Malware defined – Malware is a generic term that covers all manner of software that is designed to attack your devices, applications, programs, and networks. It is software that has bad intentions. Malicious + Software= Malware. Hackers and criminals create malware for an array of reasons. Some may create it just to attack massive amounts of machines just to show that they can disrupt the cybersphere. Other malware may be created for political reasons. The major reason criminals create malware? To make money without earning it. Yes, stealing. Either by directly pulling money out of accounts, or improperly acquiring data that ultimately provides access to funds. Example: Stealing your SSN and setting up a credit card to use that info, or convincing you to provide the password to your checking account. Others will snatch your organization’s data and hold it for ransom. As usual, it is all about money.

FUN FACT: Before the internet, passing around malware to infect a PC meant a criminal had to find a way to infect a floppy disc and trick users into inserting it into their computer. One of the first was created by a high schooler in the early 80’s. It was relatively benign and just created a pop-up with a Seuss-like poem

Unfortunately, most viruses now have far more nasty intentions, and the internet has made it much easier for criminals to break in. No waiting for you to insert a disc drive to steal your data, disrupt your internal business operation, or take down your website. One bad click and you’re in trouble.

Malware is a general term and there are several types.

VIRUS – Like the pathogen we associate with human disease, a virus is a “piece of code that is capable of copying itself and typically has a detrimental effect, such as corrupting the system or destroying data.” Source: https://languages.oup.com/google-dictionary-en/.

A characteristic of a virus is that it requires the user to take some action for it to infect your hardware, software, network, etc. For example, inserting an infected thumb drive or clicking on a link found in an email.

ADWARE -Adware is less a type of malware than a symptom created by the infection. Adware invades and then drives the user crazy with endless pop-up advertisements.

WORMS – Similar to viruses, worms replicate and attempt to cause damage but they don’t require a user action. Worms find vulnerabilities or holes in code that allows them access.

TROJAN HORSE – Yes, named after the Greek myth, Trojans trick you into accepting something you want, but inside it has bad intentions. A trojan refers to the method the cybercriminal uses to get you to download a virus or other infected program, rather than the nature of the specific virus.

KEYLOGGERS – This is malware that can track your keystrokes. This particular malware’s goal is to track your keystrokes and identify passwords or credit card information, and then log into your accounts.

RANSOMWARE – If there was any malware that gets more media attention, we aren’t aware of it. And it deserves everyone’s attention. Unlike some other forms of malware, once this has invaded, there is very little you can do to eliminate the virus. Ransomware sneaks in, snatches your data and holds it for ransom. Unless you choose to pay the ransom fee, usually in some cryptocurrency, you are out of luck. In the specific case of ransomware, prevention is the key. Having clean backups of your data which are kept continuously up to date is about the only way to sidestep a ransomware attack on your data.

Thing to do this week to start protecting your customer data

You have client or customer data in your possession. It is part of running your business in a digital marketplace. If that data is breached, it could permanently damage your reputation. We talked in an earlier blog about types of malware. There are many steps that you can take to protect your systems and data. Here are a few suggestions to protect your business from malware.

Consider a Managed Service Provider – Cybercriminals are very sophisticated and every day are releasing new, cutting-edge tools to attack businesses and individuals. Small- and medium-sized businesses do not have the resources to staff an IT department sufficiently to be aware of all the newest tools and technologies needed to protect a business. For example, a business owner cannot possibly keep up with the changes and details of tax laws. Doing it themselves, they would likely overlook important tax advantages or inadvertently break some IRS rule. As a result, tax preparation and accounting above the level of basic bookkeeping is outsourced to an outside accounting firm. You should consider looking at IT in the same way.

Updates – Always update your software. There will always be vulnerabilities in every bit of software that you use. Creators of software are constantly upgrading to close holes that could be exploited. Being attacked by malware because you are behind in upgrades is an avoidable error. That said, given the sheer volume of software applications accessing your network, you should consider outsourcing the administration and enforcement of this process.

Multi-factor authentication – Everyone is increasingly encountering MFA. This tool requires a second level of authentication in order to access an account or use a program. Generally, it involves entering a password then following up with a token you might be sent via text or email, or using a biometric measure, such as a fingerprint. An MSP can provide applications that can set up MFA to protect your data.
Access Control – You don’t give out keys to your house to everyone you know. Why allow all employees or vendors to access all of your databases or programs? Instead, follow the Principle of Least Privilege. That is, each individual only has the access to accounts, databases etc. that are absolutely necessary for them to do their assigned tasks.

Backups – Everyone knows they need to do backups, but handling these is more than just downloading data to a hard drive every evening. An MSP can provide you with the tools needed to handle backups appropriate to the needs of a business operation.

Employee education-This one cannot be emphasized enough. The individuals in your organization are your first and most critical line of defense against malware. As mentioned above, many types of malware need user action to get into your systems.

Here are some areas where training can help.

Phishing emails. These are mails that appear to come from legitimate sources, but are faked. Because the reader trusts the sender, they naively open a link that might be attacked which then downloads some forms of malware.

“Lost” USB. – Too often, individuals will find a USB drive left near a desk or dropped somewhere. The temptation to insert it into their computer to see what’s on it can be very hard to resist. ( This was part of what caused the Target data breach)

Password etiquette – Define standards within your organization about acceptable passwords. An MSP can help you set up programs that require employees to create passwords that meet your defined criteria. Also, consider fostering a culture that makes the sharing of passwords a performance issue that will be addressed by an individual’s supervisor.

Endpoint Detection and Response ( EDR): This is a solution an MSP can provide you with. At its basic level, EDR is a proactive approach to anti-malware software. EDR constantly looks at all of the endpoints in your network, tracks behaviors and identifies anything out of the ordinary. For an individual, anti-malware software may be sufficient. For a business that has multiple endpoints, this is not sufficient. ( Think dozens of employees connecting remotely via their own computer or smartphone). In a sophisticated business’s IT infrastructure, there are many endpoints which need to be evaluated.

In summary, there are many ways that an SMB can approach defending itself against malware. Some of these, such as employee training, can easily be done in-house. Others require a depth of experience that only your MSP can offer.

What exactly is Malware? A definition and some common types.

So what happens when you get software that has been mixed with a strong dose of malicious intent? You get malware, the term used to describe all manner of software invasion that has been designed to do bad things to your computers, networks and digital devices. It may have been created to steal something from you, such as data that can be monetized. It may try to directly steal money from you by draining bank accounts, or using credit card numbers. Sometimes, malware’s intention may be political: it may be about governmental intrigue or industrial espionage, Or it may just be about showing off or causing chaos for its own sake. Whatever the motivation, every organization needs to be constantly on guard to protect its data. Failure to protect the data of your clients and employees can result in serious damage to your reputation and brand as well as lead to fines from regulatory bodies. It can also open you up to liability from individuals or groups that have been harmed.

Malware isn’t new, of course. As long as there have been computers there has been malware. Long before computers were connected to the internet and other public networks, malware was placed onto floppy discs. Once inserted into a computer, they could wreak havoc. Now, it is through our connectivity that bad actors work to infect our computer systems.

Types of Malware

Malware is an umbrella term that covers an array of specific tools to cause trouble or steal data. These include…

Viruses
A virus is pretty much what you would think. Like the flu, it attaches itself to a host program where it then will try to change the code to steal your data, log your keystrokes, or corrupt your system/data. Generally, to be infected by a virus, some user action has to occur that allows the virus into your system. Example: The user opens a link found in an email that looks to be from a legitimate source, but isn’t.

Worms
Worms are similar to viruses in how they replicate and attempt to cause damage but they don’t require a user action. Worms find vulnerabilities or holes in code that allows them access.

Trojan Horse
Just like the Greek myth, trojans trick you into accepting something you want, but inside it has bad intentions. Basically, a trojan refers to the method the cybercriminal uses to get you to download a virus or other infected program.

Adware
Adware is a type of virus that can invade through various methods, such as a trojan or corrupted software. Adware generally besieges you with pop-up ads.

Keyloggers
This is malware that can track your keystrokes. This particular malware’s goal is to track your keystrokes and identify passwords or credit card information, for example, and then log into your accounts.

Ransomware
No malware seems to get as much media attention as ransomware. And for good reason. Unlike some other forms of malware, once this has invaded, there is very little you can do to eliminate the virus. Ransomware seizes your data and holds it for ransom. Unless you choose to pay the ransom fee, usually in some cryptocurrency, you are out of luck. In the specific case of ransomware, prevention is the key. Having clean backups of your data which are kept continuously up to date is about the only way to sidestep a ransomware attack on your data.

What can you do? Simply put, an off the shelf anti-virus software (now referred to as anti-malware) isn’t going to cut it in the business arena. Your systems are far too complex, with too many endpoints to rely on a solution better limited to home use. More importantly, you need protection systems, such as Endpoint Detection. An MSP is your best resource. As a small- to medium-sized business owner, you have limited time and resources to explore and design these protections on your own. An MSP can be your strategic partner in data and digital security.

Risk assessment: A Value model

Risk assessment means looking at all the conditions, situations and threats that exist that could damage or bring down your business. Risk assessment is all about identifying the external and internal threats that exist and measuring the likely consequences if that threat becomes reality. A data security risk assessment would identify what data you have, how you use it, how confidential it may be, how it is affected by regulations and the ways it could be compromised. A major focus of a data security assessment is cybercrime.

In terms of developing an IT staff, the alternative approach to building out a team is to determine your IT staffing needs in terms of risk assessment. That means evaluating risk and directing staffing resources to those areas where the risk is greatest and the consequences most severe. Basically, it is an evaluation on the ROI of your IT staffing in light of identified risk. In particular, what is the return on your risk management investment? The goal is to evaluate risk in light of business and operational consequences. Put simply, which point of failure leads to the most destructive consequences. Once that is determined your limited IT resources can be directed at those most critical areas.

In the short term, you can try to find the specific applicants that have what you need to plug the holes. Is that workable given the challenges to hiring? The market is very competitive.

The alternative is an MSP. Using a Managed Service provider for at least some of your most critical needs can be a very effective way of targeting your IT resources to where you are most vulnerable.

You have more freedom to move resources to where they are most needed.

Opting for an in-house IT team limits you in terms of scalability. You cannot just add or reduce the strength of your IT team anytime. Choosing a managed services provider, however, provides the flexibility to scale up or scale down your IT investment to suit your business needs.

You are better prepared for IT emergencies

Having a service contract with an MSP helps you tackle IT emergencies better because you get access to top-level IT expertise. An MSP’s core business is IT so they are naturally more knowledgeable and up-to-date when it comes to the latest IT challenges, including cybercrime. Plus, an MSP can deploy more resources if need be to solve your IT emergency, helping your business get back on its feet sooner.

You will be ahead of the curve

The IT industry is constantly evolving. The in-house IT team may find it challenging to keep up with the latest trends and norms of the IT industry as they will be caught up in managing the day-to-day IT activities at your office. Also, IT is a very broad field, and only a diverse IT team has the depth to cover all of the different areas. With an MSP, you don’t have to worry about how technology is changing. A good MSP will not only be up-to-date with the latest in tech but also advise you on what tech changes you need to make to stay ahead of the curve.

The lesson for hiring IT is that you should focus resources, be they in-house or external, on the areas where your business is at highest risk from a single point of failure or a cyber attack. Not all IT needs are equal, and traditional models don’t always recognize this. A Managed Service Provider can also assist you in determining a hierarchy of your IT needs.

Leveraging your business data to drive better business outcomes

Smaller firms may hear about AI and how data is driving the big corporations of the world, but they often don’t realize that they can do the same. The size and age of your business doesn’t have to be a limiting factor in whether you use data. Today’s blog is a quick look at data management for the small firm.

The first lesson is: don’t take your data for granted. The basic business model for some large IT companies is monetizing the data that they collect. While this may not be your goal, you probably collect a great deal of data about your customers, prospects, and operations. An MSP can help you make better use of that data. Here are just three examples:

Marketing

Data tells you who is interested, when they’re interested, and in what they are interested. Data can tell you where each individual prospect sits in the sales funnel, so your marketing messages reach them exactly where they are. It can also track the performance of your online marketing initiatives.

Forecasting and Sales

Customer Relationship Management applications exist because of the data that can now be collected. They monitor sales efforts, nurture leads, and work to improve customer engagement.

In-house and Operations

Data can track all manner of things in your production of goods or services, identifying where resources are being spent in each step of the process. Data can also be used in scheduling and pricing, although these tools can have human resource and customer relations implications that need to be carefully considered.

Planning and the Future

Technology is more than just something to run your business today. It can be a source of innovation for the future of the business, pushing it in new directions. You should be taking a proactive view of technology as a strategic tool for the long-term growth of the business. How can new technology help with in-house software development, infrastructure upgrades, digital transformation, and product innovation? Questions to ask in this context would be “can technology improve the delivery of products and services, or improve qualitatively the nature of the product or service itself?” As part of C-suite plans to stay competitive and thrive in the market, leadership needs to understand what new technologies are available for future innovation. However, that means you need technology support that is focussed on strategic planning; understanding new technologies that can move the business forward. For an SMB, Managed Service Provider can be the CIO/CTO that understands your business and helps plans for the future.

In summary, most SMBs are limited in how they can make use of technology in their strategic planning. As a result, this may compromise their capacity to remain competitive in the long-term. Consider using an MSP as a strategic partner in your long term planning.

Roadmaps for Data Security and for Strategic Planning

It is time you were encouraged to stop looking at the technology you use to run your business as just some reliable piece of invisible infrastructure that hums along in the background.

Instead, business owners should look at technology from a strategic perspective. What can technology do to support business in the future? How can new technology help your present business evolve and adapt to new market demands and customer expectations? For instance, AI is a new technology that may create serious disruption in many industries. Failure to think into the future could put a business at a disadvantage. Unfortunately, most small businesses face two challenges that make it difficult to incorporate new technology into their strategic plans.

1. In-house staff focus more on maintaining existing technology – For many SMBs, in-house IT staff resources are limited. As a result, much of their time and attention must be focused on putting out fires and handling emergencies. Beyond that, day-to-day maintenance and support of your IT infrastructure is probably stretching them past the breaking point.
2. Leadership expertise in SMBs is concentrated entirely on running the business and growing revenues. Very simply, SMB leadership’s skills are in their specific industry. Management needs to be focused on the product or service and driving revenues. The issues get back to “core competencies.” A business that gets distracted from its core competencies may damage its focus on quality and meeting customer expectations.

Because of these two challenges, SMBs tend to not integrate technology into long-term strategic planning. They simply don’t have the luxury of devoting resources to IT planning. There is a solution, however. An MSP has the depth and breadth of resources that you could never hope to build and manage internally. To do so would drain management focus and be financially unsupportable.

What can an MSP bring to a small business? Here are six areas where an MSP can help a small business act strategically and integrate technology into long-term growth plans.

Building a Technology Roadmap

At the heart of a technology roadmap is this question: “Can technology improve the delivery of products and services or improve qualitatively the nature of the product or service itself?” A technology roadmap works to develop a complete, concrete answer to this question. It is a long-term planning document that defines how and what technology should be incorporated into the growth of the business. Individual parts of a roadmap will address specific aspects of the company’s technology such as software development, infrastructure upgrades, digital transformation, and product innovation. A technology roadmap that includes product innovation is especially important. The roadmap may also include research and development initiatives.

Creating a Security Roadmap

A security roadmap is the result of a risk management analysis. By analyzing the vulnerabilities in your IT infrastructure, including cyber security threats, an MSP can create a security roadmap that identifies all the actions that need to be taken to fortify your IT infrastructure as much as possible. Like a technology roadmap, it is a specific plan for ensuring that your data, network hardware and software remains safe from cybercriminals. Data is critical to your business. It is proprietary and it is also very vulnerable to theft. A data breach can be a real threat to the viability of your business. The legal and reputational consequences can take down a small business. A security roadmap can include:

• Determining what regulations govern your data (HIPAA, GDPR, FERPA, etc.)
• Developing access protocols
• Training employees about human vulnerabilities to cybercrimes, such a phishing
• Creating effective backup procedures, which are a particularly important defense against ransomware attacks