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Summer Journal

Volume 27, Issue 3

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Jon Seals

When disaster planning for the supply chain, people rarely talk about what happens when parts and devices are damaged but not ruined. However, in the aftermath of the Japanese earthquake and tsunami, the Thailand floods, and the hurricanes and tornadoes in the US, it's high time for this conversation to start happening in a big way.

Reverse logistics and repair are crucial parts of disaster recovery efforts. Fortune 500 electronics manufacturers will have to rebuild production equipment. Individual consumers will want their under-warranty cars, laptops, and phone replaced. Third-party vendors will be salvaging and reselling scrapped parts.

Let's take Hurricane Sandy, just because it's still fresh in many people's minds. In February, the National Insurance Crime Bureau raised its estimate for the number of vehicles damaged by the storm to 250,500. That number is still based on preliminary figures and could change as more insurance claims are processed. Many of those cars have been cleaned up and may be back on the market under the "good but previously damaged" label. Many others have turned up without such a label.



The result is included in a recent survey of more than 3,000 employers by Zywave, a provider of software as a service technology solutions for the insurance and financial services industry. It was conducted during the first quarter of 2013.

The survey showed 53 percent of employers are very or somewhat concerned about post-accident cost control while 50 percent are concerned about risk control in the form of accident prevention. However, when asked for the most effective measure they take to control workers' comp costs, having a safety-minded culture was mentioned by 69 percent of respondents, although only 26 percent rank safety incentives as effective or highly effective. Also, 34 percent say they do not have a written safety manual.



The arrival of outcomes-focused regulation in October 2011 was greeted with howls of concern by the solicitors’ profession as a whole. A new and uncertain regulatory landscape lay ahead of a profession that has a strong desire for certainty and clarity at the very heart of its culture, training and service offerings. Commentators at the time noted that the new regime offered plenty of negatives and few positives. Eighteen months on, though, the landscape feels very different. Those that have embraced the changes can feel empowered by them and are able to drive risk management into their business as a key part of the business process, rather than simply a compliance burden.

There are things that firms need to be aware of, principally that the change in regulatory structure has moved responsibility away from the regulator to the regulated, with a consequent need to apply sufficient resource to risk-management activities. But there are also opportunities to be exploited. Not opportunities to play fast and loose in the face of broader, less prescriptive, regulatory rules, but instead opportunities to focus on making regulatory, compliance and risk management a more central part of any business and to construct it in a way that fits with your business needs rather than regulatory strictures.



So you need to do some Business Continuity/Disaster Recovery (BC/DR) Planning, but aren’t sure how to start? Depending on the size of the task and the level of prior focus on BC/DR planning within your organization, this could involve anything from simply sprucing up your existing BC/DR plans to the overwhelming feat of creating new plan designs and implementations. If the latter is your situation, don’t feel alone. There are many data center managers, IT executives, and application owners that feel like they’re behind the 8-ball on their business continuity and disaster planning efforts. Rest easy and know that with the right steps, you can get things moving forward in the right direction.

Business Continuity and Disaster Recovery Planning: The 60/40 Rule

One of my best mentors was an extremely successful leader in risk and resilience programming in both the federal government and commercial industry sector. He taught me early on (much to my initial chagrin) that the best programs start out with the 60/40 rule, meaning that you should start out and “sell” goals and objectives that are only 60% of where you would ideally wish to see the end-state. The “60/40 rule”??? As a devoted and overly ambitious “Business Continuity Professional,” I could conceivably accept the classic 80/20 Perato Principle, but 60/40 was difficult to swallow. But he was “the Boss,” so I figured I might as well go with the flow, accept his guidance, and ensure that all my programs targeted getting “60% there.” So how would this work?



The word “disaster” can be used to describe a broad range of events, such as violent weather, a catastrophic accident, or a natural event that causes great damage or loss of life. Disaster recovery is an equally broad term that encompasses both the planning and preparation prior to a catastrophic event, as well as the recovery and recuperation of those affected.


A seminal moment in disaster recovery occurred in 1988 when a fire destroyed a central office operated by Illinois Bell in the suburbs of Chicago. The Hinsdale Central Office handled 40,000 local phone lines, which supported the O’Hare International Airport and numerous businesses. Service wasn’t restored for weeks and, one by one, thriving businesses failed and were liquidated. Network planners and architects came to realize that there are a multitude of things that can negatively impact network operations in addition to natural disasters.

While disaster recovery and business continuity are similar in many ways and share many overlapping concerns, they are different subjects. Disaster recovery deals with the aftermath of a catastrophic event that affects an area or region. Business continuity involves the safeguarding of critical business functions.



Whether you operate a seasonal business or sales pick up during the summer months, summertime can be full of risks for small business owners.

From on the job injuries to extreme weather, there’s a host of things that can go wrong to hurt sales or worse yet derail the entire operation.

“Summer is a busy time for certain businesses, particularly those along the coasts,” says Judy Coblentz, VICe president and chief underwriting officer at Travelers. “In certain parts of the country the summer season brings more business and pretty big exposures for small businesses.”

To prevent your business from taking a hit this summer, Travelers put together a list of the biggest seasonal risks and ways to avoid them.


June 24, 2013

Big Data and GRC

The following is CCI Publisher Maurice Gilbert’s interview with John Verver, VP, Strategy at ACL. Mr. Verver is a Chartered Accountant, Certified Management Consultant, and Certified Information System Auditor, as well as a member of the Center for Continuous Auditing’s advisory board.

Big Data is a hot topic right now – how does it relate to GRC and the practical issues of risk management and compliance?

The term Big Data is used in a wide range of contexts, but it generally refers to the gathering and integration of data from various sources, both traditional and non-traditional, in order to obtain better insights into customers, prospects, market opportunities, and corporate performance. Although it is not often used in reference to risk management, controls, and compliance, it’s interesting to note that analysis of very large volumes of data from disparate sources has played a significant role in GRC for at least the past 10 years.



CSO — Richard Ramirez is remembered all across southern California for the terror he invoked during the early 80's. The serial killer, who died in prison earlier this month, was nicknamed the 'Night Stalker' and was known for the ease with which he entered his victim's homes. He did not break and enter, he didn't shatter windows or climb down the chimneys. For the most part, Richard 'walked' into homes either through screen doors left unlocked or windows left open. Many of his crimes I've been told, were committed close to freeway ramps to facilitate a fast getaway.

What was very interesting to note about Ramirez's victims is that even though the city was aware of a serial killer on the loose, people still left their windows open or the screen doors open. I know I would batten down the hatches and take extra precautions until I heard the killer had been caught. So what makes people be lax and laissez-faire, in the face of a known and omnipresent danger?



Unique End-to-End Supply Chain Optimization Plays Key Role

Martinsried, Germany – ADVA Optical Networking announced today that it's won the prestigious Supply Chain Management Award. This annual award is presented to the company with the most effective value chain in the manufacturing industry. The awarding bodies believed that ADVA Optical Networking's global end-to-end and cross-enterprise segmentation is unique within the manufacturing industry and provides the company with a clear competitive edge. The award was presented by the management consulting unit of PwC and the trade journal Logistik Heute, in partnership with the Institute for Supply Chain Management and the House of Logistics and Mobility.  

“Everything we do is driven by the customer, by providing the the best service possible,” said Dr. Paulus Bucher, senior vice president, Global Operations, ADVA Optical Networking. “That's why we've transformed our entire global supply chain management process. We've created something special, something no one else has. Our customers compete in some of the most fiercely competitive markets in the world and they must be confident that we can deliver what they need, when they need it. Ultimately, our end-to-end supply chain is not only our competitive edge, it's also our customers'. This is one of the key reasons why we're seen by service providers and enterprises as a trusted partner. ”

Since its implementation, ADVA Optical Networking's supply chain optimization process has achieved significant results. The company has recorded a reduction in supplier lead times of over 50%, an increase in on-time deliveries from 85% to 97% and an annual acceleration in stock turnaround times of 50%. The key to this success is in the end-to-end and cross-segmentation of the supply chain. This segmentation enables the teams at ADVA Optical Networking to effectively service a multitude of product and customer portfolios. Part of this process involves the decoupling of planning and production, providing enhanced flexibility to changing customer demands.

“The jury was impressed by the systematic integration of the business and supply chain models,” stated chairman of the awarding jury, Harald Geimer, partner at PwC. “The development-driven company created an agile supply chain organization based on the needs of its customers. The result is that ADVA Optical Networking can now serve its customers faster, with better on-time performance, and at lower cost than its competitors.”

“This award doesn't solely recognize our success in supply chain management, it recognizes countless hours of effort from our global team, it recognizes a commitment to delivering something extraordinary,” commented Jaswir Singh, chief financial officer and chief operating officer, ADVA Optical Networking. “We harnessed every possible resource to reimagine what our supply chain management could look like and, more importantly, what our customers needed it to be. This award tells the industry, tells our customers, that our team goes beyond every expectation to meet their needs, our objectives and our commitments. But this is only the beginning. From this base we're going to drive forward, refine processes and optimize further. This is what we do.”


About ADVA Optical Networking

ADVA Optical Networking is a global provider of intelligent telecommunications infrastructure solutions. With software-automated Optical+Ethernet transmission technology, the Company builds the foundation for high-speed, next-generation networks. The Company’s FSP product family adds scalability and intelligence to customers’ networks while removing complexity and cost. With a flexible and fast-moving organization, ADVA Optical Networking forges close partnerships with its customers to meet the growing demand for data, storage, voice and video services. Thanks to reliable performance for more than 15 years, the Company has become a trusted partner for more than 250 carriers and 10,000 enterprises across the globe. For more information, please visit us at www.advaoptical.com.

About Supply Chain Management Award

Each year since 2006, the Supply Chain Management Award has honored the best value chain in the manufacturing industry. It is presented by PwC and the trade journal LOGISTIK HEUTE in collaboration with the Institute for Supply Chain Management (ISCM) and the House of Logistics & Mobility (HOLM) to reward innovative solutions in supply chain management that have made significant contributions to competitiveness and paved the way for other companies. The award is presented to powerful end-to-end supply chain solutions and outstanding implementations within individual links in the value chain. An independent jury of 14 prominent industry experts, scientists, journalists, and consultants chooses the winner. Past winners: Siemens Electronic Assembly Systems Division (2006), Siemens Gerätewerk Erlangen (2007), international packaging and paper group Mondi (2008), Henkel Laundry & Home Care Business Sector (2009), BMW Group’s Motorcycle Division (2010), BASF (2011), and Infineon Technologies (2012). www.beste-supply-chain.de.

COLUMBUS, Ohio – Emerson Network Power, a business of Emerson and a global leader in maximizing availability, capacity and efficiency of critical infrastructure, today launched the CIO Topics podcast series. Through short interviews with Emerson experts, the series explores current IT-focused business issues and strategies and tactics for building a stronger and more agile data center infrastructure.

The first podcast, Creating a Data Center Crystal Ball, is available now. In it, Blake Carlson, vice president of global strategy and business development for Emerson Network Power’s Avocent business, discusses how companies can gain the visibility needed to stay ahead of business needs and make decisions based on real-time information.

Upcoming podcasts will address planning for the future, results of our CIO of the Future survey, how to choose a growth option for your data center, and more. The CIO Topics podcasts are available on Emerson Network Power’s site, along with Executive Briefs and Playbooks for Change designed to help CIOs and IT leaders better understand the evolving industry and IT’s role as a business asset. To subscribe to the podcast series, visit the CIO Topics podcasts page in the iTunes store. For more information about products and solutions from Emerson Network Power, visit www.EmersonNetworkPower.com.


About Emerson Network Power

Emerson Network Power, a business of Emerson (NYSE:EMR), delivers software, hardware and services that maximize availability, capacity and efficiency for data centers, healthcare and industrial facilities. A trusted industry leader in smart infrastructure technologies, Emerson Network Power provides innovative data center infrastructure management solutions that bridge the gap between IT and facility management and deliver efficiency and uncompromised availability regardless of capacity demands. Our solutions are supported globally by local Emerson Network Power service technicians. Learn more about Emerson Network Power products and services at www.EmersonNetworkPower.com.


About Emerson
Emerson (NYSE: EMR), based in St. Louis, Missouri (USA), is a global leader in bringing technology and engineering together to provide innovative solutions for customers in industrial, commercial, and consumer markets around the world. The company is comprised of five business segments: Process Management, Industrial Automation, Network Power, Climate Technologies, and Commercial & Residential Solutions. Sales in fiscal 2012 were $24.4 billion. For more information, visit