Let’s tell the truth right out of the gate, cyber security is not a known commodity in 2019. It is not a known need like insurance or hiring a lawyer. You don’t have to question why you hire a moving service or secure the services of a financial advisor. The value proposition is front and center for each.
However, I would argue that cyber security is more important than any service in 2019 and should be a high priority for your business and family.
We have talked at length about the risk data that supports the need for a cyber security plan, we have not talked about how you monetize your cyber security investment. Removing risk is great and an absolute need. Being able to sell the value of your cyber security investment is even more sexy to customers, employees, partners, investors and board members. Instead of a “have to do”, cyber security planning becomes a “we have to do, we want to do”.
Here is 4 ways to grease the wheels on your cyber security investment, on top of avoiding the business pitfalls associated with data breaches and security incidents:
- High Security Posture is a CMO’s Dream
CMO’s love to tell stories. Stories that involve how all end user’s benefit, is the nirvana story for all marketers. A secure experience that sits on top of the already established value proposition of the business, in any vertical, is a win for all parties involved. Trust is an invaluable commodity for any business. CMO’s can market and position that value as a competitive differentiator. Sales folks can sell that value all day long.
- Cyber Security Drives Business Valuation
Let’s be honest, nothing is forever. Every business owner has their eye on an exit strategy. With that knowledge in mind, we have done some research with our customers and partners. Our research has shown that companies who have a high security posture will sell at valuation that 15% greater than companies who are neophytes with their cyber security planning. While this 15% number can vary, the average we found levelled there. On the flip side, in most instances the investment in a cyber security plan is negligible compared to the 15% average on the business sale.
- Proactive Compliance
We recently wrote about the tea leaves that suggest a GDPR equivalent is coming to the United States in the not too distant future. What does that mean? It means that all of these data breaches you see in the news is making the investors anxious, which is never a good thing. Fortune recently wrote:
“The GDPR is setting a global standard, and U.S. companies will need to comply,” says Marc Rotenberg, president of the Electronic Privacy Information Center, a Washington, D.C., advocacy group. “Big U.S. firms are already required to comply with the GDPR for European markets, so it makes sense to extend a similar approach to the U.S.”
It behooves companies to proactively get ahead of compliance. While it is great to do to protect the business, the data of customers and save on massive headaches and unneeded costs, it is even more imperative to do it to get ahead of the compliance and the hefty fines associated with those. Do it now and give yourself time to get it right without rushing. It also gives you time to work through what we outline in bullet 4. Lastly, compliance supports a marketing and sales narrative, while driving business valuation (bullets 1 & 2).
- Own Your Business Vertical Security Standards
Every business vertical has particular values and standards. We are helping a business in hospitality set the standard for what secure hospitality is. We are working with another company to build the standard for secure storage and appraisals. These are differentiators for these businesses, say nothing about protecting the business. Today is blue ocean sailing for setting the secure standard for any and all business verticals. Every day that a new data breach is announced, is another reminder of the opportunity to become the proactive face of your industry and grasp the moment to staple your business as the secure standard. This will give you a leg up on the competition.
When Griffin started out, we thought we were going to simply secure networks and devices. After 5 years of experience and innovation with our customers, we have learned who we serve, how we serve and why serve. We also recently learned that we are a proactive and monetizable commodity for our customers. This is a new learning and an exciting learning. Our recommendation is to not wait till we become a reactive need versus a monetizable commodity.
We would welcome to sit down with you and learn how we can help you monetize your cyber security investment. Once we know the monetization opportunity, we reverse engineer from your current security posture (today), build to a high security posture, then execute the monetization strategy for your security posture. We would craft a plan (inclusive strategy guide and technical read out) built around your budget and begin the journey to that cyber security monetization strategy.
We hope this was helpful “cyber security ROI” guidance on how to think about cyber security. We look forward to getting to know you and your business.