Cybersecurity 2024: Ideal budget and essential steps

Business continuity in shortage of IT equipment

Continuité d'affaires en pénurie de matériel informatique

In a recent webinar, we discussed the issue of business continuity in the context of IT equipment shortage. 
In order to provide an overview of this global issue, we reviewed the causes of the IT equipment shortage and provided details on the equipment involved. Then, we discussed the benefits of moving from “Just in time” to “Just in case” supply management. Then we also addressed the risks involved in the shortage of IT equipment.  

With the idea of being proactive, we have also proposed short, medium and long-term solutions to resolve the situation.

Why is there a shortage and what material is impacted  

The IT equipment shortage is the sum of a multitude of factors that have had a snowball effect on the production chain.   

Indeed, given that 87% of the world’s electronic components are produced in Asia (ABS News, 2022), it’s not surprising that production has been in turmoil in recent years. These include China’s zero COVID policy, which has forced all factory workers to isolate themselves, and put factories and ports on hold; and the fire at Japan’s largest electronic components factory (Usine nouvelle, 2021) 

On the other hand, recent rail and road blockades, labour shortages and absenteeism have exacerbated production delays.   

In addition, the war between Ukraine and Russia has impacted the production of raw materials essential to the manufacture of electronic components. (Le Monde Informatique, 2022) 

To sum up, we can see that, on the one hand, production has decreased, but on the other hand, demand has increased, especially regarding to the need for teleworkers IT equipment.   

This disruption between supply and demand has caused waiting lists to grow longer and longer for laptops, desktops, monitors, phones, tactile tablets, servers, and many other components of our daily lives.    

Moving from a “Just in time” to a “Just in case” approach 

Most companies tend to operate on a “Just in time” approach to their IT equipment procurement.    

This approach consists of managing according to orders and not according to inventory. Companies produce or buy only the quantity needed at the precise moment when the need arises.    

This is the case, for example, when a company expects an employee to be hired to purchase the computer equipment that will be given to him.    

This approach has allowed companies to reduce their inventory levels through « Just-in-time” supply. However, this approach has its limitations, as it requires a fluid supply chain.   

In order to adapt to the context of IT equipment shortages, we recommend adopting a “Just in case” approach. 

This approach consists of anticipating the need by having inventory of computer equipment in advance. This reduces the lead time for procurement, production and marketing.    

Although this method allows to counter the impact of the shortage of material, it is important to note that it entails a return of inventories and warehouses, then generates storage and handling costs that can affect cash-flow.   

Being aware that this approach is not within the reach of all organizations, you could opt for an alternative approach by operating on a hybrid of the two approaches presented below. This would require stocking strategic components to avoid costly downtime and reserving the “Just in time” approach for more accessible assets.   

For example, you could keep laptops and monitors in inventory, which have very long delivery times, and procure mice, keyboards and headsets as needed. 

The business risks of the IT equipment shortage for your company   

The shortage of IT equipment, if not well managed by your company, could create risks on two levels: productivity and security.   

Indeed, your company’s productivity could suffer if there is a lack of IT equipment, because your employees would not have the tools, they need to perform their tasks. Also, you could be slowed down in your hiring process because you can’t provide the necessary computers to your new recruits. We must be aware of our dependence on IT equipment for increased productivity.  

Regarding the security aspect, several security breaches can be opened due to poor management of the shortage of computer equipment.   

One example is the misuse of a BYOD (bring your own device) program or the acquisition of non-secure equipment in hybrid mode.   

For example, if you make your employees work on their personal computers while waiting to receive their professional equipment, you lose control over the security aspect of your data. 

Possible solutions to the shortage of IT equipment   

There are several short, medium and long-term actions that can be taken to mitigate the impact of the IT equipment shortage on your operations. Here is the plan we are proposing today:    

Short term – forecasting supply 

We advise you to keep an inventory of IT equipment for the growth of your workforce and the replacement of obsolete ones.    

Also, it is important to focus on better quality and more durable computers. To give you an idea, we recommend renewing 25% of your computer equipment annually, in addition to anticipating your needs according to growth, or at least 10%, knowing that all computer equipment orders now have very long delivery times.   

From an economic point of view, anticipating your needs could also prove beneficial in order to protect yourself from inflation, which does not spare the IT sector.   

Medium term – Virtual Workstation   

In order to overcome the shortage of IT equipment in the medium term, you can opt for Windows 365 or a virtual desktop (VDI) that will allow you to dematerialize what can be, temporarily or permanently.   

You can also set up a well-planned BYOD (bring your own device) program, with defined security parameters to ensure a “Zero Trust” approach at all times. 

Medium term – Cloud solutions   

Opting for cloud solutions for all your needs, or a hybrid approach will again allow you to dematerialize what can be dematerialized, and thus be less dependent on physical materials. Moving to the cloud is not only a more sustainable approach, but also a solution that can be economical.  

Medium term – Planning for IT Modernization and Growth   

Planning is a must in order to anticipate your needs and face the lack of resources. The idea is to anticipate significant purchases in advance by planning the computer equipment required for the company’s growth.   

In addition, a good practice to adopt would be to have an IT roadmap to follow the strategic needs of the company and anticipate the required inventory.   

Long-term – Review of processes and requirements    

Adopting a long-term view, it is in the company’s best interest to do a detailed review of the needs of each position and to consider that some employees may work only in SaaS interface, on tactile tablets, for example.    

In short…  

External upheavals often push us to review our organization in order to become more efficient and secure by preparing us for any eventuality.    

Don’t hesitate to surround yourself with the right people to audit your existing IT assets and to protect yourself against risks to your productivity and security by anticipating your needs. We would be delighted to discuss this with you over a virtual coffee

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