BEST PRACTICES RESEARCH

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1 Frost & Sullivan 1 We Accelerate Growth

2 Contents Background and Company Performance... 3 Industry Challenges... 3 New Product Attributes and Customer Impact... 3 Conclusion... 6 Significance of New Product Innovation... 7 Understanding New Product Innovation... 7 Key Benchmarking Criteria... 7 Best Practice Award Analysis for Verizon... 8 Decision Support Scorecard... 8 New Product Attributes... 9 Customer Impact... 9 Decision Support Matrix The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices About Frost & Sullivan Frost & Sullivan 2 We Accelerate Growth

3 Background and Company Performance Industry Challenges The cyber threat landscape has become increasing perilous and more sophisticated. Advanced Persistent Threats (APT), botnets, zero-day attacks, and countless malware variants have caused significant monetary damage on a global scale. As the threat landscape has changed, it is not a secret that the manner in which people interact and communicate via the Internet has also changed with social media and other forms of communication, computing, and collaboration. Gone are the days in which a Web browser was used as one-way tool to obtain information from the Internet and interactive information was only exchanged via . Web browsers and customized applications are now the interface for a number of communication channels including Facebook, LinkedIn, Twitter, Skype, and many others. To address the new cyber threat reality and the growing breadth of the cyber environments that need to be secured, organizations are aggressively investing in protective measures. Whether the investments are in security technologies (security tools including software and hardware appliances), security professionals including training & education, certification, or external resources (use of outsourced or managed security services and professional security services), spending on all categories is projected to grow. Despite the aggressive approach to cyber security that many organizations are taking, The 2015 (ISC) 2 Global Information Security Workforce Study reported that more than half of the almost 14,000 security professional respondents believed that their organizations did not improve their positions against security adversaries. Additionally, remediation time following a system or data compromise is lengthening. Frankly, all organizations live in a world of finite resources. Every opportunity needs to be taken to be smarter and more strategic in cyber security investments, improving the yield achieved from such investments. Verizon Enterprise Solutions has delivered a solution that does just that. Essentially, Verizon Enterprise Solutions DBIR Splunk application is an application that can be downloaded from the Splunkbase Web site and allows organizations to work smart and more strategic in applying cyber security. New Product Attributes and Customer Impact Match to Needs The DBIR app for Splunk is currently a Beta release. Verizon is actively updating and enhancing the tool, and will continue to publish updated versions with Frost & Sullivan 3 We Accelerate Growth

4 increased functionality and usability features. The application is an easy-to-use tool that leverages: two powerful tools: (1) the research underlying the annual Verizon Data Breach Investigation Reports, and (2).Splunk data collection and analysis software. The Verizon Data Breach Investigations Report (DBIR) is the cyber security s preeminent source of research on the topic of data breaches. For organizations looking to improve their cyber security posture, the report filters the almost infinite number of possible breach causes to actual, real-world vetted list, allowing organization to focus their cyber security investments, and get maximum return on investments. Splunk produces software for searching, monitoring, and analyzing machine-generated big data. In network security, Splunk is well known for its customizability and usability. As log management and SIEM platforms serve the compliance needs of organizations, security professionals are finding value in using Splunk as a security analytics tool layered on top of SIEM and other data sources. Splunk has a strong reputation for being able to support heavy data loads and has strong application integrations with Hadoop and NoSQL to handle big data. The Verizon DBIR app for Splunk takes the rich breach intelligence from the DBIR and makes it actionable within Splunk, using applied analytics to make focused recommendations for organizations to deter and detect breaches based on real intelligence. -The application contains dashboards and views for the recommendations encompassing credential use, phishing, malware, DNS and Proxy log review, and vulnerability management including: Authentication tracking Credential-based lateral movement Impossible journey VPN connections Data exfiltration flagging through Vulnerable system identification Malicious outbound communication detection Quality The quality of the intelligence is beyond question. The 2015 Data Breach Investigation Report analyzes more than 2,100 confirmed data breaches and approximately 80,000 reported security incidents. Over its eight annual versions, the report addresses more than 8,000 breaches and nearly 195,000 security incidents that have occurred over more than 10 years. Additionally, the DBIR also includes security incidents that do not result in Frost & Sullivan 4 We Accelerate Growth

5 breaches, in order to offer a better survey of the cybersecurity landscape. Verizon is among 70 global organizations that contributed data and analysis to this year s report. Price/Performance Value Much like the Verizon Data Breach Investigations Report, the Verizon DBIR app for Splunk is free. The application can be downloaded with no fees at https://splunkbase.splunk.com/app/2708/. For Verizon, the application is simply part of the public service that Verizon provides in providing breach intelligence. Using the application is not totally without cost. Splunk handles many data feeds out of the box but the application will require some basic configuration work. For example, the user credential monitoring requires that the proper systems are providing the required information to Splunk, certainly not a challenging task but one that needs to be accomplished. At the end of the day, there is not a better value and return on investment anywhere within the security industry. Customer Ownership Experience The choice to use Splunk for the DBIR application was a good one. Common across all Splunk platforms is the concept of operational intelligence: Business insights correlate data traffic and apply business analytics to create alarms. Operational visibility is the idea that applications, endpoint activity, and all data traffic can be monitored and acted upon centrally. Proactive monitoring means Splunk can detect anomalies before pre-set rules are applied. Search and investigation occur in real-time and across multiple platforms. Splunk has a rich constellation of security ecosystem partners. Key apps/partnerships include Splunk for Palo Alto Networks, Splunk for Blue Coat ProxySG, Splunk for F5 Networks, FireEye, Splunk for Symantec Endpoint Protection, Splunk for Juniper SRX firewalls, Oracle Audit Trail, Splunk Add-on for McAfee, etc. Additionally, Splunk has architectural advantages as compared to many SIEM products. Splunk collects raw data feeds easily and does not need custom collectors or parsers. Splunk stores flat files without normalization and is schema agnostic. Splunk s search language creates several advantages including ability to initiate searches over multiple data and file types and advanced correlation and anomaly recognition. One practical example of how the DBIR application leverages the strength of Splunk involves location data. Splunk collects and indexes data from just about any source Frost & Sullivan 5 We Accelerate Growth

6 imaginable, such as network traffic, Web servers, custom applications, application servers, hypervisors, GPS systems, social media, and preexisting structured databases. Splunk handles the ingesting of telemetry data easily, allowing the DBIR application to provide utilities such as impossible journey VPN connection monitoring. Conclusion The creation of complex solutions requires ordinary inspiration. Genius is required for solutions that are powerful yet simple to implement. Verizon Enterprise Solutions DBIR application is genius, creating an easy to implement and use application that applies rich and unparalleled real-world breach research to an organization s unique network environment. The result is actionable intelligence that can make measurable and tangible improvements to an organization s cyber security posture. For its new, innovative, and distinctive DBIR application, Verizon Enterprise Solutions has earned Frost & Sullivan s 2015 New Product Innovation Award. Frost & Sullivan 6 We Accelerate Growth

7 Significance of New Product Innovation Ultimately, growth in any organization depends upon continually introducing new products to the market, and successfully commercializing those products. For these dual goals to occur, a company must be best-in-class in three key areas: understanding demand, nurturing the brand, and differentiating from the competition. Understanding New Product Innovation Innovation is about finding a productive outlet for creativity for consistently translating ideas into high quality products that have a profound impact on the customer. Key Benchmarking Criteria For the New Product Innovation Award, Frost & Sullivan analysts independently evaluated two key factors New Product Attributes and Customer Impact according to the criteria identified below. Frost & Sullivan 7 We Accelerate Growth

8 New Product Attributes Criterion 1: Match to Needs Criterion 2: Reliability Criterion 3: Quality Criterion 4: Positioning Criterion 5: Design Customer Impact Criterion 1: Price/Performance Value Criterion 2: Customer Purchase Experience Criterion 3: Customer Ownership Experience Criterion 4: Customer Service Experience Criterion 5: Brand Equity Best Practice Award Analysis for Verizon Decision Support Scorecard To support its evaluation of best practices across multiple business performance categories, Frost & Sullivan employs a customized Decision Support Scorecard. This tool allows our research and consulting teams to objectively analyze performance, according to the key benchmarking criteria listed in the previous section, and to assign ratings on that basis. The tool follows a 10-point scale that allows for nuances in performance evaluation; ratings guidelines are illustrated below. RATINGS GUIDELINES The Decision Support Scorecard is organized by New Product Attributes and Customer Impact (i.e., the overarching categories for all 10 benchmarking criteria; the definitions for each criteria are provided beneath the scorecard). The research team confirms the veracity of this weighted scorecard through sensitivity analysis, which confirms that small changes to the ratings for a specific criterion do not lead to a significant change in the overall relative rankings of the companies. The results of this analysis are shown below. To remain unbiased and to protect the interests of all organizations reviewed, we have chosen to refer to the other key players as Competitor 2 and Competitor 3. Frost & Sullivan 8 We Accelerate Growth

9 DECISION SUPPORT SCORECARD FOR NEW PRODUCT INNOVATION AWARD Measurement of 1 10 (1 = poor; 10 = excellent) New Product Innovation New Product Attributes Customer Impact Average Rating Verizon Enterprise Solutions Competitor Competitor New Product Attributes Criterion 1: Match to Needs Requirement: Customer needs directly influence and inspire the product s design and positioning Criterion 2: Reliability Requirement: The product consistently meets or exceeds customer expectations for consistent performance during its entire life cycle Criterion 3: Quality Requirement: Product offers best-in-class quality, with a full complement of features and functionality Criterion 4: Positioning Requirement: The product serves a unique, unmet need that competitors cannot easily replicate Criterion 5: Design Requirement: The product features an innovative design, enhancing both visual appeal and ease of use Customer Impact Criterion 1: Price/Performance Value Requirement: Products or services offer the best value for the price, compared to similar offerings in the market Criterion 2: Customer Purchase Experience Requirement: Customers feel like they are buying the most optimal solution that addresses both their unique needs and their unique constraints Criterion 3: Customer Ownership Experience Requirement: Customers are proud to own the company s product or service, and have a positive experience throughout the life of the product or service Criterion 4: Customer Service Experience Requirement: Customer service is accessible, fast, stress-free, and of high quality Frost & Sullivan 9 We Accelerate Growth

10 Customer Impact BEST PRACTICES RESEARCH Criterion 5: Brand Equity Requirement: Customers have a positive view of the brand and exhibit high brand loyalty Decision Support Matrix Once all companies have been evaluated according to the Decision Support Scorecard, analysts can then position the candidates on the matrix shown below, enabling them to visualize which companies are truly breakthrough and which ones are not yet operating at best-in-class levels. DECISION SUPPORT MATRIX FOR NEW PRODUCT INNOVATION AWARD High Verizon Enterprise Solutions Competitor 2 Competitor 3 Low Low New Product Attributes High Frost & Sullivan 10 We Accelerate Growth

11 The Intersection between 360-Degree Research and Best Practices Awards Research Methodology Frost & Sullivan s 360-degree research methodology represents the analytical rigor of our research process. It offers a 360-degree-view of industry challenges, trends, and issues by integrating all 7 of Frost & Sullivan's research methodologies. Too often, companies make important growth decisions based on a narrow understanding of their environment, leading to errors of both omission and commission. Successful growth strategies are founded on a thorough understanding of market, technical, economic, financial, customer, best practices, and demographic analyses. The integration of these research disciplines into the 360-degree research methodology provides an evaluation platform for benchmarking industry players and for identifying those performing at bestin-class levels. 360-DEGREE RESEARCH: SEEING ORDER IN THE CHAOS Frost & Sullivan 11 We Accelerate Growth

12 Best Practices Recognition: 10 Steps to Researching, Identifying, and Recognizing Best Practices Frost & Sullivan Awards follow a 10-step process to evaluate award candidates and assess their fit with select best practice criteria. The reputation and integrity of the Awards are based on close adherence to this process. STEP OBJECTIVE KEY ACTIVITIES OUTPUT 1 Monitor, target, and screen Identify award recipient candidates from around the globe Conduct in-depth industry research Identify emerging sectors Scan multiple geographies Pipeline of candidates who potentially meet all bestpractice criteria 2 Perform 360-degree research Perform comprehensive, 360-degree research on all candidates in the pipeline Interview thought leaders and industry practitioners Assess candidates fit with best-practice criteria Rank all candidates Matrix positioning all candidates performance relative to one another 3 Invite thought leadership in best practices Perform in-depth examination of all candidates Confirm best-practice criteria Examine eligibility of all candidates Identify any information gaps Detailed profiles of all ranked candidates 4 Initiate research director review Conduct an unbiased evaluation of all candidate profiles Brainstorm ranking options Invite multiple perspectives on candidates performance Update candidate profiles Final prioritization of all eligible candidates and companion best-practice positioning paper 5 Assemble panel of industry experts Present findings to an expert panel of industry thought leaders Share findings Strengthen cases for candidate eligibility Prioritize candidates Refined list of prioritized award candidates 6 Conduct global industry review Build consensus on award candidates eligibility Hold global team meeting to review all candidates Pressure-test fit with criteria Confirm inclusion of all eligible candidates Final list of eligible award candidates, representing success stories worldwide 7 Perform quality check Develop official award consideration materials Perform final performance benchmarking activities Write nominations Perform quality review High-quality, accurate, and creative presentation of nominees successes 8 Reconnect with panel of industry experts Finalize the selection of the best-practice award recipient Review analysis with panel Build consensus Select winner Decision on which company performs best against all best-practice criteria 9 Communicate recognition Inform award recipient of award recognition Present award to the CEO Inspire the organization for continued success Celebrate the recipient s performance Announcement of award and plan for how recipient can use the award to enhance the brand 10 Take strategic action Upon licensing, company may share award news with stakeholders and customers Coordinate media outreach Design a marketing plan Assess award s role in future strategic planning Widespread awareness of recipient s award status among investors, media personnel, and employees Frost & Sullivan 12 We Accelerate Growth

13 About Frost & Sullivan Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages almost 50 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit Frost & Sullivan 13 We Accelerate Growth

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