Tjx Security Breach

Case Name: Security at TJX

Problem Statement

How should the new CIO of TJX work to strengthen security around the IT infrastructure to prevent, detect, and analyze security breaches that had previously allowed hackers to steal sensitive data?

Background

1 Describe the company/department

1 History

1 Founded in 1976

2 Operate 8 business under TJX

1 TJ Maxx

2 Marshalls

3 HomeGoods

4 A.J Wright

5 Bob’s Stores

6 Winners

7 Home Sense

8 TK Maxx

3 2400 stores

4 125,000 employees

2 Conditions

1 2006 – 138th on Fortune 500

2 Largest apparel and home fashions retailer in off-price segment

3 $17.4 billion in sales for fiscal year 2006

3 Culture

1 Built on efficiencies, vendor relationships rather than fashion

4 Strengths

1 More than triple the size of closest competitor, Ross Stores, Inc

2 Ability to operate in a low-margin industry and stay profitable

5 Weaknesses

1 IT systems were not up to standards

2 Describe the industry situation

1 Customers

1 Traditional retail shoppers looking for a bargain

2 Span North America and Europe

2 Traditional Competitors

1 Direct

1 Ross

2 Target

3 Kohls

2 Indirect

1 Department Stores (JCPenny, Macy’s, etc)

2 Deep discount stores (Garden Ridge, BigLots)

3 New market entrants

1 Online marketplace

1 Overstock.com

2 Ideeli.com

3 Gilt.com

4 Bluefly.com

4 Opportunities

5 Threats

Key Issues

1 Issue #1: TJX has a subpar security system with multiple failure points

2 Issue #2: TJX will be held financially accountable for distress they have caused the clients and will need to need to set forth a plan to minimize damage to the reputation of their brand(s)

Relevant Areas, Facts, Conclusions

1 Relevant areas for Issue #1

1 Lack of detection systems, electronic or manual

1 When TJX first noticed the issue in Dec of 2006, intrusions had been occurring for at least 16 months,