Knowledge Base
ECONOMIC ESPIONAGE: An Information Warfare
Perspective
Dr. Myron L. Cramer
Principal Research Scientist
Georgia Tech Research Institute
Georgia Institute of Technology
present address:
Essex Corporation
2000 Windermere Court
Annapolis, Maryland 21401
February 24, 25, 1997
"The Economic Espionage act of 1996" Symposium, Society of Competitive Information Professionals (SCIP), Georgetown University, Washington DC
presented February 24, 25, 1997
What is Information Warfare?
Information Warfare involves achieving and maintaining an information advantage
over competitors or adversaries. Since competitive advantages can impact an
organization's success or failure, it is important to understand the factors
that affect this balance, and to understand the framework created by the new
technologies and the new paradigms.
Elements of Information Warfare
With the increased value of information comes the need to approach it in new
ways. Information Warfare has many aspects. To appreciate these it is
important to discuss Information Warfare from several perspectives which may be
thought of as the constituent elements; these are: information collection,
protection, denial, management, and transport. Together, these define options,
risks, and opportunities; how an organization chooses to implement and
prioritize these elements is its Information Warfare strategy, which will
impact its competitive position.
Information Collection. An organization needs a variety of information
to support is operations. These needs include planning its activities,
executing its plans, monitoring its progress, and reporting its results.
Information collection includes the entry points for information into an
organization from both internal and external sources. Issues include quantity
(completeness), quality (accuracy), and timeliness of this information.
Business examples of collection systems include point-of-sale (POS) systems,
market surveys, government statistics, and internal management data.
Infomation Protection. Once information is collected by an
organization, the next logical consideration is how to protect it. The
vulnerability of the "Information Infrastructure" is widely discussed and
publicized and is one important aspect of protection. Information
protection addresses two types of threats: information compromise
and destruction. Compromise involves a competitor gaining access to
an organization's proprietary data. Destruction involves the loss of these
data (or loss of access to these data) as the result of a hostile attack by an
adversary.
Information Denial. Information denial includes measures
beyond normal protection to specifically target an adversary's
collection systems. There are two types of denial: direct attacks on
the adversary's information systems, and providing misinformation to its
systems to deceive and induce the adversary to take actions that are not to its
advantage.
Information Management. An important element of Information Warfare is
information management. The underlying concept is that with the
increasing value of information in business, a competitive advantage can result
from improved management of this resource. There are many aspects to this
element including the selection and introduction of information technologies
and the methods for controlling data within information systems. The
decentralization of computing and data resources within organizations has
created many issues for corporate data managers, including questions of "Where
is the data?", "Who has it?", and "Which version is the most current?" Other
issues include deciding which data to retain (archive) for future reference,
and how to store these archived data so that they will be readable by future
systems. As an organization's intellectual property exists increasingly in
electronic forms, it is harder to manage using traditional methods (such as
paper records) and may be more easily misplaced, lost or discarded. Automated
solutions are important elements.
Information Transport. An essential element of Information Warfare is
information transport. The speed with which this is done affects the
timeliness of the data availability and therefore the responsiveness of the
organization to situations. Since this responsiveness can be a big factor in
the competitive process, the speed and efficiency of an organization's
transport capabilities can be an important factor in the organization's
survival or failure. Competitive transport systems must be fast, reliable, and
controlled. Transport considerations must be viewed within the overall
Information Warfare perspective, since the same efficiency that facilitates
rapid message and data transportation also may be used by a competitor to
download proprietary data bases in seconds or minutes.
Corporate Strategies
An Information Warfare Strategy is an organization's relative mix of efforts
among the five elements (information collection, protection, denial,
management, and transport); this balance, whether explicitly selected or the
result of separate investment and operational decisions affects the
organization's competitive posture. Significant factors include market
opportunities, likely competitor actions, and current competitive situation.
Some of the areas in which these effects are evident are capital investment and
operations. Incorporating Information Warfare into operational missions
involves many choices. These choices are driven by competitiveness
consideration. The aggressiveness shown by competitors in collecting
information will affect the need for protection and denial. There are many
possible postures an organization can take, each of which reflects the results
of different attitudes toward the Information War. I illustrate these
differences by considering five extreme positions where a single Information
Warfare element is dominant.
Defensive. A heavily defensive posture is characterized by an emphasis
on information protection including significant access-control
and limited external system interconnections. This posture might be
appropriate for a dominant market leader or an organization that benefits from
the status quo. This strategy will have advantages in an environment
containing emerging adversaries who are pursuing strategies to attack the
leader or to change the current situation.
Offensive. The offensive posture is characterized by an emphasis on
information denial including attacks on the market leader. This posture
might be taken by organizations that are dissatisfied by their current standing
and who may be desperate to take down their stronger adversaries.
Quantity. The quantity posture is characterized by an emphasis on
supreme information transport capability. An organization adopting this
posture places its confidence in its ability to move and use massive amounts of
information over large well-established infrastructure. It depends upon the
sheer volume and timeliness of its data to make attacks impractical. This
posture will work best when the value of the organization's information is
widely distributed and is of low sensitivity.
Quality. The quality posture is characterized by an emphasis on
information management. A practitioner of this posture gains its
advantage by its ability to manage its information needs better than its
competitors. Compared with these competitors, its investments may be more
modest, but they are wisely made. It makes better use of less information, and
optimizes its use of modest protection. This posture may have advantages in a
highly competitive, cost-sensitive market.
Sponge. The sponge posture is characterized by an emphasis on
information collection and an insatiable thirst for large amounts of
information. Practitioners of this posture may have adopted a follower
strategy in which they quickly bring products to market based upon the
innovations of others. They gain their competitive advantage by saving in
research and product development. To avoid being left behind, they must
monitor the activities of other more innovative adversaries and survey market
responses so that once they can decide to follow a given initiative, they an
quickly catch up in the marketplace using their previous market presence.
The optimum strategy in any arena depends on the competitor's actions. A more
scientific treatment of strategy analysis is possible through Game Theory. In
a competitive environment, the optimum strategy may depend on what the
competition is doing.
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