applied case analysis

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Running Head: Applied Case Analysis

Applied Case Analysis: NovaBay Pharmaceuticals, Inc

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Applied Case Analysis 2

INTRODUCTION

NovaBay Pharmaceuticals, Inc. is a iotechnology company head!uartered in "meryville,

Cali#ornia. $he organi%ation &as #ounded in '(() y Ron Na*a#i and it speciali%es in the

production and sale o# synthetic anti+in#ective compounds. $his is an important industry in the

nited -tates as a result o# the etensive demand #or synthetic anti+in#ective compounds in the

healthcare sector. /hile some o# these products are used in the treatment o# chronic &ounds,

others are vital in cosmetic surgery 0Amri1, 23'45. In vie& o# the sensitivity o# pharmaceutical

products, the operations, #unctions and products developed y NovaBay Pharmaceuticals, Inc.

are su*ect to approval y the 6ood and Drugs Administration 06DA5. All companies in this

sector cannot supply their respective products in the mar1et &ithout the approval o# the 6DA.

-tate and 6ederal authorities o# health care also play an important role in the regulation and

monitoring o# companies in the pharmaceuticals industry.

NovaBay Pharmaceuticals, Inc. is pulicly listed at the Ne& 7or1 -toc1 "change, and it

had an enterprise value o# 8).9( million as o# anuary 23'). As a pulicly traded company,

NovaBay Pharmaceuticals, Inc. has a oard o# directors. $his oard has the responsiility o#

ma1ing 1ey decisions at the company.

/hile this organi%ation has een highly success#ul since its estalishment, it has not #ully

eploited the numerous emerging e+commerce opportunities. $he goal o# this analysis is to

demonstrate the signi#icance o# NovaBay Pharmaceuticals pursuing the e+commerce initiative o#

electronic customer relationship management 0"CR;5. $his is an initiative that encompasses the

integration o# modern technology systems that are largely ased on the internet into the

company


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organi%ations such as NovaBay Pharmaceuticals can ene#it immensely #rom the implementation

o# electronic customer relationship management systems into their respective operational

#rame&or1s 0Iyer, 23'=5.

>ne o# the outstanding ene#its o# this e+commerce initiative pertains to the enhancement

o# the overall standards o# customer loyalty. $his &ill e achieved as a result o# the aility o#

"CR; to provide reliale data on the needs, tastes and pre#erences o# customers. -uch data goes

a long &ay to&ards ensuring that the company


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the overall standards o# security are enhanced. Additionally, the alignment o# an e+commerce

initiative to&ards the stipulated standards also goes a very long &ay to&ards the enhancement o#

security. In line &ith these aspects, the proposed electronic customer relationship management

system #or NovaBay Pharmaceuticals, Inc. is not an eception. It is immensely pertinent that this

initiative is #ounded on a reliale and highly e##ective security plat#orm. $his &ill not only

enhance the systemn the other hand, the asence o# an e##ective plan #or the

security o# the e+commerce initiative &ill compromise its impact and overall ene#its on the

company.

Infrastructure

In order #or NovaBay Pharmaceuticals, Inc. to implement electronic customer

relationship management systems, it is inevitale that such systems e supported y the relevant

in#rastructure. $he asence o# the relevant in#rastructure components can have a negative impact

on the implementation o# electronic customer relationship management systems. >ne o# the most

pertinent in#rastructural components #or this e+commerce initiative pertains to a cloud computing

system. Cloud computing is a vital aspect o# electronic customer relationship management

ecause it #acilitates #or the trans#er and storage o# data 0;uther, 23'25. At NovaBay, a

#rame&or1 #or cloud computing &ill go a long &ay to&ards ensuring that the company can

gather and evaluate data #rom customers.

Apart #rom a cloud computing system, another vital in#rastructural component #or the

actuation o# the e+commerce initiative is a central server. $he server &ill e essential in that it

&ill act as the main coordination point #or the electronic customer relationship management


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system. $he server must e highly secured #rom unauthori%ed access. $his is due to the #act that

such attac1s can compromise the privacy o# data or even lead to the disclosure o# sensitive

in#ormation to unintended parties. $he capacity o# the main server to detect and mitigate threats

&ill e an integral aspect o# the security #rame&or1 o# the e+commerce initiative o# electronic

customer relationship management at NovaBay. $he other pertinent in#rastructural re!uirement

#or the initiative encompasses an enterprise resource planning system.

$he enterprise resource planning system is essentially customi%ed so#t&are that captures

and analy%es data #or maimum e##iciency in the di##erent departments or units that comprise an

organi%ation. $he integration o# the enterprise resource planning system into the proposed e+

commerce initiative &ill e immensely ene#icial in terms o# attaining the highest standards o#

operational e##iciency at the organi%ation 0Roertson, 23'@5. $his highlights &hy "RP is an

integral component o# the in#rastructural needs #or the implementation o# electronic customer

relationship management systems at NovaBay. 6rom another standpoint, it is immensely

pertinent #or the e+commerce initiative to e ased on highly e##ective security so#t&are. $his

so#t&are &ill e integrated into the di##erent computers and servers at the company in order to

prevent computer viruses and hac1ing. -uch so#t&are must e updated and monitored regularly

in order to ensure that the stipulated goals #or the security o# the e+commerce initiative are

attained.

Diagrammatic representation of te infrastructure for ECRM at No!a"a#

Infrastructure

Main Servers

Wide area

networks

Software/Oper

ating systems

Enterprise

resource

panning !E"#$

%oca &rea

'etworks


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Information Assets te Compan# $i%% manage

In the actuali%ation o# the e+commerce initiative o# electronic customer relationship

management systems at NovaBay, it is important to highlight the #act that there are various

in#ormation assets that must e managed y the company. $he e##ective management o# these

assets &ill play an integral role to&ards the attainment o# the optimum level o# e##iciency #or the

initiative. /hen such an initiative is not aligned to the eisting in#ormation assets, the overall

level o# e##iciency is compromised. $his accentuates the reason as to &hy it is immensely

pertinent to ensure that the e+commerce initiative o# electronic customer relationship

management systems is aligned to the in#ormation assets.

>ne o# the most notale assets pertains to customer data. $he "CR; initiative &ill

encompass the collection, analysis and interpretation o# data #rom customers. 6or instance, it is

important #or the company to evaluate data aout the pre#erences o# di##erent customers 0-chust,

23395. $his data helps in determining &hether the products and services developed y NovaBay

are consistent &ith the distinctive needs o# the mar1et. $he data collected #rom customers is also

important ecause it &ill serve as the asis #or the #ormulation o# the mar1eting and randing

strategies o# the organi%ation. Apart #rom customer data, another in#ormation asset that &ill e

vital in the actuali%ation o# the e+commerce initiative o# electronic customer relationship

management systems at the company pertains to sales data. $his data is vital ecause it helps in

determining the areas &herey the volume o# sales is high or lo&. In essence, in#ormation on

sales &ill play a vital role in terms o# decision ma1ing. $he #rame&or1 o# in#ormation assets also

encompasses data on competitors. >ne o# the main goals o# the implementation o# the e+

commerce initiative o# electronic customer relationship management systems in any company is


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Applied Case Analysis )

the enhancement o# the overall standard o# competitiveness in the mar1et. $his is &hy

in#ormation aout di##erent competitors and the strategies they are using is immensely pertinent.

Ma&or Securit# Issues' Treats' an( Ris)s te Compan# $i%% face

It is inevitale that the implementation o# an e+commerce initiative in any given

organi%ation is associated &ith di##erent security threats. /hile some threats are critical, others

are less critical. Additionally, some threats might e high technical &hile others are non+

technical. $hese considerations must al&ays e prioriti%ed &hile implementing any e+commerce

initiative. In line &ith this stipulation, the proposed e+commerce initiative o# electronic customer

relationship management systems at NovaBay is not an eception. 6ollo&ing is an evaluation o#

the di##erent security threats, issues and concerns that &ill characteri%e the implementation o# the

initiative at NovaBay.

Most Critica% Securit# Treat- *ac)ing

Hac1ing is one o# the outstanding threats o# e+commerce systems around the &orld. $his

occurs &hen unauthori%ed users access computer or dataase systems o# an organi%ation. $he

proposed e+commerce initiative o# electronic customer relationship management systems #or

NovaBay &ill e characteri%ed y etensive in#ormation assets such as customer data,

organi%ational strategy and competitor in#ormation among others. In the event that this

in#ormation is hac1ed, the security o# the company &ill e immensely compromised 0?umar,

23'25. $he cloud computing systems can also e hac1ed, and this is immensely undesirale as it

&ill undermine the e##ectiveness o# the "CR; system.


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Minima%%# Critica% Treat- Computer +iruses

Computer viruses also pose considerale security threat to the proposed e+commerce

initiative o# electronic customer relationship management systems. -uch viruses can emanate

#rom the internet or even integrated manually into computer servers and systems. $he entry o#

such viruses into the "CR; system o# NovaBay &ould hamper the overall e##ectiveness o# the

initiative.

,east Critica% Treat- Data Manipu%ation

$he manipulation o# data y employees o# the company is the least critical security threat

#or the proposed e+commerce initiative o# electronic customer relationship management systems.

$his &ould occur &hen malicious employees tamper &ith one or more o# the in#ormation assets

constituting the "CR; system.

Ma&or Mecanisms' Too%s an( Measures for Protecting te E-commerce s#stem

In vie& o# the a#orementioned security threats and issues, it is pertinent #or NovaBay to

ensure that the relevant tools, measures and mechanisms are implemented #or the purposes o#

sa#eguarding or protecting the system. >ne o# the most important security tools is a #ire&all. $he

#ire&all should e installed into the di##erent net&or1s comprising the "CR;. $his implies that

all the computers and servers constituting the e+commerce system must e aligned to the #ire&all

0Iyer, 23'=5. $he main role o# the security #ire&all is to protect the proposed e+commerce

initiative o# electronic customer relationship management systems #rom computer viruses and

hac1ing. Apart #rom a #ire&all, another pertinent security tool #or the e+commerce initiative

pertains to an antivirus. $he antivirus so#t&are is a special program designed to identi#y and

loc1 mal&are and computer viruses &ithin the system. 6rom another standpoint, it is also


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massively pertinent #or the organi%ation to ensure that the data or in#ormation is encrypted e#ore

it is stored in a cloud system 0Amri1, 23'45. $he encryption o# data is one o# the most e##ective

&ays in &hich the security o# in#ormation assets can e enhanced. /hen data has een

encrypted, it is immensely comple #or unauthori%ed or malicious users to access it. -uch an

approach &ill hence go a long &ay to&ards oosting the security o# the proposed e+commerce

initiative o# electronic customer relationship management systems at NovaBay.

Cart for te Ma&or Mecanisms' Too%s an( Measures for Protecting te E-commerce

s#stem

PART ": E-COMMERCE ,EA, ISSUES

Te En!ironment in $ic te .usiness $i%% un(erta)e its ne$ initiati!e

$he proposed e+commerce initiative o# electronic customer relationship management

systems #or NovaBay &ill encompass a lot o# privacy issues, digital assets as &ell as relationship

&ith customers. $his is a highly sensitive environment as #ar as legal issues are concerned.

Relationship &ith customers is an aspect that &ill serve as an important component o# the

Tools and

Measures for

security

,ata

Encryp

tion

-irewa Empoyee

.rainin

g

&ntivir

us

softwar

e


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environment that constitutes the implementation o# the "CR; system. $his is due to the #act that

the initiative encompasses interactions &ith customers in order to otain important in#ormation

especially through their #eedac1. $he issue o# relating &ith customers &ill also involve

gathering personal data such as age, location and gender. $his is sensitive personal in#ormation

that might potentially create legal dilemmas #or the company i# the stipulated la&s are not

adhered to 0Iyer, 23'=5.

Apart #rom relationship &ith customers, the environment #or the implementation o# the

proposed e+commerce initiative o# electronic customer relationship management systems also

encompasses digital assets. 6or instance, the uying trends o# certain products serve as a

sensitive digital asset that elongs to the company. $he digital assets also encompass the

so#t&are and computer programs developed speci#ically #or the "CR; initiative.

Pri!ac# Issues te compan# migt face an( te re%e!ant so%utions

6rom the perspective o# legal and pro#essional regulations, it is notale that NovaBay &ill

potentially #ace di##erent privacy issues and concerns. It is immensely pertinent that the relevant

measures and mechanisms are implemented in order to ensure that such issues are addressed

accordingly. $he asence o# such measures &ill have a negative impact on the overall

e##ectiveness o# the implementation process o# the proposed e+commerce initiative o# electronic

customer relationship management systems. >n the other hand, the implementation o# the

relevant measures &ill e vital to&ards aligning the e+commerce initiative to&ards the

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>ne o# the most notale privacy issues pertains to the disclosure o# personal in#ormation

o# customers. It is against the la& #or any company organi%ation to reveal personal in#ormation

o# customers &ithout their consent. In the event that NovaBay discloses such in#ormation

&ithout the o&ners< consent, then the company is liale #or legal action and potential #ines. In

order to address this privacy issue, it is vitally important tor NovaBay to maintain the highest

standards o# con#identiality &hen handling any in#ormation concerning customers 0Roertson,

23'@5. $he company


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&ould e tantamount to the reach o# the eisting la&s as #ar as privacy is concerned. In such

situations, the company must compensate the customer and also ta1e action against the culprit.

Compan#/s (igita% assets an( inte%%ectua% propert# re%ate( to te e-commerce initiati!e

$here are various digital assets and intellectual properties that are strongly related to the

proposed e+commerce initiative o# electronic customer relationship management system at

NovaBay Pharmaceuticals, Inc. >ne o# the most notale digital assets in the organi%ation pertains

to the enterprise resource planning system. $his system is used to ensure that the highest

standards o# e##iciency are attained in all departments. Additionally, the enterprise resource

system is developed in such a &ay that it aligns the company


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E!a%uation of te compan#/s propose( practices for consumer protection an( comp%iance

$it e0isting %ega% regu%ations

NovaBay Pharmaceuticals, Inc. has developed a comprehensive lueprint #or consumer

protection as &ell as the enhancement o# the companyne o# the outstanding tenets o# this lueprint pertains to !uality

assurance. It is notale that NovaBay Pharmaceuticals, Inc. has a !uality assurance department.

$his doc1et is tas1ed &ith the mandate o# monitoring and upholding the highest standards o#

!uality in the development o# the company


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as a plat#orm #or recruiting ne& memers. $his implies that such groups can potentially hac1 into

the dataases o# NovaBay Pharmaceuticals, Inc. and access personal data o# customers and then

use such in#ormation to recruit ne& memers. It is etremely important #or NovaBay

Pharmaceuticals, Inc. to e &ary and a&are o# such threats.

PART C: E-COMMERCE ET*ICS

Socia% En!ironment for te e-Commerce Initiati!e

$he implementation o# the proposed electronic customer relationship management

systems #or NovaBay Pharmaceuticals, Inc. &ill encompass di##erent sociological components.

$he alignment o# the e+commerce initiative to these sociological components &ill go a long &ay

to&ards ensuring that it is success#ul oth in the long+term and also in the short+term. Among the

outstanding sociological components pertains to cultural issues. It is vitally important #or the

company to ensure that it is considerate o# the cultural practices and values o# the targeted

customers. An eample o# a crucial cultural issue encompasses the norms and ehavioral

attriutes o# an individual.

During the implementation o# the proposed electronic customer relationship management

systems, the company must not compromise or undermine such cultural values. Apart #rom

culture, another issue o# sociological signi#icance as pertains to the implementation o# the

electronic customer relationship management systems encompasses religion 0Roertson, 23'@5.

Religion is a strongly sensitive social issue that must al&ays e considered &hen interacting or

communicating &ith customers. $he respective religious values and practices o# customers must

hence e considered y NovaBay &hile implementing the e+commerce initiative o# electronic

customer relationship management systems. 6rom another standpoint, race is also a vital social


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Applied Case Analysis (

issue that comprises the social environment #or the implementation o# the proposed initiative. In

essence, di##erent customers are #rom di##erent races. Ho&ever, it is pertinent #or the company to

employ a nondiscriminatory approach &hen dealing or interacting &ith customers irrespective o#

their races.

$he values and practices o# NovaBay are #ounded on the tenets o# respect and e!uity.

$hese values are vital in ho& the company relates &ith the di##erent sta1eholders including

employees, oard memers and customers. 6or instance, the company does not tolerate

#avoritism or nepotism in any given &ay. $his is a value that goes a long &ay to&ards the

promotion and enhancement o# e!uity.

Potentia% Etica% Ris)s an( Issues tat ma# emerge from te pursuit of te e-commerce

initiati!e

In the pursuit o# any e+commerce initiative or opportunity, it is al&ays essential #or a

company to critically evaluate the ethical ris1s and issues that might potentially arise. $his helps

in the avoidance o# legal prolems &hile also enhancing or strengthening the rand o# a

company. In line &ith this stipulation, the proposed electronic customer relationship management

system #or NovaBay is not an eception 0;uther, 23'25. $he identi#ication o# the various ethical

ris1s and issues that might emerge #rom the implementation o# the initiative helps in the

development and actuation o# the relevant solutions. >n the other hand, the asence o# an

e##ectual interventional mechanism compromises the overall success o# the proposed initiative.

$hese stipulations accentuate the importance o# evaluating the di##erent ethical ris1s and issues

that might arise.


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In the pursuit o# the electronic customer relationship management systems initiative, one

o# the main ethical ris1s that might emerge is the violation o# customer


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Po%icies an( gui(e%ines te compan# $i%% nee( to fo%%o$ in un(erstan(ing te initiati!e

In order to actuali%e the proposed initiative o# electronic customer relationship

management systems at NovaBay Pharmaceuticals, it is vital #or the company to institute speci#ic

guidelines and policies. $hese policies and guidelines &ould serve as important mechanisms #or

governing the implementation o# the initiative &hile also ensuring that ethical ris1s and issues

and addressed.

>ne o# the important policies that must e implemented y the company encompasses

%ero tolerance to discrimination o# any sta1eholder. $his policy is geared to&ards addressing

various ethical issues and ris1s &ithin the #rame&or1 o# actuali%ing the proposed e+commerce

initiative. 6or instance, the policy &ould discourage employees #rom stereotyping customers

ased on their race, s1in color or ethnic ac1ground. In essence, this highlights the #act that the

policy &ould play an instrumental role to&ards the attainment o# the highest standards o#

inclusivity &hen the e+commerce initiative is eing actuali%ed at the company.

Another vital policy that should e adopted y the company encompasses strict #ines #or

employees &ho in#ringe on the di##erent sociological values outlined #or the initiative. $he goal

o# this policy is to promote e!uity, #airness and the highest standards o# pro#essionalism among

employees and other sta1eholders as they are implementing the initiative 0Iyer, 23'=5. $he policy

&ould e instrumental to&ards enhancing the company


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Applied Case Analysis +

their ehavior is concerned. Additionally, it is pertinent to highlight the #act that the guideline on

the code o# conduct &ould also e help#ul in terms o# promoting the re!uired standards o#

pro#essionalism and accountaility among sta1eholders &ithin the implementation #rame&or1 o#

the proposed e+commerce initiative o# electronic customer relationship management systems at

NovaBay Pharmaceuticals, Inc. A code o# conduct can ma1e a ig di##erence in terms o#

determining &hether the proposed initiative #or e+commerce &ill e success#ul or not. $his is due

to the #act that it also serves as a plat#orm #or compliance. In the asence o# such a code o#

conduct, it &ould e immensely comple #or the company to attain the re!uired standards o#

compliance.

In the process o# underta1ing the proposed e+commerce initiative o# electronic customer

relationship management systems at NovaBay, another pertinent guideline re!uired y the

company encompasses the terms and conditions #or engagement &ith customers. $his guideline

&ould speci#y the oligations o# the company to&ards the customers. -imilarly, the guideline

&ould also e comprised o# the speci#ication o# the di##erent oligations o# the customer &hile

engaging or communicating &ith the company. $his is a pertinent guideline that &ould e

immensely ene#icial in the prevention o# numerous ethical ris1s 0Roertson, 23'@5. 6or

instance, some sta1eholders might demand compensation #rom the company a#ter eing as1ed

some !uestions related to electronic customer relationship management systems. -uch an ethical

dilemma can e prevented e##ectively through the development and alignment o# the guideline

to&ards the implementation.

It is also important #or the company to have a guideline that contractually inds all

developers or so#t&are developers involved in the e+commerce initiative. 6or instance, the

so#t&are developers &ould e re!uired to maintain the highest standards o# con#identiality &hen


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handling all systems and data related to the initiative. $his &ould prevent them #rom sharing

in#ormation &ith other parties or individuals. $he main reason ehind this guideline is to

promote privacy and ethicality in the handling o# data assets.

Conc%usion

$he analysis has #ocused on an evaluation o# the legal, ethical and security issues that

may emerge #rom the implementation o# the proposed electronic customer relationship

management systems at NovaBay Pharmaceuticals, Inc. $his is a ma*or company that speciali%es

in the production and sale o# pharmaceutical products across the nited -tates. $he company is

pulicly traded at the Ne& 7or1 -toc1 "change. $he proposed e+commerce initiative is geared

to&ards enhancing ho& the company relates &ith customers, promote customer loyalty and also

gather important data #or strategic planning at NovaBay. 6rom the perspective o# legal issues,

some o# the notale aspect includes potential litigation #rom disgruntled customers. In terms o#

the security issues that might characteri%e the pursuit o# the e+commerce initiative include

unauthori%ed access into the dataase systems, hac1ing and computer mal&are among others. It

is imperative that the company installs #ire&all and also encrypt data in order to deal &ith some

o# the a#orementioned security threats. $he ethical issues that might characteri%e the

implementation process include disregard #or the cultural values o# sta1eholders and coercion o#

customers to give #eedac1 against their &ill.


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Re#erences

Amri1, -. 023'45. -upply chain pro#essionals: A study o# competencies, use o#

technologies, and #uture challenges. International Journal of Operations &

Production Management, 440''5:'@42+'@@=

Iyer, . R. 023'=). Customer Relationship Management in Electronic Markets. ondon:

Routledge

?umar, . 023'25. Customer Relationship Management: Concept.Ne& 7or1, N7: -pringer

;uther, A. 023'25. Customer Relationship Management. Ne& 7or1, N7: -pringer

Roertson, N. 023'@5.Electronic Customer Relationship Management.ondon: Routledge

-chust, P. 023395.ECRM: sing the Internet for Customer Relationship.Berlin: RIN erlag

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