This note introduces cybersecurity what it is, why it is needed, and current practices and solutions. While the broad issue of information security is a concern for governments and individuals, this note focuses on internet-related risks facing private-sector enterprises. Cybersecurity is, or should be, front and center in the minds of leaders at companies that are adopting and applying digital technologies to transform how their companies operate. Those technologies continue to advance in some cases at mind-boggling speed. Think artificial intelligence (AI), cloud solutions, enterprise integration, 5G communication, the Internet of Things (IoT), robotics, and more. While these technologies promise to increase an enterprises efficiencies and deliver better customer services, they also introduce a new business risk: cyber risk. Cyber risk means risk of disruption of an enterprises operations, damage to its reputation, or both, caused by the deliberate actions cyberattacks of outsiders (cybercriminals) or enterprise insiders. Once thought to be the responsibility of an enterprises information technology (IT) department, cybersecurity the prevention of and response to cyberattacks is now every employees responsibility, from hourly workers to the board of directors. At the Darden School of Business, this note is taught in the second-year elective Digital Operations class; it would also be suitable in a module covering cyber risks.

Managers have gone overboard with process standardization. Many processes - such as leadership training or auditing - are more art than science. Imposing rigid rules on them squashes innovation, reduces accountability, and harms performance. Tuck professors Hall and Johnson advise companies to rescue artistic processes from the tide of standardization with a three-step approach. 1. Identify what should and shouldn't be art. Companies need art in variable environments (if, say, raw materials aren't uniform) and when customers value distinctive output. If those two conditions aren't present, mass processes (which eliminate variation) or mass customization (which controls it) will be required. Steinway & Sons, for instance, uses artistic processes to make concert pianos. Not only does the wood used in soundboards differ, but professional musicians appreciate the instruments' unique "personalities." Ritz-Carlton adopted an artistic approach to service after discovering that tightly defined procedures weren't meeting the needs of its diverse customer base. Once employees were allowed to improvise, customer satisfaction improved. 2. Develop an infrastructure to support art. Artists require proper training and metrics that help them maximize value for customers (such as continual customer feedback). Scientific processes can provide a stable platform for artists to work upon, but art and science should never be intertwined. Firms also must institute ways to mitigate failures, which are inevitable with variation. 3. Periodically reevaluate the division between art and science. Managers must ask: What new technologies can make a science of art? Do my customers value variation? How do the costs and opportunities of art and science stack up? Art and science both have important roles to play in business processes. They need not be at odds but must be carefully harmonized.

It's the busiest time of year for North Pole Workshops. Production is in high gear, and the elves are on overtime in the sprint toward Christmas. But an unexpected spike in demand for one toy may leave children around the world disappointed on Christmas morning, whether they've been naughty or nice. At the same time, another toy's popularity threatens to plummet, leaving Santa and his elves faced with the prospect of millions of unloved playthings left in the warehouse. This is the third time in three years that Santa's elves have been caught off guard by a toy's sudden surge in popularity. Earlier in the season, even just a month ago, it would have been possible to find capacity, but now every line is running full tilt. "Oh, it used to be so simple," Santa ruminates. "Wooden blocks, a train set, a doll...Now we have more than a million SKUs....Trends jump across the oceans in an instant. I've asked the elves in the field to go beyond reporting on kids' behavior and start trend spotting. I've invested in software. But still I can't help thinking that one of these days we're not going to be able to do it." Santa and his staff are determined not to disappoint the children, but North Pole Workshops must find a way to improve its response to shifts in demand. Should Santa invest in better forecasting? Or does the answer lie in a more flexible supply chain? Commenting on this fictional case study in R0512A and R0512Z are M. Eric Johnson, the director of the Glassmeyer/McNamee Center for Digital Strategies at Dartmouth's Tuck School of Business; Horst Brandstatter, the owner of Playmobil; Warren H. Hausman, a professor of operations management at Stanford University; and Anne Omrod, the CEO of the consulting firm John Galt Solutions.

It's the busiest time of year for North Pole Workshops. Production is in high gear, and the elves are on overtime in the sprint toward Christmas. But an unexpected spike in demand for one toy may leave children around the world disappointed on Christmas morning, whether they've been naughty or nice. At the same time, another toy's popularity threatens to plummet, leaving Santa and his elves faced with the prospect of millions of unloved playthings left in the warehouse. This is the third time in three years that Santa's elves have been caught off guard by a toy's sudden surge in popularity. Earlier in the season, even just a month ago, it would have been possible to find capacity, but now every line is running full tilt. "Oh, it used to be so simple," Santa ruminates. "Wooden blocks, a train set, a doll...Now we have more than a million SKUs....Trends jump across the oceans in an instant. I've asked the elves in the field to go beyond reporting on kids' behavior and start trend spotting. I've invested in software. But still I can't help thinking that one of these days we're not going to be able to do it." Santa and his staff are determined not to disappoint the children, but North Pole Workshops must find a way to improve its response to shifts in demand. Should Santa invest in better forecasting? Or does the answer lie in a more flexible supply chain? Commenting on this fictional case study in R0512A and R0512Z are M. Eric Johnson, the director of the Glassmeyer/McNamee Center for Digital Strategies at Dartmouth's Tuck School of Business; Horst Brandstatter, the owner of Playmobil; Warren H. Hausman, a professor of operations management at Stanford University; and Anne Omrod, the CEO of the consulting firm John Galt Solutions.

The toy industry faces relentless change and an unpredictable buying public, which creates immense challenges in anticipating best sellers and predicting volume. Like the high-technology industry, toys also suffer from many supply chain ailments, including short product life, rapid product turnover, and seasonal demand. Coupled with long supply lines and ongoing political and economic turmoil in Asia, toy makers face an unusually complex set of risks. Managers in many businesses can learn valuable lessons in managing uncertainty from toy makers. This article describes supply chain lessons focused on reducing risk by actively managing both demand and supply variability. These lessons include product variety strategies based on product extensions, rolling mix strategies, leveraged licensing agreements, coordinated outsourcing strategies, and hedging against political and currency risk by producing in many different countries.