Analyst Corner

Disconnect Between IT and Loss Prevention

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In conversations with retailers it is obvious the CCTV cameras, traditionally a Loss Prevention asset only, is being co-opted for a variety of different functions.  This is necessitating a much closer relationship between IT and the LP personnel.  Where both of these departments tend to be cost centers in most retailers, the “assets” are being co-opted for profit center activities such traffic counting, customer conversion, and shelf-space compliance.  As such the CIO finds themselves directing traffic and access to these traditional LP assets.  This is the conclusion from some recent research completed by IHL and the result is a disconnect.

What’s funny in some ways for the analysts at IHL is the effectiveness of the IT department in sharing with all other business units the headaches of EMV and how that is sucking up so much IT time they cannot support some of the other business unit requests for changes.  When we looked at the data, the business unit responses for IT, marketing, operations, shows that EMV is far more invasive than the IT department actually shares.  EMV is clearly a mess…but IT has made it the scapegoat too.  We found this funny.

This article from Business Solutions Magazine “Study Finds Disconnect Between IT and Loss Prevention”

And like we have seen in other research, when we talk to retailers PCI/EMV continues to be a noose around their necks from being able to do the security they really want to do.  This is highlighted further in our research report “EMV – Retail’s $35 Billion Money Pit”.