Home Depot, Inc. is another company to suffer a security breach. The Home Depot, Inc. is a retailer that sells home improvement products and building materials. The company serves customers with full-service building materials and home improvements that benefits consumers and contractors alike. They also service and sell lawn and garden products. To increase their product lines, they also hire independent contractors to install flooring, roofing, windows, kitchen cabinets, vinyl siding, and other products as possible. They hire professional repairmen, general contractors, remodelers, tradesmen, and other professionals.
In 2011, Home Depot reported to the SEC that they felt that their technology system and process could affect their business. Their software is managed by third-party service providers who conduct their own analysis and manage the transactions and data. The system is compromised and as today, September 2, 2014, Home Depot does have a reported compromise of their consumer credit services. Home Depot, Inc., is now under investigation for a possible breach of customer credit and/or debit card data. Home Depot relied on this third party for the integrity and management of their data. They realized in 2005 that this technology management could cause disruptions or cause the corporation to experience errors.
Home Depot, Inc. changed their supply chain and technology in 2005 with the intent to simplify customer interactions. The goal was to give customers a better retail experience. The idea was to employ new web-based tools and service. Sometimes simplifying a company’s access to information can lead to a lower security which can cause a breach. Home Depot, Inc admitted that they feared that the new software program could fail altogether.
Home Depot, Inc., also feared the new logistics and supply chain software could affect their ability to meet customer’s demands if there were a lot of computer glitches or failure of the software. Today, Home Depot, Inc. had to admit there was a computer glitch of huge proportions that confirmed a breach of consumer data. Other companies were also compromised in the past such as Target Corp.
This breach of security will hurt Home Depot, Inc. as it has hurt other companies. Home Depot, Inc. is a strong public corporation with its stock up 91.78 and strong financials. It seems to be a hard lesson for companies as they try to progress with technology and meet the customer’s demand as quick as possible but it is vital that these breaches are stopped and protect the customers that they strive to serve. Home Depot, Inc. will contact the customers who had their information compromised and will try to salvage customer relations.
Home Depot Inc. (2014). Retrieved from http://www.marketwatch.com/investing/stock/hd/financials/balance-sheet
Home Depot. (2011). Retrieved from http%3A%2F%2Fwww.sec.gov%2FArchives%2Fedgar%2Fdata%2F354950%2F000119312511076501%2Fd1...
Home Depot investigating possible payment card data breach. (2014). Retrieved from http://www.marketwatch.com/story/home-depot-investigating-possibly-payme...