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The Long Haul: How Cyber Attacks Inflict Lasting Damage on Companies
Manage episode 433141274 series 2911349
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Description:
- Overview of the CDK Cyber Attack: The recent CDK Cyber attack has left a troubling outlook for car dealerships, as reported by stock market research analysts.
- Industry Impact: Analysts indicate a bleak future for the car dealership sector, aligning with previous reports that 60% of small businesses fold within six months after a cyber attack (Inc. Magazine).
- Impact on Car Dealerships:
- Not Likely to Close: While dealerships may not necessarily go out of business, the negative outlook from high-level analysts is concerning.
- Service and Parts Impact: The hardest hit areas will be service and parts departments rather than showroom and sales floors.
- Transaction Frequency: Service and parts transactions are far more frequent (e.g., 40-50 tickets per day) and must now be handled manually due to the cyber attack, potentially causing significant efficiency losses.
- Long-Term Effects: Service delays and parts sourcing issues could result in customers seeking alternatives, leading to potential long-term impacts.
- Broader Implications for Other Industries:
- Software Vendor Risks: Even if your business isn’t directly affected, remember that the CDK attack targeted a software vendor, not dealerships directly.
- Potential Vulnerabilities: Businesses relying on software vendors for platforms, apps, or data collection might be at risk for similar attacks.
- Affected Areas: Consider potential impacts on less obvious areas like payroll, accounts receivable, and inventory management, which could affect long-term profitability and market share.
- Call to Action: If you found this episode informative, explore more videos on our channel for additional insights on related topics and expert advice.
For More Information:
- Access live one-on-one consultations with licensed certified experts in this subject and others.
- We are here to listen to your story, answer your questions, and provide expert advisement on your options.
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