Mutandum Case Study
Mutandum Case Study
Project Purpose
The project is based on a fictitious company called Mutandum. Mutandum, a Bio-Tech research company, is seeking solutions to a variety of Information Security related
issues.
Each student (or project team) will be given a particular Information Security issue (or scenario) which is of concern to Mutandum. The objective is to develop an
analysis that “sells” or informs management of the particular issue and proposed resolution. While this is NOT a marketing presentation, it should be convincing. There
is no absolute right or wrong solutions. This is not the point. There are highly effective solutions and there are less effective solutions to a given problem.
However, whatever the proposed solution, it must align with the issue or problem in order to receive credit.
Scenario
Fire Suppression
a. Scenario: Mutandum’s IT group recently discovered that the fire suppression system in the
Tucson site’s main machine room is a wet-pipe system. It was always assumed that the building
designers installed the correct fire suppression for that area. All the company’s offices and
general work areas are on the same wet-pipe system. An accident or false-positive could
devastate and flood the company’s main computer assets.
Mutandum has insurance that will cover such a disaster but it cannot afford any downtime as a
result of an accident.
b. Objective: Propose a solution to this problem. Outline the risks. Outline the necessary players
involved in this situation. Not only is administrative support paramount, but administrative
financial support may also be necessary.
Requirement
finish the following two parts according to the case,
Impact Assessment
Provides a clear assessment of the impact of the security issue to the organization and its mission
Corporate Goal Coupling
Describes how this solution relates to the corporate goals or directions. Solution part posted below.
COUNTERMEASURES AND SOLUTIONS
We have analyzed the vulnerabilities and risks of the current fire suppression system in place at Mutandum Corporation, and have developed an appropriate solution.
Water-Nitrogen Mist System
After thorough research, we have discovered that a Water-Nitrogen Mist System is the best solution for the company. This system works by releasing a mixture of water
and nitrogen in a thin mist, in which the water molecules are less than 10 microns. Mutandum’s current wet-pipe system puts the data center assets at risk of being
damaged and does not effectively suppress fires as well as this new system would. Although the mist is thin, it is extremely effective due to the gas mixture it
contains. One of the most important aspects of this method is that the mist does not damage data center equipment and allows for cost-efficient features to be
incorporated.
Benefits
Water-Nitrogen Mist systems extremely cost efficient and are not dangerous to humans, which means employees are not put at risk with this system in place. This type of
system also does not harm the environment in any way, even though it utilizes a gas mixture in the form of nitrogen. The risk acceptance of implementing this solution
is relatively low due to the low cost and proven effectiveness of the water-nitrogen mix.
Other Recommendations
We also recommend a close-looped recirculation air conditioning system within the data centers to keep the air quality and ventilation at a high level. Maintaining
proper ventilation and pressurization in the data centers is important for both ventilation and fire suppression. Pressurization means that the doors are properly
sealed and do not allow outside ventilation to enter the facility. Lastly, we recommend strategically placing fire sensors throughout the facility to improve the fire
detection at Mutandum. In the data center, fire sensors will be placed above the suspended ceilings and underneath the raised floors. Fire detection is the most vital
component in a system because it allows for the suppression to take place. The effectiveness metrics of this method will be discussed further in the following section.
uCASE STUDY
The Mutandum Corporation PO Box 5599 Tucson, Arizona 85721
Tucson, Arizona (520) 957-3456 (800) 487-1212 La Jolla, California (858) 456-0946 Charlottesville, VA (434) 674-9812
Mutandum uCase Study
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Contents
Introduction .................................................................................................................................................. 3
About Mutandum ......................................................................................................................................... 3
Goal and Mission Statement ..................................................................................................................... 4
Corporate Structure ...................................................................................................................................... 4
About the Board ....................................................................................................................................... 6
Governance .............................................................................................................................................. 7
Corporate and Research Locations ............................................................................................................... 7
United States ........................................................................................................................................ 7
World-Wide Research Partnering ......................................................................................................... 7
Research and Development ........................................................................................................................... 9
Pharmacogenomics .................................................................................................................................. 9
DNA Interactive Drugs ............................................................................................................................. 9
Medi-Genetic-Healing ............................................................................................................................ 10
Recent Drug Development Efforts .......................................................................................................... 10
Pirapalo .............................................................................................................................................. 10
Statum ................................................................................................................................................ 10
Genotola ............................................................................................................................................. 10
Investigative Research and Testing......................................................................................................... 11
Evidence Processing ........................................................................................................................... 11
Paternity Testing ................................................................................................................................ 11
Predictive DNA Profiling.................................................................................................................... 11
Financials ................................................................................................................................................... 11
Technology ................................................................................................................................................ 13
Data Communications Network .............................................................................................................. 13
Desktop Support..................................................................................................................................... 13
Server Infrastructure ............................................................................................................................... 14
IT Equipment Tracking and Retirement ................................................................................................. 15
Future Directions ....................................................................................................................................... 15
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Introduction Introduction
Pharmaceuticals are one of the largest industries in the world. Globally, the market size is equated to over US$450 billion and is expected to grow five percent each
year for the next 10 years due to the aging population in North America, Europe, and Japan. There are approximately 10 major global integrated players that made up
roughly one-third of the global market. The majority of pharmaceuticals are involved in a whole range of activities with the key focus being the production process of
new drugs. On the average, most pharmaceuticals invest 15% of their sales into research and development and aspire to produce “market shaking” drug compounds for
cures. Developing new drugs can take up to 12 years and can cost between $400 million to $1 billion per drug. Estimates show that only one in 10,000 ideas made it from
the initial concept stage to a salable drug.
Drug development is strictly regulated around the world with many countries requiring their own approval process. Pharmaceutical companies protect drugs from imitation
by filing patents, which are valid for up to a maximum of 20 years. This allowed for the legal marketing of the drug, without competition, for the length of the
granted patent.
Once a drug is approved, the developing company could sell it for the remaining time on the patent. Companies, on average, have 10 years of full exclusivity giving
them time to recoup their development costs of a particular drug. Studies show that roughly 1/3 of the new drugs introduced recoup their development costs. Prior to a
patent expiration, other companies will often decide whether or not to produce a generic form of the drug. Competition in the generic drug market is fierce and often
results in a 70-80% loss of sales the first year after patent expiration.
Because of the high development costs and steep decline after patent expiration, pharmaceutical companies are extremely conscious about trade secrets, espionage,
privacy leaks, regulations and the stability of their information technology resources.
About Mutandum About MutandumAbout Mutandum About Mutandum
The Mutandum Corporation is a privately held bio-tech research firm dedicated to better health through furthering the knowledge frontiers and applications of genetics.
Every day, colleagues in more than 6 countries collaborate to research, discover, manufacture and deliver safe and effective solutions to genetic equivocations and
disorders.
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Founded in 1990 by current CEO, Ken Waller, Mutandum pioneers important research projects in a variety of fields. The company tag-line, "Necessary Change for a
Brighter Tomorrow," is both a statement of the company's mission and one which Waller wholeheartedly believes.
"Without embracing change, the human race will be unable to lose sight of the shore and find new horizons for monumental successes in the future." states Waller.
"Furthermore, the company's projects, while controversial to some, will allow humanity to reach a truly brighter tomorrow."
--Ken Waller –
Goal and Mission Statement
Mutandum's goal is to provide a knowledge base and solutions to defeat critical health problems plaguing humanity.
Mutandum will become the world's most valued company in the study of solutions to genetic tolerances and disorders.
Corporate Structure Corporate Structure Corporate Structure
The Mutandum Corporation is based in the United States. The main corporate office is located in Tucson, Arizona with corporate research centers located in Tucson,
Arizona, La Jolla, California, and Charlottesville, Virginia (Figure-1).
Figure 1: Mutandum Corporation Sites
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Mutandum’s top level management consists of various C-level positions that are physically located in the main Tucson office (Figure-2).
Figure 2: Mutandum High Level Structure
Mutandum's main functional corporate structure is depicted in Figure-3. While this structure is representative of Mutandum's main corporate office, necessary elements
of this structure are shadowed in both the California and Virginia locations. Mutandum’s general employee composition is shown in Table-1.
Total Employees
1800
Tucson
990
La Jolla
560
Charlottesville
250
Composition
Professional
1150
Information Technology
60
Administrative
475
Other
115
Table 1: Mutandum Employees
President & CEO
Ken Waller
CDO
Chief Development Officer
Jack Arnold
Director of R&D
Charlottesville, VA
Director of R&D
La Jolla, CA
Director of Affiliate R & D
Affiliate Principal Investigator
CFO
Chief Financial Officer
Renee Aguilar
Director of Finance
Charlottesville, VA
Director of Finance
La Jolla, CA
CIO
Chief Information Officer
Tony Noble
Director of Technology
Charlottesville, VA
Director of Technology
La Jolla, CA
CLC
Chief Legal Counsel
Nathan Middlebrook
CMO
Chief Marketing Officer
Linda Tucci
COO
Chief Operations Officer
Bill Weldon
Director of Operations
Charlottesville, VA
Director of Operations
La Jolla, CA
Advisory Board of Directors
External Audit Committee
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Figure 3: Mutandum Corporate Structure
About the Board
The Advisory Board of Directors is a privately appointed board which assists the CEO in areas of governance, reporting strategic and compliance issues. The following
apply to the Advisory Board of Directors:
Size of Board
10
Average Age of Directors
61
Number of Independent Directors
9
Separate Chairman & CEO
No
Lead Independent Director
Yes
Independent Audit Committee
Yes
Independent Compensation Committee
Yes
Independent Corporate Governance Committee
Yes
Average Annual Board Meetings
9
Annual Board Appointments/Renewal
Yes
Corporate Governance Guidelines Approved by Board
Yes
Outside Directors Hold Meetings Without Management Present
Yes
Annual Board Self-Evaluation Required
Yes
CEO
CDO
Research & Development
Affiliate Research
CFO
Finance
Internal Audit
Budgets
Account Processing
CIO
Information Technology
Systems
Networks
Development
Help Desk
Databases
Records Management
SAP
Security
CLC
Legal
Regulations & Compliance
Risk Management
CMO
Marketing & Sales
Alliance Relations
Public Relations
COO
Production & Logistics
Genetics Testing
Quality Assurance
Administrative Services
Facilities Management
Physical Security
Human Resources
Personnel Security & Safety
Training
Advisory Board of Directors
Audit Committee
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Charters for Audit, Compensation and Corporate Governance Committees
Yes
Charter for Lead Independent Director
Yes
Corporate Compliance Program
Yes
Financial Reporting Committee
Yes
Table 2: Mutandum Board of Directors
Governance
The Advisory Board of Directors assists the CEO in areas of governance, reporting, audit review, and strategy. Mutandum’s C-level officials are responsible for
governance within their respective functional areas. Issues requiring higher level consideration are brought to the CEO and discussed with the Board of Directors.
There is currently no Information Security governance structure within Mutandum.
Corporate and Corporate and Research Locations Research Locations Research Locations Research Locations
The Mutandum Corporation conducts research primarily within the United States with affiliate research arms located around the world.
United States
La Jolla, California, USA
(Research and Development, Production)
Charlottesville, Virginia, USA
(Research and Development)
Tucson, Arizona, USA
(Corporate, Distribution, Research Production and Sales)
World-Wide Research Partnering
Mutandum maintains strategic research affiliations with several U.S. universities (not depicted) as well as 6 international universities. University affiliates are
funded to contribute to create centers which further research in a multitude of health and genetic related areas.
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University of British Columbia, BC
University of Hamburg, Germany
University of Buenos Aires, Argentina
University of Tokyo, Japan
University of Sydney, Australia
Lund University, Sweden
University of Virginia, USA
Washington State University, USA
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Research and Development Research and Development Research and Development
As advances in medical care help more and more people live healthier lives, the need for heightened understanding of genetics, genetic markers, and the interaction of
genetics and drugs becomes increasingly important.
Approximately 95% of the human genome is referred to as "junk DNA" or non-coding DNA because it does not directly code for protein molecules as other DNA does. Some
believe that this non-coding DNA is just an evolutionary artifact that serves no purpose.
Mutandum researchers and scientists are working to discover and develop new ways to treat and prevent life-threatening and debilitating illnesses as well as improve
understanding, wellness and quality of life across a wide range of genetic and therapeutic areas.
Mutandum’s major areas of focus range from drug development, conducts research primarily within the United States with affiliate research
Pharmacogenomics
Mutandum was among the first labs in the world to offer Pharmacogenomics testing. Pharmacogenomics testing involves creating prescription drug reaction profiles that
provide clinically relevant drug-drug and drug-gene interaction information that can help physicians reduce the incidence of adverse drug reactions - a serious medical
problem. It is possible to phenotype or genotype a person with respect to a particular genetic variant, and it is likely that such characterization will be
increasingly useful in individualized drug therapy.
DNA Interactive Drugs
Beyond the exciting frontiers of pharmacogenomics research, Mutandum actively researches, designs and develops geno-pharmaceutical solutions to heart disease, cancer,
and Alzheimer’s disease. Under Federal agreement, Mutandum works jointly with Pfizer, Activery, and Genelex to research solutions to various types of cancer.
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Medi-Genetic-Healing
Mutandum's Medi-Genetic-Healing (or MGH) research has experienced substantial growth and success since 2005. MGH focuses on meditative visualization, healthy foods,
positive thoughts and holistic supplements to quicken the healing process and block aggressive diseases. Mutandum's founder and CEO, Ken Waller, feels that, while
impermanent, the body can heal itself of most afflictions.
"Like drug-induced blockers, we use the power of one's mind to place blocks and extinguish the marker altogether." says Waller.
Recent Drug Development Efforts
Among the numerous efforts to develop drugs which improve the human condition, Mutandum recently announced the following:
Pirapalo
As a drug for genetic breast cancer prevention, Pirapalo targets defects on the BRCA-1 and BRCA-2 genes which put women at risk of developing aggressive cancers of the
breast or ovaries. Pirapalo blocks a protein that produces cancer cells which have a BRCA fault unable to repair their own DNA. Pirapalo causes the cancer cell to die
which retards the growth of the tumor.
Statum
Statum is a novel cancer drug that inhibits blood supply to tumors and destroys cellular reproduction of cancer cells.
Genotola
Genotola is a new drug which blocks and alters genetic markers responsible for Alzheimer's disease. Genotola is currently under test and review.
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Investigative Research and Testing
Muntandum devotes a portion of its corporate resources to assist various national and international governments and agencies in areas of investigative genetic research
and testing.
Evidence Processing
Mutandum assists government agencies with high-profile, extremely complex DNA and crime scene evidence processing.
Paternity Testing
Mutandum performs thousands of paternity related tests each day in conjunction with numerous businesses around the world.
Predictive DNA Profiling
Predictive DNA profiling research is performed in conjunction with several United States research agencies. This research centers on factors that influence DNA markers
in a predictive manner.
Financials Financials
The following table represents a typical financial picture of Mutandum’s income statement and balance sheet. Income Statement (US$ Millions)
Revenue
850
Cost of Goods Sold
-355
Gross Profit
495
Gross Profit Margin
58%
Operating Expenses and other income and expenses
-221
Operating Profit
274
Royalty and other similar income
5
Net Financial income
279
Non-operating Income
17
Non-operating Expenses
-15
Income Before Taxes
281
Income Taxes
51
Net Income After Taxes
230
Net Profit Margin
27%
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Share Statistics (US$ dollar)
Preferred (500K auth / 300K issued)
Par Value per Share
100
Dividends per Share
12
Common (1 Mil auth / 500K issued)
Par Value per Share
50
Dividend per Share
3
Balance Sheet (US$ Millions)
Assets
Current Assets
Cash
30
Net Receivables
15
Inventories
30
Other Current Assets
73
Total Current Assets
147
Net Fixed Assets
85
Other Noncurrent Assets
54
Total Assets
286
Liabilities
Current Liabilities
Account Payable
30
Short-Term Debt
56
Other Current Liabilities
9
Total Current Liabilities
95
Long-Term Debt
98
Other Noncurrent Liabilities
35
Total Liabilities
228
Shareholder’s Equity
Preferred Stock @ Par, $100 30
Common Stock @ Par, $50 25
Additional Paid-In Capital
3
Total Equity
58
Table 3: Mutandum Financials
Average Annual Grant Sponsorship given ($ mil.)
15
Average Annual National and International Research Sponsorship received ($ mil.)
17
Average Annual IT Budget ($ mil.)
80 (10% of revenues)
Average Annual IS-ReleatedBudget ($ mil.)
6.4 (roughly 8% IT budget)
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TechnologyTechnology Technology
Mutandum's information infrastructure is mostly centralized in the Tucson, Arizona location. Both the California and Virginia locations have corresponding information
infrastructures to support their local research and operations
Data Communications Network
Mutandum’s Tucson, Charlottesville, and La Jolla sites each maintain their own internal network infrastructure. All corporate Local Area Networks have 10 Gigabit fiber
backbone networks with CAT-5E (copper) wiring at each desktop. Each desktop location has 2 available network connection ports. The Tucson network contains 42 48-port
switches. The Charlottesville and La Jolla networks contain 10 and 21 48-port switches respectively. All switches are capable of 10/100/1000 Mbits/second connectivity.
Each corporate site has wireless network capability supporting 802.11 a/g/n wireless standards.
Connections between corporate sites are 1-Gigabit/second and provided by Internet Service Providers in each area (Figure-4). Corporate connections between each site
are protected by point-to-point virtual private network technology. Each corporate site has internet-facing firewall protection.
Figure 4: Mutandum Inter-Site Connectivity
Desktop Support
Mutandum’s IT services provides corporate-wide desktop support. Support includes:
? Corporate hardware and software specification
? Configuration and integration with the appropriate corporate Microsoft domain, network or function
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? Physical installation
? Continued troubleshooting, maintenance, and upgrades
? Configuration, installation, and maintenance of printers, scanners and other IT related equipment
Mutandum currently maintains 1,935 desktop and 335 notebook devices. While there are some instances of IPad-type device usage, those figures are not included.
Desktops / Notebooks
Average Device Age (yrs)
Tucson
1,080 / 200
4/2
La Jolla
580 / 70
4/3
Charlottesville
275 / 65
3/2
Total
1,935 / 335
Desktop and notebook hardware is typically purchased in large batch quantities (without operating systems installed) to normalize hardware and compatible driver
issues. A reserve stock of devices (2% desktop and 3% notebook) is maintained for quick replacement and loaner needs.
Currently, Microsoft is the chosen corporate platform for operating systems and compatible software. This greatly simplifies support and licensing issues. Once a
desktop or notebook device is procured, IT services re-image the devices with current supported versions of fully-patched software prior to deployment in the
corporation. By default, all devices are deployed with Microsoft Office, anti-virus/spyware, and VPN client applications. Special software installation needs are
installed on a case-by-case basis once licensing is verified.
Server Infrastructure
Mutandum currently maintains computer machine rooms at each corporate location. Each machine room has raised floors, conditioned power and environmental controls for
cooling, humidity, air filtration and fire suppression. The Tucson site’s machine room is 1,700 square feet. La Jolla and Charlottesville are 1,400 and 700 square feet
respectively. Space usage in each machine room has decreased dramatically due to the reduction of physical server footprint and virtualization efforts.
While Mutandum maintains 60 physical servers (30 in Tucson, 17 in La Jolla, and 13 in Charlottesville), IT services uses these servers to run over 170 VMware-based
virtualized server functions. Most production systems are virtualized. The CIO plans to further convert existing special purpose research environments to the
virtualized environment. Currently, all physical servers are based on DELL M910 blade servers with four 10-core processors.
Mutandum’s disk storage situation is a mixture of Serial Attached SCSI (SAS) and Serial ATA disk drives housed in DELL Compellent Storage solution ISCSI arrays.
Approximate storage allocations at each Mutandum site are as follows:
Site
Critical Data (Terabytes)
Backup & Extra Capacity (Terabytes)1
Total Capacity (Terabytes)
Tucson
75
225
300
1 Backups are performed locally at each site. No remote backups are currently performed.
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La Jolla
50
200
250
Charlottesville
20
100
120
The following is a partial list of server functions maintained within Mutandum:
? SAP /ERP system (Tucson)
? Specialized Research Software (proprietary)
? CAMO Multivariate Analysis system
? Microsoft SharePoint services
? Microsoft Active Directory
? Unix-based Email services
? Web services (both Unix-based Apache and Microsoft IIs)
? Trouble Ticketing System
? File and Print services (Microsoft-based servers)
IT Equipment Tracking and Retirement
Technology related purchases are approved by Mutandum’s IT services prior to acquisition. All IT equipment over a capitalization level of $3,000 is recorded in capital
inventory and assigned a unique asset tracking number. These numbers are attached to the device (if possible) after acquisition and prior to deployment. Capitalized
assets are posted to the inventory of the acquiring division. IT services maintains records of the primary user and location of the capitalized technology related
asset. Because many technology acquisitions fall under the capitalization level, they do not get officially tagged and recorded as inventory. This presents a tracking
problem, for Mutandum, as more low-cost powerful and complex technology is acquired.
Obsolete or damaged equipment is retired through Mutandum’s Facilities Management (FM) area. When IT equipment is retired, IT services flags the item in inventory and
changes its location to FM. The physical assets is transferred to FM for disposal or resell. FM is responsible for ensuring that the asset is removed from Mutandum’s
inventory.
Future Directions Future Directions Future DirectionsFuture DirectionsFuture Directions Future Directions
Mutandum’s CEO and Board of Directors have many desired future directions of improvement designed to improve corporate effectiveness, social responsibility, and
stakeholder value. Among these future directions are:
? Sustainability. Achieve greater organizational consolidation while maintaining resilience. The goal of this desired direction has many interrelated facets. The Board
of Directors feels that a corporate focus on sustainability will benefit Mutandum in several fundamental areas:
o From an intangible perspective, achieving a “green” reputation assists Mutandum in fulfilling its social responsibility as well as improves employee retention and
recruitment.
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o From a tangible IT perspective, Mutandum will reduce its IT footprint and architect a more robust and efficient IT support infrastructure. Mutandum’s infrastructure
virtualization efforts provide a positive step in this direction by reducing the organizations total hardware requirement.
o From a financial perspective, properly directed efforts in sustainability could achieve increased off-balance-sheet financing resulting in improved liquidity ratios.
This is accomplished by reducing IT capital asset requirements and shifting such requirements to outsourced service level agreements.
Potential IT related changes might include:
o Thin Client provisioning for desktop systems
o Increasing data center consolidation
o Improving disaster recovery and business continuity functions
o Using cloud technologies where applicable and appropriate
o Reducing unnecessary information duplication and processes
o Using video conference technologies to communicate within the organization and with affiliates
o Using distance learning for training and awareness
o Enabling a more work-from-anywhere environment
? Information Security. Improve the organization’s information security function in the following areas:
o Develop more accurate key risk indicators (KRI) and tie them to key performance indicators (KPI)
o Information Security Governance, policies and standards
o Data leakage
o Connection and communication between sites and with affiliates
o Single sign-on and role-based authorization
o Data integrity and confidentiality
o Resource availability
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