Name of Group : - Abdul Hafizh - Muhammad Arief Rasyid

- Ramadhan Wiprayoga - Riezky Wahyu Santosa

Harley-Davidson, Inc. Identifying eBusiness Risks and Related Assurance Services for the eBusiness Marketplace
1. Identify the most significant new business risks facing Harley-Davidson as a result of integrating eBusiness into its supply-chain management system and by allowing suppliers to have access to the companys Intranet (list at least 10 risks) i. ii. iii. iv. v. vi. vii. viii. ix. x. When the internet system getting error, the productivity of company become lower until the system is normal. Suppliers may violate the agreements with Harley-Davidsons (HD) and the information is leaking to competitors. Suppliers may manipulate the system then take advantage of their increased access to HDs purchasing schedules, and also the supplier maybe doing the fraudulent actions. An employee of one of the suppliers may break the job responsibilities that can create a fraudulent action. Other suppliers not chosen may not be ready to do future business if a current supplier drops out of the network. HD or external business partners may have messy procedures for processing and storing information. Switch to an Internet-based system increases the likelihood of hackers breaking into systems. HD or external business partners may lack the resources necessary to integrate new technologies effectively and efficiently. HD may have difficulty relating to technology that there are too many system as well as external partners. The risk of fraudulent transactions can be increased as a result of switching from paper based supply chain management system to an electronic system.

2. For each risk you identified in question number one above, identify a control HarleyDavidson might have implemented to mitigate that risk. i. ii. Requiring that the system be backed up on a periodically. The creation of an internal IT department with a systems administrator who oversees the transfer of confidential information between HD and suppliers and be the supervisor for them. The performance of random audits by an outside company to monitor the use of confidential information by suppliers. Ensuring that adequate separation of duties exists for HD and supplier employees. The use of a dynamic password system and other types of security programs that limit access to the system.

iii. iv. v.

vi. vii. viii. ix.

x.

The implementation of a system where every transaction is stored electronically, with backups, in a secure area. The use of firewalls and such security measures to protect from those attempting to corrupt the integrity of the system. Requiring each suppliers system to be independently audited and approved. Requiring suppliers to stay up to date on current technology by purchasing and maintaining hardware and software that is compatible with the new supply-chain management system. Periodically sending HD personnel to visit suppliers to verify that suppliers are using the system correctly and understanding the information.

3. Given the technology linkages between businesses partners in eBusiness systems, how might an eBusiness system like Harley-Davidsons increase business risks for its business partners? i. Information from HD may not provide reliable forecasts for suppliers to manage their inventories effectively. ii. HD may take advantage of its dominance in the negotiation position of the supplier and the Internet arrangement may increase competitive pressures on suppliers. iii. Business relationships that the partners have with other customers may not good enough because as long as partners use time, energy, and resources to satisfy HD. So they may lose business because they only focused to be HD supplier. iv. Specializing in HD parts may create the need for business partners to depart from business plans and strategies that were once successful. Partners may find that they need to specialize and drop some lines of business in order to produce the quantity of specific parts needed by HD. v. Pressure may increase for suppliers employees in meeting HDs demands on a real-time, on-line basis. Note: HD is Harley-Davidson