Chart: Root Causes of Data Breache between 3 categories Source: Cost of a Data Breach Report 2024 – IBM Security
The “Cost of a Data Breach Report 2024” highlights that data breach incidents rarely stem from a single cause, but typically originate from three main categories. The chart from the report clearly illustrates the contribution rate of each cause to the total number of global data breach incidents. Specifically:
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Malicious attacks or cybercrime account for up to 55%, making it the most common cause of such incidents.
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IT system failures come second at 23%, reflecting technical issues, misconfigurations, or infrastructure failures.
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Human error makes up 22%, demonstrating the significant impact of operational mistakes, lack of knowledge, or process violations by employees.
1. The Cybersecurity Concern
As internal data volumes, customer information, and critical business documents grow, cybersecurity has become a constant concern.
Just a small vulnerability can expose the entire data system to theft or sabotage. According to a survey by Talker Research, 64% of C-level executives rate cybersecurity as the biggest challenge of the next decade. Moreover, the Global Cybersecurity Outlook 2025 from the World Economic Forum reports that 72% of organizations are seeing security risks increase rapidly year over year.
In reality, back in 2021, Anderson Process, a distribution company, suffered a cyberattack and ransomware incident that affected its headquarters and all branches. This attack disrupted the company’s phone system and took down 197 pieces of hardware, including all computers and servers. Most of the company’s data was encrypted, making it inaccessible across all locations, even on local backup devices. The attackers also accessed and deleted most of the company’s cloud backups, which were non-immutable at the time. They held Anderson Process’s data hostage, demanding around half a million dollars.
Unable to operate, Anderson Process made the decision to migrate its entire data system to a cloud-based ERP platform. The company restored a database backup from the night before the attack and quickly resumed shipping and receiving functions. Within a few weeks after moving to the cloud, Anderson Process was back in operation on a much more secure platform.
2. The IT System Failure Concern
Beyond external cyberattacks, many businesses today face hidden risks from their internal IT systems. As technology infrastructures grow increasingly complex, a single misconfiguration or unexpected hardware failure can trigger severe data loss.
Causes can range from software update failures, server overloads, sudden power outages, to hardware malfunctions. In 2023, many manufacturing businesses in Quebec faced production disruptions due to outdated IT systems that no longer met operational needs. Older software platforms failed to comply with the French language requirement under Law 101. The inability to integrate with production equipment, fragmented data, and frequent system errors led to disruptions in order management, inventory control, and production.
Unable to continue operating on obsolete platforms, these businesses decided to upgrade to Epicor Kinetic. They quickly consolidated their data, standardized processes, and ensured legal compliance. Within just a few weeks of deployment, the new system helped them restore production, manage the entire process on a stable platform, and prepare for international market expansion.
3. The Human Error Concern
According to Mimecast’s 2025 report, up to 95% of data breaches involve human error, with just 8% of employees responsible for 80% of incidents. This leads to internal information or documents being leaked externally, creating vulnerabilities for hackers or even causing indirect financial losses due to incident response and recovery costs.
In 2022, Emirates Metallic Industries Company (EMIC) – one of the largest metal can manufacturers in the UAE – faced data discrepancies in inventory, input errors across warehouse, production, and finance due to manual processes and lack of system integration. Employees frequently took materials without accurate updates in the system, causing production delays and late deliveries to customers.
Manual updates in inventory and accounting led to errors, directly impacting profitability. To standardize processes and reduce human error, EMIC implemented Epicor Kinetic. After adoption, EMIC automated information flow between departments, standardized product code processes, and ensured data consistency across warehouse, production, and finance. As a result, order accuracy, production scheduling, and financial reporting significantly improved, helping the company upgrade its quality management system to ISO 9001:2015 standards.
4. The ROI Concern in Digital Transformation
Digital transformation is not just about buying software tools. It’s a long process involving infrastructure investment, implementation costs, staff training, time, system maintenance, and unforeseen expenses.
According to IDC forecasts, global spending on digital transformation is expected to reach nearly $4 trillion by 2027, with a compound annual growth rate (CAGR) of up to 16% per year from 2022 to 2027. These figures reflect the growing scale and level of investment that businesses need to prepare for. Therefore, the ROI consideration becomes a top priority when leaders evaluate whether to choose local or international solutions, project timelines, and the phases of their digital transformation journey.
In fact, according to Nucleus Research, CMTP achieved a 53% ROI after implementing Epicor CPQ, recovering their initial technology investment within 2.4 years. Previously, CMTP created quotes using separate spreadsheets and manual CAD work, leading to inefficient and inaccurate quoting. After implementing Epicor CPQ, the organization achieved a 66% increase in efficiency, equivalent to over $200,000 in annual time savings.
Additionally, Mercedes Medical implemented Epicor ERP to replace disconnected systems, aiming for a unified view of sales, inventory, and accounting. The project delivered an ROI of up to 605%, with payback in just two months, and an average annual benefit exceeding $2 million.
No business embarks on a digital transformation journey without doubts or hesitation. Behind every decision lies a complex equation of costs, risks, and long-term benefits. But reality shows: the longer you delay, the more likely your business will fall behind as competitors move ahead.
From data security, system stability, reducing human errors, to optimizing ROI – businesses that have adopted Epicor ERP share one thing in common: when choosing the right solution and the right partner, digital transformation becomes not just a cost, but a profitable investment. The only question left is: Will your business continue to delay… or start making a change today?
3S Software Co., Ltd.
To successfully upgrade a business, businesses need an experienced and trusted partner. 3S will be a partner accompanying businesses on their path of development, helping businesses become more comprehensive and increase productivity at lower costs. Along with compliance with the Epicor Signature Project Implementation Methodology, it will help businesses increase production efficiency and improve profits at a very reasonable cost. 3S believes that it will always bring the most satisfaction to customers.
The 5 main solutions of 3S include:
Epicor ERP – Enterprise Resource Planning
Epicor MES – Manufacturing Execution System
BPM XSOL Solution – Business Modeling Solution
ECM DOCSTAR Solution – Digital Content Management Software
Epicor CADLINK solution – The solution allows transferring information from CAD drawings such as AutoCAD, Solidworks to Epicor ERP
More references: BOERS & CO FULL-SCALE AUTOMATION
