F Unctionality Vs . S Ecurity in Is

This paper reports a study that challenges the widely-held assumption that security and functionality are a tradeoff relationship. Based on a survey sample of more than 9000 French firms, the study finds that higher degrees of system functionality entail higher degrees of security. Rather than sharing a tradeoff relation in which more security investments entail an opportunity cost in terms of less functionality investments, current information systems require an equilibrium between security and functionality. Increasing functionality requires increasing security. This equilibrium applies to functionality in terms of both range (internal integration) and reach (external integration); it also applies to security in terms of both preventative security measures and responsive recovery security measures.