Meeting the E-Discovery Challenge:

Information Technology and Compliance at KMCO Gaming

Introduction

Who is KMCO Gaming? Major Players Business Strategy Major Business Issue Smaller Business Issues

Manufacturer in casino gaming systems– Leader in innovation and development

Based in St Louis, MO– Distributed to 28 countries overseas, United States, Canada,

Caribbean, and Latin America

Internal chaos:– Lawsuit against competitor BJH– Sarbanes-Oxley (SOX)– Hurricane Katrina– E-Discovery Project

KMCO Gaming

Major Players

Business Strategy

Business – to – Employee (B2E)/working inward

Major Business Issue

KMCO Gaming has no infrastructure to document communication throughout the company

Smaller Business Issues

Issues between IT & Finance Department Hurricane Katrina insurance claim Lawsuit against competitive firm, BJH US legal requirements with SOX

Possible Solutions

Continue to implement the last phases of the existing E-Discovery plan internally

Hire a consultant to advise and develop a new strategy altogether

Bring in a system integrator to implement existing E-Discovery plan

Continue to implement the last phases of the existing E-Discovery plan internally

Pros

- Cost efficient - Security

- Independent - E-enablement

Cons- Not satisfying needs - Inefficient cabinet system

- Time consuming - Work overflow

- Limited experience - Employee resistance

Hire a consultant to advise and develop a new strategy altogether

Pros

- Technology - Professional expertise

- Economies of scale - Reduce downtime

Cons

- Expensive - Time consuming

- Consultant may not - Loss of decision making

understand KMCO - Loss of all previous effort

Bring in a system integrator to implement existing E-Discovery plan

Pros- Cost efficient - Time efficient- KMCO can manage - Keep resources- Create new policies - Ensure infrastructure can

support recommendations

Cons- No results - No support- Re-train employees - Archiving is expensive- Out of the hands of KMCO

Solution:

Bring in a system integrator to implement existing E-Discovery plan

Why?– Allows KMCO to control project– Frees up IT, Legal, and Manufacturing to

support the Katrina Insurance claim– Ensure’s KMCO is properly covered under

Sarbanes-Oxley Act.

System integrator to implement existing E-Discovery plan

Important Steps prior to implementing existing plan:– Reconvene steering committee to oversee

project .– Select an appropriate system integrator(s)– Perform company audit of all technical

equipment

Phase One: Creating an IT Use Policy Framework

Defining and communicating organization-wide policies including:– Internet use by KMCO employees – Network and IT equipment – Remote access policy – Rules for storage, retrieval, and destruction of

ESI – Procedures to follow when responding to E-

Discovery requests

Phase Two: Assessing & Preparing for Infrastructure

Upgrade – The guidelines from Phase One would

require investments in infrastructure to support ESI including:– Substantial investment in media storage

equipment for archiving data and enhancements to backup technology

– Implementing or upgrading existing VPN infrastructure and security rules

Phase Three: Selecting and Implementing Records

Management Tool New policies and upgrades would allow for

installing tools to manage e-records and allow searching and retrieving records.– E-Discovery Tools – Implementation– Evaluation– Training

Phase Four: Maintenance & Audits

E-Discovery process may need to adapt itself to changes in federal laws and guidelines.

Vulnerabilities in the system need to be continually identified and corrected.

Internal audits that routinely subject the ERM to thorough audits.

Recommended Tools for E-Discovery

I365’s E-Vault Digital Backup– Offered on premise and SaaS

Iron Mountain’s Mimosa E-Discovery Solutions– Email, Sharepoint, and File Archiving

KMCO Gaming

Questions?