Managing The Digital Firm - Information Management

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Chapter 4 & 51Essentials of Management Information Systems, 6eEthical and Social Issues in Information SystemsLecturer: Dr Richard BoatengEmail: richard@pearlrichards.org

2Class utive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Electronic Business, Electronic Commerce, and the Emerging Digital FirmInternet Business ?To recap .www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Electronic Business, Electronic Commerce, and the Emerging Digital FirmNew Business Models and Value PropositionsInternet Business Models Virtual storefront: Sells physical productsdirectly to consumers or businesses. Information broker: Provides product pricingand availability information; generates revenuefrom advertising or directing buyers to sellers. Transaction Broker: Processes online salestransactions for fee.www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Electronic Business, Electronic Commerce, and the Emerging Digital FirmNew Business Models and Value PropositionsInternet Business Models Online Marketplace: Provides digitalenvironment where buyers and sellers meet Content Provider: Provides digital content, suchas news; revenue from fees or advertising sales Online Service Provider: Provides connectivity;revenue from fees, advertising, or m WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Electronic Business, Electronic Commerce, and the Emerging Digital FirmNew Business Models and Value PropositionsInternet Business Models (cont.) Virtual Community: Provides online meetingplace for people of similar interests Portal: Provides initial point of entry to the Web,along with specialized content and services Syndicator: aggregates content or applications toresell as package to third-party Web siteswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Electronic CommerceCategories of Electronic Commerce Business-to-consumer (B2C): Retailing productsand services to individual shoppers Business-to-business (B2B): Sales of goods andservices among businesses Consumer-to-consumer (C2C): Consumersselling directly to consumerswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Electronic CommerceCustomer-Centered RetailingDirect Sales Over the Web Disintermediation: Removal of intermediarysteps in a value chain, selling directly toconsumers, significantly lowers purchasetransaction costs Reintermediation: Shifting intermediaryfunction in a value chain to a new source, suchas “service hubs”www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Electronic CommerceThe benefits of disintermediation to the consumerFigure 4-2www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Electronic CommerceCustomer-Centered RetailingInteractive Marketing and Presentation Collection of customer information using Website auditing tools less expensive than surveysand focus groups Web personalization technology customizescontent on Web site to individual’s profile andpurchase history Web sites and marketing shorten sales cycle andreduce time spent in customer educationwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

11Ethical and Social IssuesOn collecting and managinginformation

Objectives1. What ethical, social, and political issues areraised by information systems?2. Are there specific principles for conduct thatcan be used to guide decisions about ethicaldilemmas?3. Why does contemporary information systemstechnology pose challenges to the protection ofindividual privacy and intellectual property?www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Objectives4. How have information systems affectedeveryday life?5. How can organizations develop corporatepolicies for ethical conduct?www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Understanding Ethical and Social Issues Related to SystemsA Model for Thinking About Ethical, Social, and Political Issues Ethics: Principles of right and wrong that can beused by individuals acting as free moral agentsto make choices to guide their behavior View shock of new information technology as a“rock thrown into a pond.”www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Understanding Ethical and Social Issues Related to SystemsThe relationship between ethical, social, and political issuesin an information societyFigure 5-1www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Understanding Ethical and Social Issues Related to SystemsMoral Dimensions of the Information Age Information rights and obligations Property rights and obligations Accountability and control System quality Quality of lifewww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Understanding Ethical and Social Issues Related to SystemsKey Technology Trends that Raise Ethical Issues Profiling: use of computers to combine datafrom multiple sources and create electronicdossiers of detailed information on individualswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Understanding Ethical and Social Issues Related to SystemsNonobvious relationship awareness (NORA)Figure 5-2www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Ethics in an Information SocietyBasic Concepts Responsibility Accountability Liability Due processwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Ethics in an Information SocietyBasic Concepts1.Information technologies are filtered throughsocial institutions, organizations, individuals2. Responsibility falls on institutions,organizations, and individuals who choose touse the technology3. In an ethical, political society, individuals andothers can recover damages done to themthrough a set of lawswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Ethics in an Information SocietyEthical AnalysisFive-step Process for Analysis1. Identify and describe clearly the facts2. Define the conflict and identify the higherorder values involved3. Identify the stakeholders4. Identify reasonable options5. Identify potential consequences of theseoptionswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

22 The principles are:The Golden Rule: Do unto others as you would have them do unto you. Immanuel Kant's Categorical Imperative: If an action is not right for everyoneto take, it is not right for anyone. Descartes' rule of change: If an action cannot be taken repeatedly, it should notbe taken at any time. The Utilitarian Principle: Take the action that achieves the higher or greatervalue. The Risk Aversion Principle: Take the action that produces the least harm orleast cost. The ethical "no free lunch" rule: All tangible objects are assumed ownedby someone else unless specifically declared otherwise.www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Ethics in an Information SocietyProfessional Codes of Conduct Codes of ethics: promises by professions toregulate themselves in the general interest ofsociety. Association of Computing Machinery (ACM)“General Moral Imperatives” include honoringproperty rights and respecting privacy.www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Ethics in an Information SocietySome Real-World Ethical Dilemmas Competing values: one set of interests pittedagainst another E-mail monitoring at the workplace Use of new technology to reduce workforce andlower costswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsInformation Rights: Privacy and Freedom in the Internet Age Privacy: Claim of individuals to be left alone,free from surveillance or interference fromother individuals, organizations, or the state. Protected primarily in United States by FirstAmendment, Fourth Amendment, and PrivacyAct of 1974 Today, most U.S. federal privacy laws applyonly to federal government, not to privatesectorwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsInformation Rights: Privacy and Freedom in the Internet AgeEuropean Commission’sDirective on Data Protection (1998) More stringent than the United StatesRequires companies to inform people of data collectionand storageCustomers must provide informed consentDisallows transferring of data to countries withoutsimilar lawsU.S. “safe harbor” developed with U.S. Department ofCommercewww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsInformation Rights: Privacy and Freedom in the Internet AgeInternet Challenges to Privacy Computer systems able to monitor, capture,store communications passing throughMonitoring toolsCookiesWeb bugsSpywarewww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsHow cookies identify Web visitorsFigure 5-3www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsInformation Rights: Privacy and Freedom in the Internet AgePrivacy Protection Tools Managing CookiesBlocking adsSecure e-mail or dataAnonymous e-mailAnonymous surfingwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsInformation Rights: Privacy and Freedom in the Internet AgeEthical Issues Under what conditions should privacy beinvaded? What legitimates unobtrusive surveillance?www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsInformation Rights: Privacy and Freedom in the Internet AgeSocial Issues “Expectations of privacy”, privacy norms. Should people have expectations of privacywhile using e-mail, cellular phones, bulletinboards, postal system, etc.? Do expectations of privacy extend to om WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsInformation Rights: Privacy and Freedom in the Internet AgePolitical Issues Statutes to govern relationship between recordkeepers and individuals Should CID monitor e-mail? Should e-commerce sites maintain personaldata about individualswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsProperty Rights: Intellectual PropertyIntellectual Property Intangible property created by individuals orcorporations Protected under three different legaltraditions: trade secret, copyright, and patentlawwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsProperty Rights: Intellectual PropertyTrade Secret Any intellectual work product used for a businesspurpose; cannot be based on information in publicdomain Protects both ideas in product as well as product itself Applies to software with unique elements, procedures,compilations Difficult to prevent ideas in the work from falling intopublic domain after distributionwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsProperty Rights: Intellectual PropertyCopyright Statutory grant that protects creators of intellectualproperty from having work copied for the life of authorplus 70 years; 95 years for corporate-owned property Computer Software Copyright Act provides protectionfor program code and product copies sold in commerce Does not protect underlying ideas behind workwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsProperty Rights: Intellectual PropertyPatents Grants exclusive monopoly on ideas behind inventionfor 20 years Ensures inventors receive full rewards for labor; butprepares for widespread use by providing detaileddocuments Applies to underlying concept of software Stringent criteria of nonobviousness, originality, andnovelty; lengthy application processwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsProperty Rights: Intellectual PropertyChallenges to Intellectual Property Rights Digital media easy to replicateDifficulties establishing uniquenessCompactness of productProliferation of electronic networks, includingInternet, World Wide WebFile-sharing softwareWeb site construction and framingwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsWho owns the pieces? Anatomy of a Web pageFigure 5-5www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsProperty Rights: Intellectual PropertyDigital Millenium Copyright Act (1998) Implements World Intellectual PropertyOrganization treaty Makes it illegal to circumvent technologybased protections of copyrighted materialswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsProperty Rights: Intellectual Property Ethical Issues: Is there value in protectingintellectual property when it is so easily copiedand distributed? Social Issues: Routine illegal file-sharingcreating society of lawbreakers Political issues: New protection measuresneeded to protect investments made bycreatorswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsAccountability, Liability, and Control Ethical issues: Who is morally responsible forconsequences of use of hardware or software? Social issues: What should society expect andallow of service-providing informationsystems? Political issues: To what extent shouldgovernment intervene, protect serviceproviders and users?www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsSystem Quality: Data Quality and System Errors Ethical issues: At what point shouldsoftware/services be released forconsumption? Social issues: Should people be encouraged tobelieve systems are infallible? Political Issues: Laws of responsibility andaccountabilitywww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsQuality of Life: Equity, Access, and BoundariesNegative Social Costsof Information Technology Balancing power: Key policy decisions stillcentralized Rapidity of change: More efficient marketplacereduces response time to competitionwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsQuality of Life: Equity, Access, and Boundaries Maintaining boundaries: Ubiquitouscomputing weakening traditional boundariesbetween family or leisure and work Dependence and vulnerability: Vulnerable tosystem failures; no standards as with otherpublic-utility technologieswww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsQuality of Life: Equity, Access, and Boundaries Computer crime: Commission of illegal acts throughthe use of a computer or against a computer system Computer abuse: Commission of acts involving acomputer that may not be illegal but are consideredunethical, i.e. spamming Computer forensics: scientific collection and analysisof data held on or retrieved from computer storagemedia to be used as evidence in court of lawwww.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsQuality of Life: Equity, Access, and BoundariesInternet Crime and Abuse SpammingHackingJammingMalicious s.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsWindow on ManagementCan the Spamming Monster Be Tamed?Is spamming an important managementdecision? Why or why not?www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

The Moral Dimensions of Information SystemsWindow on OrganizationsOffshore Outsourcing: Good or Bad?Does offshore outsourcing create an ethicaldilemma? Why or why not?www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Chapter 5 Case StudySecurity Versus Privacy: Does Terrorism Change the Debate?1.Do the increase surveillance power and capability ofthe government present an ethical dilemma? Explainyour answer.2.Apply an ethical analysis to the issue of thegovernment’s use of information technology to ensurepublic safety and citizens’ privacy rights.3.What are the ethical, social, and political issues raisedby the government creating massive databases tocollect personal data on individuals and profile them?www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Chapter 5 Case StudySecurity Versus Privacy: Does Terrorism Change the Debate?4.How effective are electronic eavesdropping andmassive databases as terrorism and crime-preventiontools? Explain your answer.5.State your views on ways to solve the problems ofcollecting the key data the government needs tocombat terrorism without interfering with individualprivacy.www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)

Thank You for Listening Contact: richard@pearlrichards.org Website: www.pearlrichards.org Class Website: wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org)51

Key Technology Trends that Raise Ethical Issues www.ugbsexecutive.wordpress.com WeeK 4 Dr. Richard Boateng (richard@pearlrichards.org) Understanding Ethical and Social Issues Related to Systems

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