Managerial Ethics And Social Responsibility-5
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Chapter12-RegulatingandManagingInformationTechnology.pptxChapter 12
Regulating and Managing Information Technology
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Ch. 12: Key Learning Objectives
12-1 Identifying the various interventions undertaken by governments to regulate technology.
12-2 Exploring how business accesses stakeholders’ personal information and understanding possible limits to this access.
12-3 Understanding the increasing role of e-business in the global marketplace.
12-4 Examining challenges businesses face in managing and adopting new technologies, such as the use of robotics and artificial intelligence, in business operations.
12-5 Assessing the emerging role and responsibilities of the organization’s chief information officer and other organizational functions that are responsible to ensure information security and privacy.
12-6 Understanding the threat of cybercrime, and the magnitude of the costs and possible causes of the increase in cybercrime.
12-7 Identifying business and governments response to combat cybercrime.
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Government Regulation of Technology1
Governments have stepped in to protect individuals and their personal information.
Right to be forgotten: Ask to remove from internet search results some personal information which is believed was damaging.
Governments have protected individuals and companies’ ideas-their intellectual property.
Intellectual property: The ideas, concepts, and other symbolic creations of the human mind.
Protected through a number of special laws and public policies, including copyrights, patents, and trademark laws.
Software piracy: The illegal copying of copyrighted software.
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Government Regulation of Technology2
By 2018, Europe passed the General Data Protection Regulation:
Regulated the processing of personal information of EU residents by an individual, a company, or an organization.
In 1998, the United States passed Digital Millennium Copyright Act:
Making it a crime to circumvent antipiracy measures built into most commercial software agreements between the manufacturers and their users.
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The Role of Technology in Business1
Access to Stakeholders’ Personal Information
Two major market stakeholders targeted by business organizations for the collection of information:
Employees.
Consumers.
The employee-employer relationship is changing due to technological advances.
Example:
Three Square Market.
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The Role of Technology in Business2
Consumers’ shopping habits are a rich source of data for businesses.
Companies tracking big data, including personal meta-data, can pick out specific details about an individuals’ shopping habits, preferences or tendencies.
Big data: Technology gives businesses access to a great deal of information.
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The Role of Technology in Business3
Managers often find that their strong attraction to using big data can be at odds with the protection of individuals’ rights to their own information.
Example: Verizon.
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E-Business
E-business:
Consists of buying and selling goods and services between businesses, organizations, and individuals electronically via Internet-based systems.
E-business revenue has increased at a faster pace than that of traditional, or non-electronic, business.
Omnichannel: the idea that every distribution channel must work together to deliver a unified and consistent customer experience.
Example: Amazon.
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Global E-business Sales Growing
Figure 12.1
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The Use of Robotics and Artificial Intelligence at Work1
Collaborative machines: new breed of machines designed to work alongside people in close settings and changed how many small manufactures did business.
Can replace workers that could be injured from doing the work previously assigned to humans.
Example: Panek Precision used a robot to perform difficult tasks.
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The Use of Robotics and Artificial Intelligence at Work3
Effects of automation on labor:
Threat: Job elimination:
One-half of all jobs could be lost to automation within a two decades (mostly middle-class workers: clerks and bookkeepers).
Unaffected: Safe jobs:
Jobs that appear to be safe from a robotic takeover involve managing and developing people, and work that applies expertise to decision making, planning or creative work.
Creation: New jobs:
The presence of technology might allow low-skilled workers to perform tasks previously assigned only to high-skilled employees.
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The Use of Robotics and Artificial Intelligence at Work2
Artificial Intelligence: the ability of a digital computer or computer-controlled robot to perform tasks commonly associated with intelligent beings.
Examples:
Royal Dutch Shell.
BlackRock.
Autonomous vehicles.
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The Chief Information, Security, Technology Officer
Businesses often entrust the responsibility for managing information technology and its many privacy and security issues to the chief information officer (CIO).
Or, individuals with similar titles: chief security officer or chief technology officer.
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The Roles and Responsibilities of the Chief Information Officer (CIO)
Figure 12.2
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Cybercrime: A Threat to Organizations and the Public1
Cybercrime: criminal activity done using computers and the Internet.
Examples:
Anything from downloading illegal music files to stealing millions of dollars from online bank accounts.
Non-monetary offenses, such as creating and distributing viruses on other computers.
Posting confidential business information on the Internet.
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Cybercrime: A Threat to Organizations and the Public2
Committed by individuals or groups gaining unauthorized access to a business organization through its computer system.
Hackers: Individuals, acting alone or in groups often with advanced technology training, who, for thrill or profit, breach a business’s information security system.
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Why Do Hackers Hack?
From Figure 12.3
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| While hackers may have any number of reasons underlying the motivations for their actions, three of the more common motivations appear to be: |
| 1. Hackers hack to profit from their actions—the financial-incentive motive. |
| 2. Hackers hack in retaliation against action or inaction by a company or government—the retaliation motive. |
| 3. Hackers hack to gain media attention for their political or social viewpoint or to boost their own ego—the seeking media attention motive. |
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Costs of Cybercrime1
In 2016, Hiscox Insurance reported that cybercrime cost the global economy over $450 billion.
The Ponemon Institute stated that:
In the United States, the average cost of a data breach was over $7 million.
Most costs were incurred during intrusion detection and when attempting to recover.
Significant costs were attributed to disruption of the business organization’s computer systems.
Breaches also resulted in regulatory fines, legal costs, and an increase in the average cost for each lost or stolen record containing sensitive and confidential information.
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Costs of Cybercrime2
Ransomware attack: a kind of cyberattack in which malware locks the data on a victim’s computer and demands payment to decrypt the data.
Responsible for 51 percent of all cyberattack incidents in 2017.
Average amount paid by victims of ransomware was $1,077.
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Costs of Cybercrime3
According to McKinsey & Company, companies were struggling with their capabilities to keep up with criminals when it came to cyber-risk management.
As more and more highly visible breaches occurred with growing regularity, most technology executives believed that they were losing ground to cyberattackers.
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Business Responses to Invasions of Information Security
Many businesses have gone to great lengths to build strong defenses to protect information and ensure stakeholder privacy.
Experts encourage companies to develop an incident-response plan for cyberattacks.
These plans compliment the effort to prevent access to information but also focuses on what to do when a breach occurs.
Reduce criminal intrusion of their sites by paying hackers, often called white hatters.
Businesses use the white hatters’ computer skills to identify weaknesses in the company’s information systems.
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Government Efforts to Combat Cybercrime1
Since 2007, representatives from the United States and dozens of European countries have gathered annually for what is known as Data Privacy Day, held annually on January 28th.
To raise awareness and empower people to protect their privacy, control their digital footprint, and escalate the protection of privacy and data as everyone’s priority.
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Government Efforts to Combat Cybercrime2
In 2014, leaders of the North Atlantic Treaty Organization (NATO) ratified a change in the organization’s mission of collective defense.
For the first time, a cyberattack on any of the 28 NATO nations could be declared an attack on all of them.
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Government Efforts to Combat Cybercrime3
The European Union passed the General Data Protection Regulation in 2018.
Applies to all companies that did business in any of the 28 countries that comprised the EU and the UK.
Must disclose promptly when data had been breached.
Additional coordinated efforts by international governmental agencies are needed to better ensure that the threat of cyberattacks are thwarted.
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End of Main Content
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Accessibility Content: Text Alternatives for Images
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Global E-business Sales Growing Text Alternative
The x-axis is labeled years and contains ten year markers. From the left to the right, in one year increments, the years range from 2010 to 2019, inclusive.
The y-axis is labeled sales in billions of dollars. It contains eight markings. From the bottom to the top, these markings read 0, 1000, 1500, 2000, 2500, 3000, 3500, and 4000.
Vertical bars arise from the x-axis and from left to right the global e-business sales data reads as follows:
In 2010, approximately 600 billion dollars.
In 2011, approximately 700 billion dollars.
In 2012, just over 800 billion dollars.
In 2013, approximately 1000 billion dollars.
In 2014, approximately 1100 billion dollars.
In 2015, approximately 1700 billion dollars.
In 2016, almost exactly 2000 billion dollars.
In 2017, very near 2500 billion dollars.
In 2018, approximately 3000 billion dollars.
Estimated for 2019, just over 3500 billion dollars.
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The Roles and Responsibilities of the Chief Information Officer (CIO) Text Alternative
The content in the slide reads as follows:
In a study conducted by the Meta Group entitled the CIO as enterprise change agent, almost half (47 percent) of the CIOs surveyed reported that they have broadened their responsibilities beyond the traditional CIO-only role. Some of these emerging responsibilities include:
Establishing an innovative language to enable everyone throughout the organization to be clear of the objectives, processes, and timetables for any project that involves technology or information.
Providing structure to welcome inventive thinking and creating protocols for testing and reviewing these novel ideas.
Educating others in the organization to help open the eyes of organizational members to what is possible or what is not regarding technological initiatives or information.
Applying marketing knowledge to ensure that innovative ideas reach the proper stakeholders inside and outside of the organization and have a meaningful impact.
Acting as the lead security officer to protect information and data integrity by overseeing all functions of information technology in the organization.
Participating in organization-wide committees and projects to maintain a clear emphasis on the value of information, as well as protect against threats to information.
In the past decade, since the creation of the CIO position within most business organizations, the CIO role has evolved from primarily being focused only on the collection and protection of information to a senior executive role essential to all business functions and operations.
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