This Document Contains Chapters 12 to 13 Chapter 12: Business Intelligence, Knowledge Management, and Analytics Overview (The title and was changed slightly in the 6th edition, reordering BI to provide additional emphasis of this important and highly current issue.) Managers use diverse sources of information to make sound business decisions. Managers struggle with how to generate, capture, analyze, and disseminate knowledge to make sure the organization learns from past experiences and to minimize reinvention. This chapter explores the basics of business intelligence and analytical practices, as well as knowledge management. These topics continue to evolve rapidly. Discussion Opener: The popularity of the Netflix show House of Cards might provide enthusiastic discussion of the opening case, and questions are provided on the case opening slide at the beginning of the Chapter 12 slides. Suggested answers are in the slide’s Notes section. Alternate Discussion Opener: What are the most important considerations regarding IT project management? How will you determine the appropriate software development methodology – SDLC, agile computing, prototyping, etc.? Key Points in Chapter The introductory case in this chapter is on the analytical processes followed by Netflix in creating House of Cards, the popular Netflix-exclusive show. Netflix uses its notable analytics prowess and large database of all user activities to determine what users want to see. It is generally considered a factor that leads to the success of Netflix. The chapter also provides descriptions of how Caesar’s, Capital One, and the Oakland As also make successful use of analytics. Five ways firms can make use of analytics are: (1) making information more transparent and usable at a frequency that outpaces the competition; (2) exposing variability and boosting performance by collecting and analyzing more transactional and performance data; (3) more precisely tailoring products and services using better-designed segmentation and large data samples; (4) improving decision making through experiments, forecasting and feedback, and just-in-time analysis; and (5) developing the next generation of products and services more quickly using sensor data to collect after-sales information on product usage, performance, and so on. Knowledge management, an emerging discipline, is the collection, organization, and distribution of knowledge assets. Business intelligence describes the set of technologies and processes used to produce actionable information on business performance. Business analytics refer to the use of quantitative data and predictive models to inform business decisions. Intellectual capital and intellectual property are important topics in this chapter. Individuals expect to be compensated for their knowledge work, and their products should be legally protected. However, it is difficult to enforce these rules and laws when the product is easily replicated and distributed. Data, information, and knowledge are often used interchangeably, but have significant and discrete meanings within the knowledge management domain. Figure 11.1 concisely summarizes these differences. Figure 11.2 focuses on three types of knowledge (the feedback loops from the 4th edition have been removed). At the most basic level is knowing-what, which encompasses the facts without fully understanding these facts. Knowing-how is learned through experience and incorporates an understanding of how to do something. Through reasoning it is possible to have the most complete type of knowledge, knowing-why. Knowing-why involves both knowing-what and knowing-how, and often includes a deeper appreciation of the causality of the situation. We often speak of two types of knowledge: tacit knowledge is personal, context-specific, and hard to formalize, while explicit knowledge is easily collected, organized, stored, and transferred through digital means. Most information systems focus on this latter type of knowledge, although more current systems are beginning to acknowledge and incorporate facilities to support social interactions and information sharing among individuals as a key component of the system. There are four main processes to knowledge management. First, the knowledge generation process includes all activities that discover new knowledge. Second, the knowledge capture process includes all the activities that scan, organize, and package the knowledge. Third, the knowledge codification process includes the actions to make the knowledge available to those who need to use it. And finally, the knowledge transfer process includes all the activities that allow the knowledge to be distributed for a variety of uses, and for the absorption of the new knowledge. Tagging allows users to access information more easily through standardized folksonomies of coded data. (XML and XBRL are two examples of tagging that have gained widespread popularity.) Business intelligence and business analytics are discussed in an expanded treatment new to this edition. Common elements of BI include reporting, querying, dashboards, and scorecards. Visual representations of the data are often preferred by managers since they are easy to interpret and they are often aesthetically pleasing. Color-coding the graphs and charts can increase readability. Technological innovations are rapidly incorporating near real-time data analysis, thereby improving decision making on dynamic performance data. However, it is important to stress that an organization’s only sustainable competitive advantage lies with how its employees apply knowledge to business problems. Students also need to understand that KM, BI, and BA are not magic bullets. The chapter turns to the more technical aspects of business analytics. Data repositories store the massive amounts of data in data warehouses, or some form of digital collection that is easily indexed and accessed by authorized users. In order to be useful, the data must first be gathered and cleaned (ETL – Extract, Transform, and Load). The software tools are often complex and robust, including techniques such as data mining, searching for trends and patterns in the data, and clustering, grouping data on some key dimensions. The four categories include: statistical analysis, forecasting/extrapolation, predictive modeling, and optimization. In order for BI and analytics to be institutionalized successfully, managers must create an environment that supports and encourages the use of performance data in decision making. Leaders need to model evidence-based management. A workforce skilled in quantitative analysis techniques is required. Additionally, continued training on new methods is beneficial. Figure 12.6 summarizes the 5 levels of analytical maturity, along with descriptions and sources. Big data is a term commonly used to refer to techniques and technologies that are capable of manipulating vast amounts of data (in the exabyte 1018 and zettabyte 1021 ranges). Normal software applications cannot function at that level; specialized tools are required. This edition introduces a section on the Internet of Things, which is highly relevant to big data given the massive quantities of data generated. The chapter also includes an overview of social media analytics. This class of data is often unstructured and publicly available from social media outlets. Common measures and tools are described (including Google Analytics). Due to the nature of the data, it is difficult to quantify and index for reuse. The postings are often context dependent, leading to rich information on a variety of topics. Social Business Lens: Personalization and Real-Time Data Streams – This vignette could make for an interesting discussion/debate in class. Web site personalization often leads to what students might notice are ads appearing for products you just viewed on an e-commerce site. You might ask questions such as “Do you find it creepy to see ads for products you just viewed on an on-line store?” “What kind of ads do you not mind? What kind do you hate to see?” For example, in my class a male student responded with “digital cameras” for sites that he does not mind, and “cosmetics,” for one he does not care for, ask him: “Would you rather see ads for cosmetics?” The discussion might bridge over to the use of “cookies,” which are described in more detail in the final chapter of the text. Geographic Lens: When Two National Views of Intellectual Property Collide – This vignette highlights the difficulty of protecting intellectual property rights in an international environment. This is an uncomfortable topic, especially in diverse class settings with students of different cultural backgrounds. These values of personal property rights might be hard to convey clearly. The chapter material concludes with a discussion of “caveats” for managers to consider. First, KM and BI continue to be emerging disciplines. Managers must continuously scan for new technologies. Second, making knowledge more visible isn’t always the objective. Managers should be cognizant of competitors seeking information on your business performance. Third, knowledge can be used to develop predictive models and develop future directions. Lastly, it’s all about the people – the analysts with technical skills, the managers making better business decisions, and the employees collecting accurate data at the source. Knowledge sharing is critical to realizing value from these processes. Illustrative Answers to Discussion Questions 1. What does it take to be a successful competitor using business analytics? What is the role of IT in helping build this competence for the enterprise? Answer: Good data (i.e. accurate and timely) is at the core of business analytics. Organizations must have high quality data that can be accessed and examined very carefully and methodically. Data mining is key to finding the “gems” of information. Organizations must be able to quickly turn their data into valuable information that can be used for competitive advantage. The corporate culture needs to be aligned to an analytics environment that includes: an incentive system, metrics to be used to measure the success of initiatives, and appropriate processes that have been developed for using analytics. Also, a skilled work force (experts) is needed. To be truly successful, the managers must set the example (CEO-level sponsorship) and the organization must require that decisions be made using analytics. IT is key to providing the infrastructure to enable and support such a movement. 2. The terms data, information, and knowledge are often used interchangeably. But as this chapter discussed, they can be seen as three points on a continuum. What, in your opinion, comes after knowledge on this continuum? Answer: Some students will say that knowledge is the furthest point on that continuum, as knowledge is the understanding needed to make sense of information. But others may say that wisdom is even further out on the continuum, where wisdom is the extrapolated learning of a number of experiences and a large quantity of knowledge. Note: the continuum was first introduced in the Introduction chapter. This concept is so fundamental that it was repeated in this chapter. After knowledge on the continuum of data, information, and knowledge, the next point could be wisdom. Wisdom represents the highest level of understanding and insight derived from applying knowledge to practical situations, reflecting deep understanding, judgment, and discernment. While knowledge involves knowing facts, concepts, and principles, wisdom encompasses the ability to interpret, evaluate, and synthesize knowledge in context, leading to wise decision-making and effective problem-solving. Wisdom involves not only knowing what to do but also understanding why and when to do it, drawing on experience, intuition, and ethical considerations. It goes beyond mere accumulation of facts or information to encompass a holistic understanding of the world, oneself, and others, guiding actions and behaviors toward positive outcomes and ethical conduct. Ultimately, wisdom represents the culmination of learning, reflection, and personal growth, embodying a deeper level of consciousness and insight that transcends mere knowledge or information. 3. What is the difference between tacit and explicit knowledge? From your own experience, describe an example of each. How might an organization manage tacit knowledge? Answer: Tacit is the knowledge we each, individually, know from our experiences and our thinking. It may not be easily communicated because it may not be something we have ever expressed in words, pictures, or numbers. Explicit knowledge, on the other hand, is the stuff we can point to, write about, or otherwise communicate easily. The trick, of course, is to make tacit knowledge explicit so we can communicate it to others. Each student should have examples of both types of knowledge. Tacit knowledge might be how to throw a baseball, hit a tennis ball, run a marathon, solve a homework problem, etc. Explicit knowledge examples might be the formula for a chemistry project, a financial calculation, the statistics of your favorite sports team, etc. An organization might manage tacit knowledge explicitly, that is by trying to get individuals to make their tacit knowledge explicit then record it in a database, or by acknowledging the difficulty and by creating communities of practice, gurus, and other people-based systems that facilitate discussions and interactions as a means of transferring knowledge. (See Figure 11.5 for Nonaka and Takeuchi’s four modes of knowledge conversion.) 4. How will the Internet of Things change the way managers make decisions? Give an example of a data stream from sensor data that you would like to monitor. Please explain why this would be beneficial to you. Answer: Managers will be able to track, on a real-time basis, product status, location, usage, service schedule, and even end-of-life. This will enable firms to provide better service to customers, and perhaps cross-selling for service or accessories. For instance, you could provide prompt notifications of problems to customers who might not even know there is a problem, notices for scheduled service, or assistance with usage if the tracked usage appears abnormal. Many IoT (Internet of Things) products have data streams that the user might want to monitor. For instance, the ubiquitous exercise wristbands provide daily data about calories burned through exercise. An owner could download the data on a weekly basis to monitor exercise habits. With some IoT products, you would be able to prevent problems or purchase accessories that are made for them. For instance, you could “save” your product before it goes beyond repair. For example, OnStar was able to report to GM any abnormal service issues on the third author’s Chevrolet Volt. 5. How do social media analytics aid an organization? Give an example of a social media data stream and the type of insight that might be drawn from it. Answer: Social analytics capture dynamic, current information about the company and its products, typically from customers and prospects. Knowing the real-time response to products and services gives valuable information to the company. A quick response, validating the feedback and acting upon it, can secure goodwill and market share. Customers might even signal future directions for new products or services, much like crowdsourcing. 6. Why is it so difficult to protect intellectual property? Do you think that the Digital Millennium Copyright Act is the type of legislation that should be enacted to protect intellectual property? Why or why not? Answer: It is difficult to protect intellectual property because information can be reproduced at zero cost, with a perfect copy of the original work. Unlike physical or tangible products, there are no manufacturing costs and essentially no degradation in the reproduction process. Piracy is a huge problem for copyrighted materials (e.g. movies and music). Students are usually strongly opposed to the DMCA. The emotional, less rational response tends to be either, “It’s the industry’s fault for not protecting the material,” “The product is overpriced, and I can’t afford it. So, I had to take it,” or “Everybody’s doing it!” Be sure they understand what is meant by intellectual property. Urge them to look at the DMCA from multiple perspectives: the record companies, the musical artists, and the people who want to hear the music (not always customers). Move from the music industry to the software industry. For those who are planning on becoming software developers, ask them how they would feel about people using their code without paying for it. (There may be a discussion of open sourcing here. Open sourcing is discussed at the end of the preceding chapter.) 7. PriceWaterhouse Coopers. Why do you think the Knowledge Curve is underutilized? Answer: There could be many reasons. Some include: the knowledge is not stored in an easily retrievable form (i.e., people may use different terms), experts may be unwilling to place the knowledge that distinguishes them from others in a repository that can be accessed by anyone in the company (i.e., the reward system may not compensate them adequately for sharing their knowledge), or people may prefer talking with a colleague to retrieving the information from a computer-based system. Ask the employees why they aren’t using the Knowledge Curve. Further Discussion Questions 1. The terms data, information and knowledge are often discussed as a progression. Ask students to identify a number written as such: 4018651000. They will likely have many guesses such as a social security number. Then, ask them to identify the same number if you write it out as follows: (401) 865-1000. They will know it is a phone number. The point is that the data (the raw number) ‘became’ information when it was seen displayed in the proper context. The format provided meaning. However, students only knew this because they had a priori knowledge of what a North American phone number would look like. Engage them in this discussion and then pose the following discussion questions: a.) Does this mean we can only gather data if we know what to look for? If so, where does knowledge come from? b.) What implications does this thought have for actual data collection (marketing data)? For instance – how much a priori knowledge must we have to make data gathering useful? Answer: a) This scenario illustrates the concept that data becomes information when it is interpreted within a specific context or framework of understanding. However, while prior knowledge facilitates the interpretation of data, it is not necessarily a prerequisite for data gathering. Knowledge can be acquired through various means, including education, experience, observation, and experimentation. Thus, while prior knowledge enhances the interpretation and utilization of data, it is not the sole source of knowledge, as new knowledge can be derived from the analysis and synthesis of data itself. b) The implications of this thought for actual data collection, particularly in marketing, underscore the importance of having a foundational understanding of the context in which data is collected and analyzed. To make data gathering useful, a certain level of a priori knowledge is necessary to contextualize the data and extract meaningful insights. However, data collection can also lead to the discovery of new patterns, trends, and insights that contribute to the expansion of knowledge. Therefore, while prior knowledge enhances the effectiveness of data gathering, there is also value in exploring and analyzing data to uncover new knowledge and insights, thus enriching the overall understanding of a given subject or domain. 2. Because students typically have a difficult time applying the knowledge transfer process, a short exercise (15-20 minutes) may be helpful. Break them into small groups and ask them to focus on one organization, preferably an organization where one of the students works. Ask them to identify different experts in this organization. For one of these types of experts describe: a) tacit knowledge they have. b) explicit knowledge related to their jobs and places where this knowledge can be found. c) benefits derived from capturing their tacit knowledge and making it explicit. d) problems in capturing their tacit knowledge. e) suggestions on how to capture their tacit knowledge. Answer: a) One type of expert in the organization could be a senior software developer. Their tacit knowledge may include intuition for solving complex coding problems, troubleshooting skills, and insights into industry best practices. b) The explicit knowledge related to their job can be found in various places such as project documentation, code repositories, technical manuals, and online forums where they contribute and collaborate with other developers. c) Capturing the tacit knowledge of senior software developers and making it explicit can lead to improved collaboration, faster problem-solving, and enhanced decision-making within the development team. By documenting their expertise, the organization can also reduce reliance on individual experts and mitigate the risk of knowledge loss due to turnover or retirement. d) Problems in capturing their tacit knowledge may include difficulties in articulating their thought processes, reluctance to share proprietary techniques or shortcuts, and challenges in codifying experiential learning that is deeply ingrained. e) To capture their tacit knowledge, the organization can implement knowledge-sharing initiatives such as mentorship programs, peer-to-peer learning sessions, and communities of practice where senior developers can share insights, techniques, and lessons learned. Additionally, using collaborative tools and platforms for documenting problem-solving approaches, case studies, and best practices can facilitate knowledge transfer and retention within the organization. Cases Case Study 12-1: Stop and Shop’s Scan it! App This case explains a company’s use of convenient, time-saving, self-scanning technology for customer use, and the added benefit of data analytics to improve business decision making. Discussion Questions 1. What is the benefit of the Scan It data to Stop and Shop? What are some of the questions the company could answer about its customers? Answer: Stop & Shop received multiple benefits from their new application. First, their customer loyalty increased. Second, the customers bought more products, encouraged to make purchases based on the special offers directed to them. Third, their customer base increased through word of mouth advertising. The data allowed the company to manage its inventory and to direct special offers to customers based on purchasing history. They can answer questions such as: what do my customers want to buy? What compatible products can I offer for cross-selling opportunities? What possible up-selling opportunities might there be? Students should think creatively about the uses of customer data. 2. How would you assess the level of capabilities of Stop & Shop’s use of analytics? What might the company do differently with the data to gain more value? Answer: Reference Figure 12.6, “Analytical capabilities levels.” Answers may vary, but the students should be able to explain their decision based on the information presented in the text. The Stop & Shop data is collected dynamically in real-time. It’s possible to gauge them as Level 4: Predictive, since their analytical tools can process the data and provide predictions and the information can be viewed from an enterprise perspective. To move up to Level 5: Prescriptive, Stop & Shop could integrate the Scan It! system with other operational systems to gain the most from the data collected. The inventory management system could automatically re-order based on actual sales. Even employee scheduling could be linked into the database and adjust employee hours based on predictive information. To be more creative, the system could be linked to external event calendars to help Stop & Shop anticipate uncommon demand for specific products (e.g. Gatorade for a basketball tournament in the town). Encourage creative brainstorming. To assess Stop & Shop's level of capabilities in using analytics, several factors can be considered, including the variety, volume, velocity, and veracity of data sources utilized, as well as the sophistication of analytical techniques and tools employed. Additionally, evaluating the integration of analytics into decision-making processes, the extent of data-driven insights generated, and the effectiveness of action taken based on analytics-derived insights can provide insights into the company's analytical maturity. Stop & Shop could enhance the value derived from data by focusing on several areas, such as improving data quality and accuracy, expanding data sources to include external sources and unstructured data, leveraging advanced analytics techniques like predictive modeling and machine learning for more accurate forecasting and personalized recommendations, fostering a data-driven culture throughout the organization, and investing in talent development and training to build analytical capabilities across departments. Additionally, establishing clear objectives and KPIs for analytics initiatives, fostering collaboration between business and analytics teams, and continuously evaluating and iterating on analytics processes and methodologies can further optimize the use of data and unlock additional value for Stop & Shop. 3. What is the benefit of Scan It! for the customers? What concerns might shoppers have about their privacy? How would you advise Stop & Shop management to respond to these concerns? Answer: Some students will find it obvious that shoppers would save time, avoid checkout lines, and make decisions on the spot based on their increased awareness of how the total bill is shaping up. Regarding privacy, shoppers might want to be assured that the data was being protected and not shared in ways they weren’t told about in advance. Also, databases are often sold to external 3rd parties that use the data to spam the customers with unwanted products and services. That is a huge imposition and annoyance. Stop & Shop management should provide privacy assurances and post the data use policies in the store. They should also have a webpage, blog, and/or social media site to explain how they protect customer data. They could invite customer feedback, and respond honestly to questions. The benefit of Scan It! for customers is the convenience and efficiency it offers in the shopping experience, allowing them to scan items as they shop, track their spending, and expedite the checkout process. However, shoppers may have concerns about their privacy, particularly regarding the collection and use of their personal shopping data, such as purchase history and behavioral patterns. To address these concerns, Stop & Shop management should prioritize transparency and data security, clearly communicating their privacy policies and practices to customers, including how their data will be collected, stored, and used. They should provide opt-in mechanisms for data collection, allowing customers to control the use of their personal information and offering incentives for participation to enhance trust and willingness to engage with the Scan It! service. Additionally, implementing robust data encryption and security measures, ensuring compliance with relevant privacy regulations, and offering options for anonymizing or deleting personal data upon request can further reassure customers about their privacy rights and protections. Mini Case 12-2: Business Intelligence at CKE Restaurants Discussion Questions 1. How does the BIS at CKE add value to the business? Answer: CKE’s CPR analyzes a great amount of information: 44 factors from each of its stores. The massive amounts of data would be difficult to analyze without data mining. By analyzing some of these factors in juxtaposition, data mining uncovers previously unknown relationships related to buying habits and potential new products such as Monster Thickburger. The results are used to identify trends and areas where the company can cut costs. Chasney, the CIO, says the results are only noise if they don’t report important information or enable good decisions. 2. What are some tips for developing and using the knowledge management system described in the case? Answer: The designers of CPR focused on providing managers with insights, not just “mountains of data.” CPR provides a context that is meaningful for managers for analyzing the information generated by the system. The designers of the system started with decision-making processes to understand how executives made decisions and the information that they needed for these decisions. Then the designers studied the preferred formats of these decision makers. They found that different decision makers wanted different information in different formats. For instance, the COOs wanted help in exposing business opportunities, while the CEO wanted to know what caused changes in sales. The system was designed to be flexible in providing different types of information. The designers of the system focused on what information could be provided, not what information was currently provided. 3. Was the introduction of the Monster Thickburger a good idea or an example of information leading to a wrong decision? Answer: All indications are that this was a good decision, at least for the short term. Sales clearly are up and the Monster Thickburger is received well by Hardee’s customers. CKE’s CPR provided enough information to ensure that the burger is priced to make a good profit. Given the focus on health consciousness in the US, the decision to sell the Monster Thickburger may be viewed as counterintuitive. Yet CKE’s CPR helped management realize the potential of selling Monster Thickburgers. In the long run, the Monster Thickburger may lead to a negative image of Hardee’s as a fast food provider that ignores the health of its customers, similar to that experienced by McDonald’s. They will need to continue to monitor sales and trends to anticipate social changes affecting revenue. (CKE might develop a marketing campaign similar to McDonald’s current ‘Under 400 Calories’ advertising message.) Supplemental Cases Prediction Markets at Google, Coles, P.A., Lakhani, K.R., and McAfee, A. Harvard Business School, 21 pages, 607088, 2007 (setting: California) Google has used predictive analytics over eight quarters of operation. They are now looking for ways to increase participation in the market and to find new uses for the predictions. A Strategic Approach to Knowledge Management, Perrott, B.E. Business Horizons, Vol. 50, pp. 523-533, 11 pages, BH257, 2007 (setting: Health Care Industry) This article presents a new model, or paradigm, for knowledge management. The authors offer a knowledge process model to guide future discussion and research. Supply Chain Management at Wal-Mart, Johnson, F.P. Richard Ivey School of Business, 15 pages, 907D01, 2008 (setting: U.S./Retail) This case focuses on Wal-Mart’s use of SCM to optimize inventory management. Competitors have copied many of the processes that created a competitive advantage in the past. Wal-Mart needs to develop new practices to regain first mover advantage. McKinsey and the Globalization of Consultancy by Geoffrey Jones & Alexis Lefort. Harvard Business School Publishing, 2005 (15 pages) Considers McKinsey's strategy during the first stage of the globalization of the management consultancy industry. IDEO: Service Design by Manuel Sosa. INSEAD. 2005; (25 pages) This case describes how IDEO adapts its famed innovation process (developed to design new products) to the particularities of services and their design. The case series describes four service design projects to show how IDEO has developed and codified a series of design methods, which constitute a toolbox from which teams can pick and choose depending on the innovation project. Intelliseek by Luc Wathieu & Allan Friedman. Harvard Business School Publishing. 2005; (22 pages) This "marketing intelligence" company has been successful selling its reports to the car industry, but finds it difficult to achieve client retention. New initiatives are suggested: (1) to arrange data in problem-specific templates so that it is more "actionable" and (2) to develop industry benchmark metrics against which the metrics can be compared in a more informative manner. IBM's Knowledge Management Proposal for the Ontario Ministry of Education by D. Meister & K. Mark. Richard Ivey School of Business. 2005 (14 pages) The knowledge management consultant for IBM Canada's Ltd. business consulting service was preparing for a meeting with Ontario's Deputy Minister of Education. The purpose of the meeting was to secure top-level support for an early-stage Knowledge Management program at the ministry. Knowledge Management at Ernst & Young by Miklos Saryary and Ann Marie Chard, Stanford University This case reviews a six year effort to build a firm-wide KM system. The case raises the following points for discussion: the definition of KM, the impact of KM on the consulting industry, the use of KM to build competitive advantage, the criteria used to evaluate a KM, and the process for building a KM system. Buckman Laboratories (A) by William Fulmer, Harvard Business School, Case number 800160 This case explores the implementation of a cutting-edge knowledge management system in a mid-size, specialty chemical company. This case also examines the challenge of building virtual trust in a global organization. The case has a video available showing the President of Buckman Laboratories talking with an Executive Education class at Harvard. The case can stand alone, without the video. SAFECO: Leveraging the Web in a Knowledge-Based Service Industry, Debabroto Chatterjee and Leonard M. Jessup, Idea Publishing Group, 17 pages, IT5578, (setting: U.S.) This case examines how SAFECO, a large corporation in the insurance and financial services industry, is strategizing for and implementing technologies to exploit the Web. Enterprise Information Portal Implementation: Knowledge Sharing Efforts of a Pharmaceutical Company, Allison Manning and Suprateek Sarker, Idea Publishing Group, 17 pages, IT5632, (setting: U.S.) This case study provides a detailed account of a portal implementation initiative for enabling knowledge sharing in a pharmaceutical company. Specific issues discussed include selection of a portal, justification for this selection, challenges in organizing and linking documents, as well as the social and behavioral issues influencing the implementation. Spreadsheets as Knowledge Management Documents: Knowledge Transfer for Small Business Web Site Decisions, Stephen Burgess and Don Schauder, Idea Publishing Group, 17 pages, IT5686, (setting: Australia) This case describes the creation of a practical decision support tool (using a spreadsheet) for the initiation and development of small business Websites. Using selected literature from structuration theory, information management, and knowledge management, decision support tools are characterized as knowledge documents (communication agents for explicit knowledge). Understanding decision support tools as knowledge documents sheds light on their potentialities and limitations. Supplemental Readings/Articles Agarwal, Ritu, and Vasant Dhar. "Editorial—big data, data science, and analytics: The opportunity and challenge for is research." Information Systems Research 25.3 (2014): 443-448. Riggins, Frederick J., and Samuel Fosso Wamba. "Research Directions on the Adoption, Usage, and Impact of the Internet of Things through the Use of Big Data Analytics." System Sciences (HICSS), 2015 48th Hawaii International Conference on. IEEE, 2015. Salehan, Mohammad, and Dan J. Kim. "Predicting the Performance of Online Consumer Reviews: A Sentiment Mining Approach to Big Data Analytics." Decision Support Systems (2015). Dubey, Rameshwar, and Angappa Gunasekaran. "Education and Training for Successful Career in Big Data and Business Analytics." Industrial and Commercial Training 47.4 (2015). Someh, Ida Asadi, and Graeme Shanks. "How Business Analytics Systems Provide Benefits and Contribute to Firm Performance?." 23rd European Conference on Information Systems (ECIS 2015). 2015. Shiau, Wen-Lung. "Exploring the Intellectual Structure of Knowledge Management: A Co-citation Analysis." International Journal of Advancements in Computing Technology 7.1 (2015): 9. Baesens, Bart, et al. "Transformational issues of big data and analytics in networked business." MIS Quarterly 38.2 (2014): 629-631. Goes, Paulo B. "Editor's comments: big data and IS research." MIS Quarterly 38.3 (2014): iii-viii. Baesens, B., Bapna, R., Marsden, J. R., Vanthienen, J., & Zhao, J. L. (2014). Transformational issues of big data and analytics in networked business. MIS Quarterly, 38(2), 629-631. Wang, Sheng, Raymond A. Noe, and Zhong-Ming Wang. "Motivating Knowledge Sharing in Knowledge Management Systems A Quasi–Field Experiment." Journal of Management 40.4 (2014): 978-1009. Michelman, Paul. “Methodology: Making Idea Sharing Pay Off.” Harvard Business Review, 83(1) 2005. Reich, R. B. “Plenty of Knowledge Work to Go Around.” Harvard Business Review, 83(2) 2005. Ruggles, R. “The State of the Notion: Knowledge Management in Practice.” California Management Review. 40(3) 1998. Reports survey results about how firms are actually managing knowledge, what they think they could or should be doing, and what they feel are the greatest barriers they face in their efforts. Alavi D. & D.E. Leidner. “Review: Knowledge Management and Knowledge Management Systems: Conceptual Foundations and Research Issues.” MIS Quarterly, 25 (1) 2002. Provides a review and integration of knowledge management literature. Colins, H.M. “Humans, machines, and the structure of knowledge.” SEHR, July, 4(2) 1995. http://www.stanford.edu/group/SHR/4-2/text/collins.html Discusses different types of knowledge and what can and cannot be transferred by machines. Deckmyn, D. “U.K. Firm Hopes to Cash In On Knowledge Management.” Computerworld, June 28, 1999. Article about British energy company BG PLC's knowledge management project, which started as a homegrown system, but is now marketed to others.
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Garner, R. “Please Don't Call it Knowledge Management!” Computerworld, August 09, 1999. Five years ago, a ballroom full of pioneers and enthusiasts flocked to Boston to discuss the hot new concept of knowledge management. Today, those disillusioned pioneers have a pointed message. http://www.computerworld.com/cwi/story/0,1199,NAV47_STO36610,00.html Ambrosino, J. “Knowledge Management Mistakes.” Computerworld, July 3, 2000. http://www.computerworld.com/cwi/story/0,1199,NAV47_STO46693,00.html. Experts reveal five pitfalls to avoid when starting down the knowledge management path. Anthes, G. “Charting a Knowledge Management Course.” Computerworld, August 21, 2000. http://www.computerworld.com/cwi/story/0,1199,NAV47_STO48722,00.html Great article about the knowledge management activities in the US Navy. Fickel, L. “Know-It-Alls.” CIO Magazine, November 1, 2001. http://www.cio.com/archive/110101/knowitall.html To streamline customer service, Marconi employed a system to facilitate knowledge sharing among its tech support personnel. In the process, the roles of tech agents changed dramatically. Books Davenport, T. & J. C. Beck. The Attention Economy: Understanding the New Currency of Business. MA: Harvard Business School Press, 2001. Sutton R. & J. Pfeffer. The Knowing-Doing Gap: How Smart Companies Turn Knowledge into Action. MA: Harvard Business School, 2000. Von Krogh, G. Kazuo Ichijo, & Ikujiro Nonaka. Enabling Knowledge Creation: How to Unlock the Mystery of Tacit Knowledge and Release the Power of Innovation. London: Oxford University Press, 2000. Davenport, T. & L. Prusak. Working Knowledge, MA: Harvard Business School, 2000. Liebowitz, J. Building Organizational Intelligence: A Knowledge Management Primer.
NY: CRC Press, 1999. Tiwana, A. Knowledge Management Toolkit, The: Practical Techniques for Building a Knowledge Management System. NJ: Prentice Hall, 1999. Koulopoulos, T.M. & Richard Spinello (Contributor), Wayne D. Toms. Corporate Instinct: Building a Knowing Enterprise for the 21st Century. NY: John Wiley & Sons, 1997. Nonaka, I., Hirotaka Takeuchi, & Hiro Takeuchi. The Knowledge-Creating Company: How Japanese Companies Create the Dynamics of Innovation. London: Oxford Univ. 1995. Websites: http://www.microsoft.com/en-us/bi/default.aspx Microsoft’s BI webpage presenting the portal for this product. http://www.sas.com/technologies/bi/ SAS product description and links to BI and Analytics product offerings. http://www.oracle.com/us/solutions/business-analytics/overview/index.html Oracle’s BI and Extreme Analytics page, with links to more information. http://www.sap.com/solutions/analytics/business-intelligence/index.epx SAP’s solution for Business Intelligence. http://www.brint.com/km/ Knowledge Management Portal at Brint.com, The BizTech Network This portal is a virtual library on KM. The library has links to forums, articles, events, white papers, recent news, resources, job postings, and more. www.cio.com/research/knowledge/ Knowledge Management Resource Center at CIO.com This site contains well-written, detailed cases of companies that are implementing KM systems. There are also links to articles, white papers, book reviews, resources, radio interviews, and events. http://www.cio.com/forums/knowledge/ Cases, Q & A, Book Reviews, etc. www.kmresource.com KMWorld.com www.systems-thinking.org/kmgmt/kmgmt.htm An introduction to key concepts in the field. Features annotated links to related resources. By Gene Bellinger. Note that both Computerworld (www.computerworld.com) and Information Week (www.infoweek.com) have extensive libraries on this topic. Do a search at either website on knowledge management to find the latest articles. News November 16, 2015: Intel's chief data scientist describes secrets to successful big data projects in an Information Week article at http://www.informationweek.com/big-data/big-data-analytics/intel-chief-data-scientist-shares-secrets-to-successful-projects/d/d-id/1323145 . Have students read the brief article and answer the following: (1) What is the biggest mistake organizations make in big data projects? (2) What does he recommend instead? (3) What is the role of unstructured data? Why is structured data not as interesting? (4) What kinds of skills are useful to be successful at Big Data? Why is it difficult to find people with all the needed skills? April 13, 2015: If your students have ever heard of IBM's "Watson" supercomputer, they might be interested to read the article in CIO Magazine yesterday (as of this writing). IBM is planning to incorporate patient data from wearers of Apple's new watch. Ask students to read http://www.cio.com/article/2909593/ibms-watson-health-division-will-incorporate-patient-data-from-apple.html and answer the following: (1) What will IBM do with that data? That is, what are the benefits of the data? (2) Can you see any drawbacks of allowing Watson to process the data? (3) What connections to other companies are there in this project? Why can't Watson do it all "him"self? Chapter 13: Privacy and Ethical Considerations in Information Management Overview In the previous edition, this chapter was entitled “Using Information Ethically.” The new name reflects a tighter focus on privacy and ethics in handling information. The previous material on security was moved to chapter 7 in this 6th edition. Managers are regularly faced with decisions that call into question the ethical or moral aspect of using information. Just because something can be done, technically or organizationally, does not mean it should be done. The objective of this chapter is to bring this debate out in the open in order to sensitize the general manager to situations and consequences of information system decisions. Discussion Opener: I usually provide the ethical framework before starting discussion in this chapter. Also, if covering chapters in order, it is getting late in the semester and often students are quite behind in their reading, making discussion more difficult. On or about the 10th slide in the deck, there are discussion questions concerning the opening cases of TJX, Target, and Home Depot. Alternate Discussion Opener: Have you ever felt that your privacy was being stretched, or even violated, by a company? Why? What do you believe should be done to prevent privacy violations? That is, should customer behavior change? How? Should laws be enacted? Addressing what? Key Points in Chapter This chapter begins with a discussion of the breaches at TJX, Target, and Home Depot, which impacted about 186 million people in total. The common dilemma: According to law, they had up to 45 days to contact the customers about the security breach. The three firms faced the dilemma of whether or not they should immediately notify their customers so that they could take action to prevent themselves from identify theft; if they notified them before they had corrected the problem they might have more problems from other hackers who might take advantage of the breach, which may hurt their image and in turn impact their shareholders value. Managers must serve as the guardians of the information entrusted to them by their customers and must be prepared to know all of the legal issues involved in protecting and utilizing the information. But it highlights the main message of this chapter: technology allows companies to create valuable competitive advantages with information, but at the same time, technology, and the new knowledge created, must be managed, protected, and used responsibly, ethically, and legally. Managers must deal effectively with issues related to ethical and moral governance of IS. Unfortunately, as with many emerging fields, well accepted guidelines do not exist. Therefore, managers bear a greater responsibility as they make decisions. The managers are the guardians of the public and private interest and must act accordingly. Managers must assess current information initiatives with particular attention to possible ethical issues. Managers in the information age must translate their current ethical norms into terms meaningful for the electronic corporation. To begin to develop this new language, this chapter presents three normative theories of business ethics: stockholder theory, stakeholder theory, and social welfare theory. Figure 13.1 summarizes them in a compact space and describes metrics. The stockholder theory begins with the assumption that stockholders engage corporate managers to act as agents to advance stockholder interests, usually interpreted as maximizing stockholder value. This theory implies that managers must employ legal means to do business and that managers must take the long-term view of stockholder interest (they must forgo short term gains if doing so will maximize value over the long term). This theory provides a limited framework for moral argument because it assumes the ability of the free market to fully promote the interests of society at large. However, the singular focus on profit at the expense of moral and ethical considerations is not often compatible with the long-term success with which managers are charged. The stakeholder theory suggests that managers are bound by their relationship to stockholders and in addition entrusted with fiduciary responsibility for all individuals and groups who have a stake in the organization. That means stockholders, as well as employees, management, unions, customers, vendors, the local community, and a number of other groups. This theory calls for managers to balance the often-competing interests of these groups and to act responsibly to make decisions. The third theory, the social contract theory, puts the needs of society first and foremost in the priority of corporate managers concerns. The overriding objective of managers, under this theory, is to create value for society in a manner that is just and nondiscriminatory. The problem with this theory is that, in the absence of a contract, it is difficult for managers to put societal interests ahead of corporate profitability simply in the name of altruism. Yet the strength of this theory is the broad assessment it gives to evaluating morality of business activities. It is important that students understand that even though each of these theories are distinct, they are not incompatible. Many organizations employ a hybrid approach to normative ethics. Privacy is covered next and there are four key areas widely cited in the literature: from Mason’s PAPA framework: Privacy, Accuracy, Property, and Accessibility. For example, most Americans consider privacy to be one of the most important areas in which their interests need to be safeguarded. Customers expect a certain level of information gathering as part of normal management activity. But used inappropriately, the information gathered through normal business processes for management purposes becomes the focus of legal actions designed to protect individual privacy rights. Even if companies don’t intend to share personal information, allowing accessibility can negatively impact individuals, as in the case when it leads to identity theft. This is becoming increasingly important with the rash of identify thefts that take place on a daily basis, and with new laws being enacted by government agencies; managers must know what they can and cannot do with the information stored in there IS. This is also true for the accuracy of the information in the system. Clients must have confidence that the information stored about them is accurate. Imagine the hardship that someone must endure if their financial or health data is incorrect, or the potential physical harm that could befall a patient at a hospital if their information is entered incorrectly or mixed up with another patient’s information. In the networked age, many managers have begun to question the efficacy of technology in the workplace. An increasing number of products allow managers to monitor or restrict access of employees to certain Internet sites. The use of monitoring and surveillance software highlights an increase in the level of control employers can exert over employees. Environmental issues are a third area of concern for managers, as societal pressures on businesses have increasingly focused on worker health and atmosphere pollution. Information usage guidelines must come from senior executives, however every manager is responsible for making his or her decisions in an ethical and moral manner. Social Business Lens – Personal Data. This material provides an opportunity for important introspection. The issues should be of concern to students who likely post personal data on their Facebook or Instagram accounts or Tweet personal facts multiple times a day. It is recommended to take some time at this point and discuss what data students share and how it might not be a good idea to be so prolific and candid. Geographic Lens – Should Subcultures Be Taken into Account When Trying to Understand National Attitudes Towards Information Ethics? This lens provides the opposite viewpoint of privacy offered by the “Personal Data” Social Business Lens by moving outside the introspective focus to an international and inter-generational focus. It should provide insights about how privacy concerns differ in other parts of the world and by people of differing ages. The final section of the chapter focuses on Green Computing. More and more organizations are embracing environmentally responsible computing. Gartner has put Green Computing at the top of its list of upcoming strategic technologies which puts pressure on companies to implement these strategies. Companies are working to become more efficient through a number of strategies (make sure to discuss this point with students and have them brainstorm on other ways that an organization can become more efficient). Illustrative Answers to Discussion Questions 1. Private corporate data is often encrypted using a key, which is needed to decrypt the information. Who within the corporation should be responsible for maintaining the "keys" to private information collected about consumers? Is that the same person who should have the keys to employee data? Answer: This question is designed to provoke thoughtful decision making about protecting security. Maintaining the key can be done by the system itself, by the owner of the system, by the IS organization, or any number of other individuals or groups. There is no reason the person maintaining the key for customer data should not be the same person as the one maintaining the key to employee data, if that person’s job is a security-type job. On the other hand, marketing may manage customer data, and therefore manage the key to that data. And HR might manage the employee data and hence manage the key to that data. 2. Check out how Google has profiled you. Using your own computer, go to Ad Preferences: www.google.com/ads/preferences. How accurate is the picture Google paints about you in your profile. Answer: (Note: they must log in to their Google account from the first page for specifics). Again, there is no right answer to these questions. You might ask students for their reactions. Are there items that are inaccurate? If so, how do you explain those items? Therefore, I don't have a Google profile or ad preferences to check. My responses are generated based on a mixture of licensed data, data created by human trainers, and publicly available data. These sources may contain information about general preferences or trends but do not reflect personal profiles or individual experiences. Additionally, as a language model, I don't have the capability to access or retrieve personal data unless it has been shared with me in the course of our conversation. Privacy and confidentiality are important principles, and I am designed to respect user privacy and confidentiality. 3. Consider arrest records, which are mostly computerized and stored locally by law enforcement agencies, but have an accuracy rate of about 50%--about half of them are inaccurate, incomplete, or ambiguous. People other than law enforcement officials use these records often. Approximately 90% of all criminal histories in the United States are available to public and private employers. Use the 3 normative theories of business ethics to analyze the ethical issues surrounding this situation. How might hiring decisions be influenced inappropriately by this information? Answer: The perspective from the three theories might be: a. Stockholder theory- Managers must collect all information on employees if that information may give indication that the employee may cause potential loss of profit to a company. For that reason alone, managers must get this information to make the responsible hiring decisions its stockholders expect. b. Stakeholder theory- Managers must collect all information on employees if that information indicates that the new hire may cause harm or damage to the interests of the other stakeholders. The new hire him/herself is a stakeholder, but under this theory, the effect on the many would often outweigh the potential harm to the individual. Managers have the responsibility to check to make sure the information is accurate, and possibly should confront the potential new hire to seek an explanation (which may point out that the information is inaccurate). But ultimately it is only the manager’s responsibility, under this theory, to consider the impact on all stakeholders and make the responsible decision. c. Social contract theory- This theory, with the widest net cast on concerns the manager must consider, would question the validity of even requesting the information if it is known how inaccurate it is likely to be. A responsible manager may still want to collect this information to make sure the organization, and all that it constitutes, is protected if possible, but it would also be the responsibility of the manager to make sure that inaccurate records are cleared up. That means, at a minimum, confronting the potential hire and giving him/her a chance to explain or clear up his/her record. A manager who gets information indicating that a person has a criminal record might be discouraged from hiring a potential candidate. But if that information is incorrect, and if the candidate were to learn that the information was known by the organization, then there might be opportunity for legal action to be taken against the organization that manages the criminal information. 4. The European Community’s Directive on Data Protection strictly limits how database information is used and who has access to it. Some restrictions include registering all databases containing personal information with the countries in which they are operating, collecting data only with the consent of the subjects, and telling subjects about the database and the intended and actual use of the databases. What effect might these restrictions have on global companies? In your opinion, should these types of restrictions be made into law? Why or why not? Should the United States bring its laws in agreement with the EU Directive? Answer: The effect of these restrictions on global companies can be looked at from an economic perspective and from an ethical perspective. From an economic perspective these restrictions are at best costly and at worst would keep managers from doing interesting and potentially valuable business in the European Community. Contacting, seeking consent, and managing the replies received from all individuals in the database in every country in which the data exists is a costly venture. But worse would be the vast complexities in each country that must be known and managed using local customs and laws. Ethically, however, this type of restriction begins to protect the individual citizens by alerting them to the information collected on them. Using the three theories from the chapter would show that the stockholder theory and possibly the shareholder theory would suggest that this type of compliance would only be done if it was a law or if local reaction was anticipated to be so strongly negative as to affect the company’s ability to do business. The social contract theory would suggest that such a restriction would be a reasonable way to safeguard the individuals in each country. This type of restriction, however, might keep companies from doing business in the European Community because of the enormous cost of compliance and the potential risks of noncompliance. Students are asked for their opinion on whether this type of restriction should or should not be implemented. Either answer is acceptable, provided an explanation is given. 5. If you were a consultant to ICANN.org and were asked to create a global internet privacy policy, what would you include in it? Create a summary of your recommendations. Answer: This could be a very lively discussion question for students. Perhaps write it on the board or put it in the PPT presentation to start off the class, or embed after the slide on privacy policies. There will most likely be a diverse set of answers and opinions on this subject. The pros of creating this policy would be to standardize the way data is handled and treated around the globe. This would make it easier for companies to do business in other nations and regions. Cons would include the enforcement of such a policy (very difficult and expensive). Also, who would be responsible for this policy and have control and influence over what goes into the substance of the document? This could be problematic and may cause more problems than it could potentially fix. The U.N. is likely to come up as a managing body, but it will be interesting to see how students respond to this question. In creating a global internet privacy policy for ICANN.org, I would recommend the following key components: 1. Data Minimization: Limit the collection and retention of personal data to only what is necessary for legitimate purposes. 2. Transparency: Ensure clear and accessible communication to users about how their data is collected, used, and shared, including any third-party affiliations or data transfers. 3. Consent: Require explicit consent from users for the collection, processing, and sharing of their personal data, with options for opt-in and opt-out mechanisms. 4. Security: Implement robust security measures to safeguard personal data against unauthorized access, breaches, and cyber threats. 5. Accountability: Hold organizations accountable for compliance with privacy regulations and best practices through regular audits, assessments, and enforcement mechanisms. 6. Data Subject Rights: Grant users the right to access, rectify, delete, and restrict the processing of their personal data, along with mechanisms for data portability and objection. 7. Cross-Border Data Transfers: Establish guidelines for the lawful transfer of personal data across borders, ensuring adherence to international privacy standards and regulations. 8. Privacy by Design: Integrate privacy considerations into the design and development of internet services and technologies, promoting privacy-enhancing features and practices. 9. Education and Awareness: Provide resources, training, and awareness campaigns to educate users, organizations, and stakeholders about their privacy rights and responsibilities. 10. Continuous Improvement: Foster a culture of continuous improvement and adaptation to evolving privacy risks, technologies, and regulatory landscapes, with mechanisms for regular review and updates to the policy. 6. Do you believe sending targeted advertising information to a computer using cookies is objectionable? Why or why not? Answer: There will be a significant amount of disagreement on this question. Students who are concerned with any data being tracked and profiled see this as an intrusion on their privacy and use of the Internet. Students who see the benefit of this data collection from a business perspective will see the potential competitive advantage that may be achieved and will therefore be more lenient. The discussion should be addressed from the social contract theory to help students determine the infringement issues that this question raises. They should discuss informed consent versus anonymous tracking, and how anonymous that tracking really is. Opinions on targeted advertising using cookies vary depending on individual perspectives and privacy concerns. Some may find it objectionable due to perceived invasions of privacy, as it involves tracking online behavior and potentially sharing personal data with advertisers without explicit consent. Others may view it as a beneficial practice, as it delivers personalized content and offers tailored to individual interests and preferences, enhancing user experience and relevance. However, concerns arise regarding transparency, control, and potential misuse of personal data for manipulative or discriminatory purposes. Striking a balance between personalized advertising and respecting user privacy requires clear consent mechanisms, robust data protection measures, and transparency in data collection and usage practices. Ultimately, whether targeted advertising using cookies is objectionable depends on the extent to which it respects user autonomy, privacy rights, and ethical standards in data handling and advertising practices. Further Discussion Questions When the video cassette recorder (VCR) was introduced, charges were laid against one of the largest manufacturers of the device that the manufacturer should bear the liability for the ability the VCR gave consumers to steal copyrighted material (copy movies and videotapes). The company in question successfully defended itself and established a long-held precedent that a manufacturer should not be liable if its products are misused. That manufacturer was Sony. Sony is now one of the largest owners of digital content libraries in the world, and it aggressively prosecutes individuals that steal copyrighted material. And, in a radical change of direction, Sony is attempting to bring legal action against software development companies for the production of software that allows peer-to-peer (P2P) sharing of material. The claim Sony is making is that these corporations are providing a tool that allows individuals to steal Sony’s intellectual property. The companies defending themselves against Sony are using the “Sony Defense.” 1. Discuss whether you think companies should be allowed to develop P2P applications; what are the dangers of stifling such development? Can it truly be stopped? Answer: Companies should be allowed to develop peer-to-peer (P2P) applications as they can facilitate efficient sharing of resources, collaboration, and innovation. Stifling such development could hinder technological progress and limit opportunities for decentralized communication and file sharing. Moreover, P2P applications have legitimate uses in various industries, including content distribution, communication, and cloud computing. Attempts to stop P2P development may face challenges due to the decentralized nature of P2P networks and the global reach of the internet, making enforcement difficult. However, concerns about illegal file sharing, copyright infringement, and security risks associated with P2P networks necessitate regulatory measures to address these issues while preserving the potential benefits of P2P technology. Striking a balance between innovation and regulation is essential to harness the potential of P2P technology while mitigating its risks and ensuring compliance with legal and ethical standards. 2. What alternatives might Sony pursue, rather than aggressive litigation, to solve the problem it currently faces in the theft (piracy) of copyrighted material? Answer: Sony could explore several alternatives to aggressive litigation to address the theft (piracy) of copyrighted material. First, they could focus on technological solutions, such as implementing robust digital rights management (DRM) systems or encryption techniques to prevent unauthorized access and distribution of copyrighted content. Second, they could adopt a proactive approach to educate consumers about the importance of copyright protection and the legal alternatives available for accessing content, such as subscription-based streaming services or digital marketplaces. Third, they could engage in partnerships with internet service providers (ISPs), content creators, and other stakeholders to develop industry-wide initiatives aimed at combating piracy through cooperative efforts, such as content licensing agreements, anti-piracy campaigns, and collaborative enforcement actions. Fourth, they could invest in research and development to innovate new business models and distribution channels that offer consumers convenient, affordable, and legal access to copyrighted content while compensating rights holders fairly. Finally, they could prioritize user experience and convenience by offering value-added services, exclusive content, and enhanced features to incentivize consumers to choose legal alternatives over pirated content. By pursuing these alternatives, Sony can address the piracy problem more effectively while fostering positive relationships with consumers and stakeholders in the digital ecosystem. 3. Discuss how legitimate Sony’s claim is, given its past defense. Answer: Sony's claim regarding the theft (piracy) of copyrighted material is legitimate, considering its history of defending intellectual property rights and combating piracy through legal means. In the past, Sony has taken proactive measures to protect its copyrighted content and enforce its rights through litigation, cease and desist letters, and anti-piracy campaigns. Furthermore, Sony has invested significant resources in developing and implementing digital rights management (DRM) technologies to safeguard its intellectual property against unauthorized access and distribution. Additionally, Sony has consistently advocated for stronger copyright laws and enforcement mechanisms to combat piracy and protect the interests of content creators and rights holders. Despite criticisms and controversies surrounding some of Sony's past actions, its claim against piracy remains grounded in its commitment to upholding copyright laws and preserving the value of creative works in the digital age. Cases Case Study 13-1: Ethical Decision Making These six small situations can be used to spark discussion about how to think about and use the ethical frameworks from the book. While the simplicity of these situations is unrealistic, it is useful to begin a dialog about ethical issues before a manager actually faces one and has to make a decision. It is in this light that these situations, and my comments, are offered. Situation 1: Recording with Google Glass as you spend your day is a new phenomenon and society has very little experience with such options. Therefore, this could stimulate a fascinating conversation in class. The PAPA paradigm helps at least to structure the discussion, and does provide a few insights as well. a. In a bank: (P)rivacy is usually assumed by customers, as we are not accustomed to public attention at business in a bank. Recording would seem to violate privacy. (A)ccuracy would assume not only that the information is correct, but also that if incorrect conclusions could be drawn from it, that correcting or augmenting information should be included as well. Accuracy could indeed be violated, as people visiting a bank could be doing so depositing a small check, for making large deposits to their own accounts, for borrowing money to stave off bankruptcy, or even for transacting business as a favor to friends. Therefore, accuracy seems to provide some mild indication that filming is not reasonable. (P)roperty would seem to apply in this case in an interesting way, as the video would be physically possessed by the filmer, but without permission of the subjects, giving away their rights, it would also partly belong to the subjects. Filming therefore does not sound reasonable considering property rights. (A)ccessibility would be violated because subjects would have no way to find or review the videos. Again, filming does not sound reasonable. b. As you drive your car: (P)rivacy is not usually assumed in public (at least on public thoroughfares), so recording would not seem to violate privacy. However, driving on private driveways could violate privacy. (A)ccuracy does not seem to be violated under general circumstances. Therefore, accuracy would not seem to stand in the way of filming. (P)roperty would seem to apply in this case in an interesting way, as the video would be physically possessed by the filmer, but without permission of the subjects, giving away their rights, it would also partly belong to the subjects. It seems unreasonable to film on this basis. (A)ccessibility would be violated because subjects would have no way to find or review the videos, and filming would not be considered reasonable under this criterion. c. In a casino: Because filming in casinos is expressly prohibited, there seem to be violations of (P)rivacy. (A)ccuracy, (P)roperty, and (A)ccessibility all seem to have similar difficulties to filming in a bank; see (a) above. d. In class: There is substantial precedence for audio taping classes for those who are absent, but in most cases professors are asked for their permission, and there is not video information in such tapings. Complicating matters is the emerging practice of classes being video- and audio-taped for students to review later on web sites, so the expectation of (P)rivacy is highly uncertain and growing doubtful. Because some students might have expectations of privacy, however, the other three items in the framework are again similar to filming in a bank, again referring to (a) above. e. In a bar: While some people might take “selfies” and other photos with ubiquitous mobile devices, expectations of (P)rivacy could be expected in a bar by many patrons, given society’s periodic sensitivities regarding the consumption of alcohol, and filming with Google Glass in a bar therefore does not seem reasonable. Again the other three items can be answered in a manner similar to filming in a bank, again referring to (a) above. Situation 2: The point of this situation is to highlight that even though you have the ability to look at something, it may not be right to do it. The supervisor is in a difficult position, since Doug wants him/her to look at individual hard disks. Technically, the hard disks and anything on them belongs to the company, but historically, it has been treated as though it was private for the person using the computer. How might the supervisor handle it? He/she might ask Doug for more specific criteria to enhance quality of the work (go to the root of the problem and look for a more ethical way to handle it). He/she might ask each member of the pool to submit a document and/or take part in regular reviews. Or he/she might just go on the hard disk and get the document sample, if a good process is put in place to evaluate and respond to the information found. In any case, the pool needs to know that in the future all work on the disk is the property of, and hence can be looked at by anyone at, the company. This open communication may help improve the level of trust between the manager, supervisor, and employees at this company. The management can communicate that the data may be used to provide rewards for good performance, or to indicate areas where more training is needed. Situation 3: The dilemma comes into play because while Olsen is violating a company principle of no personal calls, he is doing so for an emergency situation: a sick child. Essex might want to have a discussion with Olsen to make sure he knows company policy, but at the same time, reassure him that an emergency situation will not mean expulsion from the company. Essex might also work to make sure the management practices take into account personal emergencies so there is no ambiguity the next time this happens. Have the students analyze this case from the perspective of stockholder versus stakeholder versus social contract theories. Situation 4: Legally, Jane is required to get rid of her backup copy when the license is revoked and the company cannot still use the system beyond any contracts they have already executed with the original company. The critical nature of the system only increases the anxiety about finding a new system to replace it. We_Sell_More.com might want to negotiate with the parent company for continued rights beyond any contract they already have. Situation 5: Point out to the students that although this case led to Napster filing for bankruptcy and ultimately reorganizing under a new business model, the issues are still relevant. Those students who argue that Napster should have been allowed to continue their operations often argue that the record companies do not treat customers or artists fairly. Explore with them the arguments that they may make regarding the fact that copying music files is a widespread practice. While it could be argued that Metallica is losing money from the copying, students often counter that they primarily earn money from their concerts and not from the sale of the music. In fact, some music files are available for free on the Metallica site. Explore the issue from the perspective of the various stakeholders. Situation 6: This situation ties in with the current US debate about the rights of individuals vs. the need for the government to enact stringent measures to combat terrorism. Congress is clearly divided, as are the states. Some states are participating in MATRIX while even more have decided not to. Why did some states decide to pull out of MATRIX? Explore the situation from the perspective of various stakeholders. Situation 7: This situation is another version of Situation 2. At issue here is the right of an organization to employ software to study the emails of its employees. Legally, emails may be read by employers. Given the pervasiveness of email usage in the workforce, is this an ethical practice? Here again, the surveillance without notifying the employees is an important issue. Discuss steps managers should take if the software is installed. Explore the situation from the perspective of various stakeholders. Case Study 13-2: Midwest Family Mutual Goes Green This case focuses on how a company can become more responsible with its use of natural resources. Midwest saw a substantial decrease in energy consumption through its implementation of a number of green initiatives (virtual “work from home” office environment). They also found that being “green” helped their bottom line by decreasing expenses. Through the use of IT, the company has been able to achieve this remarkable transformation. 1. Do you think that the economic benefits that Midwest Family Mutual realized as a result of green computing are unusual? Do you think most companies can see similar types of economic gains? Explain. Answer: I don’t think they are unusual for a service industry, but it would depend upon the type of company and the need of having the employees work in close physical proximity. A company that is involved in manufacturing would not be able to realize the same level of economic gain, since its employees would need to be at the plant location. However, any type of insurance company or company that didn’t rely on the need to be at a particular physical location could see the same results. 2. What are some possible disadvantages the employees of Midwest Family Mutual may be experiencing as a result of their new virtual "work from home" office environment? Answer: Possible disadvantages include :isolation from other workers, accountability from supervisors, always being at work (when home), etc. Teleworkers tend to work more hours since their work is just down the hall or in the other room. Security and reliability of their connection to the corporate network, including the VoIP system could easily be disruptive due to an issue in their neighborhood. The company will need contingency plans in case of wide spread outages of services with their employees. 3. Apply the normative theories of business ethics to this situation. Answer: In the stockholder theory, the company would be helping to maximize shareholder value by minimizing costs and maximizing profit. For stakeholder theory, the company is considering its employees, customers, and others, but it may have an indirect impact on companies in close proximity to the office (fewer people eating at local restaurants, supplies are in smaller demand, etc.). For the social contract theory, they are hitting a home-run, both by reducing energy costs and by keeping more vehicles off of the road. Supplemental Cases AdNet by Ashish Nanda, Harvard Business School Publishing, 2004. DoubleClick, Inc by T.D. Fields & J, Cohen, Harvard Business School Publishing, 2003. International Rivers Network and the Bujagali Dam Project (A), by Benjamin C. Esty; Aldo Sesia, Jr. Harvard Business School Publishing, 2004 (25 pages). To consider the ethical implications of large-scale investments in developing countries, including the roles and responsibilities of the major parties involved (i.e., project sponsor, host government, and project financiers). To consider the implications of project information disclosure, or the lack thereof, to all parties, including the consumers of electricity. Tata Consultancy Services, by Rohit Deshpande, Seth Schulman, Harvard Business School Publishing, 2005 (11 pages). Canadian Imperial Bank of Commerce: Digital Employee Privacy by M. Wade & K. Mark, Richard Ivey School of Business, 2001. Lotus Marketplace: Households... managing information privacy concerns. Culnan, M. J. & Smith, H. J. (1995). In Johnson, D. G. & Nissenbaum, H. (Eds.). Computers, Ethics, and Social Values. Englewood Cliffs, NJ: Prentice-Hall, 269-278. The Lessons of the Lotus MarketPlace: Implications for Consumer Privacy in the 1990's by Mary Culnan, available at the CPSR website: http://www.cpsr.org/conferences/cfp91/culnan.html Contains commentary on the original Lotus situation. Incident at Waco Manufacturing, by John Sviolka, HBS Publishing, Case Number 189142 (March 1990). Describes an information system that continually traces the location of every employee. This data is used by a visiting manager to assess a problem situation. Competitive Information Policy at Pratt and Whitney by Lynn Sharpe Paine, HBS Publishing, Case Number 394154 (July 1994). Officials at United Technologies Corp. (UTC) must decide on an ethics policy to govern competitive intelligence gathering. The flow of competitor information into the Pratt & Whitney division has declined sharply since adoption of UTC's code of ethics. Supplemental Readings/Articles Greenaway, Kathleen E., Yolande E. Chan, and Robert E. Crossler. "Company information privacy orientation: a conceptual framework." Information Systems Journal 25.6 (2015): 579-606. Bansal, Gaurav, and David Gefen Fatemeh‘Mariam’Zahedi. "The role of privacy assurance mechanisms in building trust and the moderating role of privacy concern." European Journal of Information Systems (2015). Kehr, Flavius, et al. "Blissfully ignorant: the effects of general privacy concerns, general institutional trust, and affect in the privacy calculus." Information Systems Journal (2015). Fodor, Mark, and Alexander Brem. "Do privacy concerns matter for Millennials? Results from an empirical analysis of Location-Based Services adoption in Germany." Computers in Human Behavior 53 (2015): 344-353. Miltgen, Caroline Lancelot, and Dominique Peyrat-Guillard. "Cultural and generational influences on privacy concerns: a qualitative study in seven European countries." European Journal of Information Systems 23.2 (2014): 103-125. Lowry, P. B., Posey, C., Roberts, T. L., & Bennett, R. J. (2014). Is your banker leaking your personal information? The roles of ethics and individual-level cultural characteristics in predicting organizational computer abuse. Journal of Business Ethics, 121(3), 385-401. Keith, Mark J., et al. "Privacy fatigue: The effect of privacy control complexity on consumer electronic information disclosure." International Conference on Information Systems (ICIS 2014), Auckland, New Zealand, December. 2014. Smith, H. J. “Information Privacy and Marketing: What the U.S. Should (and Shouldn't) Learn from Europe.” California Management Review, 2001. Herzlinger, R. E. & Bokser, Seth. “Note on Accountability and Information in the U.S. Health Care System.” Harvard Business School Publishing, 2001. Smith, H. J. and Hasnas, J. “Ethics and Information Systems: The Corporate Domain.” MIS Quarterly, 23(1) 1999. Couger, J.D. “Preparing IS Students to Deal with Ethical Issues,” Management Information Systems Quarterly, 13(2) 1989. Davies, S. G. “Re-engineering the right to privacy: how privacy has been transformed from a right to a commodity.” In Agre, P. E., & Rotenberg, M. (Eds.), Technology and Privacy: The New Landscape. Cambridge, MA: MIT Press, 1997. Mason, R. “Four Ethical Issues in the Information Age.” MIS Quarterly 11(1) pg. 4-12. Shneiderman, B. “Designing Trust into online Experiences.” Communications of the ACM 43(12) 2000, pg. 57-59. Olson, J.S. & G.M. Olson. “i2i trust in e-commerce.” Communications of the ACM, 43(12) 2000, pages 41 – 44. Kreie, J. and T.P. Cronan. “Making ethical decisions.” Communications of the ACM, 43(12) 2000, pages 66 – 71. Books Information Ethics: Privacy, Property, and Power. Adam D. Moore (Editor). Seattle: University of Washington Press. 2005. Lane, F.S. Naked Employee, The: How Technology Is Compromising Workplace Privacy. NY: American Management Association, 2003. Forester, T. Information Technology Revolution. MA: MIT Press, 1985. Johnson, D. Computer Ethics, NJ: Prentice Hall Inc., 1985. Kallman, E.A. and Grillo, J.P. Ethical Decision Making and Information Technology: An Introduction with Cases. NY: McGraw Hill, 1996. Langford, D. Internet Ethics, London: Macmillan, 2000. Johnson , D.G. & Nissenbaum, H. Computers, Ethics & Social Values. NJ: Prentice Hall, 1995. Websites AIS Website: http://aisnet.org/or go specifically to the Ethics page: http://c.ymcdn.com/sites/ais.site-ym.com/resource/resmgr/Admin_Bulletin/AIS_Code_of_Research_Conduct.pdf Faculty in the IS area have been working on resources to teach this topic for a number of years. One of the best resources for readings, syllabi, and other teaching support can be found at the IS. In addition, to supplement the IS research ethics panel at the 21st International Conference on Information Systems this December in Brisbane, Australia, this website was created: http://aisel.aisnet.org/icis/ The center for Computer Professionals for Social Responsibility has a terrific website with a number of resources. Some of their papers and publications will make good case studies. http://cpsr.org/issues/ethics/ News November 17, 2015: CNET has a community series that often asks a fascinating question with community answers. Following the Paris attacks, your students might wish to process the tragedies and this particular entry could help foster a meaningful, partly healing discussion. Here is the entry: http://nls.cnet.com/pageservices/viewOnlineNewsletter.sc?list_id=e497. Ask students to read the short article and the comments by gordonf10, givemeglenn, and Noo Yawkah, then answer the following: (1) How many of you were already familiar with Anonymous before reading this article? The group claims to be activist in nature; do you agree? (2) Do you support the actions of Anonymous in this case? Then provide the following: Ask them to read http://www.cnet.com/news/hacker-group-well-wipe-isis-off-the-internet/ and continue the discussion. Students might also find it interesting to see the response from ISIS (calling Anonymous "idiots"): http://www.cnet.com/news/isis-calls-anonymous-idiots-offers-tips-to-elude-hackers/?tag=nl.e497&s_cid=e497&ttag=e497&ftag=CAD5920658. The final question: (3) Do you think they have a shot at being successful, in light of the comments made by the three bloggers and ISIS itself? April 13, 2015: Computerworld has an article about attorneys who are finding electronic medical records a fruitful avenue for filing lawsuits. Ask students to read the article at http://www.computerworld.com/article/2909348/lawyers-smell-blood-in-electronic-medical-records.html and ask them the following: (1) What ethical dilemma or dilemmas do you see in the article? [One example is spending time with patients versus less time with them and more time with paperwork]. (2) Why is the EMR so lengthy? (3) What do you think should be done about two different issues mentioned in the article: (a) additional exposure faced by physicians and (b) the need for better recordkeeping? Solution Manual for Managing and Using Information Systems: A Strategic Approach Keri E. Pearlson, Carol S. Saunders, Dennis F. Galletta 9781119244288, 9781118281734
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