Chapter 13: Managing Technology and Innovation

Managing Technology and InnovationChapter 13Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/IrwinCh. 13 Key Learning ObjectivesEvaluating the growth in breaches of personal information privacyUnderstanding where these attacks come from and what their effects areEvaluating initiatives taken by government and business to minimize invasions of privacyRecognizing the emerging role and responsibilities of the organization’s chief information officerExamining violations of intellectual property through the piracy of software, music, movies, and books, and how business and government attempt to prevent these illegal actionsRecognizing the benefits, as well as the ethical and social challenges that arise from technological breakthroughs in science and medicine13-*Violations of Privacy: Causes and CostsThe potential for violations of privacy can come from many different sources Employees have access to new technologies at work and companies may be monitoring usage, raising employee concerns about invasions of privacyMore aggressive efforts by cyber criminals resulted in a steep rise of attacks on information securityRecent technological advancements have increased the number of ways that privacy violations may occur13-*“Cybercrime has emerged as a formidable threat, thanks to deeply determined, highly skilled, and well-organized cyber criminals from nation states to hacktivists, from criminal gangs to lone-wolf perpetrators. Organizations need to be aware and adjust to this changing landscape.” PricewaterhouseCoopers executiveViolations of Privacy: Causes and Costs13-*In a survey of 583 U.S. companies 90 percent said their companies’ computers were breached at least once by hackers over the past yearNearly 60 percent reported two or more breaches More than 50 percent said they had little confidence of being able to stave off future attacks The number of instances of identity theft and the losses associated with these fraudulent activities are increasing Violations of Privacy: Causes and Costs13-*Cases of Identity Theft and Fraud Losses in the U.S., 2006 – 2009 Figure 13.113-*Recent technological advances have increased the number of ways that privacy violations may occur Employees making inadvertent mistakes Computer hackers, individuals, often with advanced technology training, who, for thrill or profit, breach a business information security system using:Zombies, a hijacked computer that can be remote-controlled by the attacker to respond to the attacker’s commands Trojan horses, that enable hackers to gain access to computers when people clicked on dangerous links Worms that would replicate, spread and corrupt computer files within the company’s system Logic bombs that could hide in computers and then “go off” and delete files at a specific time Ways Privacy Violations May Occur13-*Managing the Protection of PrivacySince 2007, representatives from the United States and 27 European countries have gathered annually for Data Privacy DayThe event, which brings together privacy professionals, government leaders, academics and students, and business executives, was designed to raise awareness and generate discussion about data privacy practices and rights13-*Managing the Protection of PrivacyThe Children’s Online Privacy Protection Act of 1998 (COPPA) requires commercial websites to collect a verifiable form of consent from the parent or guardian of any user below the age of 13In 2010, the U.S. government launched the “Perfect Citizen” program to detect cyber assaults on private U.S. companies and government agencies running critical infrastructures, such as the electricity grid and nuclear power plants Governments must act with businesses themselves—both Internet companies and any firm collecting and storing sensitive information—to secure information13-*Business Response to Information Security InvasionsBusinesses have gone to great lengths to build strong defenses to protect information and ensure stakeholder privacyCompanies are now using honeypots, a system used by security professionals to lure hackers to a fabricated website that can track all their movements13-*Chief Information Officer (CIO)Is responsible for managing technology, including its many security issues, for companiesPosition has been elevated in recent years, with most CIOs reporting directly to their CEOsCIOs’ role expanded even more to include broader responsibilities and greater influences on corporate policies and practices Part of job is enabling or driving business innovation through use of technology13-*Protecting Intellectual PropertyIntellectual propertyThe ideas, concepts, and other symbolic creations of the human mindProtected in U.S. by copyright, patent and trademark lawsTheft of intellectual property, artistic performance, or copyrighted material exploded with the entrance of the Internet and global connectivityWhether it is computer-based software, musical recordings, video movie productions, or electronic versions of books, piracy is on the rise and victims are retaliating turning to governments for enforcement and protection of their rights, or seeking collaborative solutions to this ethical challenge13-*Business and Government Responses to Violations of Intellectual PropertyCompanies have sought assistance on the issue of software piracy from governmental agencies and the courts both inside and outside the United StatesIn 1998, the United States passed the Digital Millennium Copyright Act, making it a crime to circumvent antipiracy measures built into most commercial software agreements between the manufacturer and the userIn China, where experts estimate that 90 percent of all software in use is unlicensed, government officials have also take steps to curb piracyDespite efforts at the international, national and business levels, piracy continues to rise each year globally 13-*Commercial Value of Pirated Software, by Region, 2007-2011 Figure 13.313-*Managing Scientific BreakthroughsNanotechnologyThe application of engineering to create materials on a molecular or atomic scaleSo far, at least, the U.S. government has not regulated the use of nanomaterials and nanoparticles in consumer productsHuman genomeWhen Celera Genomics Group announced that it completed the first sequencing of human DNA makeup, the achievement was hailed as the most significant scientific breakthrough since landing on the moonA new era of medicine, as well as great opportunity for biotechnology companies, appeared to be born with the decoding of the human genome13-*Managing Scientific BreakthroughsBiotechnology and Stem Cell ResearchTissue engineering is the growth of tissue in a laboratory dish for experimental researchStem-cell research is research on nonspecialized cells that have the capacity to self-renew and to differentiate into more mature cellsCloningClearly stem cell research leading to the possibility of human cloning and the human consumption of food cloned from animals are important issues and will likely increase in prominence in the near futureIn 2008 the F.D.A. declared that food from cloned animals and their offspring was safe to eat, but imposed a voluntary ban on the sale of cloned animals13-*Managing Scientific BreakthroughsGenetically engineered foodsGenetic engineering is altering the natural makeup of a living organism, allowing scientists to insert any gene in to a plantSignificant economic implications for agricultural industryGenetically modified foods is food processed from genetically engineered cropsEarly on was backlash against genetically modified foods in Europe, initial opposition has weakenedBy 2007, developing countries planting genetically modified seeds outnumbered developed countries, according to a report from the International Service for the Acquisition of Agri-biotech Applications13-*