e-business - utrecht · pdf filee-environment . slide 4.5 moral dimensions of an internet...
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Slide 4.1
E-Business Lecture 4: E-environment
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Slide 4.2
Outline
• Environment • SLEPT framework
• Social • Legal • Economic • Political • Technological
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Slide 4.3
Understanding Ethical, Social, and Political Issues in E-commerce • Internet technology disrupts:
• existing social and business relationships and understandings
• Also in e-commerce!
• Careful consideration needed: • Costs and benefits of technology • As yet no clear-cut legal or cultural guidelines
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Slide 4.4
E-environment
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Slide 4.5
Moral dimensions of an Internet society
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Slide 4.6
Macro-environment
• Social
• Ethical / Legal
• Economic
• Political
• Technological
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Slide 4.7
Social factors
Examples: • Information rights
• Public welfare, safety, security
• Access (cost, ease, limits, education)
• Interaction of Internet with daily life
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Slide 4.8
Macro-environment
• Social
• Legal / Ethical
• Economic
• Political
• Technological
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Slide 4.9
Legal and ethical issues
Examples: • Access
• Privacy
• SPAM
• Cookies
• Copyright
• Content (Pornography, Gambling, Racism, Terrorism)
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Slide 4.10
Basic Ethical and Legal concepts
• Ethics (NL: Ethiek): Study of principles that individuals and organizations can use to determine right and wrong courses of action
• Responsibility (NL: verantwoordelijkheid) As free moral agents, individuals, organizations and societies are responsible for the actions they take
• Accountability (NL: toerekenbaarheid): Individuals, organizations and societies should be held accountable to others for the consequences of their actions
• Liability (NL: aansprakelijkheid): Extends the concepts of responsibility and accountability to area of law
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Slide 4.12
Legal and ethical factors
Main issues: • Privacy and information rights
• Intellectual property
• E-commerce legislation
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Slide 4.13
Privacy and information rights
• Privacy: • The right of individuals to avoid intrusion into
their personal affairs • Digital and Information privacy:
• The ability to control what information one reveals about oneself and what is collected (over the Internet)
• The ability to control access and use of that information
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Slide 4.14
Privacy issues
More than just a legal issue: • Ethical:
• Under what conditions should we invade privacy of others
• Social: • Development of “expectations of privacy” and
privacy norms • Political:
• Development of statutes that govern relations between recordkeepers and individuals
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Slide 4.15
Private information collected
• Name, address • Phone number • Email address • Social security number / BSN • Bank and credit card accounts • Age, gender • Occupation • Browser type • Preference data • Transaction data • Clickstream data
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Slide 4.16
Information collection tools
• Search engines • Site transaction logs • Cookies • Shopping carts • Forms • Digital wallets
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Slide 4.17
Privacy regulations
• EU Data Protection directive 95/46/EC: Member states shall protect the fundamental right and freedoms of natural persons, and in particular their right to privacy with respect to the processing of personal data
• Conditions: • Transparency • Legitimate purpose • Proportionality
• Netherlands: – Constitution, articles 10-13 – Wbp: Wet bescherming persoonsgegevens – CBP: College bescherming persoonsgegevens
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Slide 4.18
Privacy regulations (2)
• Current EU Data Protection Directive 95/46/EC does not consider important aspects like globalization and technological developments like social networks and cloud computing sufficiently
• European Commission plans new directive: • General Data Protection Regulation (GDPR)
• Proposal for regulation: January 2012 • Adoption: 2015? • In effect: 2017? • Discussions are ongoing….
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Slide 4.19
Digital privacy
• EU Privacy and Electronic Communication directive 2002/58/EC and 2009/36/EC:
• Security of services
• Confidentiality of information
• Data retention
• Spam
• Cookies
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Slide 4.20
Intellectual property rights
• Copyright • Protects original forms of expression (but not ideas)
from being copied by others for a period of time
• Patent • Grants owner an exclusive monopoly on ideas
behind an invention for a period of time
• Trademark • Trademarks protect public by ensuring it gets what it
pays for/expects to receive; protects trademark owner against piracy and misappropriation
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Slide 4.21
Other E-business legislation
• Marketing • Domain name registration:
• Cybersquatting
• Cyberpiracy
• Meta-tags abuse
• Deep linking
• Framing
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Slide 4.22
Other E-business legislation
• Electronic contracts and payments • Country of origin principle (EU): Law for the
contract = law of country of merchant • Distance-selling law (EU, based on mail order)
E-commerce site must provide easy access to: • Identity, addres • Features of goods/services • Price information, tax, delivery costs • Payment and delivery arrangments • Terms of contract
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Slide 4.23
Other E-business legislation
Taxation • European directives:
• Supplier and customer inside EU: • VAT in supplier country
• Export from outside EU to customer inside EU: • VAT + import in consumer country
• Export from inside EU to outside EU: no VAT
• Services: • VAT in country of consumer
• National incentives: • “Promotional” taxation rules
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Slide 4.24
Macro-environment
• Social
• Legal / Ethical
• Economic
• Political
• Technological
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Slide 4.25
Economic issues
Examples: • Globalisation • Weakening local firms / strengthening large
global firms • Variations in economic performance affect
spending patterns and international trade
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Slide 4.26
Economic (and competitive) factors
• e-Economy: The dynamic system of interaction between citizens, businesses and government that capitalize upon online technology to achieve a social or economic good.
• Benchmarking framework: – 4 Layers: Environment, Readiness, Uptake and Use,
Impact
– 3 Stakeholders: Citizens, Businesses, Government
• e-Maturity: – Sophistication of a nation’s e-economy
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Slide 4.27
E-economy framework Source: Booz Allen Hamilton 2002
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Slide 4.28
Macro-environment
• Social
• Legal / Ethical
• Economic
• Political
• Technological
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Slide 4.29
Political factors
• Political environment:
– Legislation – Guidance and assistance
– International actions
• Organizations: – EU
– UNESCO
– National
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Slide 4.30
Governance
• Primary questions:
• Who will control Internet and e-commerce? • What elements will be controlled and how?
• Stages of governance and e-commerce
• Government Control Period (1970-1994) • Privatization (1995-1998)
• Self-Regulation (1995-present)
• Government Regulation (1998-present)
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Slide 4.31
Net neutrality
• Feb 2014: • Eerste overeenkomst tussen Netflix en Comcast om tegen
betaling een betere QoS voor Netflix customers (video stream) te garanderen.
• Nederland 2012: • Vrije toegang tot het internet gegarandeerd • Het is verboden nieuwe diensten te blokkeren
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Slide 4.32
Macro-environment
• Social
• Legal / Ethical
• Economic
• Political
• Technological
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Slide 4.33
Technological factors • I think there is a world market for maybe five computers
Thomas Watson, chairman IBM, 1943
• Computers in the future may have only 1,000 vacuum tubes and perhaps only weigh 1 1/2 tons
Popular Mechanics, 1949
• There is no reason for any individual to have a computer in their home
Ken Olson, president DEC, 1977
• 640K ought to be enough for anybody Bill Gates, 1981
• I am not convinced people want to watch movies on a tiny little screen
Steve Jobs, 2003
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Slide 4.34
Diffusion-adoption curve (Rogers, 1983)
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Slide 4.35
Gartner hype cycle
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Slide 4.36
Gartner hype cycle
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Slide 4.37
Gartner hype cycle 2014
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Slide 4.38
Gartner hype cycle 2013
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Slide 4.39
Gartner hype cycle 2012
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Slide 4.40
Summary
• Macro-environment • Social
• Legal / Ethical
• Economic
• Political
• Technological
• Next: • Werkcollege
• Next week: • E-business strategies