Managing Technology and Innovation

Chapter 13

Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved.McGraw-Hill/Irwin

Ch. 13 Key Learning Objectives Evaluating the growth in breaches of personal information

privacy Understanding where these attacks come from and what

their effects are Evaluating initiatives taken by government and business to

minimize invasions of privacy Recognizing the emerging role and responsibilities of the

organization’s chief information officer Examining violations of intellectual property through the

piracy of software, music, movies, and books, and how business and government attempt to prevent these illegal actions

Recognizing the benefits, as well as the ethical and social challenges that arise from technological breakthroughs in science and medicine

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Violations of Privacy: Causes and Costs The 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 privacy

More aggressive efforts by cyber criminals resulted in a steep rise of attacks on information security

Recent technological advancements have increased the number of ways that privacy violations may occur

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“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 executive

Violations of Privacy: Causes and Costs

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In a survey of 583 U.S. companies 90 percent said their companies’ computers were breached

at least once by hackers over the past year Nearly 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 Costs

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Cases of Identity Theft and Fraud Losses in the U.S., 2006 – 2009

Figure 13.1

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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 Occur

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Managing the Protection of Privacy

Since 2007, representatives from the United States and 27 European countries have gathered annually for Data Privacy Day The 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 rights

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Managing the Protection of Privacy The 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 13

In 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 information

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Business Response to Information Security Invasions

Businesses have gone to great lengths to build strong defenses to protect information and ensure stakeholder privacy

Companies are now using honeypots, a system used by security professionals to lure hackers to a fabricated website that can track all their movements

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Chief Information Officer (CIO) Is responsible for managing technology, including its

many security issues, for companies Position has been elevated in recent years, with most

CIOs reporting directly to their CEOs CIOs’ 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 technology

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Protecting Intellectual Property Intellectual property

The ideas, concepts, and other symbolic creations of the human mind

Protected in U.S. by copyright, patent and trademark laws

Theft of intellectual property, artistic performance, or copyrighted material exploded with the entrance of the Internet and global connectivity

Whether 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 challenge

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Business and Government Responses to Violations of Intellectual Property

Companies have sought assistance on the issue of software piracy from governmental agencies and the courts both inside and outside the United States In 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 user

In China, where experts estimate that 90 percent of all software in use is unlicensed, government officials have also take steps to curb piracy

Despite efforts at the international, national and business levels, piracy continues to rise each year globally

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Commercial Value of Pirated Software, by Region, 2007-2011

Figure 13.3

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Managing Scientific Breakthroughs Nanotechnology

The application of engineering to create materials on a molecular or atomic scale

So far, at least, the U.S. government has not regulated the use of nanomaterials and nanoparticles in consumer products

Human genome When 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 moon

A new era of medicine, as well as great opportunity for biotechnology companies, appeared to be born with the decoding of the human genome

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Managing Scientific Breakthroughs Biotechnology and Stem Cell Research

Tissue engineering is the growth of tissue in a laboratory dish for experimental research

Stem-cell research is research on nonspecialized cells that have the capacity to self-renew and to differentiate into more mature cells

Cloning Clearly 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 future

In 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 animals

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Managing Scientific Breakthroughs Genetically engineered foods

Genetic engineering is altering the natural makeup of a living organism, allowing scientists to insert any gene in to a plant

Significant economic implications for agricultural industry

Genetically modified foods is food processed from genetically engineered crops

Early on was backlash against genetically modified foods in Europe, initial opposition has weakened

By 2007, developing countries planting genetically modified seeds outnumbered developed countries, according to a report from the International Service for the Acquisition of Agri-biotech Applications

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