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Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

CHAPTER 15

IMPLEMENTING IT: ETHICS, IMPACTS, AND SECURITY

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Learning Objectives Describe the major ethical issues related to information technology and identify situations in which they occur Identify the major impacts of information technology on organizational structure, power, jobs, supervision, and decision making Understand the potential dehumanization of people by computers and other potential negative impacts of information technology Identify some of the major societal effects of information technology Describe the many threats to information security Understand the various defense mechanisms of information systems Explain IT auditing and planning for disaster recovery

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Chapter Overview Ethical Issues

Impacts of IT on Organizations and Jobs • A Framework • How will for Ethics Organizations be • Protecting Privacy changed? • Protecting • How will Jobs be Intellectual Property Changed? •Other Considerations Societal Impacts and Internet Communities • Improved Quality of life • Internet Communities • Telecommuting

Security is a Concern for Everyone • Threats to information Systems • Systems Vulnerability • Computer Crimes

Impacts on Individuals at Work • Will my Job be Eliminated? • Dehumanization and Psychological Impacts • Impact on Health and Safety • Other Impacts Protecting Information Systems • Defence Strategies: How do we Protect IT? • Auditing Information Systems • Disaster Recovery Planning • Security in the 21st Century

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Case: Music Retailer Finds

Commerce in Communities  The Business Problem N2K, a retailer in the music industry, merged with an Internet Music store called Music Boulevard (www.musicblvd.com), but sales were small

The Solution

The company created genre-specific sites where each is focused on the specific needs of an Internet community. The Internet is viewed as a network that provides new kinds of “spaces,” a world of online communities and virtual chat room.

The Results

Increased sales dramatically High level of members’ loyalty to the site Minimal inventory cost

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Case (continued…) What have we learned from this case?? The concept of internet communities can offer the opportunity to significantly increase an online company’s revenue and profit IT has had an impact on society as well as on corporate operations and marketing methods

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Ethical Issues Ethics is a branch of philosophy that deals with what is considered to be right and wrong What is unethical is not necessarily illegal Codes of ethics is a collection of principles intended as a guide for members of a company or an association Ethics differ in countries and companies

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Ethical Issues (continued …) A Framework for Ethics Issues Privacy Issues Accuracy Issues Property Issues

 What information about oneself should an individual be required to reveal to others?  What kind of surveillance can an employer use on its employees?  Who is responsible for the authenticity, fidelity, and accuracy of information collected?  How can we ensure that information will be processed properly and presented accurately to users?  Who owns the information?  What are the just and fair prices for its exchange?

Accessibility  Who is allowed to access information?  How much should be charged for permitting Issues accessibility to information?

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Ethical Issues (continued …) Protecting Privacy privacy - different things to different people four stages of privacy solitude

intimacy

anonymity

reserve

too expensive, cumbersome, and complex to invade information privacy personal computers, powerful software, large databases, and the internet have created an entirely new dimension of accessing and using personal data

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Ethical Issues (continued …) Electronic Surveillance (monitoring computer users) American Civil Liberties Union (ACLU) estimates that tens of millions of computer users are monitored

Personal Information in Databases people may not appreciate the intrusion of vendors commercial companies advise individuals about how to protect their rights, and it monitors several database

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Ethical Issues (continued …) Information on Internet Bulletin Boards and Newsgroups how does society keep owners of bulletin boards from disseminating information that may be offensive to readers? highlights the conflict between freedom of speech, privacy, and ethics

Privacy codes and Polices helps organizations avoid legal problems

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

International Aspects of Privacy Guidelines to protect individuals’ privacy in the electronic age in Europe are very strict Collection limitation

Data quality

Purpose specification

Use limitation

Security safeguards

Openness

Individual participation

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Data Collection

 Data should be collected on individuals only for the purpose of accomplishing a legitimate business objective.  Data should be adequate, relevant, and not excessive in relation to the business objective.  Individuals must give their consent before data pertaining to them can be gathered.

Data Accuracy

 Sensitive data gathered on individuals should be verified before it is entered into the database.  Data should be accurate and, where and when necessary, keep current.  The file should be made available so the individual can ensure that the data are correct.  If there is disagreement about the accuracy of the data, the individual’s version should be noted and included with any disclosure of the file.

Data Confidentiality

Privacy Policy Guidelines A Sampler

 Computer security procedures should be implemented to provide reasonable assurance against unauthorized disclosure of data. They should include physical, technical, and administrative security measures.  Third parties should not be given access to data without the individual’s knowledge or permission, except as required by law.  Disclosures of data, other than the most routine, should be noted and maintained for as long as the data are maintained.  Data should not be disclosed for reasons incompatible with the business objective for which they are collected.

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Protecting Intellectual Property Intellectual property - the intangible property created by individuals or corporations Protected under Copyright - a statutory grant that provides the creators of intellectual property with ownership of it for 28 years Trade secret - intellectual work such as a business plan which is a company secret and is not based on public information Patent - a document that grants the holder exclusive rights on an invention for 17 years

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

The Impacts of IT on Organizations and Jobs How will organizations be changed? Flatter organizational hierarchies

It is reasonable to assume that fewer managerial levels will exist in many organizations, and there will be fewer staff and line managers.

Changes in supervision an employee’s work is performed online and stored electronically introducing the possibility for greater electronic supervision.

Powers and status Knowledge is power.

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

The Impacts of IT on Organizations and Jobs How will jobs be changed? Job content Changes in job content occur when work is redesigned

Employee career ladders the use of IT may short-cut a portion of learning curve by capturing and more efficiently managing knowledge

The manager’s job It can change the manner in which many decisions are made and consequently change managers’ jobs.

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Impacts on Individuals at Work Will my Job be Eliminated? IT can significantly increase the productivity of employees, restructuring their job content and changing the skill requirement of many jobs. Because computers are becoming “smarter” and more capable as time passes, the competitive advantage of replacing people with machines is increasing rapidly. But many computer-related job are being created.

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Impacts on Individuals at Work (continues …) Dehumanization

computers reduce or eliminate the human element that was present in the non-computerized systems computer-supported activities may dehumanize people Psychological impacts people may feel depression and loneliness if they work and shop from their living rooms the lack of social contacts could be damaging to children’s development if they are schooled at home through IT

Job satisfaction Some jobs may become more routine and less satisfying

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Impacts on Individuals at Work (continues …)

Impacts on Health and Safety Job stress - computerization has created an ever-increasing workload on many people

Video display terminals (VDTs) - radiation exposure has been associated with cancer and other health-related problems

Repetitive strain injuries - backaches and muscle tension in the wrists and fingers

Lessening the Negative Impact on Health and Safety - ergonomic techniques focus on creating an environment for workers that are well lit, comfortable and safe

Drug Store

Department Store

Education and Medical System Supermarket

Education Administration and Records

Computer Assisted Education

Money Oared Real Estate Stocks

Integrated Financial Database

Entertainment , Business, and Education

Home Information System

Hospital Administration and Treatment

Central Medical Database

Public and Private Service System Environmental and appliances

Security

Travel Reservations

Leisure Time System

Insurance and Brokerage

Accounting and Legal

Police and Fire

Theatre and Entertainment

Hotel Reservations

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Information Systems and the Individuals The Individual Electronic Funds Transfer / Electric Commerce Financial System

Consumer System

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Societal Impacts Improved Quality of Life Opportunities for people with disabilities The integration of intelligent systems, such as speech and vision recognition, into a computer-based information system can create new employment opportunities for people with disabilities. Improvements in heath care IT brought about major improvements in health care delivery, ranging from better and faster diagnoses, to expedited research and development of new drugs, to more accurate monitoring of critically ill patients.

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Societal Impacts (continued …) Improved Quality of Life Help for the consumer IT systems help the lay person perform tasks that require expertise. Robots performing hard and hazardous labor Robots can work in uncomfortable or dangerous environments. Crime fighting Improvement in education and other benefits

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Internet Communities Communities of Interest : provide place for people to interact with each other on a specific topic  Communities of Relations : be organized around certain life experiences  Communities of Fantasy : provide place for participants create imaginary environments Communities of Transactions : facilitate buying and selling Communities of Professionals : support professional communication and the exchange of valuable work or research-related information

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Telecommuting  Benefits To the employees

• Less stress • Ability to go to school while working • Improved family life • Money is saved • Commuting time is saved • Ability to control schedule and manage time better • Employment opportunities for housebound people

To the organization

To society

• Increased productivity • Less use of • Reduced real estate cost fossil fuels • Reduced cost of parking • Fewer • Ability to retain traffic skilled employees problems; • Ability to tap remote including labor pool less air • Lower labor and pollution • More absenteeism cost • Better interaction of business for employees with clients suburbs and and suppliers rural areas

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Telecommuting (continued …)  Telecommuting and Productivity Increase productivity by increased motivation and satisfaction reduced absenteeism forces managers to manage by results instead of by overseeing

Reduce productivity by some employees need to work with others not all jobs can be done while telecommuting not all managers can participate

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Security Security Threats Database Database Access rules Radiation

Systems Software Hardware Processor

Tap

Crosstalk

Terminals Systems Programmer

Operator Authorizer

Application Programmer

External Environment

Terminal User

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Computer Crimes Types of computer crimes computers are the target of the crime computers are the medium of the attack by creating an environment in which a crime or fraud can occur computers are the tool by which the crime is perpetrated computers are used to intimidate or deceive

Criminals hackers - outsider people who penetrate a computer system crackers - malicious hackers who may represent a serious problem for organizations

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Computer Crime (continues ...) Computer Crime Methods of Attack Data tampering Programming fraud Viruses receiving its name from the program’s ability to attach itself to other computer programs, causing them to become viruses themselves

Representative federal laws Computer Fraud and Abuse Act (1986) Computer Security act of 1987

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Protecting Information Systems Some of the reasons that make it complex or expensive to defend information systems Hundreds of potential threats exists. Computing resources may be situated in many locations. Many individuals control information assets. Computer networks can be outside the organization and difficult to protect. People tend to violate security procedures because the procedures are inconvenient

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Protecting Information Systems (continued …) Defense strategies Controls for prevention and deterrence - prevent errors from occurring, deter criminals from attacking the system, deny access to unauthorized people

Detection - the earlier it is detected, the earlier it is to combat and the less damage

Limitation - minimizing losses once a malfunction has occurred

Recovery - explains how to fix a damaged information system as quickly as possible

Correction - prevent the problem from occurring again

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Protecting Information Systems (continued …)

General Controls - protect the system regardless of the specific application Physical controls provides protection against most natural hazards as well as against some human-created hazards Access controls restrict unauthorized user access to a portion of a computer system or to the entire system

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Protecting Information Systems (continued …)

General Controls (CONT’) Biometric controls verify the identity of a person, based on physiological or behavioral characteristics hand geometry, blood vessel pattern in the retina of an eye, voice, signature, keystroke dynamics, facial thermography, fingerprints Data security controls protect data from accidental or intentional disclosure to unauthorized persons, or from unauthorized modification or destruction

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Protecting Information Systems (continued …)

Application controls - protect specific

application Input controls prevent data alteration or loss Processing controls allow only authorized users to access certain programs or facilities monitor the computer’s use by individuals Output controls ensure that outputs are sent only to authorized personnel

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Network Protections and Firewalls Access Control guards against unauthorized dial-in attempts

Encryption encodes regular digitized text into unreadable scrambled text or numbers, to be decoded upon receipt

Cable Testers finds almost any fault that can occur with LAN cabling

Firewalls enforces an access control policy between two networks do not protect against viruses

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Auditing Information Systems Audit additional layer of controls or safeguards

Types of Auditors and Audits internal auditor audit information systems external auditor reviews the findings of the internal audit and the inputs, processing, and outputs of information systems

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

How is Auditing Executed? Auditing around the computer

Auditing through the computer

Auditing with the computer

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Disaster Recovery Planning Disaster Recovery of Information Systems the chain of events linking planning to protection to recovery from a disaster keep the business running after a disaster occurs

Disaster Avoidance an approach oriented toward prevention

Back-up Arrangements an extra copy of data and/or programs are kept in another location

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

Disaster Recovery Planning (continued …)

Planning for a recovery from Disasters Isolate data that change frequently Keep management and technical procedures separate Don’t include data in the plan if it can be obtained elsewhere after the disaster Write a plan that is independent of organization, positions, and personnel Gather data on a daily basis

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

IT Security in the 21st Century Computer control and security are receiving increased attention almost 70 percent of all U.S. corporations have battled computer viruses the latest technologies need to be employed to protect against viruses and computer crimes using intelligent systems for detecting intruders and crimes

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

How Technologies Improved IT Security

Area IT Solution Improved systems reliability Fault tolerance systems, multiple disks Early or real time detection Intelligent agents monitor performance, of intrusion, failures, or compare to standards, analyze profiles noncompliance with rules (e.g., Network Associates Inc.) Auditing information systems Neural computer can detect fraud and expert systems evaluate controls Troubleshooting Quick diagnosis by expert system, especially on networks and the Internet Disaster planning Internet-based expert systems for selfassessment including planning and disaster recovery Access protection Smart cards

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

What’s in IT for Me? For Accounting Accountant involved in Web-based auditing, security of data, and fraud prevention and detection programs

For Finance Finance and banking industry is concerned about security and auditing in electronic commerce, computer criminals, the hazards and the available controls

Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security

What’s in IT for Me? (continued …)  For Marketing Marketers do not want to be sued because of invasion of privacy in data collected, nor do they want their innovative marketing strategies to fall into the hands of competitors

For Human Resources Management Motivation, supervision, career development, recruiting, and more are all affected by IT Telecommuting is implemented by HRM

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