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Executive Dilemmas in the Information Age

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1 Executive Dilemmas in the Information Age
Ch. 5 Case Study – Pg 46 Matt Bushmann

2 Introduction I.T. has evolved beyond infrastructure
I.T. is used to support business strategy Use of I.T. is needed to survive Board and Executive Teams increased use of I.T. I.T. issues: Compliance, Ethics, and Security

3 Intro Cont. Computers = Key business tools
Generate, Process, and Store Crucial Information Executives must understand how I.T. can affect a business

4 Stolen Proprietary Info
Executive accepted a job with a competitor - stole proprietary information Hard Drive from Laptop & Desktop analyzed Exec. Downloaded Process Specifications Distributor Agreements between Exec and Competitor revealed intent to provide info for additional options

5 Sexual Harassment Woman employee accused supervisor
Fired for “poor performance” She sued her ex-boss and company Plaintiff's attorney hire computer company to analyze computer Recovered deleted s No longer “he said/she said” issue

6 Stolen Trade Secrets Board of directors demote CEO
He was later terminated Planned to quit same time he was fired Plans to establish competitive company Took two computers; 4 days later returned Attorney send company for analysis File directory deleted during 4 day period “To Do List” – Destroy evidence on Computer Company’s Database value - $100 Million

7 Explain why understanding technology, especially in the areas of security and ethics, is important for a CEO. How do CEO’s actions affect the organizational culture? Security Make sure important data is not leaked to competitors Beware of hackers Ethics Stakeholders expect ethical practices Legal issues Actions affect culture “If the CEO did it, why can’t I do it?”

8 Competitors use technology Suppliers use technology
Identify why executives in nontechnological industries need to worry about technology and its potential business ramifications. Competitors use technology Suppliers use technology Company may develop competitive edge vs. competitor Customers expect use of technology in today’s world

9 Threats Opportunities
Describe why continuously learning about technology allows an executive to better analyze threats and opportunities. Threats If you are not learning you’re behind Must be continuously evolving Keep an eye on your competitors Opportunities Gain competitive edge Improve effectiveness and efficiency

10 Identify three things that a CPO could do to prevent the above issues.
Constantly scan hard drives for suspicious activity Provide control systems that alarm CPO when certain words are used in s Make sure all desktops are kept inside the building

11 Current Information Recent Survey of 600 workers Desirable Information
More than 50% said they have already downloaded competitive corporate data and plan to use it as a negotiating tool When threatened to be fired tomorrow, 71% said that they would take corporate data with them to their next employer Desirable Information Customer and contact databases Plans and proposals; product information Access and password codes

12 Current Info Cont. Employer in the U.K. might face up to 10,000 Pounds ($13,806) in recruiting costs for senior manager fired after sexual harassment case 3 reasons for increase via Poor monitoring and software controls Failure to communicate company policy Failure to communicate personal responsibility to employees

13 Current Info Cont Pulte Homes – Alburquerque, NM
Top executive stole $1 Million market study Yahoo sues former employee Trade secrets were stolen and sold to MForma Group Inc. International Rectifier Corp. Former CEO stole intellectual property, information, and technology related to company’s research on computer chip material

14 Questions?

15 Works Cited Cabrera, Alice. “Chip Company Suing Ex-CEO.” Jan Los Angeles Business Journal. 9 March Cavicchi, Jon. “Stolen Trade Secrets?: Lawsuit Claims Exec Took $1M Study From Pulte Homes” April Los Angeles Business Journal. 9 March Praveen, Radhika. “Sexual Harassment Goes Electronic.” June Techworld. 9 March

16 Works Cited Cont. Schwartz, Barry. “Yahoo Sues Ex-Employee for Stolen Trade Secrets. March Search Engine Watch. 9 March “Stolen Data and Proprietary Information.” KSC Enterprises. 9 March

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