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

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Presentation on theme: "Executive Dilemmas in the Information Age Ch. 5 Case Study – Pg 46 Matt Bushmann."— Presentation transcript:

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 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 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  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 ysuingexceo.html  Cavicchi, Jon. “Stolen Trade Secrets?: Lawsuit Claims Exec Took $1M Study From Pulte Homes” April Los Angeles Business Journal. 9 March cretslawsuitc.html  Praveen, Radhika. “Sexual Harassment Goes Electronic.” June Techworld. 9 March eatureid=2600

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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