1. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 1 CHAPTER 15 IMPLEMENTING IT: ETHICS, IMPACTS, AND SECURITY

2. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 2 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

3. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 3 Chapter Overview Ethical Issues A Framework for Ethics Protecting Privacy Protecting Intellectual Property Impacts of IT on Organizations and Jobs How will Organizations be changed? How will Jobs be Changed? Other Considerations Impacts on Individuals at Work Will my Job be Eliminated? Dehumanization and Psychological Impacts Impact on Health and Safety Other Impacts 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 Protecting Information Systems Defence Strategies: How do we Protect IT? Auditing Information Systems Disaster Recovery Planning Security in the 21st Century

4. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 4 Case: Music Retailer Finds Commerce in Communities  The Business Problem  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.  N 2 K, a retailer in the music industry, merged with an Internet Music store called Music Boulevard (www.musicblvd.com), but sales were small  The Results  Increased sales dramatically  High level of members’ loyalty to the site  Minimal inventory cost

5. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 5  What have we learned from this case?? Case (continued…)  IT has had an impact on society as well as on corporate operations and marketing methods  The concept of internet communities can offer the opportunity to significantly increase an online company’s revenue and profit

6. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 6 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

7. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 7 Ethical Issues (continued …)  A Framework for Ethics Issues Privacy 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? Accuracy Issues 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? Property Issues Who owns the information? What are the just and fair prices for its exchange? Accessibility Issues Who is allowed to access information? How much should be charged for permitting accessibility to information?

8. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 8 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

9. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 9  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 Ethical Issues (continued …)

10. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 10  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 Ethical Issues (continued …)

11. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 11  Guidelines to protect individuals’ privacy in the electronic age in Europe are very strict International Aspects of Privacy  Collection limitation  Data quality  Purpose specification  Use limitation  Security safeguards  Openness  Individual participation

12. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 12 Privacy Policy Guidelines - A Sampler 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 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.

13. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 13  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 Protecting Intellectual Property

14. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 14  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. The Impacts of IT on Organizations and Jobs

15. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 15  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. The Impacts of IT on Organizations and Jobs

16. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 16 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.

17. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 17 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

18. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 18  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 Impacts on Individuals at Work (continues …)

19. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 19 Information Systems and the Individuals The Individual Electronic Funds Transfer / Electric Commerce Leisure Time System Hotel Reservations Theatre and Entertainment Travel Reservations Public and Private Service System Police and Fire Accounting and Legal Insurance and Brokerage Home Information System Security Environmental and appliances Entertainment, Business, and Education Education and Medical System Central Medical Database Hospital Administration and Treatment Computer Assisted Education Education Administration and Records Financial System Integrated Financial Database Money Oared Real Estate Stocks Consumer System Supermarket Department Store Drug Store

20. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 20 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.

21. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 21 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

22. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 22 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

23. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 23 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 Increased productivity Reduced real estate cost Reduced cost of parking Ability to retain skilled employees Ability to tap remote labor pool Lower labor and absenteeism cost Better interaction of employees with clients and suppliers To society Less use of fossil fuels Fewer traffic problems; including less air pollution More business for suburbs and rural areas

24. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 24 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

25. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 25 Security  Security Threats Processor Hardware Systems Software Application Programmer Terminals Terminal User Systems Programmer External Environment Database Radiation Operator Authorizer Database Access rules Crosstalk Tap

26. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 26  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 Computer Crimes

27. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 27  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 Computer Crime (continues...)

28. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 28  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 Protecting Information Systems

29. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 29  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 Protecting Information Systems (continued …)

30. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 30 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

31. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 31 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

32. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 32 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

33. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 33  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 Network Protections and Firewalls

34. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 34  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 Auditing Information Systems

35. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 35 How is Auditing Executed? Auditing around the computer Auditing through the computer Auditing with the computer

36. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 36  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 Disaster Recovery Planning

37. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 37  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 Disaster Recovery Planning (continued …)

38. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 38 IT Security in the 21 st 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

39. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 39 How Technologies Improved IT Security AreaIT Solution Fault tolerance systems, multiple disksImproved systems reliability Intelligent agents monitor performance, compare to standards, analyze profiles (e.g., Network Associates Inc.) Early or real time detection of intrusion, failures, or noncompliance with rules Neural computer can detect fraud and expert systems evaluate controls Auditing information systems Quick diagnosis by expert system, especially on networks and the Internet Troubleshooting Internet-based expert systems for self- assessment including planning and disaster recovery Disaster planning Smart cardsAccess protection

40. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 40  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 What’s in IT for Me?

41. Introduction to Information Technology Turban, Rainer and Potter Chapter 15 Implementing IT: Ethics, Impacts, and Security 41 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