BUS361-S210-S6.txt

• Stockholder Theory – managers are agents of the stockholders, and their only ethical responsibility is to increase the profits of the business without violating the law or engaging in fraudulent practices
• Social Contract Theory – companies have ethical responsibilities to all members of society, which allow corporations to exist based on a social contract
• Stakeholder Theory – managers have an ethical responsibility to manage a firm for the benefit of all its stakeholders, which are all individuals and groups that have a stake in or claim on a company

• Proportionality – the good achieved by the technology must outweigh the harm or risk
• Informed Consent – those affected by the technology should understand and accept the risks
• Justice – the benefits and burdens of the technology should be distributed fairly
• Minimized Risk – even if judged acceptable by the other three guidelines, the technology must be implemented so as to avoid all unnecessary risk

• As a responsible end-user:
• Acting with integrity
• Increasing professional competence
• Setting high standards of personal performance
• Accepting responsibility for one’s own work
• Advancing the health, privacy, and general welfare of the public

• The unauthorized use, access, modification, and destruction of hardware, software, data, or network resources
• The unauthorized release of information
• The unauthorized copying of software
• Denying an end user access to his or her own hardware, software, data, or network resources
• Using or conspiring to use computer or network resources illegally to obtain information or tangible property

• Hacking is:
• The obsessive use of computers
• The unauthorized access and use of networked computer systems

• Electronic Breaking and Entering
• Hacking into a computer system and reading files, but neither stealing nor damaging anything

A malicious or criminal hacker who maintains knowledge of the vulnerabilities found for private advantage

• Denial of Service – hammering a website’s equipment with too many requests for information, effectively clogging the system, slowing performance or even crashing the site
• Scans – widespread probes of the Internet to determine types of computers, services, and connections
• Sniffer – programs that covertly search individual packets of data as they pass through the Internet, capturing passwords or entire contents
• Spoofing – faking an e-mail address or Web page to trick users into passing along critical information like passwords or credit card numbers

• Trojan Horse – a program that, unknown to the user, contains instructions that exploit a known vulnerability in some software
• Back Doors – a hidden point of entry to be used in case the original entry point has been detected or blocked
• Malicious Applets – tiny programs that misuse your computer’s resources, modify files on the hard disk, send fake e-mail, or steal passwords
• War Dialing – programs that automatically dial thousands of telephone numbers in search of a way in through a modem connection

• Logic Bombs – an instruction in a computer program that triggers a malicious act
• Buffer Overflow – a technique for crashing or gaining control of a computer by sending too much data to the buffer in a computer’s memory
• Password Crackers – software that can guess passwords
• Social Engineering – a tactic used to gain access to computer systems by talking unsuspecting company employees out of valuable information such as passwords
• Dumpster Diving – sifting through a company’s garbage to find information to help break into their computers

• Many computer crimes involve the theft of money
• The majority are “inside jobs” that involve unauthorized network entry and alternation of computer databases to cover the tracks of the employees involved
• Many attacks occur through the Internet
• Most companies don’t reveal that they have been targets or victims of cybercrime

• Unauthorized use of computer systems and networks is time and resource theft:
• Doing private consulting
• Doing personal finances
• Playing video games
• Unauthorized use of the Internet or company networks

• Used to monitor network traffic or capacity
• Find evidence of improper use

• Unauthorized copying of computer programs
• Licensing
• Purchasing software is really a payment for a license for fair use
• Site license allows a certain number of copies

• Intellectual Property
• Copyrighted material
• Includes such things as music, videos, images, articles, books, and software
• Copyright Infringement is Illegal
• Peer-to-peer networking techniques have made it easy to trade pirated intellectual property

Illegal downloading of music and video is down and continues to drop

• A virus is a program that cannot work without being inserted into another program
• A worm can run unaided
• These programs copy annoying or destructive routines into networked computers
• Copy routines spread the virus

• The Internet and online services
• Email and file attachments
• Disks from contaminated computers
• Shareware

• Cost of the top five virus families
• Nearly 115 million computers in 200 countries were infected in 2004
• Up to 11 million computers are believed to be permanently infected
• In 2004, total economic damage from virus proliferation was $166 to $202 billion
• Average damage per computer is between $277 and $366

• Adware:
• Software that purports to serve a useful purpose, and often does allows advertisers to display pop-up and banner ads without the consent of the computer users
• Spyware:
• Adware that uses an Internet connection in the background, without the user’s permission or knowledge
• Captures information about the user and sends it over the Internet

• Spyware can steal private information and also add advertising links to Web pages
• Redirect affiliate payments
• Change a users home page and search settings
• Make a modem randomly call premium-rate phone numbers
• Leave security holes that let Trojans in
• Degrade system performance
• Removal programs are often not completely successful in eliminating spyware

• The power of information technology to store and retrieve information can have a negative effect on every individual’s right to privacy
• Personal information is collected with every visit to a Web site
• Confidential information stored by credit bureaus, credit card companies, and the government has been stolen or misused

• Violation of Privacy
• Accessing individuals’ private email conversations and computer records
• Collecting and sharing information about individuals gained from their visits to Internet websites
• Computer Monitoring always knowing where a person is
• Mobile and paging services are becoming more closely associated with people than with places

• Computer Matching:
• Using customer information gained from many sources to market additional business services
• Unauthorized Access of Personal Files
• Collecting telephone numbers, email addresses, credit card numbers, and other information to build customer profiles

• There are multiple ways to protect your privacy
• Encrypt email
• Send newsgroup postings through anonymous remailers
• Ask your ISP not to sell your name and information to mailing list providers and other marketers
• Don’t reveal personal data and interests on online service and website user profiles

• Electronic Communications Privacy Act and Computer Fraud and Abuse Act
• Prohibit intercepting data communications messages, stealing or destroying data, or trespassing in federal-related computer systems
• U.S. Computer Matching and Privacy Act
• Regulates the matching of data held in federal agency files to verify eligibility for federal programs

• Other laws impacting privacy and how much a company spends on compliance
• Sarbanes-Oxley (US financial reporting requirements)
• Health Insurance Portability and Accountability Act (HIPAA)
• Gramm-Leach-Bliley (protect consumers’ personal financial info)
• USA Patriot Act (Obstruct Terrorism… )
• California Security Breach Law
• Securities and Exchange Commission rule 17a-4

• The opposite side of the privacy debate
• Freedom of information, speech, and press
• Biggest battlegrounds
• Bulletin boards Email boxes
• Online files of Internet and public networks
• Weapons used in this battle:
• Spamming
• Flame mail
• Libel laws
• Censorship

• Spamming -Indiscriminate sending of unsolicited email messages to many Internet users
• Flaming -Sending extremely critical, derogatory, and often vulgar email messages or newsgroup posting to other users on the Internet or online services. Especially prevalent on special-interest newsgroups

• Laws intended to regulate activities over the Internet or via electronic communication devices
• Encompasses a wide variety of legal and political issues
• Includes intellectual property, privacy, freedom of expression, and jurisdiction

• The intersection of technology and the law is controversial
• Some feel the Internet should not be regulated
• Encryption and cryptography make traditional form of regulation difficult
• The Internet treats censorship as damage and simply routes around it

Debate continues regarding the applicability of legal principles derived from issues that had nothing to do with cyberspace

• IT creates new jobs and increases productivity
• It can also cause significant reductions in job opportunities, as well as requiring new job skills

• Using computers to monitor the productivity and behavior of employees as they work Criticized as unethical because it monitors individuals, not just work, and is done constantly
• Criticized as invasion of privacy because many employees do not know they are being monitored

• IT has eliminated monotonous or obnoxious tasks
• However, some skilled craftsperson jobs have been replaced by jobs requiring routine, repetitive tasks or standby roles
• Individuality -Dehumanizes and depersonalizes activities because computers eliminate human relationships
• Inflexible systems

• Cumulative Trauma Disorders (CTDs)
• Disorders suffered by people who sit at a PC or terminal and do fast-paced repetitive keystroke jobs
• Carpal Tunnel Syndrome
• Painful, crippling ailment of the hand and wrist
• Typically requires surgery to cure

Designing healthy work environments that are safe, comfortable, and pleasant for people to work in, thus increasing employee morale and productivity

• Many of the detrimental effects of information technology are
• caused by individuals or organizations that are not accepting the ethical responsibility fortheir actions. Like other powerful technologies, information technology possesses the potential for great harm or great good for all human kind.

• Why have there been so many recent incidents of data security breaches and loss of customer data by reputable companies?
• More opportunities to steal data
• More valuable data
• More tools available
• Competitive pressures lead to cut corners
• More pressure to admit data stolen
• More interest in reporting stolen data

• What security safeguards must companies have to deter electronic break-ins into their computer networks, business applications, and data resources?
• Specific safeguards include:
• Physical security
• Network security
• Encryption
• Policies and procedures
• Training
• Security audits
• Monitor the network
• Monitor the environment
• Keep only necessary data

The goal of security management is the accuracy, integrity, and safety of all information system processes and resources.

• Encryption – data transmitted in scrambled form and unscrambled by computer systems for authorized users only
• Firewalls – a gatekeeper system that protects a company’s intranets and other computer networks from intrusion by providing a filter and safe transfer point for access to and from the Internet and other networks

• E-mail Monitoring – use of content monitoring software that scans for troublesome words that might compromise corporate security
• Virus Defenses – centralize the distribution and updating of antivirus software
• Denial of Service Defenses:
• At the zombie machines – set and enforce security policies
• At the ISP – monitor and block traffic spikes
• At the victim’s website – create backup servers and network connections

• Security Codes – multilevel password system used to gain access into the system
• Backup Files – duplicate files of data or programs
• Security Monitors – software that monitors the use of computer systems and networks and protects them from unauthorized use, fraud, and destruction
• Biometrics – computer devices that measure physical traits that make each individual unique
• Computer Failure Controls – devices used to prevent computer failure or minimize its effects

• In the event of a system failure, fault-tolerant systems have redundant processors, peripherals, and software that provide
• Fail-over capability-shifts to back up components
• Fail-save capability-the system continues to operate at the same level
• Fail-soft capability-the system continues to operate at a reduced but acceptable level

• A disaster recovery plan contains formalized procedures to follow in the event of a disaster:
• Which employees will participate
• What their duties will be
• What hardware, software, and facilities will be used
• Priority of applications that will be processed
• Use of alternative facilities
• Offsite storage of databases

Methods and devices that attempt to ensure the accuracy, validity, and propriety of information system activities

• IT security audits review and evaluate whether proper and adequate security measures and management policies have been developed and implemented.
• This typically involves verifying the accuracy and integrity of the software used, as well as the input of data and output produced by business applications.

• Three things happened in the past few years
• The Internet boom inspired businesses to connect their networks
• Companies rely on their intranets for essential applications without which their businesses could not function
• It became apparent that maintaining PCs on a network is very, very expensive
• These things created an urgent need for centralization

• Centralization of computing with large mainframes
• Next-Downsizing and moving back to decentralization
• Current-Centralized control over the management of IT while serving the strategic needs of business units
• Hybrid of centralized and decentralized components

• Application development management involves
• Systems analysis and design
• Prototyping
• Applications programming
• Project management
• Quality assurance
• System maintenance

IS operations management is concerned with the use of hardware, software, network, and personnel resources in data centers

• Computer system operations
• Network management
• Production control
• Production support

• Software packages that monitor the processing of computer jobs
• Help develop a planned schedule of computer operations that can optimize computer system performance
• Product detailed statistics that are invaluable for effective planning and control of computing capacity
• Chargeback Systems
• Allocates costs to users based on the information service rendered
• Process Control Capabilities
• Systems that not only monitor but automatically control computer operations at large data centers

• Recruiting, training and retaining qualified IS personnel
• Evaluating employee job performance and rewarding outstanding performance with salary increases and promotions
• Setting salary and wage levels Designing career paths

• Chief Information Officer (CIO)
• Oversees all uses of information technology in many companies, and brings them into alignment with strategic business goals
• Chief Technology Officer (CTO)
• In charge of all information technology planning and deployment
• Manages the IT platform
• Second in command
• E-commerce architect
• Technical team leader
• Practice manager
• Systems analyst

• Technology Management
• All information technologies must be managed as a technology platform for integrating business applications
• Both internally or externally focused
• The Internet, intranets, electronic commerce and collaboration technologies, CRM software, enterprise resource planning, and supply chain management
• Often the primary responsibility of a chief technology officer

• Business units that support and manage end user and workgroup computing
• Can be done with information centers staffed with user liaison specialists or with web-enabled intranet help desks

• Troubleshooting problems
• Gathering and communicating information
• Coordinating educational efforts
• Helping with end user application development

The purchase of goods or services from third-party partners that were previously provided internally

• Relocation of an organization’s business processes to a lower cost location
• This location is typically overseas
• Can be either production or service
• Growth of services offshoring is linked to
• Availability of large amounts of reliable and affordable communication infrastructure
• Digitization of many services

• IT not used effectively
• Computerizing traditional business processes instead of developing innovative e-business processes
• IT not used efficiently
• Poor response times
• Frequent downtimes
• Poorly managed application development

• Managerial and end user involvement
• Key ingredient to high-quality information system performance
• Involve business managers in IT management
• Governance structures, such as steering committees

• Companies around the world are developing new models to operate competitively in a digital economy
• These models are structured, yet agile, global, yet local
• They concentrate on maximizing the risk adjusted return from both knowledge and technology assets

• Political challenges
• Many countries regulate or prohibit the transfer of data across their national boundaries
• Others severely restrict, tax, or prohibit imports of hardware and software
• Some have local content laws that specify the portion of the value of a product that must be added in that country if it is to be sold there
• Others require a business to spend part of the revenue they earn in a country in that nation’s economy

• Geoeconomic challenges
• Physical distances are still a major problem
• It may take too long to fly in specialists
• It is difficult to communicate in real time across 24 time zones
• Many countries do not have good telephone and telecommunications services
• It may be hard to find skilled local workers
• There can be great differences in the cost of living and labor costs between countries

• Cultural challenges
• Languages
• Cultural interests
• Religions
• Customs
• Political philosophies
• Global IT managers need cultural training before they are sent on assignment
• Different work styles and business relationships

• Business requirements caused by the nature of the industry and its competitive or environmental forces
• Examples of global drivers:
• Customers
• Products
• Operations
• Resources
• Collaboration

• Hardware Difficulties
• High prices
• High tariffs
• Import restrictions
• Long lead times for government approvals
• Lack of local service or spare parts
• Lack of documentation tailored to local conditions
• Software Difficulties
• Packages developed in Europe may be incompatible with American or Asian versions
• The software publisher may refuse to supply markets that disregard software licensing and copyright agreements

• The Internet as a Global IT Platform
• The Internet- An interconnected matrix that reaches tens of millions of users in over 100 countries
• Business environment is free of traditional boundaries and limits
• Without incurring massive cost outlays for telecommunications, companies can
• Expand markets
• Reduce communications and distribution costs
• Improve profit margins

• Will you have to develop a new navigational logic to accommodate cultural preferences?
• What content will you translate, and what content will you create from scratch to address regional competitors or products that differ from those in the U.S.?
• Should your multilingual effort be an adjunct to your main site, or will you make it a separate site, perhaps with a country-specific domain?
• What kinds of traditional and new media advertising will you have to do in each country to draw traffic to your site?
• Will your site get so many hits that you’ll need to set up a server in a local country?
• What are the legal ramifications of having your website targeted at a particular country, such as laws on competitive behavior, treatment of children, or privacy?

• Transborder Data Flows may be viewed as violating a nation’s sovereignty because it avoids customs duties and regulations
• Laws protecting the local IT industry from competition
• Laws protecting local jobs
• Privacy legislation
• Key data privacy provisions
• Notice of purpose and use of data collected
• Ability to opt out of third-party distribution of data
• Access for consumers to their information
• Adequate security, data integrity, and enforcement provisions

• The struggle between Internet censorship and openness at the national level revolves around
• Controlling the conduits
• Filtering the flows
• Punishing the purveyors
• Most of the world has decided that restricting Internet access is not a viable policy
• Restricting access also hurts a country’s opportunities for economic growth and prosperity

• High Government Access Fees-Kazakhstan, Kyrgyzstan
• Government Monitored Access-China, Iran, Saudi Arabia, Azerbaijan, Uzbekistan
• Government Filtered Access-Belarus, Cuba, Iraq, Tunisia, Sierra Leone, Tajikistan, Turkmenistan, Vietnam
• No Public Access Allowed-Burma, Libya, North Korea

• Conflicts over local versus global system requirements
• Difficulties in agreeing on common system features
• Disturbances caused by systems implementation and maintenance activities
• Global standardization of data definitions

• Transform an application used by the home office into a global application
• Set up a multinational development team with key people from several subsidiaries to ensure that the system design meets the needs of local sites as well as corporate headquarters
• Parallel Development – parts of the system are assigned to different subsidiaries and the home office to develop at the same times based on the expertise and experience at each site
• Centers of Excellence – an entire system may be assigned for development to a particular subsidiary based on their expertise in the business or technical dimensions needed for successful development
• Offshore Development – outsource the development work to a global development company