Business Strategies and Ethical Issues in IT

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Questions and Answers

What is a key concern associated with the rapid decline in data storage costs?

Higher barriers for data access

Increased costs for software development

Ability to maintain detailed databases on individuals (correct)

Difficulty in maintaining data accuracy

Which factor contributes to ethical issues due to the growth of mobile devices?

Greater accessibility of applications

Ability to track individual cell phones without user consent (correct)

Increased privacy rights for users

Enhanced data encryption methods

What does accountability and control in IT systems primarily determine?

Who is responsible for consequences of IT usage (correct)

The technical specifications of hardware

The financial profitability of IT investments

The security measures employed by organizations

How does technology trend related to data analysis raise ethical concerns?

It allows for detailed profiling of individual behavior Signup and view all the answers

What aspect of system quality is crucial to avoid critical errors in certain sectors?

Accuracy, reliability, and security standards Signup and view all the answers

Which strategy involves offering products at lower prices than competitors?

Low-cost leadership Signup and view all the answers

What is the main goal of product differentiation?

To change customer convenience and experience Signup and view all the answers

Which strategy focuses on building strong ties with customers and suppliers?

Strengthen customer and supplier intimacy Signup and view all the answers

How has the Internet impacted competitive forces in industries?

Transformed or threatened certain industries Signup and view all the answers

What is a characteristic of smart products in the context of the Internet of Things?

They use Internet-connected sensors Signup and view all the answers

Which of the following is NOT a primary activity in the business value chain model?

Human resource management Signup and view all the answers

What does a focus on market niche strategy entail?

Specializing in a specific segment of the market Signup and view all the answers

What advantage do smart products provide to companies?

Higher switching costs for consumers Signup and view all the answers

What is the primary benefit of Infrastructure as a Service (IaaS) for customers?

Ability to run information systems using flexible resources Signup and view all the answers

Which service model allows customers to develop their own applications using infrastructure and programming tools?

Platform as a Service (PaaS) Signup and view all the answers

What distinguishes a public cloud from a private cloud?

A public cloud is owned and operated by a service provider. Signup and view all the answers

Which of the following is a primary concern in cloud computing?

Risk of data loss and security breaches Signup and view all the answers

What is a key focus of green computing initiatives?

Reducing power consumption in computing and networking Signup and view all the answers

What is the potential energy consumption comparison of modern data centers?

Equivalent to 30 nuclear power plants Signup and view all the answers

Which statement accurately reflects the service model of Software as a Service (SaaS)?

Users access hosted software on a vendor’s cloud. Signup and view all the answers

What should users be cautious about when depending on cloud providers?

Potential loss of access to their data if the provider closes Signup and view all the answers

What is a primary function of the inference engine in an expert system?

Processing rules to derive conclusions Signup and view all the answers

What distinguishes supervised learning from unsupervised learning in machine learning?

Supervised learning uses labeled data, while unsupervised does not. Signup and view all the answers

How do neural networks learn patterns in data?

By iteratively adjusting models based on data inputs and known outcomes Signup and view all the answers

What are the components of an artificial neural network analogous to in biological systems?

Neurons and dendrites Signup and view all the answers

Which of the following is a contemporary application of machine learning?

Generating personalized recommendations on online platforms Signup and view all the answers

What is the role of numeric weights in artificial neural networks?

They associate importance to each input value, impacting the output. Signup and view all the answers

In relation to data analysis, what advantage do neural networks have over humans?

They can analyze data at a scale and complexity beyond human capability. Signup and view all the answers

What is a key characteristic of machine learning?

It involves improving performance through experience and pattern recognition. Signup and view all the answers

What does XML primarily describe about a document?

The content and meaning of the document Signup and view all the answers

Which statement best describes the 'grand vision' of artificial intelligence?

Computer systems that possess human-like intelligence. Signup and view all the answers

What type of software is a 'software package' categorized as?

Prewritten commercially available software Signup and view all the answers

What is an example of cloud-based software service mentioned in the content?

Salesforce.com Signup and view all the answers

What is a Service Level Agreement (SLA)?

A formal agreement with service providers Signup and view all the answers

Which of the following best describes the 'realistic vision' of artificial intelligence?

Systems executing complex tasks beyond human capability. Signup and view all the answers

How do cloud services differ from traditional software installations?

Cloud services provide access over the internet and scalability. Signup and view all the answers

What is one challenge faced in achieving the grand vision of artificial intelligence?

The difficulty in programming systems to mimic human intelligence. Signup and view all the answers

What is the primary function of a cipher in cryptography?

To encrypt and decrypt text. Signup and view all the answers

What is required for a substitution cipher to work effectively?

A key to guide the cipher. Signup and view all the answers

In public-key cryptography, how is a message encrypted for the receiver?

Using the receiver’s public key. Signup and view all the answers

What is the consequence of not using privacy controls on social media?

Greater exposure to identity theft. Signup and view all the answers

What is an essential component that enhances the security of public-key cryptography?

The relationship between the public and private keys. Signup and view all the answers

Based on the provided information, what percentage of Facebook users do not utilize available privacy controls?

25% Signup and view all the answers

When encrypting the message 'COMPUTER' using the substitution cipher described, what is the resulting encrypted text?

FRPSXWHU Signup and view all the answers

What is a common risk associated with social media usage as highlighted by the statistics provided?

Encountering information abuse. Signup and view all the answers

Study Notes

Big data presents both opportunities and ethical concerns.
Predictive policing can perpetuate existing biases in data, leading to unfair targeting of certain communities.
Insurance rate calculations using big data can lead to discriminatory pricing, disadvantaging lower socioeconomic individuals.
Transparency in big data algorithms is crucial for fair practices.
Ethical and social issues are arising from new technologies.
Undeveloped legal environment surrounding emerging technologies creates challenges.
Companies have faced ethical and social issues in the past.
General Motors (2015) covered up faulty ignition switches, leading to significant casualties.
Takata Corporation (2015) concealed faulty airbags, causing millions of vehicles to require replacement.
Four major banks (Citigroup, JPMorgan Chase, Barclays, UBS) (2012) were found guilty of manipulating the LIBOR interest rate.
SAC Capital (2013), a hedge fund, was found guilty of insider trading.
GlaxoSmithKline (2012) was fined for illegal promotion, safety data falsification, and price reporting violations.
McKinsey & Company (2012) and CEO Rajat Gupta faced allegations of insider trading.
Bank of America (2012) was accused of improper mortgage practices.
Volkswagen (more recently) had software installed to cheat emissions tests, at a potential cost of $87 billion.

Ethics and Information Systems

Ethics govern individual and collective behavior—defining right and wrong when using information systems.
Privacy is a key concern in handling personal data (collection, storage, and usage)
Transparency is essential in algorithmic decision-making.
Digital divide: unequal access to technology creates significant social impact.
Social media plays a vital role in shaping public opinion.
Intellectual property rights and cybersecurity are critical political issues in the technological realm.

Key Topics

Information rights and obligations: Defining who has the right to access, own, and control information.
Property rights and obligations: Exploring how intellectual property is protected in the digital age. (Software piracy, copyright enforcement, etc)
Accountability and control: Determining responsibility for using IT systems. (Example: liability if data breaches occur or AI systems malfunction).
System quality: Criteria for evaluating the accuracy, reliability, and security of IT systems.
Quality of life: Investigating how IT systems and advancements affect individuals' well-being. (Examples: excessive screen time or job displacement due to automation).

General Technology Trends

Computing power doubles every 18 months, leading to faster systems and new capabilities.
Data storage costs continuously decline, making large datasets increasingly accessible.
Data analysis advances facilitate detailed profiles of individual behavior.
Networking advancements readily allow remote data access.
Mobile device adoption and widespread use has profound implications.

Internet Challenges to Privacy

Cookies: Identify users, track visits to websites.
Super cookies (Flash cookies): Enhanced user tracking ability.
Web beacons (web bugs): Monitor e-mails/webpage visitors.
Spyware: Software capable of secretly collecting data and transmitting it.
Google services: Collect user data for targeting via DoubleClick.
Opt-out vs. opt-in model: Choices available to users for agreeing to data collection and use.

Technical Solutions

E-mail encryption methods.
Anonymity tools.
Anti-spyware tools.
Browser features (e.g., "Private" browsing, "Do Not Track").

Other Real-World Ethical Dilemmas

Technology use to reduce the workforce (e.g., automation).
Selling subscriber information to advertisers.
Corporate employees using business IT resources for personal use.
Using IT to monitor employees

Advances in Data Analysis Techniques

Profiling: Combining diverse data sources to create detailed dossiers on individuals.
Nonobvious relationship awareness (NORA): Combining data from multiple sources to expose concealed connections (e.g., identifying criminals or terrorists).

Ethics in an Information Society: Basic Concepts

Responsibility: Acknowledgement of potential costs, duties, and obligations associated with decisions.
Accountability: Establishing clear mechanisms for identifying responsible parties.
Liability: Defining the processes allowing individuals to recover damages from firms.
Due process: Established laws to provide recourse and redress for individuals.

Ethical Analysis

A five-step process for ethical analysis:

Identify the facts about the situation.
Define the problem and associated ethical considerations.
Identify the key stakeholders involved.
Consider all possible actions and options.
Evaluate the possible outcomes resulting from the various decisions.

Candidate Ethical Principles

Golden Rule: Treat others how you want to be treated.
Immanuel Kant's Categorical Imperative: Act only in a manner consistent with principles that you wish to apply to everyone.
Descartes' Rule of Change: Don't engage in repeated actions that could harm the environment or leave lasting negative impacts.
Utilitarian Principle: Choose the action that maximizes overall benefit.
The Risk Aversion Principle: Choose the less risky, less costly option for minimizing potential damage.
The "No Free Lunch" principle: recognize that someone owns the intangible or tangible objects, unless declared otherwise.

Information Rights: Privacy and Freedom

Privacy: Individuals have a right to privacy and freedom from unwarranted surveillance.
Fair Information Practices (FIPs): Set of principles (notice/awareness, choice/consent, access/participation) related to information collection/usage.
COPPA (Children's Online Privacy Protection Act): Legislation to protect children's information online.
Do Not Track Online Act: Addresses the issue of online tracking by requiring opt-in for data collection.
European Directive on Data Protection: Regulations enforcing informed consent from users regarding the handling of data.
Safe Harbor framework: Private, self-regulatory mechanism for data protection.

Property Rights: Intellectual Property

Intellectual property: Intangible or tangible property rights or creations.
Trade secret protection.
Copyright protection: Legal rights to prevent others from using a work.
Patents: Exclusive rights granted to an inventor for a 20-year period.
Digital Millennium Copyright Act (DMCA): Prohibits circumvention of protection technologies on copyrighted material.

Software/hardware failure: Exploring responsibility for damages caused by software malfunction or hardware breakdowns. — determining the liable party.
In cases of harm, should the responsibility lie with the producer, operator, or someone else?
Is it prudent to treat software similar to a service, rather than a physical product?

System Quality: Data Quality and System Errors

Acceptable system quality: Levels of accuracy, dependability, and security.
Software errors, hardware failures, poor input data quality.

Quality of Life: Equity, Access, Boundaries

Negative social consequences of systems: Societal impacts of emerging technology, including dependence, inequities, and reduced privacy.
Balance of power in societal structures affected by technological change.
Rapid pace of technological advancement, impacting competition and personal/work/leisure boundaries.

E-commerce, Digital Markets, and Digital Goods

Ubiquity: Internet access availability everywhere.
Global reach: Cross-cultural and national boundaries in transactions.
Universal standards: Based on Internet standards.
Richness: Support for multimedia elements.
Interactivity: User engagement with the system.
Information density: Vast increases in information amount and quality.
Personalization/customization: Tailoring experiences to unique user needs.
Social technology: Use of platforms for social sharing, networking, and content creation.
Types of e-commerce: B2B, B2C, and C2C transactions.
E-commerce revenue models: advertising, subscription, sales, free/freemium, transaction fees, affiliate programs.
Internet marketing: Long tail marketing, programmatic advertising, behavioral targeting, and native ads.
Disintermediation: Reducing intermediaries in business transactions.
Digital goods: Goods easily delivered over a network, low production/delivery costs, but highly variable pricing.

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Description

This quiz covers key concepts related to business strategies, ethical concerns in IT, and the impact of technology on competitive forces. Questions focus on product differentiation, accountability in IT systems, and the implications of data analysis trends. Test your understanding of these critical issues in the modern business landscape.