Chapter J !

nfurmuLun SysLems, 0rqunzuLuns, und SLruLeqy 8I

J.I 0k0ANIZATI0N5 AN0 INF0kMATI0N 5Y5TEM5
nfoinuIon sysons und oigunIzuIons Influonto ono unohoi. !nfoinuIon
sysons uio buIl by nunugois o soivo ho Inoioss of ho busInoss fIin.
A ho suno Ino, ho oigunIzuIon nus bo uwuio of und oon o ho
Influontos of InfoinuIon sysons o bonofI fion now othnologIos.
Tho InoiutIon bowoon InfoinuIon othnology und oigunIzuIons Is
tonlox und Is Influontod by nuny nodIuIng futois, IntludIng ho oigunIzu-
Ion's siutuio, busInoss iotossos, olIIts, tuluio, suiioundIng onvIionnon,
und nunugonon dotIsIons (soo !Iguio 8-1). You wIll nood o undoisund how
InfoinuIon sysons tun thungo sotIul und woil lIfo In youi fIin. You wIll no
bo ublo o dosIgn now sysons suttossfully oi undoisund oxIsIng sysons
wIhou undoisundIng youi own busInoss oigunIzuIon.
!
FI00kE J-I ThE TW0-WAY kELATI0N5hIP BETWEEN 0k0ANIZATI0N5 AN0
INF0kMATI0N TEChN0L00Y
!||s corp|e twowa, |e|at|ous||p |s red|ated o, rau, lacto|s, uot t|e |east ol w||c| a|e t|e
dec|s|ous rade-o| uot rade-o, rauae|s. Ct|e| lacto|s red|at|u t|e |e|at|ous||p |uc|ude t|e
o|au|.at|oua| cu|tu|e, st|uctu|e, po||t|cs, ous|uess p|ocesses, aud eu.||oureut.
FI00kE J-I ThE TW0-WAY kELATI0N5hIP BETWEEN 0k0ANIZATI0N5 AN0
INF0kMATI0N TEChN0L00Y
!||s corp|e twowa, |e|at|ous||p |s red|ated o, rau, lacto|s, uot t|e |east ol w||c| a|e t|e
dec|s|ous rade-o| uot rade-o, rauae|s. Ct|e| lacto|s red|at|u t|e |e|at|ous||p |uc|ude t|e
o|au|.at|oua| cu|tu|e, st|uctu|e, po||t|cs, ous|uess p|ocesses, aud eu.||oureut.
Chapter J !nfurmuLun SysLems, 0rqunzuLuns, und SLruLeqy 89
gious). OigunIzuIons ulso soivo dIffoion gious oi huvo dIffoion tonsIuon-
tIos, sono iInuiIly bonofIIng hoIi nonbois, ohois bonofIIng tlIons,
sotlholdois, oi ho ublIt. Tho nuuio of loudoishI dIffois giouly fion ono
oigunIzuIon o unohoi-sono oigunIzuIons nuy bo noio donotiuIt oi
uuhoiIuiIun hun ohois. Anohoi wuy oigunIzuIons dIffoi Is by ho usls hoy
oifoin und ho othnology hoy uso. Sono oigunIzuIons oifoin iInuiIly
iouIno usls hu tun bo iodutod o foinul iulos hu ioquIio lIlo |udgnon
(suth us nunufutuiIng uuo uis), whoious ohois (suth us tonsulIng fIins)
woil iInuiIly wIh noniouIno usls.
J.2 h0W INF0kMATI0N 5Y5TEM5 IMPACT
0k0ANIZATI0N5 AN0 B05INE55 FIkM5
!nfoinuIon sysons huvo botono Inogiul, onlIno, InoiutIvo ools dooly
Involvod In ho nInuo-o-nInuo ooiuIons und dotIsIon nulIng of luigo
oigunIzuIons. Ovoi ho lus dotudo, InfoinuIon sysons huvo fundunonully
uloiod ho otononIts of oigunIzuIons und giouly Intiousod ho ossIbIlIIos
foi oigunIzIng woil. ThooiIos und tontos fion otononIts und sotIology hol
us undoisund ho thungos biough ubou by !T.
EC0N0MIC IMPACT5
!ion ho oIn of vIow of otononIts, !T thungos boh ho ioluIvo toss of
tuIul und ho toss of InfoinuIon. !nfoinuIon sysons othnology tun bo
vIowod us u futoi of iodutIon hu tun bo subsIuod foi iudIIonul tuIul
und luboi. As ho tos of InfoinuIon othnology dotiousos, I Is subsIuod foi
luboi, whIth hIsoiItully hus boon u iIsIng tos. Honto, InfoinuIon othnology
should iosul In u dotlIno In ho nunboi of nIddlo nunugois und tloiItul
woilois us InfoinuIon othnology subsIuos foi hoIi luboi (Luudon, 1000).
As ho tos of InfoinuIon othnology dotiousos, I ulso subsIuos foi ohoi
foins of tuIul suth us buIldIngs und nuthInoiy, whIth ionuIn ioluIvoly
oxonsIvo. Honto, ovoi Ino wo should oxot nunugois o Intiouso hoIi Invos-
nons In !T botuuso of Is dotlInIng tos ioluIvo o ohoi tuIul Invosnons.
!T ulso obvIously uffots ho tos und quulIy of InfoinuIon und thungos ho
otononIts of InfoinuIon. !nfoinuIon othnology hols fIins toniut In sIzo
botuuso I tun ioduto iunsutIon toss-ho toss Intuiiod whon u fIin buys
on ho nuiloluto whu I tunno nulo Isolf. AttoidIng o vansatIon tos
covy, fIins und IndIvIduuls sool o otononIzo on iunsutIon toss, nuth us
hoy do on iodutIon toss. UsIng nuilos Is oxonsIvo botuuso of toss suth
us lotuIng und tonnunItuIng wIh dIsun sulIois, nonIoiIng toniut
tonlIunto, buyIng Insuiunto, obuInIng InfoinuIon on ioduts, und so foih
(Couso, 1087, WIllIunson, 108o). TiudIIonully, fIins huvo iIod o ioduto iuns-
utIon toss hiough voiItul InogiuIon, by goIng bIggoi, hIiIng noio onloy-
oos, und buyIng hoIi own sulIois und dIsiIbuois, us boh Gonoiul Moois
und !oid usod o do.
!nfoinuIon othnology, osotIully ho uso of nowoils, tun hol fIins lowoi
ho tos of nuilo uiItIuIon (iunsutIon toss), nulIng I woihwhIlo foi
fIins o toniut wIh oxoinul sulIois Insoud of usIng Inoinul souitos. As u
iosul, fIins tun shiInl In sIzo (nunbois of onloyoos) botuuso I Is fui loss
oxonsIvo o ousouito woil o u tonoIIvo nuiloluto iuhoi hun hIio
onloyoos.
94 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
oigunIzuIon of busInoss iotossos InsIdo u fIin. Tho !noino Intiousos ho
uttossIbIlIy, soiugo, und dIsiIbuIon of InfoinuIon und lnowlodgo foi
oigunIzuIons. !n ossonto, ho !noino Is tuublo of diunuItully lowoiIng ho
iunsutIon und ugonty toss futIng nos oigunIzuIons. !oi Insunto, bioloi-
ugo fIins und bunls In Now Yoil tun now dolIvoi hoIi Inoinul ooiuIng io-
toduios nunuuls o hoIi onloyoos u dIsun lotuIons by osIng hon on
ho toioiuo Wob sIo, suvIng nIllIons of dolluis In dIsiIbuIon toss.
A globul sulos foito tun iotoIvo nouily Insun iodut iIto InfoinuIon
uduos usIng ho Wob oi InsiutIons fion nunugonon son by o-nuIl.
Vondois of sono luigo iouIlois tun uttoss iouIlois' Inoinul Wob sIos dIiotly
o fInd u-o-ho-nInuo sulos InfoinuIon und o InIIuo iolonIshnon
oidois Insunly.
BusInossos uio iuIdly iobuIldIng sono of hoIi loy busInoss iotossos busod
on !noino othnology und nulIng hIs othnology u loy tononon of hoIi
!T Infiusiutuios. !f iIoi nowoilIng Is uny guIdo, ono iosul wIll bo sInloi
busInoss iotossos, fowoi onloyoos, und nuth fluoi oigunIzuIons hun In
ho us.
IMPLICATI0N5 F0k ThE 0E5I0N AN0 0N0Ek5TAN0IN0
0F INF0kMATI0N 5Y5TEM5
To dolIvoi gonuIno bonofIs, InfoinuIon sysons nus bo buIl wIh u tloui
undoisundIng of ho oigunIzuIon In whIth hoy wIll bo usod. !n oui oxoiI-
onto, ho toniul oigunIzuIonul futois o tonsIdoi whon lunnIng u now
syson uio ho followIng
- Tho onvIionnon In whIth ho oigunIzuIon nus funtIon
- Tho siutuio of ho oigunIzuIon hIoiuithy, sotIulIzuIon, iouInos, und
busInoss iotossos
- Tho oigunIzuIon's tuluio und olIIts
- Tho yo of oigunIzuIon und Is sylo of loudoishI
- Tho iIntIul Inoios gious uffotod by ho syson und ho uIudos of
woilois who wIll bo usIng ho syson
- Tho lInds of usls, dotIsIons, und busInoss iotossos hu ho InfoinuIon
syson Is dosIgnod o ussIs
J.J 05IN0 INF0kMATI0N 5Y5TEM5 T0 AChIEVE
C0MPETITIVE A0VANTA0E
!n ulnos ovoiy Indusiy you oxunIno, you wIll fInd hu sono fIins do booi
hun nos ohois. Thoio's ulnos ulwuys u sund-ou fIin. !n ho uuonoIvo
Indusiy, Toyou Is tonsIdoiod u suoiIoi oifoinoi. !n uio onlIno iouIl,
Anuzon Is ho loudoi, In off-lIno iouIl Wulnui, ho luigos iouIloi on ouih, Is
ho loudoi. !n onlIno nusIt, Alo's ITunos Is tonsIdoiod ho loudoi wIh noio
hun 7o oiton of ho downloudod nusIt nuilo, und In ho ioluod Indusiy of
dIgIul nusIt luyois, ho IPod Is ho loudoi. !n Wob souith, Googlo Is tonsIdoiod
ho loudoi.
!Iins hu do booi hun ohois uio suId o huvo u tonoIIvo udvunugo
ovoi ohois Thoy oIhoi huvo uttoss o sotIul iosouitos hu ohois do no, oi
hoy uio ublo o uso tonnonly uvuIlublo iosouitos noio offItIonly-usuully
Chapter J !nfurmuLun SysLems, 0rqunzuLuns, und SLruLeqy 95
botuuso of suoiIoi lnowlodgo und InfoinuIon ussos. !n uny ovon, hoy do
booi In oins of iovonuo giowh, iofIubIlIy, oi iodutIvIy giowh
(offItIonty), ull of whIth ulInuoly In ho long iun iunsluo Ino hIghoi sotl
nuilo vuluuIons hun hoIi tonoIois.
Bu why do sono fIins do booi hun ohois und how do hoy uthIovo
tonoIIvo udvunugo How tun you unulyzo u busInoss und IdonIfy Is
siuogIt udvunugos How tun you dovolo u siuogIt udvunugo foi youi own
busInoss And how do InfoinuIon sysons toniIbuo o siuogIt udvunugos
Ono unswoi o hu quosIon Is MIthuol Poioi's tonoIIvo foitos nodol.
P0kTEk'5 C0MPETITIVE F0kCE5 M00EL
Aiguubly, ho nos wIdoly usod nodol foi undoisundIng tonoIIvo
udvunugo Is MIthuol Poioi's tonpcIIvc Iovtcs nodcI (soo !Iguio 8-10).
ThIs nodol iovIdos u gonoiul vIow of ho fIin, Is tonoIois, und ho fIin's
onvIionnon. EuilIoi In hIs thuoi, wo dostiIbod ho Inoiunto of u fIin's
onvIionnon und ho doondonto of fIins on onvIionnons. Poioi's nodol Is
ull ubou ho fIin's gonoiul busInoss onvIionnon. !n hIs nodol, fIvo tonoI-
Ivo foitos shuo ho fuo of ho fIin.
Tradi t i onaI Compet i t or s
All fIins shuio nuilo suto wIh ohoi tonoIois who uio tonInuously
dovIsIng now, noio offItIon wuys o ioduto by IniodutIng now ioduts und
soivItos, und uonIng o uiut tusonois by dovoloIng hoIi biunds und
InosIng swIthIng toss on hoIi tusonois.
New Mar ket Ent r ant s
!n u fioo otonony wIh nobIlo luboi und fInuntIul iosouitos, now tonunIos
uio ulwuys onoiIng ho nuiloluto. !n sono IndusiIos, hoio uio voiy low
buiiIois o oniy, whoious In ohoi IndusiIos, oniy Is voiy dIffItul. !oi
Insunto, I Is fuIily ousy o sui u Izzu busInoss oi |us ubou uny snull iouIl
busInoss, bu I Is nuth noio oxonsIvo und dIffItul o onoi ho tonuoi
thI busInoss, whIth hus voiy hIgh tuIul toss und ioquIios sIgnIfItun oxoi-
Iso und lnowlodgo hu Is huid o obuIn. Now tonunIos huvo sovoiul ossIblo
FI00kE J-I0 P0kTEk'5 C0MPETITIVE F0kCE5 M00EL
lu lo|te|'s corpet|t|.e lo|ces rode|, t|e st|ate|c pos|t|ou ol t|e l||r aud |ts st|ate|es a|e dete|r|ued
uot ou|, o, corpet|t|ou w|t| |ts t|ad|t|oua| d||ect corpet|to|s out a|so o, lou| ot|e| lo|ces |u t|e
|udust|,'s eu.||oureut. uew ra||et eut|auts, suost|tute p|oducts, custore|s, aud supp||e|s.
96 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
udvunugos Thoy uio no lotlod Ino old luns und oquInon, hoy ofon hIio
youngoi woilois who uio loss oxonsIvo und oihus noio InnovuIvo, hoy uio
no ontunboiod by old woin-ou biund nunos, und hoy uio noio hungiy
(noio hIghly noIvuod) hun iudIIonul ottuuns of un Indusiy. Thoso
udvunugos uio ulso hoIi woulnoss Thoy doond on ousIdo fInuntIng foi now
luns und oquInon, whIth tun bo oxonsIvo, hoy huvo u loss-oxoiIontod
woilfoito, und hoy huvo lIlo biund iotognIIon.
5ubst i t ut e Pr oduct s and 5er vi ces
!n |us ubou ovoiy Indusiy, hoio uio subsIuos hu youi tusonois nIgh
uso If youi iItos botono oo hIgh. Now othnologIos tiouo now subsIuos ull
ho Ino. Evon oIl hus subsIuos Ehunol tun subsIuo foi gusolIno In tuis,
vogoublo oIl foi dIosol fuol In iutls, und wInd, solui, toul, und hydio owoi foi
IndusiIul olotiItIy gonoiuIon. LIlowIso, ho !noino olohono soivIto tun
subsIuo foi iudIIonul olohono soivIto, und fIboi-oIt olohono lInos o
ho hono tun subsIuo foi tublo TV lInos. And, of touiso, un !noino nusIt
soivIto hu ullows you o downloud nusIt iutls o un IPod Is u subsIuo foi
CD-busod nusIt soios. Tho noio subsIuo ioduts und soivItos In youi
Indusiy, ho loss you tun toniol iItIng und ho lowoi youi iofI nuigIns.
Cust omer s
A iofIublo tonuny doonds In luigo nousuio on Is ubIlIy o uiut und
iouIn tusonois (whIlo donyIng hon o tonoIois), und thuigo hIgh iItos.
Tho owoi of tusonois giows If hoy tun ousIly swIth o u tonoIoi's
ioduts und soivItos, oi If hoy tun foito u busInoss und Is tonoIois o
tonoo on iIto ulono In u iunsuion nuiloluto whoio hoio Is lIlo
pvodut dIIIcvcnIaIon, und ull iItos uio lnown Insunly (suth us on ho
!noino). !oi Insunto, In ho usod tollogo oxbool nuilo on ho !noino,
sudons (tusonois) tun fInd nulIlo sulIois of |us ubou uny tuiion
tollogo oxbool. !n hIs tuso, onlIno tusonois huvo oxiuoidInuiy owoi ovoi
usod-bool fIins.
5uppI i er s
Tho nuilo owoi of sulIois tun huvo u sIgnIfItun Inut on fIin iofIs,
osotIully whon ho fIin tunno iuIso iItos us fus us tun sulIois. Tho noio
dIffoion sulIois u fIin hus, ho giouoi toniol I tun oxoitIso ovoi sulIois
In oins of iIto, quulIy, und dolIvoiy sthodulos. !oi Insunto, nunufutuiois
of luo PCs ulnos ulwuys huvo nulIlo tonoIng sulIois of loy tono-
nons, suth us loybouids, huid diIvos, und dIsluy stioons.
INF0kMATI0N 5Y5TEM 5TkATE0IE5 F0k 0EALIN0
WITh C0MPETITIVE F0kCE5
Whu Is u fIin o do whon I Is futod wIh ull hoso tonoIIvo foitos And how
tun ho fIin uso InfoinuIon sysons o tounoiut sono of hoso foitos How
do you iovon subsIuos und InhIbI now nuilo oniuns Thoio uio foui
gonoiIt siuogIos, outh of whIth ofon Is onublod by usIng InfoinuIon othnol-
ogy und sysons low-tos loudoishI, iodut dIffoionIuIon, fotus on nuilo
nItho, und sionghonIng tusonoi und sulIoi InInuty.
Low- Cost Leader shi p
Uso InfoinuIon sysons o uthIovo ho lowos ooiuIonul toss und ho lowos
iItos. Tho tlussIt oxunlo Is Wulnui. By looIng iItos low und sholvos woll
I02 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
Tho !noino hus nouily dosioyod sono IndusiIos und hus sovoioly hiou-
onod noio. !oi Insunto, ho iInod ontytloodIu Indusiy und ho iuvol
ugonty Indusiy huvo boon nouily dotInuod by ho uvuIlubIlIy of subsIuos
ovoi ho !noino. LIlowIso, ho !noino hus hud u sIgnIfItun Inut on ho
iouIl, nusIt, bool, iouIl bioloiugo, sofwuio, olotonnunItuIons, und nows-
uoi IndusiIos.
Howovoi, ho !noino hus ulso tiouod onIioly now nuilos, foinod ho
busIs foi housunds of now ioduts, soivItos, und busInoss nodols, und io-
vIdod now ooiunIIos foi buIldIng biunds wIh voiy luigo und loyul tusonoi
busos. Anuzon, oBuy, ITunos, YouTubo, !utobool, TiuvolotIy, und Googlo uio
oxunlos. !n hIs sonso, ho !noino Is iunsfoinIng onIio IndusiIos, foitIng
fIins o thungo how hoy do busInoss.
Tho !noiutIvo SossIon on Tothnology iovIdos noio douIl on ho iunsfoi-
nuIon of ho tonon und nodIu IndusiIos. !oi nos foins of nodIu, ho
!noino hus osod u hiou o busInoss nodols und iofIubIlIy. Giowh In bool
sulos ohoi hun oxbools und iofossIonul ublItuIons hus boon sluggIsh, us
now foins of onoiuInnon tonInuo o tonoo foi tonsunois' Ino.
Nowsuois und nuguzInos huvo boon hI ovon huidoi, us hoIi ioudoishIs
dInInIsh, hoIi udvoiIsois shiInl, und noio oolo go hoIi nows foi fioo
onlIno. Tho olovIsIon und fIln IndusiIos huvo boon foitod o doul wIh Iiuos
who uio iobbIng hon of sono of hoIi iofIs.
Whon Alo unnountod ho luunth of Is now IPud ublo tonuoi, loudois
In ull of hoso nodIu suw no only u hiou bu ulso u sIgnIfItun ooiunIy. !n
fut, ho IPud und sInIlui nobIlo dovItos nuy bo ho suvIoi-If iudIIonul nodIu
tun siIlo ho iIgh doul wIh othnology iovIdois lIlo Alo und Googlo. And
ho IPud nuy bo u hiou foi tonunIos hu fuIl o ud|us hoIi busInoss nodols
o u now nohod of iovIdIng tonon o usois.
ThE B05INE55 VAL0E ChAIN M00EL
Alhough ho Poioi nodol Is voiy holful foi IdonIfyIng tonoIIvo foitos
und suggosIng gonoiIt siuogIos, I Is no voiy sotIfIt ubou whu oxutly o
do, und I doos no iovIdo u nohodology o follow foi uthIovIng tonoIIvo
udvunugos. !f youi goul Is o uthIovo ooiuIonul oxtollonto, whoio do you
sui Hoio's whoio ho busInoss vuluo thuIn nodol Is holful.
Tho vaIuc taIn nodcI hIghlIghs sotIfIt utIvIIos In ho busInoss whoio
tonoIIvo siuogIos tun bos bo ulIod (Poioi, 108o) und whoio InfoinuIon
sysons uio nos lIloly o huvo u siuogIt Inut. ThIs nodol IdonIfIos
sotIfIt, tiIItul lovoiugo oIns whoio u fIin tun uso InfoinuIon othnology
nos offotIvoly o onhunto Is tonoIIvo osIIon. Tho vuluo thuIn nodol
vIows ho fIin us u soiIos oi thuIn of busIt utIvIIos hu udd u nuigIn of vuluo
o u fIin's ioduts oi soivItos. Thoso utIvIIos tun bo tuogoiIzod us oIhoi
iInuiy utIvIIos oi suoi utIvIIos (soo !Iguio 8-11 on . 10o).
PvInavy atIvIIcs uio nos dIiotly ioluod o ho iodutIon und dIsiIbu-
Ion of ho fIin's ioduts und soivItos, whIth tiouo vuluo foi ho tusonoi.
PiInuiy utIvIIos Intludo Inbound logIsIts, ooiuIons, oubound logIsIts,
sulos und nuiloIng, und soivIto. !nbound logIsIts Intludos iotoIvIng und
soiIng nuoiIuls foi dIsiIbuIon o iodutIon. OoiuIons iunsfoins Inus
Ino fInIshod ioduts. Oubound logIsIts onuIls soiIng und dIsiIbuIng
fInIshod ioduts. Sulos und nuiloIng Intludos ionoIng und sollIng ho
fIin's ioduts. Tho soivIto utIvIy Intludos nuInonunto und iouIi of ho
fIin's goods und soivItos.
Chapter J !nfurmuLun SysLems, 0rqunzuLuns, und SLruLeqy I05
hu tooidInuo ho flow of iosouitos Ino youi fIin, und tusonoi ioluIonshI
nunugonon sysons hu tooidInuo youi sulos und suoi onloyoos wIh
tusonois, uio wo of ho nos tonnon syson ulItuIons hu iosul fion u
busInoss vuluo thuIn unulysIs. Wo dIstuss hoso onoiiIso ulItuIons In douIl
luoi In Chuoi 0.
UsIng ho busInoss vuluo thuIn nodol wIll ulso tuuso you o tonsIdoi
bonthnuilIng youi busInoss iotossos uguIns youi tonoIois oi ohois In
ioluod IndusiIos, und IdonIfyIng Indusiy bos iutItos. BcntnavLIng
Involvos tonuiIng ho offItIonty und offotIvonoss of youi busInoss iotossos
uguIns siIt sunduids und hon nousuiIng oifoinunto uguIns hoso
sunduids. !ndusiy bcs pvatItcs uio usuully IdonIfIod by tonsulIng tonu-
nIos, iosouith oigunIzuIons, govoinnon ugontIos, und Indusiy ussotIuIons us
ho nos suttossful soluIons oi ioblon-solvIng nohods foi tonsIsonly und
offotIvoly uthIovIng u busInoss ob|otIvo.
Onto you huvo unulyzod ho vuiIous sugos In ho vuluo thuIn u youi
busInoss, you tun tono u wIh tundIduo ulItuIons of InfoinuIon sysons.
Thon, onto you huvo u lIs of tundIduo ulItuIons, you tun dotIdo whIth o
dovolo fIis. By nulIng Iniovonons In youi own busInoss vuluo thuIn hu
youi tonoIois nIgh nIss, you tun uthIovo tonoIIvo udvunugo by
uuInIng ooiuIonul oxtollonto, lowoiIng toss, IniovIng iofI nuigIns, und
foigIng u tlosoi ioluIonshI wIh tusonois und sulIois. !f youi tonoIois
uio nulIng sInIlui Iniovonons, hon u lous you wIll no bo u u tonoIIvo
dIsudvunugo-ho wois of ull tusos
FI00kE J-II ThE VAL0E ChAIN M00EL
!||s l|u|e p|o.|des earp|es ol s,sters lo| oot| p||ra|, aud suppo|t act|.|t|es ol a l||r aud ol |ts
.a|ue pa|tue|s t|at cau add a ra||u ol .a|ue to a l||r's p|oducts o| se|.|ces.
I06 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
Ext endi ng t he VaI ue Chai n: The VaI ue Web
!Iguio 8-11 shows hu u fIin's vuluo thuIn Is lInlod o ho vuluo thuIns of Is
sulIois, dIsiIbuois, und tusonois. Afoi ull, ho oifoinunto of nos fIins
doonds no only on whu goos on InsIdo u fIin bu ulso on how woll ho fIin
tooidInuos wIh dIiot und IndIiot sulIois, dolIvoiy fIins (logIsIts uinois,
suth us !odEx oi UPS), und, of touiso, tusonois.
How tun InfoinuIon sysons bo usod o uthIovo siuogIt udvunugo u ho
Indusiy lovol By woilIng wIh ohoi fIins, Indusiy uiItIuns tun uso
InfoinuIon othnology o dovolo Indusiy-wIdo sunduids foi oxthungIng
InfoinuIon oi busInoss iunsutIons olotionItully, whIth foito ull nuilo
uiItIuns o substiIbo o sInIlui sunduids. Suth offois Intiouso offItIonty,
nulIng iodut subsIuIon loss lIloly und oihus iuIsIng oniy toss-hus
dIstouiugIng now oniuns. Also, Indusiy nonbois tun buIld Indusiy-wIdo,
!T-suoiod tonsoiIu, synosIu, und tonnunItuIons nowoils o tooidInuo
utIvIIos tontoinIng govoinnon ugontIos, foioIgn tonoIIon, und tono-
Ing IndusiIos.
LoolIng u ho Indusiy vuluo thuIn ontouiugos you o hInl ubou how o
uso InfoinuIon sysons o lInl u noio offItIonly wIh youi sulIois,
siuogIt uinois, und tusonois. SiuogIt udvunugo doiIvos fion youi
ubIlIy o ioluo youi vuluo thuIn o ho vuluo thuIns of ohoi uinois In ho
iotoss. !oi Insunto, If you uio Anuzon.ton, you wun o buIld sysons
hu
- Mulo I ousy foi sulIois o dIsluy goods und oon soios on ho Anuzon
sIo
- Mulo I ousy foi tusonois o uy foi goods
- Dovolo sysons hu tooidInuo ho shInon of goods o tusonois
- Dovolo shInon iutlIng sysons foi tusonois
!noino othnology hus nudo I ossIblo o tiouo hIghly synthionIzod
Indusiy vuluo thuIns tullod vuluo wobs. A vaIuc wcb Is u tollotIon of
Indoondon fIins hu uso InfoinuIon othnology o tooidInuo hoIi vuluo
thuIns o ioduto u iodut oi soivIto foi u nuilo tollotIvoly. ! Is noio
tusonoi diIvon und ooiuos In u loss lInoui fushIon hun ho iudIIonul vuluo
thuIn.
!Iguio 8-12 shows hu hIs vuluo wob synthionIzos ho busInoss iotossos of
tusonois, sulIois, und iudIng uinois unong dIffoion tonunIos In un
Indusiy oi In ioluod IndusiIos. Thoso vuluo wobs uio floxIblo und uduIvo o
thungos In suly und donund. RoluIonshIs tun bo bundlod oi unbundlod In
iosonso o thungIng nuilo tondIIons. !Iins wIll uttoloiuo Ino o nuilo
und o tusonois by oInIzIng hoIi vuluo wob ioluIonshIs o nulo quItl
dotIsIons on who tun dolIvoi ho ioquIiod ioduts oi soivItos u ho iIgh iIto
und lotuIon.
5YNEk0IE5, C0kE C0MPETENCIE5, AN0 NETW0kK-
BA5E0 5TkATE0IE5
A luigo toioiuIon Is yItully u tollotIon of busInossos. Ofon, ho fIin Is
oigunIzod fInuntIully us u tollotIon of siuogIt busInoss unIs und ho iouins
o ho fIin uio dIiotly Iod o ho oifoinunto of ull ho siuogIt busInoss
unIs. !nfoinuIon sysons tun Iniovo ho ovoiull oifoinunto of hoso
busInoss unIs by ionoIng synoigIos und toio tonoontIos.
Chapter J !nfurmuLun SysLems, 0rqunzuLuns, und SLruLeqy II5
busod on ho U.S. govoinnon tiush oss oifoinod by ho NuIonul HIghwuy
TiuffIt Sufoy AdnInIsiuIon If hoso os iosuls uio uvuIlublo. Exloio ho
fouuios foi lotuIng u vohItlo In Invonoiy und uithusIng dIiotly. !Inully,
oxloio ho ohoi tuubIlIIos of ho CuisDIiot sIo foi fInuntIng.
HuvIng iotoidod oi iInod ho InfoinuIon you nood fion CuisDIiot foi
youi uithuso dotIsIon, suif ho Wob sIo of ho nunufutuioi, In hIs tuso !oid
(www.foid.ton). Conuio ho InfoinuIon uvuIlublo on !oid's Wob sIo wIh
hu of CuisDIiot foi ho !oid !otus. Bo suio o thotl ho iIto und uny
IntonIvos boIng offoiod (whIth nuy no ugioo wIh whu you found u
CuisDIiot). Nox, fInd u lotul douloi on ho !oid sIo so hu you tun vIow ho
tui bofoio nulIng youi uithuso dotIsIon. Exloio ho ohoi fouuios of !oid's
Wob sIo.
Tiy o lotuo ho lowos iIto foi ho tui you wun In u lotul douloi's
Invonoiy. WhIth sIo would you uso o uithuso youi tui Why Suggos
Iniovonons foi ho sIos of CuisDIiot und !oid.
LEAkNIN0 TkACK M000LE
Tho followIng LouinIng Tiutl iovIdos tonon iolovun o oIts tovoiod In
hIs thuoi.
1. Tho ChungIng BusInoss EnvIionnon foi !nfoinuIon Tothnology
keview 5ummary
1. Vhich fcaturcs of organi:ations oo managcrs ncco to knou about to buiIo ano usc information
sstcms succcssfuII' Vhat is thc imact of information sstcms on organi:ations'
All nodoin oigunIzuIons uio hIoiuithItul, sotIulIzod, und InuiIul, usIng oxlItI iouInos o
nuxInIzo offItIonty. All oigunIzuIons huvo hoIi own tuluios und olIIts uiIsIng fion dIffoiontos In
Inoios gious, und hoy uio uffotod by hoIi suiioundIng onvIionnon. OigunIzuIons dIffoi In gouls,
gious soivod, sotIul iolos, loudoishI sylos, IntonIvos, yos of usls oifoinod, und yo of
siutuio. Thoso fouuios hol oxluIn dIffoiontos In oigunIzuIons' uso of InfoinuIon sysons.
!nfoinuIon sysons und ho oigunIzuIons In whIth hoy uio usod Inoiut wIh und Influonto outh
ohoi. Tho IniodutIon of u now InfoinuIon syson wIll uffot oigunIzuIonul siutuio, gouls, woil
dosIgn, vuluos, tonoIIon bowoon Inoios gious, dotIsIon nulIng, und duy-o-duy bohuvIoi. A ho
suno Ino, InfoinuIon sysons nus bo dosIgnod o soivo ho noods of Inoiun oigunIzuIonul gious
und wIll bo shuod by ho oigunIzuIon's siutuio, busInoss iotossos, gouls, tuluio, olIIts, und
nunugonon. !nfoinuIon othnology tun ioduto iunsutIon und ugonty toss, und suth thungos huvo
boon uttonuuod In oigunIzuIons usIng ho !noino. Now sysons dIsiu osublIshod uoins of woil
und owoi ioluIonshIs, so hoio Is ofon tonsIdoiublo iosIsunto o hon whon hoy uio Iniodutod.
2. Hou oocs Portcrs comctitivc forccs moocI hcI comanics ocvcIo comctitivc stratcgics using
information sstcms'
!n Poioi's tonoIIvo foitos nodol, ho siuogIt osIIon of ho fIin, und Is siuogIos, uio
dooinInod by tonoIIon wIh Is iudIIonul dIiot tonoIois, bu hoy uio ulso giouly uffotod by
now nuilo oniuns, subsIuo ioduts und soivItos, sulIois, und tusonois. !nfoinuIon sysons
hol tonunIos tonoo by nuInuInIng low toss, dIffoionIuIng ioduts oi soivItos, fotusIng on
nuilo nItho, sionghonIng Ios wIh tusonois und sulIois, und IntiousIng buiiIois o nuilo oniy
wIh hIgh lovols of ooiuIonul oxtollonto.
II6 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
Key Terms
Agcnc thcor, 00
Pcnchmarking, 10S
Pcst racticcs, 10S
Pusincss ccosstcm, 100
Comctitivc forccs moocI, 0S
Corc comctcnc, 107
Disrutivc tcchnoIogics, 87
Ifficicnt customcr rcsonsc sstcm, 07
Mass customi:ation, 08
Nctuork cconomics, 108
Organi:ation, 82
keview 0uestions
I. WhIth fouuios of oigunIzuIons do nunugois nood
o lnow ubou o buIld und uso InfoinuIon
sysons suttossfully Whu Is ho Inut of
InfoinuIon sysons on oigunIzuIons
- DofIno un oigunIzuIon und tonuio ho
othnItul dofInIIon of oigunIzuIons wIh ho
bohuvIoiul dofInIIon.
- !donIfy und dostiIbo ho fouuios of oigunIzu-
Ions hu hol oxluIn dIffoiontos In
oigunIzuIons' uso of InfoinuIon sysons.
- DostiIbo ho nu|oi otononIt hooiIos hu
hol oxluIn how InfoinuIon sysons uffot
oigunIzuIons.
- DostiIbo ho nu|oi bohuvIoiul hooiIos hu
hol oxluIn how InfoinuIon sysons uffot
oigunIzuIons.
- ExluIn why hoio Is tonsIdoiublo oigunIzu-
Ionul iosIsunto o ho IniodutIon of
InfoinuIon sysons.
Primar activitics, 102
Proouct oiffcrcntiation, 06
Routincs, 84
Stratcgic transitions, 112
Suort activitics, 104
Suitching costs, 00
1ransaction cost thcor, 80
VaIuc chain moocI, 102
VaIuc ucb, 106
VirtuaI coman, 100
J. Hou oo thc vaIuc chain ano vaIuc ucb moocIs hcI busincsscs iocntif oortunitics for stratcgic
information sstcm aIications'
Tho vuluo thuIn nodol hIghlIghs sotIfIt utIvIIos In ho busInoss whoio tonoIIvo siuogIos und
InfoinuIon sysons wIll huvo ho giouos Inut. Tho nodol vIows ho fIin us u soiIos of iInuiy und
suoi utIvIIos hu udd vuluo o u fIin's ioduts oi soivItos. PiInuiy utIvIIos uio dIiotly ioluod o
iodutIon und dIsiIbuIon, whoious suoi utIvIIos nulo ho dolIvoiy of iInuiy utIvIIos ossIblo.
A fIin's vuluo thuIn tun bo lInlod o ho vuluo thuIns of Is sulIois, dIsiIbuois, und tusonois. A vuluo
wob tonsIss of InfoinuIon sysons hu onhunto tonoIIvonoss u ho Indusiy lovol by ionoIng ho uso
of sunduids und Indusiy-wIdo tonsoiIu, und by onublIng busInossos o woil noio offItIonly wIh hoIi
vuluo uinois.
4. Hou oo information sstcms hcI busincsscs usc sncrgics, corc comctcncics, ano nctuork-basco
stratcgics to achicvc comctitivc aovantagc'
Botuuso fIins tonsIs of nulIlo busInoss unIs, InfoinuIon sysons uthIovo uddIIonul offItIontIos oi
onhunto soivItos by yIng ogohoi ho ooiuIons of dIsuiuo busInoss unIs. !nfoinuIon sysons hol
busInossos lovoiugo hoIi toio tonoontIos by ionoIng ho shuiIng of lnowlodgo utioss busInoss unIs.
!nfoinuIon sysons futIlIuo busInoss nodols busod on luigo nowoils of usois oi substiIbois hu ulo
udvunugo of nowoil otononIts. A vIiuul tonuny siuogy usos nowoils o lInl o ohoi fIins so hu u
tonuny tun uso ho tuubIlIIos of ohoi tonunIos o buIld, nuilo, und dIsiIbuo ioduts und soivItos.
!n busInoss otosysons, nulIlo IndusiIos woil ogohoi o dolIvoi vuluo o ho tusonoi. !nfoinuIon
sysons suoi u donso nowoil of InoiutIons unong ho uiItIuIng fIins.
S. Vhat arc thc chaIIcngcs osco b stratcgic information sstcms ano hou shouIo thc bc aoorcssco'
!nlononIng siuogIt sysons ofon ioquIios oxonsIvo oigunIzuIonul thungo und u iunsIIon fion ono
sotIoothnItul lovol o unohoi. Suth thungos uio tullod siuogIt iunsIIons und uio ofon dIffItul und
uInful o uthIovo. Moioovoi, no ull siuogIt sysons uio iofIublo, und hoy tun bo oxonsIvo o buIld.
Muny siuogIt InfoinuIon sysons uio ousIly toIod by ohoi fIins so hu siuogIt udvunugo Is no ulwuys
susuInublo.
Chapter 4 ELhcu und Sucu !ssues n !nfurmuLun SysLems I2J
4.I 0N0Ek5TAN0IN0 EThICAL AN0 50CIAL I550E5
kELATE0 T0 5Y5TEM5
n ho us 10 youis, wo huvo wInossod, uiguubly, ono of ho nos ohItully
thullongIng oiIods foi U.S. und globul busInoss. Tublo 4-1 iovIdos u snull
sunlo of ioton tusos dononsiuIng fuIlod ohItul |udgnon by sonIoi
und nIddlo nunugois. Thoso lusos In nunugonon ohItul und busInoss
|udgnon ottuiiod utioss u bioud sotiun of IndusiIos.
!n oduy's now logul onvIionnon, nunugois who vIoluo ho luw und uio
tonvItod wIll nos lIloly sond Ino In iIson. U.S. fodoiul sonontIng guIdolInos
udood In 1087 nunduo hu fodoiul |udgos Inoso sIff sonontos on busInoss
!
TABLE 4-I kECENT EXAMPLE5 0F FAILE0 EThICAL J000MENT BY 5ENI0k MANA0Ek5
Lehuau Brolhers 0ue o lhe oldesl ^uericau iuveslueul bauks collapses iu 2008. Lehuau used iuorualiou sysleus aud
(2008-2010) accouuliug sleighl o haud lo couceal ils bad iuveslueuls. Lehuau also eugaged iu deceplive laclics lo
shil iuveslueuls o ils books.
wC Jradiug Co. (2010) Paul Creeuwood, hedge uud uauager aud geueral parluer al wC Jradiug, pled guilly lo deraudiug
iuveslors o $SS4 uilliou over 13 years, Creeuwood has oreiled $331 uilliou lo lhe goveruueul aud
aces up lo 8S years iu prisou.
Miuerals Mauageueul Mauagers accused o accepliug gils aud olher avors rou oil coupauies, lelliug oil coupauy rig
Service (u.S. 0eparlueul euployees wrile up iuspecliou reporls, aud ailiug lo euorce exisliug regulalious ou oshore Cul drilliug
o lhe |ulerior) (2010) rigs. Euployees sysleualically alsiied iuorualiou record sysleus.
Pizer, Eli Lilly, aud Major pharuaceulical irus paid billious o dollars lo sellle u.S. ederal charges lhal execulives ixed
^slraZeueca (2009) cliuical lrials or aulipsycholic aud paiu killer drugs, uarkeled lheu iuapproprialely lo childreu, aud
claiued uusubslaulialed beueils while coveriug up uegalive oulcoues. |irus alsiied iuorualiou iu
reporls aud sysleus.
Calleou Croup (2009) |ouuder o lhe Calleou Croup criuiually charged wilh lradiug ou iusider iuorualiou, payiug $2S0 uilliou
lo wall Slreel bauks, aud iu reluru received uarkel iuorualiou lhal olher iuveslors did uol gel.
Sieueus (2009) Jhe world's largesl eugiueeriug iru paid over $4 billiou lo Ceruau aud u.S. aulhorilies or a decadesloug,
worldwide bribery scheue approved by corporale execulives lo iulueuce poleulial cuslouers aud
goveruueuls. Payueuls coucealed rou uorual reporliug accouuliug sysleus.
I24 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
oxotuIvos busod on ho nonouiy vuluo of ho tiIno, ho iosonto of u tonsIiuty
o iovon dIstovoiy of ho tiIno, ho uso of siutuiod fInuntIul iunsutIons o
hIdo ho tiIno, und fuIluio o toooiuo wIh iosotuois (U.S. SonontIng
ConnIssIon, 2004).
Alhough In ho us busInoss fIins would ofon uy foi ho logul dofonso of
hoIi onloyoos onnoshod In tIvIl thuigos und tiInInul InvosIguIons, now
fIins uio ontouiugod o toooiuo wIh iosotuois o ioduto thuigos uguIns
ho onIio fIin foi obsiutIng InvosIguIons. Thoso dovolonons noun hu,
noio hun ovoi, us u nunugoi oi un onloyoo, you wIll huvo o dotIdo foi
youisolf whu tonsIuos iooi logul und ohItul tondut.
Alhough hoso nu|oi Insuntos of fuIlod ohItul und logul |udgnon woio no
nusoinIndod by InfoinuIon sysons douinons, InfoinuIon sysons woio
Insiunonul In nuny of hoso fiuuds. !n nuny tusos, ho oioiuois of hoso
tiInos uifully usod fInuntIul iooiIng InfoinuIon sysons o buiy hoIi
dotIsIons fion ublIt stiuIny In ho vuIn hoo hoy would novoi bo tuugh.
Wo doul wIh ho Issuo of toniol In InfoinuIon sysons In Chuoi 8. !n hIs
thuoi, wo ull ubou ho ohItul dInonsIons of hoso und ohoi utIons busod
on ho uso of InfoinuIon sysons.
EIts iofois o ho iIntIlos of iIgh und wiong hu IndIvIduuls, utIng us
fioo noiul ugons, uso o nulo thoItos o guIdo hoIi bohuvIois. !nfoinuIon
sysons iuIso now ohItul quosIons foi boh IndIvIduuls und sotIoIos botuuso
hoy tiouo ooiunIIos foi Inonso sotIul thungo, und hus hiouon oxIsIng
dIsiIbuIons of owoi, nonoy, iIghs, und oblIguIons. LIlo ohoi othnologIos,
suth us soun ongInos, olotiItIy, ho olohono, und ho iudIo, InfoinuIon
othnology tun bo usod o uthIovo sotIul iogioss, bu I tun ulso bo usod o
tonnI tiInos und hiouon thoiIshod sotIul vuluos. Tho dovolonon of
InfoinuIon othnology wIll ioduto bonofIs foi nuny und toss foi ohois.
EhItul Issuos In InfoinuIon sysons huvo boon gIvon now uigonty by ho iIso
of ho !noino und olotionIt tonnoito. !noino und dIgIul fIin othnologIos
nulo I ousIoi hun ovoi o ussonblo, Inogiuo, und dIsiIbuo InfoinuIon,
unloushIng now tontoins ubou ho uioiIuo uso of tusonoi InfoinuIon, ho
iootIon of oisonul iIvuty, und ho iootIon of Inollotuul iooiy.
Ohoi iossIng ohItul Issuos iuIsod by InfoinuIon sysons Intludo osublIsh-
Ing uttounubIlIy foi ho tonsoquontos of InfoinuIon sysons, soIng sun-
duids o sufoguuid syson quulIy hu ioots ho sufoy of ho IndIvIduul und
sotIoy, und iosoivIng vuluos und InsIuIons tonsIdoiod ossonIul o ho
quulIy of lIfo In un InfoinuIon sotIoy. Whon usIng InfoinuIon sysons, I Is
ossonIul o usl, Whu Is ho ohItul und sotIully iosonsIblo touiso of utIon
A M00EL F0k ThINKIN0 AB00T EThICAL, 50CIAL,
AN0 P0LITICAL I550E5
EhItul, sotIul, und olIItul Issuos uio tlosoly lInlod. Tho ohItul dIlonnu you
nuy futo us u nunugoi of InfoinuIon sysons yItully Is ioflotod In sotIul
und olIItul dobuo. Ono wuy o hInl ubou hoso ioluIonshIs Is gIvon In
!Iguio 4-1. !nugIno sotIoy us u noio oi loss tuln ond on u sunnoi duy, u
dolItuo otosyson In uiIul oquIlIbiIun wIh IndIvIduuls und wIh sotIul und
olIItul InsIuIons. !ndIvIduuls lnow how o ut In hIs ond botuuso sotIul
InsIuIons (funIly, odutuIon, oigunIzuIons) huvo dovolood woll-honod iulos
of bohuvIoi, und hoso uio suoiod by luws dovolood In ho olIItul sotoi
hu iostiIbo bohuvIoi und ionIso suntIons foi vIoluIons. Now oss u iotl
Ino ho tonoi of ho ond. Whu huons RIlos, of touiso. Ino ho tonoi of ho ond. Whu huons RIlos, of touiso. Ino ho tonoi of ho ond. Whu huons RIlos, of touiso.
!nugIno Insoud hu ho dIsuibIng foito Is u owoiful shotl of now Infoinu-
Ion othnology und sysons hIIng u sotIoy noio oi loss u ios. Suddonly, IndI-
vIduul utois uio tonfionod wIh now sIuuIons ofon no tovoiod by ho old
iulos. SotIul InsIuIons tunno iosond ovoinIgh o hoso iIlos-I nuy ulo
youis o dovolo oIquoo, oxotuIons, sotIul iosonsIbIlIy, olIItully toiiot
uIudos, oi uiovod iulos. PolIItul InsIuIons ulso ioquIio Ino bofoio dovolo-
Ing now luws und ofon ioquIio ho dononsiuIon of ioul huin bofoio hoy ut. !n
ho nounIno, you nuy huvo o ut. You nuy bo foitod o ut In u logul giuy uiou.
Wo tun uso hIs nodol o Illusiuo ho dynunIts hu tonnot ohItul, sotIul,
und olIItul Issuos. ThIs nodol Is ulso usoful foi IdonIfyIng ho nuIn noiul
dInonsIons of ho InfoinuIon sotIoy, whIth tu utioss vuiIous lovols of
utIon-IndIvIduul, sotIul, und olIItul.
FIVE M0kAL 0IMEN5I0N5 0F ThE INF0kMATI0N A0E
Tho nu|oi ohItul, sotIul, und olIItul Issuos iuIsod by InfoinuIon sysons
Intludo ho followIng noiul dInonsIons
-RJSVQEXMSRVMKLXWERHSFPMKEXMSRWWhu InIovnaIon vIgs do IndIvIduuls und
oigunIzuIons ossoss wIh iosot o honsolvos Whu tun hoy ioot
Chapter 4 ELhcu und Sucu !ssues n !nfurmuLun SysLems I25
FI00kE 4-I ThE kELATI0N5hIP BETWEEN EThICAL, 50CIAL, AN0 P0LITICAL
I550E5 IN AN INF0kMATI0N 50CIETY
!|e |ut|oduct|ou ol uew |ulo|rat|ou tec|uo|o, |as a ||pp|e ellect, |a|s|u uew et||ca|, soc|a|, aud
po||t|ca| |ssues t|at rust oe dea|t w|t| ou t|e |ud|.|dua|, soc|a|, aud po||t|ca| |e.e|s. !|ese |ssues |a.e
l|.e ro|a| d|reus|ous. |ulo|rat|ou |||ts aud oo||at|ous, p|ope|t, |||ts aud oo||at|ous, s,ster
qua||t,, qua||t, ol ||le, aud accouutao|||t, aud cout|o|.
I26 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
4VSTIVX]VMKLXWERHSFPMKEXMSRW How wIll iudIIonul Inollotuul iooiy iIghs
bo iootod In u dIgIul sotIoy In whIth iutIng und uttounIng foi ownoishI
uio dIffItul und IgnoiIng suth iooiy iIghs Is so ousy
%GGSYRXEFMPMX]ERHGSRXVSP Who tun und wIll bo hold uttounublo und lIublo foi
ho huin dono o IndIvIduul und tollotIvo InfoinuIon und iooiy iIghs
7]WXIQUYEPMX] Whu sunduids of duu und syson quulIy should wo donund o
ioot IndIvIduul iIghs und ho sufoy of sotIoy
5YEPMX]SJPMJIWhu vuluos should bo iosoivod In un InfoinuIon- und
lnowlodgo-busod sotIoy WhIth InsIuIons should wo ioot fion vIoluIon
WhIth tuluiul vuluos und iutItos uio suoiod by ho now InfoinuIon
othnology
Wo oxloio hoso noiul dInonsIons In douIl In SotIon 4.8.
KEY TEChN0L00Y TkEN05 ThAT kAI5E EThICAL
I550E5
EhItul Issuos long iotodod InfoinuIon othnology. Novoiholoss, Infoinu-
Ion othnology hus hoIghonod ohItul tontoins, uxod oxIsIng sotIul uiiungo-
nons, und nudo sono luws obsoloo oi sovoioly tiIlod. Thoio uio foui loy
othnologItul ionds iosonsIblo foi hoso ohItul siossos und hoy uio sunnu-
iIzod In Tublo 4-2.
Tho doublIng of tonuIng owoi ovoiy 18 nonhs hus nudo I ossIblo foi
nos oigunIzuIons o uso InfoinuIon sysons foi hoIi toio iodutIon
iotossos. As u iosul, oui doondonto on sysons und oui vulnoiubIlIy o
syson oiiois und ooi duu quulIy huvo Intiousod. SotIul iulos und luws huvo
no yo ud|usod o hIs doondonto. Sunduids foi onsuiIng ho uttuiuty und
iolIubIlIy of InfoinuIon sysons (soo Chuoi 8) uio no unIvoisully uttood
oi onfoitod.
Advuntos In duu soiugo othnIquos und iuIdly dotlInIng soiugo toss
huvo boon iosonsIblo foi ho nulIlyIng duubusos on IndIvIduuls-onloy-
oos, tusonois, und oonIul tusonois-nuInuInod by iIvuo und ublIt
oigunIzuIons. Thoso udvuntos In duu soiugo huvo nudo ho iouIno vIoluIon
of IndIvIduul iIvuty boh thou und offotIvo. MussIvo duu soiugo sysons
uio InoxonsIvo onough foi iogIonul und ovon lotul iouIlIng fIins o uso In
IdonIfyIng tusonois.
Advuntos In duu unulysIs othnIquos foi luigo ools of duu uio unohoi
othnologItul iond hu hoIghons ohItul tontoins botuuso tonunIos und
govoinnon ugontIos uio ublo o fInd ou hIghly douIlod oisonul InfoinuIon
TABLE 4-2 TEChN0L00Y TkEN05 ThAT kAI5E EThICAL I550E5
JREN0 |MP^CJ
Coupuliug power doubles every 18 uoulhs More orgauizalious depeud ou coupuler sysleus or crilical operalious.
0ala slorage cosls rapidly decliuiug 0rgauizalious cau easily uaiulaiu delailed dalabases ou iudividuals.
0ala aualysis advauces Coupauies cau aualyze vasl quaulilies o dala galhered ou iudividuals lo develop delailed
proiles o iudividual behavior.
Nelworkiug advauces Copyiug dala rou oue localiou lo auolher aud accessiug persoual dala rou reuole
localious are uuch easier.
Chapter 4 ELhcu und Sucu !ssues n !nfurmuLun SysLems I27
ubou IndIvIduuls. WIh tononoiuiy duu nunugonon ools (soo Chuoi o),
tonunIos tun ussonblo und tonbIno ho nyiIud Iotos of InfoinuIon ubou
you soiod on tonuois nuth noio ousIly hun In ho us.
ThInl of ull ho wuys you gonoiuo tonuoi InfoinuIon ubou youisolf-
tiodI tuid uithusos, olohono tulls, nuguzIno substiIIons, vIdoo ionuls,
nuIl-oidoi uithusos, bunlIng iotoids, lotul, suo, und fodoiul govoinnon
iotoids (IntludIng toui und olIto iotoids), und vIsIs o Wob sIos. Pu
ogohoi und nInod iooily, hIs InfoinuIon tould iovoul no only youi tiodI
InfoinuIon bu ulso youi diIvIng hubIs, youi usos, youi ussotIuIons, und
youi olIItul Inoioss.
ConunIos wIh ioduts o soll uithuso iolovun InfoinuIon fion hoso
souitos o hol hon noio fInoly uigo hoIi nuiloIng tunuIgns. Chuois
8 und 6 dostiIbo how tonunIos tun unulyzo luigo ools of duu fion nulIlo
souitos o iuIdly IdonIfy buyIng uoins of tusonois und suggos IndIvId-
uul iosonsos. Tho uso of tonuois o tonbIno duu fion nulIlo souitos
und tiouo olotionIt dossIois of douIlod InfoinuIon on IndIvIduuls Is tullod
pvoIIIIng.
!oi oxunlo, sovoiul housund of ho nos oului Wob sIos ullow
DoubloClItl (ownod by Googlo), un !noino udvoiIsIng bioloi, o iutl ho
utIvIIos of hoIi vIsIois In oxthungo foi iovonuo fion udvoiIsonons busod
on vIsIoi InfoinuIon DoubloClItl guhois. DoubloClItl usos hIs Infoinu-
Ion o tiouo u iofIlo of outh onlIno vIsIoi, uddIng noio douIl o ho iofIlo
us ho vIsIoi uttossos un ussotIuod DoubloClItl sIo. Ovoi Ino, DoubloClItl
tun tiouo u douIlod dossIoi of u oison's sondIng und tonuIng hubIs on
ho Wob hu Is sold o tonunIos o hol hon uigo hoIi Wob uds noio
iotIsoly.
ChoItoPoIn guhois duu fion olIto, tiInInul, und nooi vohItlo iotoids,
tiodI und onloynon hIsoiIos, tuiion und iovIous uddiossos, iofossIonul
lItonsos, und Insuiunto tluIns o ussonblo und nuInuIn olotionIt dossIois on
ulnos ovoiy udul In ho UnIod Suos. Tho tonuny solls hIs oisonul
LredL curd purchuses cun
muke persunu nfurmuLun
uvuube Lu murkeL
reseurchers, LeemurkeLers,
und drecL-mu cumpunes.
Advunces n nfurmuLun
Lechnuuqy fucLuLe Lhe
nvusun uf prvucy.
I28 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
FI00kE 4-2 N0N0BVI005 kELATI0N5hIP AWAkENE55 (N0kA)
NCR/ tec|uo|o, cau ta|e |ulo|rat|ou aoout peop|e l|or d|spa|ate sou|ces aud l|ud ooscu|e,
uouoo.|ous |e|at|ous||ps. lt r||t d|sco.e|, lo| earp|e, t|at au app||caut lo| a joo at a cas|uo
s|a|es a te|ep|oue uuroe| w|t| a |uowu c||r|ua| aud |ssue au a|e|t to t|e ||||u rauae|.
InfoinuIon o busInossos und govoinnon ugontIos. Donund foi oisonul duu
Is so onoinous hu duu bioloi busInossos suth us ChoItoPoIn uio flouiIshIng.
A now duu unulysIs othnology tullod nonobvIous vcIaIonsIp awavc-
ncss NORA] hus gIvon boh ho govoinnon und ho iIvuo sotoi ovon
noio owoiful iofIlIng tuubIlIIos. NORA tun ulo InfoinuIon ubou
oolo fion nuny dIsuiuo souitos, suth us onloynon ulItuIons,
olohono iotoids, tusonoi lIsIngs, und wunod lIss, und toiioluo
ioluIonshIs o fInd obstuio hIddon tonnotIons hu nIgh hol IdonIfy
tiInInuls oi oiioiIss (soo !Iguio 4-2).
NORA othnology stuns duu und oxiuts InfoinuIon us ho duu uio boIng
gonoiuod so hu I tould, foi oxunlo, Insunly dIstovoi u nun u un uIilIno
Itlo tounoi who shuios u hono nunboi wIh u lnown oiioiIs bofoio hu
oison bouids un uIiluno. Tho othnology Is tonsIdoiod u vuluublo ool foi
honolund sotuiIy bu doos huvo iIvuty InlItuIons botuuso I tun iovIdo
suth u douIlod Ituio of ho utIvIIos und ussotIuIons of u sInglo IndIvIduul.
!Inully, udvuntos In nowoilIng, IntludIng ho !noino, ionIso o giouly
ioduto ho toss of novIng und uttossIng luigo quunIIos of duu und oon ho
ossIbIlIy of nInIng luigo ools of duu ionooly usIng snull doslo
nuthInos, oinIIng un InvusIon of iIvuty on u stulo und wIh u iotIsIon
hoioofoio unInugInublo.
Chapter 4 ELhcu und Sucu !ssues n !nfurmuLun SysLems I29
4.2 EThIC5 IN AN INF0kMATI0N 50CIETY
EhIts Is u tontoin of hununs who huvo fioodon of thoIto. EhIts Is ubou
IndIvIduul thoIto Whon futod wIh uloinuIvo touisos of utIon, whu Is ho
toiiot noiul thoIto Whu uio ho nuIn fouuios of ohItul thoIto
BA5IC C0NCEPT5: kE5P0N5IBILITY, ACC00NTABILITY,
AN0 LIABILITY
EhItul thoItos uio dotIsIons nudo by IndIvIduuls who uio iosonsIblo foi ho
tonsoquontos of hoIi utIons. RcsponsIbIIIy Is u loy olonon of ohItul
utIon. RosonsIbIlIy nouns hu you utto ho oonIul toss, duIos, und
oblIguIons foi ho dotIsIons you nulo. AttounabIIIy Is u fouuio of sysons
und sotIul InsIuIons ! nouns hu nothunIsns uio In luto o dooinIno
who ool iosonsIblo utIon, und who Is iosonsIblo. Sysons und InsIuIons
In whIth I Is InossIblo o fInd ou who ool whu utIon uio Inhoionly Intu-
ublo of ohItul unulysIs oi ohItul utIon. LIabIIIy oxonds ho tonto of
iosonsIbIlIy fuihoi o ho uiou of luws. LIubIlIy Is u fouuio of olIItul sys-
ons In whIth u body of luws Is In luto hu oinIs IndIvIduuls o iotovoi ho
dunugos dono o hon by ohoi utois, sysons, oi oigunIzuIons. Duc pvotcss
Is u ioluod fouuio of luw-govoinod sotIoIos und Is u iotoss In whIth luws uio
lnown und undoisood, und hoio Is un ubIlIy o uoul o hIghoi uuhoiIIos o
onsuio hu ho luws uio ulIod toiiotly.
Thoso busIt tontos foin ho undoiInnIng of un ohItul unulysIs of Infoi-
nuIon sysons und hoso who nunugo hon. !Iis, InfoinuIon othnologIos
uio fIloiod hiough sotIul InsIuIons, oigunIzuIons, und IndIvIduuls. Sysons
do no huvo Inuts by honsolvos. Whuovoi InfoinuIon syson Inuts oxIs
uio ioduts of InsIuIonul, oigunIzuIonul, und IndIvIduul utIons und bohuv-
Iois. Sotond, iosonsIbIlIy foi ho tonsoquontos of othnology fulls tlouily on
ho InsIuIons, oigunIzuIons, und IndIvIduul nunugois who thooso o uso ho
othnology. UsIng InfoinuIon othnology In u sotIully iosonsIblo nunnoi
nouns hu you tun und wIll bo hold uttounublo foi ho tonsoquontos of youi
utIons. ThIid, In un ohItul, olIItul sotIoy, IndIvIduuls und ohois tun iotovoi
dunugos dono o hon hiough u so of luws thuiutoiIzod by duo iotoss.
EThICAL ANALY5I5
Whon tonfionod wIh u sIuuIon hu soons o ioson ohItul Issuos, how
should you unulyzo I Tho followIng fIvo-so iotoss should hol
1. -HIRXMJ]ERHHIWGVMFIGPIEVP]XLIJEGXW !Ind ou who dId whu o whon, und
whoio, whon, und how. !n nuny Insuntos, you wIll bo suiiIsod u ho oiiois
In ho InIIully iooiod futs, und ofon you wIll fInd hu sInly goIng ho
futs siuIgh hols dofIno ho soluIon. ! ulso hols o go ho oosIng uiIos
Involvod In un ohItul dIlonnu o ugioo on ho futs.
2. (IJMRIXLIGSRJPMGXSVHMPIQQEERHMHIRXMJ]XLILMKLIVSVHIVZEPYIWMRZSPZIHEhItul,
sotIul, und olIItul Issuos ulwuys iofoionto hIghoi vuluos. Tho uiIos o u
dIsuo ull tluIn o bo uisuIng hIghoi vuluos (o.g., fioodon, iIvuty, iootIon
of iooiy, und ho fioo onoiiIso syson). TyItully, un ohItul Issuo Involvos
u dIlonnu wo dIunoiItully oosod touisos of utIon hu suoi
woihwhIlo vuluos. !oi oxunlo, ho thuoi-ondIng tuso sudy Illusiuos wo
tonoIng vuluos ho nood o Iniovo houlh tuio iotoid looIng und ho nood
o ioot IndIvIduul iIvuty
IJ0 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
8. -HIRXMJ]XLIWXEOILSPHIVW Evoiy ohItul, sotIul, und olIItul Issuo hus sulohold-
ois luyois In ho guno who huvo un Inoios In ho outono, who huvo
Invosod In ho sIuuIon, und usuully who huvo votul oInIons. !Ind ou ho
IdonIy of hoso gious und whu hoy wun. ThIs wIll bo usoful luoi whon
dosIgnIng u soluIon.
4. -HIRXMJ]XLISTXMSRWXLEX]SYGERVIEWSREFP]XEOI You nuy fInd hu nono of ho
oIons suIsfy ull ho Inoioss Involvod, bu hu sono oIons do u booi |ob
hun ohois. SonoInos uiiIvIng u u good oi ohItul soluIon nuy no ulwuys bo
u buluntIng of tonsoquontos o suloholdois.
o. -HIRXMJ]XLITSXIRXMEPGSRWIUYIRGIWSJ]SYVSTXMSRW Sono oIons nuy bo ohItully
toiiot bu dIsusious fion ohoi oIns of vIow. Ohoi oIons nuy woil In ono
Insunto bu no In ohoi sInIlui Insuntos. Alwuys usl youisolf, Whu If !
thooso hIs oIon tonsIsonly ovoi Ino
CAN0I0ATE EThICAL PkINCIPLE5
Onto youi unulysIs Is tonloo, whu ohItul iIntIlos oi iulos should you uso
o nulo u dotIsIon Whu hIghoi-oidoi vuluos should Infoin youi |udgnon
Alhough you uio ho only ono who tun dotIdo whIth unong nuny ohItul iIn-
tIlos you wIll follow, und how you wIll iIoiIIzo hon, I Is holful o tonsIdoi
sono ohItul iIntIlos wIh doo ioos In nuny tuluios hu huvo suivIvod
hioughou iotoidod hIsoiy
1. Do uno ohois us you would huvo hon do uno you (ho GoIdcn RuIc).
PuIng youisolf Ino ho luto of ohois, und hInlIng of youisolf us ho ob|ot
of ho dotIsIon, tun hol you hInl ubou fuIinoss In dotIsIon nulIng.
2. !f un utIon Is no iIgh foi ovoiyono o ulo, I Is no iIgh foi unyono
InnanucI Kan's CacgovItaI InpcvaIvc]. Asl youisolf, !f ovoiyono dId
hIs, tould ho oigunIzuIon, oi sotIoy, suivIvo
8. !f un utIon tunno bo ulon ioouodly, I Is no iIgh o ulo u ull Dcstavcs'
vuIc oI tangc]. ThIs Is ho slIoiy-sloo iulo An utIon nuy biIng ubou u
snull thungo now hu Is uttoublo, bu If I Is ioouod, I would biIng
unuttoublo thungos In ho long iun. !n ho voinutului, I nIgh bo suod us
onto suiod down u slIoiy uh, you nuy no bo ublo o so.
4. Tulo ho utIon hu uthIovos ho hIghoi oi giouoi vuluo \IIIavIan
PvIntIpIc]. ThIs iulo ussunos you tun iIoiIIzo vuluos In u iunl oidoi und
undoisund ho tonsoquontos of vuiIous touisos of utIon.
o. Tulo ho utIon hu iodutos ho lous huin oi ho lous oonIul tos
RIsL AvcvsIon PvIntIpIc]. Sono utIons huvo oxionoly hIgh fuIluio toss
of voiy low iobubIlIy (o.g., buIldIng u nutloui gonoiuIng futIlIy In un
uibun uiou) oi oxionoly hIgh fuIluio toss of nodoiuo iobubIlIy
(soodIng und uuonobIlo uttIdons). AvoId hoso hIgh-fuIluio-tos utIons,
uyIng giouoi uonIon o hIgh-fuIluio-tos oonIul of nodoiuo o hIgh
iobubIlIy.
6. Assuno hu vIiuully ull ungIblo und InungIblo ob|ots uio ownod by sonoono
olso unloss hoio Is u sotIfIt dotluiuIon ohoiwIso. (ThIs Is ho cItaI
no Ivcc Iunt" vuIc.) !f sonohIng sonoono olso hus tiouod Is usoful o you,
I hus vuluo, und you should ussuno ho tiouoi wuns tononsuIon foi hIs
woil.
AtIons hu do no ousIly uss hoso iulos dosoivo tloso uonIon und u giou
doul of tuuIon. Tho uouiunto of unohItul bohuvIoi nuy do us nuth huin o
you und youi tonuny us utuul unohItul bohuvIoi.
Chapter 4 ELhcu und Sucu !ssues n !nfurmuLun SysLems IJI
Pk0FE55I0NAL C00E5 0F C0N00CT
Whon gious of oolo tluIn o bo iofossIonuls, hoy ulo on sotIul iIghs und
oblIguIons botuuso of hoIi sotIul tluIns o lnowlodgo, wIsdon, und iosot.
PiofossIonul todos of tondut uio ionulguod by ussotIuIons of iofossIonuls,
suth us ho AnoiItun ModItul AssotIuIon (AMA), ho AnoiItun Bui AssotIuIon
(ABA), ho AssotIuIon of !nfoinuIon Tothnology PiofossIonuls (A!TP), und ho
AssotIuIon foi ConuIng MuthInoiy (ACM). Thoso iofossIonul gious ulo
iosonsIbIlIy foi ho uiIul ioguluIon of hoIi iofossIons by dooinInIng
oniunto quulIfItuIons und tonoonto. Codos of ohIts uio ionIsos by iofos-
sIons o ioguluo honsolvos In ho gonoiul Inoios of sotIoy. !oi oxunlo,
uvoIdIng huin o ohois, honoiIng iooiy iIghs (IntludIng Inollotuul io-
oiy), und iosotIng iIvuty uio unong ho Gonoiul Moiul !noiuIvos of ho
ACM's Codo of EhIts und PiofossIonul Condut.
50ME kEAL-W0kL0 EThICAL 0ILEMMA5
!nfoinuIon sysons huvo tiouod now ohItul dIlonnus In whIth ono so of
Inoioss Is Iod uguIns unohoi. !oi oxunlo, nuny of ho luigo olohono
tonunIos In ho UnIod Suos uio usIng InfoinuIon othnology o ioduto ho
sIzos of hoIi woilfoitos. VoIto iotognIIon sofwuio iodutos ho nood foi
hunun ooiuois by onublIng tonuois o iotognIzo u tusonoi's iosonsos o
u soiIos of tonuoiIzod quosIons. Muny tonunIos nonIoi whu hoIi
onloyoos uio doIng on ho !noino o iovon hon fion wusIng tonuny
iosouitos on non-busInoss utIvIIos.
!n outh Insunto, you tun fInd tonoIng vuluos u woil, wIh gious lInod
u on oIhoi sIdo of u dobuo. A tonuny nuy uiguo, foi oxunlo, hu I hus u
iIgh o uso InfoinuIon sysons o Intiouso iodutIvIy und ioduto ho sIzo of
Is woilfoito o lowoi toss und suy In busInoss. Enloyoos dIslutod by Infoi-
nuIon sysons nuy uiguo hu onloyois huvo sono iosonsIbIlIy foi hoIi
wolfuio. BusInoss ownois nIgh fool oblIguod o nonIoi onloyoo o-nuIl und
!noino uso o nInInIzo diuIns on iodutIvIy. Enloyoos nIgh bolIovo hoy
should bo ublo o uso ho !noino foi shoi oisonul usls In luto of ho
olohono. A tloso unulysIs of ho futs tun sonoInos ioduto tonionIsod
soluIons hu gIvo outh sIdo hulf u louf. Tiy o uly sono of ho iIntIlos of
ohItul unulysIs dostiIbod o outh of hoso tusos. Whu Is ho iIgh hIng o do
4.J ThE M0kAL 0IMEN5I0N5 0F INF0kMATI0N
5Y5TEM5
!n hIs sotIon, wo ulo u tlosoi lool u ho fIvo noiul dInonsIons of Infoinu-
Ion sysons fIis dostiIbod In !Iguio 4-1. !n outh dInonsIon, wo IdonIfy ho
ohItul, sotIul, und olIItul lovols of unulysIs und uso ioul-woild oxunlos o
Illusiuo ho vuluos Involvod, ho suloholdois, und ho oIons thoson.
INF0kMATI0N kI0hT5: PkIVACY AN0 FkEE00M IN
ThE INTEkNET A0E
PvIvaty Is ho tluIn of IndIvIduuls o bo lof ulono, fioo fion suivoIllunto oi
Inoifoionto fion ohoi IndIvIduuls oi oigunIzuIons, IntludIng ho suo.
CluIns o iIvuty uio ulso Involvod u ho woilluto MIllIons of onloyoos uio
Chapter 4 ELhcu und Sucu !ssues n !nfurmuLun SysLems I55
LEAkNIN0 TkACK M000LE5
Tho followIng LouinIng Tiutls iovIdo tonon iolovun o ho oIts tovoiod In hIs thuoi
1. DovoloIng u Coioiuo Codo of EhIts foi !nfoinuIon Sysons
2. CiouIng u Wob Pugo
keview 5ummary
1. Vhat cthicaI, sociaI, ano oIiticaI issucs arc raisco b information sstcms'
!nfoinuIon othnology Is IniodutIng thungos foi whIth luws und iulos of uttoublo tondut huvo
no yo boon dovolood. !ntiousIng tonuIng owoi, soiugo, und nowoilIng tuubIlIIos-IntludIng
ho !noino-oxund ho iouth of IndIvIduul und oigunIzuIonul utIons und nugnIfy hoIi Inuts.
Tho ouso und unonynIy wIh whIth InfoinuIon Is now tonnunItuod, toIod, und nunIuluod In
onlIno onvIionnons oso now thullongos o ho iootIon of iIvuty und Inollotuul iooiy. Tho
nuIn ohItul, sotIul, und olIItul Issuos iuIsod by InfoinuIon sysons tonoi uiound InfoinuIon
iIghs und oblIguIons, iooiy iIghs und oblIguIons, uttounubIlIy und toniol, syson quulIy, und
quulIy of lIfo.
2. Vhat sccific rinciIcs for conouct can bc usco to guioc cthicaI occisions'
SIx ohItul iIntIlos foi |udgIng tondut Intludo ho Goldon Rulo, !nnunuol Kun's CuogoiItul
!noiuIvo, Dostuios' iulo of thungo, ho UIlIuiIun PiIntIlo, ho RIsl AvoisIon PiIntIlo, und ho
ohItul no fioo lunth iulo. Thoso iIntIlos should bo usod In ton|untIon wIh un ohItul unulysIs.
J. Vh oo contcmorar information sstcms tcchnoIog ano thc Intcrnct osc chaIIcngcs to thc
rotcction of inoiviouaI rivac ano intcIIcctuaI rocrt'
Cononoiuiy duu soiugo und duu unulysIs othnology onublos tonunIos o ousIly guhoi
oisonul duu ubou IndIvIduuls fion nuny dIffoion souitos und unulyzo hoso duu o tiouo douIlod
olotionIt iofIlos ubou IndIvIduuls und hoIi bohuvIois. Duu flowIng ovoi ho !noino tun bo
nonIoiod u nuny oIns. CoolIos und ohoi Wob nonIoiIng ools tlosoly iutl ho utIvIIos of Wob
sIo vIsIois. No ull Wob sIos huvo siong iIvuty iootIon olItIos, und hoy do no ulwuys ullow foi
Infoinod tonson ioguidIng ho uso of oisonul InfoinuIon. TiudIIonul toyiIgh luws uio InsuffItIon
o ioot uguIns sofwuio Iiuty botuuso dIgIul nuoiIul tun bo toIod so ousIly und iunsnIod o
nuny dIffoion lotuIons sInulunoously ovoi ho !noino.
4. Hou havc information sstcms affcctco cvcroa Iifc'
Alhough tonuoi sysons huvo boon souitos of offItIonty und woulh, hoy huvo sono noguIvo
Inuts. Conuoi oiiois tun tuuso soiIous huin o IndIvIduuls und oigunIzuIons. Pooi duu quulIy Is
ulso iosonsIblo foi dIsiuIons und lossos foi busInossos. 1obs tun bo los whon tonuois ioluto
woilois oi usls botono unnotossuiy In ioongInooiod busInoss iotossos. Tho ubIlIy o own und uso
u tonuoi nuy bo oxutoibuIng sotIootononIt dIsuiIIos unong dIffoion iutIul gious und sotIul
tlussos. WIdosioud uso of tonuois Intiousos ooiunIIos foi tonuoi tiIno und tonuoi ubuso.
Conuois tun ulso tiouo houlh ioblons, suth us RS!, tonuoi vIsIon syndiono, und othnosioss.
Key Terms
AccountabiIit, 120
CaraI tunncI snoromc C1S), 140
Comutcr abusc, 14S
Comutcr crimc, 14S
Comutcr vision snoromc CVS), 140
Cookics, 1J4
Coright, 1J0
Dcscartcs ruIc of changc, 1J0
DigitaI oivioc, 148
DigitaI MiIIcnnium Coright Act
DMCA), 141
Duc roccss, 120
IthicaI no frcc Iunch" ruIc, 1J0
Ithics, 124
Iair Information Practiccs IIP), 1J2
GoIocn RuIc, 1J0
ImmanucI Kants CatcgoricaI Imcrativc, 1J0
Information rights, 12S
Informco conscnt, 1J4
IntcIIcctuaI rocrt, 1J8
IiabiIit, 120
Nonobvious rcIationshi auarcncss NORA), 128
Ot-in, 1J7
Ot-out, 1J6
I56 Part 0ne 0rqunzuLuns, MunuqemenL, und Lhe NeLwurked EnLerprse
PJP, 1J7
Patcnt, 140
Privac, 1J1
ProfiIing, 127
Rcctitivc strcss injur RSI), 140
RcsonsibiIit, 120
Risk Avcrsion PrinciIc, 1J0
Safc harbor, 1J4
Sam, 14S
Suarc, 1JS
1cchnostrcss, 140
1raoc sccrct, 1J0
UtiIitarian PrinciIc, 1J0
Vcb bcacons, 1JS
CoIIaboration and Teamwork: 0eveIoping a Corporate Ethics Code
Video Cases
VIdoo Cusos und !nsiutIonul VIdoos IllusiuIng
sono of ho tontos In hIs thuoi uio uvuIlublo.
Conut youi Insiutoi o uttoss hoso vIdoos.
keview 0uestions
I. Whu ohItul, sotIul, und olIItul Issuos uio iuIsod
by InfoinuIon sysons
- ExluIn how ohItul, sotIul, und olIItul
Issuos uio tonnotod und gIvo sono
oxunlos.
- LIs und dostiIbo ho loy othnologItul ionds
hu hoIghon ohItul tontoins.
- DIffoionIuo bowoon iosonsIbIlIy,
uttounubIlIy, und lIubIlIy.
2. Whu sotIfIt iIntIlos foi tondut tun bo usod
o guIdo ohItul dotIsIons
- LIs und dostiIbo ho fIvo sos In un ohItul
unulysIs.
- !donIfy und dostiIbo sIx ohItul iIntIlos.
J. Why do tononoiuiy InfoinuIon sysons
othnology und ho !noino oso thullongos o
ho iootIon of IndIvIduul iIvuty und Inollot-
uul iooiy
- DofIno iIvuty und fuIi InfoinuIon iutItos.
- ExluIn how ho !noino thullongos ho
iootIon of IndIvIduul iIvuty und Inollot-
uul iooiy.
- ExluIn how Infoinod tonson, logIsluIon,
Indusiy solf-ioguluIon, und othnology ools
hol ioot ho IndIvIduul iIvuty of !noino
usois.
- LIs und dofIno ho hioo dIffoion iogInos hu
ioot Inollotuul iooiy iIghs.
4. How huvo InfoinuIon sysons uffotod ovoiy-
duy lIfo
- ExluIn why I Is so dIffItul o hold sofwuio
soivItos lIublo foi fuIluio oi In|uiy.
- LIs und dostiIbo ho iIntIul tuusos of
syson quulIy ioblons.
- Nuno und dostiIbo foui quulIy-of-lIfo Inuts
of tonuois und InfoinuIon sysons.
- DofIno und dostiIbo othnosioss und RS! und
oxluIn hoIi ioluIonshI o InfoinuIon
othnology.
0iscussion 0uestions
I. Should iodutois of sofwuio-busod soivItos, suth
us ATMs, bo hold lIublo foi otononIt In|uiIos
suffoiod whon hoIi sysons fuIl
2. Should tonunIos bo iosonsIblo foi unonloy-
non tuusod by hoIi InfoinuIon sysons Why
oi why no
J. DIstuss ho ios und tons of ullowIng tonunIos
o unuss oisonul duu foi bohuvIoiul uigoIng.
WIh hioo oi foui of youi tlussnuos, dovolo u toi-
oiuo ohIts todo hu uddiossos boh onloyoo
iIvuty und ho iIvuty of tusonois und usois of
ho toioiuo Wob sIo. Bo suio o tonsIdoi o-nuIl
iIvuty und onloyoi nonIoiIng of woilsIos, us
woll us toioiuo uso of InfoinuIon ubou onloy-
oos tontoinIng hoIi off-ho-|ob bohuvIoi (o.g.,
lIfosylo, nuiIul uiiungonons, und so foih). !f os-
sIblo, uso Googlo SIos o os lInls o Wob ugos,
oun tonnunItuIon unnountonons, und woil
ussIgnnons, o biuInsoin, und o woil
tolluboiuIvoly on io|ot dotunons. Tiy o uso
Googlo Dots o dovolo youi soluIon und iosonu-
Ion foi ho tluss.