IT2222

Performance Task
Facing the Adverse Effects
Objective:

At the end of the exercise, the students should be able to:

 Recommend solutions to prevent the adverse effects of information systems and technology on
businesses.

Requirements:

 Internet Connection
 MS Word

Instructions: (3 items x 20 points)

 Assess the given news excerpt based on the adverse effects of information systems and technology.
 Provide a problem statement and recommend reasonable solutions in at least five (5) sentences.

Problem #1:

On July 27, 2022, Shopify CEO Tobi Lütke stated it would reduce its staff by 10%. He admitted that the
company grew quickly following the COVID e-commerce boom and overestimated its beneficial effects.
They expected more people to continue making online purchases. The company expected its share of
online transactions to advance by five to ten years. Unfortunately, Lütke admitted that the projection did not
pay off.

As a result, Shopify shares closed their trading day on the Toronto Stock Exchange at $40.69. This number
meant its value dropped by 14%, so the stock is down 74% this year.

Lütke said he would remove people from recruiting, sales, and support. Also, Shopify would remove “over-
specialized and duplicate roles” and others that were “convenient to have but too far removed from building
products.”
Source: https://technology.inquirer.net/116949/shopify-cuts-workforce-by-10-amid-e-commerce-downturn

Problem Statement:

Resolution:

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Problem #2:

Eastman Kodak is the company that brought the phrase “Kodak moment” into widespread use with its
cameras and film. The company’s cameras tended to be lower-priced, and it made more money on the film
that the cameras used. But the company failed to keep up with many of the innovations brought by the
digital age. As digital cameras became popular, reducing the need for photographic film and cameras,
Kodak ran into financial difficulties. The company ultimately filed for bankruptcy in 2012 before reorganizing
and emerging from Chapter 11 in 2013.

Ironically enough, the company’s researchers had developed a digital camera as early as the 1970s, but
the company did not see nor seize its potential. Or maybe management didn’t want to cut into the
company’s lucrative film sales.

Kodak sold off several lines of business during tough times and is now focused on printing, graphic, and
professional services for businesses.

Source: https://www.investopedia.com/articles/investing/072115/companies-went-bankrupt-innovation-lag.asp

Problem Statement:

Resolution:

Problem #3:

Accenture, a global professional services company with leading digital, cloud, and security capabilities, has
recently confirmed they’ve been hit with a ransomware attack. The threat actor behind the operation is none
other than the LockBit 2.0 ransomware gang.

Two months ago, the LockBit ransomware gang introduced their new LockBit 2.0 ransomware-as-a-service
to the public. BleepingComputer reported that the threat actors announced they would publish the data if a
$50 million ransom were not paid.

Accenture had confirmed the attack to at least one CTI vendor, and the IT services provider is also notifying
more customers. Moreover, cybercrime intelligence firm Hudson Rock revealed that Accenture had 2,500
compromised computers belonging to employees and partners.

Source: https://heimdalsecurity.com/blog/accenture-confirms-ransomware-attack/

Problem Statement:

Resolution:

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GRADING RUBRIC:
Performance Standards Points
The student provided a detailed and reasonable resolution. 10
The student provided a relevant problem statement. 5
The resolution is explained in at least five (5) sentences. 5
TOTAL 20

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