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Copyright 2011 by The McGraw-Hill Companies, I nc. All rights reserved.

McGraw-Hill/I rwin

Managing Technology
and Innovation
Chapter 13
Ch. 13 Key Learning Objectives
Evaluating potential breaches of privacy and initiatives
taken by business to manage stakeholders privacy
Assessing how secure information is in a free-access
information society given the vulnerability to zombies,
computer viruses and worms, and hackers
Understanding the role and responsibilities of the
organizations chief information officer
Analyzing threats and safeguards implemented in
response to the Internet pornography industry
Examining violations of intellectual property through the
piracy of software, music, movies, and books, and how
business and government attempt to prevent these illegal
Recognizing the ethical and social challenges that arise
from technological breakthroughs in science and medicine
Protecting Privacy
The potential for breaches of privacy are everywhere
Employees have access to new technologies at work
and companies may be monitoring usage, raising
employee concerns about invasions of privacy

Businesses have adopted privacy policies to explain what use
of the companys technology is permissible and how it will
monitor employee activities

More aggressive efforts by cyber criminals resulted in a
steep rise of attacks on information security
Recent technological advancements have increased the
number of ways that privacy violations may occur
Managing the Protection of Privacy
Platform for Privacy Preference Project (P3P) provides
users with software that enables them to define what
information they are willing to divulge on the Internet

Since 2008, representatives from the United States and
27 European countries have gathered annually for Data
Privacy Day
The event, which brings together privacy
professionals, government leaders, academics and
students, and business executives, was designed to
raise awareness and generate discussion about data
privacy practices and rights
Managing the Protection of Privacy
The Childrens Online Privacy Protection Act of 1998
(COPPA) requires commercial Web sites to collect a
verifiable form of consent from the parent or guardian of
any user below the age of 13

It will be difficult to achieve international government
control of privacy, especially as it pertains to the

The management of privacy may need too come from
the Internet companies themselves
Management of Information Security
Businesses now acutely aware of maintaining information
Information security and various computer-related crimes cost U.S.
businesses an estimated $67 billion annually, according to an FBI
How to best manage information security remains a major challenge
for businesses
The corporate nemesis responsible for creating and
spreading computer zombies, viruses, and worms is called
a computer hacker
Although businesses are spending millions of dollars to
protect the information they sore from hackers and other
criminals, some organizations have discovered that their
own employees can be their worst security leak
Business Response to Information Security Invasions
Businesses have invested more resources in protecting
their information
The Federal Trade Commission began a series of
workshops offered to businesses, such as Protecting
Personal Information: Best Practices for Businesses
The simple five key principles advocated by the FTC were
these: take stock, scale sown, lock it, pitch it, and plan
Companies now using honeypots, a system used by
security professionals to lure hackers to a fabricated
website that can track all their movements

Chief Information Officer (CIO)
Is responsible for managing technology, including
its many security issues, for companies

Position has been elevated in recent years,
42 percent currently report directly to the CEO

CIOs must increasingly see the big corporate

Part of job is enabling or driving business
innovation through use of technology
Internet Pornography
Is one of the most active and lucrative areas of e-commerce
Estimates claimed that there were more than 4 million
pornography Web sites, nearly 400 million Web pages, and
approximately 2.5 billion daily pornography emails worldwide

Some countries aggressively monitor sites for objectionable

Companies such as Verizon, Sprint, and Time Warner
Cable have begun to help parents control their children's
access to pornography by agreeing to block access to
Internet bulletin boards and Web sites nationwide that
disseminate child pornography
Protecting Intellectual Property
Intellectual property
The ideas, concepts, and other symbolic creations of the
human mind
Protected in U.S. by copyright, patent and trademark laws

Theft of intellectual property, artistic performance, or
copyrighted material exploded with the entrance of the
Internet and global connectivity

Whether it is computer-based software, musical recordings,
video movie productions, or electronic versions of books,
piracy is on the rise and victims are retaliating turning to
governments for enforcement and protection of their rights,
or seeking collaborative solutions to this ethical challenge
Government and Industry Efforts to Combat Piracy
Companies have sought assistance on the issue of
software piracy from governmental agencies and the
courts both inside and outside the United States

In 1998, the United States passed the Digital Millennium
Copyright Act, making it a crime to circumvent antipiracy
measures built into most commercial software agreements
between the manufacturer and the user
In China, where experts estimate that 90 percent of all
software in the use is unlicensed, government officials have
also take steps to curb piracy

Another approach businesses have tried to protect
music copyrights involves streaming
Managing Scientific Breakthroughs
The application of engineering to create materials on a molecular or
atomic scale
By 2008, almost 800 products that used some form of nanotechnology
were on the market
So far, at least, the U.S. government has not regulated the use of
nanomaterials and nanoparticles in consumer products

Human genome
When Celera Genomics Group announced that it completed the first
sequencing of human DNA makeup, the achievement was hailed as
the most significant scientific breakthrough since landing on the moon
A new era of medicine, as well as great opportunity for biotechnology
companies, appeared to be born with the decoding of the human
Managing Scientific Breakthroughs
Biotechnology and Stem Cell Research
Tissue engineering is the growth of tissue in a laboratory dish for
experimental research
Stem-cell research is research on nonspecialized cells that have the
capacity to self-renew and to differentiate into more mature cells

Clearly stem cell research leading to the possibility of human cloning
and the human consumption of food cloned from animals are important
issues and will likely increase in prominence in the near future

Terrorist groups see the use of deadly bioengineered diseases and
poisons, such as smallpox, anthrax, and bubonic plague, as effective
Managing Scientific Breakthroughs
Genetically engineered foods
Genetic engineering is altering the natural makeup of a living
organism, allowing scientists to insert any gene in to a plant

Significant economic implications for agricultural industry

Genetically modified foods is food processed from genetically
engineered crops

Early on was backlash against genetically modified foods in
Europe, initial opposition has weakened

By 2007, developing countries planting genetically modified
seeds outnumbered developed countries, according to a report
from the International Service for the Acquisition of Agri-biotech
Commitment to Biotechnology Crop
Planting by Country
Figure 13.1