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Executive Dilemmas in the Information Age

Executive Dilemmas in the Information Age. Ch. 5 Case Study – Pg 46 Matt Bushmann. Introduction. I.T. has evolved beyond infrastructure I.T. is used to support business strategy Use of I.T. is needed to survive Board and Executive Teams increased use of I.T. I.T. issues:

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Executive Dilemmas in the Information Age

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  1. Executive Dilemmas in the Information Age Ch. 5 Case Study – Pg 46 Matt Bushmann

  2. Introduction • I.T. has evolved beyond infrastructure • I.T. is used to support business strategy • Use of I.T. is needed to survive • Board and Executive Teams increased use of I.T. • I.T. issues: • Compliance, Ethics, and Security

  3. Intro Cont. • Computers = Key business tools • Generate, Process, and Store Crucial Information • Executives must understand how I.T. can affect a business

  4. Stolen Proprietary Info • Executive accepted a job with a competitor - stole proprietary information • Hard Drive from Laptop & Desktop analyzed • Exec. Downloaded • Process Specifications • Distributor Agreements • Email between Exec and Competitor revealed intent to provide info for additional options

  5. Sexual Harassment • Woman employee accused supervisor • Fired for “poor performance” • She sued her ex-boss and company • Plaintiff's attorney hire computer company to analyze computer • Recovered deleted emails • No longer “he said/she said” issue

  6. Stolen Trade Secrets • Board of directors demote CEO • He was later terminated • Planned to quit same time he was fired • Plans to establish competitive company • Took two computers; 4 days later returned • Attorney send company for analysis • File directory deleted during 4 day period • “To Do List” – Destroy evidence on Computer • Company’s Database value - $100 Million

  7. Explain why understanding technology, especially in the areas of security and ethics, is important for a CEO. How do CEO’s actions affect the organizational culture? • Security • Make sure important data is not leaked to competitors • Beware of hackers • Ethics • Stakeholders expect ethical practices • Legal issues • Actions affect culture • “If the CEO did it, why can’t I do it?”

  8. Identify why executives in nontechnological industries need to worry about technology and its potential business ramifications. • Competitors use technology • Suppliers use technology • Company may develop competitive edge vs. competitor • Customers expect use of technology in today’s world

  9. Describe why continuously learning about technology allows an executive to better analyze threats and opportunities. • Threats • If you are not learning you’re behind • Must be continuously evolving • Keep an eye on your competitors • Opportunities • Gain competitive edge • Improve effectiveness and efficiency

  10. Identify three things that a CPO could do to prevent the above issues. • Constantly scan hard drives for suspicious activity • Provide control systems that alarm CPO when certain words are used in emails • Make sure all desktops are kept inside the building

  11. Current Information • Recent Survey of 600 workers • More than 50% said they have already downloaded competitive corporate data and plan to use it as a negotiating tool • When threatened to be fired tomorrow, 71% said that they would take corporate data with them to their next employer • Desirable Information • Customer and contact databases • Plans and proposals; product information • Access and password codes

  12. Current Info Cont. • Employer in the U.K. might face up to 10,000 Pounds ($13,806) in recruiting costs for senior manager fired after sexual harassment case • 3 reasons for increase via email: • Poor monitoring and software controls • Failure to communicate company policy • Failure to communicate personal responsibility to employees

  13. Current Info Cont • Pulte Homes – Alburquerque, NM • Top executive stole $1 Million market study • Yahoo sues former employee • Trade secrets were stolen and sold to MForma Group Inc. • International Rectifier Corp. • Former CEO stole intellectual property, information, and technology related to company’s research on computer chip material

  14. Questions?

  15. Works Cited • Cabrera, Alice. “Chip Company Suing Ex-CEO.” Jan 2008. Los Angeles Business Journal. 9 March 2009. http://www.tradesecretsblog.info/2009/01/chip_companysuingexceo.html • Cavicchi, Jon. “Stolen Trade Secrets?: Lawsuit Claims Exec Took $1M Study From Pulte Homes” April 2008. Los Angeles Business Journal. 9 March 2009. http://www.tradesecretsblog.info/2008/04/stolentradesecretslawsuitc.html • Praveen, Radhika. “Sexual Harassment Goes Electronic.” June 2006. Techworld. 9 March 2009. http://www.techworld.com/security/features/index.cfm?featureid=2600

  16. Works Cited Cont. • Schwartz, Barry. “Yahoo Sues Ex-Employee for Stolen Trade Secrets. March 2008. Search Engine Watch. 9 March 2009. http://blog.searchenginewatch.com/060301081617 • “Stolen Data and Proprietary Information.” 2009. KSC Enterprises. 9 March 2009. http://www.ksce.biz/stoleninfo.htm

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