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:  Compliance, Ethics, and Security

Intro Cont.

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

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

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

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

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

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Make sure important data is not leaked to competitors Beware of hackers Ethics

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Stakeholders expect ethical practices Legal issues Actions affect culture

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“If the CEO did it, why can’t I do it?”

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

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

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

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

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

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

Questions?

Works Cited

   Cabrera, Alice. “Chip Company Suing Ex-CEO.” Jan 2008.

Los Angeles Business Journal.

ysuingexceo.html

9 March 2009. http://www.tradesecretsblog.info/2009/01/chip_compan 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/stolentradese cretslawsuitc.html

Praveen, Radhika. “Sexual Harassment Goes Electronic.” June 2006. Techworld. 9 March 2009. http://www.techworld.com/security/features/index.cfm?f

eatureid=2600

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