1-1

BA 385 - Business Environment

Week 9Chapter 10 Technology

Issues

1-2

BA 385 - Business Environment

The Nature of Technology

• Technology relates to the application of knowledge, including the processes and applications for the solving of problems, performance of tasks, and creation of new methods to obtain desired outcomes.

• Evolution:– Hunter/Gatherer– Agriculture– Industrial Revolution– Information Technology

• Accelerating Change

1-3

BA 385 - Business Environment

Characteristics of Technology

• Dynamic: Constant change that challenges the structure of social institutions to adjust.– I.e. transportation, information,

communication.

• Reach: Broad and pervasive impact.• Self-sustaining: Functions as a

catalyst to spur even faster development.

1-4

BA 385 - Business Environment

Effects of Technology

• Can provide new methods for handling tasks previously thought impossible.

• Has increased productivity, output, and growth on a global scale.

• Social and economic imbalances and unexpected consequences.

1-5

BA 385 - Business Environment

Is Quality of Life Really Improving?

“Our inventions are wont to be pretty toys which distract our attention from serious things. They are but improved means to an unimproved end, an end which it was already but too easy to arrive at.”

Henry David Thoreau ~ Walden, 1854

1-6

BA 385 - Business Environment

Technology’s Influence on the Economy

• A major factor in the economic growth in the U.S.– Educational technologies.– Increased support for gov’t-based research.– Commitment to research and development

in the public and private sectors.– Also: increased efficiencies and productivity.

• Economic growth brings more jobs and improved living standards.

1-7

BA 385 - Business Environment

Economic Concerns About the Use of Technology

• Small businesses may be less able to take advantage of technological changes.

• It creates a class breakdown between the “haves” and “have-nots.”

• The ability to purchase technology affects the nature of competition.

• It reduces privacy and encourages the growth of cyber crime.

1-8

BA 385 - Business Environment

The Internet

• Established for research 1971• Use exploded with intro of World

Wide Web interface (1991) and Mosaic Browser (1993).

• Emergence of Broadband (2000)• Wireless Expands (2002)

1-9

BA 385 - Business Environment

The Internet - Major Issues

• Fraud• Privacy• File Sharing (Intellectual Property)• Offensive material• Spam• Hacking• Virus/worms (update your anti-virus

software)

1-10

BA 385 - Business Environment

Fraud

• Auctions - shill bidding etc.• Credit Card - 9 x greater on-line• Phone charges - hidden reconnects• Offer scams - money transfers, sham

products etc• Fake web sites (spoofing) /emails.• Driven by anonymity, quick access, low

overhead, satellite access and lack of regulation.

1-11

BA 385 - Business Environment

The Internet and Privacy

• Shopping on the Internet allows for businesses to track consumers.

• Information can be collected on the Internet with or without a person’s knowledge.

• Information can be shared and aggregated (opt-in vs. opt-out).

• Though, technology also makes it easier for law enforcement to catch criminals.

1-12

BA 385 - Business Environment

The Internet and Privacy (cont.)

• Cookies, email & TCP/IP address• Phishing for info from children• Identity theft is of growing

concern.– 10,000 reported incidents per year– Account for 43% of compaints to FTC– Total $745 million in losses– Average $6,767 per incident

1-13

BA 385 - Business Environment

Gov’t Response to Privacy

• Privacy Act (1974)• Right to Financial Privacy Act (1978)• Computer Security Act (1987)• Computer Matching and Privacy Protection

Act (1988)• Telephone Consumer Protection Act (1991)• Driver Privacy Protection Act (1993)• Fair Credit Reporting Act (1997)• Children’s Online Privacy Protection Act

(2000)

1-14

BA 385 - Business Environment

International Initiatives on Privacy

• European Union Directive on Data Protection mandates companies that collect personal information to explain how the information will be used and requires them to obtain permission from the consumer.

• Direct Marketing Association of Canada has supported the Personal Information Protection and Electronic Documents Act establishing personal privacy rights.

• Japan’s Electronic Network Consortium resolves issues with the Internet.

1-15

BA 385 - Business Environment

Privacy Officers and Certification

• Privacy officers develop systems and policies to protect consumers’ interests, thus helping to deter government regulation.

• Nonprofit organizations have helped in developing privacy policies.– Better Business Bureau Online– TRUSTe

1-16

BA 385 - Business Environment

Intellectual Property

• Ideas and creative materials are developed to solve problems, carry out applications, and educate and entertain others.

• Generally protected via patents and copyrights.

• U.S. copyright laws work to protect original works in text form, pictures, movies, computer software, musical multimedia, and audiovisual works.– Digital Millennium Copyright Act (1998)– See http://www.eef.org for alternate viewpoint

1-17

BA 385 - Business Environment

Copyright Facts

• Copyright notices are not necessary to protect private and original work created after April 1, 1989.

• The fair use exemption allows for commentary, parody, and news reporting without the copyright holder’s permission.

• Legal defense of a copyright is not necessary for maintaining a copyright.

• Most copyright litigation is civil, not criminal.

1-18

BA 385 - Business Environment

Biotechnology

Using biology to discover, develop, manufacture, market, and sell products and services.

1-19

BA 385 - Business Environment

Biotechnology Issues

• Cost of Pharmaceuticals• Stem cell research• Cloning• Genetic testing and profiling

1-20

BA 385 - Business Environment

BiotechnologyGenetically Modified

Foods• “Frankenfoods”• Safety of product• Safety of process/cross-

pollination• Labeling issues• Traceability

1-21

BA 385 - Business Environment

Biotechnology Nonprofits• American Society for

Bioethics and Humanitieswww.asbh.org

• GE Food Alert Campaign Centerwww.gefoodalert.org

• National Coalition for Patient Rightswww.nationalcpr.org

• Do No Harmwww.stemcellresearch.org

• Council for Responsible Geneticswww.gene-watch.org

• Bioethics.netwww.bioethics.net

• Human Genome Research Institutewww.nhgri.nih.gov

1-22

BA 385 - Business Environment

Strategic Technology Assessment

• Technology assessments foresee the effect of new products and processes on a firm’s operations.– Used to evaluate performance and

chart strategic courses of action in response to technology.

– Allows estimation of the benefits of adopting a specific technology against the costs.