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Knowledge Management, Ethics and Privacy Define knowledge management, data, information, knowledge, intellectual capital Compare and contrast tacit and explicit knowledge Discuss the knowledge management process Discuss four modes to knowledge conversion Discuss Mason’s PAPA principles of ethics Discuss normative theories of business ethics Describe ways to gather information customer demographics Discuss the use of privacy policies Discuss what cookies are and describe their use Discuss the role of TRUSTe Discuss approaches to protecting intellectual property Definitions Knowledge management - processes necessary to capture, codify and transfer knowledge across the organization to achieve competitive advantage Intellectual capital - knowledge that has been identified, captured and leveraged to produce higher-value goods or services or some other competitive advantage for the firm Types of Knowledge Tacit knowledge context-specific personal hard to formalize and communicate Explicit knowledge easily collected, organized and transferred can be codified objective theoretical Knowledge Management Process Knowledge generation - discover new knowledge Knowledge codification - capture and organize knowledge so it can be found and reused define strategic intent identify & evaluate existing knowledge consider use Knowledge transfer- transmitting knowledge from person or group to another and absorbing that knowledge Modes of Knowledge Conversion TO Tacit Knowledge FROM TO Explicit Knowledge TO Tacit SOCIALIZATION EXTERNALIZATION Knowledge Shared experiences Use of metaphors, Water cooler analogies and FROM Apprenticeship models INTERNALIZATION COMBINATION Explicit Exchange and Knowledge Learning by doing Studying previously synthesis from FROM captured knowledge existing explicit (manuals, knowledge documentation) Ethics about Information (Mason, MISQ, 1986) Privacy Accuracy Property Who owns data about people? Who owns intellectual efforts on web? Copyrights, watermarks & other protections Accessibility Haves vs. have nots Normative Theories of Business Ethics Stockholder theory employ legal, non-fraudulent means take long view of shareholder interest Stakeholder theory fiduciary responsibility to all those who hold a stake in firm stockholders, customers, employees, suppliers, local community Social contract theory consider needs of society (net gain) Collecting Personal Data on the Web 93% of 364 commercial sites collect some type of personal information 66% of these show a warning Information collected: 91%: e-mail address 81%: name 63%: postal address 52%: phone number 31%: age/birth date 5%: social security number USA Today Getting Statistics about Usage Use HTTPD log files Log counts every access Logs contain domain names, not user names, of visitors Logs also include time, date and accessed URL Get logs from ISP Logs themselves may be large Use of Log Files To count visitors count users accessing home page but, users may skip home page by accessing inside page directly To improve pages access patterns by time (may help determine best time for updates) pages being accessed audio, movies or popup images that may be omitted Other Methods of Collecting Demographics Page counters updatable GIF picture cgi-bin program Cookies Web forms and e-mails Online focus groups and experiments Usenet Inducement Tracking/Demographic Services Cookies Built-in feature of browser Can refuse to accept 22% of respondents always accept (8th GVU) 23% have computer warn them before cookies are set Cookies file: user’s identification codes Used to trace where user is at site Overt or invisible to user Invasion of privacy? Cookie Example: C:\WINDOWS\Cookies\csaunder@amazo n(2).txt session-idtime925200000amazon.com/0407193190 429266051178828716829264692*session -id002-51933732797425amazon.com/0407193190429266 051178878716829264692*xmainWk2cXGW@WkDwfYSZ4vcL5Aamazo n.com/0291634137631961269358702364 829255312*ubid-main002-82555885548122amazon.com/0291634137631961 269379694819229255273* Cookie Example INTERSE129115920935528firefly.com/039 455713282930560774091388829256122* Tracking/Demographic Services I/PRO: Internet Profiles Corporation I/Code: universal registration system leader in web tracking acquired by Engage Technologies DoubleClick Inc. CMGI DoubleClick, Inc Sells advertising space on network of 1400 websites Information to better customize ads Predicts what you will buy on Web based on what you have purchased online and offline Pay $1 billion to buy Abacus Direct may need to revise privacy statement Plan requires help of online retailer CMGI, Inc. Web portals and advertising Nearly 50 Internet companies Focuses on where you spend your time online Acquired Engage Communications to gain access to profiles of 35 million anonymous Web surfers Privacy Privacy: the right to be let alone only authorized collection, disclosure or other use of information static and dynamic personal information Policy about how information will be used Example: amazon.com Give information provider something in return Small bits of information vs. one consolidated database Privacy Dangers Privacy protections browser standards (Platform for Privacy Preferences) standards adopted by sellers and audited by third party (Trust-e) Legislation - European Data Protection Directive Customer affiliation via tough voluntary standard Privacy Surveys: GVU (Georgia Tech) 8th annual, October 1997 66% of respondents don’t register w/ web sites that don’t provide clear statement on how the information is going to be used 63% say giving personal information is not worth access to a site 58% say they won’t register with a site they don’t trust 63% say content providers don’t have right to resell information Privacy Surveys: TRUSTe, March 1997 Disclosure of privacy practices would increase by 50% consumer willingness to make net transactions using personal data 76% of respondents are concerned about sites monitoring their Web browsing 42% of consumers refuse to give registration info because of privacy concerns 27% sometimes falsify personal data because of privacy concerns How about this one? Amid talk of a possible government crackdown over Internet sites without proper privacy policies, almost two-thirds of federal government Web sites still aren't posting clearly labeled privacy notices linked from their home pages, according to a survey conducted by the Center for Democracy and Technology (CDT). Government Intervention? Clinton administration favors allowing industry to regulate itself Department of Commerce and Federal Trade Commission want to encourage privacy protection Internet privacy protection legislation? EU Directive on Data Protection - blocks transfer of personal information about EU citizens to countries with inadequate privacy protection State Legislation Several states considering tough privacy legislation California considering identity theft bill illegal use of someone else’s private information new curbs on disclosure of personal data for marketing purposes privacy policies giving identity-theft victims the right to sue marketers In February 2000 Federal legislation requiring registrants “opt in” for distribution of driver license information Being contested in two states Agencies for Privacy CASIE industry coalition two major advertising trade groups inform consumer how information will be shared consumer be given option that personal information won’t be shared World Wide Web Consortium P3: Platform for Privacy Preferences TRUSTe Electronic Frontier Foundation and CommerceNet Consortium: founders Founded in 1997; 1000 seal awarded in January 2000 Based on industry-supported selfregulation model Independent, non-profit privacy organization www.truste.com Privacy quiz: http://www.truste.org/users/users_challen TRUSTe Principles Informed consent No privacy without appropriate security measures Privacy standards vary according to context of use Rights to privacy can vary greatly from one country to another Informed Consent What personal information is being gathered about you How the information will be used Who the information will be shared with, if anyone is used Choices available to you regarding how collected information is used Safeguards in place to protect your information from loss,misuse, or alteration How you can update or correct inaccuracies in your information Ensuring Privacy: It Ain’t Cheap E-loan $250 TRUSTe seal of approval $520 annual fee for Better Business Bureau seal $15,000 Pricewaterhouse Cooper’s Better Web seal $250,000 for audit and follow-up $76,000 first audit $28,000 first update 700 hours staff time E-Loan - Taking the Challenge Its own site more consumer education allowing customers to block future solicitations CarFinance.com’s existing pact re cookie use LiveCaptial.com’s tracking tool Site Rating Services Is this a legitimate business? If so, how good is this company? Bizrate: www.bizrate.com assessment of look and feel of company referrals from consumers references from BBB. Local CC newspapers and news magazines surveys such as J.D. Powers approvals from trusted businesses: JD Digital Copyright Wording in On-line Databses No downloading at all No electronic storage in machine-readable form or transmitted in any means No copies or distribution, internally or to third parties Limitations on type of use (I.e., mailing labels) Enforcing Digital Copyrights w/ Technology Controlling server access registrations and passwords once on site may copy higher fees for more specialized information Controlling document access software to prevent viewing without authorization unique file formats requiring certain software encryption Virtual watermarks Virtual Watermarks Work is still visible Is not encryption or digital signature Watermark may be visible or invisible Image watermarking spatial domain -can flip low order bits of selected pixels color separation - watermark appears only in one color band Fast Fourier Transform - changes pixels in lower frequencies Can also be applied to text Watermark Example (visible) http://www.acm.org/~hlb/publications/dig _wtr/figure1.jpg http://www.acm.org/~hlb/publications/dig _wtr/figure2.jpg Controlling Use of Work Hardware Audio Home Recording Act to prevent serial copying Software files with instructions governing or controlling distribution can limit use with “header” information Limited use number of times period of time Implementing Electronic Contracts Software for tracking and monitoring uses Software metering use Library of Congress Management System registration and recording system digital library system with repositories of work rights management system Associations to enforce copyrights Approaches can’t be too cumbersome
