Knowledge Management Ethics and Privacy z Define knowledge

Knowledge Management, Ethics and Privacy z Define knowledge management, data, information, knowledge, intellectual capital z Compare and contrast tacit and explicit knowledge z Discuss the knowledge management process z Discuss four modes to knowledge conversion z Discuss Mason’s PAPA principles of ethics z Discuss normative theories of business ethics z Describe ways to gather information customer demographics z Discuss the use of privacy policies z Discuss what cookies are and describe their use z Discuss the role of TRUSTe z Discuss approaches to protecting intellectual property

Definitions z. Knowledge management - processes necessary to capture, codify and transfer knowledge across the organization to achieve competitive advantage z. 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 z. Tacit knowledge ycontext-specific ypersonal yhard to formalize and communicate z. Explicit knowledge yeasily collected, organized and transferred ycan be codified yobjective ytheoretical

Knowledge Management Process z Knowledge generation - discover new knowledge z Knowledge codification - capture and organize knowledge so it can be found and reused ydefine strategic intent yidentify & evaluate existing knowledge yconsider use z Knowledge transfer- transmitting knowledge from person or group to another and absorbing that knowledge

Modes of Knowledge Conversion

Ethics about Information (Mason, MISQ, 1986) z. Privacy z. Accuracy z. Property y. Who owns data about people? y. Who owns intellectual efforts on web? y. Copyrights, watermarks & other protections z. Accessibility y. Haves vs. have nots

Normative Theories of Business Ethics z. Stockholder theory yemploy legal, non-fraudulent means ytake long view of shareholder interest z. Stakeholder theory yfiduciary responsibility to all those who hold a stake in firm ystockholders, customers, employees, suppliers, local community z. Social contract theory yconsider needs of society (net gain)

Collecting Personal Data on the Web z 93% of 364 commercial sites collect some type of personal information z 66% of these show a warning z. Information collected: y 91%: e-mail address y 81%: name y 63%: postal address y 52%: phone number y 31%: age/birth date y 5%: social security number USA Today

Getting Statistics about Usage z. Use HTTPD log files z. Log counts every access z. Logs contain domain names, not user names, of visitors z. Logs also include time, date and accessed URL z. Get logs from ISP z. Logs themselves may be large

Use of Log Files z. To count visitors ycount users accessing home page ybut, users may skip home page by accessing inside page directly z. To improve pages yaccess patterns by time (may help determine best time for updates) ypages being accessed yaudio, movies or popup images that may be omitted

Other Methods of Collecting Demographics z. Page counters yupdatable GIF picture ycgi-bin program z. Cookies z. Web forms and e-mails z. Online focus groups and experiments z. Usenet z. Inducement z. Tracking/Demographic Services

Cookies z. Built-in feature of browser z. Can refuse to accept y 22% of respondents always accept (8 th GVU) y 23% have computer warn them before cookies are set z. Cookies file: user’s identification codes z. Used to trace where user is at site z. Overt or invisible to user z. Invasion of privacy? y. Good for narrowcasting

Cookie Example: C: WINDOWSCookiescsaunder@amazo n(2). txt zsession-idtime 925200000 amazon. com/04071931904 29266051178828716829264692*sessionid 002 -51933732797425 amazon. com/0407193190429266 051178878716829264692*xmain. Wk 2 c. XGW@Wk. Dwf. YSZ 4 vc. L 5 Aamazo n. com/0291634137631961269358702364 829255312*ubid-main 002 -82555885548122 amazon. com/0291634137631961 269379694819229255273*

Cookie Example z. INTERSE 129115920935528 firefly. com/039 455713282930560774091388829256122*

Tracking/Demographic Services z. I/PRO: Internet Profiles Corporation y. I/Code: universal registration system yleader in web tracking yacquired by Engage Technologies z. Double. Click Inc. z. CMGI

Double. Click, Inc z. Sells advertising space on network of 1400 websites z. Information to better customize ads z. Predicts what you will buy on Web based on what you have purchased online and offline z. Pay $1 billion to buy Abacus Direct ymay need to revise privacy statement z. Plan requires help of online retailer

CMGI, Inc. z. Web portals and advertising z. Nearly 50 Internet companies z. Focuses on where you spend your time online z. Acquired Engage Communications to gain access to profiles of 35 million anonymous Web surfers

Privacy z. Privacy: the right to be let alone yonly authorized collection, disclosure or other use of information ystatic and dynamic personal information z. Policy about how information will be used y. Example: amazon. com z. Give information provider something in return z. Small bits of information vs. one consolidated database

Privacy z. Dangers z. Privacy protections ybrowser standards (Platform for Privacy Preferences) ystandards adopted by sellers and audited by third party (Trust-e) y. Legislation - European Data Protection Directive z. Customer affiliation via tough voluntary standard

Privacy Surveys: GVU (Georgia Tech) 8 th annual, October 1997 z 66% of respondents don’t register w/ web sites that don’t provide clear statement on how the information is going to be used z 63% say giving personal information is not worth access to a site z 58% say they won’t register with a site they don’t trust z 63% say content providers don’t have right to resell information

Privacy Surveys: TRUSTe, March 1997 z. Disclosure of privacy practices would increase by 50% consumer willingness to make net transactions using personal data z 76% of respondents are concerned about sites monitoring their Web browsing z 42% of consumers refuse to give registration info because of privacy concerns z 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? z. Clinton administration favors allowing industry to regulate itself z. Department of Commerce and Federal Trade Commission want to encourage privacy protection z. Internet privacy protection legislation? z. EU Directive on Data Protection - blocks transfer of personal information about EU citizens to countries with inadequate privacy protection

State Legislation z. Several states considering tough privacy legislation z. California considering identity theft bill yillegal use of someone else’s private information ynew curbs on disclosure of personal data for marketing purposes yprivacy policies ygiving identity-theft victims the right to sue marketers z In February 2000 Federal legislation requiring registrants “opt in” for distribution of driver license information y. Being contested in two states

Agencies for Privacy z. CASIE yindustry coalition ytwo major advertising trade groups yinform consumer how information will be shared yconsumer be given option that personal information won’t be shared z. World Wide Web Consortium y. P 3: Platform for Privacy Preferences

TRUSTe z. Electronic Frontier Foundation and Commerce. Net Consortium: founders z. Founded in 1997; 1000 seal awarded in January 2000 z. Based on industry-supported selfregulation model z. Independent, non-profit privacy organization www. truste. com z. Privacy quiz: http: //www. truste. org/users_challen

TRUSTe Principles z. Informed consent z. No privacy without appropriate security measures z. Privacy standards vary according to context of use z. Rights to privacy can vary greatly from one country to another

Informed Consent y. What personal information is being gathered about you y. How the information will be used y. Who the information will be shared with, if anyone is used y. Choices available to you regarding how collected information is used y. Safeguards in place to protect your information from loss, misuse, or alteration y. How you can update or correct inaccuracies in your information

Ensuring Privacy: Ain’t Cheap It E-loan z$250 TRUSTe seal of approval z$520 annual fee for Better Business Bureau seal z$15, 000 Pricewaterhouse Cooper’s Better Web seal z$250, 000 for audit and follow-up y$76, 000 first audit y$28, 000 first update y 700 hours staff time

E-Loan - Taking the Challenge z. Its own site ymore consumer education yallowing customers to block future solicitations z. Car. Finance. com’s existing pact re cookie use z. Live. Captial. com’s tracking tool

Site Rating Services z. Is this a legitimate business? If so, how good is this company? z. Bizrate: www. bizrate. com yassessment of look and feel of company yreferrals from consumers yreferences from BBB. Local CC ynewspapers and news magazines ysurveys such as J. D. Powers yapprovals from trusted businesses: JD

Digital Copyright Wording in On-line Databses z. No downloading at all z. No electronic storage in machine-readable form or transmitted in any means z. No copies or distribution, internally or to third parties z. Limitations on type of use (I. e. , mailing labels)

Enforcing Digital Copyrights w/ Technology z. Controlling server access yregistrations and passwords yonce on site may copy yhigher fees for more specialized information z. Controlling document access ysoftware to prevent viewing without authorization yunique file formats requiring certain software yencryption z. Virtual watermarks

Virtual Watermarks z. Work is still visible z. Is not encryption or digital signature z. Watermark may be visible or invisible z. Image watermarking yspatial domain -can flip low order bits of selected pixels ycolor separation - watermark appears only in one color band y. Fast Fourier Transform - changes pixels in lower frequencies z. Can also be applied to text

Watermark Example (visible) zhttp: //www. acm. org/~hlb/publications/dig _wtr/figure 1. jpg zhttp: //www. acm. org/~hlb/publications/dig _wtr/figure 2. jpg

Controlling Use of Work z. Hardware y. Audio Home Recording Act to prevent serial copying z. Software yfiles with instructions governing or controlling distribution ycan limit use with “header” information z. Limited use ynumber of times yperiod of time

Implementing Electronic Contracts z. Software for tracking and monitoring uses z. Software metering use z. Library of Congress Management System yregistration and recording system ydigital library system with repositories of work yrights management system z. Associations to enforce copyrights z. Approaches can’t be too cumbersome