Week 10 • Chapter 12 • LeBow Course Evaluation / Break • Chapter 13 • Graduating Seniors • Homework Assignment • Course/Professor Evaluation • Study for Final • Final Exam Next week – June 11, 2024 • In class – same place; same time - 6:00pm 1 Week 10 - June 4, 2024 Week 10 2 Week 10 - June 4, 2024 How Data Analytics Help an Organization (McKinsey and Co.) • Making data more transparent and usable more quickly • Exposing variability and boosting performance • Tailoring products & services; improving customer service • Improving products • Improving decision making Week 10 - June 4, 2024 3 Data Analytics Video • What Is Data Analytics? An Introduction (Full Guide) - Bing video Week 10 - June 4, 2024 4 Terminology • Knowledge management: • The processes to generate, capture, codify and transfer knowledge across the organization to achieve competitive advantage • Business intelligence: • The set of technologies and processes that use data to understand and analyze business performance • Business analytics: • The use of quantitative and predictive models, algorithms, and evidence-based management to drive decisions Week 10 - June 4, 2024 5 Data, Information, and Knowledge What product(s) does Walmart increase shipments of to Florida when hurricanes are forecasted? Beer & Strawberry Pop-Tarts Week 10 - June 4, 2024 6 Data, Information, and Knowledge Analytics indicates this priority of items: Beer Strawberry Pop-Tarts Bottled Water Batteries Fuel Containers Bread Week 10 - June 4, 2024 7 The Value of Managing Knowledge Value Sources of Value Sharing best practices • • Avoid reinventing the wheel Build on valuable work and expertise Sustainable competitive advantage • • Shorten innovation life cycle Promote long term results and returns Managing overload • • Filter data to find relevant knowledge Organize and store for easy retrieval Rapid change • • • Build on/customize previous work for agility Streamline and build dynamic processes Quick response to changes Embedded knowledge from products • • • Smart products can gather information Blur distinction between manufacturing/service Add value to products Globalization • • • Decrease cycle times by sharing knowledge globally Manage global competitive pressures Adapt to local conditions Insurance for downsizing • • • Protect against loss of knowledge when departures occur Provide portability for workers who change roles Reduce time to acquire knowledge Week 10 - June 4, 2024 8 Dimensions of Knowledge Explicit Teachable Articulable Observable in use Scripted Simple Documented Tacit Not easily teachable Not easily articulated Not easily observable Rich Complex Undocumented Examples: • Procedure manuals • Instructions w/ explicit steps Week 10 - June 4, 2024 Examples: • Estimating work • Deciding best action 9 Four Modes of Knowledge Conversion (and examples) Transferring by mentoring, apprenticeship Transferring by models, metaphors Learning by doing; Obtaining and studying manuals following manuals Week 10 - June 4, 2024 10 Knowledge Management – Four Processes 1) Generate • discover “new” knowledge 2) Capture • scan, organize, and package it 3) Codify • represent it for easy access, consumption and transfer • even as simple as using hash tags to create a folksonomy 4) Transfer • transmit from one person to another to absorb it Week 10 - June 4, 2024 11 Components of Business Analytics Component Definition Example Data Sources Data streams and repositories Applications and processes for statistical analysis, forecasting, predictive modeling, and optimization Organizational environment that creates and sustains the use of analytics tools Data warehouses; weather data Data mining process; forecasting software package Software Tools Data-Driven Environment Skilled Workforce Workforce that has the training, experience, and capability to use the analytics tools Week 10 - June 4, 2024 Reward system that encourages the use of the analytics tools; willingness to test or experiment Data scientists, chief data officers, chief analytics officers, analysts, etc. Netflix, Caesars and Capital One have these skills 12 Data Sources for Analytics • Structured (customer info., weather patterns) • Unstructured (Tweets, YouTube videos) • Internal (employee surveys) • External (vendor info.) • Data Lakes / Data Warehouses • full of a variety of information • Real-time information such as stock market prices • Resulting in “Big Data” sources Week 10 - June 4, 2024 13 Data Mining • Combing through massive amounts of data • Customer data example, usually focused on: • Buying patterns/habits (for cross-selling) • Preferences (to help identify new products/ features/enhancements to products) • Unusual purchases (spotting theft) • Identifies previously unknown relationships among data • Complex statistics can uncover clusters on many dimensions not known previously • People who like movie “x” will probably like movie “y” • People who like product “x” will probably like product “y” Week 10 - June 4, 2024 14 Four Categories of Data Mining Tools • Statistical analysis: • Answers questions such as “Why is this happening?” • Forecasting/Extrapolation: • Answers questions such as “What if these trends continue?” • Predictive modeling: • Answers questions such as “What will happen next?” • Optimization: • Answers questions such as “What is the best that can happen?” Week 10 - June 4, 2024 15 How to be Successful • Achieve a data driven culture • Create an analytical environment • Develop skills for data mining • Personnel with appropriate skill sets • Have the right software tools available • Identify the right sources of data • Use a Chief Analytics Officer (CAO) / Chief Data Officer (CDO) • Shoot for high maturity level (see next slide) Week 10 - June 4, 2024 16 Five Maturity Levels of Analytical Capabilities Level Description Source of Business Value 1 – Reporting What happened? Reduce costs of summarizing, printing 2 – Analyzing Why did it happen? Understanding root causes 3 – Describing What is happening now? Real-time understanding & corrective action 4 – Predicting What will happen? Can take best action 5 – Prescribing How should we respond? Dynamic correction Week 10 - June 4, 2024 17 Business Intelligence and Competitive Advantage • There is a very large amount of data in databases • Big data: techniques and technologies that make it economical to deal with very large datasets at the extreme end of the scale: e.g., 1021 data items • Large datasets can uncover potential trends and causal issues • Specialized computers and tools are needed to mine the data • Big data emerged because of the rich, unstructured data streams created by social IT Week 10 - June 4, 2024 18 Practical Example • Asthma outbreaks can be predicted by U. of Arizona researchers with 70% accuracy • They examine tweets and Google searches for words and phrases like • “wheezing” “sneezing” “inhaler” “can’t breathe” • Relatively rare words (1% of tweets) but 15,000/day • They examine the context of the words: • “It was so romantic I couldn’t catch my breath” vs • “After a run I couldn’t catch my breath” • Helps hospitals make work scheduling decisions Week 10 - June 4, 2024 19 Sentiment Analysis • Can analyze tweets and Facebook ‘likes’ for • Real-time customer reactions to products • Spotting trends in reactions • Useful for politicians, advertisers, software versions, sales opportunities Week 10 - June 4, 2024 20 Dark Side of Big Data • False discoveries • Omitting hidden causal factors (e.g., ice cream sales and child drownings) • Invasion of privacy • Fake news Week 10 - June 4, 2024 21 Google Analytics and Salesforce.com • Listening to the community: • Identifying and monitoring all conversations in the social Web on a particular topic or brand • Learning who is in the community: • Identifying demographics such as age, gender, location, and other trends to foster closer relationships • Engaging people in the community: • Communicating directly with customers on social platforms such as Facebook, YouTube, LinkedIn, and Twitter using a single app • Tracking what is being said: • Measuring and tracking demographics, conversations, sentiment, status, and customer voice using a dashboard and other reporting tools • Building an audience: • Using algorithms to analyze data from internal and external sources to understand customer attributes, behaviors, and profiles, then to find new similar customers Week 10 - June 4, 2024 22 Google Analytics • Web site testing and optimizing: • Understanding traffic to Web sites and optimizing a site’s content and design for increasing traffic • Search optimization: • Understanding how Google sees an organization’s Web site, how other sites link to it, and how specific search queries drive traffic to it • Search term interest and insights: • Understanding interests in particular search terms globally, as well as regionally, top searches for similar terms, and popularity over time • Advertising support and management: • Identifying best ways to spend advertising resources for online media Week 10 - June 4, 2024 23 Internet of Things (IoT) • Much big data comes from IoT • Sensor data in products can allow the products to: • Call for service (elevators, heart monitors) • Parallel park, identify location/speed (cars) • Alert you to the age of food (refrigerator) • Waters the lawn when soil is dry (sprinklers) • Self-driving cars find best route (Google) Week 10 - June 4, 2024 24 Current Tools • Artificial intelligence (AI) • Machines perform tasks formerly done by humans • Google Home and Amazon Echo devices almost seem human • Machine learning • Specific type of AI • Example: machine can “learn” what a problem appears to be, such as charges in two distant countries at the same time • Deep learning – the system learns to categorize • Feed photos of x-rays and indicate which were fractures and which were not • Do not feed any instructions about how to tell • The system then performs well in categorizing new photos Week 10 - June 4, 2024 25 Intellectual Capital vs Intellectual Property • Intellectual Capital: the process for managing knowledge • Intellectual Property: the output of creating information • Intellectual Property rights differ remarkably by country Week 10 - June 4, 2024 26 Closing Caveats • These are emerging concepts and disciplines • Sometimes knowledge should remain hidden (tacit) for protection • We should remain focused on future events, not just look over the past • A supportive culture is needed in a firm to enable effective Knowledge Management and Business Intelligence Week 10 - June 4, 2024 27 LeBow Evaluation and Break Students can access their evaluations at: https://lebow.drexel.edu/Evals Current Status: MIS-346-001 22.86% MIS Strategy 35 students completion 28 Week 10 - June 4, 2024 Week 10 29 Week 10 - June 4, 2024 Three Breaches: TJX, Target, Home Depot • TJX Company: • largest security breach of its computer system in the history of retailing: 90 million customer records were stolen • Target: 40 million; Home Depot: 56 million • All had to decide between notifying their customers immediately or waiting the 45 days allowed by the law Week 10 - June 4, 2024 30 Outcomes • Target: • Stock fell 9% a few days after disclosure • Profits fell 46% in the following quarter • TJX: • Stock fell 8% Week 10 - June 4, 2024 31 Breaches can lead to Laws • 2017: Credit firm Equifax suffered a breach revealing private information for 147.7 million USA residents (the majority of the adult population) • Enough information to enable identity theft • Sept 21, 2018: New bill requiring consumers to order “freezes” on new credit applications at no charge • That was a former revenue source for the three large credit agencies in the USA Week 10 - June 4, 2024 32 U.S. Cybersecurity Legislation 21 Jun 2022 U.S. Passes New Cybersecurity Legislation in June 2022 The bills, signed into law on June 21, 2022 aim to strengthen the federal cyber workforce and foster collaboration across all levels of government. On June 21, 2022, U.S. President Joe Biden signed two cybersecurity bills into law. The latest in a series of efforts to improve the nation’s cybersecurity, the new legislation is intended to build skills and experience among the federal cyber workforce and promote coordination on security issues at all levels of government. The State and Local Government Cybersecurity Act of 2021 is designed to improve coordination between the Cybersecurity and Infrastructure Security Agency (CISA) and state, local, tribal, and territorial governments. Under the new law, these bodies will be able to share security tools, procedures, and information more easily. Week 10 - June 4, 2024 33 Three Theories of Business Ethics Stockholder / Stakeholder / Social Contract • Managers must assess initiatives from an ethical point of view • Most managers are not trained in ethics, philosophy, and moral reasoning • Difficult to determine or discuss social norms • Three theories of business ethics are useful for assessing an initiative Week 10 - June 4, 2024 34 Business Ethics Figure 12.1 Three normative theories of business ethics. Theory Definition Metrics Stockholder Maximize stockholder wealth Will this action maximize stockholder in legal and non-fraudulent value? Can goals be accomplished manners. without compromising company standards and without breaking laws? Stakeholder Maximize benefits to all stakeholders while weighing costs to competing interests. Does the proposed action maximize collective benefits to the company? Does this action treat one of the corporate stakeholders unfairly? Social contract Create value for society in a manner that is just and nondiscriminatory. Does this action create a “net” benefit for society? Does the proposed action discriminate against any group in particular, and is its implementation socially just? Week 10 - June 4, 2024 35 Stockholder Theory • Stockholders advance capital to corporate managers who act as agents in advancing their ends • Managers are bound to the interests of the shareholders (maximize shareholder value) • Manager’s duties: • Bound to employ legal, non-fraudulent means • Must take long view of shareholder interest Week 10 - June 4, 2024 36 Stakeholder Theory • Stakeholders are: • Any group that vitally affects corporate survival and success • Any group whose interests the corporation vitally affects • Management must balance the rights of all stakeholders without impinging upon the rights of any one particular stakeholder Week 10 - June 4, 2024 37 Social Contract Theory • Corporations are expected to create more value to society than it consumes • Social contract: • Social welfare – corporations must produce greater benefits than their associated costs • Justice – corporations must pursue profits legally, without fraud or deception, and avoid actions that harm society Week 10 - June 4, 2024 38 The Three Normative Theories • • • Stockholder Theory Stakeholder Theory Social Contract Theory • How do they apply to TJX, Target, Home Depot? • What are the advantages of notifying customers early? • What are the advantages of waiting as long as legally permitted? • What are the advantages of finding a way to avoid notifying customers? Week 10 - June 4, 2024 39 Big Data • Can guess income from zip code • Therefore, can identify targets from zip codes • Should you pass up the opportunity to alert potential customers of your products? • If not, your competitors will get there first! Week 10 - June 4, 2024 40 Targeting/Scraping Snapchat Employees Abused Data Access to Spy on Users Multiple sources and emails also describe SnapLion, an internal tool used by various departments to access Snapchat user data. By Joseph Cox May 23, 2019, 3:44pm •Several departments inside social media giant Snap have dedicated tools for accessing user data, and multiple employees have abused their privileged access to spy on Snapchat users, Motherboard has learned. How your personal data is being scraped from social media 16 July 2021 By Joe Tidy, Cyber security reporter, BBC News How much personal information do you share on your social media profile pages? Name, location, age, job role, marital status, headshot? The amount of information people are comfortable with posting online varies. But most people accept that whatever we put on our public profile page is out in the public domain. So, how would you feel if all your information was catalogued by a hacker and put into a monster spreadsheet with millions of entries, to be sold online to the highest paying cyber-criminal? That's what a hacker calling himself Tom Liner did last month "for fun" when he compiled a database of 700 million LinkedIn users from all over the world, which he is selling for around $5,000 (£3,600; €4,200). In 2014, Cambridge Analytica “scraped” personal data from Facebook to target 50 million individuals for particular messages that would be of interest Week 10 - June 4, 2024 41 Targeting/Scraping • Are these examples breaches? • It was not a “break in” but many call it a breach • What are the Privacy and Ethical implications? Week 10 - June 4, 2024 42 Study in Science • Take a file from a credit card agency, with disguised credit card numbers: 1.1 million records • 90% of the identities can be found by connecting three pieces of information • Information easily found on Instagram, Facebook, FourSquare Week 10 - June 4, 2024 43 Ethical Tensions with Governments • UAE tried to require Research In Motion (Blackberry) to disclose confidential information for national security • Sony Pictures had a project ruined by North Korean threats • Google’s use is restricted in China • GDPR in Europe provides strict privacy laws that impact firms doing business in the European Union Week 10 - June 4, 2024 44 Mason’s areas of managerial concern “PAPA” Area Critical Questions Privacy What information must a person reveal about one’s self to others? What information should others be able to access about you – with or without your permission? What safeguards exist for your protection? Accuracy Who is responsible for the reliability and accuracy of information? Who will be accountable for errors? Property Who owns information? Who owns the channels of distribution, and how should they be regulated? Accessibility What information does a person or an organization have a right to obtain, under what conditions, and with what safeguards? Week 10 - June 4, 2024 45 Privacy “PAPA” Privacy Accuracy Property Accessibility • The right to be left alone • Possessing and using the “best” information helps an organization win • High priority: Keeping it safe and secure • Regulations cover the authorized collection, disclosure and use of personal information • But is it clear enough? Week 10 - June 4, 2024 46 Privacy Paradox • Convenience vs privacy • Make it harder for criminals to steal information, it will be less convenient for genuine users • 15,000 customers in 15 countries: • Overall, 51% said they wouldn’t trade off privacy for convenience; 27% said they would. • India: 40% wouldn’t; 48% would • Germany: 70% wouldn’t; 12% would • Privacy laws can vary by country and even by state in the US • No one global privacy law Week 10 - June 4, 2024 47 What about Actual Behavior? • Teens repeatedly demonstrate a lack of concern about privacy, often regretting their decisions later • 70% of recruiters have rejected candidates for postings they found online • But only 20% strengthened their privacy settings when Facebook began allowing it • Privacy seems to be valued more in Europe than in the US Week 10 - June 4, 2024 48 Software or Site Terms of Service • Ignored widely, often due to length and legal language • Pen Pal’s Terms of Service are longer than Hamlet • Fewer than 2% read the terms • A UK site included selling a person’s immortal soul and thousands accepted it Week 10 - June 4, 2024 49 Cookies • Can access only the cookie it created! • So, what’s the concern? • Easy. Have a third party place content on your page • Widespread practice: DoubleClick has content on thousands of sites • But back to convenience: Without cookies, you could not have a “shopping cart” Week 10 - June 4, 2024 50 Accuracy “PAPA” Privacy Accuracy Property Accessibility • Controls are needed to ensure accuracy • Data entry errors must be controlled and managed carefully • Data must also be kept up to date • Removing data after needed or when legally mandated is not easy Week 10 - June 4, 2024 51 Bank of America Example Accuracy or inaccuracy? • What did Bank of America do to the couple near Christmas? • Just from checking out refinancing rates, appearance of risk rose • BoA admitted error but neglected to report this to credit agencies ANY PERSONAL EXAMPLES ???? Week 10 - June 4, 2024 52 Property “PAPA” Privacy Accuracy Property Accessibility • Mass quantities of data are stored • Who owns the data? • Who has rights to it? • Who owns the images that are posted in cyberspace? Photographer? Subject? Facebook? • Proper ownership implies legal rights but duties too Week 10 - June 4, 2024 53 Accessibility “PAPA” Privacy Accuracy Property Accessibility • Access to systems and their data is paramount • Users must be able to access this data from any location (if legal and it can be properly secured) • Major issue – how to create and maintain access to information for society at large • This access needs to be limited to those who have a right to see and use it (to limit identity theft) • Also, adequate security measures must be in place on their business partners’ end Week 10 - June 4, 2024 54 What Should a Manager Do? • Create a culture of responsibility • Post policies • Implement governance processes for information control • Avoid decoupling responsibility • i.e., make Managers responsible for their decisions that lead to privacy problems Week 10 - June 4, 2024 55 Other Ethical Concerns……The Planet Green Computing • The digital economy uses 10% of the world’s energy • In 2007, the 5 largest search companies used 2.4 gigawatts • Hoover Dam only generates 2.0 • Since then, it has reduced thanks to “green” efforts in data centers • Virtualization • Relocation for more natural cooling • Google in Finland which uses seawater from the Bay of Finland as part of its advanced cooling system Week 10 - June 4, 2024 56 Other Ethical Concerns Triple Bottom Line Impact • TBL (3BL) – People, Planet, Profit • People: Being socially responsible • Planet: Saving the environment • Profit: Saving/making money Week 10 - June 4, 2024 57 https://youtu.b e/Kw-_Ew5bVxs Congratulations!! Graduating Seniors Homework Assignment Professor / Course Evaluation – use template in Blackboard Purpose: • Improving my performance as a professor moving forward • Improving future student’s experience taking this course Due: • by June 11, 2024 - Week #10 folder Note: This is a required submission although not graded and will not impact your grade UNLESS, It is not completed and then it will negatively impact your grade Week 10 - June 4, 2024 59 Reminder Homework Due by: June 11, 2024 by noon in Blackboard Week #10 Final Exam Next Week – Regular Class day/time Tuesday June 11, 2024 @ 6:00pm Same Time; Same Place