Executive Dilemmas
in the Information Age
Ch. 5 Case Study – Pg 46
Matt Bushmann
Introduction
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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
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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
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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
 Make sure important data is not leaked to competitors
 Beware of hackers
 Ethics
 Stakeholders expect ethical practices
 Legal issues
 Actions affect culture
 “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. 9 March 2009.
http://www.tradesecretsblog.info/2009/01/chip_compan
ysuingexceo.html
 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