Ethical And Professional Challenges In Information Technology Governance: The Case Of Telstra And IBM

Digital Transformation and Business Analytics

Discuss about the Occupational Deviance and Neutralization Techniques.

Businesses have transformed into information technology applications to keep up with the digital era revolution. This is evident to Telstra a conservative engineering business that transformed its operations to digital. This transformation was to give Telstra a competitive advantage in the market. The advantage would be derived from analyzing data using different analytical tools and systems for decision making. Some of these decisions would be in product development and marketing strategies.

These transformations lead to questionable ethical and professional challenges. Issues were raised by customers and stakeholders regarding information technology governance and information technology standards (Jordan and Meara, 2010). Some of the issues concerned were the disruptions that digital transformation caused to the business. Although Telstra had very positive results in its decision making as outlined in this report, they also faced very many challenges some being ethical in using business analytical tools.

Data analysis greatly helps in decision making and leveraging customer trends, behaviors and preferences. For instance, Telstra identified which demographic populations’ trends for certain machines (Irvine, et. al., 2012). Data analysis also helped in identifying how best to capitalize on customers loyalty and resolve customers issues promptly.

Telstra just like any other modern progressive business transitioned its operations from conservative to digital. Realized strict measures had to be put in place in data management. This mainly originated with issues of confidentiality and customers privacy. Telstra had to employ IT Governance and Standards to safeguard its business.

A case in point a customer complained that some of their confidential information was leaked to the public and media without their consent. One of the customers’ was Hopkins Hospital which complained that health engineering machines procured through the Telstra App were made public (Higgins, 2011). Although Telstra disputed these allegations, investigations revealed both ethical and professional issues that we are going to address in this report.

Telstra shifted the blame to IBM, who had developed and provided the data analysis tool that was used. Despite IBM having trained Telstra staff on the measures to be put in place to ensure the privacy of clients’ data, Telstra failed.

The government department for ICT was also enjoined in this dispute. Following the government laws on data privacy, both Telstra and IBM were found guilty of not putting in place measures to ensure the privacy of their clients (Goldman, 2010). This was a class action case but for the sake of this report, we will focus on Telstra, IBM, Hopkins Hospital, The Government, and Patients.

Challenges faced by Telstra and IBM

Hopkins Hospital one of the customers to Telstra, an engineering company has discovered that there was a breach in its private data. This occurred when they used the Telstra App to procure hospital machines and equipment for their operations (Parsons, 2010). Although Telstra didn’t intentionally leak Hopkins Hospital confidential data, the business analytics tools they used in data analysis were not very safe.

Telstra intentions were good at using its customer’s data; the only professional and ethical challenges were in data security. Hopkins Hospital has sued Telstra for a breach of data privacy. The data analysis tool used by Telstra was provided by IBM. IBM was sued by both Hopkins Hospital and Telstra for providing a business intelligence application that wasn’t data proof.

Most jurisdictions have very strict privacy and confidentiality rules regarding data. This relates to organizations that deal with sensitive customers’ data like in the health sector, security, financial and other industries (Tavani, 2013). The laws governing IT data rules are very clear. In this particular case, the facts proved that Telstra breached in how they handled Hopkins Hospital data.

The penalties are also clearly stipulated if an organization exposes clients’ data. The responsibility of protecting this data touches on the professionalism of the employees. The facts are also very clear for organizations not to use clients’ data for unethical ventures. Telstra used Hopkins data to promote political and religious propaganda without the clients’ consent. This was evident in maternal health in issues relating to abortion which had political and religious perspectives.

Telstra shifted the blame to IBM which provided the data analysis tool used in business intelligence assessment. Although the blame was on IBM, they claimed that Telstra failed in ensuring professionalism and proper IT governance measures were in place.

• The issues raised by Hopkins Hospital in regard to data breach by Telstra were mostly touching to the privacy of their patients. In a particular case while doing data analysis using business analytics tools, cancer and patients who had done abortion, their information was leaked.
• Profiling of affected customers greatly affected their careers and social prospects.
• The use of data generated from customers emails, social media accounts, credit cards and e-commerce platforms had both positive and negative impacts. This was positive because Telstra used this information to gain competitive advantage. This was achieved by improving its products and services.
• The negative side of this is that most of this information was used to gain financial, political and religious gains. In the class case this was viewed as being immoral.
• Another important issue was for Telstra not adhering to set rules and regulations in this case breaking the law.
• Despite Telstra having put measures, the third party data analysis companies were not very professional in execution of their duties.
• Third party ICT Company IBM was also involved in providing the data analysis software to Telstra. This enabled in data management and analysis. IBM was also accused of not developing proper frameworks to prevent data breaches and leakages.

The following were affected by the breach of clients’ data privacy in business analysis.

• Hopkins Hospital: Confidential patient’s information was used and exposed to the public. Hopkins Hospital was sued by the patients for breaking the law in exposing private information (McMinn, et. al., 2018). This also badly affected the hospital business due to bad public image. In response Hopkins Hospital sued both Telstra and IBM for breach of data privacy contract in their business intelligence tools.
• Telstra: Telstra the engineering company that was contracted by Hopkins Hospitals to provide machines was affected by being sued by Hopkins Hospital. They faced legal, professional and ethical charges for not putting in place strident measure to ensure data privacy. Their business also suffered because the public viewed it as being unethical for using customer’s data for selfish gains.
• IBM: IBM was sued by both Telstra and Hopkins Hospitals for providing a data analysis tool that wasn’t secure. IBM responded by accusing Telstra for not putting in place frameworks and standards to ensure safety of clients data.
• Government department of ICT: Lobby groups, the public and legislature put pressure on the government through its department of ICT to be stricter. The government was asked to ensure that private corporations dealing with people’s private information should exercise discretion of the highest order. The government responded by saying it had put in place laws and regulations with very hefty penalties.
• Patients: The patients of Hopkins Hospital who had their data exposed were not only affected by traumatized. This was both illegal and unethical. As much as they were to be compensated, no amount of money would pay for their dignity.

• Telstra and IBM actions had ethical challenges. By Telstra using customers’ information for personal gain only helped their business. In virtue of ethics theory Telstra intentions could have been viewed as having empowering intentions to the recipients, Hopkins Hospital.
• The ultimate responsibility for the patients’ data was with Hopkins Hospital. The question here is if Hopkins Hospital intentions were for good intentions? The answer is yes because they wanted to improve their patients’ health. Hence engaging Telstra.
• IBM being a reputable business intelligence company, its actions can only be seen to be good to the business and not the recipients. According to virtue ethics theory IBM main focus is in providing intelligent business analytics to organizations with the aim of creating competitive advantage.
• The line between virtue ethics and business development is usually blurred in this era of digital transformation. Organizations will do well to their businesses at the expense of customers and clients. In this particular case of Virtue Ethics, both Telstra and IBM were unethical.

• This theory takes into account the consequences or results of a particular action. In this case the actions by Telstra and IBM enhance client lives. The results of their actions are evident to have caused huge damage to Hopkins Hospital and its patients.
• The use of patients’ data would have caused patients to lose their privacy and dignity. This is because someone’s health is very confidential and information should only be shared under authorization to close family members and friends.
• These actions would also strain patient’s social wellbeing in the community. Some organizations stigmatize and discriminate individuals with certain conditions (Stahl, et. al., 2014). This may ultimately lead to loss of employment or belonging to an individual.
• According to consequential theory of ethics, both IBM and Telstra were guilty of unethical practices. This goes to show how business offering ICT business intelligence services should put in place measures to safeguard client’s information.

• In this particular case ethics is viewed if it only follows laid down rules and regulations. The rules can be laws from the government or policies and regulations governing a particular industry or sector.
• The law here is very clear on what Hopkins Hospitals did with the patient’s confidential information. On the other side both IBM and Telstra breached on the government laws on how private data should be handled when given to a second and third party respectively.
• A case in point before a public analysis is done on someone information it’s mandatory to get a signed agreement or consent of which in this case it wasn’t there. Also the law is very clear on the nature of care confidential information should be handled with third parties.
• According to Data Security Members Association (DSMA), Telstra and IBM didn’t put professional and systems frameworks to ensure safety of client’s data. Although the association is meant to protect Telstra and IBM it’s only obliged to do so if they followed the law.

In conclusion about the ethical issues, Hopkins Hospital was ethical, unlike Telstra and IBM who need to employ more governance and stringent measures in protecting client’s sensitive and confidential information.

Hopkins Hospital should first apologize to its patients and the public for breach of confidence. In the apology, the hospital should explain what happened and futures measures it has put in place to ensure a repeat of data hitch breach doesn’t happen (Grodzinsky, 2010). Hopkins hospital should also review its business engagement with Telstra and be very strict on the applications that third-party companies provide like IBM. Telstra and IBM should be charged in the court of law and made to pay penalties. The government should put in place very strict rules and monitor business intelligence tools provided by ICT companies.

• IBM and Telstra are expected to take full responsibility for the damages caused to Hopkins Hospital and their patients. Denying wouldn’t be advisable as the evidence suggests that there was data leakage.
• Hopkins Hospital should review ICT companies that have access to their data.
• The government should withdraw IBM and Telstra licenses or charge them with heavy penalties so as to stop other ICT organizations from the same vice.
• Patients should be given a right to know how their private and confidential information is to be used and asked for permission prior.

The Hopkins Hospital Case

Out of the options listed above the first option is the best. IBM and Telstra should accept liability and take full responsibility. Business intelligence I very important in all aspects of the economy and the government withdrawing their licenses wouldn’t be advisable (Kasoma, 2016). Also Hopkins Hospital should accept the apology and assure its patients that more stringent measures have been put in place.

1. Analysis of Ethical consequences of Digital Transformation

Information Technology Governance refers to set rules and guidelines by businesses and companies in the management of their IT system and process. These rules create a system that ensures effective and efficient operation procedures aligning IT to the business vision and purpose (Gauthier, 2001). IT Governance is usually implemented with the IT department and professional while ensuring legal, professional and ethical considerations are in place.

Published in 2005, Australian Standard for Corporate Governance of Information and Communications Technology act stipulates how business should operate in relation to data privacy (Banks, 2014). This can also be linked to the following breaches that Telstra had in relation to Hopkins Hospital and IBM.

Responsibility: Professional competency and ethics are required for all employees in an organization who are handling IT data. Telstra failed to ensure personal responsibility by not keenly scrutinizing IBM data analytics tools for any loopholes (Irvine, et. al., 2012). Personal responsibility demands diligent analysis of all ICT applications and software.

Strategy: Businesses should have a clear IT governance strategy for its operations. Telstra failed to follow through in this aspect. If they had a strategy, the challenges posed by IBM data analytical tool could not have emerged.

Acquisition: Organizations are expected to invest and empower its ICT operations. IT is evolving at a very fast pace and business are expected to be on par with changes. It’s evident that Telstra wasn’t prepared for data breach challenges mainly due to not having invested adequately in its tools and employees.

Performance: Telstra was expected to have transformed its operations to be in sync with its clients and suppliers needs and tools (Nordkvelle and Olson, 2015). If Telstra performance was in line with Hopkins Hospital and IBM, these challenges wouldn’t have come up.

Conformance: Policies and standard operation procedures should be clearly explained and internalized by all employees in the ICT department. Unlike in Telstra, it would have been easy to raise red flags if conformance was in place.

When a business transforms from being conservative to digital, there are many technologies both in software and hardware that will be used. In this particular case Telstra used the following technologies.

The Role of IT Governance

Hardware: This refers to computers, laptops, phones and servers that are used to set up an IT system in an organization (Van den Hoven, 2017). Telstra transformation required all this equipment and more including internet connection.

Software: This refers to the applications that are used to run the hardware. When Telstra digitalized its operations, it required software called ERP-Enterprise Resource Management. This is used to manage all the operations in an organization.

Business Intelligence Tools: This refers to the data analysis applications that were provided by IBM (Campbell, E., 2010). They include software like SPSS; this is used in analyzing customer’s data and trends.

Telstra App: This is the application that Telstra used in communicating with customers including Hopkins Hospital. Customers’ queries and complains were addressed via this application.

Increased Productivity: Digital transformation increases productivity of a given business. This is evident in the growth experienced by Telstra. Their customers increased to 1.5 million who were served on the Telstra App. This also helps in effective and efficient engagement with customers’ real time. Digitization also has a wide reach in advertisement unlike the traditional conservative media.

Cost Efficient: Digitization ensures business is run profitably as most of the operations are automated hence reducing manpower.

Ease of Accessibility: Information and data is centralized in one place hence, saves time and resources in storing and retrieving information. This saves time and productivity is increased.

Enhanced Security: Chances of information stored digitally being stolen is very rare because of IT security measures (West and Heath, 2011). This involves passwords and bio identifications like fingerprints lazier. Unlike tradition safes and boxes, documents are also protected from weather-related threats like water or heat.

Enhanced information Preservation: Information stored digitally can last for very many years with being distorted or defaced due to weather or aging (Bowern, et. al., 2016). This is contrary to documents stored physically that may be affected with weather conditions or natural calamities.

Data protection is very important to any business using digital communication and storage. There are different features of data protection but the most effective one is the use of passwords (West and Heath 2011). This can be verified at different levels by different authorized stakeholders. In more advanced cases biosecurity identifies like fingerprints and contact lenses can be used.

Digital transformation is the next level for business growth and development. Transforming business operations to digital platforms not only enhances the business but also reduces operations costs. Using applications like Telstra App businesses are able to make informed decisions based on facts. This decisions help in marketing, advertising and product development. The ultimate result will be both in employee’s satisfaction, customer growth in loyalty and growth in profits.

Technologies Involved in Telstra’s Transformation

Conclusion

Technological advancement has disrupted the way business used to be done in the old days. This is evident by the big number of conservative businesses transforming to digital. To sum it up, this report assignment has analyzed the positive and negative issues involved in ICT transformation of organizations. Using Telstra as our case study we have seen how its digital transformation has helped in its growth. This growth comes along with advantages and disadvantages. In scaling up its operations from the big data it is generating from the Telstra App, they source for business analytics tool from IBM-LSPSS. This IBM software leaks some of its client’s, Hopkins Hospital confidential information. Hopkins hospital sues Telstra and IBM for breach of data privacy contract. We have also analyzed be lack of data management framework and proper professional ethics that lead to data leakage.

In this report, it is explained how all the stakeholders involved were affected and the measures to be taken. It has also espoused how professionalism is very important in ensuring proper business ethics are followed. Although challenges may occur like in the Telstra case, opportunities are very many. For instance, there is a lot of data that is generated by companies that have digitized their operations. If this data is analyzed properly it can be used to make informed business decisions to scale up the organization.  This report assignment has concluded that the future prosperity of any business is based on how best they execute their ICT strategy.

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