The Legal Issues and Potential Privacy Implications of This IT System - Assignment Example

Professional Issues The legal issues and potential privacy implications of this IT system This IT system will be able to maintain the data about the loyal customers of the company. In addition the database will also be able to reflect the details of purchases made by the customer from time to time, so that the company is able to make use of the info to strengthen its marketing activities. Some companies also try to be nice to their customers by sending across personalised messages on birthdays, anniversaries etc. This helps in creating a personal rapport with customers. But, it is worth emphasising here that the company is bound to protect the privacy of a loyal customer and if some pilferage takes place, this might put the customer in a difficult situation while proving embarrassing for the company. Legal issues can basically arise when somebody in the company tries to take undue advantage of the gullible customer had passes off the data to third parties or the retail company itself tries to sell off products or services without taking the customer into confidence. Legal issues can also arise, if the company tries to take undue advantage of the education level or social status of the customer. For example, not every customer is aware about the legal help that can be sought if a company tries to hoodwink. In such cases, the personal information might be used by the company officials to sift through the gullibility of the customer. Similarly, the company will have to put in place cyber security mechanism for protecting the data from being siphoned off by hackers. This is of crucial importance, because in such cases, the company is liable to be prosecuted, even if the information is not used by the data thieves for reaching out to the people on the database. Such incidents can leave the company with wide-ranging legal complications from many fronts. In this case the company is opening its stores in other countries as well and there is no uniformity as far as the data protection related legal aspects are concerned. Many governments are still developing legislation for supporting and strengthening the privacy protection measures in businesses. Therefore the company will have to be in regular touch with such developments as well in order to have a compatibility with the prevailing legal system. Gellman (2009) states that the legal system badly trails technology and the application of old laws to newer technology can at times be unpredictable, therefore the company handling the sensitive data of its loyal customers will have accord top priority to the concern of citizens even if there are grey areas in the legal system. In this competitive world, charges are also levelled by companies against each other for sabotaging the data of its rival. Copyright infringement is another key aspect which has the potential of inviting legal trouble. It is worthwhile here to mention that privacy concerns arise out of the growing importance of information in the decision making processes. At times in order to take on the competition, companies resort to undue exploitation of the personal data. The retail sector in general is one of the most competitive ones and requires companies to be innovative in their approach. Under these conditions there’s always a possibility that the company might indulge in something unethical. For example, if the company starts profiling the customers based on their purchasing power and comes to the conclusion that tracking a particular customer for some high end product might prove beneficial, the marketing team will start following the person on phone or email, which in turn implies undue interference in the privacy of the customer. Making its present felt online and offering the products and services online is another key feature of the retail sector. In such a scenario the database will be required to be safeguarded using reliable encryption techniques because the database will be exposed to the World Wide Web. If the confidential data goes into wrong hands anywhere around the world, it will imply loss for the company as well as for the customer/s in monetarily as well as loss of goodwill. At times the business practices could be undertaken within the law, but it may not be considered ethical. The company will have to take care of such situations as well. 2. The Design and Integrity of the System’s Database Data is the backbone of any database or application development. Therefore accuracy of the data and referential integrity of the database system are of crucial importance for gaining the confidence of all stakeholders including the customers. Database in general has three major components; a central database containing most of the company’s data, number of functional databases like salary, accounting etc. used for routine and limited applications; and some dedicated databases used of crucial applications like billing database. This segregation is necessary to reduce data redundancy and to exert better control on the management system. Efforts are also made by the IT management team to ensure the quality and availability of the database system as the basic goal of maintaining such a system is maintaining the security, integrity and availability of the data. Integrity of the system implies that the users are performing the intended operations and maintaining consistency in the database while ensuring that no unauthorised modification or destruction of data takes place. A sloppy database might result in poor customer services, poor decision making, difficulties in gaining new businesses, inability in understanding the market dynamics, inability in delivering the intended value to all the stakeholders (Carr, 2003). This underscores the importance of a friendly design, a dependable backup with truthful reflection of the data. The database administration must be efficient enough to ensure accurate and consistent information flow is available to users and different applications whenever required and in the requisite format. In order that the integrity of the data is maintained, the database administrator (or the team entrusted with the responsibility) will have to make sure that users are properly educated about the sensitive nature of the data and the procedures to be followed in order to maintain the database in the best possible manner. Hansen and Hansen (2000) state that the education of users basically includes; i. How database technology can be helpful at the different levels of management ii. Development of realistic expectations for the database system iii. Procedures to be followed in order to resolve any information problems Though all efforts are made by any IT management company to ensure the proper functioning of the system, yet there are instances when the database system gets crashed due to a number of unavoidable circumstances like power supply fluctuations, virus attacks, incompatible procedures etc. Therefore proper data recovery procedures must also be in place to take care of such failures. Another aspect of crucial importance in designing a reliable database system is that the policies and procedures are in line with the stated mission and objectives of the retail company. The company will be able to gain the confidence of its loyal customers only if they find the IT implementation in line with their shopping habits from the retail store. The IT implementation must therefore complement and supplement the existing market base, while exploring newer segments. 3. Where and how could you seek professional help and guidance to assist you in your role Since IT implementation is being done to facilitate the existing business marketing efforts, therefore we need to take professional help not only from the technology experts, but from the different departments of the company, so that there are no glitches during the transition period. Such help would be sought from; i. The top management: This is very crucial in order to understand the basic philosophy behind the IT implementation decision and the expectations of the company from the team of IT experts. Sincere efforts are to be made by the team to realise the vision of the company and work towards strengthening the brand equity of the company. ii. The marketing team: To find out the existing strategies being adopted by the marketing people and the kind of responses from existing and prospecting customers. The IT system would have to follow the lead and approach the customers accordingly. In fact the marketing team happens to be the closest to the customer and helps in gaining feedback and their perception about the company and its products, their preferences and to what extent the competing companies are influencing their decisions. The online platform being prepared for the retailing company must be able to generate interest amongst the prospective clients. Prospecting is the result of marketing. Its the delivery of targeted qualified traffic to the company’s virtual storefront. iii. The HR team: The HR department is another important element in IT implementation. The existing workforce will be involved in implementing the new database in different forms. Therefore, they need to be trained in understanding the newer system. In addition the database is supposed to maintain the records of everyone in the company in electronic form. In these tasks the HR department will prove to be helpful. iv. Marketing Communication or PR department: This department will be of crucial importance in providing professional help at the times of devising the IT set up as well as at the time of implementation. Preparing appropriate messages for customers and employees of the company towards popularising the newer set up, making use of the feedback mechanism, undertaking PR exercise in the local media etc. will be undertaken by this department only. 4. Maintenance of the overall IT system The IT system, once implemented, will be able to deliver the desire results if the company is able to keep it fully functional all the time and the IT implementation team is able to include periodic updates. This requires a formal maintenance team for the IT system. The maintenance work can be carried out in a better manner with the active support and cooperation of people from different departments. Close coordination amongst different departments, followed by brainstorming session/s on different issues in order to come out with an acceptable solution. In addition we need to have; Strategic tie-up with some application software companies, which can make customised software solutions for the company. This tie-up must include the training of our staff for effective handling of the system Proper backup mechanism for the database, so that periodically the database is updated. Licensed copies of anti-virus software Proper authorisation and authentication mechanism Periodic training and development of the IT system maintenance experts, in order to keep them posted with latest developments References: 1. Carr, N (2003). IT doesnt matter, Harvard Business Review, May, 2003. 2. Gellman, Robert (2009). Privacy in the Clouds: Risks to Privacy and Confidentiality from Cloud Computing. World Privacy Forum. Available online at http://www.worldprivacyforum.org/pdf/WPF_Cloud_Privacy_Report.pdf (Oct 30, 2009) Read More