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CHAPTER 11
THE ROLE OF TECHNOLOGY
INTRODUCTION
Technology is an unmistakable economic and social force in both business and the world
where we live. Global and local communications, business exchanges, the science that
affects the quality of our lives, and the simple tasks that make up our daily lives are all
significantly influenced by technology. Whether we are at home, in school, or in the
workplace, emerging technological innovations have dramatically changed how we live,
play, learn, work, and interact with others, raising important social and ethical questions
for business.
PREVIEW CASE
Using the Internet and Social Media to Rescue Flood Victims in Kashmere
Mobile phones and the cellular networks have spread rapidly across south Asia, even into
remote rural areas, connecting people as never before. In the past two or three decades,
the rate of technology change has been extraordinary, encompassing the wireless
revolution, the ability to process enormous amounts of data, and smart manufacturing.
Today, processing power and data storage are virtually free in the cloud, and a simple
hand-held iPhone has the same computing power as the room-sized IBM mainframe
computer of the 1970s. Utilizing new materials–such as metal alloys, graphene (instead
of silicon) transistors, and meta-metals that possess properties not found in nature–will
enable engineers to design and build from the molecular level, radically improving
quality and reducing waste. The wireless revolution enables billions of people to
communicate, socialize and trade in real time. How we embrace and use technology is
also changing dramatically.
CHAPTER OUTLINE
I. TECHNOLOGY DEFINED
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A. Phases of Technology in Society
B. Fueling Technological Growth
II. THE ROLE OF TECHNOLOGY IN SOCIETY
A. The Internet
The Emergence of the Internet
Unwanted Internet Threats
Teaching Tip: The Constant Re-defining of Technology
The chapter quotes Erik Brynjolfsson, Andrew McAfee and Michael
Spence stating: “Technology has sped globalization forward,
dramatically lowering communication and transaction costs and
moving the world much closer to a single, large global market for
labor, capital, and other inputs to production. Even though labor is not
fully mobile, the other factors increasingly are. As a result, the various
components of global supply chains can move to labor’s location with
little friction or cost.” Students may be acutely aware of these changes
in their lives, as students, as citizens, as emerging professionals, and
should be challenged to share their understanding of the quick
development of technology.
Teaching Tip: Technology as a Powerful Force
Compare access to technology for a first-grader, high school student,
and business manager. How is technology influencing educational and
business opportunities?
Teaching Tip: Unwanted Internet threats
Students may want to discuss whether these unwanted threats – spam,
phishing, etc. – are simply an acceptable intrusions and tolerable given
the benefits of technology, or if something should be done to minimize
or eliminate these threats, and if so, what could be done?
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A. Mobile Telephones
B. Social Networking
IV. THE IMPACT OF SCIENTIFIC BREAKTHROUGHS
A. Genetically Engineered Foods
Teaching Tip: Digital Divide
This topic may provide for an in-class debate or discussions over (a)
does the digital divide exist, (b) if so, where, and (c) is it diminishing
or growing, and (d) are various program seeking to address the divide
effective and, if so, why?
Although a bit dated, an excellent introductory video discussing the
digital divide in the United States can be found at:
http://www.bing.com/videos/search?q=digital+divide+videos&FORM
=VIRE3#view=detail&mid=142988C3DFD5EF9D963A142988C3DF
D5EF9D963A.
Teaching Tip: Scientific Breakthroughs
In a world of genetically modified food, human genome,
biotechnology, and stem-cell research, are we truly better because of
these scientific breakthroughs or not? Students could investigate and
locate evidence that supports the benefits of these scientific
breakthroughs, as well as uncover the threats or limitations that this
progress has created.
Teaching Tip: Genetically Modified Foods
The debate or discussion over GM-foods has already entered public
debate. Students could research the latest information on whether GM-
foods are safe or harmful. If harmful, do these harms outweigh the
important and economically beneficial agricultural advances due to
genetically engineered foods? What role has government played in this
public debate? Would you eat GM food, have you already consumed
GM food without knowing it? Does the recent trend toward more
labeling of GM food satisfy the public’s need for information?
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B. Sequencing of the Human Genome
C. Biotechnology and Stem-Cell Research
V. THE ROLE OF TECHNOLOGY IN BUSINESS
A. E-Business
B. Transforming Prevailing Business Models
C. The Use of Robotics at Work
VI. ETHICAL CHALLENGES INVOLVING TECHNOLOGY
A. The Loss of Privacy
B. Free Speech Issues
Teaching Tip: E-Business
All information describing the world of e-business are dated as soon as
they are published. Students could update estimates regarding the
predicted growing of e-business in the global marketplace. Did e-
business grow faster, slower, or about what was predicted? In what
industries or regions of the world are e-business growing or slowing
down?
Teaching Tip: Omnichannel
Bloomburg provides a good introduction to omnichannel in the retail
industry, see:
http://www.bing.com/videos/search?q=omnichannel+videos&go=Sub
mit+Query&qs=bs&form=QBVR#view=detail&mid=E6843603F61EB
E07B99EE6843603F61EBE07B99E.
Teaching Tip: Robotics at Work
For a short but informative animated video on the use of robots in an
Amazon.com warehouse see:
http://www.bing.com/videos/search?q=robotics+ar+work+videos&go=
Submit+Query&qs=bs&form=QBVR#view=detail&mid=9FFC274B8
E1348B8D4D39FFC274B8E1348B8D4D3.
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GETTING STARTED
KEY LEARNING OBJECTIVES
LO 11-1: Defining technology and its characteristics.
LO 11-2: Recognizing how technology has evolved throughout history and what
fuels technological innovation today.
Six phases of technology represent the progress of civilization throughout history
LO 11-3: Analyzing and assessing how technology impacts organizations and
individuals in society.
LO 11-4: Recognizing the benefits, as well as the ethical and social challenges, that
arise from technological breakthroughs in science and medicine.
LO 11-5: Examining how technological innovations change the way organizations
operate.
LO 11-6: Evaluating the emerging ethical challenges raised by the increased
presence of technology in our lives.
Teaching Tip: Elonis v the United States
The Facebook Privacy Case
For a good video explaining this court case see:
http://www.bing.com/videos/search?q=Elonis+v+US+videos&go=Sub
mit+Query&qs=bs&form=QBVR#view=detail&mid=943EACC53268
49EAB615943EACC5326849EAB615.
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serious concerns.
KEY TERMS
biotechnology
digital divide
e-business
genetically modified foods
INTERNET RESOURCES
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DISCUSSION CASE
HOW SAFE IS YOUR PERSONAL INFORMATION?
1. What are the benefits and risks to consumers of using paperless, electronic
systems to pay for products and services both online and in stores? Do the
benefits to consumers justify the risks, or not?
the benefits justify the risks. Even after the occurrence of the security breaches
profiled in the case, consumers continued to use their credit cards and shop online.
2. Do you think technology will be able to stay ahead of sophisticated
cybercriminals, or not? Why do you think so?
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The EMV card, developed and used extensively in Europe, Canada and Latin
America, has shown significant promise in combatting credit card cyberattacks,
new technology to protect consumers’ privacy.
3. Who do you think should be responsible for the costs of switching to the more
secure EMV card? Retailers? Banks? Consumers? How would different
stakeholders answer this question?
development and usage of safer, fraud-resistant credit cards.
Banks seem to be the most vulnerable to economic losses from credit card fraud,
although efforts to shift the economic burden to the retailers are noted above. Banks
producing safer, fraud-resistant cards.
Consumers’ responsibility should not be lost in this discussion. As with many issues
Teaching Tip: Credit Card Technology
A good introduction to the changes in credit card technology,
explaining the resistance in the United States against the chip card due
to costs can be seen at:
http://www.bing.com/videos/search?q=technology+security+videos&q
pvt=technology+security+videos&FORM=VDRE#view=detail&mid=5
404219473FD2511EAC55404219473FD2511EAC5.
Teaching Tip: Responsibility for Consumers’ Personal Information
This may be a good question for an in-class debate, where students
form into groups representing the various stakeholders.
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information, it may be reasonable for consumers to bear some of the financial burden
for this protection.
be seen.
4. Why did it take so long for the American companies to better protect their
customers’ personal information by turning to the more secure technology that
existed and was used in Europe, Canada and Latin America for many years?
Should the government have stepped in and mandated this technology?
First, many businesses likely believed that a cyberattack could not happen to them.
Third, the cost of establishing a strong defense against a cyberattack requires a
significant initial outlay by businesses. The change to the more protective EMV card
was prohibitive to many firms, especially small and medium-sized businesses. The
There may be other reasons evident to students as to why businesses were hesitant to
combat cyberattacks.
Whether the U.S. government should be more involved and acted sooner are
5. If you were managing a retail store or chain, what steps would you take to
protect your customers from others accessing their confidential information? If
customer information theft had occurred, what steps would you take to win back
your customers’ trust and loyalty?
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At the core of this question is the business-consumer relationship, discussed in more
detail in Chapter 14. Businesses have a responsibility to protect their consumers’
Many businesses inform their consumer as to how they will treat the consumers’
protected from cyberattacks. Consumers would hope that businesses are using the
information stored by businesses.
Finally is the very important question: What does a business do after a cyberattack?
Home Depot, Target and other businesses mentioned in the discussion case were
faced with this challenge. Target seemed to understand that to win back their
personal information.