MOD003328 - Information Privacy in Business Information Systems

This report provides an in-depth analysis of information privacy within business information systems, using Future Plc as a case study. It identifies and evaluates the characteristics and significance of information privacy globally, exploring organizational opportunities and challenges posed by it. The report also applies the virtual value chain to analyze how value is created and delivered through information privacy within the organization. Key aspects covered include data collection requirements, data protection authorities, information breach notifications, and associated penalties. Furthermore, the report discusses opportunities such as increased security, innovation, user experience enhancement, brand image improvement, and customer loyalty. Challenges like privacy breaches, information mishandling, Internet of Things vulnerabilities, big data analysis complexities, cloud computing risks, and fast-evolving technologies are also addressed.

Business Information
System

Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Identification and evaluation of characteristics and significance of information privacy
globally........................................................................................................................................1
TASK 2............................................................................................................................................3
Organisational opportunities and challenges posed by information privacy...............................3
TASK 3 ...........................................................................................................................................5
Application of virtual value chain for analysing how value is created and delivered in
organisation through information privacy...................................................................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
The information utilised by enterprises to manage their operations efficiently through
computer systems and technologies are known as business information systems. Elements like
hardware, data, software and people are some of the components of business information. Its role
is to simplify the procedure of decision making and eases the process of providing the required
data, therefore it aids in taking efficient decisions quickly (Beynon-Davies, 2019). It process the
information from firm's inputs to yield data which can be useful in managing company's
operations. For this report the selected company is Future Plc which is a media company
established in 1985 and publishes various magazines in areas like music, games, films,
technology etc.
This report covers the characteristics and importance of information privacy globally.
Organisational opportunities and issues faced by media sector by information privacy has been
analysed. It highlights the application of value chain to evaluate how value is created and
delivered in an organisation.
TASK 1
Identification and evaluation of characteristics and significance of information privacy globally
In today's world, the privacy of information is an essential area of focus for companies as
data can be captured, stocked and shared easily. Privacy is considered as a right of individuals
and companies. Information privacy is broader term of privacy which is vital as it is concerned
with an individual's ability to decide when, how and for what purpose their private data is being
used by others. It is crucial to ensure data privacy and protection. Advance technologies and their
cost of implementation safeguards as well as provides effective reviewing of data access or data
threat. It ensures accurate data management throughout the life of data and keep it away from
any unauthorised and illegal breach of information privacy (Nizam, 2018). Various
characteristics of information privacy for Future Plc are as described:
Type of collection requirements- The type of data collected by companies is important to
understand the extent to which it needs privacy. Globally run and operated companies have
managed to get more data than local companies. It is important for those companies to collect
and manage those data effectively for further use. Organisations must not collect extra
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information of its users that might not be helpful for them to avoid cluster of unwanted data. In
this way, they can ensure only required data is collected and has been used at right places.
Data protection authority- Many advances has been made in recent times in information
privacy practises and measures. Companies adopts several methods to collect consumers' data
from various sites and by tracking as well as locating their apps history. Companies regularly
check their data protection processes to make sure accurate collection, sharing and usage of
sensitive information (Liang and Liu, 2018). Global authorities also develop various legislations
to protect data of consumers on global level.
Information breach notifications- Privacy breach notifications allows companies to
know when there data is being used unethically or illegally. It notify firms when other servers
tried unauthorised access of data and breach of encrypted walls. Organisations can utilise this
feature to keep updated the privacy of its information and to get early notification if others tried
to stole it.
Penalties- Monetary or criminal penalties have been assigned to those who illegally
breach information privacy of companies. Organisation puts their full efforts and invest much
amount to protect their data on global level but in any case if the information gets leak or firm's
system has been breached by other parties, then there are penalties fixed for those (Cocca and
et.al., 2018). Different nations follow different penalty practices which every company have to
follow and if they conduct their operations in more than one country then need to abide by all
rules.
Information privacy has a major significance globally as it gives an individual or
organisation control on how other servers can use their personal data. In media sector, the whole
industry runs on information provided by someone or other. This helps organisation to offer
better products or services to users according to their preferences, beliefs or culture. Breach of
information can result in exposing of secrets or strategies of a company in the highly competitive
market. With more people connected to internet, it creates more chances of theft of their
information. Media sector collects and restores its user data to provide them personalised
experience and algorithm to fulfil their expectations. Future Plc is a media agency for some of
most popular brands globally and also publish several magazines (Alič, 2018). The company
has creates its own privacy policy which commits to protect the privacy of personal data of its
users while attempts to offer best customer experience. Future Plc operated under UK General
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Data Protection Regulation and Data Protection Act to follow the legal duty of securing the data
it collects. The firm also sometimes buys business data from third party suppliers in legal way to
communicate companies business to potential users. Future Plc highlights on their websites that
they share some of its customers information about their IP address or browser with their partner
firms who utilise those information to develop online codes. Therefore, respecting and securing
privacy of users is very critical for companies who are involved in collecting sensitive data of
customers.
TASK 2
Organisational opportunities and challenges posed by information privacy
In media and entertainment sector, information privacy is a broader concept as it lays the
basis of firms operations. This industry pay close attention to its privacy and cybersecurity to
ensure ceaseless services. Users are also becoming more careful about sharing their personal
information and more regularities have put privacy requirements on companies which they need
to fulfil. Future Plc have learned that data protection and privacy can help them to achieve
competitive advantage. Collected data of users are transforming business operations and make
them more responsible to manage as well as secure the data collected (Vom Brocke and
Mendling,2018). Several opportunities provided by information privacy to Future Plc are
explained below:
Increased security- Efficient privacy of information allows companies to increase their
security of data collected from various sources. It maximise firm's responsibility to abide by all
the laws made by government to became a globally accepted firm. Information privacy provides
the opportunity to regularly check and review its data protection system so that more users put
their trust in firm's operations.
Creating innovation- Large media enterprises have enormous amount of consumer data
that they can use with other companies to make more profit. By making legal deals with other
firms, NGOs or government agencies, companies can increase their area of operations which can
lead to priceless discoveries boosting creativity and innovation (Berry and Berry, 2018). Future
Plc shares its collected data with its partner firms to expand its area of operations and to bring
more innovation. With the help of sharing data, the firm can provide its informations to firms in
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need of data. This provides Future Plc to maintain strong ties with other firms and develop new
sources of revenues too.
User experience- Effective information privacy provides firms to provides better user
experience by collecting databases and preferences of them. Users search or click on the things
they like and thus fill their information only on places they like. By collecting that information, it
provides Future Plc the opportunity to create personalised user algorithm for each of its users
which resulted in more consumer engagement (Li and et.al., 2021). It helps the firm to remove
any unwanted or unnecessary advertisements, blogs or articles which the user do not want to see.
Improved user experience is one of the crucial step in maximising company's growth.
Brand image- The major aspect for any company in media industry is to create and
maintain its brand image clear as well as free from any illegal charges. Robust information
privacy of user data allow firms to create its positive image in market which helps in gaining
business advantage. When users know that their data is secured and protected by certain
organisation, they put their confidence and firm as well as tell more people about it which further
improves brand goodwill (Engemann ed., 2018). Future Plc provides all its privacy policy details
on the firm's website so that its users know how and when their data is being used by company.
The firm also provides the information about the several laws it follow to make its users aware
about its authenticity.
Customer loyalty- When more people get to know about information privacy of a media
firm, they started to use that company's products or services more. This provides companies the
opportunity to maintain their customer loyalty by providing them clear and transparent
information about how their data will be used by company (Townsend and et.al., 2018). Future
Plc enjoys this opportunity by maintaining loyal customer base who values company's decisions.
This aids firm to maintain their existing customers and maximise their experience as well as to
attract new or potential audience.
With the opportunities, information privacy posed many challenges to on firms which are
explained underneath:
Breach of privacy- In online world, companies and individual are spied by numerous
trackers as they keep record of their search engines, history and online activities. Breach of
online data in media sector is a major threat posed on Future Plc in maintaining information
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privacy as it resulted in theft of its customer data. This activity leads to more advertisements on
users search engines as well as social sites and resulted in bad customer experience.
Mishandling of information- The information collected in media and entertainment
industry is only relevant or useful if it is handled properly. Collection of numerous quantity of
data sometimes creates the risk of over collection and mishandling of information (Augenstein,
Fleig and Maedche, 2018). This consumes more time and money of Future Plc as it is difficult to
segregate data on basis of its importance in future. Mishandling also may leads to grave
outcomes where user data could be used by fraudsters.
Internet of things challenge- It is used to demonstrate objects and devices which are
linked to internet so that it can send and receive information gained by various sensors. The
connected devices may hinders the privacy and security of consumer information. These internet
of things are very hypersensitive to cyberattacks and breach. Future Plc's users data is under
constant threat of attacks and vulnerable to hacking (Davis and Yen, eds., 2019). This cannot be
fully remove by the company as they are not able to control information passing through internet
of things.
Big data analysis challenges- Big data is collected information of users in large intensity
from various sources. This information can be presented to companies in different forms where
the role of firms is to minimise the large data into relevant information only. But the process of
big data creates challenges in privacy and is against general principles of reducing personal data.
The risk to Future Plc to incorrect interpretation of big data is always present and affect users
relationship with company's. It sometimes also leads to wrong conclusions and compromise
privacy of its users (Kita and et.al., 2018).
Cloud computing- It is the scattered environment which is based on interlinked virtual
computers with unstable communications between them that gives cloud services to its users.
The data in cloud services of media and entertainment firms is more sensitive and is not fully
protected by encryption. Future Plc have the potential risk of losing confidentiality and integrity
of users access as sometime user can modify data without permission (Chahal, Jyoti and Wirtz,
2019). It has the potential threat to minimise company's value in terms of legally.
Fast evolving technology- Companies adopts many technologies to collect and store its
user data which leads to proper research and implementation of effective techniques. If they
failed to adopt new measures to protect their information, it may result in theft or losing all of
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users information from company servers. Future Plc always strive to implement advance
technologies to provides strong protection of consumers information. But the risk of technology
getting obsolete any time poses great threat to information privacy.
TASK 3
Application of virtual value chain for analysing how value is created and delivered in
organisation through information privacy
Virtual value chain can be described as a business model which is used by organisations
in order to disseminate services or products which generates greater value for customers. It is
imperative for organisational managers that their products or services need to be flawed through
a proper distribution channel which helps in creating and delivering value to their customers. It
majorly comprises of five elements that help managers of Future Plc in generating new market
insights as well as building new relationships. It suggests that information or data act as a
dynamic element in order to formulate business in a competitive advantage. This generated
information is utilized to generate new innovative concepts which further helps an organisation
in generating value for their customers. This essentially comprises of gathering, organising,
selection, distribution and synthesis of data or information (Dumas and et.al., 2018). Through
information privacy, managers of Future Plc can collaborate with third parties in order for
outsourcing the data of customers. All the elements of virtual value chain through which
managers of Future Plc can create as well as deliver the value with the aid of information privacy
are discussed below:
Gathering of information- Data or information has gain huge acclaim through in today's
world. It is imperative for organisation to have a information gathering procedure which helps
them in assessing the customer's demands in an effective manner. This exercise would help
marketing team of Future Plc to formulate their promotional strategies for understanding the
demands and perceptions of customers in order to fulfil them efficiently.
Organisation of information- It is imperative for managers of Future Plc to organise and
assimilate their collected information in an effective manner which helps them to use it for
further reference. In relevance with information privacy it should be done with the convenience
and consent of their customers or users.
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Selection of information – This stage is concerned with selecting information which is to
be be used for formulating marketing strategies in order to attract potential customers. It is
imperative for managers of Future Plc to select the information for outsourcing in order to
provide their users valuable insights.
Distribution- This stage is related with distribution of information in an effective manner
which helps organisational managers to target their customers and plan effective marketing
strategies in an effective manner. This helps managers of Future Plc to assimilate the information
of their users to the third parties.
Synthesising of information- It is desirable for managers to synthesis and organize
information in such a way that it can be used for aligning varied marketing functions in an
effective manner. This practice would help managers of Future Plc to synthesise the available
information of their users in order to provide them valuable articles and magazines.
Managers of Future Plc follow a specified procedure for adding information process in a rational
as well as strategic manner. These stages of Rayport and Sviokla model in relevance with Future
Plc for adding information process for creating as well as delivering value are discussed below:
Visibility- Through the use of the concept of information privacy, business houses are
become capable to assess their physical operations in an effective manner. It suggests that virtual
value chain should align with physical operations of an establishment in cordial way for gaining
the effectiveness. With the help of automated techniques of collecting and organising
information, strategists of Future Plc can plan, implement and ascertain varied events with
greater precision.
Mirroring capability- It can be understood as a creation of digital twins which is adopted
by several organisations to move their business operations in aligning digital technology. This
practice has also adopted by managers of Future Plc to co-ordinate with digital technology and
physical marketplace.
New customer relationships- It is a crucial task for business houses to build strong
relations with customers in order to have access of their personal information and formulate
strategies to engage them with brand for a long period of time. This implies that managers of
Future Plc to have to assimilate the information in an efficient manner which helps them to have
a chance to create a desired value to their users.
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CONCLUSION
From the above presented report, It has been concluded that information privacy is
described as an aspect of information technology which essentially deals with organisation's
capability that is used to determine to outsource personal information of users with external third
parties. Privacy is very crucial for individuals for having providing power to them in order to
choose thoughts and feelings that can be shared with third parties. Maintaining privacy helps to
protect the information of individuals that they do not want to share in a public area. It is
imperative for organisational managers to follow the rules and regulations related with
maintaining privacy of information of their customers or users. As it helps to endure their loyalty
toward towards customers. Organisations face varied challenges in regards with maintaining the
information privacy such as insider threats, compliance with regulations and many more. Virtual
value chain is a framework which is used to determining the flow of information through
automated procedures in an organisation. Through these an organisation assists in creating and
delivering value to their users in a effective and rational manner. Through automated and digital
technology, organisations can have an easy access to information which they can use in
formulating as well as executing strategies.
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REFERENCES
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model transformation tool. In International Conference on Design Science Research in
Information Systems and Technology (pp. 205-217). Springer, Cham.
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Risk Management, 8(1), pp.1-10.
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Chahal, H., Jyoti, J. and Wirtz, J., 2019. Business analytics: Concept and applications. In
Understanding the role of Business Analytics (pp. 1-8). Springer, Singapore.
Cocca, P and et.al., 2018. Business software offer for industry 4.0: The SAP case. IFAC-
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Davis, W. S. and Yen, D. C. eds., 2019. The information system consultant's handbook: Systems
analysis and design. CRC press.
Dumas, M and et.al., 2018. Introduction to business process management. In Fundamentals of
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Nizam, I., 2018. The impact of accounting software on business performance. International
Journal of Information System and Engineering. 6(1). pp.1-25.
Townsend, M and et.al., 2018. Real-Time business data acquisition: How frequent is frequent
enough?. Information & Management. 55(4). pp.422-429.
Vom Brocke, J. and Mendling, J., 2018. Business process management cases. Digital Innovation
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