Information System Management Report: Facebook Data Privacy Dilemma

This report analyzes Facebook's data privacy challenges, focusing on the Cambridge Analytica scandal and the implementation of GDPR. It explores Facebook's responses to data privacy concerns, including adjustments to privacy settings, the introduction of the "Access Your Information" page, and the option for two-factor authentication. The report also discusses the European Union's GDPR and its implications for data protection, including rights for data subjects, data breach regulations, and data storage limitations. Furthermore, it examines Facebook's business model, revenue generation, and associated costs, along with the benefits and challenges of using Facebook for business. Finally, it addresses challenges encountered by social networking websites, such as maintaining customer engagement and analyzing ROI, and proposes solutions for these issues. The report uses academic sources to support its findings.

Running head: INFORMATION SYSTEM MANAGEMENT
INFORMATION SYSTEM MANAGEMENT
Name of the Student
Name of the University
Author Note:

1INFORMATION SYSTEM MANAGEMENT
Table of Contents
Answer to Question 1..........................................................................................................2
Answer to Question 2..........................................................................................................2
Answer to Question 3..........................................................................................................3
Answer to Question 4..........................................................................................................4
References............................................................................................................................6

2INFORMATION SYSTEM MANAGEMENT
Answer to Question 1
To overcome its data privacy from crisis, Facebook a large number of steps like
 Facebook has adjusted the setting of the privacy page. Privacy setting page provides the
feature along with images so that they can make the navigation step much easier
(Golbeck and Mauriello 2016). Users are provided with the option of two-factor
authentication where they will have control over what they share and manage people who
can see their post.
 Facebook has come up with a plan of launching a new page which is known as “Access
Your Information” where user can evaluate the shared information (Wachter, Mittelstadt
and Floridi 2017). Users are given freedom for deleting any required thing from their
timeline which they do not want to share.
Data policy of Facebook describes the processed information which is needed for
supporting Instagram, Messenger and other related products. These particular features are
offered by Facebook, where people can find the required tools and information in setting option.
Facebook has provided the user to easily access, rectify and erase the required data (De Hert and
Papakonstantinou 2016). Facebook stores data until and unless it is not important for providing
their services and Facebook Product. When an account is deleted, Facebook aims to delete a list
of things that are posted on it like photos and status update. User would be able to recover that
particular information later on.
Answer to Question 2
In the year 2012, Europe Commission has come up with a plan for data protection in
whole Europe Union so that they can make Europe perfect for digital age. After four years, there

3INFORMATION SYSTEM MANAGEMENT
was an agreement about what was reached and how it will be implemented. One of the major
aspects of reform is all about the introduction of general data protection regulation (GDPR). This
particular new EU framework is being applied to organization in a member state and has a
business implication (Laudon and Traver 2016). It is to done for business and individual in
Europe and beyond. Digital age of Europe can be used for building trust. By the help of common
standard which is needed for data protection. People can assure about where they are completely
under control of personal information.
The three requirements of GDPR of privacy and data protection are
 Rights for data subject
 Data breaches at personal level
 Limitation to data storage.
Answer to Question 3
Facebook is known to be most loved social networking website on global platform.
Instagram is also a Facebook company and this networking site has maintained to be on the top
of the list along with increasing revenue each year. Right from the starting, Facebook has
completely changed its business model (Wagner 2017). The organization is now highly
diversified and comes up with ambitious business strategy. For gaining much more knowledge
about the business model of Facebook, there is a need for analyzing the list of organization that
are owned by Facebook.
With an increase in user-base, Facebook is being able to generate much more revenue for
user. This particular revenue has come up with cost. Cost of revenue can be defined as the
infrastructure which Facebook has built on. This particular cost is inclusive delivery and

4INFORMATION SYSTEM MANAGEMENT
distribution of product, depreciation and other kinds of cost (Bakshy, Messing and Adamic
2015). The overall cost is inclusive of facility and server equipment, energy and bandwidth cost.
Also, it requires support and maintenance cost.
There are many business benefits of Facebook like
 Increase exposure to customer
 Collecting More leads
 Reducing the marketing expense
 Reaching to a target audience.
There are many challenges of Facebook like
 Time-suck and incredible distracting
 It becomes non-differentiated
 Keeps the people from getting out talking to the person.
Answer to Question 4
There are large number of challenges which is being encountered by social networking
websites like
Keeping in Touch with Customer: Solution media is all about posting and then waiting
for results. Social media is not about all being social (Golbeck and Mauriello 2016). It can be
defined as carrying out debate of new ideas and sharing feedback.
Solution: Every people require to have input so that it can enhance the overall culture of
the organization culture which requires the involvement of product and services.

5INFORMATION SYSTEM MANAGEMENT
Giving ROI and Social Media: Analyzing ROI is considered to be as one of the biggest
challenges which is being encountered by marketers in the year 2017. One of frequent topic on
web platform is all about changing followers into customer by making use of SMM (Wachter,
Mittelstadt and Floridi 2017). Online sale is considered to be a frequent topic on the web
platform.
Solution: There is need for keeping the performance report of the campaign of social
media with the KPI (De Hert and Papakonstantinou 2016). There is need for keeping a track of
social media goals followed by adjusting with the budget.

6INFORMATION SYSTEM MANAGEMENT
References
Bakshy, E., Messing, S. and Adamic, L.A., 2015. Exposure to ideologically diverse news and
opinion on Facebook. Science, 348(6239), pp.1130-1132.
De Hert, P. and Papakonstantinou, V., 2016. The new General Data Protection Regulation: Still a
sound system for the protection of individuals?. Computer Law & Security Review, 32(2),
pp.179-194.
Golbeck, J. and Mauriello, M., 2016. User perception of Facebook app data access: A
comparison of methods and privacy concerns. Future Internet, 8(2), p.9.
Laudon, K.C. and Traver, C.G., 2016. E-commerce: business, technology, society.
Wachter, S., Mittelstadt, B. and Floridi, L., 2017. Why a right to explanation of automated
decision-making does not exist in the general data protection regulation. International Data
Privacy Law, 7(2), pp.76-99.
Wagner, R., 2017. Internet business models: An updated reference framework.