Facebook Data Privacy Scandal Case Study: Business Driven Technology

This case study analyzes the Facebook data privacy scandal, focusing on the information age, data management, and system thinking. It explores the differences between data, information, business intelligence, and knowledge, highlighting the importance of Management Information Systems (MIS) in addressing issues like information silos within Facebook's global organization. The study examines how MIS enables business communications and demonstrates how Facebook could add value using Porter’s Value Chain Analysis. Furthermore, it explains the role of CRM systems in understanding customer needs, particularly in light of the data scandal. The assignment covers the application of these concepts to Facebook's challenges and opportunities, offering insights into data privacy, business strategies, and customer relationship management.

Running head: FACEBOOK SCANDAL CASE STUDY
Facebook Scandal Case Study
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1. Description of the Information Age and the Differences among Data, Information,
Business Intelligence and Knowledge
The information age or digital age can be referred to as the historic period that started
from the 20th century and is being characterized by the major shift from the traditional industry
on the basis of information technology (Laudon and Laudon 2015). Proper usage of computing
technology in the wide society has eventually led to the modern information and communication
procedures for becoming the driving force of this social evolution.
There are major differences within data, information, business intelligence and
knowledge. Data are the facts or details from which information is generated. The individual
pieces of data are not extremely useful for any organization; however all the pieces and parts
information are highly beneficial for any company or organization (Burrough et al. 2015). Data
is raw and unorganized fact, which requires to be processed properly; on the other hand,
information is organized and structured. It is not possible to get information without involving
data in it. Knowledge refers to the overall understanding and awareness that is being acquired
from experience or education of a person. Information, being the refined form of data helps a
user to get accustomed with knowledge. As a result, it can be referred to the fact that knowledge
is the objective and relevant information that helps to draw conclusion. Business intelligence
emphasizes on capturing data, manipulation of the data and finally analysis of the data (Stair and
Reynolds 2015). However, knowledge management will perform different activities of business
intelligence and even in successful creation of the new knowledge.
2. Explanation of System Thinking and MIS solving Issues with Information silos Facebook
entire Worldwide Organization

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System thinking is a significant approach for better analysis, which helps in focusing on
the way that the constituent parts of a system interlink for understanding the working process of
the system over time and within the distinct context of large systems (Pearlson, Saunders and
Galletta 2019). MIS or management information system is the computerized system, which
comprises of software and hardware for serving as the distinct backbone to the organizational
operations and processes. Since, management information system gathers data from several
online systems for better decision making process. It helps in coordination, control, analyses as
well as visualization of information within the business. The main objective of the utilization of a
MIS is to increment the profits and value of the respective business.
Social networking site like Facebook is able to deal with different complex situations and
then gain maximum competitive advantages. Facebook has dealt with data scandal for
Cambridge Analytica in recent times and proper utilization of management information system
in the business. Decisions would be undertaken on top most priority for a shorter period of time.
As a result, they would be able to deal with the issues related to information management easily
and promptly in the most effective manner (Paré et al. 2015). If Facebook would have used
management information system in their business properly, it would had been evident that the
issues related to data loss and theft would have been successfully eradicated. Moreover, system
thinking is also considered as one of the most effective and effective approaches.
3. Explanation of MIS enabling Business Communications at Facebook
Management information systems are responsible for facilitating proper communication
inside and outside the company, so that several employees within the company get the
opportunity to easily access the respective information for regular operations (Dwivedi et al.
2015). Since, it supports communication on a top level, it becomes quite easier for all employees

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to ensure that the management of business is being done eventually and there exists no chance
for data loss and data theft. With proper communication, Facebook would have been able to
communicate and know about the data privacy scandal earlier and hence issues would have been
avoided on top priority. Management information system is also responsible for record keeping
in a safe and secured manner and hence organizational transactions would have been kept on safe
aspects.
As a result, Cambridge Analytica would not have got accessibility to the valuable and
confidential data under any circumstance. The most important and significant components of
MIS include people, data, business processes, hardware and software. The people, here refers to
the individuals, who are using the management information system. The data is the record kept
by the respective information system (Wager, Lee and Glaser 2017). The business processes put
in place on the process of recording, storing and analysis of the data. Hardware majorly include
servers, networking equipment, work stations, printers and many more. Finally, the component
of software refer to the programs that are being utilized for handling the data of the customers.
Hence, organizational management is done in the most efficient manner.
4. Demonstration on Facebook adding value by using Porter’s Value Chain Analysis
Porter’s value chain analysis is a business management concept that creates added values
for leading to major competitive advantages within the respective organization. This particular
value chain can be referred to as a specific set of various activities, which are being executed by
an organization for successful creation of values for the customers (Hair et al. 2017). The main
strength of this Porter’s value chain analysis is then most unique approach. It emphasizes on the
activities and systems with the customers as the central principle and not only on the major
categories of accounting expenses and departments. This particular system is responsible for

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linking the activities and systems to one another and then demonstrate the effect on profit and
costs. The value chain analyses hence make it quite clear, in which the respective sources of
value and loss amount could be found out within the company eventually. Management
information system allows decision makers to make proper decisions and allow the employees to
communicate better through different media, such as emails for ensuring that customer
communication is prevailed under any circumstance.
Facebook can add value to the business with the help of Porter’s value chain analysis.
This particular analysis comprises of different activities, which include primary activities as well
as support activities (Helbing et al. 2015). The primary activities comprise of a direct effect on
the respective productions, maintenance, sales or support of the services and products that are to
be supplied. The major and the most significant primary value chain activities for the social
networking site of Facebook are provided in the following paragraphs:
i) Primary Activities: Without analysis of inbound logistics, it would be quite difficult for
Facebook to gain success. They would be able to eradicate the probable challenges within their
respective phases of product development. The major examples include retrieval of raw materials
and storing the inputs for internal distribution of the components. These outbound logistics
involve the core activities, which deliver the product to their customers by simply passing
through several intermediaries. Other major activities include operations, services and marketing
and sales. Facebook would highlight the advantages for better cost management.
ii) Secondary Activities: These activities involve firm infrastructures, HRM,
technological development and finally procurement. They support activities play vital roles in
coordination and facilitation of the primary value chain activities.

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5. Explanation of CRM Systems and Facebook using CRM to understand Customer’s
Needs
CRM or customer relationship management can be referred to as the major and the most
significant approach for better management of the organizational interaction with their potential
and current customers (Prat, Comyn-Wattiau and Akoka 2015). It eventually utilizes data
analysis regarding the customers’ history with the organization for better improvement of
business relations with their customers for focusing on the customer retention and even driving
sales growth. The most vital and significant aspect of this particular approach of customer
relationship management is the systems of CRM, which are responsible for compiling data from
the wide range of several communication channels like the organizational website, contact
number, electronic mails, live chat, social media and marketing materials. With the distinct
approach of customer relationship management as well as the systems, required for facilitating it,
the businesses could learn more about the respective target audiences for better catering to the
best needs of their customers.
Since, Facebook has faced issues related to data scandal, it is highly efficient and
effective for them to use customer relationship management within their business, so that it
becomes quite easier for them to manage the data of the customers and also fulfill customer
needs and satisfaction. The first and the foremost requirement, for which Facebook can use this
customer relationship management approach for fulfilling the needs of customer is enhancement
of better customer service (Beynon-Davies 2016). As they have already faced issues related to
data loss, it is needed for them to ensure that customer services are kept on top priority. CRM
systems would be providing them with several strategic advantages. One of such advantage is the
core capability of adding a personalized touch to the existing relations within the customers and

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businesses. Since, customers are the most vital and significant requirements in their business, this
particular system would be effective for them.
The second important and significant requirement, for which Facebook can use this
customer relationship management approach for fulfilling the needs of customer is facilitation of
discovery of the new customers. This particular system is required for recognition of the most
potential customers for keeping track of the profiles of their existing customers for determination
of the people, who are targeting those (Debortoli et al. 2016). As a result, they have been
successful in improving the social life of the customers in a better manner and hence
undermining people offline relations to a high level. With the successful involvement of CRM,
Facebook had been able to deal with the existing complexities.

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