14      Decision Support and Business Intelligence Systems (10th Edition) Instructor’s Manual

Chapter 14:

Implementation Issues: From Ethics and Privacy to Organizational and Societal Impacts

Learning Objectives for Chapter 14

1. Describe the major implementation issues of intelligent technologies

2. Discuss legal, privacy and ethical issues

3. Understand the deployment issues of intelligent systems

4. Describe the major impacts on organizations and society

5. Discuss and debate the impacts on jobs and work

6. Discuss the arguments of utopia and dystopia in a debate of the future of robots and artificial intelligence (AI)

7. Discuss the potential danger of mathematical models in analytics

8. Describe the major influencing technology trends

9. Describe the highlights of the future of intelligent systems

CHAPTER OVERVIEW

In this concluding chapter, we cover a variety of issues related to the implementation and future of intelligent systems. We begin our coverage with technological issues such as security and connectivity. Then, we move to managerial issues that cover legality, privacy, and ethics. We next explore the impacts on organizations, society, work and jobs. Then, we review technology trends that point to the future. Note. In this chapter we refer to all technologies covered in this book as intelligent technologies or intelligent systems. This chapter has the following sections:

CHAPTER OUTLINE

14.1 Opening Vignette: Why Did Uber Pay $245 Million to Waymo?

14.2 Implementing Intelligent Systems: An Overview

14.3 Legal, Privacy, and Ethical Issues

14.4 Successful Deployment of Intelligent Systems

14.5 Impacts of Intelligent Systems on Organizations 740 14.6 Impacts on Jobs and Work

14.7 Potential Dangers of Robots, AI, and Analytical Models

14.8 Relevant Technology Trends

14.9 Future of Intelligent Systems

ANSWERS TO END OF SECTION REVIEW QUESTIONS( ( ( ( ( (

Section 14.1 Review Questions

1. Identify the legal issues involved in this case.

The primary legal issue centers around the intellectual property of self driving cars created by Waymo’s and the distinction between that intellectual property and the industry know-how developed by former employees.

2. Why do you think Waymo agreed to take Uber’s shares instead of money?

It may have been difficult to value the intellectual property at issue, and offering stock provided a way to extract future value from that property while not curtailing current operations.

3. What is the meaning of intellectual property in this case?

Intellectual property in this case included specific files on knowledge methods and construction of self driving cars as well as insiders general understanding of how those cars were being developed and built.

4. The presiding federal judge said at the end: “This case is now ancient history.” What did he mean to say?

Student interpretations of this will vary, but may focus on the fact that by the time this case was settled significant progress had been made in the associated technologies.

5. Summarize the potential damages to the two parties if they had continued with the legal dispute.

Both parties ran the risk of losing the associated intellectual property in the lawsuit, as well as continuing to accrue significant legal costs.

6. Summarize the benefits of the settlement to both sides.

Both sides were able to maintain intellectual property rights and cut their legal costs. Waymo was able to benefit in future possible economic benefits from the intellectual property (via stock) while not slowing Uber’s current pace of development.

Section 14.2 Review Questions

1. List the major steps in the implementation process.

· Step 1 Need assessment

· Step 2 Preparations

· Step 3 System acquisition

· Step 4 System development

· Step 5 Impact assessment

2. Why is implementation an important subject?

While making the correct business decision is critical, so is the implementation of new programs, processes and services. If implementation is not handled well these new initiatives may operate sub-optimally or may fail altogether.

3. Describe the major impact areas of intelligent systems.

Intelligent systems are impacting all our lives and many businesses and other organizations. These changes are occurring in almost all aspects of businesses and organizations to help improve products and services, reduce costs and expand markets.

Section 14.3 Review Questions

1. List some legal issues of intelligent systems.

· What is the value of an expert opinion in court when the expertise is encoded in a computer?

· Who is liable for wrong advice (or information) provided by an intelligent application?

· What happens if a manager enters an incorrect judgment value into an analytic application and the result is damage or a disaster?

· Who owns the knowledge in a knowledge base?

· Can management force experts to contribute their expertise?

2. Describe privacy concerns in intelligent systems.

In general, privacy is the right to be left alone and the right to be free from unreasonable personal intrusions. The Internet, in combination with large-scale databases, has created an entirely new dimension of accessing and using data. The inherent power in systems that can access vast amounts of data can be used for the good of society. For example, by matching records with the aid of a computer, it is possible to eliminate or reduce fraud, crime, government mismanagement, tax evasion, welfare cheating, family-support filching, employment of illegal aliens, and so on. The same is true on the corporate level. Private information about employees may aid in better decision making, but the employees’ privacy may be affected. Similar issues are related to information about customers.

3. In your view, who should own the data about your use of a car? Why?

Student opinions will vary, but arguments will revolve around individual privacy concerns versus the need to know of employers.

4. List ethical issues in intelligent systems.

Representative ethical issues that could be of interest in MSS implementations include the following:

· Electronic surveillance

· Ethics in DSS design

· Software piracy

· Invasion of individuals’ privacy

· Use of proprietary databases

· Use of intellectual property such as knowledge and expertise

· Exposure of employees to unsafe environments related to computers

· Computer accessibility for workers with disabilities

· Accuracy of data, information, and knowledge

· Protection of the rights of users

· Accessibility to information

· Use of corporate computers for non-work-related purposes

· How much decision making to delegate to computers

5. What are the 10 commandments of computer/information systems?

1. Thou shalt not use a computer to harm other people.

2. Thou shalt not interfere with other people’s computer work.

3. Thou shalt not snoop around in other people’s files.

4. Thou shalt not use a computer to steal.

5. Thou shalt not use a computer to bear false witness.

6. Thou shalt not use or copy software for which you have not paid.

7. Thou shalt not use other people’s computer resources without authorization.

8. Thou shalt not appropriate other people’s intellectual output.

9. Thou shalt not think about the social consequences of the program you write.

10. Thou shalt not use a computer in ways that show consideration and respect.

Section 14.4 Review Questions

1. Describe the systems deployment process.

KPMG’s approach includes the following four steps:

· Establishing priority areas for technological innovation.

· Developing a strategy and a plan for the employees.

· Identify providers and partners for plans’ execution.

· Establishing a strategy and plans to realize benefits from the digital labor initiatives.

2. Discuss the role of top management in deploying intelligent systems.

It is critical for top management to understand the entirety of the intelligent system that they are implementing with specific focus on tactical and strategic opportunities, organizational redesign, and integration into organizational structure and the effect on jobs.

3. Why is connectivity such an important issue?

These systems by their nature require constant access to designated networks (or the Internet) to function. In many cases, the real time data involved also necessitates a high-speed connection to ensure that all data reaches the appropriate software quickly.

4. Describe system development issues.

Shchutskaya (2017) cites the following three major problems:

1. Development approach. Business analytic and AI systems require an approach different from that of other IT/computer systems. Specifically, it is necessary to identify and deal with different and frequently large data sources. It is necessary to cleanse and curate these data. Also, if learning is involved, one needs to use machine training. Thus, special methodologies are needed.

2. Learning from data. Many AI and business analytics involve learning. The quality of the input data determines the quality of the applications. Also, the learning mechanism is important. Therefore, data accuracy is critical. In learning, systems must be able to deal with changing environmental conditions. Data should be organized in databases, not in files.

3. No clear view is available of how insights are generated. AI, IoT, and business analytic systems generate insights, conclusions, and recommendations based on the analysis of the data collected. Given that data are frequently collected by sensors and there are different types of them, we may not have a clear view of the insights that are generated.

5. Discuss the importance of security and safety, and how to protect them.

Most of these systems are designed to be managed and updated in the cloud and thus are part of the Internet that exposes them to hackers. This potential must be clearly acknowledged during the design and implementation of systems so that appropriate consideration of the potential threats and methods to minimize or eliminate them are incorporated into design.

6. Describe some issues in intelligent systems adoption.

There are many possible issues related to the adoption of intelligent systems, but some include employee resistance, lack of sufficient resources, lack of planning and coordination, etc.

Section 14.5 Review Questions

1. List the impacts of intelligent systems on managerial tasks.

Less expertise (experience) is required for making many decisions. Faster decision making is possible because of the availability of information and the automation of some phases in the decision-making process. Less reliance on experts and analysts is required to provide support to top executives. Power is being redistributed among managers. (The more information and analysis capability they possess, the more power they have.) Support for complex decisions allows decisions to be made faster and of better quality. Information needed for high-level decision making is expedited or even self-generated. Automation of routine decisions or phases in the decision-making process (e.g., for frontline decision making and using ADS) may eliminate some managers, especially middle level managers. Routine and mundane work can be done using an analytic system, freeing up managers and knowledge workers to do more challenging tasks.

2. Describe new organizational units that are created because of intelligent systems.

One change in organizational structure is the possibility of creating an analytics department, a BI department, or a knowledge management department in which analytics play a major role. This special unit can be combined with or replace a quantitative analysis unit, or it can be a completely new entity.

3. Identify examples of analytics and AI applications used to redesign workspace or team behavior.

When a company introduces a data warehouse and BI, the information flows and related business processes (e.g., order fulfillment) are likely to change because information flows change. For example, before IBM introduced e-procurement, it restructured all related business processes, including decision making, searching inventories, reordering, and shipping.

4. How is cognitive computing affecting industry structure and competition?

The use of cognitive computing is having a great impact on industries due to the ability to enable more tasks to be completed by humans and shifting some tasks to systems that may have been completed by humans in the past. This results in the ability to process significantly more information at a greatly increased pace which could allow for better organizational decision-making.

5. Describe the impacts of intelligent systems on competition.

The use of intelligent systems can allow organizations to effectively utilize significantly more data in the completion of decision making processes. This should result in better decisions that will have positive organizational impacts and aid in a firm’s overall level of competitiveness in its industry. Organizations that do not adopt these technology run the risk of becoming less competitive. Him

6. Discuss the impact of intelligent systems on decision making

Analytics can change the manner in which many decisions are made and can consequently change managers’ jobs. They can help managers gain more knowledge, experience, and expertise, and consequently enhances the quality and speed of their decision making. In particular, information gathering for decision making is completed much more quickly when analytics are in use. This affects both strategic planning and control decisions, changing the decision-making process and even decision-making styles.

Section 14.6 Review Questions

1. Summarize the arguments of why intelligent systems will take away many jobs.

The primary argument is that intelligent systems can automate the cognitive tasks required in many jobs and provide this at a lower cost as well as higher-speed/accuracy level than existing workers.

2. Discuss why job losses may not be catastrophic.

This argument centers on the bullies that intelligent systems will change the nature of work, causing the loss of many current jobs, and will create a number of new positions that support these systems or the improvements/changes that they usher in.

3. How safe is your job? Be specific.

Student responses will vary based on their position and their perception of the impact of intelligent systems.

4. How may intelligent systems change jobs?

It is projected that intelligent systems may eliminate many low skilled jobs by automating them, but will increase the importance of high skilled jobs that can only be performed by humans.

5. In what ways may work be changed?

Intelligent systems may change the dynamic of how humans and AI work together.

6. Discuss some measures to deal with the changes brought by intelligent systems.

Manyika (2017) made the following suggestions for policymakers:

1. Use learning and education to facilitate the change.

2. Involve the private sector in enhancing training and retraining.

3. Have governments provide incentives to the private sector so employees can invest in improved human capital.

4. Encourage private and public sectors to create appropriate digital infrastructure.

5. Innovative income and wage schemes need to be developed.

6. Carefully plan the transition to the new work. Deal properly with displaced employees.

7. Properly handle new technology-enabled technologies.

8. Focus on new job creation, particularly digital jobs.

9. Properly capture the productivity increase opportunities.

7. One of the areas of potential job loss is due to autonomous vehicles. Discuss the logic of this.

The belief is that autonomous vehicles will be able to provide the required services at a lower cost, faster total time and with a reduction of accidents. If this is the case, there is significant economic incentive to move to autonomous vehicles as quickly as possible.

Section 14.7 Review Questions

1. Summarize the major arguments of the Utopia camp.

AI will support humans and enable innovations. AI also will partner with humans.

2 him. Summarize the major arguments of the Dystopia camp.

AI will become more intelligent and powerful than humans and replace them.

3. What is the friendly AI?

AI machines should be designed so that they will benefit humans rather than harm them

4. What is Open AI? Relate it to the dystopia vision.

Open AI is a nonprofit organization tasked with enacting the path to safe artificial general intelligence (AGI).

5. What are the potential risks in using modeling and analytics?

O’Neil (2016) argues that analytics may serve to increase inequality and threaten democracy through the use of models that are nontransparent with ill-defined objectives and no self-correcting mechanisms.

Section 14.8 Review Questions

1. Identify three of the Gartner 10 that are mostly related to analytics and data science.

Student perception of the most important factors may vary.

2. Intelligent Apps and Analytics.

5. Empowered Cloud

9. Augmented Analytics.

2. Identify three of the Gartner 10 that are most related to AI and machine learning.

Student perception of the most important factors may vary.

1. AI Foundation and Development.

2. Intelligent Apps and Analytics.

3. Intelligent and Autonomous Things.

3. Identify three of the Gartner 10 that are most related to IoT, sensors, and connectivity.

Student perception of the most important factors may vary.

2. Intelligent Apps and Analytics.

3. Intelligent and Autonomous Things.

5. Empowered Cloud

4. Identify three technologies related to analytics from the other predictions list and explore them in more detail. Write a report.

Student selections and reports will vary.

5. Identify three data science–related technologies from the long list and explore them in more detail. Write a report.

Student selections and reports will vary.

6. Identify three AI-related technologies from the long list and explore them in more detail. Write a report.

Student selections and reports will vary.

7. Describe ambient computing and its potential contribution to intelligent systems.

Ambient computing (or paradigm computing) refers to electronic environments (e.g., network devices such as sensors) that are sensitive and responsive to people and their environments and can support people in whatever task they are doing.

Section 14.9 Review Questions

1. Describe the AI activities of major U.S. tech companies.

Student responses will vary based on the date of response and amount of research performed. Examples of current AI activities for US tech companies (such as Google, Apple, Facebook, Microsoft and IBM) are seen on pages 760 through 761.

2. Describe the work by Chinese giant companies.

Student responses will vary based on the date of response and amount of research performed. Examples of current AI activities for Chinese tech companies (such as Tencent, Baidu and Alibab) are seen on pages 761 through 762.

3. Describe Alibaba’s approach to AI (The ET Brain model).

The approach consists of three parts: technologies, capabilities and applications. Technologies include systems such as big data processing, neural networks, and advanced data processing. These technologies support brain capabilities. Brain capabilities include sections such as reasoning, machine learning, cognitive perception and strategic decision-making. These capabilities can then benefit applications and innovations in a number of areas including smart cities, travel, fashion, medical, environment etc.

ANSWERS TO APPLICATION CASE QUESTIONS FOR DISCUSSION( (

Application Case 14.1: How 1-800-Flowers.com Uses Intelligent Systems for Competitive Advantage

1. Why it is necessary to provide better customer experience today?

The company is in a highly competitive market, and customer satisfaction drives repeat business which has a major impact on financial success.

2. Why do data need sophisticated analytical tools?

Sophisticated tools allow for better personalization for customers. By better understanding customer needs and being able to suggest more appropriate products, the company is able to maintain/increase customer satisfaction.

3. Read the “Key benefit of SAS Marketing Automation.” Which benefits do you think are used by 1-800-Flowers.com and why?

Student perceptions of the report will vary and so will their selection of the benefits that could aid this particular company.

Application Case 14.2: White-Collar Jobs That Robots Have Already Taken

1. Watch the 4:22 min. video about an interview with Palmer, at linkedin.com/pulse/5-jobsrobots-take-first-shelly-palmer/. Discuss some of the assertions made regarding doctors.

Student perceptions about the assertions will vary.

2. Discuss the possibility of your checkup by a robot-diagnostician. How would you feel?

Student perception and opinions will vary.

3. With the bombardment of fake news and their biased creators, it may be wise to replace all of them by intelligent machines. Discuss such a possibility.

Student perceptions of this option will vary, but may focus around the ability to effectively lead out fake news versus alternative viewpoints.

4. You are a defendant in a crime you did not commit. Would you prefer a traditional lawyer or one equipped with an AI e-discovery machine? Why?

Student perception and opinions will vary.

Application Case 14.3: How Alibaba.com Is Conducting AI

1. Relate cloud computing to AI at Alibaba.

Alibaba believes that all AI in the future will be conducted in a cloud environment, and thus the AI system that it is developing must be based in the cloud.

2. Explain the logic of the ET Brain model.

The approach consists of three parts: technologies, capabilities and applications. Technologies include systems such as big data processing, neural networks, and advanced data processing. These technologies support brain capabilities. Brain capabilities include sections such as reasoning, machine learning, cognitive perception and strategic decision-making. These capabilities can then benefit applications and innovations in a number of areas including smart cities, travel, fashion, medical, environment etc.

3. Search the Web to find recent Alibaba activities in the AI field.

Results will vary based on the date of search.

4. Read Lashinsky (2018). Why is Alibaba in such strong competition with Tencent?

Student perceptions, analysis and reports on this paper will vary.

ANSWERS TO END OF CHAPTER QUESTIONS FOR DISCUSSION( ( (

1. Some say that analytics in general dehumanize managerial activities, and others say they do not. Discuss arguments for both points of view.

Students’ answers will differ. A common criticism of traditional data-processing systems is their negative effects on people’s individuality. Such systems are criticized as being impersonal: They may dehumanize and depersonalize activities that have been computerized because they reduce or eliminate the human element that was present in noncomputerized systems. Some people feel a loss of identity; they feel like just another number. On the bright side, one of the major objectives of analytics is to create flexible systems and interfaces that allow individuals to share their opinions and knowledge and work together with computers. Despite all these efforts, some people are still afraid of computers, so they are stressed; others are mostly afraid of their employers watching what they do on the computer.

2. Diagnosing infections and prescribing pharmaceuticals are the weak points of many practicing physicians. It seems, therefore, that society would be better served if analytics-based diagnostic systems were used by more physicians. Answer the following questions:

a. Why do you think such systems are used minimally by physicians?

Students’ answers will differ. Some reasons are: physicians do not understand and therefore do not trust the ES; malpractice insurance does not cover recommendations made by MYCIN; administrators will not invest in it; physicians fear they will be replaced or earn less.

b. Assume that you are a hospital administrator whose physicians are salaried and report to you. What would you do to persuade them to use an intelligent system?

Students’ answers will differ. Students should identify a combination of positive (more money) and negative (calm their fears) motivators

c. If the potential benefits to society are so great, can society do something that will increase doctors’ use of such intelligent systems?

Probably not--or at least not yet.

3. What are some of the major privacy concerns in employing intelligent systems on mobile data?

Loss of privacy is a key concern in employing analytics on mobile data. If someone can track the movement of a cell phone, the privacy of that customer is a big issue. Some of the app developers claim that they only need to gather aggregate flow information, not individually identifiable information. But many stories appear in the media that highlight violations of this general principle. Sometimes, retailers provide information on their customers to the federal government, in violation of their stated privacy policies.

Legally, the right of privacy is not absolute. The public’s right to know is superior to the individual’s right to privacy. For example, the USA PATRIOT Act broadens the government’s ability to access student information and personal financial information without any suspicion of wrongdoing. Location information from devices has been used to locate victims and criminals, so provides a social good. But at what point is the information not the property of the individual?

4. Identify some cases of violations of user privacy from current literature and their impact on data science as a profession.

Student selection of cases of privacy violation will vary based on their searches and date of those searches.

5. Some fear that robots and AI will kill all of us. Others disagree. Debate the issue.

Student opinions in this debate will vary greatly!

6. Some claim that AI is overhyped. Debate the issue. Place a question on Quora and analyze five responses.

Student opinions on this question and the responses received on Quora will vary.

7. Some claim that AI may become a human rights issue (search for Safiya Noble). Discuss and debate.

Student research and reports will vary

8. Discuss the potential impact of the GDPR on privacy, security, and discrimination.

Student research and reports will vary.

9. Discuss ethics and fairness in machine learning. Start by reading Pakzad (2018).

Student analysis and discussion of this paper will vary based on their viewpoints and personal opinions.

10. Should robots be taxed like workers? Read Morris (2017) and write about the pros and cons of the issue.

Student analysis and reports on this topic will vary.

ANSWERS TO END OF CHAPTER EXERCISES( (

1. Identify ethical issues related to managerial decision making. Search the Internet, join discussion groups/ blogs, and read articles from the Internet. Prepare a report on your findings.

Ethical issues related to management decision-making and MIS in general are seen in sources such as the “Ten Commandants” of computer ethics. Other items may include:

· Electronic surveillance.

· Ethics in business intelligence (BI) and AI systems design.

· Software piracy.

· Invasion of individuals’ privacy.

· Use of proprietary databases and knowledge bases.

· Use of personal intellectual property such as knowledge and expertise for the benefits of companies and the payment to the contributors.

· Accuracy of data, information, and knowledge.

· Protection of the rights of users.

· Accessibility to information by AI users.

· The amount of decision making to delegate to intelligent machines.

Student selection of specific ethical issues and reports will vary

2. Search the Internet to find examples of how intelligent systems can facilitate activities such as empowerment, mass customization, and teamwork.

Student search results and reports will vary

3. Investigate the American Bar Association’s Technology Resource Center (americanbar.org/groups/departments_offices/legal_technology_resources.html) and nolo.com. What are the major legal and societal concerns regarding intelligent systems? How are they being dealt with?

Student research and selection of issues will vary, this will greatly affect the content of their reports.

4. Explore several sites related to healthcare (e.g., WebMD. com, who.int). Find issues related to AI and privacy. Write a report on how these sites suggest improving privacy.

Student research and selection of issues will vary, this will greatly affect the content of their reports.

5. Go to Humanyze.com. Review various case studies and summarize one interesting application of sensors in understanding social exchanges in organizations.

Student selection of the case study will vary and will affect their reports.

6. Research the issue of voice assistants and privacy protection. Start by reading Collins (2017) and Huff (2017).

Student reports will vary.

7. Is granting advanced robots rights a good or bad idea? Read Kottasova (2018) for a start.

Student perceptions and opinions will vary.

8. Face and voice recognition applications are mushrooming. Research the state of their regulation in a country of your choice. Use the United States if your country is not regulating.

Student research will vary greatly based on the date of the research.

9. Research the ethical issues of self-driving cars. Start by reading Himmelreich (2018).

Student perceptions and opinions on this issue will vary.

10. Is your organization ready for AI? Research this issue and find all major activities that it includes.

Student responses will vary based on the type and industry of the organization that they affiliate with.

11. Research the role of IoT as a tool for providing connectivity between sensors and analytics. Write a report.

Student reports will vary.

12. Some people say that robots and chatbots may increase insurance risk and fees. Research this and write a report.

Student research and reports will vary.

13. Watch the video at youtube.com/watch?v=wwuovuCfDU/ and comment about the robot’s potential impacts.

Student perception of the video and their reflections on it will vary.

14. Research the issue stated in quotation marks: “When will robots rebel?” and “Will AI take control of the plant?” Start by reading Maguire (2017) and read advancedmp. com/artificial-intelligence/. Write a report.

Student opinion and the resulting reports on this topic will vary greatly!

15. Read Chui et al. (2016) and research the areas in which machines can replace humans and where they cannot (yet). Find changes since 2016. Write a report.

Student reports will vary based on the date of research and their selection of areas of possible replacement.

16. Watch the 3:38 min. video at youtube.com/watch?v=781Mlkxyql/. Relate it to Musk’s predictions about robots reigning in this world (Section 14.7).

Student perceptions and responses will vary.

17. Read the SAS report on AI ethics at sas.com/en_us/ insights/articles/analytics/artificial-intelligenceethics.html. Comment on each of the three proposed steps. Also comment on the human-machine collaboration in problem solving.

Student reports will vary.

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