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Bridging the Digital Divide

As technology evolvesand becomes a larger part of our world, the digital divide becomes a more pressing issue. Not only does the digital divide negatively affect individuals but businesses as well, and creates economic implications worldwide. The digital divide is commonly thought of as the gap between “people who have access to Information and communication technology (ICT) and people who don’t.” (Project Cycle, 2013) However, it is critical to include the divide “between people who have knowledge of ICT and those who don’t, between people who realize the opportunities presented by ICT and those who don’t.” (Project Cycle, 2013) Edwyn states, “the technology is practically worthless unless people are equipped with the know-how, and the willingness, to use it.” (Edwyn, 2001) The main barriers toward e-inclusion, or the elimination of the digital divide, include access, affordability, and awareness. (Andresson, 2015) The older generation and low-income families make up the majority of people on the lower end of the divide. This is concerning because “by 2021 about 20% of the population will be aged 65 or over.” (Ponder, 2002) As a result, the older generation is becoming an increasingly significant section of our community. However, according to the latest reports, as the pace of technological change accelerates, this section of society is at risk of being left behind in the digital revolution.” (Pinder, 2002) As shown in the graph below from Pew Research Center’s Internet & American Life’s project, the use of home broadband, Internet, and the ownership of mobile phones, increases with income. Flew states that “such unequal access matters because it is typically associated with other measures of social disadvantage.” (Flew, 2005)

This video explains how the digital divide leaves underdeveloped countries in the dust. This is an issue because it affects the world economy. I am planning on going into the financial industry and due to the growing globalization of the industry, economies from all over the world are relevant. This is another reason that motivates me to help eliminate the digital divide.

As an individual, I can help bridge this divide by focusing on helping in my local community. At my home college, Bentley University, students are encouraged to engage with the Waltham, Massachusetts community which is mainly composed of low-income families, many of whom are immigrants. I can organize a program of volunteer students that would join me a couple times a week to train those eager to learn how to use their computers, programs, and devices. We could visit them at a common location or have a group of people come to the Bentley campus and utilize the university's high-tech facilities and technologies. The ultimate goal would be that once I am able to help some of the community, they could pay it forward and teach some of their friends the new information they have learned.

Furthermore, as a professional, I can attempt to bridge the divide by influencing my company to partner with foundations that are focused on closing the gap. Close-the-Gap.org is an organization that has numerous programs to aid in training to those in need. The project cycle picks up equipment from donor companies and refurbishes them and installs software on the computers, and provides on-site training. (Project Cycle, 2013) The image below shows step by step how their program operates.

A new trend in the financial service industry is to provide mobile and online access to accounts and information. As a professional, I can personally show my clients how to use these applications to their full extent and correctly. Moreover, I could influence the company I work for to provide occasional seminars for a wide range of clients to attend and learn how to use our online/mobile applications and services. This would be tackling the knowledge gap of the digital divide.

If the digital divide was bridged, the world overall would be more globalized and efficient which would lead to great progress. As I learn more and more about the increasing technology in our world, I feel fortunate and want to pass that information onto those who have not yet absorbed it!

Hacking and Privacy Violations

Hacking and privacy violations can be detrimental to businesses, more specifically when it is dealing with financial service firmsor the financial department of any company. Some of the major recent breaches include Target, Michaels Stores, Neiman Marcus, Home Depot, and JPMorgan Chase. (Hacking a big danger for small businesses, 2014) Beyond just these large name companies, “many small businesses have been attacked -- 44 percent, according to a 2013 survey by the National Small Business Association.” (Hacking a big danger for small businesses, 2014) The JPMorgan case is especially interesting to me since it is a financial service company and was “one of the largest security breaches in history.” (Bruinius, 2014) JPMorgan admitted “the attack on its computer servers this summer compromised customer information from about 76 million households and 7 million small businesses.” (Hacking a big danger for small businesses, 2014) Hacking has been an issue for years, and gained the public’s attention since the “hacker crackdown of the early 1990s.” (Flew, 2005.)

An interview with Ken Westin, local security researcher, discusses the JPMorgan data breach. Westin explains the details of the data breach and how the “fisher attacks” can now be a threat to customers whose information was compromised. An example of a fisher attack is an e-mail or phone call impersonating the bank requesting personal information. Furthermore, Westin explains that the attack is most likely from Russia or Eastern Europe and that attacks of this magnitude can be seen as a threat of national security.

This news is alarming, particularly because hackers “were able to access more than 90 JPMorgan Chase servers for nearly two months before they were detected.” (Bruinius, 2014) Attacks like these are harmful to the customers’ whose information was stolen as well as the business who looses revenue and incurs large costs. “Typically, businesses must have a computer expert find the source of the attack and systems have to be purged of harmful software like viruses. When websites are shut down revenue can be lost.” (Hacking is a big danger, 2014) Furthermore, the attacked business often “pay for two years of ID theft protection for anyone who wants it,” as well as “do notification by third-party certified mail to all customers” which can add up to a large amount when there is a large amount of customers that need to be notified. (Bedner, 2013) Another major cost of privacy breaches on business is the loss of trust from their customers. A survey shoed that 65% of companies said reputational damage was their main concern after a cyber attack or data breach. (Cyber liability insurance to grow, 2014) Because of these consequences, firms nowadays are “more concerned about cyber threats than any other major business risk.” (Bedner, 2013)

As a result of these dangers laws are becoming stricter regarding privacy violations, and “federal laws have tightened standards on the financial industry.” (Sweat, 2001) As consumers are becoming more aware of privacy risks, business are attempting to find the correct balance “between knowing and serving customers well and violating their privacy.” (Sweat, 2001) According to a recent survey of consumers, “more than 80% are concerned about the privacy of their Social Security and credit-card numbers, and 60% say security and privacy worries keep them from doing business online.” (Sweat, 2001)

In order to make customers feel safer, Fidelity Investments “Investments wanted to tell people about its privacy policy, reasoning that its strategy of keeping customer information to itself could win loyalty. But it decided not to send out an E-mail explaining the policy because it didn't want to bug its customers. Says chief privacy officer Leigh Williams, ‘We don't want to intrude with a message that we're not intrusive.’"(Sweat, 2001) There is a thin line between keep customers informed and bombarding them with too much information, and this is something many financial service firms find themselves struggling with. Fidelity Investment’s approach to avoiding privacy violations is intriguing to me since I will be working there this summer. According to Sweat, “Fidelity won't even share information across business lines-only the customer can link multiple accounts such as a 401(k) account and a moneymarket fund.” (Sweat, 2001) While some may say view this as a negative because it is one less service Fidelity is offering their customers, many others, including myself, see it as a precaution Fidelity is taking for their customers in order to dodge possible data breaches.

Works Cited

Bednar, J. (2013). Hacking it. BusinessWest, 30(3), 34. Retrieved from http://search.proquest.com/docview/1415783982?accountid=26503

Bruinius, H. (2014, Oct 03). Cybersecurity mystery at JPMorgan chase: What were hackers after? The Christian Science MonitorRetrieved from http://search.proquest.com/docview/1571008708?accountid=26503

Cyber liability insurance to grow. (2014, May 12). The Business Times Retrieved from http://search.proquest.com/docview/1523656916?accountid=26503

Flew, Terry. New Media: An Introduction.4th ed. South Melbourne, Vic.: Oxford UP, 2005 Print.

Hacking a big danger for small businesses. (2014). Long Island Business News, Retrieved from http://search.proquest.com/docview/1610836382?accountid=26503

Sweat, J. (2001). Privacy. InformationWeek, (851), 30-37. Retrieved from http://search.proquest.com/docview/229165016?accountid=26503

The use of social media allows business professionals to connect to a wide range of their clients while also overcoming time and space barriers. According to Science Direct, “69 percent of respondents report thattheir companies have gained measurable business benefits, including more innovative products and services, more effective marketing, better access to knowledge, lower cost of doing business, and higher revenues,” when talking about the sue of social media. (Jari, Hannu & Heli, 2014) As companies keep uncovering more advantages of social media, the presence of it in the industry is growing.

One of the main benefits of social media, is that it can be used as a marketing tool to retain and gain new customers. According to a global survey mentioned by Schroeder, “more than three quarters of respondents indicated that they rely more on product and service reviews by other consumers than on direct advertising by companies.” (Schroeder, 2014) Clients are looking to other users for advice and product/service reviews, compared to traditional advertisements paid for and created by the company itself, which can be bias. Because of this trend, “most firms now need to work at building a positive image and active presence online and to interact continuously with their customers and other internet users via social media sites. In many industries, the use of Facebook groups, company blogs and Twitter accounts, among other social media tools, have become an indispensable part of organizational strategies for growth and competitiveness and for managing new types of business risks.” (Schroeder, 2014) This video, based on an award-winning article by Ian P. McCarthy, goes into detail about how to use social media as a marketing tool, and how to do so efficiently. The video guides users on how to functionally use social media. It gives insight into important decisions that need to be made, such as what social media platforms to use, how much freedom users should have on what they post, and privacy guidelines.

Connecting through social media also makes clients and potential clients feel as if they are becoming more personally linked and gaining insight about the company or person they are working with. Ideally, I would like to end up in the finance sector of the business industry, which is mainly serviced based. By creating stronger relationships with clients it will increase their satisfactions of the service being provided. They will feel as if they are not just another account or portfolio being examined, but an actual person who the financial counselor cares about.

Narrowing in on the finance sector of the business industry, social media is being used by investors. Investors are using social media as a new research instrument. Hersch, quotes Remy Domler Morrison, who says, "today's investors are scrutinizing traditional sources with content and commentary they are finding through social networks and are becoming much more critical and conversant when it comes to their investment choices.” (Hersch, 2013) He continues to point out that the use of social media by investors strengthens their relationships by “motivating investors to engage more with their advisors and investment firm representatives, which can lead to more asset gathering opportunities for providers." (Hersch, 2013) We live in an era that is considered to be technology and digital abased and it is imperative that businesses and industries adapt to keep up with the changes.

A video by Radian6, shows how financial service firms can use social media to their advantage by listening to what their customers have to say about their services. Radian6 refers to this as social listening. The video then goes on to explain how their social media platform can be used to monitor competitors. Radain6 is attempting to create a new social media program that is targeted towards specific industries, such as financial services.

Social media is not only useful for consumer to get to know the company, but the other way around as well. Social media gives firms access to “an unprecedented amount of data about individuals which can be used for a range of business purposes including market research, networking and recruitment.” (Schroeder, 2014) When companies have a greater understanding of their target clients, they will be able to tailor their services to better meet their needs and increase overall utility.

Beyond the evident benefits of social media, there are some risks accompanying it. It is crucial that employees using social media understand that, regardless if for professional or personal reasons, they must maintain profiles that portray them in a positive light. Employees, who choose to be present on social media, should “require knowledge and understanding of how to do so responsibly and effectively.” (Schroeder, 2014) Not only can an individual’s reputation, but also the whole company, can be negatively affected by poor decisions made online.

#dms302

The business world is constantly increasing as the industry becomes more globalized. Technology convergence connects our devices, the Internet, and hard drives to all efficiently work with each other. This allows business professionals to be able to access their current work projects, portfolios, client information, preform market research and keep updated with international affairs at any time or place. Technology is used to overcome space and time boundaries. For example, business and financial professionals are able to gain access about the NYSE, while in their office in Texas. They also have the ability to view past performance of stocks for years back in the past. Technology convergence allows employees to access their required content constantly, which is resulting in “convergence of people’s personal and professional lives.” (Briody, 1999) This is important for those working in business fields that can be largely affects by external shocks, which are often unpredictable and can occur at any time. For example, if a major stock market crash happens and a client’s portfolio needs to be examined and protected, the trader can do so from their current location, even their home, and not have to rush to the office and possibly miss their window of opportunity. An IT manager, quoted in Briody’s text, states, “essentially, people are always working now, and the lines between worktime and playtime are blurring.” (Briody, 1999) This idea may not initially sound ideal to a business worker who does not want their whole life to be taken over by their job, it is important to look at the benefits. The boundaries are blurring on both sides, which means not only are people able to work at home, but they have access to personal needs at work. A person can receive updates on their child’s grades or e-mails from their spouse on their work device due to technology convergence and the linking of our technological devices and tools. Furthermore, this allows business professionals to more easily work from their home when a conflict in occurs such as having a sick child that cannot be left alone. Overall, technology convergence is a helpful trend that is emerging in the business world.

Technology convergence also affects the way the businesses operate. Not only does it make it more advantageous for one person to be able to access their information anywhere, but it also allows employees to be able to access their co-workers information that is relevant to them. Instead of having to pester your co-worker to e-mail you or hand you off important information, technology convergence allows you to access this information through tools such as iCloud, Dropbox, GoogleDocs and more. Another benefit of technology convergence is that it increases the efficiency of a business and decreases costs. “A cluster of inter-related technical, organizational, and managerial innovations whose advantages are to be found not only in a new range of products and systems, but most of all in the dynamics of the relative cost structure of all possible inputs to production.” (Australian Law Reform commission, 2012) Technology can replace the unnecessary manpower that is put into such tasks and the saved energy and time can be put toward something more useful that could further benefit the firm.

Technology convergence is also valuable to the clients of business professionals. For example, the clients have the opportunity to pay bills, access their account, and preform their own market research from any location with the use of their various devices including their phones, tablets, computer, and so fourth. Clients will feel more connected and informed about the service being provided to them and this will lead to an increase in customer utility.

On the other hand, when changes to an industry occur, there are often some consequences associated with it. The Australian Government says that technology convergence can be “disruptive, as it challenges established business models, industry structures, organisational frameworks and public policy settings.” (Australian Law Reform Commission, 2012) While this is true, change is something that an industry has to deal with and learn how to adequately cope with to use to their advantage. While the initial shock may be negative, the changes are necessary to keep up with the ever-increasing digital age.

Bibliography

Australian Law Reform Commission. Classification—Content Regulation and Convergent Media (ALRC Report 118). Rep. Australian Government, 01 Mar. 2012. Web. 10 Feb. 2015. <http://www.alrc.gov.au/publications/3-media-convergence-and-transformed-media-environment/media-convergence-and-transform-0>.

Briody, D. (1999). Technology convergence. InfoWorld, 21(47), 14. Retrieved from http://search.proquest.com/docview/194354860?accountid=26503

#technology convergence

PwC is one of the top 4 Accounting and Finance firms and they recognize the importance of convergence in this article.

This PwC text discusses the many ways in which convergence is changes is rapidly changing the traditional business landscape and explains how companies can adapt their strategy and execution to this new world and thus benefit from new markets, new customers, and new business models.

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