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IS for Competitive Advantage

An executive in your company has proposed a new information system that may provide a strategic impact on the business by gathering data on competitors' customers.

Write 4-6 paragraphs that answer the following questions:
1. What ethical problems could this system create?
2. Does it matter whether the customers are individuals or businesses?
3. Does it matter what type of information is being gathered? (i.e., purchase patterns versus contact information).

Solution Preview

Customer information is important, but it is also a slippery slope if not handled appropriately. Using the information of customers of one's competitors is common. Market research always uses the customers currently buying and those potential customers as part of the market research. Often, these customers are those of other companies.

Knowing when to use information and the type of information is important for finding and building sales. However, there are elements in gathering such information that are considered dangerous or unethical. Corporate espionage is illegal and stealing ...

Solution Summary

The ethical problems a system could create is determined. The type of information which is gathered is determined.