Influencing The Effectiveness Of IT Governance

Analysis of the situation – Doing Ethics Technique

Discuss about the Influencing the Effectiveness Of IT Governance.

In today’s competitive business world, organisations generate competitive advantage by relying on the latest technologies in order to perform their operations. Effective use of the latest technologies enables the organisations to improve their existing operations while at the same time provide their customers with high-quality services. The use of ICT technologies in the companies has proliferated in the past few years, and they enable enterprises in improving their customer services and overall efficiency. The primary advantages include reducing overall costs, improvement in efficiency, flexibility in operations, and ubiquitous data (Kritzinger and Von Solms, 2010). However, along with advantages, there are many issues relating to these technologies as well which resulted in negatively affecting the companies. There are many ethical issues which occurred due to digital disruptions. One of the key disadvantages of these technologies is the vulnerability to the cybercrimes. It is easier for cybercriminals to hack into a system of organisations when they rely on technologies to perform their task. There are many other ethical issues relating to the use of modern technologies as well. Organisations are required to comply with these information ethics principles while facing an ethical dilemma. The information ethics provides a relationship between ethical and moral principles along with use, collection, access and maintenance of data (Bulgurcu, Cavusoglu and Benbasat, 2010). The corporations also required implement policies of IT governance to ensure that they are able to avoid related issues effectively. In this report, the case study of Telstra will be evaluated by using ‘doing ethics technique’ or DET in order to analyse the ethical issues in the case. This report will also evaluate the role of IT governance and related issues and what technologies can be used by Telstra to avoid these issues. Furthermore, recommendations will be given in the report for Telstra in order to address the issues faced by the company.

The ‘doing ethics technique’ or DET assists in evaluating care from an ethical perspective. The technique focuses on asking simple questions which assist in evaluating the major ethical issues in a case (Al-Saggaf and Burmeister, 2012). The main focus of this technique is to evaluate the care ethically rather than finding the best solution.

Telstra is the largest telecommunication company in Australia; the company was founded in 1975 and its operations it provides its services in the telecommunication sector. The corporation has an international presence in over 20 countries, and it is the fastest national mobile network in Australia. The company provides over 17.6 million retail mobile services, 5.1 fixed voice services and 3.5 million retail fixed broadband services to its customers in Australia (Telstra, 2018a). In order to provide better services to its customers, the corporation has adopted a digital route. The company relied on digital disruptions in order to maintain its competitive advantage in the Australian telecommunication sector. In 2010, the corporation chanted it conservative engineering culture and adapted a must fasted structure based on digital technologies. The corporation focuses on the interest of its customers based on which it has developed 24/7 Telstra application along with crowdsupport platform.

What’s going on?

After implementation of these technologies, the customer interaction with the company was revolutionised because it provides them the option to resolve their queries at any time while staying at the comfort of their homes (Deloitte, 2018). However, along with advantages, there are a number of issues relating to these technologies as well which negatively affect the customers and the company. Firstly, the main concern regarding the privacy of customers. In crowdsupport infrastructure, the customers can openly interact with others, and they can resolve queries and issues face by others. It raised many privacy and security concerns relating to the people using this platform. Furthermore, there is also the issue of job loss because based on this model the company promotes automation which resulted in job loss. A digital-based infrastructure increases the vulnerability of the company towards cyber-attacks based on which their data could be breached by cybercriminals.

• Telstra has adopted a digital model by developing a 24/7 mobile application and crowdsupport
• These devices assist the customers in resolving their issues quickly, and it improves their customer service experience.
• Along with many advantages, there are various issues relating to the use of crowdsupport platform because it raises various privacy and security concerns.
• While using this platform, the data of customers is at the risk of breaching and cybercriminals can hack into their account to collect their private data.
• This infrastructure also increased the vulnerability of the company against cyber-attacks and the cybercriminals can easily hack into their data to collect private information regarding their customers.
• The company is also pushing automation which resulted in job loss in the company.

Following are different issues which have risen in the case study of Telstra.

• Due to use of a crowdsupport platform, the risk of breach of customer data has increased substantially. It is easier for the cyber criminals to hack into the accounts of members which use the crowdsupport platform and collect their private data.
• While using a crowdsupport platform, the security of the customers is at risk, and they are under the threat of cyber-attacks.
• By using this platform, the company is promoting automation due to which many people losses their jobs.
• The data of the company is stored in the cloud which makes it vulnerable to cyber-attacks.

The main stakeholder is the company itself; it has adopted a crowdsupport platform in order to reduce its operating costs and provide fast services to its customers. In 2010, implementation of this platform was a digital disruption based on which the company was able to reduce its expenses and fulfil the requirements of its customers. However, there are many issues relating to the technology as well (Taylor, 2015). Firstly, the data of the company is stored in the cloud which makes it vulnerable to cyber-attacks. Furthermore, the company is constantly criticised for not taking appropriate actions to protect the privacy of customers who use its crowdsupport platform. The corporation was also criticised because it uses automation while performing its operations which resulted in the loss of jobs of many employees. Moreover, after a period of time, the shareholder value of the company started decreasing along with the profits of the company as the company reported a drop of 37 percent in its profits in 2017.

By using 24/7 mobile application and crowdsupport platform, the customers of Telstra are able to resolve their queries more efficiently. The customers can use the mobile application of the company to ask regarding their queries any time, and they find the solutions for their queries must faster. However, the members face issues regarding data privacy while using the crowdsupport platform than compared to traditional methods. It becomes easier for cybercriminals to hack into the servers of the company and collect the private data of its users (Sharma, 2014). It is easier for the cybercriminals to breach the security of the customers of Telstra. Thus, along with benefits, there are a number of issues faced by the customers which are relating to the breach of privacy of users.

What are the facts?

Due to the adaptation of a digital framework, it has become easier for cybercriminals to hack into the servers of Telstra. The company is the largest telecommunication enterprise in Australia, and it has a large customer base which makes it a primary target for cybercriminals. They can hack into its servers and collect the data regarding its users for blackmailing the company or use the data to gain an unfair advantage (Barwick, 2014).

• Utilitarianism theory (consequence): The key, in this case, is the privacy concern regarding the security of data of users. Although the adaptation of digital framework makes it easier for the customers to resolve their queries, however, it increases the issues regarding their privacy and data breach. This theory judges the morality of a situation based on the consequences of the actions. In this case, the actions taken by Telstra are focused towards improving their customer experience, however, it negatively consequences resulted in a breach of the privacy of customers. Many employees lose their jobs due to this decision as well (Pearce, 2017). Thus, these actions are unethical.
• Deontology theory (duty): In this theory, a situation is judged based on the actions rather than their consequences. The actions of Telstra are focused towards the improvement of their customers’ service experience. Although, it may lead to a breach of their privacy, but the actions of the company are not unethical.
• Contractarianism theory (contract): This theory judges the morality based on the legitimacy of the actions. The actions taken by Telstra are based on digital disruption in order to provide high-quality services to its customers. The company is also taking security measures to protect their privacy. Based on which, the actions of Telstra are ethical.
• Virtue theory (character): This theory judges a situation based on the character and honesty. The decision taken by Telstra is focused towards improving the service experience of customers and fulfilling their needs. The actions of Telstra are honest and focused towards the requirements of customers.
• Although the corporation has taken steps to improve their cybersecurity, however, they are not enough to stop large cyber-attacks. The negative implications of lack of security measures can result in causing significant financial losses to the company, and it could result in a breach of data privacy of customers.

There are different alternative solutions available in this situation which can be taken by the company. In order to address the privacy and security concerns, the company can cancel its digital framework and adopt a traditional method of customer service which is relatively slower option. The company can take precautionary measures in order to improve their cybersecurity infrastructure to protect the data privacy of its customers. The corporation can also spread awareness among its customer bases in order to ensure that they take corrective actions to protect the privacy of their data.

1. The company can cancel its digital disruption model and adopt a traditional method of customer service.
2. The company can increase its investment in the cybersecurity infrastructure in order to ensure that the corporation and its customers’ data is secured from data
3. The corporation can raise awareness regarding the cybersecurity among its customers to ensure that they are aware of the potential risk and they take precautionary actions to protect themselves.

The second option is the best because the corporation must protect the privacy of its users. The corporation understands that there is potential threat in using a digital framework while providing customers’ services, therefore, the company must take precautionary actions to protect its and customers’ data. It would also assist the company in maintaining its competitive advantage in the telecom industry.

The IT governance is referred to a formal framework which assists the corporations by providing them a structure for ensuring that their business objectives support their IT investments. It ensures that effective and efficient use of the IT in the business and it enable the company to achieve its corporate objectives (Huang, Zmud and Price, 2010). The IT governance provides that the process which is required to comply by enterprises for ensuring the effective evaluation, prioritisation, funding of competition, oversees implementation, selection and extract business benefits. The process is considered as a decision making, and oversight process and this process is the responsibility of business management. Effective use of IT governance aligns the IT infrastructure of the company with the business strategy of the company. The issues relating to IT governance include the effective establishment of IT framework, continuous auditing and assurance, IT risk management, privacy and security concerns, cloud computing, sense of teamwork, value delivery through IT and others (Ali and Green, 2012).

In Australia, there are certain principles which are necessary to be followed by companies regarding their IT governance. Following rules should be followed in the case of Telstra which are relating to IT governance in Australia.

• Responsibility: The business manager is responsible for the use and performance of the IT infrastructure and ensuring that the outcomes are positive by use of IT structure. It is a key responsibility that the IT structure should be used in the efficient, effective and acceptable method. In the case of Telstra, the company is responsible for the effectiveness and efficiency of its IT structure, and it is also reasonable for maintaining the privacy of its members (Computer Director, 2008).
• Strategy: While using an IT infrastructure, proper alignment of the IT structure which the corporate objectives are The corporate objective of Telstra is to provide high-quality services to customers and maintaining their security, therefore, the company should invest in improving its cybersecurity infrastructure.
• Acquisition: The decision regarding the investment in the IT structure is focused on the success of the structure, and both internet and external factors should be evaluated by the company while making these decisions. Telstra should carefully evaluate the effectiveness of its IT structure before increasing its investment in the same.
• Performance: The operation and development capacity of the IT system should be in the balance with the organisations capacity to deliver the required service and resources. Telstra should ensure that its IT structure is capable for ensuring the security of its users (Computer Director, 2008).
• Conformance: Both internal and external rules regarding the IT should be communicated with the stakeholders clearly to avoid confusion and ensure their enforcement.
• Human Behaviour: While implementation of an IT structure, attributes and needs of people who are under contract and will be affected by the structure should be taken into consideration.

What are the issues?

Following are different technologies which are used by Telstra in its IT infrastructure.

• The company offers 24/7 customer service facility to its customers by using a mobile application which is available for both Android and iOS devices. Through this application, the members can interact with others on the crowdsupport platform where they can resolve their queries.
• The company uses an outage management system for accurately predicting the size and duration of the outage, calculating costs and raise alarms regarding the same.
• The corporation uses its platform to promote ‘internet of things’ or IoT technology. It enables it to connect different devices and services with each other and these devices can share data with each other to provide effective

• Telstra has one of the best customer service experiences than compared to other telecom corporations because it offers 24/7 services to its customers.
• By implementation of a crowdsupport platform, the company is able to provide high-quality customer service to its customers. Customers can interact with others and resolve their queries.
• The corporation is able to reduce its operating costs by using these technologies which assist in increasing its profitability (Gregg, 2016).
• The corporation is able to reach a wider audience through its crowdsupport structure because its customer services are not restricted based on the area in which the call centre is established.
• Due to use of digital technology, the company is able to improve the efficiency of its operations which resulted in increasing the effectiveness of its operations.

The corporation has established Security Operations Centre (SOC) which focuses on managing the security of the company and its customers. The corporation has made multimillion-dollar investment in establishing SOC to build a T4 facility which protects its data from cyber breaches (Telstra, 2018b). The customer portal of the company is also completely transparent, and they can easily check the security environment of the company. The company also keep its people and premises safe from unauthorised access in order to ensure that its data is secured. The company continuously monitor its IT infrastructure to ensure that it is protected against cybercriminals (Telstra, 2018c).

Following recommendations can assist the company in addressing its IT issuers and improving its overall security.

1. The company should increase the budget of its IT structure in order to ensure that it uses world-class cybersecurity infrastructure for protecting its data and customer privacy from cybercriminals.
2. The company should use encryption to protect its data from a cyber-breach. By using encryption, the company can convert its data into secret codes which can only be accessed by the person who has the key to decrypt such data. It will protect the data of company during transmission and ensure the privacy of customers.
3. The company should increase the awareness among its customers that use its crowdsupport It should encourage them to use strong passwords and other security features such as two-step verification to ensure that they are able to protect their data.

Conclusion

In conclusion, Telstra is able to gain and maintain a competitive advantage in the telecommunication industry by providing high-quality services to its customers. The company provides such services by using its 24/7 mobile application and crowdsupport infrastructure. In order to understand the ethical issues relating to the company, doing ethics technique is used in the report. Based on such framework, different ethical issues are identified in the report such as privacy and security concerns of customers, the vulnerability of data breach, the risk of cyber-attacks, loss of jobs due to automation, and others. The best solution is that the company should invest in improving its security in order to ensure that the data of the company and its customers are safe. Different IT governance factors which are necessary to be followed by the corporation are included in the report, and the technologies which are used by the company are provided as well. The company uses these technologies to maintain its competitive advantage in the industry, and it focuses on improving the security and data control. Various recommendations are given to the company for improving its security such as the use of data encryption, increase awareness among members, and investment in top-notch cybersecurity infrastructure. Based on these recommendations, the company could improve the privacy of its customers and data and sustains its competitive advantage in the industry.

References

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Al-Saggaf, Y. and Burmeister, O.K. (2012) Improving skill development: an exploratory study comparing a philosophical and an applied ethical analysis technique. Computer Science Education, 22(3), pp.237-255.

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Bulgurcu, B., Cavusoglu, H. and Benbasat, I. (2010) Information security policy compliance: an empirical study of rationality-based beliefs and information security awareness. MIS quarterly, 34(3), pp.523-548.

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Huang, R., Zmud, R.W. and Price, R.L. (2010) Influencing the effectiveness of IT governance practices through steering committees and communication policies. European Journal of Information Systems, 19(3), pp.288-302.

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Pearce, R. (2017) Updated: Telstra prepares to slash 1400 jobs. [Online] Computer World. Available at: https://www.computerworld.com.au/article/620659/telstra-prepares-slash-1400-jobs/ [Accessed on 31^st May 2018].

Sharma, M. (2014) Telstra breaches privacy of thousands of customers. [Online] The Sydney Morning Herald. Available at: https://www.smh.com.au/technology/telstra-breaches-privacy-of-thousands-of-customers-20140311-hvh92.html [Accessed on 31^st May 2018].

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