Chapter 4: Information, Control, and Privacy
Introduction to Resources
Organizations rely on resources to function and grow. These resources fall into two main categories: physical resources
and conceptual resources.
Physical Resources – These are tangible assets such as buildings, equipment, land, and raw materials. They go through
acquisition, assembly, and maintenance to ensure efficiency and longevity. A manager is responsible for maximizing
their use, planning spaces, and scheduling maintenance to prevent obsolescence.
Conceptual Resources – These are intangible but valuable assets, such as money, knowledge, skills, and experience.
Unlike physical resources, their worth comes from what they represent rather than their material form. For example,
employees differ in value based on expertise, making human resources a key conceptual resource.
Interaction Between Resources – Physical and conceptual resources work together. For example, a computer (physical
resource) holds important data (conceptual resource), making the data more valuable than the device itself. Similarly, a
smartphone (physical resource) stores contacts, photos, and videos (conceptual resources), emphasizing the
importance of protecting data through security measures.
Information as a Resource
Information is processed data that holds additional value beyond raw facts. Unlike other organizational resources,
information has unique characteristics:
Expandable – More information can be added without reducing its integrity. For example, an HR department
benefits from a full résumé rather than just basic details.
Compressible – Information can be summarized while retaining its value, such as news headlines or research
abstracts.
Transportable – Digital information can be shared easily through email, social media, flash drives, or online
platforms.
Diffusive – Like rumors, information spreads quickly, whether true or false.
Sharable – Once shared, control over information is lost, similar to how KFC keeps parts of its recipe secret
while revealing some details.
Information as an Asset
Information is managed similarly to physical resources. It follows a life cycle, from data collection to processing and use.
Examples include weather forecasting (using past data to predict future conditions) and student academic ranking
(calculating GPAs to determine honors).
Value and Cost of Information
Information varies in grades, types, and prices. Software, for instance, offers free trials with limited features, while full
versions require payment for expanded functionality. The cost of information can also be controlled through economic
strategies, such as DVD region coding to prevent price disparities across countries.
Managing information is as crucial as managing physical resources. Organizations must handle information wisely, as it
impacts decision-making, security, and efficiency in the same way as human resources, finances, and equipment.
Valuable Information
Valuable information possesses key characteristics that determine its usefulness in decision-making and research.
According to Stair & Reynolds (2016), information is considered valuable if it meets the following criteria:
Accurate – Free from errors. Reliable sources such as technical or academic websites are preferred over informal ones
like blogs or forums.
Complete – Contains all necessary facts, especially crucial in fields like medicine, where missing details can lead to
serious consequences.
Economical – The cost of obtaining the information should be justified by its value. The internet has made access to
information cheaper and faster.
Reliable – Can be trusted, depending on the source and method of data collection. For example, pirated content from
torrent sites may not be reliable.
Flexible – Can be used for multiple purposes. A school ID, for instance, can serve as an identification card, transaction
tool, and even proof for a student driver's permit.
Relevant – Must be directly related to the topic or decision at hand. Researching "parts of a computer" should not
include information about human anatomy.
Simple – Should be clear and not overly complex. Overcomplicated information may lead to confusion and inaccuracies.
Timely – Must be available when needed, such as weather reports, stock market trends, or real-time traffic updates.
Verifiable – Should have references or citations to check for correctness and authenticity.
Accessible – Should be available to authorized users in the right format and at the right time. Mobile payment systems
(e.g., Samsung Pay, Apple Pay) demonstrate accessibility by allowing quick and secure transactions.
Secure – Must be protected from unauthorized access. Security measures such as biometric authentication (fingerprint
scans) ensure only authorized users can access sensitive information.
Valuable information is accurate, relevant, timely, and secure, among other factors. Ensuring these qualities helps
individuals and organizations make informed decisions effectively.
Value of Information
Information is a crucial resource in businesses, enabling them to stay competitive, automate processes, and make
informed decisions. Valuable information is often referred to as knowledge because it helps managers strategize
effectively. While some information is free (e.g., weather forecasts, stock indices), others come at a cost (e.g., cable TV
subscriptions, premium data services).
According to Leickly (2004), information has four key characteristics:
Zero Marginal Cost – While the initial production of information (such as a movie or software) can be expensive,
reproducing it costs very little. For example, a Hollywood film may cost millions to produce, but a DVD copy is sold at a
fraction of that cost.
Non-Rivalrous – Multiple consumers can use the same piece of information simultaneously without depletion. Digital
formats of movies, books, and music allow unlimited people to access them at once.
Non-Exclusive – Once information is shared, it is difficult to prevent others from using it. Emails, text messages, and
social media posts can be forwarded or shared without the sender’s knowledge.
No Transparency – Understanding the value of information requires investment in learning. For instance, programmers
must undergo training to master new technologies, which requires time, money, and effort.
The value of information depends on its cost, accessibility, and exclusivity. While businesses rely on information for
productivity and competitiveness, individuals also pay for valuable knowledge in various ways, such as training,
subscriptions, or digital content.
Information Economics
In economics, information is valued differently than physical goods. While traditional goods are judged based on direct
experience (e.g., trying on clothes or tasting food samples), information is trickier to evaluate. Giving away too much
can result in lost sales, so businesses use various strategies to convince customers to pay for information-based
products before experiencing them.
Key Strategies in the Information Economy:
Browsing Previews – Businesses offer small previews to entice customers. Examples include movie trailers,
short song clips on iTunes, and free chapters of e-books. These help consumers make informed decisions while
still keeping the main content behind a paywall.
Branding – Well-established brands like Apple and Microsoft have built strong customer trust, making it easier
for them to sell new products. For example, when Apple launched the iPhone 7 in 2016, pre-orders increased
by 375% compared to the iPhone 6 launch.
Reputation – The credibility of a creator or company plays a major role in consumer decisions. In movies,
Michael Bay’s reputation as a blockbuster filmmaker attracts audiences, ensuring his films are box office hits.
Similarly, trusted companies benefit from positive reputations.
Virtual Goods & Digital Economy
In the digital world, experience goods do not have to be physical.
Mobile games sell virtual items, such as character upgrades and level boosts, which players sometimes purchase with
real money.
Businesses like Google and Amazon provide value by simplifying decision-making. Google delivers search results
relevant to users' queries, and Amazon suggests products based on customer behavior.
Information economics revolves around balancing access and exclusivity—giving enough for customers to trust the
product while ensuring they still need to pay for full access. Businesses use branding, reputation, and previews to
influence purchasing decisions in an increasingly digital and information-driven world.
Information Overload
The rapid growth of digital technology and the internet has led to an overwhelming amount of available information.
With global internet traffic reaching 1.1 zettabytes in 2016 and expected to double by 2019, the sheer volume of data is
immense. One zettabyte is equivalent to one billion terabytes, highlighting the massive scale of digital information
being produced and consumed.
Key Reasons for Information Overload:
Easy Duplication & Transmission – A single image can be posted on Facebook, Instagram, and Twitter, increasing the
amount of redundant data.
Increase in Communication Methods – Messages are no longer limited to SMS or emails. Apps like Messenger and
Viber enable multiple forms of communication, adding to the data flow.
Growth of Digital Archives – Libraries and documents are shifting from physical copies to cloud storage, making vast
amounts of historical information instantly accessible.
Statistics on Internet & Mobile Usage (2018 Report by We Are Social & Hootsuite):
Over 50% of the world's population now uses the internet.
99% of Qatar & UAE’s populations are online.
Filipinos spend the most time on social media, averaging 4 hours per day.
More than 2 billion people use Facebook.
Over 60% of mobile connections worldwide are broadband.
More than 20% of the world's population shopped online in the past 30 days.
The Case of the Philippines:
Despite having one of the slowest fixed internet speeds (4.2 Mbps vs. the global average of 6.3 Mbps), the Philippines
has one of the fastest mobile internet speeds (13.9 Mbps).
This explains the high social media usage in the country, where Filipinos spend the most time online compared to other
nations.
The Challenge of Information Overload:
With millions of users producing and consuming content daily, people struggle to process large amounts of data
efficiently. This leads to decision fatigue, difficulty in verifying information, and a greater reliance on social media
algorithms to filter content.
As internet and mobile usage continue to rise, information overload becomes a growing challenge. While digital
connectivity provides convenience, managing and filtering information effectively is crucial to prevent cognitive
overload and ensure meaningful engagement with digital content.
Mobile Social Media and Mobile Commerce
The rise of mobile devices has drastically transformed how people interact with the world, both socially and
commercially. These changes have been propelled by the availability of mobile internet, which allows users to connect
to services and make transactions anywhere, anytime, via smartphones, tablets, and other mobile devices.
Mobile Social Media
Mobile social media refers to the use of social media platforms (such as Facebook, Instagram, Twitter, and Snapchat)
through mobile devices. According to a 2016 ComScore study, nearly 80% of social media users access their accounts
via mobile phones.
This trend has led to a significant shift in internet usage behavior, with mobile platforms surpassing desktop computers
in terms of digital media time spent. Mobile apps alone now account for 54% of digital media usage, and mobile activity
overall represents 62% of digital media time. This growth highlights the increasing dominance of mobile devices for
accessing social media and other online content.
M-Commerce (Mobile Commerce)
M-commerce refers to mobile commerce, which enables users to conduct commercial transactions directly via mobile
devices. The term was first introduced in 1997 and has since revolutionized the way businesses and consumers interact.
With the speed and security of modern mobile networks, m-commerce has become a significant part of the digital
economy.
Industries Embracing M-Commerce
Several industries have quickly adopted mobile commerce as a key component of their business strategies:
Financial Services
Mobile banking apps allow users to perform a wide range of financial activities such as money transfers, bill
payments, and managing stock portfolios directly from their phones.
Mobile Ticketing
Mobile ticketing has become common in industries like airlines, where customers can book flights online and
receive their tickets via email or mobile app. These digital tickets are accepted at check-in, even in electronic
form.
Service and Retail
The shift from desktop e-commerce to mobile-based shopping has been widespread, with users purchasing
physical products, music, movies, and images. Additionally, mobile apps often include in-app purchases, a
common feature in mobile games where users buy virtual goods to enhance their experience or progress in
the game.
Information Services
Mobile devices are also key tools for delivering various types of information. For instance, apps like Waze
provide real-time traffic updates based on the user’s location. Similarly, Google Maps uses geo-location
technology to offer route suggestions based on real-time data, while news, weather, and sports updates are
frequently delivered through mobile apps.
The advent of mobile social media and mobile commerce has significantly reshaped the digital landscape, making it
more personal, accessible, and convenient. With the continuous advancement in mobile technology, both social
interactions and commercial transactions will continue to evolve, providing more seamless and efficient ways for users
to connect, shop, and engage with the world around them.
Information Control
With so much information around, how do you make sure they are safe from illegal activities? A large
requirement for information control comes from commerce, industry, and copyright owners in general.
Information control comes in the form of keeping secrets inside a business or selling IPR (Intellectual Property
Rights) to those prepared to purchase it.
Information control is about allowing those who have appropriate authority access to and use of
information on the basis of the authority that they hold. But why is there a need for control in the first place? Earlier
in this chapter, the concept of information being non-rivalrous and non-exclusive has been discussed. An example
is movies being sold in different formats-DVDs, MP4, etc. If that is the case, how can you make sure that the said
movie will not be distributed illegally?
Software Piracy
Software piracy refers to the illegal copying, distribution, or use of software without proper authorization or licensing.
The Software Alliance (2018) defines software piracy as the "unauthorized copying or distribution of copyrighted
software," which can be done through various methods such as copying, downloading, sharing, selling, or installing
multiple copies of software on personal or work computers.
Common Forms of Software Piracy
Distributing software or mobile apps in violation of licensing agreements.
Installing a single software copy on multiple devices without permission.
Making and sharing copies of installation CDs.
Sharing login credentials used for accessing web-based software ("Software as a Service").
One may argue that purchasing software (or a DVD, for example) grants the right to use it however they wish, but this is
a misunderstanding. The price paid for software or a movie typically covers only the license to use it personally and
does not grant the right to distribute or copy it.
Challenges in Controlling Information
The ability to control the dissemination of information is increasingly difficult due to several factors identified by Adam
Thierer (2011), which complicate software piracy and broader information control:
Convergence
Technological advances and the rise of social media have enabled media content, like music and movies, to be
distributed across multiple platforms and devices. Previously, consumers bought physical CDs or DVDs, but
now they access content through apps and digital services like Spotify. Similarly, apps like VideoFX allow users
to create and share videos, which may involve copyrighted music. This shift creates complications for
controlling and protecting intellectual property.
Scale
The rapid spread of media and content online has made it possible for information to be shared almost
instantly. Fans who used to wait days or weeks for translated subtitles for anime or dramas can now find them
within hours, thanks to faster internet and services like Google Translate. This ability to disseminate content
quickly and widely increases the risk of copyright infringement and complicates efforts to regulate what is
being shared.
Volume
The sheer volume of media content available online today is staggering. News outlets now offer both print and
digital content, accessible through websites, mobile apps, and social media. This increase in the amount of
content being produced and shared makes it harder for regulatory bodies to control the flow of information
and prevent piracy.
Unprecedented Individual Empowerment
Social media platforms like Facebook, Twitter, and Instagram have empowered individuals to share their
thoughts, creations, and even pirated content. Blogs and personal websites have become major platforms for
personal expression, and managing what individuals post on these platforms is difficult unless the content is
flagged and reported.
Combating Software Piracy
Organizations such as The Software Alliance, along with major software companies like Microsoft and IBM, as well as
global governments, are working to address software piracy. One of the solutions they advocate is the recognition of
intellectual property (IP) rights, similar to physical property rights, which helps companies and individuals secure
exclusive control over their software and content.
While the digital age offers unprecedented access to information and content, it also brings challenges in controlling
and protecting intellectual property. Software piracy, media distribution, and user-generated content have complicated
efforts to enforce legal protections. As technology evolves, solutions to combat piracy and safeguard creators' rights
must adapt to these new challenges.
Intellectual Property (IP)
Intellectual Property (IP) refers to creations of the human mind that have been granted exclusive rights for their
creators. These intangible assets include inventions, artistic works, symbols, designs, and more. Here’s an overview of
the different forms of intellectual property and how they are protected:
Types of Intellectual Property
Copyright and Related Rights
Copyright protects original works such as books, music, films, and software. It grants creators the exclusive
right to reproduce, distribute, and adapt their works. For example, Taylor Swift’s album or J.K. Rowling’s Harry
Potter books are protected by copyright. In the Philippines, the National Library and Supreme Court Library
store copyrighted materials for record-keeping.
Trademarks and Service Marks
A trademark is a unique sign used to identify products or services. For example, the "Nike Swoosh" or the
"McDonald’s golden arches" are trademarks that distinguish their respective companies. These marks may also
include geographical indications, indicating that products come from specific regions (e.g., Pampanga's Best).
Geographic Indications
These indicate that a product comes from a specific location and has qualities unique to that place, such as
"Champagne" or "Parmigiano Reggiano."
Industrial Design
Protection is given to the aesthetic aspect of an item (like a product's design), rather than its function. This
includes items like the shape of a Coca-Cola bottle.
Patents
A patent grants exclusive rights to an inventor for a limited period in exchange for public disclosure of an
invention. This allows the inventor to prevent others from making, using, or selling the invention. For instance,
Apple's iPod design is patented.
Layout Designs (Topographies) of Integrated Circuits (ICs)
These refer to the design of integrated circuits that can be patented to prevent unauthorized copying.
Protection of Undisclosed Information (Trade Secrets)
This involves protecting valuable business information, such as company formulas, methods, or algorithms,
from being disclosed to competitors. Famous examples of trade secrets include Coca-Cola’s formula and KFC's
recipe.
Digital Rights Management (DRM)
With the rise of the digital age, controlling the distribution of digital content has become a challenge. DRM refers to the
techniques used to prevent unauthorized copying or distribution of digital content. Some common methods include:
Encryption: Protects data so that only authorized parties can access it (e.g., encrypted DVDs).
Serial Keys: Used to activate software and ensure it’s legitimate (e.g., Microsoft Windows product keys).
Scrambling: Alters data to make unauthorized access difficult (e.g., CSS for DVDs).
Tag Embedding: Embeds metadata into content to identify its owner and track unauthorized usage.
Challenges in Information Control
The proliferation of peer-to-peer (P2P) file sharing and torrent websites makes controlling digital content more difficult.
For example, pirated music, software, or movies can be easily shared without the creators receiving due compensation,
and users may be exposed to risks like malware.
Legal Protections in the Philippines
The Intellectual Property Code of the Philippines (R.A. 8293) and its revised version (R.A. 10372) are the key laws
protecting intellectual property. The Intellectual Property Office of the Philippines (IP Philippines) is tasked with
implementing these laws, including the registration of copyrights, patents, and trademarks.
IP is vital for fostering creativity and innovation, and the protection of these rights is essential for creators to earn from
their works and maintain control over their creations. However, with technological advancements and the ease of
information dissemination, controlling and protecting IP has become more complex.
Information Privacy
The concept of information privacy revolves around the protection of personal and sensitive data from unauthorized
access, use, or disclosure. The natural state of data, whether stored or transmitted, is susceptible to being copied,
logged, or shared. This is why constant vigilance and measures are necessary to safeguard privacy.
While social media platforms like Facebook and Twitter provide people with an outlet to share personal opinions and
information, the line between private and public information can blur. Some individuals may share private information
without fully understanding the potential consequences. Data privacy, however, involves protecting personal
information to prevent its misuse or exposure without consent.
A practical example of this can be found in the Yahoo privacy policy. It details how Yahoo collects information from its
users, including IP addresses, cookies, and mobile device identifiers, all of which can be used to track users' online
activities and physical locations. Similarly, Facebook has faced scrutiny for its privacy practices, especially with quizzes
and apps that collect extensive personal data. While Facebook claims to protect users' privacy, apps like the Word
Cloud quiz have been known to access everything in a user's profile, including sensitive data such as names, photos, and
even personal relationships.
The Data Privacy Act of 2012 (Republic Act No. 10173) in the Philippines is a response to growing concerns about the
protection of citizens' data. The law defines sensitive personal information, such as racial or ethnic origin, health data,
and government-issued identifiers, and outlines the conditions under which such data can be processed. The act
emphasizes the need for consent, security, and strict regulation of how personal data is handled.
However, data breaches remain a serious threat. One significant example was the Comelec hack in 2016, where
sensitive personal information, including fingerprints and passport numbers, was leaked. This breach became one of
the largest government-related data breaches, underscoring the importance of strong data protection practices.
Data Privacy: The protection of personal data from unauthorized access and misuse is a fundamental right.
Privacy Policies: Websites like Yahoo and Facebook collect vast amounts of data, and users must understand what they
consent to when using these services.
Risks: Sharing private information on public platforms can expose users to identity theft and misuse of personal data.
Legal Protection: The Data Privacy Act of 2012 safeguards the privacy of individuals in the Philippines and holds
organizations accountable for mishandling sensitive information.
Breaches: Data breaches, such as the Comelec hack, highlight the critical need for robust data protection strategies.
Understanding data privacy involves not only protecting one's personal information but also being aware of how and
when to share it online. Security measures and privacy laws, like the Data Privacy Act, are designed to provide
individuals with the tools and legal recourse to safeguard their privacy.