FACULTY OF INFORMATION MANAGEMENT

MARA UNIVERSITY OF TECHNOLOGY (UITM)

CAMPUS PUNCAK PERDANA, SELANGOR

BACHELOR OF INFORMATION SCIENCE (HONS) INFORMATION SYSTEM MANAGEMENT (IM245)

LEGAL AND ETHICAL ASPECTS OF INFORMATION SYSTEMS

IMS 657

GROUP ASSIGNMENT

BREACHING INTELLECTUAL CAPITAL: CRITICAL REFLECTIONS ON BIG DATA SECURITY

PREPARED BY:

MUHAMMAD NUR LUQMAN HAKIMIE (2016201474)

NUR ADILA BT CHEK DIN (2016884566)

NURFARAH AMIRAH BT BURHANUDDIN (2016203492)

AFIF ABD AZIZ (2015126899)

PREPARED FOR:

FADHILNOR RAHMAD

GROUP:

NIMBF10A

DATE OF SUBMISSION:

17 JULY 2020
Academic Writing

PREPARED BY:

MUHAMMAD NUR LUQMAN HAKIMIE (2016201474)

NUR ADILA BT CHEK DIN (2016884566)

NURFARAH AMIRAH BT BURHANUDDIN (2016203492)

AFIF ABD AZIZ (2015126899)

PREPARED FOR:

FADHILNOR RAHMAD
 Acknowledgement

Alhamdulillah , thanks to Allah for helping us finishing this assignment Academic Writing. It is our
proud privilege to express our sincere, heartfelt and humble gratitude to our Legal And Ethical
Aspects Of Information Systems Sir Fadhilnor Rahmad, for his invaluable guidance, advice as well
as painstaking effort. In fact, words fail to express our sincere thanks to him.
Besides that, thanks to both of us for giving full cooperation and commitment during the period
of finishing this personal papers. We have tried our best to finished this assignment even though
during pandemic Covid-19 and Movement Order Control. Hopefully all the content inside this
assignment relevant and useful. Back home, our parents have always been source of strength.
With their ever inspiring and cooperative attitude, we could tread the path smoothly. All cannot
be mentioned but will always be remembered.

“Thank you so much for everything”

 TABLE OF CONTENT

Title Pages
Introduction 1

Issue 1

Content 1

Method 2

Findings 3

Recommendation 7

Conclusion 7

Reference 9
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“Breaching intellectual capital: critical reflections on Big Data security”

Introduction

Big data basically is the huge volume of data that cannot be stored using traditional approaches
with given time frame. There are a lot of misconception while referring on the big data. We usually use
big data that refer to concept the data being used. It is not referring to a data that gigabyte, terabyte
Exabyte, just name a few. A small data also can be named as big data depending on the use of that data.
For an instance, a hundred megabyte of data want to transfer using email is not able to do so as the email
not support the attachment of the size. This data is can referred to a big data. It is also a sample of ten
terabyte of images that need to ben enhance within the time frame given. It gives a traditional system to
perform the task, it not be completed with the given timeframe as the traditional system cannot
completed the task. So that the image of ten terabytes can be referred as a big data.

Issue
Breaching intellectual capital: critical reflections on Big Data security

Content

Many large traditional organizations such as telco and financial services are expanding their usage data
analytics to safe cost and to increase revenues. There was about 26 billion of fraud in global networks
today. They collecting data from millions of customers as their strategies. Big data is changing the game
as it values of data is increasing too sensitive on how it stored and handle it in secure and barrier of way
to we use the data and approach the security and hope the new business modal.

The security environment changes with big data. If we look the traditional database such as oracle, it
would be very specific in how to deploy and it could be very careful in how to protecting those servers.
With big data we seeing customers to deploy on thousands of servers that make the structure much larger
mare more difficult to protect. The other problem that we have seen, it only gets value by letting many
endless have accessing to that data. What we are seeing customers do is from moving from infrastructure
focus protection to really being data centric. Customer are looking field level of encryption, tokenization
and anonymization technologies to protect data element. So the majority data processing can happen on
the protected data itself and looking that having the proper authentication and authorization to the
application to other application of users who want to identify and protect that data for business purposes.

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Big data is rapidly moving from lab to live environment. Customers starts getting a lot of business value
from big data environment at and big data strategy has to be part of the digital strategy of any of the
organizations. A lot of cloud adoption when it comes to big data. We work with a large trouble
technological company and their loading the billions of problem records into their environment that
hosted in the cloud and open their travel records to organization that tall gated market campaign to their
consumers. Their using the flexibility of cloud that cause a huge privacy issues and security issues too.

Increase security and data governance in big data environment. In the past customers would have no
issues put a lot of sensitives data, log files, email record database dump for analysis. For now, because of
regulations like PCI for protecting credit card data, it will be tightening of security and data governance
around that.

Method
The study reviews academic literature, professional documents and public information to provide insights,
critique and projections for IC and Big Data research and practice.

Findings
Big data and intellectual capital
IC is a well-established and thriving topic of study, but it is constantly evolving (Guthrie et al . , 2012). As
outlined by Dumay and Garanina (2013, p. 169), IC has been characterized in a variety of ways and has
undergone a continuous evolution over IC research 's transformation stages. Dumay (2016) has recently
adapted a seminal definition of IC to underline its role in value creation. He describes IC as: The sum of all
that everybody in a firm knows gives it a competitive advantage. Intellectual capital is content of the mind,
intelligence, experience, intellectual property, information which can be used to generate value (Dumay,
2016, p. 169). Since value creation is embedded in the fourth stage of IC research, IC management
research needs to shift attention from the organization to its broader ecosystem where knowledge and
value are created (Dumay, 2013; Dumay and Garanina, 2013, p. 21). In addition to its external impacts,
the relationship between an entity and its environment is bidirectional, encompassing how value is
generated by and through the entire ecosystem.

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Big Data presently represents a megatrend for organizations within this ecosystem. In exploring the nexus
between Big Data and IC, Secundo et al . ( 2017) argue that "a Big Data perspective validates the need to
transfer the research focus of IC from organizations to ecosystems and to look at the development and
management of intangible assets" because "Big Data that originate either within organizations or from
wider ecosystems" (Secundo et al . , 2017, p. 238). Big Data 's origin is neither internal to a particular
organization, nor restricted to one or a small number of companies. External factors characterizing the
current data management scenario are volume, velocity and variety. Big Data is the product of a large
variety of Big Data architecture components and the amount of data available is the consequence of the
current social , economic, and technical climate. Such data include not only social media data, Internet of
Things data, smartphone data and sensor data, but also the technical infrastructure that stores and
manages them, such as cloud computing and high-performance architectures. Big Data is the product of
the systemic interaction of factors that influence organizational environments and, in effect, help shape
them.

The use of Big Data also impacts companies and processes within them. McKinsey Global Institute
research (2011, p. 2) indicates that Big Data is a catalyst of "innovation , efficiency, and growth" and "new
competitive and value-capture modes." The practical advantages of Big Data include more data access,
greater testing and segmentation for personalized behavior, support for human decision making by
automated algorithms, and the development and creativity of new business models (McKinsey Global
Institute, 2011, p. 5). According to this view, we argue that Big Data will boost IC management with respect
to resource groups at the IC (Petty and Guthrie, 2000, p. 166):
● Human capital, for example, by improving the know-how and innovation;
● Relational capital, resulting from strengthened customer relations;
● Structural wealth, including improvements in processes of management

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The challenge of transforming intellectual capital and human capital

A major non-technical challenge for Big Data is the human element. Alharthi et al . ( 2017) suggest that
there are significant organizational and human obstacles for big data projects, in addition to the technical
challenges. Those include the lack of a good corporate culture, and the need to build Big Data expertise
on the human side. Big Data's key challenge is to "help human analysts and managers in making quicker
decisions" based on accurate and valued knowledge, and this implies the need to build technologies that
can improve data-user interaction (Wang et al . , 2016, p. 760) Accordingly, this illustrates the need to
strengthen the interaction between analytics and human cognition by resolving the "visualization"
problem, that is, the ability to reflect information and promote human comprehension (Assunção et al.,
2015, p. 10; Yaqoob et al . , 2016, p. 1244). Therefore, given its technical origins, Big Data emphasizes the
importance of the human dimension, which, if not treated correctly, can also be its doom.

Academic research recognizes Big Data and analytics as a means to enable knowledge management and
knowledge creation for strategic decision making (Intezari and Gressel, 2017; Uden and He, 2017). Thus it
exploits the intangible assets of an organization (Rothberg and Erickson, 2017). Such pools of knowledge
extend benefits to applications of machine learning and artificial intelligence that provide pattern analysis
and predictions to assist timely, data-driven decisions (Tian, 2017). Wang et al . ( 2016, p. 757) stress that
the use of social media data, Researchers and managers can draw information from the views of
consumers to understand the transformation of the market and develop their business strategies;
agencies can recognize the characteristics and trends of crimes and offenders from environmental and
situational factors to help law enforcement; service providers can analyze social media data to allow
better consumer experience and service. Big Data is opening up new avenues for all forms of businesses
to discover and produce information with impacts on operation, market and competitiveness.
Nonetheless, these advantages depend largely on the capacity of an entity to exploit the information of
that data, and this is a human intelligence privilege.

The challenge of big data security

Considering the advantages of Big Data are not solely based on technological factors, there is a compelling
call to tackle the non-technical obstacles that hinder Big Data from generating value (Assunção et al.,
2015). One of those challenges is maintaining privacy and protecting data. The National Academy of
Engineering describes the protection of cyberspace as one of Big Data 's 14 "major challenges" and
classifies the need to "enhance privacy and security" among the most impacting challenges (Tien, 2013,

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p. 140). The 2017 Global Risks Report shows "growing cyber dependency" as one of five global patterns
and sources of risk, due to "increasing digital interconnection of individuals, items, and organizations"
(World Economic Forum, 2017, p. 11, 63). In an age in which digital data is generated by everyone,
wherever mobile devices, digital services and web applications are used, social, financial and geopolitical
cyber threats are at the forefront.

Baumgarten et al. (2013, p. 6) argues that 'data generated from everything will continue to produce new
value and knowledge sources.' This also poses questions, however, which put individual privacy issues at
the forefront. As explained by Michael and Miller (2013, p. 23), we are constantly "leaving behind digital
footprints that, when combined, may represent specific aspects of ourselves that would otherwise go
unnoticed, similar to digital DNA." Thus, despite arguing that the key benefits of Big Data are quantity and
variety, they are also the key source of concern regarding privacy and severe limitations for organisations
in the collection and processing of personal data.

Implications for intellectual capital management: a call for a human-oriented movement

While research attention has focused primarily on the technological aspects of Big Data, over time, Big
Data reveals the significance of its human and social implications. Big Data, as claimed, reshapes the
Internet of organizations. This implies the need to connect Big Data technologies and align them with
human capital. The compelling need to plan companies for the Big Data age is pushing them to rethink
and reshape their human resources (Baumgarten et al . , 2013). Although Big Data's technical
infrastructure is important for collecting, storing and analyzing data, the human element is crucial for
turning data into information and then gaining organizational wisdom.

Big Data-driven decisions can be improved if organizations can combine their internal processes and
resources with technological advances in Big Data. Profiting from Big Data needs a "fresh culture of
decision-making," which presents the challenges of developing an effective leadership team, a fresh
organizational culture and new rules, expertise and skills (McAfee and Brynjolfsson, 2012, pp. 65-67). Such
issues often include a reflection on the shifts in teleo-affective systems – the human and systemic capital
transitions.

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Social and ethical implications of big data: the emergence of a new corporate accountability
The digital age is changing modern society, and Big Data presents new societal and ethical Critical
reflections on Big Data security challenges. Privacy issues are one of the challenges that involve people
and their life in society. Privacy is an ancient issue with little agreement as to its definition (Moore, 2013).
Yet, there is widespread consensus on the privacy concerns arising from Big Data.

Boyd and Crawford (2012, p. 662) provide a critical "Big Data" analysis of the "political, technical, and
academic trend" The authors argue that with the rise of Big Data as a "socio-technical phenomenon" its
assumptions and biases need to be critically questioned. While they agree that very little is known about
Big Data 's ethical consequences, they question whether Big Data would "transform into a new wave of
intrusions into privacy and intrusive marketing" (Boyd and Crawford, 2012, p. 662). Claims that it is ethical
to use publicly available data are also questionable. Using data needs a sense of transparency that
transcends the limits of privacy (Boyd and Crawford, 2012), and while Big Data has raised questions about
the privacy of individuals, it means reflection on the responsibility of organizations and researchers when
using data, even when it is accessible to the public.

Implications for accounting research agenda

The accounting discipline has close ties with big data, stemming from its traditional purpose of producing,
analyzing and using data for internal and external purposes. As such, accounting is entering a possible
new complexity level in terms of maintaining competitive advantage and balancing diverse stakeholder
interests. Although the notion of Big Data is gaining traction in accounting research (with a dedicated
special issue of Accounting Horizons, 2015, Vol. 29 as an example), relatively little is understood about
data protection in accounting management.

Some aspects of Big Data use, analytics, storage, costs and type were considered, and rightly so, possible
challenges for the auditing profession (Alles, 2015; Cao et al . , 2015; Krahel and Titera, 2015; Yoon et al.,
2015). The accounting profession and the evolving behavioral problems related to audit judgment and
decision-making were also studied (Vasarhelyi et al., 2015; Warren et al., 2015). Further exploration of
the broader implications of Big Data for stakeholders has been, however, so far overlooked. In addition,
as Big Data forms the future of accounting and corporate reporting, data protection and cyber risks can
be examined fruitfully as significant investor factors decision making.

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Recommendation
First, organisations need to reshape their IC by changing their relational, structural and human capitals to
capture value from data. In managing IC, human capital needs to change to unlock value from Big Data
(Baumgarten et al., 2013) since it is human capital that provides the valuable insights and knowledge
extracted from data. Similarly, data security challenges also reveal the importance of the human factor in
protecting data and establishing effective security management systems. Accordingly, IC management
needs to develop human and structural capital to face cyberthreats and reduce vulnerabilities in data
security. Therefore, despite the call for data-centric organisations to produce data-driven knowledge, the
Big Data movement needs to be human-oriented and face its social, ethical and human responsibilities
related to cybercrimes and data security issues.

Second, the power stemming from Big Data and the social inequalities in accessing and using data are
implications highlighting the accountability between who has the privilege of storing and using data and
people, who actually preserve concerns about their privacy. This leads us to reflect on the inadequacy of
accounting information and the public interest of security breach disclosure, thus advocating the need to
improve information to stakeholders about cyberthreats and data security management. Such
managerial, societal and ethical redefinitions of Big Data demonstrate that analysing this phenomenon
cannot be limited to its original technological domain. Before Big Data was a managerial practice, it was
an engaging social practice. It can affect any aspect of society or an organisation. Therefore,
interdisciplinary research can fruitfully examine Big Data’s social impacts. Thus, research on Big Data
needs to expand beyond the boundaries of its technological roots and explore the benefits and risks to
society

Conclusion
This explores Big Data through a thorough analysis of the impact of data protection and cyber attacks on
IC. Although Big Data helps generate IC value, the IC of an enterprise and its effect on the broader
environment are also threatened. The Big Data ecosystem suffers from security threats which undermine
IC and the development of organizational value. The "data-as-value" model generates a data-driven
competition in which companies compete to collect as much data as they can. Nonetheless, along with
the possibility of privacy violations, the higher risk of data security breaches emanates from the same
forces that define the Big Data world – high volume , high speed and high variety. Cybercrimes and data
breaches reflect the other side of big data which is seldom addressed in the Big Data debate. They believe

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that the "voracity" is another "V" that characterizes Big Data and one that highlights the negative
consequences of cyber attacks and data protection problems that are part of Big Data.

The existing IC environment is formed by cybercrime and data protection breaches, undermining IC and
value development. The loss of confidentiality, credibility and data availability resulting from data theft ,
data breaches, cyberespionage and computer manipulation endanger financial, institutional, and human
resources. Consequently, reputational risk, damage to the brand image, lack of competition and creativity,
loss of technical value for decision-making and damage to network assets are all threats to the profitability
of IC arising from data protection concerns.

The transformative projections we discussed earlier lay out a new research agenda that underlines the
business and societal challenges that undermine the benefits of big data. IC can benefit from big data but
organizations also face challenges and data security is one (Assunção et al . , 2015; Wang et al . , 2016).
Organizations have social , legal, and managerial dimensions, and these expose the essential human
aspect of Big Data which, if not handled properly, could become its doom. Data is a fuel for complex Big
Data ecosystems (Demchenko et al., 2014) and companies need to make internal improvements to use it
in their cycle of value creation

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Alles, M.G. (2015), “Drivers of the use and facilitators and obstacles of the evolution of big data by the audit profession”,
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Vasarhelyi, M.A., Kogan, A. and Tuttle, B.M. (2015), “Big data in accounting: an overview”, Accounting
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verizon-insights-lab/dbir/2017/

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