Lecture 7 ( March 8, 2003)

1. Lecture 7( March 8, 2003) Information Management and Society Case Analysis Health Care industry: Eli Lilly

2. Information management & society • The increase use of IS impacts almost everyone and everything, from individuals to society as a whole and applicable to everywhere worldwide now. • Businesses using them to sharpen their edge but must be very careful to protect their data, its integrity and privacy, and the way it is used. • While technology also increased employment in general, those workers displaced by technology must be retrained. They must learn new skills to find a new position or to operate the technology that now performs their old job. • An important issue is providing access to technology for everyone. Although lower prices, improved capabilities and more user-friendly features have made technology available to many more people, more still need to be done. Our government has been in the forefront in promoting technology with various assistance schemes and incentives. • Increasing dependence on technology brings new issues and risks to an organization and society as a whole and all these need to be addressed.

3. Overloaded with data • Technology has enabled us to collect and operate on huge amount of data. Data is vital as the source of our information in this information age. The urge to and the ease of collecting data are astonishing. Selective collection is a must. • Too much data and too little information is an universal problem while to search the data required is another. • The lawfulness of obtaining data and/or distributing data also come into question. • While most data are given or delivered on a voluntary orconsentbasis, others are required by law such as government agencies. The protection of such data become another issue.

4. privacy • The ease with which information regarding individuals can be acquired is astonishing. • Individuals are experiencing difficulties in keeping track who has their data and to what details. • Various laws or regulations are required to regulate what can and cannot be divulged. • Employee privacy is another issue. Computers are being used to monitor employees and what they do while they are working on the computer. Some employers read their employees’ e-mail, monitor the websites they surf and evaluate their performance using the computer. • While most employees are honest and diligent, there is always this possibility that one employee may use an organization's knowledge, experience and trust to misappropriate resources.

5. segregation of duties • A more complicated problem arises with MIS employees. MIS people need to be trusted or else there would be no systems or software. However, unscrupulous programmer planting so call “time bombs” and other damaging tactics are being reported now and then. • Segregation of duties help to reduce this type and other type of mishaps. • Segregations are being done commonly among operations and development staff. Further segregation into systems support, application development and maintenance, security administration etc are also required for organizations having more sensitive systems.

6. Computer security • The protection of electronic documents and information is critical since this information is so easy to be copied and taken elsewhere. • Three major security issues are: • Unauthorized disclosure of information • Modification of information • Withholding of information • Traditionally, physical measures are used for the protection of information. Physical and environmental aspects are still relevant and important today, however they have been found to be grossly inadequate long time ago.

7. computer security (contd.) • Some of the measures used for computer security include: • User identification • Access control • Encryption • Backup • Recovery • Business resumption plan • Computer audit and audit trails • Threats prevention and detection (errors, accidents, fraud, sabotage, viruses etc)

8. other considerations • Risk management • Risk identification • Risk analysis and quantification • Risk treatment • Risk monitoring and review • Security principles and practices • Human resource management • Never alone principle • Segregation of duties principle • Implementation and periodic checks • Penetration testing • Education for employees and customers

9. Shift in job functions • Technology makes jobs redundant as well as create new jobs. • Generally, jobs lost are of the type that required less skills and workers who lost the jobs will have a difficult time finding other jobs unless they are retrained. • New jobs created by technology tend to be better paying, physically safer and less repetitive. • Technology also causes the economy to grow and hence create jobs in other sectors as well. • Technology also offers people with disabilities the opportunity to work in ways never previously thought possible.

10. shift in job functions (contd. 1) • As technology advances and more sophisticated IS put into place, middle-level managers also become affected. • As more technological tools become available and the lower level executives becoming more educated, the job of middle-level executives became more leveraged. To remain competitive, everyone must continuously learn new skills to stay ahead in the rapidly changing marketplace. • Our government and other local agencies are offering all kind of incentives and assistance schemes to retrain our people. • It is important to carefully study technology trends to “predict” correctly in which skills to invest for the future. Guessing wrongly can lead you to invest time and money in a technology or skill that fades away.

11. shift in job functions (contd. 2) • As technology advances, services jobs increase. Telecommute or work from home increases. • An organization gains on the decreased costs for office space and flexibility in hiring additional workers. The workers gains the time and expenses of commuting to and from work. • However, managing and evaluating telecommuting employees are difficult while workers loses personal contact, decreased motivation and a home environment generally is more comfortable and distracting.

12. Responsibility and ethics • Individuals: • Refrain from software piracy to protect legal owners and support them for further research and continual development • Assist organizations in law abiding • Organizations: • Strict but clear rules for employees to follow • Guard against customers’ data • Provide training and monitoring their employees while giving them a reasonable amount of privacy • Government: • Laws and regulations were found to be falling behind technology • Enforcement and judicial interpretation are also found to be behind the current technological direction • It is necessary to continue to update laws to incorporate new technology and to provide compensation to those unfairly injured

13. Computer related laws • Laws form the foundation of society. • Laws provide the structure that enable businesses to exist. • As society changes, the laws must also be changed to keep up. As technology advances, we can expect to see more laws extended and new ones created. • Laws continually change and new interpretations and applications regularly arise. Moreover, different country may have quite different laws. One generally need a legal professional such as a lawyer to help understand and apply the current laws. • As specific areas of the law are more involved such as information technology related, legal practitioners also specialized in specific areas. It is imperative you seek the appropriate assistance when the need arise.

14. The Electronic Transactions Act • The advent of e-commerce and the use of the digital medium as an alternative to the physical world have created some novel legal issues where there are no clear answers. • In the physical world, there are requirements for documents to be in writing and for hand-written signatures. Such requirements need to be translated into the electronic realm. • For communication and transactions occurring over a faceless network, there is a need for reliable methods to authenticate a person's identity and to ensure the integrity of the electronically transmitted documents. • The Electronic Transactions Act aims to address these important issues and to create the legal framework for e-commerce transactions in Singapore.

15. Electronic Transactions (Certification Authority) Regulations • The Electronic Transactions Act and its Regulations have put in place a voluntary licensing scheme for certification authorities (CAs). • In addition to laying down the administrative framework for licensing by the Controller of CAs, the Regulations also stipulate the criteria for a CA in Singapore to be licensed, and the continuing operational requirements after obtaining a licence. • The criteria that CAs will be evaluated against include their financial standing, operational policies and procedures, and track record.

16. other related laws and regulations • Computer Misuse Act • An Act to make provision for securing computer material against unauthorized access or modification and for matters related thereto • Evidence (Computer Output) Regulations • to ensure that computer output will be admissible as evidence in the event of legal proceedings is to make sure that the computer output is produced by an approved process. That means that the output must be produced in accordance with a process which complies with the criteria set out in the Evidence (Computer Output) Regulations. • Section 35(5) of the Evidence Act defines "approved process" as a process that has been approved by an appointed certifying authority in accordance with regulations • Offences using computers under various laws such as the Penal Code, Banking Act etc

17. some computer related offences • Offences against computers: • Hacking • Scanning • Spamming • Spoofing • Stealing passwords • Unauthorised access • Unauthorised interception • unauthorised modification • Unauthorised obstruction • Offences using computers: • Theft of funds • Fraud • Secrecy

18. Case study: Healthcare industry • Healthcare is a tightly regulated industry • It consists of public, private and nonprofit institutions • Healthcare is different from other consumer purchases. Individuals must be prepared for, but often do not know when they need health care • Most of the time consumers have very little to say about what type of services they receive. • America’s complex healthcare system is a leader in the use of sophisticated and expensive technology • Customers of large organizations, intermediaries, managed care companies and individual payers are demanding more responsive and lower cost alternatives. This demand has lead to the restructuring of the health care industry which has much of its focus to a managed care model

19. Eli Lilly • Lilly is a leader in the pharmaceutical industry. The company employs more than 41,000 people worldwide and markets its medicines in 158 countries. • Eli Lilly and Company creates and delivers innovative medicines that enable people to live longer, healthier and more active lives. • Lilly online services not only provide information about its products, but also answers to matters in medicine, life sciences and health care. • Lilly’s research and development facilities are located in all over the world including Singapore. Clinical researches are conducted in more than 60 countries around the world and manufacturing facilities in 14 countries. • Lilly performed well during the early 1990s due largely to the success of its best-selling drug Prozac. • Prozac is the world’s most widely prescribed brand name antidepressant. It is used by more than 24 million people worldwide. People suffering from depression have a chronic condition requiring a daily regiment of maintenance therapy.

20. Technological investments and systems • Competition and expiring patent rights forced Lilly to position strategically into two areas: • Increasing its presence in rapidly growing new markets. • Aggressively introducing new drugs, example Cialis. • The pharmaceutical industry is characterized by fierce competition, mergers and the formation of strategic alliances. The already high level of competition is further raised in intensity by the growing dominance of the generic drug market. • Investing in cost-reducing technological systems, targeting key markets and expanding offered services became the focus.

21. PCS Health Systems • PCS Health Systems, America’s largest pharmaceuticals-by-mail (PBM) system, was acquired by Eli Lilly at the time when the PBM market was explosive. The increased presence was felt after the acquisition. • The subsequent purchase of Integrated Medical Systems (IMS), a provider of community medical information networks, has strengthened Lilly’s position by combining the resources of an information system provider with the services of a PBM. • IMS has enabled PCS Health Systems to extend interactive information systems networking into physicians’ offices and providing online disease management services, medical claims processing and disease prevention services.

22. Eli Lilly Virtual Information Service • Eli Lilly Virtual Information Service (ELIVS) is an intranet corporate information systems running on Microsoft Windows servers for employees. • It provides employees access to corporate news bulletins, job postings, stock prices and daily news on the pharmaceutical industry. • Senior management are provided with an executive tracking system that maintains schedules and executive corporate information database. • It provides the brand marketing teams and individual sales representative with the means to access updated product information, market research, competitive analysis, customers lists and sales leads from any location in the world any time of the day. It also serves to synchronize sales information and pricing worldwide.

23. clintrace and clintrial systems • Lilly purchased further software products to aid staff by automating and standardizing the data collection and regulatory reporting associated with the discoveries of new drugs. • Clintrace is used to simplify the process of adverse event reporting during the testing of new drugs. • Clintrial is used to standardize the process of clinical trial data collection. It accelerates a new product’s time-to-market by collecting, organizing and managing data within regulatory guidelines. • While ELVIS provides an information link and forum for employees and develops a virtual corporate culture, the ‘Clin-’ products provide a mechanism to enhance research & development productivity.

24. In-house developments • While Lilly has given the management of its ambitious online healthcare networks to EDS, conceding that a technology company is better suited for the effort, Lilly does not look for commercial software for their special needs. • Lilly believes that part of the market edge comes from building its own software solutions. Commercial packages can be adapted for its horizontal business functions while development is focused on applications that support the most important business functions. Lilly reduces IT service providers from 100 to just 9. • Lilly focused on cutting the cost of drug development by looking for applications to assist in the processing of huge volume of data

25. into the future • Lilly has successfully established an intranet directed toward simplifying the scheduling of clinical trials and submissions for new drugs in 120 countries. • Combinatorial libraries of compounds allow researchers to screen for therapeutic benefits. The collection and manipulation of this data is increasingly important to drug research. Data on compounds will expedite research and development. A faster pipeline of new drugs could represent greater profitability. • As Lilly continues to research and distribute new products, it must continue to develop a LAN and internet-based distribution system for its products and the related information.

26. resources & reading materials Chapter 14 of textbooks • www.law.com.sg • www.lawonline.com.sg • www.lilly.com