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ICT Ethics: Applying the Method of Philosophical ethics

ICT Ethics: Applying the Method of Philosophical ethics. Acquisition of ERP system Aki Heikkinen. Background story.

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ICT Ethics: Applying the Method of Philosophical ethics

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  1. ICT Ethics: Applying the Method of Philosophical ethics Acquisition of ERP system Aki Heikkinen

  2. Background story • Nirmal is the IT manager in a government department with more than 500 staff members and six branches across Australia. His department has decided to acquire an enterprise resource planning (ERP) system. An RFT for the procurement of the software was advertised in a number of Australian newspapers. Two local companies responded to the advertisement and sent their offers to the department. • When Nirmal opened the envelopes and examined the offers he found that company A’s offer is slightly better than company B’s offer. To his surprise, company B’s offer was made by his best friend Devraj, who is the general manager of company B. Company A’s software appeared to be easier to use and easier to modify compared to company B’s software. Although the initial cost of company B’ software appeared to be less than that of company’s A, the former may require some ‘toolsconsultants’ to modify it and some ‘businessconsultants’ to assist in running it, which might eventually raise the total cost. • To complicate matters more, Nirmal received a phone call from Devraj, who urged him to favour his offer, as he is quite desperate to get this deal. He also reminded him that the ‘tools and business consultants’ who might be needed in the project will be recruited from his home country which means more jobs for his countrymen and in turn more money sent home.

  3. Concept clarifications • Nirmal and his department wants to acquire an enterprise resource planning (ERP) system. • ERP systems are intended to manage all the information and functions of a business or company from shared data stores [1]. • ERP systems are very expensive and acquiring one can have several issues regarding system usability, configuration and personnel proficiency [1]. • Risks on failing the ERP system acquisition is high and failures usually have significant impact on company’s finance.

  4. Stakeholders and parties • Nirmal : IT manager in Australia government department. • Company A : Company offering ERP-system which is easier to use and configure. • Company B : Company offering ERP-system which has slightly better initial cost, but will require consulting which can rise the cost to higher. • Devraj : General manager of company B and the best friend of Nirmal, who is desperate to get the deal.

  5. Key problem and clarifications • Should Nirmal take his best friend’s offer insted of cheaper and less riskier offer? • If Nirmal would be taking Devraj’s offer he would be doing a favor to his desperate best friend, but at cost of using more his department’s financial resources and taking greater risk because the system is more difficult to use and configure. • The money used for Devraj offer’s consulting would eventually bring more jobs to his countrymen and turn more money sent home. • The worst case scenario is that the ERP acquisition will fail completely which will will cost even more to Nirmal’s department.

  6. Description and analysis (1/2) Stakeholders’ interests and motives • Nirmal doesn’t want to let down his best friend. This would be good chance to help his friend but with possible risks. • Devaj is facing desparate times and taps on situation even if it would risk his friend. Risks on Nirmal’s side • The ERP acquisition would complately fail can cause unnecessary financial problems. Nirmal could lose his job • Nirmal could lose his reliability in department and in public because he uses his power to his ”own” benefits instead of driving the department’s advantage. Corruption

  7. Description and analysis (2/2) From business point of view • Nirmal should understand that as an IT manager, he should drive his department’s advantage, instead of anything else. • Business is always business regardless of who are participants in it. • Choosing the company A’s ERP system is more reliable and cheaper option overall.

  8. Applying ethical theories (1/5) Egoism • In egoism theory, acts should be selected to drive individual maximize good [2]. • According to this Nirmal should evaluate the ERP acquisition failing risk and compare it to his personal needs for friendship with Devaj. • If Nirmal regards his friendship with Devaj greater than the consequenses that can be caused by failing in the ERP acquisition he should definitely choose to use company B’s ERP system.

  9. Applying ethical theories (2/5) Egoism • On the other hand if Nirmal feels that his career is more important to him than the friendship and that risk in losing his face in public (because of corruption), or failing the ERP acquisition is too high, he ought to select the company A’s ERP system to secure his personal maximize good. • If Nirmal values both his career and friendship equally he’s in big dilemma and should evaluate the failing risk even more carfully to make up his choose.

  10. Applying ethical theories (3/5) Act utilitarism • ”In act utilitarianism, a person performs the acts that benefit the most people, regardless of personal feelings or the societal constraints such as laws” [3] • According to this Nirmal should not let his personal feelings affect his act of choosing company A or B and should see Devaj as regular business person instead of a friend when dealing with this issue.

  11. Applying ethical theories (4/5) Act utilitarism • Nirmal is working on department with more than 500 staff members which is very likely much more than Devaj’s company staff members and possible consults. • On financial level Nirmal should choose the system that is more cheaper because it would bring greater good to his department. • There is a very high possibility that company B’s ERP system would need the consulting which increases the cost and makes the company A’s offer a cheaper one.

  12. Applying ethical theories (5/5) Act utilitarism • On application level there is greater risk in acquisiting company B’s ERP system, because it’s more difficult to use and configure. • If ERP acquisition would fail Nirmal’s whole department would suffer • Because of these argument, and especially that the personal feelings should be omitted, there is clear conclusion that Nirmal should choose the company A’s ERP system.

  13. References • [1] Web-site: http://en.wikipedia.org/wiki/Enterprise_resource_planning (24.11.2009) • [2] Online guide to Ethics and Moral Philosophy http://caae.phil.cmu.edu/cavalier/80130/index.html • [3] Rainbow, C., Descriptions of Ethical Theories and Principles, http://www.bio.davidson.edu/people/kabernd/Indep/carainbow/Theories.htm

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