CASE STUDY Dog Days and Information Technology Gordon D. Brown
Joe is a young computer engineer who developed a microchip that consisted of an integrated circuit designed to be implanted in pets. The chip is small but can contain a considerable amount of information, such as the animal’s name; the owner’s name, address, and phone number; and the veterinarian’s name, address, and phone number. The chip uses a passive radio frequency identification technology and can be read with a basic scanning device. Such devices can be purchased by humane societies and veterinarians. One of Joe’s marketing pitches is to tell humane societies that a local ordinance encourages or requires all outplaced animals to be implanted with a microchip.
Joe is ecstatic about his technological breakthrough, and given that the United States has nearly 200 million pet dogs and cats he estimates that he would soon launch into the economic stratosphere, like what happened to Steve Jobs and Bill Gates. The plus side is that his innovation presents no controversial or animal-cruelty issues. Production costs are modest, although Joe does invest heavily in marketing the product on the web, in print media, and at animal shows. In his marketing material, he cites that the implant is a method for verifying owners. He also promotes the chip to customs officials, who need to check the animal’s vaccination and health records.
The implantable microchip becomes an instant success with animal owners and veterinarians, but its sales growth overwhelms Joe’s ability to produce and distribute the product on his own. He expands his investment in production and sales and establishes multiple distribution channels. He is on track to reach his economic goals.
Meanwhile, Jennifer is a young engineer who owns a pet. She created a microchip that can be loaded or programmed with information and worn by the pet externally (not implanted), making the information easy to update. Access to the chip is protected by a password set by the owner. A veterinarian or anyone given access can read the information contained in the chip. Most significantly, the chip can be read by GPS, which enables tracking the location of the animal. This feature is especially important when the pet goes missing, as local pet clubs and their members could get involved in the search or recovery efforts because the chip sends alerts of where the animal is currently located or is moving.
Jennifer markets to pet-insurance companies, which find the tracking system handy in reducing the risk of registered animals being lost or abducted. The insurance companies also use the health information embedded in the chip to set policy rates and coverage limits. In addition, she has explored whether the pet identifying number constitutes legal proof of ownership. If not, the number and related information might be sold to pet food and health product marketers, which could translate to a financial bonanza. She regularly checks the law concerning the right to privacy for animals.
Today, Joe works for a large technology company. He is trying to repay the considerable debts he incurred from his failed venture, an enterprise bested by Jennifer’s more sophisticated product.
1. Apply the concepts of automating as opposed to transforming a process in this case.
2. What is the transforming power of information technology in this case, and why is it sometimes difficult to envision?
3. How do aspects of electronic information raise legal and ethical issues?