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Limiting Access to Those Who Have Access

An adage of investingis that it's easier for the rich to get richer. Someone who has $10 million invested at 5 percent earns $500,000 per year. Another investor with $10,000 invested at that same 5 percent earns $500 per year. Every year, the disparity increases as the first investor pulls farther and farther ahead of the second.

This same adage applies to intellectual wealth as well. It's easier for those with considerable knowledge and expertise to gain even more knowledge and expertise. Someone who knows how to search the Internet can learn more readily than someone who does not.

And every year, the person with greater knowledge pulls farther and farther ahead. Intellectual capital grows in just the same way that financial capital grows. Searching the Internet is not just a matter of knowledge, however. It's also a matter of access. The increasing reliance on the Web for information and commerce has created a digital divide between those who have Internet access and those who do not. This divide continues to deepen as those who are connected pull farther ahead of those who are not.

Various groups have addressed this problem by making Internet access available in public places, such as libraries, community centers, and retirement homes. As of 2007, The Bill and Melinda Gates Foundation has given more than $262 million to public libraries for the purchase of personal computers and Internet access. Total donations since then are not published, but their foundation continues to give more support to libraries, particularly with matching funds to support computer maintenance and faster Internet connectivity.

Such gifts help, but not everyone can be served this way, and even with such access, there's a big convenience difference between going to the library and walking across your bedroom to access the Internet-and you don't have to stand in line. The advantages accrue to everyone with access, every day. For the connected, it is the primary means of learning, well, anything. Directions to your friend's house? Movies at local theaters? Want to buy music, books, or tools? Want convenient access to your checking account? Want to decide whether to refinance your condo? Want to know what TCP/IP means?

Use the Internet, if you have it. All of this intellectual capital resides on the Internet because businesses benefit by putting it there. It's much cheaper to provide product support information over the Internet than on printed documents. The savings include not only the costs of printing, but also the costs of warehousing and mailing.

Further, when product specifications change, the organization just changes the Web site. There is no obsolete material to dispose of and no costs for printing and distributing the revised material. Those who have Internet access gain current information faster than those who do not. What happens to those who do not have Internet access? They fall farther and farther behind. The digital divide segregates the haves from the have-nots, creating new class structures. Such segregation is subtle, but it is segregation, nonetheless.

Do organizations have a responsibility to address this matter? If 98 percent of a company's market segment has Internet access, does the company have a responsibility to provide nonInternet materials to that other 2 percent?

On what basis does that responsibility lie? Does a government agency have a responsibility to provide equal information to those who have Internet access and those who do not? When those who are connected can obtain information nearly instantaneously, 24/7, is it even possible to provide equal information to the connected and the unconnected?

It's a worldwide problem. Connected societies and countries pull farther and farther ahead. How can any economy that relies on traditional mail compete with an Internet-based economy? If you're taking MIS, you're already connected; you're already one of the haves, and you're already pulling ahead of the have-nots. The more you learn about information systems and their use in commerce, the faster you'll pull ahead. The digital divide increases

Discussion Questions

1. Do you see evidence of a digital divide on your campus? In your hometown? Among your relatives? Describe personal experiences you've had regarding the digital divide.

2. Do organizations have a legal responsibility to provide the same information for nonconnected customers that they do for connected customers? If not, should laws be passed requiring organizations to do so?

3. Even if there is no current legal requirement for organizations to provide equal information to nonconnected customers, do they have an ethical responsibility to do so?

4. Are your answers to questions 2 and 3 different for government agencies than they are for commercial organizations?

5. Because it may be impossible to provide equal information, another approach for reducing the digital divide is for the government to enable nonconnected citizens to acquire Internet access via subsidies and tax incentives. Do you favor such a program? Why or why not?

6. Suppose that nothing is done to reduce the digital divide and that it is allowed to grow wider and wider. What are the consequences? How will society change? Are these consequences acceptable?

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92644803

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