The Portable MBA in Finance and Accounting, 3rd Edition

(Greg DeLong) #1
Information Technology and You 169

and online shopping company Lands End now provides their customers with
the opportunity to have a three-dimensional computer model built from laser
scans of the customer ’s body. Once this model is built, the customer can “try
on” clothing on their computer screen to see how the actual clothes will look
on their computer-based body.
As electronic shopping becomes more effective, virtual malls, or group-
ings of stores that share the same electronic Internet address, will spring up on
the Internet, creating the feel of a physical mall. Both consumers and retailers
will be able to benefit from one-stop shopping in cyberspace.


Privacy on the Internet


When using the Internet for e-mail, e-commerce, or other applications, you
must remember that, like the radio spectrum, the Internet is a public network.
With the right skill, anyone on the Internet has the ability to “listen in” on your
electronic transaction. While the transaction will appear to be processed nor-
mally, its confidentiality might well be compromised. Beware! Never send
across the Net any confidential information that you would not want any other
person or company to know.
However, Web browsers usually have the ability to encrypt data that is
transmitted between a user and a Web site. Most organizations conducting
business on the Web will, therefore, only send and receive confidential infor-
mation using encryption technology, which should provide you with adequate
protection. Generally, Web sites will notify you that they are using such a se-
cure connection. In addition, whenever you are connected to a secure site, your
Web browser will show a little icon of a closed padlock on the status bar at the
bottom of your screen.
Beyond protecting data as it is transmitted, there is a significant privacy
issue surrounding the use of data in your Internet activities. Whenever you sign
onto a Web site, those sites can collect information about your activities, such as
purchases, credit card number, address, and so on. At the moment, there is very
little legislation either at the federal or state level preventing Internet sites from
selling or sharing information about you with third parties. Various industry
groups are trying to encourage self-regulation in the e-commerce industry, and
many Web sites will post their privacy policy, usually as a link on the home
page. However, at the moment there is little consistency or enforcement of pri-
vacy policy. We can expect that there will be significant legislation on privacy
issues in the future, but until such legislation is in place, beware!
In addition, some Internet sites place small files, called cookies,on your
hard drive when you are in contact with the site. In most cases, these cookies
are innocuous, allowing you to access the site without having to remember a
password or providing you with your favorite screen. However, cookies can also
be used to help track your Web actions and build a profile of you and your ac-
tivities. Inexpensive or free software is available to help you manage or prevent
cookies being placed on your computer, but blocking cookies may prevent you
from being able to use certain Web sites.

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