The development of technology is evident, rapid, and virtually unstoppable. In her Commerce 101 business blog, Tracy Wong contrasts the pros and cons of rapidly evolving technology in businesses around the world. On the one hand, each advancement signifies tremendous global growth for efficiency and effectiveness. However, the blog questions whether or not technology has gone too far. Through examples of manipulated artificial intelligence and automated car collisions, she suggests technological advances have surpassed their ethical limits, are dangerously unregulated and have the potential to cause irreparable damage.

Acknowledging incidents where new technological inventions have caused harm, it is not realistic to stop the progression of technology. Fortunately, my analysis shows the industry’s rapid growth will be more beneficial than harmful. Specifically regarding businesses, they provide a sustainable competitive edge through improved, and more importantly innovative, service and products. For example, Porter’s 5 Forces states technology that is new and difficult to replicate prevents rivals from imitating their own systems, creating a barrier of entry in that industry. Tracy mentions the sustainable competitive advantage that businesses strive for, and I absolutely agree technological developments are some of the best ways to differentiate from other companies. In fact, these advances are necessary for the survival of these companies as giants in their industries.In a market with so many different competitors, new technology is an essential point of difference and can be the factor that sets them apart from the sea of other competitors. Overall, businesses are much better off with the constantly improving technology.

In terms of customers and society as a whole, Tracy proposes that these progressions may not be in their best interest. According to her blog, inventions such as artificial intelligence are more so under Friedman’s theory of corporate responsibility. In the long run, each development has the potential to improve the value delivered for all stakeholders in a company. As they would in any trial of new products, society will need time to adjust to them. For example, as discussed in class, the addition of cameras to cellphones was seen as invasive and a violation of a person’s right to privacy, but today society has grown accustomed to this now old addition, and there are very few existing qualms. Looking at recent examples, automated cars are not yet perfect, even resulting in occasional horrifying accidents. Even older inventions, such as automobiles, have caused many more deaths than automated cars, yet are still considered ethical. Companies are constantly improving from each mistake, striving to ensure they will not be repeated. Once the technology is “perfected”, the service and products that customers receive will be miles beyond what they have today, and hesistancy will gradually disappear.

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1. Image from https://gcn.com/Articles/2016/01/28/AI-vs-automation.aspx

Earlier this week, Rogers Communications Inc announced its plan to largely withdraw from the production of print magazines. In an attempt to keep up with the widespread shift from print to digital, they are completely eliminating four of their magazines’ print editions, drastically reducing the number of printed editions for the majority of their magazines, and selling many of their French magazines. In place of these print copies, they are focusing on online and app based magazine distribution. These changes will occur in January 2017.

In the short term, this is a smart move for Rogers to make. As technology holds massive significance in our lives, it is unsurprising that print copies of media have been decreasing in popularity for years. Naturally, there are risks associated with converting to digital media. In some cases, being a digital media delivery service, as opposed to a print one, is still not enough to be successful. Some media publishing apps, such as Apple Newsstand, still haven’t gained popularity despite being digital since their inception. Some have even had to shut down in the last couple of years. However, in order to catch up to the publishing companies that have successfully transitioned, this is a worthwhile investment.

Despite the fact that this changeover is much needed in their company, it is coming quite awhile after traditional printed magazines have lost their popularity. Rogers’ goal is not to solely be on par with other companies, but to be distinguished as a serious competitor. Based on Michael Porter’s explanation of competitive strategy, Rogers’ long term success is dependant on their ability to differentiate themselves from their competition. Converting to digital based distribution is not uncommon. In fact, many other companies have already made this transition years ago. This change merely has the potential to put their service on par with those of their competitors. In the short term, this will help improve the popularity of their magazine service. A few years down the road, when even more companies become digitized, their service will no longer be unique and will be easily replaced by substitutes.

Ultimately, Rogers’ focus on operational effectiveness is essential, but lacks sustainability as a competitive advantage. Instead of trying to create apps or websites that are more effective than the numerous other well-established media viewing apps, they should consider looking at ways to set themselves apart in the market. Rogers Publishing has seen some success in the past, but their magazine distributions have not been hugely profitable for a number of years. With an innovative approach, it is likely that their magazine publishing sector will be successful for many years to come.

Rogers is converting many of its printed magazines to online editions. (1)

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1. http://www.marketingmag.ca/wp-content/uploads/2013/09/PublisherLibrary-B11.jpg

Hundreds of thousands of companies expect their employees to meet regular quotas every year to ensure continued high revenues. These standards foster a culture of immense pressure  to perform and meet these goals. Wells Fargo, a well-known banking institution, set such standards for their employees, checking each person’s sales progress multiple times per day and constantly demanding results. This harsh and competitive environment is what eventually lead to a massive scandal involving 5300 employees, who created fake email accounts were created in order to open credit cards without the customer’s consent in order to meet the high standards set for employees.

According to Stakeholder’s Theory, as told by R Edward Freeman, the company’s prioritization of profits through the use of almost unreachable quotas is what will lead to its deterioration. When Wells Fargo placed profit on a pedestal so high that they were willing to neglect and harm their customers, the clients of the bank lose trust in the institution and as a result, take their business elsewhere. Although it is important for the company to maintain its rate of output, the focus needs to be on benefit for all the business’ stakeholders, including customers, as opposed to just the beneficiaries of high credit card sales. 

On the other hand, based on Friedman’s article “The Social Responsibility of a Business is to Increase its Profits”, the bank’s primary focus on maximizing profits is justified and healthy. It is notable that, unlike Wells Fargo, Friedman stipulates the company still needs to stay within regulations and ethical limits. Regardless, setting quotas that require employees to sell unneccessary products is not necessarily in the best interest of the client. However, this single minded focus can dramatically increase the bank’s profit. Friedman’s reasoning of prioritizing profit explains why the company’s demanding sales goals have made it so successful in such a competitive industry.
Wells Fargo has since released statements apologizing for the incident and insisting that the company always has and always will prioritize the customer above all else. Despite this claim, the fraudulent cards were only discovered after customers noticed they were being charged for services they didn’t ask for, long after the violations started. This brings into question the sincerity of their statements. In the short term, these deceptions temporarily brought profit to the company and employees. Wells Fargo would have likely benefited by taking a business approach similar to Freeman’s explanation. Ultimately, the lack of responsibility to customers and sole focus on profit seem to be what allowed so many employees feel comfortable to disregard ethical conduct and use any means possible to achieve their goals. 

Wells Fargo was recently fined for creating unauthorized credit cards. (1)

1. Sullivan, Justin. Wells Fargo Bank. Digital image. Money.usnews.com. Getty Images, 24 July 2015. Web. 10 Sept. 2016. <http://money.usnews.com/money/personal-finance/mutual-funds/articles/2015/07/24/why-wells-fargo-is-the-best-bank-stock-today>.

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