Subject: MarTech Integration and Challenges

Video Source: https://youtu.be/rLTaTihwL2s

Case Study: Zadeh, M. M. (2019). Facebook's privacy breach: Challenges of managing an information-based supply chain risk. Harvard Business Publishing. - https://store.hbr.org/product/facebook-s-privacy-breach-challenges-of-managing-an-information-based-supply-chain-risk/NA0577

Question: How would a Facebook board member respond to these arguments?

1a) As an investor of Facebook, we face two competing demands. On one hand, Facebook users expect the service to be free. (We also agree with this free model to ensure that every person has equal access to our powerful communication network). On the other hand, our business model relies solely on advertising to sustain a profitable organization. Our customers who are our advertisers rely on users' data to provide targeted and relevant advertising. The advertising model fails without shared data. How can we provide a free service without sharing user data? Even though Facebook is a for-profit company, it is an oversimplification to say that its owners and investors "choose profits over privacy." Our solution to protect users' privacy is to enable all Facebook users the option to opt out of third party data sharing. We believe most users will opt in and truly benefit from the reception of advertising relevant to their preferences and interests.

1b) Facebook needs to earn money in order to continue to serve users the best experiences. If we are not making money, we cannot invest in the product to make it better. Users will leave, the stock price will fall, and we will be beaten out by competitors. While data sharing with outside organizations helps Facebook to earn a profit, it also helps society as we learn more about people's interests, tastes, and preferences so we can better provide for them in the future. We cannot limit data collection and sharing as it will not only affect our profits but our ability to serve users in customized ways. Facebook is a service that connects users and provides a space to experience vast communities and networks within one place. In order to make those experiences relevant and please users, we need to collect data and share it in an attempt to better understand and optimize the platform based on what we find. Users have become used to tailored ads and customized experiences. Some may think they would prefer what it was before, but they do not realize how much they benefit from the current practice. If Facebook is not willing to fight this battle and falters in the face of these challenges, a competitor will seize the opportunity to knock Facebook out of the ring and become the dominant player, rendering Facebook a relic of the past. We have a duty to serve all those who have believed in Facebook and helped the company get where it is today. We serve the shareholders. We serve them by providing a desirable space for the users from which we can monetize and grow. We can only accomplish this by sticking to our current practices.