a.widely used because it is easy to learn b.widely used because the government subsidizes its use c.not widely used because people could, but have not, taken the time to learn how to apply it. Proprietary information, also known as a trade secret, is information a company wishes to keep confidential. Companies may also develop their own software. This is the first of three blogs that examine some basic assumptions about technology and education, based on a review of three books: ‘THE TOWER AND THE CLOUD‘, ‘CATCHING THE KNOWLEDGE WAVE‘, AND ‘THE INTEGRATION OF INFORMATION AND COMMUNICATIONS TECHNOLOGIES IN THE UNIVERSITY‘. In information technology, proprietary describes a technology or product that is owned exclusively by a single company that carefully guards knowledge about the technology or the product's inner workings. It can be purchased or licensed for a … These systems can be found in a bank branch, where employees input information when customers come in to do routine banking at the teller line. Employees may also be required to sign non-disclosure agreements (NDAs), a contract that gives the employer legal recourse if internal, confidential information is shared with outside parties. Learn vocabulary, terms, and more with flashcards, games, and other study tools. d. known only by the company that discovered it. For these businesses, investors and interested parties go to great lengths to assess and value proprietary technologies and their contribution to business results. This option, however, is often costlier and comes with greater restrictions on the use of underlying technologies. As the saying goes: Knowledge is power.It’s estimated that poor knowledge-sharing practices cost Fortune 500 companies $31.5 billion annually, according to International Data Corp. (IDC), a market intelligence and advisory firm in the IT and telecommunications industries. These give the owner rights to the intellectual property and prevent others from copying the innovations. Proprietary technology is a series of processes, tools, or systems owned by business or individual, which provide the owner with a benefit or competitive advantage. While the advantages of some proprietary technologies are clear, others are not so evident. And it's only through recombination with other technologies where the true value is uncovered—an effort now simply known as innovation. resources expended transmitting society's understanding to the labor force. The securities can also be loaned out to cl… As mentioned above, companies can protect themselves by taking out patents and copyrights on their proprietary technology. In general, proprietary software doesn't provide end users or subscribers with access to its source code. Companies capable of developing useful proprietary technologies in-house are rewarded with a valuable asset and can either use it exclusively or profit from the sale of licensing their technology to other parties. These combinations provide a benefit or competitive advantage to the owners of proprietary technologies. One of the benefits of proprietary trading is increased profits. As a proprietary trader, the bank enjoys maximum benefits from the trade. For instance, a pharmaceutical holding a patent on a particular compound that is the basis for a drug is an example of proprietary technologies. For example, financial institutions develop their own internal systems to collect and process data that is used internally. Other technology is proprietary-it is known only by the company that discovers it. Did You Know? It follows that real GDP per person grew faster in Oceania than in Freedonia. c. known mostly by only those in a certain profession. Proprietary technology involves an application, tool, or system that belongs exclusively to an enterprise. ANSWER: d. known only by the company that discovers it. For many businesses, particularly in knowledge-based industries, intellectual property can make up a majority of assets on an entity’s balance sheet. Proprietary technology is knowledge that is a known but no longer used much b, 1 out of 2 people found this document helpful, Proprietary technology is knowledge that is. All of the above are technological knowledge. So how do companies safeguard themselves from these unforeseeable actions? Employees may leak or share it with others including the competition—accidentally or intentionally—or a data breach may occur, exposing trade secrets to hackers. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Proprietary technology involves an application, tool, or system that belongs exclusively to an enterprise. Being carefully guarded within a corporation, they are protected legally by patents and copyrights. These are generally developed and used by the owner internally in order to produce and sell products or services to the end user or customer. c. known mostly by only those in a certain profession. EBITDA, or earnings before interest, taxes, depreciation, and amortization, is a measure of a company's overall financial performance. 5 Examples of Proprietary Technology. For example, a tax preparation company may charge customers a fee to use their software to complete their tax returns. Course Hero is not sponsored or endorsed by any college or university. It can be both a physical and an intangible asset developed and used by the organization. Not taking the time to protect their interests could spell disaster for their operations. 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