This document discusses information systems and concepts related to organizational management. It begins by defining an information system and distinguishing between data and information. It then covers topics such as the categorization and characteristics of information, including source, nature, levels of use, time, frequency, and form. The document also discusses different types of information systems used at various organizational levels, including data processing systems, management information systems, decision support systems, and executive information systems. Finally, it covers concepts like the speed of processing systems and value versus cost of information.

1. Information Systems
Using Information
(Higher and Intermediate 2)
1

2. Information Systems
 A system to convert data from internal and
external sources into information and to
communicate that information, in an
appropriate form, to people at all levels in all
functions to enable them to make timely and
effective decisions for planning, directing and
controlling the activities for which they are
responsible.
2

3. Introduction
 Information and knowledge are so important nowadays
that society can be divided up into two groups.
 Information rich – those who have access to:

many TV and radio channels

books, newspapers and journals

computers and the World Wide Web.
 Information poor – those who:

tend to not have access to the Web and probably
find it difficult to access relevant books and
journals.
 If you are following this course you will probably be
information rich.
3

4. Learning Objectives
Throughout this unit we will learn about the nature
and uses of information by looking at:
 Differences between Data and Information
 Organisational Information Systems
 Information Management Software
 Implications of Information and Communications
Technology.
4

5. Data and Information
 Data is raw unprocessed facts and figures that
have no context or purposeful meaning.
 Information is processed data that has
meaning and a context.
Data Information
36.41 £36.41 – bill for DVDs
Binary patterns on Processed data – e.g. display on
a disc screen, icons, etc.
5

6. Data and Information
 A single unit or item of data is called a datum
 It is one or more symbols used to represent
something.
6

7. Knowledge
 Knowledge is derived from Information
We gain knowledge from information and we use that
information to make decisions.
 Explicit knowledge is rules or processes or
decisions that can be recorded either on paper or in
an information system.
 Tacit knowledge exists inside the minds of humans
and is harder to record. It tends to be created from
someone’s experiences, so again is a set of rules or
experiences.
7

8. Metadata
 Metadata can be thought of as data that
describes data. It is structured information
about a resource.
 Examples
 a data dictionary
 A meta tag in a web page contains information
about the contents of the web page.
 the card index system used by libraries before
computerisation, where each card told you the
author, title and where to find the book
8

9. LI - Categorisation of Information
 Information can be categorised under
several headings that allow us to
determine its overall usefulness.
 Main categories
 Source  Frequency
 Nature  Use
 Level  Form
 Time  Type.
9

10. Source – Primary or Secondary
 A primary source provides the data to an information
system from an original source document.
• e.g. an invoice sent to a business or a cheque received.
• sales figures for a range of goods for a tinned food manufacturer
for one week or several weeks and one or several locations.
 A secondary source of information is one that provides
information from a source other than the original.
• e.g. an accounts book detailing invoices received, or a
bank statement that shows details of cheques paid in.
Where statistical information is gathered, such as in surveys or
polls, the survey data or polling data is the primary source and the
conclusions reached from the survey or the results of the poll are
10
secondary sources

11. Source – Internal
 All organisations generate a substantial amount of
internal information relating to their operation.
 Examples of internal sources:

Marketing and sales information on performance,
revenues, market share, distribution channels, etc.

Production and operational information on assets,
quality, standards, etc.

Financial information on profits, costs, margins, cash
flows, investments, etc.

Internal documentation such as order forms, invoices,
credit notes, procedural manuals.
11

12. Source – External
 An external source of information is concerned
with what is happening beyond the boundaries of
the organisation.
• census figures • telephone directories
• judgments on court cases • computer users’ yearbook
• legislation, e.g. the Data • gallup & national opinion polls
Protection Act
• Ordnance Survey maps
• trade journals
• Financial services agencies
• professional publications such as Dunn and Bradstreet
• industry standards • the Internet
12

13. Source - Nature
 Formal Communication
 information presented in a structured and
consistent manner
 main methods

the formal letter, properly structured reports, writing
of training materials, etc. in cogent, coherent, well-
structured language.
 Informal Communication
 less well-structured information
 transmitted within an organisation or between
individuals who usually know each other.
13

14. Source - Nature
 Quantitative Information
 information that is represented numerically.
 Qualitative Information

information that is represented using words.
14

15. Levels of Use of Information
Long-term decisions - both
internal & external sources
Top level of management
STRATEGIC Medium-term decisions - mostly
internal but some external
sources
TACTICAL Middle management
Day-to-day decisions -
largely internal sources
OPERATIONAL Lowest level of staff
15

16. Time
 Historic
 Information gathered and stored over a period of time.
 It allows decision makers to draw comparisons between
previous and present activities.
 Historic information can be used to identify trends over a
period of time.
 Present
 Information created from activities during the current work-
window (day, week or month).
 In real-time systems this information would be created
instantly from the data gathered (e.g. the temperature in a
nuclear power plant turbine) giving accurate and up-to-date
information.
 Future
 Information that is created using present and historic
information to try to predict the future activities and events
relating to the operation of an organisation.
16

17. Frequency of Information
 Continuous
 This is information created from data gathered several times a
second. It is the type of information created by a real-time
system.
 Periodic
 Information created at regular time intervals (hourly, daily,
monthly, annually).
 Annually – On an annual basis a company must submit its
report and accounts to the shareholders.
 Monthly – Banks and credit card companies produce
monthly statements for the majority of their customers.
 Daily – A supermarket will make daily summaries of its sales
and use the product information to update its stock levels
and reorder stock automatically.
 Hourly – A busy call centre will often update totals for each
operator on an hourly basis and give the top employee for
the hour some reward.
17

18. Uses of Information within
Organisations
 Planning is the process of deciding, in advance, what has
to be done and how it
is to be done.
 Planning is decisions by management about:
 What is to be done in the future
 How to do it
 When to do it
 Who is to do it
 An objective is something that needs to
be achieved.
 A plan describes the activities or actions required to
achieve the objective.
18

19. Uses of Information within
Organisations
 Control is the monitoring and evaluation of current
progress against the steps of a pre-defined plan or
standard.
 Operational level
 the manager’s time will be spent on control activities
 At higher levels
 planning and control are more closely linked, with
management being concerned with the monitoring of
progress against the plan, assessing the suitability of
the plan itself, and predicting future conditions.
19

20. Uses of Information within
Organisations
 Decision-making –
 means selecting an action or actions from those
possible based on the information available.
 involves determining and examining the available
actions and then selecting the most appropriate
actions in order to achieve the required results.
 is an essential part of management and is carried out
at all levels of management for all tasks.
 is made up of four phases:
• Finding occasions for decision making
• Finding possible courses of action
• Choosing among these courses of action
• Evaluating past choices.
20

21. Forms of Information
 Written
 Hand-written, word-processed, e-mails.
 Reports from different classes of software.
 Reports, memos and tables, receipts, invoices, statements,
summary accounting information.
 Aural
 Speech, formal meetings, informal meetings, talking on the phone
and voice-mail messages.
 Employee presentations to a group where there may be use made
of music and sound effects as well as speech.
 Visual
 pictures, charts and graphs.
 Presentations via data projects, DVDs, etc.
21

22. Types of Information
 Detailed
 An inventory list showing stock levels
 Actual costs to the penny of goods
 Detailed operating instructions
 Most often used at operational level
 Sampled
 Selected records from a database
 Product and sales summaries in a supermarket
 Often used at a tactical level (maybe strategic)
 Aggregated
 Totals created when detailed information is summed
together
 Details of purchases made by customers totalled
each month
22

23. LI - Characteristics of Information
 There are 8 main characteristics of  Completeness
information
 Accuracy
 Not all information has all the
characteristics
 Timing
 Conciseness
 Always use the example given when
answering
 Reliability
 Relevance
 You may have to make assumptions
when answering questions
 Availability
 Presentation
Use CATCRRAP mnemonic
23

24. Availability / Accessibility
 Information should be easy to obtain or access for
use when required
 How to write about it:
 state the information item
 state whether the info is available/accessible or not
 give your reason why
 eg. if on-line it is very accessible, but need hardware
if on paper, only accessible to those who have the
paper copy.

24

25. Accuracy
 Information needs to be accurate enough for the
use to which it is going to be put.
 How to write about it:
 state the information item
 state whether the info is Accurate or not
 Generally professional/Government bodies provide
accurate info

Adverts are supposed to be accurate

Internally created info is open to debate
 Websites must be treated with caution
25

26. Reliability or Objectivity
 Reliability deals with the truth of the information or
the objectivity with which it is presented.
 How to write about it:
 state the information item
 state whether the info is reliable or not
 a trusted source will usually provide reliable info
 internal info ie. e-mails are usually reliable
 Websites must be treated with caution
26

27. Relevance / Appropriateness
 Information should be relevant to the purpose for
which it is required. It must be suitable.
 How to write about it:
 state the information item
 state whether the info is relevant to the purpose it is
intended or not
27

28. Completeness
 Information should contain all details required by
the user.
 How to write about it:
 state the information item
 state whether the info is complete or not
 if not state what might be missing and the problems this
would cause to the user of the info
28

29. Level of Detail / Conciseness
 Information should be in a form that is short
enough to allow for its examination and use. There
should be no extraneous information.
 How to write about it:
 state the information item
 state whether the info is concise or not
 if not describe the amount of time that would be wasted
reading irrelevant info

If it is describe the info that is needed for the task
29

30. Presentation
 Information can be more easily assimilated if it is
aesthetically pleasing.
 How to write about it:
 state the information item
 state whether the info is well presented or not
 if it is well presented describe how this will aid the user in
digesting the info

If not, describe how this will cause difficulty in reading
and digesting the info
30

31. Timing
 Information must be on time for the purpose for
which it is required. Information received too late
will be irrelevant.
 How to write about it:
 state the information item
 state whether the info is on time or not
 Give reasons for your answer
31

32. Value and Cost
 Value
 The relative importance of information for decision-making
can increase or decrease its value to an organisation.
 Cost
 Information should be available within set cost levels that
may vary dependent on situation.
 The difference between value and cost
 Valuable information need not cost much.
 Information costly to obtain may not have much value.
32

33. Categories of Information Systems
 Data Processing Systems (DPS)
 Management Information Systems (MIS)
 Decision Support Systems (DSS)
 Executive Information System (EIS)
33

34. Categories of Information Systems
How do Information systems fit into levels of IS?
Organisational Type of information system
Level
Strategic Executive Information System (EIS)
Tactical Decision Support Systems (DSS)
Management Information Systems
(MIS)
Operational Data Processing Systems (DPS)
34

35. Data Processing Systems (DPS)
 Transactional Processing System
 Deals with day-to-day transactions
 Accountancy, invoicing, stock control
 Items scanned by bar code reader etc
 DPS are the tools used at the Operational level
of an organisation
 DPS involves use of a computer
35

36. Concepts in Relation to Organisational
Management Systems
 Speed
 The processor is able to carry out millions of calculations per
second.
 Accuracy
 Computers store and process numbers to a high degree of
accuracy.
 Depends on the software written and of course human accuracy.
 Much financial software is accurate to 3 decimal places rounded
to 2.
 The software and hardware combined will perform the calculation
correctly every time.
 Volume
 The number of transactions in a period of time is the volume.
 Efficiency
 The efficiency of an Information System is a combination of the
speed, accuracy and volume of the data processed.
36

37. The Data Processing Cycle
Information Data
Output Gathering
Processing Data
and Preparation
Storage and Input
See CDP Presentation 37

38. The Functions of an Organisational Information
System (1)
 Gathering data
 Turnaround documents in mail order and bills
 Bar codes on almost every item sold
 Call centres, customers pay by card
 Internet ordering – credit and debit cards
 Cards with magnetic strips and chip and PIN
 Magnetic ink character reader on cheques
 Optical character recognition
 Mark sense reader (Lottery tickets)
 In each case the data is captured and then stored
electronically and used for some purpose.
38

39. The Functions of an Organisational Information
System (2)
 Storing information
 Magnetic media

Magnetic tape – long-term and backup storage. Very
cheap but slow to access.

Hard disk – very fast random access, used in most
applications including ordering and booking systems.
 Optical media
 CD-ROMS and DVDs – both available in writeable and
re-writeable formats. Not as flexible as disk, but very
compact.
39

40. The Functions of an Organisational Information
System (3)
 Processing data
 Searching and selection

Search and select a sub-section of the data that
matches specified criteria.
 Sorting and rearranging

Alphabetic or numeric, ascending or descending.
 Aggregating

Summarising data by totalling details.
 Performing calculations

Working out bills like utility bills.
40

41. The Functions of an Organisational Information
System (4)
 Outputting information
 Paper

Till receipts, statements, cheques, internal
reports and almost anything.
 Screen

Data entry screens and reports for managers.

Web-aware applications where pages are viewed
as if on the Internet.
 File

Saving to backing storage.
 Files can be e-mailed as attachments.
41

42. Management Information
Systems
 MIS convert data from internal and external sources into
information for managers.
 The source of data for an MIS usually comes from
numerous databases. These databases are usually the
data storage for Data Processing Systems.
 MIS summarise and report on the organisation’s basic
operations.
 MIS produce reports for managers interested in historic
trends on a regular basis.
 MIS operate at the tactical level.
42

43. Decision Support Systems
 DSS provide information and models in a form to help tactical
and strategic decision-making.
 They support management decision-making by integrating:
 Company performance data
 Business rules in a decision table
 Analytical tools and models for forecasting and planning
 A simple user interface to query the system.
 DSS are useful when making ad-hoc, one-off decisions.
 The sources of data for DSS tend to be a combination of
summary information gathered from lower-level DPS and
MIS.
43

44. Executive Information Systems
 EIS provide senior managers with systems to assist in taking
strategic and tactical decisions.
 Purpose – to analyse, compare and identify trends to help the
strategic direction of the organisation.
 EIS incorporate data about external events. They:
 draw summarised information from internal MIS and DSS.
 filter, compress, and track critical data.
 reduce time and effort required to obtain information useful to
strategic management.
 employ advanced graphics software to provide highly visual and
easy-to-use representations of complex information and current
trends.
 do not provide analytical models.
 EIS allow the user to look at specific data that has been
summarised from lower levels within the organisation and then drill
down to increase the level of detail - data warehouse analysis.
44

45. Expert Systems
 An expert system is a computer program that tries
to emulate human reasoning.
 It does this by combining the knowledge of human
experts and then, following a set of rules, draws
inferences (solutions).
45

46. Expert Systems
 An expert system is made up of three parts:
 A knowledge base stores all of the facts, rules
and information needed to represent the
knowledge of the expert.
 An inference engine interprets the rules and facts
to find solutions to user queries.
 A user interface allows new knowledge to be
entered and the system queried.
46

47. Expert Systems
 Expert systems are used for the following purposes:
 To store information in an active form as
organisational memory.
 To create a mechanism that is not subject to
human feelings, such as fatigue and worry.
 To generate solutions to specific problems that are
too substantial and complex to be analysed by
human beings in a short period of time.
47

48. Organisational Information System
Management Strategies
 Network strategy
 Addresses data transfer, distribution, access and
security, facilities, storage.
 Security strategy
 Deals with access to the network and keeping
unauthorised people out.
 Backup and recovery strategy
 To ensure data is not accidentally erased and that it
can be recovered once backed up.
 Upgrade strategy
 To plan new hardware and software and ensure that
everything new will work properly.
 Software strategy
 Choose between bespoke and standard packages.
48

49. Centralised Database
 A very large and powerful database - at the heart of an
organisation.
 Database program is called the database engine; it
saves and indexes files in tables and manages the
relationships between the tables.
 Information can be found fairly easily by querying the
centralised database.
 Usually a multi-user or network system is used which
means that any user on the system can have access to
the database.
 Advantages to the database being centralised.
 Much easier to organise, edit, update and back-up the
data.
 Communications are easier.
 No real disadvantages to a centralised database.
49

50. Network Strategy
Networks
 LAN (Local Area Network) – in one area.
 Device sharing.
 Software sharing.

Data sharing.

Communication.
50

51. A typical Local Area Network
 A local area network is a computer network across one building or
site.
Work Station Work Station
Printer
Fileserver
Network Cable
Work Station
Work51
Station

52. LAN Topologies
 Topology means layout
 There are various different topologies
 The main ones are:
 Bus
 Star
 Ring
 Mesh
 Tree
52

53. Star network
 All computers are
connected to a central
hub.
 Bottlenecks may occur
because all data must
pass through the
central hub.
 Fast data flow
53

54. Bus network
 All devices connected to
a central cable (bus).
 Easy to install.
 If one machine breaks
down it can be removed
from the network
 Data flow can be slow as
queues can result
54

55. Ring network
 All devices are connected to
one another in the shape of
a closed loop, so that each
device is connected directly
to two other devices, one on
either side of it.
 Fast data flow
 Problems may arise if one
computer breaks down
55

56. Mesh Network
 Fully connected mesh - every node is connected to
every other node.
 Partially connected mesh – not all nodes are
connected.
 Expensive
 Greatest amount of redundancy which means that
routes are always available to pass the data
 Difficult to manage
 Errors can be difficult to detect
56

57. Tree Network
 Series of star networks
 Nodes can be easily added
 Easy to install and wire
 No disruptions if a device fails within a
segment
 Whole segment may fail if the segment
central node fails
 Easy to detect faults
57

58. Network Strategy
 Protocol
 Rules that govern communication across network
 Often called handshake
 Deals with eg.

Data transmission speed, access method, topology,
packet size, cabling
58

59. Ethernet Protocol
 Most common cabled system
 Carrier Sense Multiple Access/Collision
Detection (CSMA/CD)
 Computer senses (listens) to cable
 10/100 Mbps
 Fast Ethernet standard
59

60. Network Hardware
Client-server network
Central server stores data files and log-in
details.
Workstation
server
clients
workstation
workstation
60

61. Network Hardware
Server
A computer or device that manages the network
resources.
File server
Print server
Application server
61

62. Architecture - Application Server
 Server hosts the main programs which are
used by the terminals on the network
 All the users require is a ‘dumb’ terminal
which can send keystrokes/input and receive
screen output from the server.
 Needs a high powered server with a large
RAM to cope with the demands on it.
 Example – Travel Agents viewdata screens
62

63. Architecture - File Server
 The server hosts main programs and data
files for all the work stations to access
 When a work station wants to process data,
the data and the application are transferred to
the work station for processing to take place.
 Little demand on the server as the application
programs which created the files are run on
the work station processor.
 Example – UCAS software 63

64. Client - Server Architecture
 The server hosts dedicated network programs such as
database management and communications
 When a work station (client) wants to process data, it
requests a service.
 The server transfers the data back to the client and it is
then formatted by the client workstation.
 Processing is split between the server and the client.
 Example - EDI
64

65. Network Strategy
Peer-to-peer network (P2P)
 No central server
 All stations equal
 Cheaper
 Files can be shared between computers
 Communication is easy between computers
 Data less secure
65

66. Network Strategy
WAN (Wide Area Network) – over a city, country or the
wide world.
 Uses telecommunications
 Enables one network between branches
 Internet is good example
66

67. The Internet
 Uses Client-Server architecture
 Many host servers transmitting data on a
request basis (client pull)
 Occasionally server transmits data which is
not a direct request from the user (server
push – pop-ups)
67

68. Network Strategy
Distributed networks
 LAN with several servers
 Processing is shared
 Data accessible from all over the network
68

69. Network Hardware
 Hub
 Connects segments of a network together
 Send packets to all segments
 Switch
 Routes packets only to their intended destination
 Router
 Forwards the data packets along the network path
 Repeater
 Regenerates or boosts signals on a network
 Bridge
 Connects two LANs using the same protocols together
69

70. Network Adapter Card (NIC)
 Attached to or Built-in to the computer.
 Allows the computer to send and receive data
around the network.
 Uses MAC addresses to locate the computer
Wireless networking would require a wireless network
hub and each computer would require a wireless
network adapter card
More information on Network Hardware
70

71. Extending Networks
Internet R e m o t e
O f f i c e
R o u t e r
F i l e S e r v e r
R e p e a t e r
S w i t c h
R e p e a t e r
H u b H u b
71

72. Extending a network
Switch
Hub
Hub
Hub
Segment 1
Segment 3
Segment 2
72

73. Repeater
 Allows the connection of segments
 Extends the network beyond the maximum
length of a single segment
 A multi-port repeater is known as a Hub
 Connects segments of the same network,
even if they use different media
 Receives a signal which it cleans up
 Transmits the signal on to the next segment
73

74. Hub
 A central point of a star topology
 Allows the multiple connection of devices
 Can be more than a basic Hub – providing
additional services (Managed Hubs, Switched
Hubs, Intelligent Hubs)
 In reality a Hub is a Repeater with multiple
ports
 Functions in a similar manner to a Repeater
74

75. Bridge
 Like a Repeater or Hub it connects segments
of the same LAN or two different LANS
using the same protocol
 Acts as a ’filter’, by determining whether or
not to forward a packet on to another
segment
75

76. Switch
 Similar to a hub but interprets the
destination of the data packet
 Keeps track of the locations of all attached
devices (just like a bridge)
 Sends the data packet only to its intended
destination
 Similarly priced to Hubs – making them
popular
76

77. Router
 Work in LAN, MAN and WAN environments
 Usually located at Gateways – where two or
more networks connect
 Can interconnect different protocol
networks – Ethernet with Token Ring
 Changes packet size and format to match
the requirements of the destination network
 Determines the ‘best path’
 Share details of routes with other routers
77

78. Advantages and Disadvantages
Repeater
 Advantages – Can connect different types
of media, can extend a network in terms
of distance, does not increase network
traffic
 Disadvantages – Extends the collision
domain, cannot filter data, can not
connect different network architectures,
limited number only can be used in
network
78

79. Advantages and Disadvantages (2)
Hub
 Advantages – Cheap, can connect different
media types
 Disadvantages – Extends the collision domain,
can not filter information, passes packets to
all connected segments
79

80. Advantages and Disadvantages (3)
Bridge
 Advantages – Limits the collision domain, can
extend network distances, uses MAC address
to filter traffic, eases congestion, can
connect different types of media, some can
connect differing architectures
 Disadvantages – Broadcast packets can not be
filtered, more expensive than a repeater,
slower than a repeater – due to additional
processing of packets
80

81. Advantages and Disadvantages (4)
Switch
 Advantages - Limits the collision domain, can
provide bridging, can be configured to limit
broadcast domain
 Disadvantages – More expensive than a hub
or bridge, configuration of additional
functions can be very complex
81

82. Advantages and Disadvantages (5)
Router
 Advantages – Limits the collision domain, can
function in LAN or WAN, connects differing
media and architectures, can determine best
path/route, can filter broadcasts
 Disadvantages – Expensive, must use routable
protocols, can be difficult to configure
(static routing), slower than a bridge
82

83. Network Hardware
 Structured Cabling
 Cables made from copper wire, co-axial cable,
fibre-optic cable and twisted pairs.
 Twisted pair Ethernet is the most common.
 Fibre optic used to link over longer distances and
to carry a very high bandwidth
 Structured cabling attempts to future proof the
network architecture
83

84. Network Software
 Network Operating System – 2 parts
 The version that runs on the server

This is needed to control which users and
workstations can access the server eg. restrict and
control access; to keep each user’s data secure; and
to control the flow of information around the network.

It is also responsible for file and data sharing,
communications between users and hardware, and
peripheral sharing.
84

85. Network Software
 Network Operating System – 2nd part
 The version that runs on the personal computers to turn
them into network stations.

Each workstation (computer) connected to the network
needs the Network Operating System installed before it
can connect successfully to the network facilities.
85

86. Network Software
 Network Auditing and Monitoring Software
 This software keeps a track of network activity.
 It records user activity and workstation activity.
 In a commercial organisation this sort of auditing
and monitoring can be used to detect fraud and
suspicious activity.
86

87. Network Software
 Network Management Systems
 Performance management

Used to control and measure network performance
 Configuration management

Monitors the configuration of different devices attached to
the network
 Fault management

Detects, logs, notifies and corrects network faults
 Security management

Controls user’s access to the network 87

88. Recommend a network strategy for a new school –
similar in size and structure as Rothesay Academy
 What type of data will be transferred on the
network?
 Where is the network to be located?
 Will structured cabling be used?
 What security will be in place?
 What hardware and software will be required?
 What storage will be required?
88

89. Security Strategy
This covers security, integrity and privacy
of data.
 Data security means keeping data safe from
physical loss.
 Data integrity means the correctness of the stored
data.
 Data privacy means keeping data secret so that
unauthorised users cannot access it.
89

90. Security Risks to Information
Systems
 Unauthorised access
 Hacking
 Malware
 Virus, worm, trojan, spyware, dishonest
adware
 Denial of Service
 Theft
 Physical damage
90

91. Unauthorised Access
Also known as Hacking
This is the gaining of unauthorised

access to a computer information
system.
The hacker often alters, steals or

deletes data
91

92. Malware
 This is a piece of programming code that
causes some unexpected and usually
undesirable event in a computer system.
 Viruses can be transmitted
 as attachments to an e-mail

as a download
 on a removable storage being used for
something else.
92

93. Malware
 Some viruses take effect as soon as their
code takes residence in a system.
 Others lie dormant until something triggers
their code to be executed by the computer.
 Viruses can be extremely harmful and may
erase data or require the reformatting of a
hard disk once they have been removed.
93

94. Types of Virus
Trojan
 These are used to sneak in where they're not
expected. A Trojan is a method for inserting
instructions in a program so that the program
performs an unauthorized function while
apparently performing a useful one. Trojan
horses are a common technique for planting
other problems in computers, including
viruses, worms. Often used for fraud as they
are hard to detect.
94

95. Types of Virus
Virus
 A virus is a program which modifies other
programs so that they replicate the virus.
 How? It inserts a copy of itself in the code.
Thus, when the program runs, it makes a
copy of the virus. This happens only on a
single system.
 It can then be copied via removable storage to
other systems.
95

96. Types of Virus
Worm
 Unlike a virus, a worm is a standalone
program in its own right. It exists
independently of any other programs. To run,
it does not need other programs.
 A worm simply replicates itself on one
computer and tries to infect other computers
that may be attached to the same network.
96

97. Phishing
 Employees should be made aware of identity
theft
 Phishing is the criminally fraudulent process
of attempting to acquire sensitive information
such as usernames, passwords and credit
card details, by masquerading as a
trustworthy entity in an electronic
communication
97

98. Spyware
 Spyware is computer software that is installed
surreptitiously on a personal computer to intercept or
take partial control over the user's interaction with the
computer, without the user's informed consent.
 While the term spyware suggests software that
secretly monitors the user's behavior, the functions of
spyware extend well beyond simple monitoring.
Spyware programs can collect various types of
personal information, such as Internet surfing habit
98

99. Adware
 Adware or advertising-supported software
is any software package which automatically
plays, displays, or downloads advertisements
to a computer after the software is installed
on it or while the application is being used.
Some types of adware are also spyware and
can be classified as privacy-invasive
software.
99

100. Denial of service
 This involves flooding an organisation’s
Internet server with a large number of
requests for information (traffic).
 This increase in traffic overloads the server,
which becomes incapable of dealing with the
backlog of requests, and results in the server
crashing or needing to be taken offline to
resolve the problem.
100

101. Theft and physical damage
 Break ins to the building or computer in order
to steal or cause damage
 Personnel damage
 Employees with a grudge
 Employees who accidentally lose or delete data
 Natural disasters
101

102. Policies and Procedures for
Implementing Data Security
Codes of conduct
 These apply to users of an information system.
 Most organisations insist that users follow a set
of rules for using their system.
 Employees have to sign a code of conduct as
part of their conditions of employment.
 A code of conduct can cover basic professional
competences as well as obvious statements
like “Never disclose your password to anybody
else and change your password every week.”
102

103. Policies and Procedures for Implementing
Data Security
BCS code of ethics covers:
Professional conduct
Professional integrity
Public interest
Fidelity
Technical competence.
Password guidelines
Minimum length of 5 characters
Must consist of letters and numbers
Must not contain any words
Must not be the same as the previous password
Must not use easily guessed strings of letters or
numbers (e.g. 123456 and abcdef).
103

104. Implementing Data Security
 Virus protection
 Prevention

Prevent users from using floppy disks.
 Scan incoming e-mails for viruses.
 Do not open mail or attachments from someone you
don’t recognise.
 Detection

Install anti-virus software.

Update it regularly to detect new viruses.
 Repair

Anti-virus software can quarantine a virus.

Can delete the virus code from an infected file.
104

105. Implementing Data Security
 Firewalls
 Device or software used to prevent
unauthorised access to a network.
 Placed between the server and the Internet
connection (router).
 Can block sections of the network.
 Only allows authorised users to join the
network (dial-in).
105

106. Implementing Data Security
Encryption
This is the process of transforming
information (referred to as plaintext) using
an algorithm (called cipher) to make it
unreadable to anyone except those
possessing special knowledge, usually
referred to as a key.
106

107. Encryption
 Used by on-line retailers to keep card details
secure
 Needed in order to gain trust of purchasers
 32-bit encryption almost impossible to crack
 Public-key encryption schemes
 Pretty Good Privacy (PGP)
 Data Encryption Standard (DES)
 Secure Sockets Layer (SSL)
107

108. Implementing Data Security
 Access rights

Read – allows users to read files.

Allows files to be made read only.

Write – allows users to write (save) files.

Create – allows users to create new files.

Erase – allows users to erase files.

Modify – allows users to modify files.
 Groups of users may have.

Read/write/create/erase on home drive.

Read only on shared areas.
108

109. Back-up Strategy
 Every computer user should have a strategy in
place to back-up their data.
 Backing up is the process of making a copy of the
data stored on fixed hard disks to some other
media.
 This can be tape, external portable hard disks,
writeable CD-ROM or DVD.
 The purpose of backing up data is to ensure that
the most recent copy of the data can be recovered
and restored in the event of data loss.
109

110. Archive
 Archiving is the process of copying data
from hard disk drives to tape or other media
for long-term storage.
 Long-term archives are usually stored in a
fireproof safe away from the main site
location
110

111. Recovery
Data verification
 It is important to check that the data stored on
the back-up media can be recovered.
 Special backup and recovery software is used
to recover the data
111

112. Storage methods
 DAT tape on built-in drives on servers.
 USB removable hard drives.
112

113. Frequency and version control
 Full back-up (monthly)
 all data is copied
 Differential (weekly)
 all files that have changed since the last full
backup are copied
 Incremental (daily)
 only files that have changed since the last backup
113

114. Media rotation and storage
 Grandfather-father-son method
114

115. Upgrade Strategy
 Future proofing
 Making sure that a system has a reasonable life
and does not need to be totally replaced too soon
 Hardware & software compatibility
 Will older s/w work with new operating systems, etc?
 Will older h/w work with newer equipment (e.g. printers
with computers)?
115

116. Upgrade Strategy
 Integration testing
 Are the peripheral devices compatible with the
hardware and operating system?
 Does the network software support the hardware
and operating system?
 Is the application software compatible with the
operating system and computer?
 Is the hardware compatible with the operating
system?
116

117. Upgrade Strategy
 Legacy systems
 Old information systems running on out-of-date
hardware and operating systems are often
referred to as legacy systems.
 Problems with legacy systems led to many
computer companies developing software that
conformed to Open Standards.
117

118. Upgrade Strategy
 Emulation
 This allows access to a greater range of
applications that might not be available on
the given hardware platform.
 The use of an emulator allows data to be
transferred between platforms.
118

119. Software Strategy
 Needs to take account of the issues:
 evaluating the software for use, using several key
criteria
 the user support for the software
 the training supplied for end users of the software
 the upgrade path of the software.
119

120. Software Evaluation
 Software evaluation should cover:

Functionality – This refers not only to the number of
features an application program has but to the
number of useable features it has. Also the tasks
to be completed need to be evaluated against the
features in the software.

Performance – The performance of software can be
measured by several different criteria depending
on the type of software.
120

121. Criteria for Evaluation of Software
 Speed  Reliability
 Measured against  Does the job it is supposed
benchmarks. to?
 Usability  Resource requirements
 Look and feel, choices in  Has the computer enough
menus, etc. RAM, big enough disks, etc?
 Compatibility  Portability
 With operating system.  Will it work on different
 Data Migration systems?
 Translating from one
 Support
format to another.  Assistance from vendors or
writers?
121

122. Training in Using Software
 On-the-job
 A new user needs to be introduced to the software.
 This means working through a tutorial to become familiar
with the functions of the software. It usually involves an
online tutorial program or tutorial manual that teaches the
user about the software.
 In-house
 This is when small groups of staff, within the company,
receive a training course delivered by IT staff.
 External
 This is offered by specialist training providers for popular
application software, such as software created by
Microsoft, Macromedia and Adobe.
122

123. User Support
 Manuals
 Installation guide – gives advice on how to install the
software and how to configure it to work with various
hardware.
 Tutorial guide – gives step-by-step instructions on how
to use the software.
 Reference manual – is an indexed guide detailing all the
functions of the software.
 On-line help
 Explains to the user what each feature of the software
does. It is a part of the program situated on the computer
and is not on the Internet.
 On-line tutorials
 Step-by-step instructions on the computer, not on the
Internet.
123

124. User Support
 Help desk
 Internal (end user) and external (software vendors).
 Newsgroups
 A Newsgroup allows users of a piece of software to post e-
mail messages to the wider user community.
 FAQs
 This stands for Frequently Asked Questions. It is usually a
file that contains a list of commonly asked user queries
about a piece of software.
 Manufacturer’s web site
 Often the manufacturer has a web site which hosts FAQ and other
on-line (on the internet) support
124

125. Issues Affecting Decisions to Upgrade
Software
 Lack of functionality
 Business changes, new technology outdates software.
 Hardware incompatibility
 Upgraded computers do not support old software.
 Software incompatibility
 New operating system will not run old software.
 Perfecting the software
 Removing bugs and improving it – will existing data work
with it?
125

126. Learning Objectives
 Distributed databases
 data warehousing
 data mining
126

127. Centralised Databases
 All the data is held on a central
computer mainframe or server.
 Advantages mean it is
 far easier to manage and control if it
is only in one location.
 far easier to back up when it is
centralised.
127

128. Distributed database
 A database that is stored in more than
one physical location on a network.
 Different users can access it without
interrupting one another.
 The DBMS must synchronise the
scattered databases to make sure they
all have consistent data.
128

129. Partitioning
 Where the central database is split over
different areas/locations
 Each remote server has the necessary data
to suit their location
 Vertical - common data (accessed often) is
mirrored to all locations with less common
data held centrally
 Horizontal - Data is split so that each
region/area holds it’s own data
129

130. Replication
 Copies of the entire database are held at all
locations
 Data is processed and held locally
 The central database is then updated with the
changes at regular intervals.
130

131. Data Warehousing
 Historical data transactions are separated out
from the ongoing business.
 The data is re-organised in such a way as to
allow it to be analysed; the newly structured
data is then queried and the results of the
query are reported.
 Data warehousing could be used as a
predictive tool, to indicate what should be done
in the future.
 The main use of data warehousing is as a
review tool, to monitor the effects of previous
operational decisions made in the course of a
business.
131

132. Data Mining
 ‘The nontrivial extraction of implicit, previously unknown, and
potentially useful information from data.’
 It uses machine learning, statistical and visualisation techniques
to discover and present knowledge in a form that is easily
comprehensible to humans.
 Data mining is the analysis of data and the use of software
techniques for finding patterns and regularities in sets of data.
The computer is responsible for finding the patterns by identifying
the underlying rules and features in the data.
 The mining analogy is that large volumes of data are sifted in an
attempt to find something worthwhile (in a mining operation large
amounts of low-grade materials are sifted through in order to find
something of value).
132

133. Information Management Software
 LI – to learn about and become skilled in using:
 Information Management Software
 Classes of software
 Print media, on-line media, spreadsheet, project
management, PIM
 Word processing / DTP software
 Presentation / web authoring s/w
 Spreadsheet software
 Project management software
 Personal information management software
 Evaluation of software
133

134. Information Management Software
 Word processing  Chat client
 Commonest application -  Send and receive messages
Word interactively
 Spreadsheet  Desk-top publishing (DTP)
 Financial and numerical  Layout text and graphics
analysis and record professionally
keeping - Excel  Presentation
 Database  Create slide shows
 Store, select, sort data  Reference
 Graphics design  Encyclopaedias and
 Create and manipulate dictionaries
pictures  Financial
 Browsers  Manage and control money
 Surf the Net  Web authoring
 E-mail client  Create web pages and sites.
 Compose, send and
receive e-mails
134

135. Classes of Software
 There are five classes of software:
 Presenting information for print media
 Presenting information for on-line media
 Spreadsheet (data handling)
 Project management
 Personal information management
135

136. Presenting Information for Print Media
 Most applications are designed to produce printed
output, except for graphics and web authoring which
tend to be more visual.
 Word Processing (WP) and Desk Top Publishing
(DTP) are classed in this group.
 Differences between WP and DTP:
 WP is used for generating text, while DTP tends to use
pre-prepared text.
 DTP manages to handle text and graphics far more
easily.
 WP can deal with multi-page documents but DTP
handles multi-page documents far better.
 DTP files tend to be very large, especially if real pictures
are used.
136

137. Presenting Information for On-line Media
 Presentations
 Large growth in the use of s/w to create presentations.
 Cost of data projectors has dropped.
 Presentation s/w allows the user to create a slide show.
 Slides can hold a variety of multimedia objects.
 Slides can be sequenced - jump to using hyperlinks.
 PowerPoint is most popular package.
 Web authoring
 Software allows users easily to make up web pages.
 You can drag and drop objects onto the screen.
 Click on icons to link graphics and media files.
 Deal easily with hyper-linking.
 File written as HTML or XTML code.
137

138. Data Handling – Spreadsheet
 Education
 Record and analyse marks and results.
 Keeping track of budgets and financial information.
 Home situation
 Keep track of household expenditure, track share values
and even keep track of contacts.
 Very good at formatting output, used for printing address
labels.
 Financial application
 Cash flow forecast, statement of accounts, invoices,
sales orders, purchase orders, etc.
138

139. Data Handling - Spreadsheet
 Modelling and simulation
 Predicting a new situation from existing one - “what-if?”
analysis.
 Statistical analysis
 E.g. analysis of numerical information. Two examples are
Descriptive Statistics and Goal Seeking.
 Macro use
 A macro is a sequence of instructions that can be used to
automate complex or repetitive tasks.
139

140. Project Management
 A project can be any task which can be
completed. Eg. Building a new school
 Projects have a time limit, budget and scope
 Project management software is used to
plan and control a project
140

141. Project Triangle
 The budget is the
estimated cost of a
project
 The schedule is the budget schedule
timing and sequence
of taks within a project
 The scope of a project
defines what is to be
achieved
scope
141

142. Project
 Tasks are individual jobs that have to be
completed
 Milestones are tasks grouped together in
logical blocks
 Timelining is the process of allocating time
and dates to project tasks and milestones
142

143. Project Management Software
 Simplifies the management of a project.
 It enables planning, monitoring and control of the
various tasks or resources that contribute to its
success.
 Activities scheduled to ensure efficiency.
 Plans output as PERT or Gantt chart.
 Software packages
 Microsoft Project; CA SuperProject and Hoskyns Project
Managers Workbench.
143

144. Timelining
 Allocates time and dates to project tasks and
milestones
 Tasks are given names and duration and
priority
 Resources and costs for the task can also be
assigned
 Predecessor tasks are those which must be
completed before another can begin
 Concurrent tasks are ones which can run at
the same time
144

145. Resource Allocation
 Each task must have a resource allocated to
it. Eg, worker, equipment, tools, money
 Software will allocate resources flexibly
 If a resource is needed elsewhere and moved
the software can adjust the schedule to suit
and change the tasks accordingly
145

146. Budget Control
 Each resource is given a cost
 As resources are allocated to a project the
cost of the project can be calculated by the
software
 If the use of the resource changes eg. A sub-
contractor works longer than originally
planned, the costs of the project will change
accordingly
146

147. Project management charts
 Graphically represent the project, its tasks
and its progress
 Gantt charts – project timelines
 Show the timeline at the top and a list of tasks
down the side
 Show dates of the start and end of tasks
 Show float – the amount of time a task may be
delayed before it affects the project finish date
 Network diagrams – PERT charts
 Show task lists and resources using flow diagram
graphics
147

148. Optimisation
 Projects can be optimised in three ways:
 To meet a time schedule

Tasks may be shortened

Tasks may be overlapped
 To meet a specific budget
 Use fewer tasks to reduce costs
 Shorten tasks that need resources
 To meet the requirements of the project scope
148

149. Critical path analysis
 This is the process of identifying the critical
path in a project plan – a series of tasks
which begin when the project starts and finish
when the project is completed.
 These tasks must be completed on schedule
 It is necessary to identify this because any
delay in these tasks will cause a delay in the
project
 Modifying tasks that are not on the critical
path may not affect the schedule
149

150. Personal Information Management
 Personal information management software (PIM) is a
type of software application designed to help users
organise random bits of information.
 PIMs enable you to enter various kinds of textual notes
such as reminders, lists and dates - and to link these bits
of information together in useful ways.
 Many PIMs also include calendar, scheduling, and
calculator programs.
150

151. Word Processing Software
 Data objects
 characters, words
 paragraphs
 graphic objects.
 Operations
 File menu – performed on whole files.
 Edit menu – cut, copy and paste.
 View menu – including headers and footers.
 Insert menu – page break, date/time, picture, etc.
 Tools menu – Mail merge, spelling and grammar, options and
customisation.
 Table menu – Insert table then table operations.
 Window and Help much as in other Windows applications.
 Formatting Functions - Format menu – format text (an
extensive menu).
151

152. Desk Top Publishing
 Standard File, Edit, View, Window, Help.
 Also Layout, Type, Element Utility.
 most of the formatting functions here.
 Also a Toolbox.
 Arrow and Text, basic drawing tools, and a colour
palette.
152

153. Desk Top Publishing
 Advanced operations and functions
 Page Layout
 Headers and Footers
 Columns
 Multi-Page Layout
 Pagination
 Contents and Indexing
 Style Sheets
 Font Selection – Serif v San-Serif
 Colour use
153

154. Desk Top Publishing
 Inserting graphics
 Clip art
 Scanned pictures
 Digital camera
 Formatting graphics
 How graphic behaves on
the page
 Square, tight, in front of,
behind.
A graphic formatted with Tight
Layout means text flows around
it.
154

155. Web Authoring Software
 Page structure
 Individual pages linked to form a site.
 Incorporation of graphics
 Used to enhance appearance of the page.
 Graphics should be JPEG or GIF – size matters.
 Graphics linked to the page (not pasted in).
 Presentation style
 Font selection limited, careful use of colour.
 Navigation
 Pages linked together by Hyperlinks.
 Set Home Page, use arrows, bookmarks, history.
 Templates
 Use style sheets to provide common fonts, colours, etc.
155

156. Presentation Software
 Page structure
 Individual slides follow a linear pattern, can be
hyperlinked.
 Incorporation of graphics
 Used to enhance appearance of the page.
 Graphics inserted into slide, embedded in the page.
 Presentation style
 Font selection vast, careful use of colour.
 Navigation
 Move to next slide by click of mouse.
 Slides can be linked together by hyperlinks.
 Templates
 Various pre-prepared templates available.
 Can make up own template as a slide master.
156

157. Spreadsheet Software
 Data Objects
 Cells and groups of cells
 Containing text, numbers, formulas.
 Operations

File menu – performed on whole files.
 Edit menu – cut, copy and paste.
 View menu – including headers and footers.
 Insert menu – rows, columns, worksheet, functions.
 Tools menu – spelling protection and macros.
 Data menu – Sort, filter and pivot tables.
 Window and Help much as in other Windows
applications.
 Foramtting Functions - Format menu – format cells
including numeric like currency as well as standard text
formatting.
157

158. Spreadsheet Software
 Advanced functions
 Goal seeking

Automatically change values until desired result achieved.
 Forecasting
 Calculates or predicts a future value by using existing
values.
 Look-up tables

Can be used to insert text in a cell depending on a value.

E.g. Grades or Pass/Fail from an exam mark.
 Nested IF
 Using an IF function within an IF function.
 Count
 Gets the number of entries in a range of cells (COUNTA for
text values).
 Macros
 A sequence of instructions that can be used to automate a
task. 158

159. Project Management
 Timelining
 Shows how and when a task needs to be completed
before the next one starts.
 Resource allocation
 Software tools to help match up the materials, machines,
people and money.
 Maximising profits or achieving best quality.
 Gant and PERTT charts
 Gant shows timings of each activity in a chart.
 PERTT shows relationship between activities.
 Optimisation & Critical Path Analysis
 A mathematical process concerned with the optimisation
of time.
 Used for very complicated processes (managing a
production line).
159

160. Personal Information Management (PIM)
 Such as Microsoft Outlook:
 Contacts - can be thought of as a very comprehensive
address book.
 Calendar - lets the user keep a diary of events,
meetings, appointments and activities.
 Task list - also called a “To-do list”. It keeps a list of all
the tasks that require to be carried out and reminds the
user when each task is due to be completed.
 Communication – e-mail. Most PIM applications
support sending, receiving and management of emails.
160

161. Evaluation of Software
 Range of Data Objects
 Are the objects appropriate to the software?
 e.g. graphics and audio files important for web design.
 Range of Operations
 Appropriate to software – database should have good search
and sort and reporting.
 Formatting Functions
 Look at fonts, style, graphics handling, paragraphing, text wrap,
numerical formats, etc.
 HCI
 Use of keyboard commands, menus, toolbars and icons.
 Help and Tutorials
 Most packages have on-line help and tutorials.
 Often displayed as web pages but are NOT on the Internet.
161

162. Example using Word Processing
Objects: Formatting Functions:
 characters, words, sentences,  change size, colour, font, style of
paragraphs, document, section, text
footnote, column  line spacing, margins
 header footer, line page  number of columns
 text box, graphic, chart  size of cells in table
 table, table of contents, index  shading of cells
Operations:
 create, insert, delete, search,
HCI:
format  familiar toolbar
 align, search and replace,  shortcuts, eg ctrl P
spellcheck  customize toolbars
 cut, copy, paste  customize menu
 page numbering  on-line help
162

163. Implications of ICT
LI – you will learn about:
 Social implications
 Legal implications
 Economic implications
 Ethical implications
163

164. Social Implications
 Ease of access and availability
 Information rich / poor
 Impact of IS on social structures
 Educational qualifications and ICT
 Knowledge workers
 Online retail
 Globalisation
 The impact on business of an IS-driven business model
 Identities and personas
 Privacy
164

165. Globalisation
 Technological changes
 Removal of trade barriers
 E-commerce advantages
 Customer services
165

166. Ease of Access and Availability
 Access to Internet at work and home.
 Digital satellite TV with all its services.
 Access to magazines, books & newspapers.
 Access in social lives – libraries and Internet
cafes.
 We expect Internet access on holiday and in
hotel rooms.
 Fact – There are more telephones in the city
of New York than the continent of Africa
(and telephones give access to information).
166

167. Information rich/Information poor
 Information rich – They will:
 Have easy access to computers and electronic
communications.
 Get information and news from the Internet
 Buy the latest products through on-line shopping.
 Follow computer-based learning and skills training courses at
home.
 Look for jobs that are advertised solely on the Internet.
 Find it easier to get well-paid jobs and will enjoy a more
comfortable and secure life-style.
 Information poor – They will not:
 Have easy access to computers.
 Have the IT skills and confidence to take part in teleshopping,
telebanking, Internet chat and news groups.
167

168. Impact of IS on Social Structures
 Families
 Feel more secure with two wages coming into the family.
 More mothers have careers and they may not have any
children till they are 30 or older.
 Is this change in family patterns partly caused by
computerisation?
 Are there any risks to the family and to society as a whole
from this development?
 Banks
 Used to be paper based and only for middle and upper
classes – for reasons of wealth and trust.
 Use of IT means anyone can have a bank account –
transaction processing and high levels of security.
 Now widespread use of plastic money – credit and debit
cards.
168

169. Educational Qualifications and ICT
 Educational qualifications
 Qualifications in Computing since the early 1960s, but
these were solely in universities and colleges.
 By mid-1980s computing was available in schools.
 By 1999 the two strands of software and hardware
divided into Computing and Information Systems.
 Now there are very many different courses offered at
degree and NC level, all related to ICT.
 Need for ICT awareness
 ICT lets people vote by text on game shows, shop on the
Internet, use digital TV to order goods.
 Families send digital photos round the world.
 Almost all office jobs and professionals need to use ICT.
169

170. Knowledge Workers
 Knowledge worker
 A person who adds value by processing existing information to
create new information that could be used to define and solve
problems.
 Examples of knowledge workers
 Lawyers, doctors, diplomats, law-makers, software developers,
managers and bankers.
 People who use their intellect to convert their ideas into
products, services, or processes.
 Problem solvers rather than production workers.
 Use intellectual rather than manual skills to earn a living.
 Core knowledge workers
 Those in specific ‘knowledge management’ roles.
 Knowledge managers, librarians, content managers, information
officers, knowledge analysts, etc.
 Everyone else
 All the other knowledge workers – everyone engaged in some
form of ‘knowledge work’. 170

171. Online Retail
 Internet shopping – the here and now.
 Young people much more likely to shop online than
older people.
 Young people spend on low-value goods (CDs,
DVDs, books and hair straighteners).
 Older people spend on high-value items like holidays
and make repeat grocery orders.
 Why Internet shop?
 Goods can be difficult to buy locally.
 Goods are often much cheaper.
 National chains carry the same goods – the Internet
gives wider choice.
171

172. Advantages and Disadvantages of Online Shopping
 Consumer advantages
 More choice of goods online.
 Cheaper prices.
 Home delivery – Grocery shopping on-line very useful for young
families.
 Consumer disadvantages
 Often long delivery times.
 Temptation to spend more money than intended.
 Social isolation (supermarkets are the new social scene).
 On-line Retailer advantages
 Can reach a far wider audience.
 Doesn’t need expensive showrooms.
 Doesn’t need to employ trained sales staff.
 On-line Retailer disadvantages
 Must spend money on a website with secure payment system.
 Must accept a high rate of returns.
 Never meets customers. 172

173. The Changing Relationships between
Retailer and Customer
 Shoppers are:
 Becoming intolerant of goods being unavailable or out of stock.
 Very wary of over-pricing and long delivery times.
 Consumers are:
 More willing to go online and order from different retailers.
 Willing to use a credit card to buy online
 Aware of the stress of waiting for goods bought when presents
don’t turn up on time.
 We still maintain relationships:
 With local specialist shops.
 Customers who buy their groceries on-line and have the same
delivery driver every week often build up a good relationship with
the driver.
 In general:
 The two types of shopping can complement each other, opening
up new markets to specialist retailers and giving more choice to
customers. 173

174. Globalisation
 Globalisation
 Is the growing integration of economies and societies around
the world.
 Has been a hotly debated topic in economics.
 Positive aspects
 Rapid growth and poverty reduction in China, India, and
other countries that were poor 20 years ago.
 Negative aspects
 It has increased inequality.
 It contributes to environmental degradation.
 It is most conspicuous in huge companies producing
products as diverse as oil, Cola and burgers.
174

175. Impact of IS on Business and Societies
 Multinational companies
 As diverse as Cola and Oil technology.
 Achieved globalisation through the use of information
systems.
 Originally a few large companies with mainframe
computers.
 Confined to major US networks and European cities.
 Present-day examples of globalisation
 Smaller companies have global presence.
 Communicate via dedicated worldwide intranet.
 Publish reports, memos, etc & e-mail round the
world.
 Don’t need mainframe systems.
 Use web and mail servers to communicate. 175

176. The Impact on Business of an IS-Driven
Business Model
 Traditional businesses
 Have embraced IT with open arms.
 Have had IT forced upon them and adapted.
 Modern IS-driven businesses
 Companies without High Street branches.
 Call centre based companies.
 Advertise heavily on TV.
 Much lower overheads than maintaining a network of
branches.
 Call centres can bring employment to smaller towns
rather than cities.
176

177. Identities & Personas
 Using the Internet as a medium of communication
 Change is having a dramatic impact on people’s lives.
 Ability to communicate with anyone regardless of age, sex,
location, background, etc.
 The Internet allows people to develop different identities and
personas when communicating.
 Can join chat rooms and newsgroups and offer an expert
opinion even when not an expert.
 Disadvantages
 Criminal offence of “grooming” via the Internet.
 Parents wary of letting teenagers have use of the Internet.
 Fear of the Internet among certain groups in society.
 Read about
 Jonathan Lebed and Marcus Arnold (either online or in the
notes).
177

178. Privacy
 Private communications across the Internet
 Should be secure and safe.
 We feel we have a right to this privacy.
 Websites we visit should be our business.
 National security or criminal actions
 Terrorists use e-mail, mobile phones and the Internet to
communicate amongst themselves.
 Criminals use the Internet to host websites.
 What about our privacy?
 Security organisations can scan all e-mail and mobile
phone messages looking for tell-tale phrases.
 FBI caught thousands of paedophiles across USA and
Europe via their IP address and phone number.
178

179. Learning Intentions
 Know about the different Acts of Parliament
which affect ICT
 Know the main principles of each Act
 Know when an Act should be applied
179

180. I am looking for…
 A PowerPoint presentation which:
 correctly describes the purpose of an Act of
Parliament affecting ICT
 Gives the main points or principles of the Act
 Details the rights of each party
 Details exemptions to the Act (if applicable)
 Details of penalties
 Describes situations when the Act might be
applied
180

181. Legal Implications of Information
Systems
 The Data Protection Act 1998
 Computer Misuse Act 1990
 Copyright Designs and Patents Act 1988
 The Regulation of Investigatory Powers
Act 2000
 The Freedom of Information Act
(Scotland) 2002
 Health and safety regulations
 Fair Use Policy (not legislation)
181

182. The 1998 Data Protection Act
 The 8 data protection principles
 Personal data shall be processed fairly and lawfully.
 Personal data shall be obtained only for lawful purposes.
 Personal data shall be adequate, relevant and not excessive.
 Personal data shall be accurate and kept up to date.
 Personal data shall not be kept for longer than is necessary.
 Personal data shall be processed in accordance with the rights
of data subjects.
 Appropriate measures shall be taken against unauthorised or
unlawful processing of data.
 Personal data shall not be transferred to a country outside
Europe.
 In the UK, data must be registered with the Data
Commissioner.
182

183. The 1998 Data Protection Act
 Unconditional exemptions:
 Data related to national security.
 Data which by law has to be made public (e.g. the voters’
roll).
 Data held by the Police and National Health Service.
 Conditional exemptions:
 Mailing lists (names and addresses).
 Data used for calculating and paying wages.
 Information used for club memberships.
 Data used by a data subject at home.
183

184. The 1998 Data Protection Act
 Rights of data subjects:
 To see any personal data stored either electronically or
manually about them.
 The data controller may ask that a small fee be paid to cover
their costs in providing the data.
 To have their data corrected if it is inaccurate.
 To prevent their data being used by companies to send them
junk mail.
 Responsibilities of data users:
 Have to register with the Data Protection Registrar if they wish
to hold personal information about data subjects.
 They must be willing to let data subjects see data held about
them, and must amend any false data without charge.
 Data users must also be willing to remove subjects’ names and
addresses from mailing lists if asked to.
184

185. The 1998 Data Protection Act
 Changes from the 1984 Act:
 The 1984 DPA had certain shortcomings:
 It only covered data in electronic form.
 Companies could circumvent certain provisions.
 It had no European or worldwide dimension.
 There was no obligation on data users to tell the data
subjects that they held any data about them.
 The 1998 Act:
 Covers the transmission of data in electronic form,
which was not really an issue in 1984.
 Harmonised the European Union Data Protection
legislation.
 It also made it a requirement of the Act to ask for the
prior consent of data subjects to have data held about
them, and it included paper-based records.
185

186. Computer Misuse Act
 The Act contains three sections covering:
 Unauthorised access to computer material
 Basic hacking – e.g. breaking into the school network,
locking a user out of the system, etc.
 Unauthorised access with intent to commit or
facilitate commission of further offences
 Where a computer system is used to help commit a crime.
 Unauthorised modification of computer material
 Expert hacking – modification of data without permission.
 Also covers the transmission of viruses.
186

187. Copyright, Designs & Patents Act
 Software licencing
 Software can be legally installed on as many computers
as the licence allows.
 Shareware can be used legally for 30 days then either
paid for or deleted.
 Freeware can be downloaded and used free of charge.
 Computer applications
 Databases can store vast amounts of copyright data.
 Act covers extracts from computer databases.
 Plagiarism to copy work directly from the Web.
 Music downloads must be paid for and copyright
checked.
 Software piracy a crime - FAST.
187

188. The Regulation of Investigatory Powers
Act 2000
 Gives powers to:
 Police, Special Branch, GCHQ and MI5.
 Organisations are allowed to monitor employees, e-mail and
Web usage.
 It also provides powers to help combat the threat posed by rising
criminal use of strong encryption to try to break into electronic
transactions.
 The Act contains 5 parts
 It allows the authorities to monitor our personal e-mail and
Internet usage. So businesses, local authorities and
government departments can and do monitor internal e-mails.
They can also monitor Internet usage of staff, students and
pupils.
 It sounds very “Big Brother”.
 May enrage and disturb many people to realise this.
 But when terrorists can be anywhere in our society it may be a
relief to know that the authorities are taking active steps to catch
them. 188

189. The Freedom of Information Act (Scotland) 2002
 From 1 January 2005
 General right of public access to all types of 'recorded'
information held by public authorities.
 Sets out exemptions from that general right.
 Places a number of obligations on public authorities.
 The Act applies only to 'public authorities' and not to private
entities.
 Public authorities include Government departments, local
authorities and many other public bodies, and also schools,
colleges and universities.
 The Act is enforced by the Scottish Information Commissioner.
 Responsibilities of public authorities
 Required to adopt and maintain a Publication Scheme.
 This sets out the classes of information available (e.g.
prospectuses, almanacs and websites); the manner in which
they intend to publish the information; and whether a charge will
be made for the information. 189