BBAF11052 - Information Technology

Handout No: 01

Y. Achchuthan (achchuthany@univ..jfn.ac.lk)

Learning Outcome :
- Define the terms data, information, Information Technology (IT),
and Information and Communication Technology (ICT)

Information Technology (IT) may be defined as the technology

that is used to acquire, store, organise, process, and disseminate
processed data which can be used in specified applications.
Information is processed data that improves our knowledge,
enabling us to take decisions and initiate actions.

Data, Information, and Knowledge

Data consists of raw facts, such as an employee number, total

hours worked in a week, inventory part numbers, or sales orders.
As shown in FIG. 1.2, several types of data can represent these
facts. When facts are arranged in a meaningful manner, they
become information. Information is a collection of facts organised
and processed so that they have additional value beyond the value
of the individual facts

 Data: Raw facts

Information: Collection of facts organised in such a way that
they have additional value beyond the value of the facts
themselves
Process: Set of logically related tasks performed to achieve a
defined outcome
Knowledge: Awareness and understanding of a set of
information

Example 1.1 Let us take a very simple example. A home-maker

who buys vegetables, provisions, milk, etc., everyday would write
in a diary the money spent on each of these (see Table 1.1). At the
end of each day she adds up the data on money spent for these
items. The total obtained is the information which she uses to
adjust expenses to spend within her budget. This is illustrated in
the block diagram of Fig. 1.1.

Write in a Add expenses Total daily

Expenses
diary each day expense

Data Stored data Processing Information

FIG.1.1 Data and information.

 Expenses in rupees
Date
Vegetables Milk Provisions Miscellaneous Daily total

1.1.2021 25.50 20.00 95.00 150.00 290.50

2.1.2021 30.40 20.00 85.40 250.50 386.30
3.1.2021 15.50 25.00 128.00 80.00 248.50
. . . . . .
. . . . . .
31.1.2021 19.50 20.00 25.0 15.0 79.50

Total 750.50 650.00 2800.50 2852.50 7053.50

Table 1.1 Daily Expenses

Observe that data is the raw material with which she started, and
information is processed data that allows her to initiate action to
balance her budget.
The data entered in the diary each day may be processed
in other ways too to obtain different information. For example,
if the total monthly expense on milk is divided by the monthly
income, it gives information on the proportion of the budget
spent on milk. This is shown in Fig. 1.2.

Total monthly income Proportion of

income spent
Expense on milk
Total monthly expense on milk (Output
Monthly income
on milk (Input data) information)

(Processing)

FIG. 1.2 Information as input data.

This information may be useful to manage the family income

in a more efficient manner. Observe that the information
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obtained in Fig. 1.1 is used as data in Fig. 1.2. This illustrates that
the distinction between data and information is not always clear.
The point to be emphasised is that mere facts and figures about
activities do not enable one to take decisions or to initiate
actions. Only when they are processed and presented in an
effective manner, they become useful.

The Characteristics of Valuable Information

If information is not accurate or complete : People can make

poor decisions, costing thousands, or even millions, of dollars
Information can be of little value to the organisation: If
information is not relevant, not delivered to decision makers in a
timely fashion, or too complex to understand

 1. TYPES OF DATA

In Examples 1.1, the data was numbers. This is the simplest

data type and historically the earliest data type to be processed.
The versatility of IT comes from the ability to process a variety of
data types (Fig. 1.2).
Data

Numbers Text Image Audio Video

FIG. 1.2 Types of data.

Some additional data types, besides numbers, are:

1.1. Text: For example, a paragraph in this book is textual
data.
1.2. Picture or image: For example, your photograph (both
black and white and colour)is image data. Other types of
images are a map of India, a fingerprint, a line drawing,
an image transmitted by a satellite, and an X-ray of your
chest. Their common feature is that they are two-
dimensional objects. In the literature the terms picture
and image are used interchangeably.
1.3. Audio or sound: For example, speeches, songs,
telephone conversations, street noise, etc. Their main
property is that they are waveforms whose amplitude
vary with time and cause pressure waves in the air which
enter our ears and we hear the sound.
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 1.4. Video or moving pictures: When a number of pictures

(each one slightly different from the other) are shown one
after another at a rate of about 30 to 60 pictures per
second, due to persistence of vision, we have an illusion
of movement. The most popular examples of video are
movies such as silent movies starring Charlie Chaplin in
the 1930s. Another example is animation used in
computer games. Video is usually combined with audio
to give a better effect, for example, computer games with
background noises synchronised with the images.

In modern Information Technology, all these types of data are

required to be processed. All these data types taken together
are called “multimedia”.

1.1. Text Data

In order to process this data type, we should be able to read

or enter text data into a computer, process them, and display and
distribute (on request) the results of processing to the outside
world. We first begin by considering text data.

Example 1.2 Word Processing One of the most important

applications of IT now is word processing. In this application a
rough draft of a text (may be an essay) is typed using the
keyboard of a computer. A number of commands are also given
along with the text to format it, i.e., right-justify the text, arrange
the text as paragraphs, italicise some words, check spelling, etc.
The data type in this example is a string of characters or a text.
The output is formatted text which has a neat appearance and is
thus easy to read.

 A word processor also does many other interesting tasks. For

example, it detects spelling errors and (if you command it)
corrects them. Some word processors also examine the
construction of a sentence and gives suggestions to improve the
sentence.

Example 1.3 Dictionary Another interesting aspect of IT is the

way it is able to enhance our ability to perform many day-to-day
tasks. For example, if you do not know the meaning of a word you
refer to a printed dictionary. Words in a dictionary are arranged
alphabetically to enable you to search the word quickly.
Nowadays, dictionaries are published not only in printed form but
also in computer readable form, either on the web, or using a
Compact Disk Read Only Memory (CDROM), which is similar to
the music CDs you buy in the audio shops. The words are now
arranged not only in an alphabetical order but each word is also
linked with words with similar meaning. Thus, if you want to find
the meaning of a word, you type it using the keyboard of a
computer and its meaning is displayed. No manual searching is
needed. Not only do you get the meaning but also a list of other
words that have the same or similar meaning. This will allow you
to pick the right word that meets your requirement.
There are also other interesting things that are done by the
designers of the computer readable dictionary. Every word is
linked not only with words having a similar meaning but also with
those that have an opposite meaning. For example, the word
"early" is linked with words such as "punctual", "prompt", etc., that
have a similar meaning. It is also linked with words such as "late",
"tardy", "delay", that have an opposite meaning. Given a word,
this linking will allow you to search for words with opposite
meaning. Besides this, very complex processing rules may be
programmed. For instance, one may also search and collect
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words that have common endings (or suffix), for example,

"tamperproof', "waterproof', etc., that allows you to pick all words
that end with the suffix "proof'. The point we wish to stress is that
Information Technology provides you with many new
opportunities to perform day-to-day tasks in many new ways. You
have to understand how to organise data and how to develop
suitable processing rules to retrieve data to meet specified
requirements.

Example 1.4 Web Search In pre-internet days if you wanted to

find the definition of a term, you searched encyclopaedias.
Nowadays you search the World Wide Web by typing the term. I
wanted a definition of Information Technology and typed using
Google (a search engine): define Information Technology. I got
25,300,000 hits, namely, websites with the words Information
Technology. The first site was web definitions of Information
Technology. I clicked it and got 15 definitions. I reproduce five of
them below:
• The branch of engineering that deals with the use of
computers and telecommunications to retrieve and
store and transmit information.
• Information Technology (IT), as defined by the
Information Technology Association of America (ITAA),
is "the study, design, development, implementation,
support or management of computer-based
information systems, particularly software applications
and computer hardware".
• The term "IT" encompasses the methods and
techniques used in information handling and retrieval
by automatic means. The means include computers,
telecommunications and office systems or any
combination of these elements. computer-based
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 information systems, particularly software applications

and computer hardware".
• The term "IT" encompasses the methods and
techniques used in information handling and retrieval
by automatic means. The means include computers,
telecommunications and office systems or any
combination of these elements.
• The industry or discipline involving the collection,
dissemination, and management of data, typically
through the use of computers.
• A broad term used to refer to any form of technology
used to create, transfer, or store information in all its
various forms (text, images, sound, multimedia files).

Obviously there is no "standard" definition of Information

Technology. After studying these, I came up with my own
definition given at the beginning of this chapter. The
problem with searching for information on the World
Wide Web is that a very large number of results are
retrieved. They are not always reliable and judgement is
necessary to filter and pick what you consider
appropriate. Besides this, the results given by search
engines vary from day to day.

1.2. Image Data

"A picture is worth a thousand words" is a common saying.

Thus, pictures or illustrations are integral parts of most articles in
magazines, books, etc. Picture data are of two types —line
drawings such as Fig. 1.1 of this chapter or photographs of
persons, places, etc. Both types of data require storage and

processing. An example is a bad photograph which requires

processing to give a clearer picture. In this case the poor
photograph is the input and the processed clear photograph the
output. Another example is the picture of a part of earth's surface
taken from a satellite as input and a map marked as areas with
forests, lakes, towns as output obtained by processing the image.

Example 1.5 Fingerprint Recognition An example of image

processing is fingerprint recognition. Fingerprints of a number of
known criminals are taken. The print is a black and white image.
These fingerprints are stored in a computer's storage. When a
fingerprint is found at a place where a crime has been committed,
it is compared with those stored in the computer's storage.
Fingerprint experts give a method of comparison of the prints,
and this is used by a computer program for comparing
fingerprints. This reduces considerably the time to search the file
and identify prints of those persons whose prints are close to the
ones found at the place where a crime was committed. Currently
available algorithms for fingerprint identification have excellent
recognition. They correctly identify the person involved in more
than 95% of the cases.

Example 1.6 Photo Albums All of you have albums of old

family photos, both black and white and colour, taken before
digital cameras were available. Unless you stick them in albums,
classify and index them carefully, it is very difficult to quickly
locate and show a specific photo, such as the ones taken during
your tenth birthday in 1990. It is now possible using a Personal
Computer (PC) at your home equipped with a scanner to convert
all photographs to a form that can be stored in your computer's
memory. If you index the photos and organise them in the store, it
will be very easy to retrieve a specific picture in less than half a
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second and display it on the screen of the PC. We will learn how
this is done later in this book.
Nowadays photographs are taken using digital cameras or
mobile phones. The pictures are colour pictures that are stored in
camera's or mobile phone's memory. The camera or the phone
can be connected to a PC with an appropriate connector or by
wireless and the pictures copied into the PC's memory. The
pictures can then be annotated with information such as date,
place and occasion when they were taken. They can then be
organised for easy retrieval. It is also possible to organise a
slideshow of pictures using software which is available in PCs

Example 1.7 House Plan Another example of an image is the

plan of a house. A house plan is normally made up of straight
lines, small circular arcs and other regular geometrical shapes. It
can be easily drawn, stored and modified by a computer
program. Given a plan it is easy to calculate the floor area, the
cost of flooring, etc.

1.3. Audio Data

Audio or sound data such as music and speech is used by us

every day. Audio data also needs processing.
Example 1.8 Cockpit Voice Recorder Conversations between
persons in the cockpit of an aircraft and flight controllers at
airports are routinely recorded in a "black box" during every flight
of an aircraft. If there is an air crash, this record is converted to
digital form, processed to remove the background noise, and
improve the clarity of recorded speech to assist investigators.

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 Example 1.8 Digital Audio Recording Music recorded in old

audio cassette tapes are re-recorded digitally after removing
background noise and enhancing their quality. These records can
be compressed to a form called MP3. This enables a few hours of
music to be stored on a single CD or a pen drive. Audio players
called MP3 players are now available to play this digitised
compressed music.

Example 1.9 Music Synthesis Computers are nowadays used

to synthesise music using basic notes. The synthesis can be done
using many innovative ideas resulting in interesting new tunes.

Example 1.10 Internet Telephone Voice data is now

transmitted using the worldwide network of computers called the
Internet. Telephone calls to foreign countries are much cheaper
now.

1.4. Video Data

As we saw earlier in this chapter, a moving picture or video

consists of a sequence of still pictures which are projected in
rapid succession. Video data is often synchronised with audio
data as in a motion picture.

Example 1.11 Movie Applications An example of video data

processing is putting colour on old black and white movies.
Another example is dubbing a movie with a sound track in a
language that is different from the original language in which the
movie was taken. It is even possible to create movies by using
computer generated characters. For example, a movie "Toy Story"
was produced using this method.

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 Example 1.12 Image Morphing Morphing of images on a

VDU screen is a process by which successive images smoothly
change from one frame to the next giving an illusion of
transformation of one type of image to another. For example, the
image of a young girl gradually becomes old and is then
transformed into that of a lion! This type of transformation of
images is often shown in television advertisements.

SIMPLE MODEL OF A COMPUTER

In Section, we have seen that we deal with not only numbers

but also text, images, audio and video as shown in Fig. 1.2.
Information Technology is concerned with:
1. Acquisition of data
2. Storage of data
3. Organisation of data
4. Processing of data
5. Output of processed data, i.e., information
6. Dissemination or distribution of information.

If a machine is to be a versatile data processing machine it

should:
• be able to acquire or read data of all the five types, i.e.,
numbers, text, images, audio and video and also be able to
read instructions to process the data.
• have the facility to store and organise data. The amount of
data storage required is quite large—trillions of characters
nowadays. It should also be able to store the instructions to
process data.
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 • be able to process data. Data is processed by interpreting

and executing a set of instructions called a program, stored in
the machine's primary memory unit.
• have devices to output the processed data. Remember that
output data can be numbers, text, audio, image, or video.
Sometimes the results may also be stored in the storage unit for
future use (see Fig. 1.3).
• be easily connectable to other computers using
communication networks for widely disseminating information.

Disseminate
Input data ACQUIRE STORE PROCESS OUTPUT
results

Numbers Data Data Data Result Numbers

Text acquisition storage processor display Text
Images units units (usually units Images
Audio called a CPU) Audio
Video Video

FIG. 1.3 Various steps in data processing.

Such a machine has a structure shown in the block diagram of

Fig. 1.4. It has an input system which is used to acquire data from
the external world and convert it into a form that can be stored in
its storage system. There are a variety of input units ranging from
a keyboard and mouse to specialised data acquisition
systems such as video cameras, microphones, and
scanners. The collection of input units constitutes the
input system.

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Computer-Based Information Systems

A computer-based information system (CBIS) is a single set of
hardware, software, databases, telecommunications, people, and
procedures that are configured to collect, manipulate, store, and
process data into information.

The components of a CBIS are illustrated in Figure 1.4.

Information technology (IT) refers to hardware, software,
databases, and telecommunications. Telecommunications also
includes networks and the Internet. A business’s technology
infrastructure includes all the hardware, software, databases,
telecommunications, people, and procedures that are configured
to collect, manipulate, store, and process data into information.
The technology infrastructure is a set of shared IS resources that
form the foundation of each computer-based information system

FIG 1.4 The Components of a Computer-Based

InformationSystem

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 Hardware: Computer equipment used to perform input,

processing, and output activities
Software: Computer programs that govern the operation of
the computer
Database: Organised collection of facts and information
Telecommunications: Electronic transmission of signals for
communications
Networks: Connect computers and equipment in a building,
around the country, and around the world
Internet: World’s largest computer network
People: Manage, run, program, and maintain the system
Procedures: Strategies, policies, methods, and rules for using
a CBIS

Information and Communication Technology

We learnt that we can get information by processing data and

that information can be used to make decisions and arrive at
conclusions. When we exchange the information among different
people or among different systems, it is called communication of
information.Man has been processing and exchanging
information since ancient times. But he had to face many
difficulties and obstacles in data communication. But today it has
become an easy task with the advancement of technology.Today,
technology is used in various ways to convert data into
information and then to exchange them. This is called Information
and Communication Technology (ICT).

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 BBAF11052 - Information Technology

Handout No: 02
Y. Achchuthan (achchuthany@univ.jfn.ac.lk)

Learning Outcome :
- Assess the uses of information technology in business and real-
life environments

2. Uses of Information Technology in Business

Information technology refers to the tools or machines that

makes the completion of work easy. It involves the use of
computers and other technological equipment to store, retrieve
and transmit data.
Business refers to an organisation involved in the buying and
selling of goods or services to the customers.
The success of any business depends on some important
factors and choosing the right information technology is one of
those significant factors. It is well known that the organisation who
invest in technology, choose the correct future. They have a vision
to leads the market share and profit.
Information technology is the only technology which provides
the opportunity to analyse the specific user data and plan the
future business journey accordingly.

2.1. Social Networking

This can be described as the most common and most
important use of information technology. IT has helped to
bring the society together, ensuring that strong
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 relationships are formed and maintained. Social media sites,

such as Facebook, are a good proof of this.

2.2. Management of Departments

When computers were invented, the business world
underwent a tremendous transformation. Computer
software is now being used to ensure the smooth running of
different departments in organizations. These departments
may include security, human resources, among other
departments.

2.2.1. Ensuring Success in the Global Market

Software packages are used by businesses to get jobs
done faster and easier. This way, businesses, and
industries gain a better and quick outlook of the global
markets. Information technology is also used to manage
these software packages.

One of the main advantages of information technology in

business is the ability for companies throughout many
different industries to advertise their products and
services via the Internet. Almost every website contains
advertisements surrounding the site's primary content.
Often these sites feature links from which, with a single
click of a mouse or tap on a touchscreen, people can find
information about the company whose ad they have
clicked on.

By making information so easily accessible, advertisers

may benefit from a much larger volume of traffic to their
own sites and thus greatly increase the chances of
someone taking advantage of their goods or services.
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 Companies are even able to communicate with or reach

out to people all over the world, thereby increasing
exposure to their ads without having to pay an exorbitant
amount of additional advertising costs.

2.3. Online Businesses

The development of information technology has led to the
growth of online businesses. More customers are
demanding faster access to their purchased items. Due to
this, online business platforms have been created to help in
keeping up with the demand and supply. A good example
of such a platform is Amazon, which uses information
technology to make online transactions with customers.

2.4. Education System

Information technology has found applications in the
modern-day education system. Online classes are now
being offered in almost every school. Students can access
these classes from anywhere, using laptops, smartphones,
or even tablets. Information technology has indeed made
learning easier.

2.5. Online Bank Transactions [video]

Information technology is used to ensure that online
Internet transactions are kept safe and secure. Security
networks and programs are used to enhance the safety of
these transactions. In the absence of information
technology, secure online bank transactions would be
almost impossible.

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 2.6. Facilitates Sending and Receiving of Money

Sending and receiving of money has now been made both
easier and faster, by information technology. Online
businesses of any field can now open websites with ease,
without the need for registering. If the business owner
intends to make transactions, they can use registered online
platforms, such as eBay and Amazon.

2.7. Easier Access to Credit

Due to information technology, a person’s credit scores and
ratings can be found securely online. Lending and insurance
companies can, therefore, make quick credit checks on
businesses or individuals, facilitating the easier opening of
credits.

2.8. Helping in Decision-Making

Most businesses make use of information technology when
making decisions, sometimes even unknowingly. For
instance, IT is used in understanding important metrics, such
as specific clients with overdue accounts.

2.9. Supporting Innovation

In the workplace environment, there will always be research
being conducted. And, without the Internet, which is an
information technology tool, research conducted would be
meaningless. IT is, therefore, very important for research and
innovation to happen.

2.10. Agricultural Industry

ICT has created a new revolution in the field of agriculture.
Today ICT is extensively used in agriculture, animal
husbandry and fisheries industries.
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 ICT for farming:
A range of automatic machines are available today to ease
the work of the farmer who worked hard in the field. These
machines not only ease the work of a farmer but also
enables him to produce high quality yields.
Below are some of the machines used for agriculture in
developed as well as developing countries.

2.11. Transport
We can quote some of the systems which are used to
enhance the road traffic by minimising traffic jams.
Closed Circuit TV (CCTV) : This system which uses the CCTV
(Closed Circuit TV) is helpful in monitoring the road traffic,
accidents, illegal activities and take appropriate actions
accordingly.
Traffic Light Control System : These automated lights are
positioned at road junctions. These lights help in minimising
accidents by controlling the vehicle traffic and pedestrians.

2.12. Entertainment
Various ICT devices and equipment have been invented to
provide some peace of mind to human beings who are
spending a busy and restless life today. These devices
enable us to:
•listen to music to overcome a monotonous life,
•watch missed TV programmes or movies of own choice
through the internet,
•exchange information between friends and relatives who
live abroad or whom we have lost touch through social
media,
•watch high definition video using technology,

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•surf the internet. This helps children to do learning
activities and play games
during the free time at home,
•read e-books on internet and
•take photographs of interesting places and store them in
the computer.

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The Impact of Computers in Business

We've reached a point in our technological advancement

where everyone not only has a computer but also carries it
around in a pocket. That's not all – many people have multiple
computers, such as smartphones, tablets, laptops and even smart
TVs. This means you have to use the internet to reach your
customers if you want to stay competitive in this day and age.
Consumers fully expect you to have a website and a social media
presence. Not having these may actually send up red flags to
potential customers and create a sense of distrust in your brand.
This was not the case even 10 years ago, so if you're a little
behind the times, it's understandable. The good news is that
computers have a lot to offer businesses in terms of not only
marketing and advertising but also in daily efficiency.

Digital Marketing Is a Must

It's impossible to talk about the impact of computers on
business without talking about the explosion of digital
marketing. Before digital marketing became popular, consumers
were more open to advertisements on TV. Now, they seek "social
proof" to know if a product or service is worthwhile, and they go
to the internet to find out.

That means you need to not only have a website that's easy to
find and navigate but also maintain a social presence on sites like
Facebook and Yelp, where reviews and testimonials can easily be
seen.
You can still leverage the advantages of computers in business
marketing in other ways. You can even run a text message
campaign or develop a mobile app to take advantage of very

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specific smartphone technology. Otherwise, digital marketing

involves search engine optimization, social media marketing, pay-
per-click ads and many other strategies therein.

Productivity Apps Streamline Tasks

Productivity software and applications have become
essential in the modern-day office. Now, we don't just email our
colleagues – we have Slack channels. We don't just make
conference calls – we Skype and share screens.
Think about the field service industry, for example, and how
technology allows more clients to be helped in a single day
thanks to efficiency of communication. GPS allows the best
routes to be mapped to the destination. Once there, tickets can
be pulled up on a tablet with real-time information. Dispatch uses
phones less and less and apps more and more in order to
communicate accurate information. Thanks to devices like the
Square reader, card payments can be accepted on-site.
Regardless of your industry, there's bound to be management
or productivity software to streamline your day-to-day tasks.

Paperless Offices Save Money

In the early days of computers, saving and sharing files
required a hard drive. With the invention of cloud computing,
files can be stored and shared online. Documents can even be
edited by multiple people in real time.
Many businesses have used cloud computing as an
opportunity to go paperless. Instead of keeping hard copies in a
filing cabinet in case of a hard-drive crash, businesses back up
their cloud files.
Other technology contributes to paperless offices as well.
Meeting agendas can be pulled up on tablets or smartphones by

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each attendee. You don't even need a fax machine anymore since
even faxes can be sent and received online.

Why the Internet Is Important in Business?

Using the Internet in Business

More than 290 million Americans were using the internet in
2016. We live in a digital age when information is at our fingertips.
Businesses worldwide are taking full advantage of this trend.
Digital technologies such as social media, VoIP communication,
artificial intelligence and e-commerce allow companies to reach a
global audience and improve the customer experience.
For example, the Internet of Things, or (IoT), has a wide
range of applications across most industries. Smart devices that
integrate this technology are providing brands with valuable
insights about customer behaviour, preferences and spending
patterns. This allows them to laser target their advertising efforts
while saving time and money. Without IoT, we wouldn't have
smart homes, smart cash points, facial recognition cameras and
other interconnected devices.

Companies also use complex software programs to track sales,

manage customer relations, ensure data security and streamline
their business operations. Private clinics and hospitals, for
instance, rely on AI-powered devices to store and process
medical data, help patients manage their conditions and optimise
staffing levels. Using the internet in business allows for more
effective communication, increased productivity and instant
customer support.

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 Provide a Superior Customer Experience

Digital technologies enable businesses to attract, retain and
engage their customers in a more effective manner and for lower
costs. You can use your website and social media pages to
connect with prospects and market your products to those who
are most likely to buy. With pay-per-click advertising, you can
reach the right people at the right time and adapt your
campaigns to the needs of your target audience. Marketing
automation allows you to track the customer journey and reach
potential clients across multiple channels.
Customer relationship management software enables users
to keep accurate records of their customers' needs, transactions
and buying behaviour. With this data, you can personalise the
customer experience and provide better service. According to
Accenture, 91 percent of people are more likely to purchase from
brands that remember their preferences and provide relevant
offers.

Reach a Global Audience

The rise of e-commerce, social networking and other digital
technologies allows companies to reach a global audience.
Geographical boundaries are no longer an issue. Small
businesses can now advertise and sell their products to customers
worldwide. A well-designed social media campaign can go viral
within hours, generating leads and revenue.
It's estimated that over 1.9 billion people will make an online
purchase in 2019. Regardless of your budget, you can put your
business in front of millions of potential customers to raise brand
awareness and generate revenue. Furthermore, you can leverage
the power of email and video marketing, blogging, search engine
optimisation and other technologies to turn prospects into

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buyers. Without the internet, none of these things would be

possible.

Other Business Advantages

There are many other advantages of using the internet in
business. Web-based technologies can improve teamwork, free
up employees' time and increase your productivity. Depending
on your needs, you may use collaboration tools, project
management tools, website builders, video conferencing and
much more.
The internet has changed the business world forever,
becoming an indispensable part of our lives. Companies that
want to remain competitive and grow can no longer ignore its
impact.

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 BBAF11052 - Information Technology

Handout No: 03
Y. Achchuthan (achchuthany@univ.jfn.ac.lk)

Learning Outcome :
- Discuss the issues, ethical use of IT and ergonomics in current
business world

3. Legal & Ethical Issues in E-Business

In the Information Age, technology evolves fast and data

travels even faster. It can be difficult for the law to keep up with
new technologies and inventive ways to conduct e-business.
Because of this, the law often lags behind, and lawmakers end up
drafting laws to clean up Internet messes instead of preventing
them.

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 Information Technology offers a number of challenges: Those

of Information superhighway, quality-of-life issues, ethics, threats
to computers, and security. They can be listed as
•technological, marketing, access
•health, ergonomics, and the environment
•free speech, privacy, property rights, and art & journalistic
truth
•accidents, hazards, crime, viruses
•security safeguards

What does privacy mean?

Well, it depends on who you ask. Broadly speaking, privacy is

the right to be let alone, or freedom from interference or
intrusion. Information privacy is the right to have some control
over how your personal information is collected and used.
Ask most people these days what they think of when it comes
to privacy and you’re likely to have a conversation about massive
data breaches, wearable tech, social networking, targeted
advertising miscues—not to mention the Snowden revelations.
Add to that, various cultures have widely differing views on
what a person’s rights are when it comes to privacy and how it
should be regulated.

Piracy

Piracy, act of illegally reproducing or disseminating

copyrighted material, such as computer programs, books, music,
and films. Although any form of copyright infringement can and
has been referred to as piracy, this article focuses on using
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computers to make digital copies of works for distribution over

the Internet.

Software piracy is the illegal copying, distribution, or use of

software. It is such a profitable "business" that it has caught the
attention of organized crime groups in a number of countries.
According to the Business Software Alliance (BSA), about 36% of
all software in current use is stolen. Software piracy causes
significant lost revenue for publishers, which in turn results in
higher prices for the consumer.
When you purchase a commercial software package, an end
user license agreement ( EULA ) is included to protect that
software program from copyright infringement. Typically, the
license states that you can install the original copy of software you
bought on one computer and that you can make a backup copy
in case the original is lost or damaged. You agree to the licensing
agreement when you open the software package (this is called a
shrink wrap license), when you open the envelope that contains
the software disks, or when you install the software.
Software piracy applies mainly to full-function commercial
software. The time-limited or function-restricted versions of
commercial software called shareware are less likely to be pirated
since they are freely available. Similarly, freeware , a type of
software that is copyrighted but freely distributed at no charge,
also offers little incentive for piracy.
Types of software piracy include:
•Softlifting: Borrowing and installing a copy of a software
application from a colleague.
•Client-server overuse: Installing more copies of the
software than you have licenses for.
•Hard-disk loading: Installing and selling unauthorized
copies of software on refurbished or new computers.
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•Counterfeiting: Duplicating and selling copyrighted

programs.
•Online piracy: Typically involves downloading illegal
software from peer-to-peer network, Internet auction or
blog. (In the past, the only place to download software was
from a bulletin board system and these were limited to
local areas because of long distance charges while online.)

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Client Privacy

Internet businesses have a legal obligation to protect the

private information of their customers. E-commerce activity
often involves collecting secure data such as names and
phone numbers associated with email addresses. Many e-
business activities also involve transactions, so customer
banking or credit card information also ends up stored online.
Legally, it is up to the e-business to store and protect or
dispose of this sensitive data. The Children’s Online Privacy
Protection Act, for example, protects the online privacy rights
of children. Under this law, parents have control of what
personal information their children can give to e-businesses.

Advertising Online
Several online marketing issues spring from the inherent
anonymity of the Internet. It is often difficult to know the real
identity of an e-business owner. A few online businesses take
advantage of this in unethical or illegal ways. Some e-
businesses track the online activity of their customers so that
they can show advertisements based on the customer’s
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behaviour. Behavioural advertising is not illegal, and it is not

illegal to refrain from disclosing that an e-businesses tracks
activity, although many people consider this nondisclosure
unethical.

Copyright Infringements
Due to the Internet’s free flow of information, plagiarism and
copyright infringement is a continual problem. The Digital
Millennium Copyright Act addresses plagiarism and copyright
infringement in the specific context of the Internet and e-
business. Under this law, it is illegal to use online technology
to copy and distribute legally copyrighted material, such as
photography, articles or books, music or videos.

Net Neutrality
Net neutrality is the hotly debated idea that Internet users
should have equal access to all websites. Most computers
retrieve websites at the same speed, depending on the user's
Internet account settings or service, no matter if the site is a
multibillion-dollar company or a neighbour’s blog. But some
Internet providers have the capability to deliver different
websites at different speeds. This is an issue because some
websites could pay providers to deliver their content at faster
speeds, while smaller business with less capital might not be
able to afford the faster processing, and the Internet would
lose its free-access-for-all feel. The Federal Communications
Commission currently supports net neutrality and bans
providers from participating in any program that offers extra
pay for higher speed access to any websites.

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 3.1. Ethics & Cyber ethics

Ethics
Ethics is the field of study that is concerned with questions of
value or judgements.
!The discipline dealing with what is good & bad and with
moral duty & obligation
!Individual human opinions and beliefs
!Hard to define

Ethics could be defined as The study of the general nature of

morals and of the specific moral choices to be made by a
person; moral philosophy.

Controls on Human Behaviour

• Courtesy
• Law
• Ethics

Needs of Computer Ethics

The ethical issues associated with computers arise because
they are a relatively new technology, and because they allow
us to do things that were not possible before.
It could be defined as Analysis of the nature and social impact
of computer technology and the corresponding formulation
and justification of policies for the ethical use of such
technologies.
• Because of the global nature of computer technology, we
are faced with defining ethical issues in a global
environment

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 • What we consider right/wrong others may consider

wrong/right
• This is especially true in terms of prosecution
- What/whose law was broken?
- Who punishes/arrests?
- Is it free a speech?

Computer Ethical issues

• Not registering or paying the registration fee for a
shareware package you commonly use.
• Reading someone’s E-mail without permission
• Using your company computer system for personal /
business activities
• Misrepresenting environmental or performance statistics
by rounding off data values before the final analysis is
performed

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 • Using a colleague's worksheet template or expert system

without permission to put a bid to competing project
• Monitoring, without their knowledge, employees data entry
rates and number of breaks using their own computer
system.
• Firing an employee, based on data obtained by
unapproved work monitoring or from unverified sources.

Computer Crime and Abuse

• Computer crimes refer to all the ways in which computers
can be used to commit legally defined crimes.
• Computer abuse refers to actions that may not be illegal
but considered unethical.
• These involves misuse or theft of Information, Knowledge,
Information services and the use of computer to steal
tangible or financial assets

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The Top Ten Rules of Computer Ethics from the Computer

Ethics Institute
1. Not use a computer to harm other people.
2. Not interfere with other people's computer work.
3. Not snoop around in other people's computer files.
4. Not use a computer to steal.
5. Not use a computer to bear false witness.
6. Not copy or use proprietary software for which you have
not paid.
7. Not use other people's computer resources without
authorisation or proper compensation.
8. Not appropriate other people's intellectual output.
9. Think about the social consequences of the program you
are writing or the system you are designing.
10.Always use a computer in ways that insure consideration
and respect for your fellow humans.

Users of Information Technology must weigh standards of

behaviour and conducts in four areas:
1. Issues of “netiquette” (etiquette in net), free speech,
sexually explicit material, and censorship. Free speech is
possible, one can speak evil, vulgar and impolite things with
no hesitation as he can be far away from the listeners and no
can control him unless he can be disconnected. Thus a sort
of etiquette should be observed in communications. Other
issue is that sexually explicit pictures and video clips may be
freely available. In some countries it is illegal to download
such things. Generally in many societies and families it is
considered immoral or bad to get exposure to such
materials. Who is going to control? It should be the ethics
that under which one undergoes can only control him to
observe such socially acceptable conducts over the net too
37

– this is termed cyber ethics. No one can censor, whether

one can censor something or not is, perhaps a legal matter.

2. Issues of privacy – in finances, health, employment,

commerce, and communications. Question of privacy arises
if information is open to everyone. People, in general,
consider matters relating finance, health, and employment
are highly private matters. Also, commercial and business
secrets might get trapped in insecure hands.

3. Copyrighted related issues – software and network

piracy, plagiarisms, and ownership of images and sounds.
Intellectual Property Rights consists of the products of the
human mind, tangible or intangible. There are three
methods of protecting intellectual property, namely, Patents
(as for an invention), Trade secrets (as for a formula or
method of doing business), Copyrights (A Copyright is a
body of law that prohibits copying of intellectual property
without the permission of the copyright holder). There are
three copyrighted matters: Software and Network Piracy,
Plagiarism, and Ownership of Images and sounds:
• Piracy is a theft or unauthorised distribution or use of
copyrighted or patented material.
• Software piracy is the unauthorised copying of
copyrighted software. (e.g. copying from a CD/DVD,
downloading from a network)
• Network piracy is using electronic networks to distribute
unauthorised copyrighted materials in digitised form.
• Plagiarism is the exploration of another writer’s text,
findings or interpretation.
• Processing Copyrighted Image: Scanners, Digital
cameras, digital samplers, and computers make it
38



 possible to alter images and sounds to be almost
anything you want. A copyrighted picture can be scanned
but got the colour and order of objects in the picture
changed or otherwise altered

4. Digital Manipulation and Truthfulness in Journalism:

the digital manipulation of sound, photos, and video, and
the problem of truth in journalism. The possibility of altering
a single picture, or processing several pictures to make a
new picture, truthfulness or evidence of journalism in
jeopardy.

39






 3.2.Threats to Computers and Communications
Systems

Information Technology can be disabled by a number of

occurrences. It may be harmed by people, procedural, and
software errors; by electromechanical problems; and by “dirty
data”. It may be threatened by natural hazards and by civil
strife and terrorism. Criminal acts perpetrated against
computers include theft of hardware, software, time & services,
and information; and crimes of malice and destruction.
Computers can also be used as instruments of crime.
Criminals may be employees, outside users, hackers, crackers,
or professional criminals.

There are two types of crimes against computers and

communications:
• An illegal act perpetrated against computers or
telecommunications, which includes theft of hardware, theft
40



 of software, theft of time and services (playing games,

doing other business, use of personal communications etc
at the working place), theft of information, theft of money,
crimes of malice and destruction
• The use of Computers or telecommunications to commit an
illegal act, spreading virus is an example of crime under
this category. Viruses come in several forms: boot-sector
virus, file virus, worm, logic bomb, Trojan horse,
polymorphic virus, virus mutation engines.

Virus
Perhaps the most well known computer security threat, a
computer virus is a program written to alter the way a
computer operates, without the permission or knowledge of
the user. A virus replicates and executes itself, usually doing
damage to your computer in the process.

Occurrence of Virus spreading

Even if you’re careful you can pick up computer viruses
through normal Web activities like:
• Sharing music, files or photos with other users through
network and storage devices.
• Visiting an infected Web site
• Opening spam email or an email attachment
• Downloading free games, toolbars, media players and other
system utilities
• Installing mainstream software applications without fully
reading license agreements

Symptoms of a computer virus

Your computer may be infected if you recognise any of
these malware symptoms:
41

• Slow computer performance

• Erratic computer behaviour
• Unexplained data loss
• Frequent computer crashes

The ways to protect the computer from Virus

• Use antivirus protection and a firewall
• Get antispyware software
• Always keep your antivirus protection and antispyware
software up-to-date
• Update your operating system regularly
• Increase your browser security settings
• Avoid questionable Web sites
• Only download software from sites you trust. Carefully
evaluate free software and file-sharing applications before
downloading them.
• Don't open messages in emails from unknown senders
• Immediately delete messages in your email, you suspect to
be spam

Hackers
People, not computers, create computer security threats
and malware (Malware is software designed to infiltrate or
damage a computer system without the owner's informed
consent.). Hackers and predators are programmers who
victimize others for their own gain by breaking into computer
systems to steal, change or destroy information as a form of
cyber-terrorism.

Spyware

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 A serious computer security threat, spyware is any program

that monitors your online activities or installs programs without
your consent for profit or to capture personal information.

Phishing
A Phishing attack is when you are sent an email that asks you
to click on a link and re-enter your bank or credit card details.
These emails can pretend to be from banks, Internet service
providers, on-line stores and so on, and both the email and
the web site it links to appear genuine. When you enter your
bank or credit card details they are then used fraudulently.

cross-site scripting (XSS)

Cross-site scripting (also known as XSS) is a web security

vulnerability that allows an attacker to compromise the
interactions that users have with a vulnerable application. It allows
an attacker to circumvent the same origin policy, which is
designed to segregate different websites from each other. Cross-
site scripting vulnerabilities normally allow an attacker to
masquerade as a victim user, to carry out any actions that the user
is able to perform, and to access any of the user's data. If the
victim user has privileged access within the application, then the
attacker might be able to gain full control over all of the
application's functionality and data.

Keylogger

Keyloggers are a type of monitoring software designed to

record keystrokes made by a user. One of the oldest forms of

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cyber threat, these keystroke loggers record the information you

type into a website or application and send to back to a third
party.

3.3.Security: Safeguarding Computers and

Communications

Information Technology requires vigilance in security:

Identification and Access: This includes protections by
password, PIN, cards, keys, signature, digital signature (public
key/private key system) and / or by using physical traits (finger
print ID, voice ID, retina ID, Lip print).
Encryption: Encryption or enciphering is the altering data so
that it is not usable unless the changes are undone. (A
program called PGP – Pretty Good Privacy is good at it).
Protection of Software and Data: This can be achieved
giving access to authorised users, keeping log files and having
audit controls.
Disaster Recovery Planning: A disaster-recovery plan is a
method of restoring information processing operations that
have been halted by destruction or accident. A policy of
keeping backup files, and installing and updating anti-virus
programs would be essential.

Information Technology, as a merger of two popular

technologies shows promises to nations. Actually we have
already starting experiencing the benefits of it in education,
health, communications etc., in short, in every aspect of our
life. With effective preventive methods and recovery plans to
protect IT from various hazardous and with suitable legal acts
44

to crimp IT criminals, we could (should) save IT to grow in its

way of becoming information superhighway to provide
services to each and every citizen. Citizens, being respectful
human beings should keep ‘netiquette’ and cyber-ethics in
order not to let Information Technology fall in favour of
arguments against the use or introduction of Information
Technology in their forums.

45

Congress grills Google CEO on bias and data collection

Zuckerberg explains how advertisers use Facebook data

46