Republic of the Philippines

CAVITE STATE UNIVERSITY

General Trias City Campus
General Trias City, Cavite

☏ (046) 509-4148

www.cvsu.edu.ph

BSHM23: APPLIED BUSINESS TOOLS AND

TECHNOLOGIES

MODULE TITLE: Applied Business Tools and Technologies

“INFORMATION SYSTEM BEYOND THE ORGANIZATION” (Week 16 & 17)

This module contains skills, knowledge and performance outcomes required to understand and
operate relevant IT systems that are used in the hotel and restaurant industries. Topics covered
include folio systems for front office; POS systems from F&B operations as well as other
reservation, finance, housekeeping, marketing and public relation.

MODULE CONTENT

1. Globalization and digital divide

2. The ethical and legal implications of Information System
2.1 Computer Crimes
2.2 Reasons for the importance of Computer Ethics
 2.3 Data and Protection and computer misuse act 1990
3. Future trends in Information System

SUMMARY OF LEARNING OUTCOMES

After the completion of the chapter, students will be able to:

1. Describe the role of information technology in globalization;
2. Define the term intellectual property and explain the protections provided by copyright,
patent, and trademark; and
3. Describe future trends in information systems.

CHAPTER EIGHT
INFORMATION SYSTEM BEYOND THE
ORGANIZATION
 Introduction
   
The internet has wired the world. Today it is just as simple to communicate with
someone on the other side of the world as it is to talk to someone next door. In this chapter, we
will look at the implications of globalization and the impact it is having on the world.
 

What Is Globalization?
 
  Globalization is the term used to refer to the integration of goods, services, and culture
among the nations of the world. Globalization is not necessarily a new phenomenon; in many
ways, we have been experiencing globalization since days of European colonization. Further
advances in telecommunication and transportation technologies accelerated globalization. The
advent of the worldwide internet has made all nations next-door neighbors.
The internet is truly a worldwide phenomenon. As of 2012, the internet was being used in
over 150 countries by a staggering 2.4 billion people worldwide, and growing. From its initial
beginnings in the United States in the 1970’s to the development of the World Wide Web in the
1990’s to the social networks and e-commerce of today, the internet has continued to increase the
integration between countries, making globalization a fact of life for citizens all over the world.
  1. http://internetworldstats.com/
 
 
 

 
Source:  Internet  World Stats
The Digital Divide

As the Internet continues to make inroads across the world, it is also creating a separation
between those who have access to this global network and those who do not. This separation is
called the “digital divide” and is of great concern. An article in Crossroads puts it this way:
Adopted by the ACM Council in 1992, the ACM Code of Ethics and Professional
Conduct focuses on issues involving the Digital Divide that could prevent certain categories of
people — those from low-income households, senior citizens, single-parent children, the
undereducated, minorities, and residents of rural areas — from receiving adequate access to the
wide variety of resources offered by computer technology. This Code of Ethics positions the use
of computers as a fundamental ethical consideration: “In a fair society, all individuals would
have equal opportunity to participate in, or benefit from, the use of computer resources
regardless of race, sex, religion, age, disability, national origin, or other similar factors.” This
article summarizes the digital divide in its various forms, and analyzes reasons for the growing
inequality in people’s access to Internet services. It also describes how society can bridge the
digital divide: the serious social gap between information “haves” and “have-nots.”
The digital divide can occur between countries, regions, or even neighborhoods. In many
US cities, there are pockets with little or no Internet access, while just a few miles away high-
speed broadband is common.
Solutions to the digital divide have had mixed success over the years. Many times, just
providing Internet access and/or computing devices is not enough to bring true Internet access to
a country, region, or neighborhood.

The Ethical and Legal Implications of Information

Systems

Introduction
Information systems have had an impact far beyond the world of business. New
technologies create new situations that we have never dealt with before. How do we handle the
new capabilities that these devices empower us with? What new laws are going to be needed to
protect us from ourselves? This chapter will kick off with a discussion of the impact of
information systems on how we behave (ethics). This will be followed with the new legal
structures being put in place, with a focus on intellectual property and privacy.
Information Systems Ethics
The term ethics is defined as “a set of moral principles” or “the principles of conduct
governing an individual or a group.”1 Since the dawn of civilization, the study of ethics and their
impact has fascinated mankind. But what do ethics have to do with information systems? The
introduction of new technology can have a profound effect on human behavior. New
technologies give us capabilities that we did not have before, which in turn create environments
and situations that have not been specifically addressed in ethical terms. Those who master new
technologies gain new power; those who cannot or do not master them may lose power. In 1913,
Henry Ford implemented the first moving assembly line to create his Model T cars. While this
was a great step forward technologically (and economically), the assembly line reduced the value
of human beings in the production process. The development of the atomic bomb concentrated
unimaginable power in the hands of one government, who then had to wrestle with the decision
to use it. Today’s digital technologies have created new categories of ethical dilemmas. For
example, the ability to anonymously make perfect copies of digital music has tempted many
music fans to download copyrighted music for their own use without making payment to the
music’s owner. Many of those who would never have walked into a music store and stolen a CD
find themselves with dozens of illegally downloaded albums.
Digital technologies have given us the ability to aggregate information from multiple
sources to create profiles of people. What would have taken weeks of work in the past can now
be done in seconds, allowing private organizations and governments to know more about
individuals than at any time in history. This information has value, but also chips away at the
privacy of consumers and citizens.
Code of Ethics
Commitment to ethical professional conduct is expected of every member (voting
members, associate members, and student members) of the Association for Computing
Machinery (ACM).
This Code, consisting of 24 imperatives formulated as statements of personal
responsibility, identifies the elements of such a commitment. It contains many, but not all, issues
professionals are likely to face. Section 1 outlines fundamental ethical considerations, while
Section 2 addresses additional, more specific considerations of professional conduct. Statements
in Section 3 pertain more specifically to individuals who have a leadership role, whether in the
workplace or in a volunteer capacity such as with organizations like ACM. Principles involving
compliance with this Code are given in Section 4.
In the ACM’s code, you will find many straightforward ethical instructions, such as the
admonition to be honest and trustworthy. But because this is also an organization of
professionals that focuses on computing, there are more specific admonitions that relate directly
to information technology:
• No one should enter or use another’s computer system, software, or data files without
permission. One must always have appropriate approval before using system resources,
including communication ports, file space, other system peripherals, and computer time.
• Designing or implementing systems that deliberately or inadvertently demean
individuals or groups is ethically unacceptable.
• Organizational leaders are responsible for ensuring that computer systems enhance, not
degrade, the quality of working life. When implementing a computer system, organizations must
consider the personal and professional development, physical safety, and human dignity of all
workers. Appropriate human-computer ergonomic standards should be considered in system
design and in the workplace.

Sidebar: Acceptable Use Policies

Many organizations that provide technology services to a group of constituents or the public
require agreement to an acceptable use policy (AUP) before those services can be accessed.
Similar to a code of ethics, this policy outlines what is allowed and what is not allowed while
someone is using the organization’s services. An everyday example of this is the terms of service
that must be agreed to before using the public Wi-Fi at Starbucks, McDonald’s, or even a
university. Here is an example of an acceptable use policy from Virginia Tech.

Just as with a code of ethics, these acceptable use policies specify what is allowed and what is
not allowed. Again, while some of the items listed are obvious to most, others are not so obvious:

 “Borrowing” someone else’s login ID and password is prohibited.

 Using the provided access for commercial purposes, such as hosting your own business
website, is not allowed.
 Sending out unsolicited email to a large group of people is prohibited.

Also as with codes of ethics, violations of these policies have various consequences. In most
cases, such as with Wi-Fi, violating the acceptable use policy will mean that you will lose your
access to the resource. While losing access to Wi-Fi at Starbucks may not have a lasting impact,
a university student getting banned from the university’s Wi-Fi (or possibly all network
resources) could have a large impact.

Intellectual Property
One of the domains that have been deeply impacted by digital technologies is the domain of
intellectual property. Digital technologies have driven a rise in new intellectual property claims
and made it much more difficult to defend intellectual property.
Intellectual property is defined as “property (as an idea, invention, or process) that derives from
the work of the mind or intellect.”3 This could include creations such as song lyrics, a computer
program, a new type of toaster, or even a sculpture.
Practically speaking, it is very difficult to protect an idea. Instead, intellectual property laws are
written to protect the tangible results of an idea. In other words, just coming up with a song in
your head is not protected, but if you write it down it can be protected.
Protection of intellectual property is important because it gives people an incentive to be
creative. Innovators with great ideas will be more likely to pursue those ideas if they have a clear
understanding of how they will benefit. In the US Constitution, Article 8, Section 8, the authors
saw fit to recognize the importance of protecting creative works:
Congress shall have the power . . . To promote the Progress of Science and useful Arts,
by securing for limited Times to Authors and Inventors the exclusive Right to their
respective Writings and Discoveries.
Copyright

Copyright is the protection given to songs, computer programs, books, and other creative works;
any work that has an “author” can be copyrighted. Under the terms of copyright, the author of a
work controls what can be done with the work, including:

 Who can make copies of the work.

 Who can make derivative works from the original work.
 Who can perform the work publicly.
 Who can display the work publicly.
 Who can distribute the work.

Many times, a work is not owned by an individual but is instead owned by a publisher with
whom the original author has an agreement. In return for the rights to the work, the publisher
will market and distribute the work and then pay the original author a portion of the proceeds.

Copyright protection lasts for the life of the original author plus seventy years. In the case of a
copyrighted work owned by a publisher or another third party, the protection lasts for ninety-five
years from the original creation date. For works created before 1978, the protections vary
slightly. You can see the full details on copyright protections by reviewing the Copyright Basics
document available at the US Copyright Office’s website.

Obtaining Copyright Protection

In the United States, a copyright is obtained by the simple act of creating the original work. In
other words, when an author writes down that song, makes that film, or designs that program, he
or she automatically has the copyright. However, for a work that will be used commercially, it is
advisable to register for a copyright with the US Copyright Office. A registered copyright is
needed in order to bring legal action against someone who has used a work without permission.

First Sale Doctrine

If an artist creates a painting and sells it to a collector who then, for whatever reason, proceeds to
destroy it, does the original artist have any recourse? What if the collector, instead of destroying
it, begins making copies of it and sells them? Is this allowed? The first sale doctrine is a part of
copyright law that addresses this, as shown below[4]:
The first sale doctrine, codified at 17 U.S.C. § 109, provides that an individual who knowingly
purchases a copy of a copyrighted work from the copyright holder receives the right to sell,
display or otherwise dispose of that particular copy, notwithstanding the interests of the
copyright owner.

So, in our examples, the copyright owner has no recourse if the collector destroys her artwork.
But the collector does not have the right to make copies of the artwork.
Fair Use

Another important provision within copyright law is that of fair use. Fair use is a limitation on
copyright law that allows for the use of protected works without prior authorization in specific
cases. For example, if a teacher wanted to discuss a current event in her class, she could pass out
copies of a copyrighted news story to her students without first getting permission. Fair use is
also what allows a student to quote a small portion of a copyrighted work in a research paper.

Unfortunately, the specific guidelines for what is considered fair use and what constitutes
copyright violation are not well defined. Fair use is a well-known and respected concept and will
only be challenged when copyright holders feel that the integrity or market value of their work is
being threatened. The following four factors are considered when determining if something
constitutes fair use: [5]

1. The purpose and character of the use, including whether such use is of commercial nature
or is for nonprofit educational purposes;
2. The nature of the copyrighted work;
3. The amount and substantiality of the portion used in relation to the copyrighted work as a
whole;
4. The effect of the use upon the potential market for, or value of, the copyrighted work.

If you are ever considering using a copyrighted work as part of something you are creating, you
may be able to do so under fair use. However, it is always best to check with the copyright owner
to be sure you are staying within your rights and not infringing upon theirs.

Sidebar: The History of Copyright Law

As noted above, current copyright law grants copyright protection for seventy years after the
author’s death, or ninety-five years from the date of creation for a work created for hire. But it
was not always this way.

The first US copyright law, which only protected books, maps, and charts, provided protection
for only 14 years with a renewable term of 14 years. Over time, copyright law was revised to
grant protections to other forms of creative expression, such as photography and motion pictures.
Congress also saw fit to extend the length of the protections, as shown in the chart below. Today,
copyright has become big business, with many businesses relying on the income from copyright-
protected works for their income.

Many now think that the protections last too long. The Sonny Bono Copyright Term Extension
Act has been nicknamed the “Mickey Mouse Protection Act,” as it was enacted just in time to
protect the copyright on the Walt Disney Company’s Mickey Mouse character. Because of this
term extension, many works from the 1920s and 1930s that would have been available now in
the public domain are not available.
The Digital Millennium Copyright Act

As digital technologies have changed what it means to create, copy, and distribute media, a
policy vacuum has been created. In 1998, the US Congress passed the Digital Millennium
Copyright Act (DMCA), which extended copyright law to take into consideration digital
technologies. Two of the best-known provisions from the DMCA are the anti-circumvention
provision and the “safe harbor” provision.

 The anti-circumvention provision makes it illegal to create technology to circumvent

technology that has been put in place to protect a copyrighted work. This provision
includes not just the creation of the technology but also the publishing of information that
describes how to do it. While this provision does allow for some exceptions, it has
become quite controversial and has led to a movement to have it modified. 
 The “safe harbor” provision limits the liability of online service providers when someone
using their services commits copyright infringement. This is the provision that allows
YouTube, for example, not to be held liable when someone posts a clip from a
copyrighted movie. The provision does require the online service provider to take action
when they are notified of the violation (a “takedown” notice). For an example of how
takedown works, here’s how YouTube handles these requests: YouTube Copyright
Infringement Notification.

Many think that the DMCA goes too far and ends up limiting our freedom of speech.
The Electronic Frontier Foundation (EFF) is at the forefront of this battle. For example, in
discussing the anti-circumvention provision, the EFF states:
Yet the DMCA has become a serious threat that jeopardizes fair use, impedes competition and
innovation, chills free expression and scientific research, and interferes with computer intrusion
laws. If you circumvent DRM [digital rights management] locks for non-infringing fair uses or
create the tools to do so you might be on the receiving end of a lawsuit.

Sidebar: Creative Commons

In chapter 2, we learned about open-source software. Open-source software has few or no

copyright restrictions; the creators of the software publish their code and make their software
available for others to use and distribute for free. This is great for software, but what about other
forms of copyrighted works? If an artist or writer wants to make their works available, how can
they go about doing so while still protecting the integrity of their work? Creative Commons is
the solution to this problem.

Creative Commons is a nonprofit organization that provides legal tools for artists and authors.
The tools offered make it simple to license artistic or literary work for others to use or distribute
in a manner consistent with the author’s intentions. Creative Commons licenses are indicated
with the symbol  . It is important to note that Creative Commons and public domain are not
the same. When something is in the public domain, it has absolutely no restrictions on its use or
distribution. Works whose copyrights have expired, for example, are in the public domain.
By using a Creative Commons license, authors can control the use of their work while still
making it widely accessible. By attaching a Creative Commons license to their work, a legally
binding license is created. Here are some examples of these licenses:

 CC-BY: This is the least restrictive license. It lets others distribute and build upon the
work, even commercially, as long as they give the author credit for the original work.
 CC-BY-SA: This license restricts the distribution of the work via the “share-alike”
clause. This means that others can freely distribute and build upon the work, but they
must give credit to the original author and they must share using the same Creative
Commons license.
 CC-BY-NC: This license is the same as CC-BY but adds the restriction that no one can
make money with this work. NC stands for “non-commercial.”
 CC-BY-NC-ND: This license is the same as CC-BY-NC but also adds the ND restriction,
which means that no derivative works may be made from the original.

These are a few of the more common licenses that can be created using the tools that Creative
Commons makes available. For a full listing of the licenses and to learn much more about
Creative Commons.

Patent

Another important form of intellectual property protection is the patent. A patent creates
protection for someone who invents a new product or process. The definition of invention is
quite broad and covers many different fields. Here are some examples of items receiving patents:

 circuit designs in semiconductors;

 prescription drug formulas;
 firearms;
 locks;
 plumbing;
 engines;
 coating processes; and
 business processes.

Once a patent is granted, it provides the inventor with protection from others infringing on his or
her patent. A patent holder has the right to “exclude others from making, using, offering for sale,
or selling the invention throughout the United States or importing the invention into the United
States for a limited time in exchange for public disclosure of the invention when the patent is
granted.”[6]

As with copyright, patent protection lasts for a limited period of time before the invention or
process enters the public domain. In the US, a patent lasts twenty years. This is why generic
drugs are available to replace brand-name drugs after twenty years.
 Obtaining Patent Protection

Unlike copyright, a patent is not automatically granted when someone has an interesting idea and
writes it down. In most countries, a patent application must be submitted to a government patent
office. A patent will only be granted if the invention or process being submitted meets certain
conditions:

 It must be original. The invention being submitted must not have been submitted before.
 It must be non-obvious. You cannot patent something that anyone could think of. For
example, you could not put a pencil on a chair and try to get a patent for a pencil-holding
chair.
 It must be useful. The invention being submitted must serve some purpose or have some
use that would be desired.

The job of the patent office is to review patent applications to ensure that the item being
submitted meets these requirements. This is not an easy job: in 2012, the US Patent Office
received 576,763 patent applications and granted 276,788 patents. The current backlog for a
patent approval is 18.1 months. Over the past fifty years, the number of patent applications has
risen from just 100,000 a year to almost 600,000; digital technologies are driving much of this
innovation.

I
ncrease in patent applications, 1963–2012 (Source: US Patent and Trademark Office)
Sidebar: What Is a Patent Troll?

The advent of digital technologies has led to a large increase in patent filings and therefore a
large number of patents being granted. Once a patent is granted, it is up to the owner of the
patent to enforce it; if someone is found to be using the invention without permission, the patent
holder has the right to sue to force that person to stop and to collect damages.

The rise in patents has led to a new form of profiteering called patent trolling. A patent troll is a
person or organization who gains the rights to a patent but does not actually make the invention
that the patent protects. Instead, the patent troll searches for those who are illegally using the
invention in some way and sues them. In many cases, the infringement being alleged is
questionable at best. For example, companies have been sued for using Wi-Fi or for scanning
documents, technologies that have been on the market for many years.

Recently, the US government has begun taking action against patent trolls. Several pieces of
legislation are working their way through Congress that will, if enacted, limit the ability of patent
trolls to threaten innovation. You can learn a lot more about patent trolls by listening to a
detailed investigation conducted by the radio program This American Life.

Trademark

A trademark is a word, phrase, logo, shape or sound that identifies a source of goods or services.
For example, the Nike “Swoosh,” the Facebook “f”, and Apple’s apple (with a bite taken out of
it) are all trademarked. The concept behind trademarks is to protect the consumer. Imagine going
to the local shopping center to purchase a specific item from a specific store and finding that
there are several stores all with the same name!

Two types of trademarks exist – a common-law trademark and a registered trademark. As with
copyright, an organization will automatically receive a trademark if a word, phrase, or logo is
being used in the normal course of business (subject to some restrictions, discussed below). A
common-law trademark is designated by placing “TM” next to the trademark. A registered
trademark is one that has been examined, approved, and registered with the trademark office,
such as the Patent and Trademark Office in the US. A registered trademark has the circle-R (®)
placed next to the trademark.

While most any word, phrase, logo, shape, or sound can be trademarked, there are a few
limitations. A trademark will not hold up legally if it meets one or more of the following
conditions:

 The trademark is likely to cause confusion with a mark in a registration or prior

application.
 The trademark is merely descriptive for the goods/services. For example, trying to
register the trademark “blue” for a blue product you are selling will not pass muster.
 The trademark is a geographic term.
 The trademark is a surname. You will not be allowed to trademark “Smith’s Bookstore.”
  The trademark is ornamental as applied to the goods. For example, a repeating flower
pattern that is a design on a plate cannot be trademarked.

As long as an organization uses its trademark and defends it against infringement, the protection
afforded by it does not expire. Because of this, many organizations defend their trademark
against other companies whose branding even only slightly copies their trademark. For
example, Chick-fil-A has trademarked the phrase “Eat Mor Chikin” and has vigorously defended
it against a small business using the slogan “Eat More Kale.” Coca-Cola has trademarked the
contour shape of its bottle and will bring legal action against any company using a bottle design
similar to theirs. As an example of trademarks that have been diluted and have now lost their
protection in the US are “aspirin” (originally trademarked by Bayer), “escalator” (originally
trademarked by Otis), and “yo-yo” (originally trademarked by Duncan).

Information Systems and Intellectual Property

The rise of information systems has forced us to rethink how we deal with intellectual property.
From the increase in patent applications swamping the government’s patent office to the new
laws that must be put in place to enforce copyright protection, digital technologies have impacted
our behavior. 

Privacy

The term privacy has many definitions, but for our purposes, privacy will mean the ability to
control information about oneself. Our ability to maintain our privacy has eroded substantially in
the past decades, due to information systems.

Personally Identifiable Information

Information about a person that can be used to uniquely establish that person’s identify is called
personally identifiable information, or PII. This is a broad category that includes information
such as:

 name;
 social security number;
 date of birth;
 place of birth;
 mother‘s maiden name;
 biometric records (fingerprint, face, etc.);
 medical records;
 educational records;
 financial information; and
 employment information.
Organizations that collect PII are responsible to protect it. The Department of Commerce
recommends that “organizations minimize the use, collection, and retention of PII to what is
strictly necessary to accomplish their business purpose and mission.” They go on to state that
“the likelihood of harm caused by a breach involving PII is greatly reduced if an organization
minimizes the amount of PII it uses, collects, and stores.”[7] Organizations that do not protect PII
can face penalties, lawsuits, and loss of business. In the US, most states now have laws in place
requiring organizations that have had security breaches related to PII to notify potential victims,
as does the European Union.

Just because companies are required to protect your information does not mean they are
restricted from sharing it. In the US, companies can share your information without your explicit
consent (see sidebar below), though not all do so. Companies that collect PII are urged by the
FTC to create a privacy policy and post it on their website. The state of California requires a
privacy policy for any website that does business with a resident of the state
(see http://www.privacy.ca.gov/lawenforcement/laws.htm).

While the privacy laws in the US seek to balance consumer protection with promoting
commerce, in the European Union privacy is considered a fundamental right that outweighs the
interests of commerce. This has led to much stricter privacy protection in the EU, but also makes
commerce more difficult between the US and the EU.

Non-Obvious Relationship Awareness

Digital technologies have given us many new capabilities that simplify and expedite the
collection of personal information. Every time we come into contact with digital technologies,
information about us is being made available. From our location to our web-surfing habits, our
criminal record to our credit report, we are constantly being monitored. This information can
then be aggregated to create profiles of each and every one of us. While much of the information
collected was available in the past, collecting it and combining it took time and effort. Today,
detailed information about us is available for purchase from different companies. Even
information not categorized as PII can be aggregated in such a way that an individual can be
identified.

This process of collecting large quantities of a variety of information and then combining it to
create profiles of individuals is known as non-obvious relationship awareness, or NORA. First
commercialized by big casinos looking to find cheaters, NORA is used by both government
agencies and private organizations, and it is big business.
 Non-obvious relationship awareness (NORA)

In some settings, NORA can bring many benefits, such as in law enforcement. By being able to
identify potential criminals more quickly, crimes can be solved more quickly or even prevented
before they happen. But these advantages come at a price: our privacy.

Restrictions on Record Collecting

In the US, the government has strict guidelines on how much information can be collected about
its citizens. Certain classes of information have been restricted by laws over time, and the advent
of digital tools has made these restrictions more important than ever.

Children’s Online Privacy Protection Act

Websites that are collecting information from children under the age of thirteen are required to
comply with the Children’s Online Privacy Protection Act (COPPA), which is enforced by
the Federal Trade Commission (FTC). To comply with COPPA, organizations must make a
good-faith effort to determine the age of those accessing their websites and, if users are under
thirteen years old, must obtain parental consent before collecting any information.

Family Educational Rights and Privacy Act 

The Family Educational Rights and Privacy Act (FERPA) is a US law that protects the privacy
of student education records. In brief, this law specifies that parents have a right to their child’s
educational information until the child reaches either the age of eighteen or begins attending
school beyond the high school level. At that point, control of the information is given to the
child. While this law is not specifically about the digital collection of information on the Internet,
the educational institutions that are collecting student information are at a higher risk for
disclosing it improperly because of digital technologies. 

Health Insurance Portability and Accountability Act

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) is the law the
specifically singles out records related to health care as a special class of personally identifiable
information. This law gives patients specific rights to control their medical records, requires
health care providers and others who maintain this information to get specific permission in
order to share it, and imposes penalties on the institutions that breach this trust. Since much of
this information is now shared via electronic medical records, the protection of those systems
becomes paramount.

Sidebar: Do Not Track

When it comes to getting permission to share personal information, the US and the EU have
different approaches. In the US, the “opt-out” model is prevalent; in this model, the default
agreement is that you have agreed to share your information with the organization and must
explicitly tell them that you do not want your information shared. There are no laws prohibiting
the sharing of your data (beyond some specific categories of data, such as medical records). In
the European Union, the “opt-in” model is required to be the default. In this case, you must give
your explicit permission before an organization can share your information.

To combat this sharing of information, the Do Not Track initiative was created. As its creators
explain[8]:
Do Not Track is a technology and policy proposal that enables users to opt out of tracking by
websites they do not visit, including analytics services, advertising networks, and social
platforms. At present few of these third parties offer a reliable tracking opt out, and tools for
blocking them are neither user-friendly nor comprehensive. Much like the popular Do Not Call
registry, Do Not Track provides users with a single, simple, persistent choice to opt out of third-
party web tracking.
Data protection and Computer misuse act of 1990

The Computer Misuse Act 1990 is an Act of the Parliament of the United Kingdom,

introduced partly in response to the decision in R v Gold & Schifreen (1988) 1 AC 1063 (see
below). Critics of the bill complained that it was introduced hastily and was poorly thought
out. Intention, they said, was often difficult to prove, and that the bill inadequately differentiated
"joyriding" hackers like Gold and Schifreen from serious computer criminals. The Act has
nonetheless become a model from which several other countries, including Canada and
the Republic of Ireland, have drawn inspiration when subsequently drafting their own
information security laws, as it is seen "as a robust and flexible piece of legislation in terms of
dealing with cybercrime”. Several amendments have been passed to keep the Act up to date.

R v Gold & Schifreen

Robert Schifreen and Stephen Gold, using conventional home computers and modems in late

1984 and early 1985, gained unauthorised access to British
Telecom's Prestel interactive viewdata service. While at a trade show, Schifreen, by doing what
latterly became known as shoulder surfing, had observed the password of a Prestel engineer. The
engineer's username was 22222222 and the password used was 1234. This later gave rise to
accusations that British Telecom (BT) had not taken security seriously. Armed with this
information, the pair explored the system, even gaining access to the personal message box
of Prince Philip.
Prestel installed monitors on the suspect accounts and passed information thus obtained to the
police. The pair were charged under section 1 of the Forgery and Counterfeiting Act 1981 with
defrauding BT by manufacturing a "false instrument", namely the internal condition of BT's
equipment after it had processed Gold's eavesdropped password. Tried at Southwark Crown
Court, they were convicted on specimen charges (five against Schifreen, four against Gold) and
fined, respectively, £750 and £600.

COMPUTER MISUSE ACT

Based on the ELC's recommendations, a private member's bill was introduced
by Conservative MP Michael Colvin. The bill, supported by the government, came into effect in
1990. Sections 1-3 of the Act introduced three criminal offences.

1. unauthorised access to computer material, punishable by twelve months' imprisonment

(or six months in Scotland) and/or a fine "not exceeding level 5 on the standard scale"
(since 2015, unlimited).
2. unauthorised access with intent to commit or facilitate commission of further offences,
punishable by twelve months/maximum fine (or six months in Scotland) on summary
conviction and/or five years/fine on indictment;
 3. unauthorised modification of computer material, punishable by twelve months/maximum
fine (or six months in Scotland) on summary conviction and/or ten years/fine on
indictment;

The sections 2 and 3 offences are intended to deter the more serious criminals from using a
computer to assist in the commission of a criminal offence or from impairing or hindering access
to data stored in a computer. The basic section 1 offence is to attempt or achieve access to a
computer or the data it stores, by inducing a computer to perform any function with intent to
secure access. Hackers who program their computers to search through password permutations
are therefore liable, even if their attempts to log on are rejected by the target computer. The only
precondition to liability is that the hacker should be aware that the access attempted is
unauthorised. Thus, using another person's username or identifier (ID) and password without
proper authority to access data or a program, or to alter, delete, copy or move a program or data,
or simply to output a program or data to a screen or printer, or to impersonate that other person
using e-mail, online chat, web or other services, constitute the offence. Even if the initial access
is authorised, subsequent exploration, if there is a hierarchy of privileges in the system, may lead
to entry to parts of the system for which the requisite privileges are lacking and the offence will
be committed. Looking over a user's shoulder or using sophisticated electronic equipment to
monitor the electromagnetic radiation emitted by VDUs ("electronic eavesdropping") is outside
the scope of this offence.

The sections 2–3 offences are aggravated offences, requiring a specific intent to commit another
offence (for these purposes, the other offences are to be arrestable, and so include all the
major common law and statutory offences of fraud and dishonesty). So a hacker who obtains
access to a system intending to transfer money or shares, intends to commit theft, or to obtain
confidential information for blackmail or extortion. Thus, the section 1 offence is committed as
soon as the unauthorized access is attempted, and the section 2 offence overtakes liability as soon
as specific access is made for the criminal purpose. The section 3 offence is specifically aimed at
those who write and circulate a computer virus or worm, whether on a LAN or across networks.
Similarly, using phishing techniques or a Trojan horse to obtain identity data or to acquire any
other data from an unauthorized source, or modifying the operating system files or some aspect
of the computer's functions to interfere with its operation or prevent access to any data, including
the destruction of files, or deliberately generating code to cause a complete system malfunction,
are all criminal "modifications". In 2004, John Thornley pleaded guilty to four offences under
section 3, having mounted an attack on a rival site, and introduced a Trojan horse to bring it
down on several occasions, but it was recognized that the wording of the offence needed to be
clarified to confirm that all forms of denial of service attack are included.

FUTURE TRENDS in INFORMATION SYSTEMS

Introduction
Information systems have evolved at a rapid pace ever since their introduction in the 1950s.
Today, devices that we can hold in one hand are more powerful than the computers used to land
a man on the moon. The Internet has made the entire world accessible to us, allowing us to
communicate and collaborate with each other like never before. In this chapter, we will examine
current trends and look ahead to what is coming next.

Global

The first trend to note is the continuing expansion of globalization. The use of the Internet is
growing all over the world, and with it the use of digital devices. The growth is coming from
some unexpected places; countries such as Indonesia and Iran are leading the way in Internet
growth.

Social

Social media growth is another trend that continues. Facebook now has over one billion users! In
2013, 80% of Facebook users were outside of the US and Canada. Countries where Facebook is
growing rapidly include Indonesia, Mexico, and the Philippines.

Besides Facebook, other social media sites are also seeing tremendous growth. Over 70% of
YouTube’s users are outside the US, with the UK, India, Germany, Canada, France, South
Korea, and Russia leading the way. Pinterest gets over 50% of its users from outside the US,
with over 9% from India. Twitter now has over 230 million active users. Social media sites not
based in the US are also growing. China’s QQ instant-messaging service is the eighth most-
visited site in the world.

Personal
Ever since the advent of Web 2.0 and e-commerce, users of information systems have expected
to be able to modify their experiences to meet their personal tastes. From custom backgrounds on
computer desktops to unique ringtones on mobile phones, makers of digital devices provide the
ability to personalize how we use them. More recently, companies such as Netflix have begun
assisting their users with personalization by making suggestions. In the future, we will begin
seeing devices perfectly matched to our personal preferences, based upon information collected
about us in the past.

Mobile

Perhaps the most impactful trend in digital technologies in the last decade has been the advent of
mobile technologies. Beginning with the simple cellphone in the 1990s and evolving into the
smartphones and tablets of today, the growth of mobile has been overwhelming. Here are some
key indicators of this trend:

 Mobile device sales. In 2011, smartphones began outselling personal computers.

 The number of smartphone subscribers grew at 31% in 2013, with China leading the way
at 354 million smartphone users.
 Internet access via mobile. In May of 2013, mobile accounted for 15% of all Internet
traffic. In China, 75% of Internet users used their smartphone to access it. Facebook
reported that 68% of its active users used their mobile platform to access the social
network.
 The rise of tablets. While Apple defined the smartphone with the iPhone, the iPad sold
more than three times as many units in its first twelve months as the iPhone did in its first
twelve months. Tablet shipments now outpace notebook PCs and desktop PCs. The
research firm IDC predicts that 87% of all connected devices will be either smartphones
or tablets by 2017.

Wearable

The average smartphone user looks at his or her smartphone 150 times a day for functions such
as messaging (23 times), phone calls (22), listening to music (13), and social media (9). Many of
these functions would be much better served if the technology was worn on, or even physically
integrated into, our bodies. This technology is known as a “wearable.” Wearables have been
around for a long time, with technologies such as hearing aids and, later, bluetooth earpieces. But
now, we are seeing an explosion of new wearable technologies. Perhaps the best known of these
is Google Glass, an augmented reality device that you wear over your eyes like a pair of
eyeglasses. Visible only to you, Google Glass will project images into your field of vision based
on your context and voice commands. You can find out much more about Google Glass
at http://www.google.com/glass/start/.

Another class of wearables are those related to health care. The UP by Jawbone consists of a
wristband and an app that tracks how you sleep, move, and eat, then helps you use that
information to feel your best. It can be used to track your sleep patterns, moods, eating patterns,
and other aspects of daily life, and then report back to you via an app on your smartphone or
tablet. As our population ages and technology continues to evolve, there will be a large increase
in wearables like this.

Collaborative

As more of us use smartphones and wearables, it will be simpler than ever to share data with
each other for mutual benefit. Some of this sharing can be done passively, such as reporting our
location in order to update traffic statistics. Other data can be reported actively, such as adding
our rating of a restaurant to a review site.

The smartphone app Waze is a community-based tool that keeps track of the route you are
traveling and how fast you are making your way to your destination. In return for providing your
data, you can benefit from the data being sent from all of the other users of the app. Waze will
route you around traffic and accidents based upon real-time reports from other users.

Yelp! allows consumers to post ratings and reviews of local businesses into a database, and then
it provides that data back to consumers via its website or mobile phone app. By compiling
ratings of restaurants, shopping centers, and services, and then allowing consumers to search
through its directory, Yelp! has become a huge source of business for many companies. Unlike
data collected passively however, Yelp! relies on its users to take the time to provide honest
ratings and reviews.

Printable

One of the most amazing innovations to be developed recently is the 3-D printer. A 3-D printer
allows you to print virtually any 3-D object based on a model of that object designed on a
computer. 3-D printers work by creating layer upon layer of the model using malleable materials,
such as different types of glass, metals, or even wax.

3-D printing is quite useful for prototyping the designs of products to determine their feasibility
and marketability. 3-D printing has also been used to create working prosthetic legs, handguns,
and even an ear that can hear beyond the range of normal hearing. The US military now uses 3-D
printed parts on aircraft such as the F-18. 

3-D printing is one of many technologies embraced by the “maker” movement. Chris Anderson,
editor of Wired magazine, puts it this way:
In a nutshell, the term “Maker” refers to a new category of builders who are using open-source
methods and the latest technology to bring manufacturing out of its traditional factory context,
and into the realm of the personal desktop computer. Until recently, the ability to manufacture
was reserved for those who owned factories. What’s happened over the last five years is that
we’ve brought the Web’s democratizing power to manufacturing. Today, you can manufacture
with the push of a button.

Findable

The “Internet of Things” refers to the idea of physical objects being connected to the Internet.
Advances in wireless technologies and sensors will allow physical objects to send and receive
data about themselves. Many of the technologies to enable this are already available – it is just a
matter of integrating them together.

In a 2010 report by McKinsey & Company on the Internet of Things, six broad applications are
identified:

 Tracking behavior. When products are embedded with sensors, companies can track the
movements of these products and even monitor interactions with them. Business models
can be fine-tuned to take advantage of this behavioral data. Some insurance companies,
for example, are offering to install location sensors in customers’ cars. That allows these
companies to base the price of policies on how a car is driven as well as where it travels.
 Enhanced situational awareness. Data from large numbers of sensors deployed, for
example, in infrastructure (such as roads and buildings), or to report on environmental
conditions (including soil moisture, ocean currents, or weather), can give decision makers
a heightened awareness of real-time events, particularly when the sensors are used with
advanced display or visualization technologies. Security personnel, for instance, can use
sensor networks that combine video, audio, and vibration detectors to spot unauthorized
individuals who enter restricted areas.
 Sensor-driven decision analysis. The Internet of Things also can support longer-range,
more complex human planning and decision making. The technology requirements –
tremendous storage and computing resources linked with advanced software systems that
generate a variety of graphical displays for analyzing data – rise accordingly.
 Process optimization. Some industries, such as chemical production, are installing legions
of sensors to bring much greater granularity to monitoring. These sensors feed data to
computers, which in turn analyze the data and then send signals to actuators that adjust
processes – for example, by modifying ingredient mixtures, temperatures, or pressures.
 Optimized resource consumption. Networked sensors and automated feedback
mechanisms can change usage patterns for scarce resources, such as energy and water.
This can be accomplished by dynamically changing the price of these goods to increase
or reduce demand.

 Complex autonomous systems. The most demanding use of the Internet of Things

involves the rapid, real-time sensing of unpredictable conditions and instantaneous
responses guided by automated systems. This kind of machine decision-making mimics
human reactions, though at vastly enhanced performance levels. The automobile industry,
for instance, is stepping up the development of systems that can detect imminent
collisions and take evasive action.
Autonomous

A final trend that is emerging is an extension of the Internet of Things: autonomous robots and
vehicles. By combining software, sensors, and location technologies, devices that can operate
themselves to perform specific functions are being developed. These take the form of creations
such as medical nanotechnology robots (nanobots), self-driving cars, or unmanned aerial
vehicles (UAVs).

A nanobot is a robot whose components are on the scale of about a nanometer, which is one-
billionth of a meter. While still an emerging field, it is showing promise for applications in the
medical field. For example, a set of nanobots could be introduced into the human body to combat
cancer or a specific disease.

In March of 2012, Google introduced the world to their driverless car by releasing a video on
YouTube showing a blind man driving the car around the San Francisco area. The car combines
several technologies, including a laser radar system, worth about $150,000. While the car is not
available commercially yet, three US states (Nevada, Florida, and California) have already
passed legislation making driverless cars legal.

A UAV, often referred to as a “drone,” is a small airplane or helicopter that can fly without a
pilot. Instead of a pilot, they are either run autonomously by computers in the vehicle or operated
by a person using a remote control. While most drones today are used for military or civil
applications, there is a growing market for personal drones. For around $300, a consumer can
purchase a drone for personal use.

References:

 https://resources.saylor.org/wwwresources/archived/site/textbooks/Information%20Systems
%20for%20Business%20and%20Beyond.pdf
 https://bus206.pressbooks.com/chapter/chapter-12-the-ethical-and-legal-implications-of-
information-systems/
 Neil MacEwan, "The Computer Misuse Act 1990: lessons from its past and predictions for its
future" (2008), Criminal Law Review 955.
 Stefan Fafinski, Computer Misuse: Response, Regulation and the Law (Cullomption, Willan
2009)
 Yaman Akdeniz, Section 3 of the Computer Misuse Act 1990: an Antidote for Computer
Viruses! (1996) 3 Web JCLI [2] including reference to the case of Christopher Pile (aka 'the
Black Baron') in November 1995.
 Derek Wyatt, Computer Misuse Act (amendment) speech
 https://bus206.pressbooks.com/chapter/chapter-13-future-trends-in-information-systems/
