1 COMPUTERS, COMMUNICATIONS AND CORRUPTION Slides for a seminar discussion © Denis Osborne, 2006

Denis Osborne, ‘IT’ matters 2 WHY THE INTEREST? INFORMATION TECHNOLOGIES BRING: UNFAMILIAR DEMANDS on managers OPPORTUNITIES to inform or to control RISKS from thieves, ‘hackers’, ‘wreckers’ CONCERNS about ethics – Freedom of information? – Surveillance? False information? – The Poor deprived, having no computer access

Denis Osborne, ‘IT’ matters 3 WHAT’S THE DIFFERENCE? COMPUTERS PROCESS INFORMATION Information and its processing differ in many ways from energy, other physical resources and activities to provide manufactured goods and transport

Denis Osborne, ‘IT’ matters 4 2nd INDUSTRIAL REVOLUTION TRADITIONAL MACHINES GIVE US MORE MUSCLE TO BUILD, MAKE AND MOVE COMPUTERS GIVE US MORE BRAIN TO COMMUNICATE, CALCULATE AND INFORM

Denis Osborne, ‘IT’ matters 5 DIFFERENT CHARACTERISTICS Slides 5 and 6 may be omitted if covered in a session on managers Energy, Manufactures When used, energy and physical products get ‘used up’, lost We want more –more fuel –more food The need is quantity Bigger is cheaper Information When used, information is multiplied but may be distorted We get too much –information overload –finding what we want The need is quality Smaller is faster

Denis Osborne, ‘IT’ matters 6 CONCERNS OF MANAGERS C19 Physical Products High volume sales Secure supplies Focus on inputs, suppliers Big plants near resources Cheap in-house labour Management pyramid workers less educated C21 Information Processes High value added Sales, design, marketing Focus on outputs, customers Small plants near markets Clever team, contractors Management network workers well educated

7 OPPORTUNITIES

Denis Osborne, ‘IT’ matters 8 TO INFORM Communications allow us to inform, – many people, in many places, at low cost And to listen, survey, get feedback, consult The Internet allows state to inform citizens – about laws and policies – about progress with applications, decisions And to introduce direct democracy, if wanted

Denis Osborne, ‘IT’ matters 9 TO CALCULATE Computers give managers tools to analyse costs and spending – make possible cost-accounting, output budgets to monitor unusual events – transfers in bank accounts to handle vast volumes of data – find key words in telephone taps – identify key people on video tape

Denis Osborne, ‘IT’ matters 10 TO HOLD ACCOUNTABLE Computers facilitate accountability – through surveillance (exception reporting) – through routine procedures – through random procedures To line management To customers To the public

Denis Osborne, ‘IT’ matters 11 TO MONITOR Street surveillance Video film as evidence – objections from traditionalists – not in law – objections from technocrats – editing Records of purchases Records of internet access, etc

Denis Osborne, ‘IT’ matters 12 TO CONTROL? EITHER Information gives THEM power to control – Power focused in strong governments and multinationals OR Information leaks; nothing ‘sacred’ or secret – Power lies with small closed groups and terrorists

13 RISKS …

Denis Osborne, ‘IT’ matters 14 ‘IT’ BRINGS RISKS. WHY ? Think About Crime ‘Against’ Computers Remote access; impersonal –criminal feels safe, does not see victim High speed processing –criminal can steal much information in short time Public acceptability –computer crime is clever, fun; unlike theft –the victim feels no threat to their person –individual is beating the organisation

Denis Osborne, ‘IT’ matters 15 ALSO … Detection of ‘computer crime’ is difficult – If I steal information my victim loses nothing! Prosecution is unlikely, Punishment slight –Laws are vague, unenforceable, police lack skills – Penalties less than for theft, mugging Opportunities for crime enormous –Global range, 24-hour access

Denis Osborne, ‘IT’ matters 16 WHO POSES THE THREAT ? People, but with what Motives? Espionage (commercial, political …) –theft of data, –copying data, unknown to victim Personal benefit – distortion of data (such as tax liability) Grievance, Mischief, Revenge (or fun!) –damage to system or data, or both

Denis Osborne, ‘IT’ matters 17 WHAT RISKS? From Theft, Virus, Hacker, Damage, Breakdown Involving the HARDWARE for data storage and processing COMMUNICATIONS Links SOFTWARE Programmes DATA (Information) PEOPLE –irresponsible, stressed …

Denis Osborne, ‘IT’ matters 18 WHAT CONSEQUENCES ? Denial of data to computer user: –access blocked (also from theft of equipment) Distortion of data or programmes: –for example, of balance in bank account Disclosure of data (data stolen): –competitor gains information; –student reads exam papers Destruction of data: –retrieval impossible

19 ACTIONS

Denis Osborne, ‘IT’ matters 20 A RISK ASSESSMENT What are the assets (equipment, information)? What are the threats? What is estimated probability of an ‘attack’? What would be the consequences? What can be done and what would it cost –to detect an attack? –to prevent it, or minimise its effects? –to recover from an attack? –Is prevention worth the cost?

Denis Osborne, ‘IT’ matters 21 PROTECTING OUR SYSTEMS Alert staff to security threats and issues Control physical access to system Control password access to different levels Keep back-up data off site Train staff to back up data regularly Warn about virus risks, use updated checks Enforce penalties for importing software Review and monitor procedures

22 ETHICS

Denis Osborne, ‘IT’ matters 23 PROTECT CITIZENS Citizens should be able to correct information –if records held about them are wrong –requiring enforcement of a ‘Data Protection Act’ Citizens need protection against –‘unfair’ advertising, untrue propaganda –pornography when they do not want it –incitement to race hatred or crime –abuse of power by Government, business … –misuse of data held by Government, others ….

Denis Osborne, ‘IT’ matters 24 PROTECT GOVERNANCE Governments need power to manage well –to keep and use records about citizens –to avoid excess bureaucracy computers can bring –to assess risks from new technologies –to protect the ‘information environment’ Courts need –to use evidence from ‘new’ technology –to be competent in IT and fraud cases, etc