What are the implications of digital technology for businesses and their customers, including security and the law?
Implications of digital technology for business and customers: effects on ways of working and jobs, data security threats and protection, and the legislation businesses must follow when handling data and trading online.
A CCEA GCSE Business and Communication Systems answer on the implications of digital technology for business and customers. Covers effects on ways of working and jobs, data security threats and protection methods, and the legislation, such as data protection, that businesses must follow when handling personal data and trading online.
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What this dot point is asking
Digital technology has transformed how businesses work, and Unit 2 expects you to explain its implications for business and customers: the effects on ways of working and jobs, the security threats to data and how to protect it, and the legislation a business must follow when handling personal data and trading online. The exam links the benefits of technology to its responsibilities, keeping data safe and obeying the law.
Effects on ways of working and jobs
Digital technology changes both how people work and which jobs exist.
Security threats to data
Storing and sending data digitally exposes a business to several threats.
Protecting data
A business must take steps to keep data secure, and the exam expects several methods.
- Passwords and access rights, so only authorised staff can open sensitive files; require strong passwords.
- Anti-virus software and a firewall, kept up to date, to block viruses and unauthorised access.
- Encryption, so data is unreadable if intercepted or stolen.
- Regular backups, so data can be recovered if it is lost, damaged or stolen.
- Staff training, so employees can spot phishing and follow security procedures, and locking devices when unattended.
For online trading, secure (https) payment pages protect customers' card details.
Legislation
Because a business holds personal data about customers and staff, it must obey the law.
Worked example: handling a data responsibility
Why this matters
Digital technology gives businesses huge advantages, speed, reach, automation, but with them comes responsibility: a business that loses customer data or breaks the law faces fines, lost trust and lost custom, and its staff face changing and sometimes disappearing jobs. Understanding the threats, the protections and the legal duties lets you evaluate the real impact of technology on a business and its customers, which is exactly what Unit 2 examines. It links directly to digital trading and to communication.
Try this
Q1. State two security threats to a business's data. [2 marks]
- Cue. Any two: viruses or malware, hacking, phishing, theft of devices, accidental loss.
Q2. Give one way a business can protect its data. [1 mark]
- Cue. Any one: passwords and access rights, anti-virus software and a firewall, encryption, regular backups, staff training.
Q3. Explain one requirement of data protection law. [2 marks]
- Cue. For example, personal data must be kept secure and used only for its stated purpose; or it must be accurate and not kept longer than necessary, with people able to see their own data.
Exam-style practice questions
Practice questions written in the style of CCEA exam questions on this dot point, with worked answer explainers. The year tag is the paper they imitate, not the source.
CCEA Unit 2 (style)5 marksDescribe three ways a business can keep its data and its customers' data secure.Show worked answer →
A 5-mark description question testing AO1 and AO2 (three methods, with detail).
Method one: use passwords and access rights so only authorised staff can open sensitive files, and require strong passwords (up to 2 marks).
Method two: install and update anti-virus software and a firewall to block viruses and unauthorised access from outside (1-2 marks).
Method three: encrypt sensitive data so it is unreadable if intercepted, and back up data regularly so it can be recovered if lost or stolen (1-2 marks). Other valid points: staff training to spot phishing, locking devices, secure (https) payment pages. Five marks need three clearly described methods, not just named.
CCEA Unit 2 (style)4 marksExplain why a business that stores personal data about its customers must follow data protection law, and state two things such a law requires.Show worked answer →
A 4-mark explain question.
A business must follow data protection law because it holds personal data, names, addresses, payment details, that could harm customers if it were lost, misused or stolen; the law protects people's privacy and the business can be fined or lose trust if it breaks the rules (up to 2 marks).
Two requirements: personal data must be kept secure and protected from unauthorised access; and it must be used only for the stated purpose, kept accurate and up to date, and not kept longer than necessary, with people having the right to see the data held about them (2 marks for any two valid requirements). A strong answer links the law to protecting the customer and to the consequences for the business of breaking it.
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