While I still have little knowledge of GLSL Shaders, I was able to find an Openframeworks Addon that could easily help me generate water ripples on my computer screen based on mouse clicks/drag.
ofxWaterRipple is a simple addon by Antonio Mechas for openframeworks. It allows the creation of water ripples, processed on the GPU with shaders.
I was able to extend it with the help of my Supervisor (Dan Buzzo) to use my webcam feed as the background.
My supervisor also advised that I could use the touch screen function my computer has another data input source.
So whenever a person touches my computer screen or drags his/her finger on it; it forms a line of water ripples.