Understanding business 11th by mchugh nickels chapter bonus b

BONUS CHAPTER B

Using
Technology to
Manage
Information

McGraw-Hill/Irwin

Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.


LEARNING OBJECTIVES
1. Outline the changing role of business
technology.
2. List the types of business information, identify
the characteristics of useful information, and
discuss how data are stored and analyzed.
3. Compare the scope of the Internet, intranets,
extranets, and virtual private networks and
explain how broadband technology enabled the
evolution to Web 2.0 and 3.0.
B-2


LEARNING OBJECTIVES
4. Explain virtual networking and discuss the
benefits and drawbacks for cloud computing.
5. Evaluate the human resource, security, privacy,
and stability issues affected by information
technology.

B-3


JACK DORSEY
Twitter
• Before co-founding Twitter in 2006,
Dorsey spent his youth learning
about technology from CB radios to
computer programming.
• He had long wanted to figure out a
way to link the real world with the
virtual world.
• After seeing the growing use of
SMS, he and two friends developed
a way to send and receive news
through small bursts of information.
B-4


NAME that COMPANY

This company used social media to build its
business. Its customers design new products,
name them, and enter them in the company’s
database. Customers may even make YouTube
commercials that are featured on the company’s
video wall. If other customers buy the new
product, the creator gets a small store credit.
Name that company!

B-5


TECHNOLOGY in the 1970s

LO B-1

• Data Processing (DP) -- Name for business
technology in the 1970s; primarily used to improve the
flow of financial information.

• Data are the raw, unanalyzed and unorganized
facts and figures.
• Information is processed and organized data that
managers can use for decision-making.

B-6


TECHNOLOGY in the 1980s

LO B-1

• Information Systems (IS) -- Technology that helps
a company do business (i.e. ATMs and voicemail).

• In the late 1980s, business technology became
known as information technology.
• Information Technology (IT) -- Technology used
to store, retrieve, and send information effectively.

B-7


TECHNOLOGY in the 1990s

LO B-1

• The 1990s introduced the world wide web and
changed how we interact with one another.
• Bluetooth technology created conveniences by
providing wireless communication systems.

B-8


TECHNOLOGY in the
EARLY 2000s

LO B-1

• Business Intelligence (BI) -The use of data analytic tools that
analyze an organization’s raw data
and derive useful insights from it.

• BI helps businesspeople focus
on what’s important in the
organization such as deciding
how to react to problems and
opportunities.

B-9


FURTHER EVOLUTION

LO B-1

What’s in Store for BI

1. Advanced tools will be
mainstream.
2. Mobile BI will be recharged.
3. Facebook will change how
teams collaborate.
4. Economic recovery causes
BI budget growth.
5. Upgrade fever!
Source: Information Week, www.informationweek.com, accessed November 2014.

B-10


TECHNOLOGY
BRINGS CHANGE

LO B-1

• IT allows a business to serve the customer
whenever and wherever they want.
• As IT broke time

and location
barriers, it created
new organizations
and services that
are independent of
location.
B-11


HOW TECHNOLOGY
CHANGES BUSINESS

LO B-1

B-12


TOP U.S. CITIES by
HIGH-TECH EMPLOYMENT

City

LO B-1

# of People Employed by
High-Tech Firms

New York

310,000

Washington, D.C.

295,000

San Jose/Silicon Valley

225,000

Boston

190,000

Dallas-Fort Worth

175,000

B-13


TEST PREP

• How has the role of information technology
changed since the days when it was known as
data processing?
• How has information technology changed the
way we do business?

B-14

KEY TYPES of BUSINESS
INFORMATION AVAILABLE

LO B-2

• Business process
information
• Physical-world
observations
• Biological data
• Public data
• Data that indicate
personal preferences or
intentions

B-15


FOUR CHARACTERISTICS that
MAKE INFORMATION USEFUL

LO B-2

1. Quality
2. Completeness
3. Timeliness
4. Relevance

B-16

TOP SITES to
KEEP YOU CONNECTED

LO B-2

• Skype
• Google Docs
• SurveyMonkey
• GoToMeeting

B-17


EFFECTIVELY USING YOUR
ELECTRONIC FILES

LO B-2

• Use your e-mail
program’s organizing
tools.
• Use consistent file
names.
• Use online backup
services.
• Use desktop search
software.
B-18

BIG DATA and DATA ANALYTICS

LO B-2

• Data is collected from everything we do.

• Data Analytics -- The process of collecting,
organizing, storing, and analyzing large sets of
data (“big data”) in order to identify patterns and
other information that is most useful to the
business now and for making future decisions.
• Data mining is a technique for looking for hidden
patterns and unknown relationships in the data.
B-19


WHO BENEFITS from
BIG DATA and DATA ANALYTICS?

LO B-2

B-20


TEST PREP

• What types of information are available to
businesses today?

• What are the four characteristics of information
that make it useful?
• What is data mining and how do businesses use
it?

B-21


BEYOND the INTERNET

LO B-3

• Intranet -- A companywide network closed to public
access that uses Internet-type technology.

• Extranet -- A semiprivate network that lets more
than one company access the same information or
allows people on different servers to collaborate.

• Virtual Private Network (VPN) -- A private data
network that creates secure connections, or tunnels,
over regular Internet lines.
B-22


INCREASING INTERNET POWER

LO B-3

• Broadband Technology -- Provides a continuous

connection to the Internet that allows users to send
and receive mammoth video, voice, and data files
faster.

• Internet2 – Private
Internet reserved for
research purposes; runs
more that 22,000 times
faster than today’s public
infrastructure.
B-23


BROADBAND CAPS

LO B-3

• As people use more
bandwidth to stream
media, ISPs have been
placing caps on how much
a customer can use.
• Average usage is well
below caps.

B-24


SOCIAL MEDIA

LO B-3

• Millions have developed online profiles on social
networking sites like Facebook and Twitter.
• Social media is thought to be the future of
successful businesses.
• Manhattan’s 4food relies on social media as
customers create products and use their phones
to save their creations in the restaurant’s
database.
B-25