BUSN 3rd kelly mcgowen chapter16

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BUSN

Managing Information and Technology: Finding New Ways to Learn and Link

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.
©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.


16

Managing Information and
Technology:
Finding New Ways to Learn
and Link

• What are the basic elements and key trends of computer
technology?
• What is cloud computing and why is it popular?
• How does data become information and how do decisions
support systems provide information for decision making?
• How have Internet-based technologies changed businessto-consumer and business-to-business commerce?
• What are the problems posed by rapid changes in Internetbased technologies?

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Information Technology: Explosive Change

Computers and communications hardware and software
have changed dramatically over the past few decades
•Flash memory devices are as small as a stamp and can
store sixteen gigabytes of data
More than three thousand times data that could be
stored in a 1950 disk array
•Today’s basic calculator or cell phone has more
processing power than early “mega computers”

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Hardware and Software

Hardware – the physical components used to

collect, store, organize, and process data
Software – refers to computer programs that
provide instruction for a computer to perform a
task
System Software – performs the critical
functions necessary to operate the computer at
the most basic level
BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Application Software

Horizontal Market
Software – applies
broadly across
markets or industries

BUSN

Vertical Market
Software –
specialized

applications for
a specific industry

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Networks

Networks link computer resources using wired or
wireless connections.

 The Internet – computer network;
network of networks
 World Wide Web – interlinked
hypertext documents
 Intranets
 Extranets

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

The Internet and the World Wide Web

• Greatest networking stories of
the last two decades
• A network of networks
• Availability of broadband has
fueled the popularity of the Web
• In 2008, 55% of all U.S. households had a
broadband connection – up 47% in 2007
• Internet 2 (speed) is capable of transmitting five
feature-length DVD movies from one location

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Intranets and Extranets

Intranet is a network
that has the same look
and feel as the Internet
but is limited to a single
firm’s internal Web
servers.

BUSN

Extranets are open
intranets that provide
limited access to
certain group of
stakeholders, such as
key customers and
suppliers.

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

The Role of the IT Department

The role of the department differs for every
company.

• Strategic - making key decisions about
technologies
• Operational – departments make decisions
that functional groups support

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

The Smart Electricity Grid: IT Goes Green

• Technology requires a dependable power supply
• The U.S. power grid has been called the world’s most complex
interconnected machine
• New technology will evolve into a smart electricity grid
High-tech Sensors and meters for real-time information
• Smart grid technology will facilitate a generation of distributed
electricity
• It will help consumers and businesses monitor their electricity
use

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Cloud Computing: The Sky’s the Limit!

• Cloud computing is moving software beyond the
organization’s firewall
• Examples include Flickr, Shutterfly, Google Apps
• Businesses have been reluctant to embrace cloud
computing because of security, reliability and control
• But, Cloud Computing have proven advantages:
 Financial benefit
 Flexibility
 Encourage collaboration
 Processing Speed
BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Information Technology and Decision
Crucial Aid

Making: A

Managers need information to make good decisions

DATA

Information
Databases store files in a logical system
BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Characteristics of Good Information

 Accurate
 Relevant
 Timely
 Understandable

 Secure

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Using Information Technology to Improve Decision
Making

Decision support systems provide access to data and the
processing power to convert the data into information.

Business Intelligence
System
Data Warehousing

Data Mining:
• Use sophisticated statistical
methods to analyze data
• Discover relationships that
had previously been hidden

Data Mining

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Expert Systems

 Guide decision makers
 Integrate knowledge of experts
 Diverse types of systems available
 Individual systems deal with narrow set of
issues
 Can be time-consuming to program

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Information Technology and the World of E-Commerce

Business-to-Consumer (B2C) –
businesses and final consumers interact
E-Commerce – using the Internet to facilitate the exchange of
goods and services

Business-to-Business (B2B) –
businesses buy from and sell to
other businesses
BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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BUSN

Managing Information and Technology: Finding New Ways to Learn and Link

Key Differences Between B2C and B2B E-Commerce

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Using Information Technology in the B2C Market

• Web 2.0
• Advertising on the Internet
• Viral Marketing
• Handling Payments Electronically
• Cybermediary
• Electronic Bill Presentation and Payment

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

How Two Fans Changed the Face of Coke

• Many organizations participate in social networking
to forge relationships with customers
• But, Coca-Cola fans created a successful page that

ramped up 3.4 million fans
Second most popular page on Facebook

• Facebook policy, the product producer has the right
to its page
• Coca-Cola decided to treat the two creators like
partners and work together on the page
BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Viral Marketing: Finding the Perfect Blend

• Blendtec is a powerful niche market blender with limited funds for
national marketing
• The new marketing director decided to go viral with funny videos
starting the CEO
• The videos were highlighted on the website and eventually
uploaded to YouTube
• The videos cost about $50
• Sales soared 43%
• Companies began begging Blendtec to blend their products and
was able to charge them $5,000

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Using Information Technology in the B2B Market



Reduce time, effort and cost of doing
business for buyers and sellers



Reduced technology costs



Large pool of buyers and sellers for
negotiations



Value-added services

Radio Frequency Identification (RFID) has become a
useful technology for supply chain management. The
microchips store and transmit information.
BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Challenges and Concerns Arising from New
Technologies

• Spyware – software that installs itself on computers
without permission to track behavior
• Computer Viruses – programs that install on computers to
rapidly spread to other computers
• Spam- unsolicited commercial emails
• Phishing – an illegitimate business attempting to get you
to disclose personal information
• Pharming – redirecting Internet traffic using fake websites
to trick people into disclosing personal information
BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Information Overload:
Too Much of a Good Thing?

Email, cell phones, Twitter, Blogs, Websites……….
• Set aside time to absorb information
• Prioritize, avoid distractions
• Organize content into folders
• Resist the urge to subscribe to every
information source

Overload can temporarily reduce worker’s
decision-making IQ ten points!
BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Hackers: Break-ins in Cyberspace

• Skilled computer users who can access unauthorized information
• Some hackers (black hat hackers) intend harm
• Cyberterrorists are motivated by
political
or ideological beliefs
• Cyberterrorists launch attacks on
key
industries

Firewalls use hardware or software (sometimes both) to create
a barrier that prevents unwanted messages or instructions
from entering a computer system.
BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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Managing Information and Technology: Finding New Ways to Learn and Link

Strong Passwords

• Relatively long (at least seven characters)

• Include numbers and special characters
• Consists of lower and uppercase characters
• Does not include the user’s real name or a
common word
• Differs significantly from other passwords

BUSN

©2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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