1. Business Essentials, 8th Edition Ebert/Griffin
Information Technology for Business
Business Essentials, 8th Edition Ebert/Griffin
Instructor Lecture PowerPoints
PowerPoint Presentation prepared by
Carol Vollmer Pope Alverno College
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L E A R N I N G O B J E C T I V E S
After reading this chapter, you should be able to:
1. Discuss the impacts information technology has had on the business world.
2. Identify the IT resources businesses have at their disposal and how these resources are used.
3. Describe the role of information systems, the different types of information systems, and how businesses use such systems.
In this chapter we will study information technology for business, as well as the impacts information technology has had on the business world. We will identify the IT resources businesses have at their disposal and how these resources are used. We will describe the role of information systems, the different types of information systems, and how businesses use such systems.
Teaching Tips:
Form a team with another student. In your teams, please select one of the learning objectives we just reviewed. Please prepare a brief introduction to the topic. We will share our answers with the class.
Answers will vary. You can wait to comment on the answers until you have covered the material later in the chapter.
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3. L E A R N I N G O B J E C T I V E S (cont.)
After reading this chapter, you should be able to: 4. Identify the threats and risks information technology poses on businesses. 5. Describe the ways in which businesses protect themselves from the threats and risks information technology poses.
We will also identify the threats and risks information technology poses on businesses and describe the ways in which businesses protect themselves from the threats and risks information technology poses.
Teaching Tips:
In your student teams, please prepare a brief introduction to the learning objective above. We will share our answers with the class.
Answers will vary. You can wait to comment on the answers until you have covered the material later in the chapter.
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What’s in It for Me?
By understanding this chapter’s discussion on the impact of technology on business, you’ll have a clearer picture of:
How technology is used by and how it affects business
How, as an employee, manager, or consumer, you can use technology to your best advantage
What’s in it for you?
By understanding this chapter’s discussion on the impact of technology on business, you’ll have a clearer picture of:
How technology is used by and how it affects business.
How, as an employee, manager, or consumer, you can use technology to your best advantage.
Teaching Tips:
In your student teams, choose one of these two benefits we have just reviewed. Please discuss in your teams how you believe you will achieve the benefit.
Answers will vary. Your responses can wait until later in the class once the material has been covered.
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IT Basics
Information Technology (IT)
The various appliances and devices for creating, storing, exchanging, and using information in diverse modes, including visual images, voice, multimedia, and business data
E-commerce (Electronic Commerce)
The use of the Internet and other electronic means for retailing and business-to-business transactions
Let’s define two basic terms that will help us understand this chapter better.
Information Technology
Information Technology includes the various appliances and devices for creating, storing, exchanging, and using information in diverse modes, including visual images, voice, multimedia, and business data.
E-commerce (electronic commerce)
E-commerce is the use of the Internet and other electronic means for retailing and business-to-business transactions.
Teaching Tips:
In your student teams, please prepare two examples of information technology and e-commerce. We will share our examples with the class.
Answers will vary but should include the items listed above.
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IT Impacts
Creating Portable Offices
Providing remote access to instant information
Enabling Better Service
Coordinating remote deliveries
Creating Leaner, More Efficient Organizations
Allowing more work and customer satisfaction to be accomplished with fewer people
Enabling Increased Collaboration
Using collaboration software and other IT communication devices
Let’s examine some of the impacts of information technology on business.
IT allows for the creation of portable offices.
It provides remote access to instant information.
IT enables better service.
It can coordinate remote deliveries, for example, through bar code scanning.
IT creates leaner, more efficient organizations.
This allows more work and greater customer satisfaction to be accomplished with fewer people.
IT enables increased collaboration.
This occurs through the use of collaboration software and other IT communication devices.
Teaching Tips:
In your student teams, choose one of the four IT impacts we have just reviewed. Then please discuss two examples of your chosen impact. We will share our examples with the class.
Answers will vary but could include examples from the text.
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IT Impacts (cont.)
Enabling Global Exchange
Fostering collaboration on a worldwide scale
Improving Management Processes
Using enterprise resource planning (ERP) to change the nature of the management process
Providing Flexibility for Customization
Creating new manufacturing capabilities that offer customers greater variety (mass customization) and faster delivery cycles
There are more impacts of IT on business. Let’s look at these:
IT enables global exchange.
It fosters collaboration on a worldwide scale.
IT improves management processes.
It achieves this by using enterprise resource planning (ERP) software to change the nature of the management process.
IT provides flexibility for customization.
It creates new manufacturing capabilities that offer customers greater variety (mass customization) and faster delivery cycles.
Teaching Tips:
In your student teams, choose one of the three IT impacts we have just reviewed. Then please discuss two examples of your chosen impact. We will share our examples with the class.
Answers will vary but could include examples from the text.
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IT Impacts (cont.)
Providing New Business Opportunities
Creating entirely new businesses where none existed before
Improving the World and Our Lives
Advancing medical and diagnostic techniques
Internet
There are two additional impacts of information technology.
IT provides new business opportunities.
It creates entirely new businesses where none existed before.
IT improves the world and our lives.
It advances medical and diagnostic techniques.
Teaching Tips:
In your student teams, choose one of the three IT impacts we have just reviewed. Then please discuss two examples of your chosen impact. We will share our examples with the class.
Answers will vary but could include examples from the text.
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9. FIGURE 13.1 Networking for Mass Customization
Figure 13.1 provides an example of how networking can be used for mass customization of production.
Teaching Tips:
In your student teams, please discuss how this network assists the production company, its supplier, and its customer. We will share our discussion with the class.
Answers will vary but should relate to enterprise resource planning.
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10. IT Building Blocks: Business Resources
Internet
A gigantic system of more than 100 million interconnected computers in more than 100 countries
World Wide Web
A standardized code for accessing information and transmitting data over the Internet
Now let’s examine some of the building blocks of information technology, which offer resources to businesses.
The Internet: The Internet is a gigantic system of more than 100 million interconnected computers in more than 100 countries.
The World Wide Web: The Web uses a standardized code for accessing information and transmitting data over the Internet.
Teaching Tips:
Continue through the next two slides.
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11. IT Building Blocks: Business Resources (cont.)
Intranets
Private internal information networks accessible only by employees
Extranets
Allow outsiders limited access to internal information networks
Two more additional IT building blocks include:
Intranets: Intranets are private internal information networks accessible only by employees.
Extranets: Extranets allow outsiders limited access to internal information networks.
Teaching Tips:
Again, continue through the next slide.
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12. IT Building Blocks: Business Resources (cont.)
Electronic Conferencing
Allows groups of people to communicate simultaneously from various locations via , phone, or video
Data conferencing
Video conferencing
VSAT Satellite Communications
Satellite-based private network for voice, video, and data transmissions
Two more additional IT building blocks include:
Electronic Conferencing: Electronic conferencing allows groups of people to communicate simultaneously from various locations via , phone, or video.
This can include data and video conferencing.
VSAT Satellite Communications: VSAT is a satellite-based private network for voice, video, and data transmissions.
Teaching Tips:
In your student teams, please choose one of the six IT building blocks we have reviewed over the past few minutes. Then please give two specific examples of your chosen building block.
Answers will vary but could include examples from the text.
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13. Networks: System Architecture
Computer Network
A group of two or more computers linked together by some form of cabling (fiber-optic, coaxial, or twisted wire) or by wireless technology to share data or resources such as a printer
Client-Server Network
Clients
The laptop or desktop computers through which users make requests for information or resources
Servers
The computers that provide the services shared by users
Now let’s take a look at computer networks and the architecture of its systems.
A computer network is a group of two or more computers linked together by some form of cabling, such as fiber-optic, coaxial, or twisted wire, or by wireless technology so the linked computers can share data or resources such as a printer.
A client-server-based network has two parts:
The clients are the laptop or desktop computers through which users make requests for information or resources.
The servers are the computers that provide the services shared by users.
Teaching Tips:
In your student teams try to draw an example of a client-server network. We will share our examples with the class.
Let students share their diagrams.
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Types of Networks
Wide Area Networks (WANs)
Computers linked over long distances
Local Area Networks (LANs)
Computers linked in a smaller area, such as all of a firm’s computers within a single building
Wireless Networks
Use airborne electronic signals to link computers and devices
Blackberry system
Let’s look at three more types of computer networks.
Wide Area Networks, or WANs, are computers linked over long distances.
Local Area Networks, or LANs, are computers linked in a smaller area, such as all of a firm’s computers within a single building.
Wireless networks use airborne electronic signals to link computers and devices.
Let’s take a look at a Blackberry system and how it works.
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15. FIGURE 13.2 Blackberry Wireless Internet Architecture
Let’s look at this example of a Blackberry Wireless Internet system’s architecture.
The user company’s computers and system software sit behind a firewall, which protects them from viruses and electronic data theft.
The user company’s computers and system software connect to the Internet through a system of wireless wide area networks.
It is through signals from these wireless WANs that the Blackberry handheld devices in the field receive their signals from the company.
Teaching Tips:
In your student teams, discuss which system the Blackberry Wireless Internet Architecture represents.
A: The Blackberry Wireless Internet Architecture represents a wireless wide area network.
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16. Types of Networks (cont.)
Wi-Fi (Wireless Fidelity)
An access point that forms its own small network
Wireless LAN or WLAN
A wireless local area network
WiMax (Worldwide Interoperability for Microwave Access)
As we saw in the diagram there are two final types of networks we need to discuss.
The first is Wi-Fi, or wireless fidelity networks.
These Wi-Fi networks connect through an access point that forms its own small network.
The second is wireless LAN or WLAN networks.
These are wireless local area networks.
A sub-format of this is called WiMax, or Worldwide Interoperability for Microwave Access.
Teaching Tips:
In your student teams, please choose one of the five types of networks we have discussed. Then please give two examples of these and how they might be used by a business.
Answers will vary, but should relate back to each of the networks you discussed.
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Hardware and Software
Hardware
Physical components such as laptops, desktops, handheld computers, keyboards, monitors, system units, and printers
Software
System software
Application (productivity) software
Groupware
In order to build a computer network, both computer hardware and software are needed. Let’s look at both of these.
First let’s look at computer hardware.
Computer hardware includes the physical components such as laptops, desktops, handheld computers, keyboards, motherboards, CPUs.
Next let’s talk about software.
Software includes system software such as Windows Vista or Linux.
It also includes application or productivity software such as Microsoft or Open Office, ERP software, etc.
It also includes groupware software that can be shared across a network such as Lotus Notes.
Teaching Tips:
In your student teams please come up with two examples of software used in business. Also, please discuss the purpose of the software.
Answers can include such software as Microsoft or Open Office Word (word processing), Excel (spreadsheet), Access (database), PowerPoint (presentation), Front Page (web design), or other software such as customer relationship management software like Goldmine or Act! or different types of ERP or MRP software used in manufacturing or enterprise management.
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18. Information Systems: Harnessing the Competitive Power of IT
Data
Raw facts and figures
Information
The meaningful, useful interpretation of data
Information System (IS)
A system that uses IT resources and enables managers to turn data into information for use in decision making
Information system managers operate the systems used for gathering, organizing, and distributing information
Now let’s examine the competitive power of IT and what is needed to harness it.
First we need data, or raw facts and figures.
Next we need information, which includes the meaningful, useful interpretation of the data.
Then we need an information system.
An information system uses IT resources and enables managers to turn data into information for use in decision making.
Information system managers operate the systems used for gathering, organizing, and distributing information.
Teaching Tips:
In your student teams, please think of two examples of how an information system could be used to provide competitive advantage for a company.
Answers will vary but should address the types of competitive information that could be included in such a system.
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19. Leveraging Information Resources
Data Warehousing
The collection, storage, and retrieval of data in electronic files
Data Mining
The application of electronic technologies for searching, sifting, and reorganizing pools of data to uncover useful information
It is also important to leverage information resources. This is accomplished through:
Data warehousing, which is the collection, storage, and retrieval of data in electronic files.
Data mining, which is the application of electronic technologies for searching, sifting, and reorganizing pools of data to uncover useful information.
Teaching Tips:
In your student teams, please think of an example of either data warehousing or data mining. We will share our examples with the class.
Answers will vary.
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20. Types of Information Systems
Information Systems for Knowledge Workers
Provide resources to create, store, use, and transmit new knowledge for useful applications
Information Systems for Managers
Management information systems (MIS)
Provide reports, schedules, plans, and budgets that can then be used for making decisions
Decision support systems (DSS)
Interactive systems that create virtual business models and test them with different data to see how they respond
Let’s examine different types of information systems.
Information systems for knowledge workers provide resources to create, store, use, and transmit new knowledge for useful applications.
Information systems for managers include management information systems or MIS, which provide reports, schedules, plans and budgets that can then be used for making decisions.
It also includes decision support systems or DSS, which are interactive systems that create virtual business models and test them with different data to see how they respond.
Teaching Tips:
In your student teams, please prepare two examples of the two types of information systems we have just discussed. We will share our examples with the class.
Answers will vary.
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IT Risks and Threats
Hackers
Cyber criminals who gain unauthorized access to a computer or network, either to steal information, money, or property, or to tamper with data
Wireless mooching
Denial of service (DOS) attacks
Identity Theft
Stealing of personal information to get loans, credit cards, or other monetary benefits by impersonating the victim
Phishing
Pharming
Let’s examine information technology risks and threats.
One threat comes from hackers.
Hackers are cyber criminals who gain unauthorized access to a computer or network, either to steal information, money, or property, or to tamper with data.
These can include wireless mooching or denial of service (DOS) attacks.
A risk comes from identity theft.
Identity theft includes stealing of personal information to get loans, credit cards, or other monetary benefits by impersonating the victim.
Identity theft can occur through phishing or pharming for data.
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22. IT Risks and Threats (cont.)
Intellectual Property Theft
Theft of a product of the mind—something produced by the intellect, with great expenditure of human effort—that has commercial value
Computer Viruses, Worms, and Trojan Horses
Malicious programs that, once installed, can shut down a computer system
Spyware
Software that transmits stolen personal information
Spam
Widely broadcast, unsolicited
Other security risks and threats include:
Intellectual property theft.
This includes theft of a product of the mind, or something produced by the intellect, with great expenditure of human effort, that has commercial value.
Computer viruses, worms, and Trojan horses.
These are malicious programs that, once installed, can shut down a computer system completely.
Spyware is software that transmits stolen personal information.
Spam is widely broadcast, unsolicited .
Teaching Tips:
In your student teams, please choose one or more forms of IT risks and threats that we have just discussed. Then please discuss examples of those you chose. Your discussion can include experiences you have had with these IT risks and threats; however, please apply that experience to its impact on a business. We will share our examples with the class.
Answers will vary widely.
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23. IT Protection Measures
Preventing Unauthorized Access
Firewalls
Security systems with special software or hardware devices designed to keep computers safe from hackers
Components for filtering messages:
Security policy
Router
Now let’s examine some IT protection measures.
First, all companies should have a firewall.
Firewalls are security systems with special software or hardware devices designed to keep computers safe from hackers.
Second, there are components for filtering messages. These include:
The development of a security policy within a company.
A router, which is a device that connects the computer network to the external environment.
Teaching Tips:
In your student teams, please develop a brief example of a sample IT security policy. We will share our examples with the class.
These sample policies will vary, but should include Internet use policies as well as requirements for the use of a router and firewall.
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24. IT Protection Measures (cont.)
Preventing Identity Theft
Fair and Accurate Credit Transactions Act of 2005
Preventing Viruses
Anti-virus software
Two more examples of IT protection measures include:
Preventing identity theft. This type of theft was addressed in the Fair and Accurate Credit Transactions Act of 2005.
Preventing viruses, through the use of anti-virus software.
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25. IT Protection Measures (cont.)
Protecting Electronic Communications
Encryption software
Works by locking an message to a unique code number (digital fingerprint) for each computer so only that computer can open and read the message
Avoiding Spam and Spyware
Anti-spyware software
CAN-SPAM Act of 2006
Two more IT protection measures include:
Protecting electronic communications through the use of encryption software.
This software works by locking an message to a unique code number, called a digital fingerprint, for each computer so only that computer can open and read the message.
Avoiding Spam and Spyware through the use of anti-spyware software.
The CAN-SPAM Act of 2006 also addresses the legality of spam and spyware use.
Teaching Tips:
In your student teams, please discuss the impact of one of the four IT protection measures we have just reviewed. We will share our examples with the class.
Answers will vary.
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Key Terms
anti-virus software
client-server network
computer network
computer-aided design (CAD)
data
data mining
data warehousing
decision support system (DSS)
e-commerce
electronic conferencing
encryption system
extranet
firewall
hacker
hardware
identity theft
information
information system
information systems managers
information technology (IT)
There are many key terms that we learned in this chapter.
Teaching Tips:
Please form teams of two students. Each team will be assigned a number of terms. Your team should write an appropriate sentence using the key terms assigned to your group, which we will share with the class.
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Key Terms (cont.)
spyware VSAT satellite communications wide area network (WAN) Wi-Fi wireless local area network (wireless LAN or WLAN) wireless wide area network (WWAN) World Wide Web
software spam intellectual property Internet intranet knowledge information system local area network (LAN) management information system (MIS) mass-customization
There are many key terms that we learned in this chapter.
Teaching Tips:
Please form teams of two students. Each team will be assigned a number of terms. Your team should write an appropriate sentence using the key terms assigned to your group, which we will share with the class.
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