1. Chapter 4 Copyright © 2011 by Nelson Education Ltd. 1 Prepared by Norm Althouse University of Calgary Prepared by Norm Althouse University of Calgary

2. Chapter 4 Learning Outcomes Copyright © 2011 by Nelson Education Ltd. 2 1 Explain how information technology has transformed business and managerial decision making. 2 Discuss why computer networks are an important part of today’s information technology systems. 3 Give examples of the types of systems that make up a typical company’s management information system. 4 Describe how technology management and planning can help companies optimize their information technology systems. 5 Identify some of the best ways to protect computers and the information they contain. 6 List some of the leading trends in information technology.

3. Chapter 4 Information Technology Copyright © 2011 by Nelson Education Ltd. 3 The equipment and techniques used to manage and process information. Information Technology (IT) An executive responsible for managing all information resources and processes. An executive responsible for managing all information resources and processes. Chief Information Officer (CIO) Chief Information Officer (CIO) A worker who develops or uses knowledge – contributing and benefiting from information. A worker who develops or uses knowledge – contributing and benefiting from information. Knowledge Worker Knowledge Worker

4. Chapter 4 Management Information Systems Copyright © 2011 by Nelson Education Ltd. 4 Provide information about a firm’s operations Provide managers with information needed to make decisions Help managers categorize and identify ideas that result in operational and cost benefits Differentiate between data and information

5. Chapter 4 Computer Networks Copyright © 2011 by Nelson Education Ltd. 5 Intranets An internal corporate-wide area network that uses Internet technology to link employees An internal corporate-wide area network that uses Internet technology to link employees Wireless Now Commonplace (e.g., cell phones and PDAs) Now Commonplace (e.g., cell phones and PDAs) Enterprise Portals A customizable internal website that provides proprietary corporate information to a defined user group

6. Chapter 4 Application Service Providers Copyright © 2011 by Nelson Education Ltd. 6 Applications for personal use Collaborative applications Enterprise applications CategoriesofApplicationsCategoriesofApplications A service company that buys and maintains software on its servers and distributes it to subscribers.

7. Chapter 4 Integrated Information Systems Copyright © 2011 by Nelson Education Ltd. 7

8. Chapter 4 Types of Information Systems Copyright © 2011 by Nelson Education Ltd. 8 Expert System Uses artificial intelligence to get advice similar to solutions from consultants Executive Information System Provides specific information for strategic decisions Decision Support System Helps make decisions using computer models that ask “what if” Management Support System Uses the internal master database to perform higher-level analyses for decision making Transaction Processing System Handles the daily business operations of a firm Office Automation System Uses information technology to improve communications throughout the office

9. Chapter 4 Technology Management and Planning Overwhelming management task multiple locations increasing use of PDAs, cell phones, wireless e-mail devices Integrated, company-wide technology plan that: balances business judgment technology expertise technology investment Copyright © 2011 by Nelson Education Ltd. 9 Optimize IT!

10. Chapter 4 Knowledge Resources Copyright © 2011 by Nelson Education Ltd. 10 Focuses on researching, gathering, organizing, and sharing an organization's collective knowledge to improve productivity, foster innovation, and gain a competitive advantage Focuses on researching, gathering, organizing, and sharing an organization's collective knowledge to improve productivity, foster innovation, and gain a competitive advantage Knowledge Management Knowledge Management

11. Chapter 4 Technology Planning 1. Perform general needs assessment 2. Rank projects 3. Rank / choose hardware and software 4. Evaluate benefits of the technology Copyright © 2011 by Nelson Education Ltd. 11

12. Chapter 4 Copyright © 2011 by Nelson Education Ltd. 12 Spending too much Not getting adequate performance and payoff from IT investments Investments do not relate to business strategy Buying the latest technology for technology’s sake Communications between IT specialists and IT users are poor Typical complaints about Information Technology investments Technology Management and Planning

13. Chapter 4 Data Security Issues Copyright © 2011 by Nelson Education Ltd. 13 Unauthorized access to a company’s systems Software that copies and transmits user’s keystrokes Viruses, worms, and Trojan horses Deliberate damage to equipment or information Spam Piracy

14. Chapter 4 Trends in Information Technology Copyright © 2011 by Nelson Education Ltd. 14 Grid Computing Users work collaboratively on a virtual supercomputer using a hardware and software infrastructure that clusters and integrates computers and applications from multiple sources Distributed workforce Employees have no permanent office space and work from home or on the road Digital forensics Digital evidence taken from an individual’s computer or corporate network

15. Chapter 4 Grid Computing Copyright © 2011 by Nelson Education Ltd. 15

16. Chapter 4 Some Final Advice 1. Be careful about sharing information 2. Ask how personal information is to be used 3. Give only the minimum required personal information 4. Be very careful about giving out your SIN 5. Do not give out your credit card except in person unless you trust the other person 6. Use technologies that enhance your security 7. Pay attention to your billing cycles Copyright © 2011 by Nelson Education Ltd. 16