© 2007 Prentice Hall, Inc. All rights reserved.13–1 Chapter 13 Information Technology for Business

© 2007 Prentice Hall, Inc. All rights reserved.13–2 L E A R N I N G O U T C O M E S After reading this chapter, you should be able to: Discuss the impacts information technology has had on the business world. Identify the IT resources businesses have at their disposal and how these resources are used. Describe the role of information systems, the different type of information systems, and how businesses use such systems. Identify the threats and risks information technology poses on businesses. Describe the ways in which businesses protect themselves from the threats and risks information technology poses.

© 2007 Prentice Hall, Inc. All rights reserved.13–3 What 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 affects business  How, as an employee, manager, or consumer, you can use technology to your best advantage

© 2007 Prentice Hall, Inc. All rights reserved.13–4 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

© 2007 Prentice Hall, Inc. All rights reserved.13–5 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

© 2007 Prentice Hall, Inc. All rights reserved.13–6 IT Impacts (cont’d) 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

© 2007 Prentice Hall, Inc. All rights reserved.13–7 IT Impacts (cont’d) Providing New Business Opportunities  Creating entirely new businesses where none existed before Improving the World and Our Lives  Advancing medical and diagnostic techniques

© 2007 Prentice Hall, Inc. All rights reserved.13–8 IT Building Blocks: Business Resources Internet  A gigantic system of interconnected computers of more than 100 million computers in over 100 countries World Wide Web  A standardized code for accessing information and transmitting data over the Internet

© 2007 Prentice Hall, Inc. All rights reserved.13–9 IT Building Blocks: Business Resources (cont’d) Intranets  Private internal information networks accessible only by employees Extranets  Allow outsiders limited access to internal information networks

© 2007 Prentice Hall, Inc. All rights reserved.13–10 IT Building Blocks: Business Resources (cont’d) 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

© 2007 Prentice Hall, Inc. All rights reserved.13–11 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 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

© 2007 Prentice Hall, Inc. All rights reserved.13–12 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

© 2007 Prentice Hall, Inc. All rights reserved.13–13 Types of Networks (cont’d) 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)

© 2007 Prentice Hall, Inc. All rights reserved.13–14 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

© 2007 Prentice Hall, Inc. All rights reserved.13–15 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  Information system managers operate the systems used for gathering, organizing, and distributing information

© 2007 Prentice Hall, Inc. All rights reserved.13–16 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

© 2007 Prentice Hall, Inc. All rights reserved.13–17 Types of Information Systems Information Systems for Knowledge Workers  Provides 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

© 2007 Prentice Hall, Inc. All rights reserved.13–18 IT Risks and Threats Hackers  Cybercriminals 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

© 2007 Prentice Hall, Inc. All rights reserved.13–19 IT Risks and Threats (cont’d) 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

© 2007 Prentice Hall, Inc. All rights reserved.13–20 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

© 2007 Prentice Hall, Inc. All rights reserved.13–21 IT Protection Measures Preventing Identity Theft  Fair and Accurate Credit Transactions Act of 2005 Preventing Viruses  Anti-virus software

© 2007 Prentice Hall, Inc. All rights reserved.13–22 IT Protection Measures (cont’d) 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