Higher Business Management Unit 1 Learning Outcome 2 Information & Information Technology BM Unit 1 - LO2

What is Information? Information Data Data that has been processed into a form that will assist in decision-making and planning Data Collections of facts or quantities which have been assembled in some formal manner BM Unit 1 - LO2

Sources of Information Primary - gathered first-hand (interview) Secondary - second-hand (government statistics) Internal - within the firm (accounts) External - outwith the firm (competition) BM Unit 1 - LO2

Formats of Information Written - text (can be difficult to interpret) Oral - the spoken word (misunderstandings!) Pictorial - ‘a picture speaks a 1,000 words’ Graphical - pie charts, etc Numerical - the actual figures BM Unit 1 - LO2

The Value of Information High quality information must have Accuracy Timeliness Completeness Appropriateness Availability Cost effectiveness Objectivity Conciseness. BM Unit 1 - LO2

Examples of Information Technology Mainframes Mini-computers Computer networks LANs WANs Internet E-mail Multi-media Video-conference EPOS BM Unit 1 - LO2

Uses of Information Technology in Business Decision-making Information gathering Accounting processes World-wide communications Data processing Database management Text processing Presentation of information Time-management Production TQM J-I-T Stock Control CAD CAM - robotics, CNC lathes, cutting, printing, etc BM Unit 1 - LO2

Costs and Benefits of IT Hardware costs Installation costs Training of staff Need to update Possible data loss Industrial espionage Health and Safety concerns Benefits Speed of data handling Flexibility of systems Increase in productivity Competitive advantage Reduction in staff costs Location less important Facilitates home-working Call centres - customer service and tele-sales BM Unit 1 - LO2

Computer Software for use in Businesses Word processing Databases Spreadsheets Desktop publishing Personal productivity Presentation Decision-making BM Unit 1 - LO2

How Businesses use IT You should have a working knowledge of most of the software packages mentioned and be familiar with the jargon and related terms Prepare a PowerPoint presentation to introduce yourself to the rest of the class. Include photos and/or clip art BM Unit 1 - LO2