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Business in a Changing World McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved. Chapter 4 Managing Information Technology & E-business 2

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4-4 Reesycakes.com -- Reesycakes.com -- Bargaining online Thanks to the Internet, haggling has never been easier, especially in the area of online apparel sales.

4-5 Technology – Impact on Our Lives Information technology– processes and applications that create new methods to solve problems, perform tasks, and manage communication.

4-6 The Impact of Technology Technology – the application of knowledge, including the processes and procedures to solve problems, perform tasks, and create new methods to obtain desired outcomes

4-7 Information Technology (IT) is changing traditional products. AFE Cosmetics and Skincare provides customized cosmetics and skin care products.AFE Cosmetics and Skincare Technology is the driving force in advancing economic systems and the quality of life. Technology – Impact on Our Lives

4-8 Technology – Impact on Our Lives Improved global access Faster productivity growth Improved efficiency Reduced costs Technology has improved business effectiveness and reach

4-9 Managing Information Data – numerical or verbal descriptions related to statistics or other items that have not been analyzed or summarized Data, knowledge, & information

4-10 Managing Information Knowledge – an understanding of data gained through study or experience. Data, knowledge, & Information

4-11 Managing Information Information – meaningful and useful interpretation of data and knowledge that can be used in making decisions. Data, knowledge, & Information

4-12 Management Information Systems Management information system (MIS) – used for organizing and transmitting data into information that can be used for decision making. Information is a major business resource. It is an asset to be developed and distributed to managers.

4-13 Management Information Systems The Vit Watch information system enhances management at Scheid VineyardsScheid Vineyards

4-14 Management Information Systems Breaks down time and location barriers Global information access Anytime, anywhere with wireless Management Information System (MIS)

4-15 Management Information Systems MIS & Data Collection Collect data Store data Update data Process and present information

4-16 Management Information Systems Database -- A collection of data stored in one place and accessible throughout the network.

4-17 The Internet Internet – Global information system than links many computer networks together.

4-18 The Internet World Wide Web – a collection of interconnected Web sites or pages of text, graphics, audio, and video within the Internet.

4-19 The Internet Intranet– a network of computers similar to the Internet that is available only to people inside an organization.

4-20 The Internet Extranet– a network of computers that permits selected companies and other organizations to access the same information and may allow collaboration and communication about the information.

4-21 History of Information Technology

4-22 Wireless Technologies PDA’s Smartphones Digital devices Apple iPhone Wi-Fi Networks WiMax VOIP RFID GPS MMS

4-23 E-Business E-Business – carrying out the goals of business through utilization of the internet. E-business has the same goal as traditional business.

4-24 E-Business Business-to-Business (B2B) Business-to-Consumer (B2C) Consumer-to-Consumer (C2C) E-business models

4-25 E-Business B2B– use of the Internet for transactions and communications between organizations. Cisco Systems Ford Motor Company General Motors IBM Procter & Gamble Business-to-Business (B2B)

4-26 E-Business B2C– delivery of products and services directly to individual consumers through the Internet (e-tailers). Dell Computer MapQuest Travelocity.com Expedia RetailMeNot.com Business-to-Consumer (B2C)

4-27 E-Business C2C– market in which consumers market goods and services to each other through the Internet. eBay Zshops at Amazon.com Consumer-to-Consumer (C2C)

4-28 E-Business E-Commerce 28

4-29 Customer Relationship Management CRM – focuses on using information about customers to crate strategies that develop and sustain desirable long-term customer relationships. CRM

4-30 Customer Relationship Management Developing long-term customer relationships Building satisfying relationships Provide the best product solution for customers CRM

4-31 Legal and Social Issues Privacy Consumer tracking via Internet purchases Data gathering via “cookies” Federal Trade Commission (FTC) TRUSTe Better Business Bureau Online Privacy, identity theft, & intellectual property

4-32 Legal and Social Issues Spam – unsolicited commercial . racking via Internet purchases Data gathering via “cookies” Federal Trade Commission (FTC) TRUSTe Better Business Bureau Online Privacy, identity theft, & intellectual property

4-33 Privacy Laws affecting commerce

4-34 Legal and Social Issues How Spam Volume Has Changed

4-35 Legal and Social Issues Spam Volume by Country 35

4-36 Legal and Social Issues Identity Theft – criminals obtain personal information allowing them to impersonate others in order to use their credit to obtain financial accounts and make purchases. 258,427 cases reported in 2007 Privacy, identity theft, & intellectual property

4-37 Legal and Social Issues Intellectual Property & Copyrights– protecting rights to property including: Songs Movies Books Software Ideas, creative materials American Society for Industrial Security (ASIS) American Society for Industrial Security Privacy, identity theft, & intellectual property