McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved NickelsMcHughMcHugh Nickels Cover

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Chapter 1717 Using Technology to Manage Information 17-2

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved LEARNING GOALS 1.The changing role of business technology 2.Managing Information 3.Accessing and sharing information and knowledge 4.Hardware and Business Software 5.Social Impact and Computer Crime

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved The changing role of business technology Data: are raw, unanalyzed, and unorganized facts and figures.Data: are raw, unanalyzed, and unorganized facts and figures. Information: is the process and organized data that can be used for managerial decision making.Information: is the process and organized data that can be used for managerial decision making.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Knowledge: is information charged with enough intelligence to make it relevant and useful.Knowledge: is information charged with enough intelligence to make it relevant and useful. Virtualization: Accessibility through technology that allows business to be conducted independent of location.Virtualization: Accessibility through technology that allows business to be conducted independent of location. Knowledge Technology: adds a layer of intelligence to filter appropriate information and deliver it when it is needed.Knowledge Technology: adds a layer of intelligence to filter appropriate information and deliver it when it is needed.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Changing Role of IT 1980s= Information Systems 1970s= Data Processing 1990s= Information Technology 1995+= Knowledge Technology

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Managing information Today, business people are deluged with information from voice mail, the Internet, fax machines, , and instant messaging. Business-people refer to this information overload as info glut.Today, business people are deluged with information from voice mail, the Internet, fax machines, , and instant messaging. Business-people refer to this information overload as info glut.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Characteristics of useful information QualityQuality CompletenessCompleteness TimelinessTimeliness RelevanceRelevance

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Meaning Quality: means that the information is accurate and reliable.Quality: means that the information is accurate and reliable. Completeness: there must be enough information to allow you to make a decision but not so much as to confuse the issue.Completeness: there must be enough information to allow you to make a decision but not so much as to confuse the issue. Timeliness: information must reach managers quickly.Timeliness: information must reach managers quickly.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Relevance: different managers have different information needs.Relevance: different managers have different information needs.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Data warehouse Stores information on a single subject over a specific period of time.Stores information on a single subject over a specific period of time. Data mining It is looking for hidden patterns in a data warehouse. Data mining software discovers previously unknown relationships among the data.It is looking for hidden patterns in a data warehouse. Data mining software discovers previously unknown relationships among the data.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Accessing and sharing information and knowledge. Intranets: A companywide network, closed to public access, that uses Internet-type technology.Intranets: A companywide network, closed to public access, that uses Internet-type technology. –Firewalls: consist of hardware, software, or both. Extranet: A semiprivate network that uses internet technology and allows more that one company to access the same information or allows people on different servers to collaborate.Extranet: A semiprivate network that uses internet technology and allows more that one company to access the same information or allows people on different servers to collaborate.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Enterprise Portals: Portals serve as entry points to a variety of resources, such as , financial records, schedules, and employment and benefits files.Enterprise Portals: Portals serve as entry points to a variety of resources, such as , financial records, schedules, and employment and benefits files. Virtual Private Network (VPN): A private data network that creates secure connections, or “tunnels,” over regular Internet lines.Virtual Private Network (VPN): A private data network that creates secure connections, or “tunnels,” over regular Internet lines.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved The ‘Nets  Intranet  Extranet  Virtual Private Network  Enterprise Portals  Broadband Technology  Internet 2

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Hardware Technology ComputersComputers PagersPagers Cellular PhonesCellular Phones PrintersPrinters ScannersScanners FaxFax Personal Data AssistantsPersonal Data Assistants Wireless Information AppliancesWireless Information Appliances NetworkingNetworking

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Hardware and business software What is Hardware? Hardware includes computers, pagers, cellular phones, printers, scanners, fax machines, personal digital assistants (PDAs), and so on.What is Hardware? Hardware includes computers, pagers, cellular phones, printers, scanners, fax machines, personal digital assistants (PDAs), and so on.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Network computing system (client/server computing) Computer systems that allow personal computers (clients) to obtain needed information from huge databases in a central computer (the server)Computer systems that allow personal computers (clients) to obtain needed information from huge databases in a central computer (the server) Groupware It is a software that allows people to work collaboratively and share ideas. It runs on a network and allows people in different areas to work on the same project at the same time.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Business Software Purposes Word ProcessorWord Processor SpreadsheetSpreadsheet DatabaseDatabase GraphicsGraphics /instant message /instant message AccountingAccounting Integrated Software/SuitesIntegrated Software/Suites Groupware- NetworksGroupware- Networks

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Social impact and computer crime 1.- Telecommuting: helps companies save money by allowing them to retain valuable employees during long pregnancy leaves or to tempt experienced employees out of retirement.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Number of Workers Telecommuting In Millions Source: CFO-IT, Spring 2003, p. 14.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Telecommuting Advantages Less Travel TimeLess Travel Time Save MoneySave Money Smaller/Less Expensive OfficeSmaller/Less Expensive Office Disabled WorkersDisabled WorkersDisadvantages Dislocated FeelingDislocated Feeling Loss of EnergyLoss of Energy Turn Work Off?Turn Work Off? Part-Time AlternativePart-Time Alternative

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Internet Attack Targets (2002) Internet Attacks Source: Investors.com, February 13, 2003, p. A4.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Viruses A piece of programming code inserted into other programming to cause some unexpected and, for the victim, usually undesirable event.A piece of programming code inserted into other programming to cause some unexpected and, for the victim, usually undesirable event.

McGraw-Hill/Irwin Understanding Business, 7/e © 2005 The McGraw-Hill Companies, Inc., All Rights Reserved Hackers One current problem with computers is likely to persist in the future is that they are susceptible to hackers.One current problem with computers is likely to persist in the future is that they are susceptible to hackers. (people who breaks in to your computer to still personal information)(people who breaks in to your computer to still personal information)