Chapter 17 THE FUTURE OF BUSINESS Gitman & McDaniel 5 th Edition THE FUTURE OF BUSINESS Gitman & McDaniel 5 th Edition Chapter Using Technology to Manage Information Prepared by Deborah Baker Texas Christian University Prepared by Deborah Baker Texas Christian University 17

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 2 1How has information technology transformed business and managerial decision making? 2Why are computer networks an important part of today’s information technology systems? 3What types of systems make up a typical management information system? 4How can technology management and planning help companies optimize their information technology systems? 5What are the best ways to protect computers and the information they contain? 6What are the leading trends in information technology? Learning Goals

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 3 Principles of Information Technology The equipment and techniques used to manage and process information. Information Technology (IT)

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 4 Learning Goal 1 How has information technology transformed business and managerial decision making? 1

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 5 Management Information Systems  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 1

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 6 2 Learning Goal 2 Why are computer networks an important part of today’s information technology systems?

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 7 Wide Area Network Connects computers at different sites 2 Computer Networks LAN Local Area Network Connects computers at one site WAN

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 8 2 Computer Networks Intranets An internal corporate-wide area network that uses Internet technology to link employees Extranets Refer to Online Chapter, “Using the Internet for Business Success”

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 9 2 Virtual Private Networks VPN Client VPN Client Local ISP Internal LAN VPN Server VPN Server Public Network Public Network

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 10 2 Application Service Providers Applications for personal use Collaborative applications Enterprise applications CategoriesofApplicationsCategoriesofApplications

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 11 2 Application Service Providers ASP Users IT Department Software vendor Software vendor Hardware vendor Hardware vendor Developers

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 12 3 Learning Goal 3 What types of systems make up a typical management information system?

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 13 3 Integrated Information Systems Transaction Processing System Transaction Processing System External data sources External data sources Internal data sources Internal data sources Internal database Internal database Information reporting system Information reporting system Expert Systems Expert Systems Decision Support Systems Decision Support Systems Suggested decisions Suggested decisions Executive Information Systems Executive Information Systems External databases External databases Possible solutions Possible solutions Operational Managers Middle Managers Top Executives

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 14 3 Types of Information Systems 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

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 15 3 Office Automation Systems Word Processing Fax Department Scheduling Department Scheduling Electronic Bulletin Boards Office automation Pagers Voice mail PDAs Cell Phones Wireless

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 16 4 How can technology management and planning help companies optimize their information technology systems? Learning Goal 4

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 17 4 Technology Management and Planning  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

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 18 4 IT Project Planning  What are the company’s overall objectives?  What problems does the company want to solve?  How can technology help meet those goals and solve the problems?  What are the company’s IT priorities both short and long term?  What type of technology infrastructure best serves the company’s needs?  Which technologies meet the company’s requirements?  Are additional hardware and software required? If so, will they integrate with the company’s existing systems?  Does the system design and implementation include the people and process changes, in addition to the technological ones?  Do you have the in-house capabilities to develop and implement the proposed applications, or should you bring in an outside specialist?

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 19 4 Technology Planning 1.Perform general needs assessment 2.Rank projects 3.Rank / choose hardware and software 4.Evaluate benefits of the technology

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 20 What are the best ways to protect computers and the information they contain? 5 Learning Goal 5

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 21 5 Computer Crimes and Problems Deliberate damage to equipment and information Software piracy Unauthorized access and Security breaches Computer viruses Spam Protecting Computers and Information

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 22 What are the trends in information technology? 6 Learning Goal 6

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 23 6 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 Enterprise Portals A customized internal Website that provides proprietary corporate information to a defined user group Trends in Information Technology

Chapter 17 Copyright ©2005 by South-Western, a division of Thomson Learning. All rights reserved 24 6 Grid Computing