©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology and Information Management Electronic Technology Fundamentals Information Management Technology and Business Strategy CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Electronic Technology Fundamentals GOALS ● Describe the role of information in a modern business. ● Describe how the Internet provides information to users. ● Describe the basic technology infrastructure used by businesses. 2 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Managing in a Technology World ● Knowledge workers ● People who work with information ● Managers, supervisors, & workers at all levels that use data and use information to make decisions ● Data ● Original facts & figures that businesses generate ● Information ● Data processed in a meaningful way 3 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology Change ● Computing ● Electrical digital computers developed during WWII in the 1940’s ● 1950’s-1980’s, mainframe computer became center of a business’s computer system ● Early 1980’s, personal computer and PC software allowed individuals to enter and process their own data ● 1990’s, the Internet allowed people and businesses to communicate with each other and access to information 4 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology Change ● Moore’s Law - Gordon Moore (Co-founder of Intel Corporation) ● Predicted that the amount of data that a computer chip could process would double about every 18 months ● Wireless technology ● Evolves through a series of generations ● Newest is the fourth generation, 4G 5 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e The Internet Platform ● Internet or Net ● Worldwide network of linked computers that allows users to transfer data and information from one computer to another anywhere in the world ● World Wide Web, WWW, or Web ● Set of standards that have made the internet accessible to the average person ● Researchers and military first main users 6 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Distributing Information ● Telecommunications ● The movement of information from one location to another electronically ● Moves through physical lines (telephone lines & fiber optic and coaxial cables) and Wireless and satellite (broadcast transmission) ● Local area network (LAN) ● A network of linked computers that serves users in a single building or building complex 7 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Distributing Information ● Server or file server ● A computer that stores data and applications software for all workstations ● Wide area network (WAN) ● A network of linked computers that covers a wide geographic area such as a city, state, or country ● Cloud ● Is a name given to the data storage systems over widely dispersed Internet networks 8 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Distributing Information ● Intranets ● A private company network that allows employees to share resources no matter where they are located ● Employees can work on same project, share, plan & implement ideas ● Employees can use company records to perform their tasks ● Employees can check employer-sponsored events, such as training programs, or learn about health care benefits, and see the balance in their retirement accounts 9 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Distributing Information ● Extranets ● A private network that companies need in order to share selected information with selected people outside the organization ● For example: merchandise supplier can track a companies inventory ● Search engine ● A program that assists in locating information on networks 10 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Information Management GOALS ● Describe the information systems that managers use to aid in their decision making. ● Discuss the advantages and disadvantages of Internet-based communication. ● Describe how information systems can improve business operations. 11 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Managing Technology ● Organizing information systems ● Information overload leads to needless costs & ineffective ways to arrive at decisions ● Organizations need effective means for managing information ● Information systems is a computer system that processes data into meaningful information ● Three key types are MIS, DSS and EIS 12 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Managing Technology ● Management information system (MIS) ● Integrates data from various departments to make the information available to help managers with day-to-day business operations ● Decision support system (DDS) ● Helps managers consider alternatives in making specific decisions (performs a what-if analysis) 13 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Managing Technology ● Executive information system (EIS) ● Combines and summarizes ongoing transactions within the company to provide top-level executives with information needed to make decisions affecting the goals and directions of an organization ● For example: collects outside information regarding competitors, the state of the economy, and government policies 14 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Networked Communication ● Voice over Internet Protocol (VoIP) ● Uses the Internet for telephone services ● Allows people to share application software and collaborate by using texts and graphic tools 15 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Networked Communication ● Information security ● Chief information officer (CIO) must have extensive knowledge of electronic equipment along with expert management skills ● CIO must make sure hackers cannot steal, destroy, or alter information ● Information managers must ensure their firms use firewall systems to protect their information ● Firewall uses special software that screens people when entering a network (passwords, fingerprints, voice recognition, retina scanning) 16 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Improving Business Operations ● Internet ● Important to business operations and controlling cost ● Digital dashboards ● A management information system that allows multiple sources of information to be displayed graphically on a computer ● Provides constant real-time information 17 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology and Business Strategy GOALS ● Describe technology’s impact on strategy. ● Describe the planning process for developing an online business. ● Discuss types of problems that employees face in today’s high-technology organizations. 18 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology’s Impact on Strategy ● Customer data ● Data mining – the process of using data in a database to find relationships between individuals and their behavior or preference ● For example: helps stores make decisions about inventory 19 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology’s Impact on Strategy ● Developing customer profiles ● Social networking allows users to post information about themselves and share that information with others ● Competitor data ● Companies that trade stock put report information online ● Companies sell products online ● Companies put reviews of products online 20 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e E-Business Planning ● Business planning for a website ● First step is to determine the purpose of it ● Does it operate online only or just part of a business ● Second step is to study the business’s customers, their needs, and their online experience ● Which products will customers buy online and which products are customers more likely to buy from a brick- and-mortar store ● Third step is to plan the design aspect of the e- business website 21 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e E-Business Planning ● Technology development ● Web server – a computer that contains the software and stores the data for networks ● Web-hosting service – a private business that maintains the websites of individuals and organizations on its computers for a fee ● Domain name – the website owners unique name that identifies the site 22 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e E-Business Planning ● Technology development ● Order processing ● Electronic shopping carts are programs that keep track of shoppers’ selections as they shop, provide an order form for them to complete, and submit the form to the company through the Internet ● Website design ● Must be attractive and easy to use ● Customers must be able to find the information they are looking for 23 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e E-Business Planning ● Site promotion ● E-business should register with each search engine like Google, Bing, and Yahoo ● The domain name should be on all company materials such as business cards, brochures, and correspondence ● Open for business ● Make sure website is maintained properly and updated regularly ● Need to keep in contact with customers to get feedback about the website and purchasing experience 24 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology’s Impact on Work and Workers ● Health problems ● Employees complain of eyestrain, backaches, and hand weakness and pain ● Managers must make sure employees have proper workspaces, furniture so keyboards and chairs are at proper height for comfort 25 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology’s Impact on Work and Workers ● Health problems ● Carpal tunnel syndrome (CTS) occurs when the median nerve, which runs through a tunnel in the wrist, is compressed or irritated ● CTS can be reduced by proper posture when using the computer, using a wrist rest or use a ergonomic keyboard, and limiting repetitive motions involving the wrist ● Ergonomics is the science of adapting equipment to the work and health needs of people ● Ergonomic experts study the relationship between people and machines 26 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e Technology’s Impact on Work and Workers ● Changed jobs ● Computers now do jobs that employees used to do manually ● Technology redesigns the work flow process 27 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e The Future Impact of Technology ● Data mining ● Valuable in understanding the customer’s needs ● Social shopping ● Allows customers to use social network to shop together or couponing sites such as Groupon and Living Together to gather shoppers at a business 28 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e The Future Impact of Technology ● Biometric security ● To enhance security, biometric systems such as voice recognition and eye scans to identify individuals to allow access to rooms, buildings, computers, and point-of service terminals ● Wireless technology ● Allows computers and other electronic devices to communicate with each other through the Internet 29 CHAPTER 12

©2013 Cengage Learning. All Rights Reserved. Business Management, 13e The Future Impact of Technology ● Cell phone technology ● Allow smart phones to act as information hubs, which allow users to input data directly to a central location ● For example: nurses use cell phones to enter medical reports and receive information to help meet patients needs 30 CHAPTER 12