1. Using Technology to Manage Information www.wileybusinessupdates.com
Copyright © 2013 Pearson Education, Inc. Publishing as Prentice Hall
Using Technology to Manage Information
Chapter 14
Using Technology to Manage Information
Chapter 14
Copyright © 2017 John Wiley & Sons, Inc.

2. Learning Objectives 5
Describe computer networks, cloud computing, and the future of the Internet.
Outline the security, ethical, and privacy issues affecting information systems.
Explain disaster recovery and backup systems
Review information systems trends. 1
Outline the ways technology has forever changed business.
Distinguish between data and information, and discuss information systems and the role of big data.
List the components and types of information systems.
Discuss computer hardware and software. 2 6 3
Learning Objectives for chapter 14 include:
1. Outline the ways technology has forever changed business.
2. Distinguish between data and information, and discuss information systems and the role of big data.
3. List components and types of information systems.
4. Discuss computer hardware and software.
5. Describe computer networks, cloud computing, and the future of the Internet.
6. Outline the security, ethical, and privacy issues affecting information systems.
7. Explain disaster recovery and backup systems.
8. Discuss information technology trends. 7 4 8
Copyright © 2017 John Wiley & Sons, Inc.

3. Technology and Changed Business
Disruptive innovations: Less expensive and simpler versions of existing products and services that target entirely new customers, many times replacing industry leaders
Copyright 2017 John Wiley & Sons, Inc.

4. Data, Information, and Information Systems
Data – raw facts and figures
Information – knowledge gained from processing data
Information system - organized method for collecting, storing, and communicating information on operations
Chief information officer - executive responsible for directing information systems and operations
There is a distinct difference between data and information. It is important for firms to understand the competitive possibilities of a good information system. Information technology is managed by the chief information officer.
Technology has advanced so quickly that all businesses, regardless of size or location, now have access to data and information that can make them competitive in a global arena. The CIO traditionally reports directly to the CEO.
Lecture Enhancer: Think of a recent situation in which you needed to gather data on a subject. What method(s) did you use to do so?
An effective information system can help answer questions for business:
Can we communicate more effectively and efficiently?
How will rising energy prices affect product and distribution costs?
How well is our product selling in Atlanta?
Have sales among consumers age 25 to 45 increased or decreased?
Lecture Enhancer: What processes have students used to transform their data into useful information?
Lecture Enhancer: What recent changes in the business environment might account for the changing role of a CIO?
Copyright 2017 John Wiley & Sons, Inc.

5. Big Data
Big data: large or complex structured or unstructured sets of information that traditional processing applications are unable to analyze.
Business analytics: standard tools and procedures designed to search and analyze the amount of complex data a business gathers.
Data mining: refers to using computer-based technology to evaluate information in a database to identify useful trends, which often suggests predictive models of real-world business activities.
Copyright 2017 John Wiley & Sons, Inc.

6. Components and Types of Information Systems
Computer-based information systems consist of four components:
Computer Hardware
Computer Software
A network
A database
Database: a centralized, integrated collection of data resources.
Information systems that rely on computer and related technologies to store information electronically in an organized, accessible manner. In the past, an information system may have included 3-by-5 inch index cards to organize customer addresses. Computer-based information systems consist of four components and technologies: computer hardware, computer software, a network and a database. Databases are a centralized collection of data, at the heart of any information system. Databases are electronic filing systems, and they are specific to a business’s operations.
Lecture Enhancer: Can you think of an example of an information system that is not computer-based?
Lecture Enhancer: Does the availability of Census data surprise you? Why or why not?
Copyright 2017 John Wiley & Sons, Inc.

7. Types of Information Systems
Operational Support Systems
Transaction Processing System
Process Control System
Management Support Systems
Management Information System (MIS)
Decision Support System (DSS)
Executive Support System (ESS)
Expert System
Information systems fall into two broad categories: operational support systems and management support systems. Operational support systems are designed to produce a variety of information on an organization’s activities for both internal and external users. Transaction processing systems record and process data. Process control systems monitor and control physical processes. Management support systems aid in making effective decisions. Management information systems produce reports for managers. A decision support system provides support to businesspeople during the decision-making process. An executive support system lets senior executives access the firm’s databases and combines relevant data and details to support decisions and operations. An expert system is a computer program that imitates human thinking through complicated sets of if-then rules.
Lecture Enhancer: Identify an example of a company in which the operational support system is the most vital information system.
Lecture Enhancer: Share an example of a company in which the management support system is the most vital information system.
Copyright 2017 John Wiley & Sons, Inc.

8. Types of Information Systems
The complex process of airline maintenance is critical to passenger safety. To track parts, schedule inspections, and manage inventory levels, many airlines, including American, use an operational support system.
Copyright 2017 John Wiley & Sons, Inc.

9. Computer Hardware The tangible elements of a computer system
The components that store and process data, perform calculations
Input devices like the keyboard and mouse allow users to enter data and commands.
Storage and processing components consist of the hard drive and other storage components like flash drives.
Hardware is the tangible element of your computer system–the hard drive, keyboard, mouse, and storage components. Unlike the desktop computers that sit on your desk at home or school, there are various types of computers.
Lecture Enhancer: The open source movement has accelerated innovation when it comes to hardware because developers and startups do not need the approval of the creator.
Class Activity: The costs associated with creating new hardware continues to fall – due partly to 3D printing, which provides a prototype.
Copyright 2017 John Wiley & Sons, Inc.

10. Types of Computers Desktops (personal) computers Server Mainframes
Supercomputers
Notebook computers
Tablets and e-Readers
Smart Phones
Desktop computers are everywhere– in homes, schools, government agencies, and businesses. Most desktop computers are connected to networks that are managed by servers. Servers are the heart of computer networks. Mainframes and supercomputers are large computer systems with powerful processing and storage capacities. The number of notebook computers (laptops) has increased as the prices have decreased. There are even smaller notebooks available now with less power called netbooks. Hand-held devices are even smaller than netbooks. Hand-held devices have become more popular with the decreasing cost of processing power. Many hand-helds have evolved into smart phones– combination cell phone and personal assistant device.
Lecture Enhancer: What specific details must a company take into consideration when deciding on hardware purchases?
Lecture Enhancer: What are some drawbacks to using mainframe computer systems?
Lecture Enhancer: Consider and discuss the advantages and disadvantages of each type of computing device.
Lecture Enhancer: Survey students to see how many have smart phones; ask whether they use the phone more for Internet access than phone calls.
Class Activity : Discuss the impact of mobile phones overtaking PCs as the most common Web access device worldwide.
Copyright 2017 John Wiley & Sons, Inc.

11. Computer Software Application Software
Programs, routines, and computer languages that control a computer
Operating System
Windows Operating System
Mac Operating System
Application Software
Microsoft PowerPoint
Quicken
App: a software program designed to run on a smart phone or a tablet
Computer software includes all programs, routines, and computer languages that control a computer and tell it how to operate. The software that tells a computer how to operate is an operating system. Most users are familiar with application software like Microsoft Word, PowerPoint, and Quicken. The future of application software is uncertain with more use of the web and web applications.
Lecture Enhancer: Have students discuss what life might have been like before there were programs that controlled a computer.
Class Activity : Have students conduct further research on those companies who provide enterprise resource planning software.
Copyright 2017 John Wiley & Sons, Inc.

12. Computer Software
Because of their ever-increasing capabilities, smart phones have rapidly replaced cell phones on a worldwide basis.
Copyright 2017 John Wiley & Sons, Inc.

13. Types of Computer Applications Software
Table 14.1 lists various types of computer applications software, which includes:
Word processing
Spreadsheets
Presentation software
Desktop publishing
Financial software
Database programs
Personal Information managers
Enterprise resource planning
Lecture Enhancer: Desktop publishing began in 1983 by a newspaper worker in Philadelphia with a program he created called Type Processor One, which ran on a PC.
Class Activity : Have students list those which they have utilized.
Copyright 2017 John Wiley & Sons, Inc.

14. Computer Networks Local Area Networks (LAN) Wide Area Networks (WAN)
Wireless Local Networks (Wi-Fi)
The Internet
Intranets
Virtual Networks
Virtual Private Networks (VPN)
Enterprise computing
Cloud computing
Local area networks and wide area networks allow businesses to communicate, transmit and print documents, and share data. One of the largest networks is the Internet. Intranets, Virtual Private Networks (VPN), and Voice Over Internet Protocol (VOIP) are all byproducts of the Internet (network).
Most organizations connect their offices and buildings through a local area network while wide area networks tie larger geographical regions together. Wireless networks allow devices to be connected without the hassle of cables. The current standard is Wi-Fi. Many people access Wi-Fi connections at place like Panera Bread. They are becoming more popular as a free service in public places.
Intranets are private company networks that are patterned after the Internet. It is an internal Internet and can be used to share information within the company. Virtual Private Networks are secure points on the Internet that help organizations with increased security. VoIP is an alternative to traditional telephone service. VoIP is a telephone service that uses the Internet to relay phone calls. The phone line is connected to the computer instead of a phone jack.
Lecture Enhancer: Share examples of current popular VoIP providers.
Lecture Enhancer: What are some drawbacks to a wireless local network?
Lecture Enhancer: What are some drawbacks to accessing the Internet via a WiFi hotspot?
Lecture Enhancer: Describe the types of companies who use their free WiFif service to attract customers.
Copyright 2017 John Wiley & Sons, Inc.

15. Computer Networks
Wi-Fi connections are often called hot spots—locations with a wireless router and a highspeed Internet modem. There are hundreds of thousands of hot spots worldwide today found in a variety of places, including airports, libraries, and coffee shops.
Copyright 2017 John Wiley & Sons, Inc.

16. Security Issues Cybercrime Phishing Attacks Cyberterrorism
Computer Viruses
Trojan Horses
Spyware
Cybercrime and malware are major security threats. Cybercrime may or may not be malicious. Some of the stunts online are simply to see if a user can hack a system. Common cybercrimes include changing data to create misleading information and modifying computer programs to create false or illegal transactions or to access computer systems for their own benefit or knowledge. Individuals, businesses, and organizations are vulnerable to computer crime. Another threat for organizations is the potential theft of computer hardware.
Phishing attack uses deception to acquire sensitive personal information by impersonating an official-looking or instant message.
Cyberterrorism can involve deliberate threats to information systems and can be associated with terrorist activities. It is usually accompanied by a large-scale disruption to a computer network.
Malware are malicious software programs designed to infect computer systems. Viruses are programs that secretly attach themselves to other programs and change or destroy them. A worm is a small piece of software that exploits a security hole and replicates itself. A trojan horse is a program that claims to do one thing but does something different. It might claim to be a game and then erases your hard drive. Spyware is software that secretly gathers user information for advertising purposes. Once spyware is installed, it monitors the user’s activity.
Class Activity: Ask students if they have ever received fraudulent s asking for their bank account or Social Security number, often called "phishing.“
Lecture Enhancer: Why might an employee wish to produce inaccurate or misleading company information?
Lecture Enhancer: Discuss a recent film or television show that featured an act of e-crime. What were the effects of the crime for the firms or individuals involved?
Lecture Enhancer: All smartphones sold in certain states will include a so-called kill switch, which lets an owner remotely deactivate a phone after it has been stolen.
Lecture Enhancer: Discuss the possible effects (specific examples) each of the above might have on a PC.
Lecture Enhancer: Have students discuss additional antivirus software programs with which they are familiar.
Copyright 2017 John Wiley & Sons, Inc.

17. Information Systems and Ethics
Use of information systems by employees and vendors
Personal use
Privacy
Organizational use of information
Employment records
Employee monitoring
Customer data
Ethical issues in information technology raise a number of issues and concerns. Many organizations have specific ethical standards and policies regarding the use of information systems by employees and vendors. There are also policies to protect security and privacy confidentiality. Monitoring employees and access to employment records are also ethical issues affecting information systems.
Lecture Enhancer: Have you ever worked for a company that had policies regarding the use of its information system? If so, how did the policy affect your use of the system and its components?
Class Activity : Facebook found itself in hot water over a controversial, non-consensual use of personal information to conduct an ongoing psychological experiment.
Copyright 2017 John Wiley & Sons, Inc.

18. Disaster Recovery and Backup
Natural Disasters
Power Failures
Equipment Malfunctions
Software Glitches
Human Error
Terrorist Attacks
The most basic precaution– backup
Disaster can cause organizations billions of dollars. Many companies run their entire business using technology. Disaster recovery plans are imperative– they outline how to prevent system failures and continue operations if computer systems fail. Many organizations conduct off-site data storage.
Lecture Enhancer: Most companies have a disaster recovery program, or DRP to resume operations as quickly as possible.
Lecture Enhancer: Discuss the possible consequences of skipping any of the five tasks related to off-site data storage.
Class Activity : Discuss what types of vital information might cause a business to go bankrupt if it were lost.
Copyright 2017 John Wiley & Sons, Inc.

19. Information Technology Trends
Intelligent automation: powered by artificial intelligence (AI)
Digital workforce: a company’s ability to invest in and keep pace with constant changes in the digital era
Platform economy: technology-enabled, platform-driven ecosystems
Predictable disruption: New industries and businesses will be redefined and reinvented with powerful and predictable platform-based ecosystems
Digital trust: the risk issues that surface with new technologies
Intelligent automation: powered by artificial intelligence (AI)
Digital workforce: a company’s ability to invest in and keep pace with constant changes in the digital era
Platform economy: technology-enabled, platform-driven ecosystems
Predictable disruption: New industries and businesses will be redefined and reinvented with powerful and predictable platform-based ecosystems
Digital trust: the risk issues that surface with new technologies
Copyright 2017 John Wiley & Sons, Inc.

20. The Internet of Things
The Internet of Everything or the Internet of Things (IoT) refers to a move beyond stand- alone devices and greater connectivity between items.
It consists of an entire Internet-connected ecosystem of everyday objects with network connectivity, including TVs, cars, household appliances, and wearable tech devices.
Copyright 2017 John Wiley & Sons, Inc.