1. Higher Business Management
Unit 1
Learning Outcome 2
Information &
Information Technology
BM Unit 1 - LO2

2. What is Information? Information Data
Data that has been processed into a form that will assist in decision-making and planning
Data
Collections of facts or quantities which have been assembled in some formal manner
BM Unit 1 - LO2

3. Sources of Information
Primary - gathered first-hand (interview)
Secondary - second-hand (government statistics)
Internal - within the firm (accounts)
External - outwith the firm (competition)
BM Unit 1 - LO2

4. Formats of Information
Written - text (can be difficult to interpret)
Oral - the spoken word (misunderstandings!)
Pictorial - ‘a picture speaks a 1,000 words’
Graphical - pie charts, etc
Numerical - the actual figures
BM Unit 1 - LO2

5. The Value of Information
High quality information must have
Accuracy
Timeliness
Completeness
Appropriateness
Availability
Cost effectiveness
Objectivity
Conciseness.
BM Unit 1 - LO2

6. Examples of Information Technology
Mainframes
Mini-computers
Computer networks
LANs
WANs
Internet
Multi-media
Video-conference
EPOS
BM Unit 1 - LO2

7. Uses of Information Technology in Business
Decision-making
Information gathering
Accounting processes
World-wide communications
Data processing
Database management
Text processing
Presentation of information
Time-management
Production
TQM
J-I-T Stock Control
CAD
CAM - robotics, CNC lathes, cutting, printing, etc
BM Unit 1 - LO2

8. Costs and Benefits of IT
Hardware costs
Installation costs
Training of staff
Need to update
Possible data loss
Industrial espionage
Health and Safety concerns
Benefits
Speed of data handling
Flexibility of systems
Increase in productivity
Competitive advantage
Reduction in staff costs
Location less important
Facilitates home-working
Call centres - customer service and tele-sales
BM Unit 1 - LO2

9. Computer Software for use in Businesses
Word processing
Databases
Spreadsheets
Desktop publishing
Personal productivity
Presentation
Decision-making
BM Unit 1 - LO2

10. How Businesses use IT
You should have a working knowledge of most of the software packages mentioned and be familiar with the jargon and related terms
Prepare a PowerPoint presentation to introduce yourself to the rest of the class. Include photos and/or clip art
BM Unit 1 - LO2