1. 14
Chapter
Using Technology to Manage Information

2. Learning Objectives
Distinguish between data, information, and information systems.
List the components and types of information systems.
Discuss computer hardware and software.
Describe computer networks.
Discuss the security and ethical issues affecting information systems.
Explain disaster recovery and backup.
Review information systems trends. 1 5 2 6 3 7 4

3. 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?
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: Continuing with the example from above, consider what process you used in order to transform your data into useful information.
Lecture Enhancer: What recent changes in the business environment might account for this change in a CIO’s role?

4. Components of Information Systems
Computer Hardware
Computer Software
Telecommunications and Computer Networks
Data Resource Management
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, telecommunications and computer networks and data resource management. 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 so many different types of data surprise you? Why or why not?

5. 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)
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.
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.

6. 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 varying types of computers.

7. Types of Computers Desktop (personal) computers Server Mainframes
Supercomputers
Notebook computers
Handheld devices– PDAs and 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 PC.
Lecture Enhancer: Survey students to see how many have smart phones; ask if any use the phone more for Internet access than to talk to someo.

8. Computer Software
Programs, routines, and computer languages that control a computer
Operating System
Windows Operating System
Mac Operating System
Application Software
Microsoft PowerPoint
Quicken
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.

9. Computer Networks The Internet Local Area Networks (LAN)
Wide Area Networks (WAN)
Wireless Local Networks (Wi-Fi)
Intranets
Virtual Private Networks (VPN)
Voice over Internet Protocol (VoIP)
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 a situation in which a VPN would be particularly useful for two firms.

10. Security Issues E-Crime Computer Viruses Worms Trojan Horses Spyware
E-crime and malware are major security threats. E-crime may or may not be malicious. Some of the stunts online are simply to see if a user can hack a system. Common e-crimes 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.
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: 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: Why might an employee wish to produce inaccurate or misleading company information?
Lecture Enhancer: Have you ever been the victim of equipment theft? What steps did you take to protect the information stored on the equipment, either before or after the theft?
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.

11. Ethical Issues 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?

12. Disaster Recovery and Backup
Natural Disasters
Power Failures
Equipment Malfunctions
Software Glitches
Human Error
Terrorist Attacks
The most basic precaution– backup.
90% of firms that sustained a loss of critical data went out of business within two years.
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: Does this statistic surprise you? Discuss what types of vital information might cause a business to go bankrupt if it were lost.
Lecture Enhancer: Discuss the possible consequences of skipping any of the five tasks related to off-site data storage.

13. Information Systems Trends
The Distributed Workforce
Employees who work in virtual offices
Application Service Providers
A firm that provides computers and application support
On Demand, Cloud, and Grid Computing
Renting software time
Virtual offices include working from home. Application service providers offer cost savings and can simplify software management for organizations. On-demand computing (utility computing) is the rental of software time from application service providers. Cloud computing uses servers to store software applications to be accessed via the web, PC, or smart phone. Grid computing creates a virtual mainframe for businesses to rent and use.
Lecture Enhancer: Discuss the advantages and disadvantages of virtual offices.
Lecture Enhancer: Can you think of an example of an ASP?