1. Section 2 Section 2 Information and Information Technology

2. What is information?  Information is facts or data obtained from one source and processed into a form that will improve knowledge and assist in decision making and planning

3. What is the difference between data and information?  Data is a collection of facts or quantities which have been assembled in some formal manner  Information is data that has been processed into a from that will assist in decision-making and planning

4. The information age  Since the 1960s and the invention of the silicon chip society has moved ever more rapidly towards the Information Age. Technology enables us to process, store and retrieve vast quantities of information, which has revolutionised the life and work of human beings.

5. Sources of Information  Primary Sources  Secondary Sources  Internal Sources  External Sources

6. Primary Sources  First hand data collected and processed for a particular purpose – it is first hand information, mainly collected through observation, interview, questionnaire etc

7. Secondary Sources  Has been previously gathered for one purpose but is being re-used for another purpose – it is second hand information – mainly collected from reference books, business statistics, government statistics, competitors.

8. Information Technology - 22/09/10  IT facilitates data collection, storage, retrieval, processing and output with speed and accuracy – enabling businesses to compete in an ever changing environment.

9. Examples of IT  Mainframe Computers – used by large organisations to carry out “large” tasks eg NASA has a mainframe computer which controls the US space programme.  Very expensive and very powerful.

10. Mini Computers  Smaller and less powerful than the mainframe computers - now really known as PCs – Personal Computers – used nowadays in homes and offices across the country.  Laptops – are much more common nowadays and Netbooks

11. New IT  i-Pads  Mobile Phones – new generation  Memory Sticks

12. Software  E-Mail  Databases  Internet  Spreadsheets  Word Processing  Desk Top Publishing  Imaging Software  Multi-media Software  Video Conferencing  Intranet  LAN  WAN

13. Other examples of IT  Facsimile Transmission (Fax)  TELEX  EPOS

14. Costs and Benefits of IT  Businesses need to decide what it wants from information technology.  Capital investment may be high – the initial costs of buying the equipment eg hardware and software. There may also be installation costs – eg cables for power sockets, data points etc  These are all money costs – but costs are not necessarily money costs as we shall see.

15. Costs of Using IT  The price of the hardware and software etc  The cost of installation  The cost of workstations  The cost of staff training  Loss of efficiency as staff become familiar with new technology  Errors may increase  The need to update often to keep up with changes in technology  The possibility of loss of corruption of data  The possibility of corporate espionage eg hacking into systems  Health and safety implications – the laws on usage of VDUs etc

16. Benefits of IT  The speed of information handling  Flexibility of integrated systems eg a combined fax, photocopier, email, scanner in one machine  Increases in labour productivity  Increases in production and administrative efficiency  Decreases in customer complaints  Enhances reputation with investors, customers and competitors

17. Benefits cont …  Reduction in staffing costs – capital intensive rather than labour intensive  Facilitates homeworking, telesales centres