Using Technology to Manage

Information

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The Future of BusinessThe Essentials 4th EditionGitman & McDaniel

Prepared byDeborah Baker

Chapter 13Copyright ©2009 by South-Western, a division of Cengage Learning. All rights reserved

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Learning Goals

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1 How has information technology transformed business and managerial decision making?

2 Why are computer networks an important part of today’s information technology systems?

3 What types of systems make up a typical company’s management information system?

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Learning Goals (continued)

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4 How can technology management and planning help companies optimize their information technology systems?

5 What are the best ways to protect computers and the information they contain?

6 What are the leading trends in information technology?

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Information Technology

information technology (IT)

The equipment and techniques used to manage and process information.

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How has information technology transformed business and managerial decision making?

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Information Technology

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Business Computing Equipment

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Desktop personalcomputers

Desktop personalcomputers

Laptopcomputers

Laptopcomputers

MinicomputersMinicomputers

Mainframe computers

Mainframe computers

SupercomputersSupercomputers

Exhibit 13.1

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Business and Personal Software Applications

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Word processing software Spreadsheet software Database management programs Graphic and presentation programs Desktop publishing software Communications programs Integrated software suites Groupware Financial software

Exhibit 13.2

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The Role of Supercomputers

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National security research

Scientific research

Demographic studies

Weather and environmental studies

Business applications

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Information Technology

chief information officer (CIO)An executive with responsibility for managing all information resources in an organization.

knowledge workerA worker who develops or uses knowledge, contributing to and benefiting from information used in performing, planning, acquiring, searching, analyzing, organizing, storing, programming, producing, distributing, marketing, or selling functions.

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Information Technology

management information systems (MIS)The methods and equipment that provide information about all aspects of a firm’s operations.

databaseAn electronic filing system that collects and organizes data and information.

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Management Information Systems

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Provide information about a firm’s operations

Provide managers with information needed to make decisions

Help managers categorize and identify ideas that result in operational and cost benefits

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CONCEPT check

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What are management information systems, and what challenges face the CIO in developing the company’s MIS?

Distinguish between data and information. How are they related? Why is data considered a valuable asset for a firm?

How does systems integration benefit a company?

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Why are computer networks an important part of today’s information technology systems?

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Computer Networks

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Computer Networks

computer network

A group of two or more computer systems linked together by communications channels to share data and information.

A network includes clients and servers.

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Intranets

intranet

An internal corporate wide area network that uses Internet technology to connect computers and link employees in many locations and with different types of computers.

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Enterprise Portals

enterprise portal

A customizable internal Web site that provides proprietary corporate information to a defined user group, such as employees, supply chain partners, or customers.

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Application Service Providers

application service provider (ASP)

A service company that buys and maintains software on its servers and distributes it through high-speed networks to subscribers, for a set period and price.

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Applications for personal useApplications for personal use

Collaborative applicationsCollaborative applications

Enterprise applicationsEnterprise applications

Categoriesof

Applications

Categoriesof

Applications

Application Service Providers

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Managed Service Providers

managed service provider (MSP)

Next generation of ASPs, offering customization and expanded capabilities such as business processes and complete management of the network servers.

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CONCEPT check

What is a computer network? What benefits do companies gain by using networks?

How do a LAN and a WAN differ? Why would a company use a wireless network?

What advantages do VPNs offer a company? ASPs and MSPs?

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What types of systems make up a typical company’s management information system?

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Management Information Systems

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Management Information System Functions

Operational decisionsOperational decisions

Strategic decisionsStrategic decisions

Tactical decisionsTactical decisions

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Transaction-Processing Systems

transaction-processing system (TPS)

An information system that handles the daily business operations of a firm. The system receives and organizes raw data from internal and external sources for storage in a database using either batch or online processing.

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Expert System Uses artificial intelligence to get advicesimilar to solutions from consultants

ExecutiveInformation System

Provides specific informationfor strategic decisions

DecisionSupport System

Helps make decisions using computer models that ask “what if”

ManagementSupport System

Uses the internal master database to perform higher-level analyses

for decision making

TransactionProcessing System

Handles the daily business operations of a firm

Office Automation System

Uses information technology to improvecommunications throughout the office

Management Information Systems

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Office Automation Systems

Word processing E-mail Departmental scheduling Cell phones PDAs Wireless e-mail devices Pagers Voice-mail Facsimile Electronic bulletin boards Computer conferencing

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CONCEPT check

What are the main types of management information systems, and what does each do?

Differentiate between the types of management support systems, and give examples of how companies use each.

How can office automation systems help employees work more efficiently?

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How can technology management and planning help companies optimize their information technology systems?

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Technology Management and Planning

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Spending too much

Not getting adequate performance and payoff from IT investments

Investments do not relate to business strategy

Buying the latest technology for technology’s sake

Poor communications between IT specialists and IT users

Typical complaints about IT investments

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Technology Management and Planning

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knowledge management (KM)

The process of researching, gathering, organizing, and sharing an organization’s collective knowledge to improve productivity, foster innovation, and gain competitive advantage.

Managing Knowledge Resources

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Technology Planning

1. Perform general needs assessment

2. Rank projects

3. Rank / choose hardware and software

4. Evaluate benefits of the technology

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Questions for IT Project Planning

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What are the company’s overall objectives?

What problems does the company want to solve?

How can technology help meet those goals and solve the problems?

What are the company’s IT priorities both short and long term?

What type of technology infrastructure best serves the company’s needs?

Which technologies meet the company’s requirements?

Are additional hardware and software required? If so, will they integrate with the company’s existing systems?

Does the system design and implementation include the people and process changes, in addition to the technological ones?

Do you have the in-house capabilities to develop and implement the proposed applications, or should you bring in an outside specialist?

Exhibit 13.6

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CONCEPT check

What are some ways a company can manage its technology assets to its advantage?

Differentiate between information management and knowledge management. What steps can companies take to manage knowledge?

List the key questions managers need to ask when planning technology purchases.

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335

What are the best ways to protect computers and the information they contain?

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Protecting Computers and Information

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Data Security Issues

Deliberate damage to equipment and information

Deliberate damage to equipment and information

Computer viruses, worms, andTrojan horses

Computer viruses, worms, andTrojan horses

Unauthorized access andSecurity breaches

Unauthorized access andSecurity breaches

SpamSpam

Software and media piracySoftware and media piracy© iStockphoto.com / Angel Herrero de Frutos

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Top Cyber Security Threats of 2008

Exhibit 13.7: Source: The SANS Institute, “Top Ten Cyber Security Menaces for 2008,” SANS.org; and Thomas Claburn, Top 10 Cybersecurity Menaces for 2008 Listed,” InformationWeek.com, January 15, 2008

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Attacks on Web browsers and plug-in components

Botnets

Cyber espionage

Breaches of mobile phones

Insider attacks

Malware

Web application vulnerabilities

Blended attacks

Supply-chain attacks

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Methods Used to Protect Data

Exhibit 13.8: Source: Joris Evers, Adapted from “Computer Crime Costs $67 Billion, FBI Says,” CNet News.com, January 19, 2006,http://news.cnet.com. Copyright © CNET Networks, Inc. All rights reserved. Reproduced by permission.

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Anti-virus software Firewalls Anti-spyware Spam filters VPNs Intrusion prevention or detection system Smart cards Biometrics

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CONCEPT check

Describe the different threats to data security.

How can companies protect information from destruction and unauthorized use?

Why are privacy rights advocates alarmed over the use of techniques such as data warehouses and data mining?

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What are the leading trends in information technology?

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Trends in Information Technology

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Virtualization

Web-based applications

Grid computing

Trends in Information Technology

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CONCEPT check

What is virtualization and how does it benefit companies that use it? Are many companies offering viable virtualization platforms?

How are Web-based applications helping to reframe software and office tools as a service rather than a product?

What advantages does grid computing offer a company? What are some of the downsides to using this method?

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