Using Technology to Manage Information 14 Chapter Using Technology to Manage Information

Learning Objectives LO 14.1 Distinguish between data and information, and discuss the role of information systems in business. LO 14.2 Describe the components and types of information systems. LO 14.3 Outline how computer hardware and software are used to manage information. LO 14.4 Describe networking and telecommunications technology and the types of computer networks. LO 14.5 Outline the security and ethical issues affecting information systems. LO 14.6 Explain how companies plan for, and recover from, information system disasters. LO 14.7 Review the trends in information systems.

Data, Information, and Information Systems Data: Raw facts and figures that may or may not be meaningful to a business decision Information: Knowledge gained from processing data Information system: An organized method for collecting, storing, and communicating past, present, and projected information on internal operations and external intelligence Chief information officer (CIO): The executive responsible for managing a firm’s information systems and related computer technologies Traditionally reports directly to the chief executive officer (CEO)

Test Your Knowledge How is data different from information? a) Data is current; information is unchanging. b) Information is knowledge; data are the facts that can be converted to a usable form. c) Data is continuously collected but information is only collected sporadically. d) Information is more overwhelming than data.   Answer: b

Components and Types of Information Systems Computer-based information systems: Information systems that use computer and related technologies to store information electronically in an organized, accessible manner Computer hardware Computer software Telecommunications and computer networks Data resource management

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

Test Your Knowledge A(n) ______ is a management support system that imitates human thinking through “if-then” rules. a) decision support system b) management information system c) executive support system d) expert system   Answer: d

Computer Hardware Hardware: All tangible, or physical, elements of a computer system Input devices are the components that store and process data, perform calculations 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 Output devices present results to users Monitors, printers, transmit or display documents

Computer Hardware (cont’d) Types of computers Mainframes Supercomputers Midrange systems High-end network servers Personal computers Desktop, notebook (laptop) computers Tablets Hand-held devices PDAs, smartphones

Computer Software Operating system Application Software Software: All the programs, routines, and computer languages that control a computer and tell it how to operate Operating system Windows operating system Mac operating system Application Software Adobe Acrobat Microsoft PowerPoint Quicken

FIGURE 14.1 A Local Area Network Computer Networks The Internet Local area networks (LAN) Wide area networks (WAN) Wireless local networks (WiFi) Intranets Virtual private networks (VPN) Voice over Internet Protocol (VoIP) FIGURE 14.1 A Local Area Network

Test Your Knowledge A(n) ______ is a secure connections between two points on the Internet, using firewalls and programs that encrypt, or encode, data to make them more secure during transit. a) virtual private network (VPN) b) local area network (LAN) c) voice over Internet Protocol (VoIP) d) intranet   Answer: a

Security Issues Affecting Information Systems E-crime Malware Computer viruses Worms Botnet Trojan horses Spyware

Ethical Issues affecting Information Systems Use of information systems by employees and vendors Personal use Privacy Organizational use of information: Employment records Employee monitoring Customer data

Disaster Recovery and Backup Natural disasters Power failures Equipment malfunctions Software glitches Human error Terrorist attacks The most basic precaution is routine backup of software and data, at the organizational and individual level

Information Systems Trends The distributed workforce Employees who work in virtual offices Application service providers (ASP) An outside supplier that provides both the computers and the application support for managing an information system On-demand computing The use of software time from application providers; firms pay only for their usage of the software, not for purchasing or maintaining the software Cloud computing The use of powerful servers that store applications software and databases that users access by using any Internet-connected device, such as a PC or a smartphone Grid computing A network of smaller computers that run special software

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