2. Using Technology to Manage Information14
Chapter
Using Technology to Manage Information

3. 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.

4. 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)

5. 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

6. 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

7. 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

8. 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

9. 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

10. 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

11. 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

12. 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

13. 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

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

15. 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

16. 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

17. 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

18. Copyright
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