2. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Managing Information and Technology: Finding New Ways to Learn and Link Explain the basic elements of computer technology—including hardware, software, and networks—and describe key trends in each area Discuss the reasons for the increasing popularity of cloud computing Describe how data becomes information and how decision support systems can provide high- quality information that helps managers make better decisions 2 16-1 16-2 16-3

3. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. 16 Managing Information and Technology: Finding New Ways to Learn and Link Explain how Internet-based technologies have changed business-to-consumer and business-to- business commerce Describe the problems posed by the rapid changes in Internet-based technologies, and explain ways to address these problems 3 16-4 16-5

4. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hardware and Software 4 Physical components used to collect, input, store, and process data and to display and distribute information Hardware Programs that provide instructions to a computer so that it can perform a desired task System software: Performs the critical functions necessary to operate a computer at the most basic level Applications software: Helps users perform a desired task Horizontal applications software Vertical applications software Software

5. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Computer Based Technologies: Smaller, Simpler, Swifter Network of networks, consisting of many smaller networks operating under a common set of protocols to communicate with each other Broadband Internet connection: Capacity to transmit large amounts of data very quickly Internet New generation of Internet technology based on fiber-optic cable Noncommercial network - Uses high-speed connectivity to improve education, research, and collaboration Internet2 Private network that makes documents accessible to employees of a single firm Intranet Limited access to certain areas of the intranet to external clients Extranet 5

6. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Role of the IT Department ￭ Differs from one company to another  Implements key decisions about the technologies the firm will use  Maintains an organization’s information resources and provides technical support to employees 6

7. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cloud computing: Sky’s the limit ￭ Supplements or replaces internally owned computer resources using:  Internet-based storage capacity  Processing power  Computer applications ￭ Accesses innumerable computing resources with little investment 7

8. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Cloud computing: Sky’s the limit ￭ Eliminates the problem of excess capacity ￭ Collaboration among employees and business partners ￭ Parallel computing - Helps in data processing 8

9. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Web-link: Cisco ￭ The link details on Cisco’s Cloud and Systems Management Technology http://www.cisco.com/en/US/products/sw /netmgtsw/technology.html 9

10. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Data to Information - Vital transformation Raw facts and figures a firm collects which becomes: Information: When processed, organized, and presented in a way that makes them useful to a decision maker Data Files of related data organized according to a logical system and stored in a computer- accessible storage media Database 10

11. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Characteristics of Good Information AccurateRelevant TimelyUnderstandable Secure 11

12. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information Technology to Improve Decision Making 12 Give managers access to large amounts of data and the processing power to convert it into high-quality information quickly and efficiently Decision support systems Help businesses discover subtle and complex relationships hidden in their data Business intelligence systems

13. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information Technology to Improve Decision Making Large, organization-wide database that provides a centralized location for storing data from both the organization’s own databases and external sources Data warehouse Uses powerful statistical and mathematical techniques to analyze vast amounts of data to identify useful information that had been hidden Data mining Guides the manager through the decision-making process Expert system 13

14. Reality TV Video Slide 14 ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. www.cengage.com/introbusiness/book_content/978128518 7822_kelly/videos/16wemeanbusiness.html

15. © iStockphoto.com / DNY59 ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. ￭ How can information technology benefit the operations of Dr. Lou’s Spinal Fit practice? ￭ Given the current state of Spinal Fit’s information technology usage, would cloud computing be a viable approach for Dr. Lou to pursue? 15

16. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Dynamics of E-commerce ￭ Marketing, buying, selling, and servicing of products over a network or Internet  Business-to-consumer or B2C e-commerce: Businesses and final consumers interact  Business-to-business or B2B e-commerce: Businesses buy from and sell to other businesses 16

17. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Exhibit 16.2 - Key Differences between B2C and B2B E-Commerce 17

18. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Web 2.0 ￭ Interactive and collaborative e-commerce with customers to:  Forge stronger relationships  Create a richer, more interesting, and useful experience  Encourage collaboration ￭ Enterprise 2.0 - Use of Web 2.0 technologies within organizations 18

19. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Advertising on the Internet 19 ￭ B2C companies have large target markets ￭ Use opt-in email as an advertising medium  Opt-in email - Messages that the receiver has explicitly chosen to receive  Less expensive

20. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Viral Marketing ￭ Getting customers to communicate a firm’s message to friends, family, and colleagues ￭ Increases consumer awareness of a product ￭ Use of social networking 20

21. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Handling Payments Electronically ￭ Transactions are made secure by transmit payment information using a secure socket layer or SSL protocol ￭ Cybermediary: Internet-based company that specializes in the secure electronic transfer of funds ￭ Electronic bill presentment and payment: Bills are sent to customers via email 21

22. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information Technology in the B2B Market ￭ B2B transactions result in long-term supply chain relationships ￭ E-marketplaces: Provide a platform for B2B markets to interact  Reduce time, effort, and cost of doing business for both buyers and sellers  Smaller firms can afford to participate as connections between firms are not required 22

23. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Information Technology in the B2B Market  Easy contact and negotiation leading to a best fit  Additional services provided ￭ Radio frequency identification (RFID): Improves efficiency of supply chains  Information can be used to help track goods and other resources as they move through a supply chain 23

24. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Threats in Internet and IT Software that is created and distributed with malicious intent Malware Software that installs itself on a computer without permission and then tracks the computer’s behavior Spyware Install themselves on computers without the users’ knowledge and spread by attaching to other files that are transferred between computers Computer viruses Independent programs that can spread across computer networks without being attached to other files Worms 24

25. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Steps for Protection against IT Threats ￭ Perform regular backups ￭ Install high-quality antivirus software ￭ Update your operating system regularly ￭ Do not open unknown email messages ￭ Do not download files from illegitimate websites 25

26. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Spam, Phishing, and Pharming Unsolicited commercial emails, sent to a lot of people whether they are interested in the product or not Spam Common use of spam and phishers send emails that appear to come from a legitimate business Phishing Uses fake websites to trick people into divulging personal information Pharming 26

27. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Hackers ￭ Skilled computer users who can gain unauthorized access to others computers ￭ Firewalls: Uses hardware or software to create a barrier, preventing unwanted messages from entering a computer system 27

28. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Ethical and Legal Issues ￭ Personal privacy eroded through tracking of customer behavior ￭ Intellectual property: Products that result from creative and intellectual efforts  Piracy of intellectual property - Reproducing and distributing copyrighted work without obtaining permission from the owner 28

29. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Web-link: Target - Identity Protection Guide ￭ The link has guidelines by Target regarding measures to be taken in the instance of identity theft http://www.target.com/redcard/benefits- identity-safeguards 29

30. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Explain the basic elements of computer technology—including hardware, software, and networks—and describe key trends in each area Discuss the reasons for the increasing popularity of cloud computing Describe how data becomes information and how decision support systems can provide high- quality information that helps managers make better decisions 30 16-1 16-2 16-3

31. ©2015 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part. Explain how Internet-based technologies have changed business-to-consumer and business-to- business commerce Describe the problems posed by the rapid changes in Internet-based technologies, and explain ways to address these problems 31 16-4 16-5