16 BUSN Managing Information and Technology: Finding New Ways to Learn and Link ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part ©2011 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 • What are the basic elements and key trends of computer technology? • What is cloud computing and why is it popular? • How does data become information and how decisions support systems provide information for decision making? • How have Internet-based technologies changed businessto-consumer and business-to-business commerce? • What are the problems posed by rapid changes in Internetbased technologies? BUSN ©2011 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 Information Technology: Explosive Change Computers and communications hardware and software have changed dramatically over the past few decades •Flash memory devices are as small as a stamp and can store sixteen gigabytes of data More than three thousand times data that could be stored in a 1950 disk array •Today’s basic calculator or cell phone has more processing power than early “mega computers” BUSN ©2011 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 Hardware and Software Hardware – the physical components used to collect, store, organize, and process data Software – refers to computer programs that provide instruction for a computer to perform a task System Software – performs the critical functions necessary to operate the computer at the most basic level BUSN ©2011 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 Application Software Horizontal Market Software – applies broadly across markets or industries BUSN Vertical Market Software – specialized applications for a specific industry ©2011 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 Networks Networks link computer resources using wired or wireless connections  The Internet – computer network; network of networks  World Wide Web – interlinked hypertext documents  Intranets  Extranets BUSN ©2011 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 The Internet and the World Wide Web • Greatest networking stories of the last two decades • A network of networks • Availability of broadband has fueled the popularity of the Web • In 2008, 55% of all U.S households had a broadband connection – up 47% in 2007 • Internet (speed) is capable of transmitting five feature-length DVD movies from one location BUSN ©2011 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 Intranets and Extranets Intranet is a network that has the same look and feel as the Internet but is limited to a single firm’s internal Web servers BUSN Extranets are open intranets that provide limited access to certain group of stakeholders, such as key customers and suppliers ©2011 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 The Role of the IT Department The role of the department differs for every company • Strategic - making key decisions about technologies • Operational – departments make decisions that functional groups support BUSN ©2011 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 The Smart Electricity Grid: IT Goes Green • Technology requires a dependable power supply • The U.S power grid has been called the world’s most complex interconnected machine • New technology will evolve into a smart electricity grid High-tech Sensors and meters for real-time information • Smart grid technology will facilitate a generation of distributed electricity • It will help consumers and businesses monitor their electricity use BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 10 16 Managing Information and Technology: Finding New Ways to Learn and Link Using Information Technology to Improve Decision Making Decision support systems provide access to data and the processing power to convert the data into information Business Intelligence System Data Warehousing Data Mining: • Use sophisticated statistical methods to analyze data • Discover relationships that had previously been hidden Data Mining BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 14 16 Managing Information and Technology: Finding New Ways to Learn and Link Expert Systems  Guide decision makers  Integrate knowledge of experts  Diverse types of systems available  Individual systems deal with narrow set of issues  Can be time-consuming to program BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 15 16 Managing Information and Technology: Finding New Ways to Learn and Link Information Technology and the World of E-Commerce Business-to-Consumer (B2C) – businesses and final consumers interact E-Commerce – using the Internet to facilitate the exchange of goods and services Business-to-Business (B2B) – businesses buy from and sell to other businesses BUSN ©2011 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 16 BUSN Managing Information and Technology: Finding New Ways to Learn and Link Key Differences Between B2C and B2B E-Commerce ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 17 16 Managing Information and Technology: Finding New Ways to Learn and Link Using Information Technology in the B2C Market • Web 2.0 • Advertising on the Internet • Viral Marketing • Handling Payments Electronically • Cybermediary • Electronic Bill Presentation and Payment BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 18 16 Managing Information and Technology: Finding New Ways to Learn and Link How Two Fans Changed the Face of Coke • Many organizations participate in social networking to forge relationships with customers • But, Coca-Cola fans created a successful page that ramped up 3.4 million fans Second most popular page on Facebook • Facebook policy, the product producer has the right to its page • Coca-Cola decided to treat the two creators like partners and work together on the page BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 19 16 Managing Information and Technology: Finding New Ways to Learn and Link Viral Marketing: Finding the Perfect Blend • Blendtec is a powerful niche market blender with limited funds for national marketing • The new marketing director decided to go viral with funny videos starting the CEO • The videos were highlighted on the website and eventually uploaded to YouTube • The videos cost about $50 • Sales soared 43% • Companies began begging Blendtec to blend their products and was able to charge them $5,000 BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 20 16 Managing Information and Technology: Finding New Ways to Learn and Link Using Information Technology in the B2B Market  Reduce time, effort and cost of doing business for buyers and sellers  Reduced technology costs  Large pool of buyers and sellers for negotiations  Value-added services Radio Frequency Identification (RFID) has become a useful technology for supply chain management The microchips store and transmit information BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 21 16 Managing Information and Technology: Finding New Ways to Learn and Link Challenges and Concerns Arising from New Technologies • Spyware – software that installs itself on computers without permission to track behavior • Computer Viruses – programs that install on computers to rapidly spread to other computers • Spam- unsolicited commercial emails • Phishing – an illegitimate business attempting to get you to disclose personal information • Pharming – redirecting Internet traffic using fake websites to trick people into disclosing personal information BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 22 16 Managing Information and Technology: Finding New Ways to Learn and Link Information Overload: Too Much of a Good Thing? Email, cell phones, Twitter, Blogs, Websites……… • Set aside time to absorb information • Prioritize, avoid distractions • Organize content into folders • Resist the urge to subscribe to every information source Overload can temporarily reduce worker’s decision-making IQ ten points! BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 23 16 Managing Information and Technology: Finding New Ways to Learn and Link Hackers: Break-ins in Cyberspace • Skilled computer users who can access unauthorized information • Some hackers (black hat hackers) intend harm • Cyberterrorists are motivated by political or ideological beliefs • Cyberterrorists launch attacks on key industries Firewalls use hardware or software (sometimes both) to create a barrier that prevents unwanted messages or instructions from entering a computer system BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 24 16 Managing Information and Technology: Finding New Ways to Learn and Link Strong Passwords • Relatively long (at least seven characters) • Include numbers and special characters • Consists of lower and uppercase characters • Does not include the user’s real name or a common word • Differs significantly from other passwords BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 25 16 Managing Information and Technology: Finding New Ways to Learn and Link Ethical and Legal Issues Personal Privacy • Does the fact that companies know so much about you make you nervous? • Does it bother you that your email messages are not confidential? • Legal opinions about email are still evolving Intellectual Property • Product produced from intellectual efforts: things protected by copyright law BUSN • Music and software piracy are growing issues 26 ©2011 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 Turning the Tables • iParadigms’ Turnitin allows schools to upload student papers to compare for plagiarism • Students in Virginia objected the practice arguing that their intellectual property was being used without permission • In March 2008, the courts filed in favor of iParadigm BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 27 16 Looking Back • What are the basic elements and key trends of computer technology? • What is cloud computing and why is it popular? • How does data become information and how decisions support systems provide information for decision making? • How have Internet-based technologies changed businessto-consumer and business-to-business commerce? • What are the problems posed by rapid changes in Internetbased technologies? BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part 28 ... other businesses BUSN ©2011 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 16 BUSN Managing Information... array •Today’s basic calculator or cell phone has more processing power than early “mega computers” BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted... Software – performs the critical functions necessary to operate the computer at the most basic level BUSN ©2011 Cengage Learning All Rights Reserved May not be scanned, copied or duplicated, or posted