© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 1

Information Information Technology and E-Technology and E-

CommerceCommerce

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 2

From Data From Data to Information to Insightto Information to Insight

Competitive AdvantageCompetitive AdvantageCompetitive AdvantageCompetitive Advantage

DataData(Facts & Statistics)(Facts & Statistics)

DataData(Facts & Statistics)(Facts & Statistics)

InsightInsight(Understanding)(Understanding)

InsightInsight(Understanding)(Understanding)

InformationInformation(Useful Knowledge)(Useful Knowledge)

InformationInformation(Useful Knowledge)(Useful Knowledge)

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 3

Data versus InformationData versus Information

Average Monthly Sales

0 5,000 10,000 15,000 20,000 25,000 30,000

ABC

D

Sales

Prod

ucts

Product Jan Feb March AprilA 15,000 9,000 10,000 12,000B 8,000 8,500 9,000 10,000C 26,000 25,000 25,500 26,000D 18,000 16,000 16,500 18,500

Average Monthly Sales

0 5,000 10,000 15,000 20,000 25,000 30,000

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 4

Information FlowInformation Flow

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 5

Using Information SystemsUsing Information Systems

Information

DataMining

DataWarehouse

DataWarehouse

Data Base

Data Base

Information

DataMining

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 6

Chief Information OfficerChief Information Officer

UnderstandInformation Needs

UnderstandInformation Needs

Create Systemsand ProceduresCreate Systemsand Procedures

Deliver High-Quality Information

Deliver High-Quality Information

Cost EffectiveCost EffectiveAccurateAccurate

RelevantRelevant TimelyTimely

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 7

Business Business

InformationInformationResearch Research

and Developmentand DevelopmentResearch Research

and Developmentand Development

Marketing Marketing and Salesand SalesMarketing Marketing and Salesand Sales

PlanningPlanningand Controland Control

PlanningPlanningand Controland Control

CommunicationCommunicationand Collaborationand CollaborationCommunicationCommunication

and Collaborationand Collaboration

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 8

Business and the Business and the InternetInternet

Accelerate CommerceAccelerate CommerceAccelerate CommerceAccelerate Commerce

Erase BordersErase BordersErase BordersErase Borders

BoostBoostCommunicationCommunication

BoostBoostCommunicationCommunication

Control CostsControl CostsControl CostsControl Costs

Simplify ResearchSimplify ResearchSimplify ResearchSimplify Research

Promote Promote CollaborationCollaboration

Promote Promote CollaborationCollaboration

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 9

Accelerating Commerce

Business-to-BusinessBusiness-to-Business

Consumer-to-ConsumerConsumer-to-Consumer

Mobile CommerceMobile Commerce

Business-to-ConsumerBusiness-to-Consumer

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 10

Cutting CostsCutting Costs

Searching forSearching forBest PricesBest Prices

Searching forSearching forBest PricesBest Prices

TelecommutingTelecommutingTelecommutingTelecommuting

ReducingReducingTravel ExpensesTravel Expenses

ReducingReducingTravel ExpensesTravel Expenses

ManagingManagingInventoryInventory

ManagingManagingInventoryInventory

Recruiting andRecruiting andTrainingTraining

Recruiting andRecruiting andTrainingTraining

DistributingDistributingInformationInformation

DistributingDistributingInformationInformation

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 11

Erasing BordersErasing Borders

EmailEmail

Instant MessagingInstant Messaging

Virtual MeetingsVirtual Meetings

Telecommuting Telecommuting

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 12

Enhancing Enhancing Communication Communication

and Collaborationand Collaboration• Email and instant messaging

• Mail server lists and newsgroups

• Intranets and extranets

• Virtual workspaces

• Blogs and wikis

• Internet telephone service

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 13

Simplifying Simplifying ResearchResearch

Search EnginesSearch EnginesSearch EnginesSearch Engines

WebWebDirectoriesDirectories

WebWebDirectoriesDirectories

Meta-SearchMeta-SearchEnginesEngines

Meta-SearchMeta-SearchEnginesEngines

OnlineOnlineDatabasesDatabases

OnlineOnlineDatabasesDatabases

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 14

Types of Online Types of Online SearchingSearching

Keyword SearchesKeyword Searches

Boolean OperatorsBoolean Operators

Natural LanguageNatural Language

Forms-Based SearchesForms-Based Searches

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 15

Effective SearchingEffective Searching

Read InstructionsRead Instructions

Observe DetailsObserve Details

Review OptionsReview Options

Vary Search TermsVary Search Terms

Adjust the ScopeAdjust the Scope

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 16

Really Simple Really Simple SyndicationSyndication

NewzCrawlerNewzCrawlerNewzCrawlerNewzCrawler BloglinesBloglinesBloglinesBloglinesNewsGatorNewsGatorNewsGatorNewsGator FeedDemonFeedDemonFeedDemonFeedDemon PluckPluckPluckPluck

News AggregatorsNews Aggregators(RSS)(RSS)

News AggregatorsNews Aggregators(RSS)(RSS)

MonitorCompetitors

ReachCustomers

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 17

Business Business Information Information

SystemsSystems

OperationsInformationOperationsInformation

ManagementSupport

ManagementSupport

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 18

Operational SystemsOperational Systems

Transaction ProcessingTransaction ProcessingTransaction ProcessingTransaction Processing

Systems ControlSystems ControlSystems ControlSystems Control

Office AutomationOffice AutomationOffice AutomationOffice Automation

Customer RelationsCustomer RelationsCustomer RelationsCustomer Relations

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 19

Management Support SystemsManagement Support Systems

ManagementInformation

DecisionSupport

ExecutiveInformation

Knowledge Management

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 20

Business Business System TechnologySystem Technology

HardwareHardware

SoftwareSoftware

NetworksNetworks

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 21

Computing HardwareComputing Hardware

EquipmentEquipmentEquipmentEquipment

ProcessingProcessingProcessingProcessing

InputInputInputInput

OutputOutputOutputOutput

ComputersComputersComputersComputers

ServersServersServersServers

ClientsClientsClientsClients

MainframesMainframesMainframesMainframes

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 22

Computing SoftwareComputing SoftwareOperating System Computer Applications

Word Processing

Spreadsheets

Desktop Publishing

Database

Apple Macintosh

Linux

Unix

MS Windows

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 23

Networking ComputersNetworking Computers

Central ServersCentral Servers Multiple ServersMultiple Servers Peer-to-PeerPeer-to-Peer

Geographic CoverageGeographic Coverage

Wide AreaNetwork (WAN)

Wide AreaNetwork (WAN)

Municipal AreaNetwork (MAN)

Municipal AreaNetwork (MAN)

Local AreaNetwork (LAN)

Local AreaNetwork (LAN) The InternetThe Internet

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 24

Current Networking Current Networking IssuesIssues

Digital ConvergenceDigital Convergence

Wireless ConnectionsWireless Connections

BandwidthBandwidth

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 25

Types of Wireless Types of Wireless ConnectionsConnections

• Wireless fidelity (Wi-Fi)

• WiMAX

• Global positioning system (GPS)

• Bluetooth

• Short messaging service (SMS)

• Third generation (3G)

• Radio Frequency Identification (RFID)

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 26

Technology Technology Issues for ManagersIssues for Managers

Total Cost ofOwnership

Total Cost ofOwnership

EmployeeTraining

EmployeeTraining

ProductivityMonitoring

ProductivityMonitoring

The HumanTouch

The HumanTouch

Property RightsProperty Rights InformationOverload

InformationOverload

Privacyand Security

Privacyand Security

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 27

Ensuring Ensuring Privacy and SecurityPrivacy and Security

Malicious SoftwareMalicious SoftwareMalicious SoftwareMalicious Software

Security BreachesSecurity BreachesSecurity BreachesSecurity Breaches

Data SecurityData SecurityData SecurityData Security

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 28

Protecting Property Protecting Property RightsRights

Digital ProductsDigital Products

Digital RightsDigital Rights

Management (DRM)Management (DRM)

Intellectual PropertyIntellectual Property

© Prentice Hall, 2007 Excellence in Business, 3e Chapter 4 - 29

Promoting ProductivityPromoting Productivity

Information OverloadInformation OverloadInformation OverloadInformation Overload

Categorize InformationCategorize InformationCategorize InformationCategorize Information

Control SPAMControl SPAMControl SPAMControl SPAM

Visualize DataVisualize DataVisualize DataVisualize Data

Misuse of TechnologyMisuse of TechnologyMisuse of TechnologyMisuse of Technology

Minimize LawsuitsMinimize LawsuitsMinimize LawsuitsMinimize Lawsuits

Monitor AccessMonitor AccessMonitor AccessMonitor Access

Protect SystemsProtect SystemsProtect SystemsProtect Systems

Chapter 4 - 30Excellence in Business, 3e© Prentice Hall, 2007

Total Ownership CostTotal Ownership Cost

Training EmployeesTraining Employees

The Human TouchThe Human Touch

More Technology Issues