C.I.S.: FINDING NEW WAYS TO LEARN AND

LINK BUSN11, CHAPTER 16

Hardware and Software ■  Hardware: The physical components used to collect, input, store, and

process data, and to display and distribute information –  Ex. Barcode Scanners, Hard Drives, Printers, Smartphones

■  Software: Programs that provide instructions to a computer so that it can perform a desired task, there are 2 broad categories:

–  System Software: Performs critical functions necessary to operate the computer at the most basic level

–  Applications Software: Helps a user perform a desired task

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Networks

■  Network: Links computer resources using either a wired or wireless connection

■  Internet: Essentially a network of computer networks all operating under a common set of rules that allow them to communicate with each other

■  Broadband Internet Connection: Internet connection capable of transmitting large amounts of information very quickly

■  Internet2 (I2): A new high-tech noncommercial network that uses high-speed connectivity to improve education, research, and collaboration only available to member organizations

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Intranets and Extranets ■  Intranet: Private network with the look and feel of the Internet, but

which limits access to a single firm’s employees – or a single organization’s members

■  Extranet: Intranet that allows limited access to a select group of stakeholders, such as suppliers or customers

–  Ex. A firm might allow customers to check on the status of their order

The Role of the IT Department

■  The role of the IT department varies greatly from company to company: –  Strategic Role: Making and implementing key decisions about the

technologies the firm will use –  Operational: IT department simply maintains resources and

provides technical support to employees

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Cloud Computing: The Sky’s The Limit

■  Cloud Computing: Using Internet based storage capacity, applications, and processing power to supplement or replace internally owned computer resources

■  If you share photos on Facebook, store music on Apple’s iCloud storage services, or use Dropbox to access and share documents and files, you’re already using cloud computing!

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What Does The Cloud Offer Users? ■  Access a wide variety of computing resources without needing

expensive new hardware, software, and IT personnel

■  Allow lower costs and excess capacity by only paying for the computer resources they actually need or use

■  Encourage collaboration among employees and business partners

■  Take advantage of huge gains in processing speed

Data and Information

■  Data: Raw, unprocessed facts and figures –  Every department of an organization records some kind of data

■  Information: Data that have been processed in a way that make them meaningful to their user

■  Database: File consisting of related data organized according to a logical system and stored on hard drives or some other computer-accessible storage media

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Characteristics of Good Information

■  Accurate: It should be free of errors and biases

■  Relevant: Should focus on issues that are important to decision makers

■  Timely: It should be available in time to make a difference

■  Understandable: It must help the user grasp it’s meaning

■  Secure: Confidential information must be secure from hackers and competitors

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Using Information Technology to Improve Decision Making ■  Decision Support Systems (DSS): System that gives managers access

to large amounts of data and the processing power to convert these data into high-quality information

■  Business Intelligence Systems: Sophisticated form of DSS that helps decision-makers find information that was previously hidden

■  Data Warehouse: Large, organization-wide database that stores data in a centralized location

■  Data Mining: Uses statistical and mathematical techniques to analyze vast amounts of data to identify useful information that had been hidden

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Information Technology and the World of E-Commerce ■  E-Commerce: The marketing, buying, selling, and servicing of products

over a network ■  Business-to-Consumer E-Commerce (B2C): E-Commerce in which

businesses and final consumers interact –  Ex. iTunes

■  Business-to-Business E-Commerce (B2B): Consists of markets where businesses buy from and sell to other businesses

■  Consumer-to-Consumer E-Commerce (C2C): Consumers buy from and sell to other consumers

–  Ex. eBay

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Differences Between B2C and B2B E-Commerce

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■  Malware

■  Spam, Phishing, and Pharming

■  Hackers

■  Ethical and Legal Issues

16-5 Challenges and Concerns Arising From New Technologies

Malware ■  Malware: General term for malicious software,

such as spyware, computer viruses, and worms

■  Spyware: Software installed on a computer without the user’s knowledge or permission to track the user’s behavior

■  Computer viruses: programs that install themselves on computers without the users’ knowledge or permission and spread by attaching themselves to emails or other files

■  Worms: Malicious software that can spread on its own without being attached to other files

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How to Protect Yourself From Malware ■  Perform regular backups

■  Install high-quality antivirus and antispyware software, and keep it updated

■  Update your operating system regularly

■  Don’t open emails or attachments if you don’t know the sender

■  Don’t download files from website unless you are sure they’re legitimate

Spam, Phishing, and Pharming ■  Spam: Unsolicited email advertisements usually sent to very large

numbers of recipients, most of whom have no interest

■  Phishing: Official looking emails are sent to individuals in an attempt to get them to divulge private information such as passwords, usernames, and account numbers

■  Pharming: Seeks to steal identities by routing Internet traffic to fake websites

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Hackers: Break-Ins in Cyberspace ■  Hackers: Skilled computer users possessing the expertise to gain

unauthorized access to other people’s computers –  Not all hackers intend to do harm

■  Firewalls: A hardware or software that creates a barrier that prevents unwanted access to a computer system

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Ethical and Legal Issues

■  Personal Privacy: –  Firms can track customer behavior in ways that were never before possible –  There’s no simple way to solve privacy concerns – there’s no strong consensus

on how much privacy is enough

■  Intellectual Property: Property that is the result of creative intellectual effort

–  Ex. Books, Musical Works, Inventions –  Copyright laws protect most intellectual property but it can be stolen through

piracy –  Piracy: When someone reproduces and distributes copyrighted work without

obtaining permission from the owner

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THE BIG PICTURE ■  IT plays a vital role in every aspect of business operations

■  Marketing uses IT to learn more about customers, reach them in novel ways, and forge stronger relationships with them

■  Finance uses IT to track financial conditions and identify investment opportunities

■  Cloud Computing has taken over

■  Business Orgs that figure out how to leverage advantages of new IT developments while minimizing risks are most likely to enjoy competitive success