Business Management, 13e CHAPTER 12 Technology and Information Management 12.1 Electronic Technology Fundamentals 12.2 Information Management 12.3 Technology and Business Strategy ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 2 12.1 Electronic Technology Fundamentals GOALS ● Describe the role of information in a modern business. ● Describe how the Internet provides information to users. ● Describe the basic technology infrastructure used by businesses. CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 3 Managing in a Technology World ● Knowledge workers ● Information center operated by people who work with information ● Managers Supervisors, and workers ● Data ● The original facts and figures that businesses generate, must be collected and processed in a meaningful way ● Information ● Data is turned into information CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 4 Technology Change ● Computing ● Digital computers, Mainframe, PC Software ● Moore’s Law ● A computer bought only one to two years ago will be obsolete this year. ● Wireless technology ● 4G CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 5 Checkpoint ● Describe the difference between data and information? CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 6 Checkpoint ● Describe the difference between data and information? ● Data is the original facts and figures that businesses generate. ● Information is the data that have been processed in some meaningful way that is useful to decision makers. CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 7 The Internet Platform ● Internet ● A world wide network of linked computers that allows users to transfer data and information from one computer to another anywhere in the world. ● World Wide Web ● Consists of a set of standards that have made the internet accessible to the average person CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 8 Checkpoint ● Explain the difference between the Internet and the WWW? CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 9 Checkpoint ● Explain the difference between the Internet and the WWW? ● The internet consists of a worldwide network of computers ● The Web allows individuals to use the internet through browsers and links CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 10 Distributing Information ● Local area network (LAN) ● Use of a network in a single building or complex ● Server ● Stores the data ● Wide area network (WAN) ● Wide geographical area ● Intranets ● Extranets ● Search engine CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 11 Checkpoint ● Describe the difference between a local area network and wide area network? CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 12 Checkpoint ● Describe the difference between a local area network and wide area network? ● A local area network consists of linked computers that serve users in a single building or building complex ● Wide area networks link computers over larger geographic regions CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 13 12.2 Information Management GOALS ● Describe the information systems that managers use to aid in their decision making. ● Discuss the advantages and disadvantages of Internet-based communication. ● Describe how information systems can improve business operations. CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 14 Managing Technology ● CIO (Chief Information Officer) ● Organizing information systems ● Database ● Information Systems ● Management information system ● Decision support system ● Executive information system CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 15 Checkpoint ● List the three types of information systems? CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 16 Checkpoint ● List the three types of information systems? ● Management information systems ● Decision support systems ● Executive support systems CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 17 Networked Communication ● Voice over Internet Protocol (VoIP) ● Using the internet for telephone services ● Videophones ● Share application software and collaborate by using text and graphics tools while sitting at your computer ● Information security ● Firewall CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 18 Checkpoint ● Describe how businesses can help ensure online security? CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 19 Checkpoint ● Describe how businesses can help ensure online security? ● Companies should put in place firewalls ● Ensuring passwords are changed frequently ● Fingerprint scanning ● Voice verification CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 20 Improving Business Operations ● Internet ● Important tool to improve business operations and control costs ● Company Websites ● Digital dashboards ● Management information system that allows multiple sources of information to be displayed graphically on a computer. CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 21 Checkpoint ● Describe three ways technology improves business efficiency? CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 22 Checkpoint ● Describe three ways technology improves business efficiency? ● Sales people can check inventory ● Inventory can eb tracked in real-time ● Orders and shipping can be tracked CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 23 12.3 Technology and Business Strategy GOALS ● Describe technology’s impact on strategy. ● Describe the planning process for developing an online business. ● Discuss types of problems that employees face in today’s high-technology organizations. CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 24 Technology’s Impact on Strategy ● Customer data ● Data collected from online behavior are placed into databases where data mining techniques are used to create information ● Data mining ● The process of using data in databases to find relationships between individuals and their behavior or preferences ● Developing customer profiles ● Product registration CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 25 Technology’s Impact on Strategy ● Social networking ● Allows users to post information about themselves and share that information with others ● Competitor data ● Companies with publicly traded stock will often post their annual reports to stockholders and other information online CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 26 Checkpoint ● Describe the data the businesses collect over the internet? CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 27 Checkpoint ● Describe the data the businesses collect over the internet? ● Business trends and competition ● Customers and potential customers CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 28 E-Business Planning ● Business planning for a website Determine the purpose 2. Study the business’s customers, their needs, and their online experience 3. Plan the design aspects of e-business website 4. To decide how e-business will host its technology 1. CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 29 E-Business Planning ● Web Server, Web-hosting service, Domain Name ● Technology development ● Order processing ● Electronic Shopping carts ● Website design ● Site promotion ● Open for business CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 30 Checkpoint ● Describe the three main tasks of e-business planning? CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 31 Checkpoint ● Describe the three main tasks of e-business planning? ● Business Planning ● Technology development ● Site promotion CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 32 Technology’s Impact on Work and Workers ● Health problems ● Carpal Tunnel Syndrome (CTS) ● Ergonomics ● Changed jobs ● Businesses must be adaptable and employees must change to meet the needs of employees ● Manager must take advantage of technology changes to reengineer, or redesign, the workflow process CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 33 The Future Impact of Technology ● Data mining ● Social shopping ● Biometric security ● Wireless technology ● Cell phone technology CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 34 Checkpoint ● List five future technology changes managers must consider? CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved. Business Management, 13e 35 Checkpoint ● List five future technology changes managers must consider? ● Data mining ● Social shopping ● Biometric security ● Wireless Technology ● Cell Phone Technology CHAPTER 12 ©2013 Cengage Learning. All Rights Reserved.