Chapter 13
Information Technology for Business
© 2007 Prentice Hall, Inc. All rights reserved.
13–1
LEARNING OUTCOMES
After reading this chapter, you should be able to:
Discuss the impacts information technology has had on the
business world.
Identify the IT resources businesses have at their disposal and
how these resources are used.
Describe the role of information systems, the different type of
information systems, and how businesses use such systems.
Identify the threats and risks information technology poses on
businesses.
Describe the ways in which businesses protect themselves from
the threats and risks information technology poses.
© 2007 Prentice Hall, Inc. All rights reserved.
13–2
What in It for Me?
By understanding this chapter’s discussion on
the impact of technology on business, you’ll
have a clearer picture of:
 How technology is used by and affects business
 How, as an employee, manager, or consumer, you
can use technology to your best advantage
© 2007 Prentice Hall, Inc. All rights reserved.
13–3
IT Basics
Information Technology (IT)
 The various appliances and devices for creating,
storing, exchanging, and using information in diverse
modes, including visual images, voice, multimedia,
and business data
E-commerce (Electronic commerce)
 The use of the Internet and other electronic means
for retailing and business-to-business transactions
© 2007 Prentice Hall, Inc. All rights reserved.
13–4
IT Impacts
Creating Portable Offices
 Providing remote access to instant information
Enabling Better Service
 Coordinating remote deliveries
Creating Leaner, More Efficient Organizations
 Allowing more work and customer satisfaction to be
accomplished with fewer people
Enabling Increased Collaboration
 Using collaboration software and other IT
communication devices
© 2007 Prentice Hall, Inc. All rights reserved.
13–5
IT Impacts (cont’d)
Enabling Global Exchange
 Fostering collaboration on a worldwide scale
Improving Management Processes
 Using enterprise resource planning (ERP) to change
the nature of the management process
Providing Flexibility for Customization
 Creating new manufacturing capabilities that offer
customers greater variety (mass customization) and
faster delivery cycles
© 2007 Prentice Hall, Inc. All rights reserved.
13–6
IT Impacts (cont’d)
Providing New Business Opportunities
 Creating entirely new businesses where none
existed before
Improving the World and Our Lives
 Advancing medical and diagnostic techniques
© 2007 Prentice Hall, Inc. All rights reserved.
13–7
IT Building Blocks: Business Resources
Internet
 A gigantic system of interconnected computers of
more than 100 million computers in over 100
countries
World Wide Web
 A standardized code for accessing information and
transmitting data over the Internet
© 2007 Prentice Hall, Inc. All rights reserved.
13–8
IT Building Blocks: Business Resources
(cont’d)
Intranets
 Private internal information networks accessible only
by employees
Extranets
 Allow outsiders limited access to internal information
networks
© 2007 Prentice Hall, Inc. All rights reserved.
13–9
IT Building Blocks: Business Resources
(cont’d)
Electronic Conferencing
 Allows groups of people to communicate
simultaneously from various locations via email,
phone, or video
Data conferencing
 Video conferencing

VSAT Satellite Communications
 Satellite-based private network for voice, video, and
data transmissions
© 2007 Prentice Hall, Inc. All rights reserved.
13–10
Networks: System Architecture
Computer Network
 A group of two or more computers linked together by
some form of cabling (fiber-optic, coaxial, or twisted
wire) or by wireless technology to share data or
resources such as a printer
Client-Server Network
 Clients

The laptop or desktop computers through which users make
requests for information or resources
 Servers

The computers that provide the services shared by users
© 2007 Prentice Hall, Inc. All rights reserved.
13–11
Types of Networks
Wide Area Networks (WANs)
 Computers linked over long distances
Local Area Networks (LANs)
 Computers linked in a smaller area, such as all of a
firm’s computers within a single building
Wireless Networks
 Use airborne electronic signals to link computers and
devices

BlackBerry system
© 2007 Prentice Hall, Inc. All rights reserved.
13–12
Types of Networks (cont’d)
Wi-Fi (Wireless Fidelity)
 An access point that forms its own small network
Wireless LAN or WLAN
 A wireless local area network

WiMax (Worldwide Interoperability for Microwave Access)
© 2007 Prentice Hall, Inc. All rights reserved.
13–13
Hardware and Software
Hardware
 Physical components such as laptops, desktops,
handheld computers, keyboards, monitors, system
units, and printers
Software
 System software
 Application (productivity) software
 Groupware
© 2007 Prentice Hall, Inc. All rights reserved.
13–14
Information Systems: Harnessing
the Competitive Power of IT
Data
 Raw facts and figures
Information
 The meaningful, useful interpretation of data
Information System (IS)
 A system that uses IT resources and enables
managers to turn data into information for use in
decision making
 Information system managers operate the systems
used for gathering, organizing, and distributing
information
© 2007 Prentice Hall, Inc. All rights reserved.
13–15
Leveraging Information Resources
Data Warehousing
 The collection, storage, and retrieval of data in
electronic files
Data Mining
 The application of electronic technologies for
searching, sifting, and reorganizing pools of data to
uncover useful information
© 2007 Prentice Hall, Inc. All rights reserved.
13–16
Types of Information Systems
Information Systems for Knowledge Workers
 Provides resources to create, store, use, and
transmit new knowledge for useful applications
Information Systems for Managers
 Management information systems (MIS)

Provide reports, schedules, plans, and budgets that can
then be used for making decisions
 Decision support systems (DSS)

Interactive systems that create virtual business models and
test them with different data to see how they respond
© 2007 Prentice Hall, Inc. All rights reserved.
13–17
IT Risks and Threats
Hackers
 Cybercriminals who gain unauthorized access to a
computer or network, either to steal information,
money, or property or to tamper with data
Wireless mooching
 Denial of service (DOS) attacks

Identity Theft
 Stealing of personal information to get loans, credit
cards, or other monetary benefits by impersonating
the victim
Phishing
 Pharming

© 2007 Prentice Hall, Inc. All rights reserved.
13–18
IT Risks and Threats (cont’d)
Intellectual Property Theft
 Theft of a product of the mind—something produced
by the intellect, with great expenditure of human
effort—that has commercial value
Computer Viruses, Worms, and Trojan Horses
 Malicious programs that, once installed, can shut
down a computer system
Spyware
 Software that transmits stolen personal information
Spam
 Widely broadcast, unsolicited e-mail
© 2007 Prentice Hall, Inc. All rights reserved.
13–19
IT Protection Measures
Preventing Unauthorized Access
 Firewalls

Security systems with special software or hardware devices
designed to keep computers safe from hackers
 Components for filtering messages:
Security policy
 Router

© 2007 Prentice Hall, Inc. All rights reserved.
13–20
IT Protection Measures
Preventing Identity Theft
 Fair and Accurate Credit Transactions Act of 2005
Preventing Viruses
 Anti-virus software
© 2007 Prentice Hall, Inc. All rights reserved.
13–21
IT Protection Measures (cont’d)
Protecting Electronic Communications
 Encryption software

Works by locking an e-mail message to a unique code
number (digital fingerprint) for each computer so only that
computer can open and read the message
Avoiding Spam and Spyware
 Anti-spyware software
 CAN-SPAM Act of 2006
© 2007 Prentice Hall, Inc. All rights reserved.
13–22