13 chapter Information Technology for Business Business Essentials, 7th Edition Ebert/Griffin Instructor Lecture PowerPoints © 2009 Pearson Education, Inc. PowerPoint Presentation prepared by Carol Vollmer Pope Alverno College All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording, or otherwise, without the prior written permission of the publisher. Printed in the United States of America. © 2009 Pearson Education, Inc. 2 LEARNING OBJECTIVES After reading this chapter, you should be able to: 1. Discuss the impacts information technology has had on the business world. 2. Identify the IT resources businesses have at their disposal and how these resources are used. 3. Describe the role of information systems, the different types of information systems, and how businesses use such systems. 4. Identify the threats and risks information technology poses on businesses. © 2009 Pearson Education, Inc. L E A R N I N G O B J E C T I V E S (cont’d) After reading this chapter, you should be able to: 5. Describe the ways in which businesses protect themselves from the threats and risks information technology poses. © 2009 Pearson Education, Inc. What’s 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 how it affects business – How, as an employee, manager, or consumer, you can use technology to your best advantage © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. FIGURE 13.1 Networking for Mass Customization © 2009 Pearson Education, Inc. IT Building Blocks: Business Resources • Internet – A gigantic system of more than 100 million interconnected computers in more than 100 countries • World Wide Web – A standardized code for accessing information and transmitting data over the Internet © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. FIGURE 13.2 Blackberry Wireless Internet Architecture © 2009 Pearson Education, Inc. 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) © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. Types of Information Systems • Information Systems for Knowledge Workers – Provide 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 © 2009 Pearson Education, Inc. IT Risks and Threats • Hackers – Cyber criminals 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. IT Protection Measures • Preventing Identity Theft – Fair and Accurate Credit Transactions Act of 2005 • Preventing Viruses – Anti-virus software © 2009 Pearson Education, Inc. 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 © 2009 Pearson Education, Inc. Key Terms anti-virus software client-server network computer network computer-aided design (CAD) data data mining data warehousing decision support system (DSS) e-commerce electronic conferencing encryption system extranet firewall hacker hardware identity theft information information system information systems managers information technology (IT) intellectual property Internet intranet knowledge information system local area network (LAN) management information system (MIS) mass-customization © 2009 Pearson Education, Inc. Key Terms (cont’d) software spam spyware VSAT satellite communications wide area network (WAN) Wi-Fi wireless local area network (wireless LAN or WLAN) wireless wide area network (WWAN) World Wide Web © 2009 Pearson Education, Inc.