Business Essentials, 7th Edition Ebert/Griffin

Information Technology for
Business Essentials, 7th Edition
© 2009 Pearson Education, Inc.
PowerPoint Presentation prepared by
Carol Vollmer Pope Alverno College
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© 2009 Pearson Education, Inc.
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
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
– 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
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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
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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
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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
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FIGURE 13.1 Networking for Mass Customization
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IT Building Blocks: Business Resources
• Internet
– A gigantic system of more than 100 million
interconnected computers in more than 100
• World Wide Web
– A standardized code for accessing information and
transmitting data over the Internet
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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
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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
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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
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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
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FIGURE 13.2 Blackberry Wireless Internet Architecture
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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
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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
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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
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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
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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
© 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
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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
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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
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IT Protection Measures
• Preventing Identity Theft
– Fair and Accurate Credit Transactions Act of 2005
• Preventing Viruses
– Anti-virus software
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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 mining
data warehousing
decision support system (DSS)
electronic conferencing
encryption system
identity theft
information system
information systems managers
information technology (IT)
intellectual property
knowledge information system
local area network (LAN)
management information system
© 2009 Pearson Education, Inc.
Key Terms (cont’d)
VSAT satellite communications
wide area network (WAN)
wireless local area network
(wireless LAN or WLAN)
wireless wide area network
World Wide Web
© 2009 Pearson Education, Inc.
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