978-0078023163 Chapter B Part 1

Bonus B – Using Technology to Manage Information

B-1

bonus ch a pter

.

Using Technology to

Manage Information

what’s new in this edition B.3

brief chapter outline and learning objectives B.5

lecture outline and lecture notes B.7

PowerPoint slide notes B.45

lecture enhancers B.61

lecture enhancer B-1: WHY WE TYPE THIS WAY B.61

lecture enhancer B-2: HARNESSING OUR DATA FOR PREDICTIVE COMPUTING B.62

lecture enhancer B-3: E-MAIL RULES B.62

lecture enhancer B-4: THE ELITE WORLD OF DATA MINING B.63

lecture enhancer B-5: REVISING MOORE’S LAW B.64

lecture enhancer B-6: JOHN ATANASOFF’S COMPUTER B.65

lecture enhancer B-7: SHARING IN SILICON VALLEY B.65

lecture enhancer B-8: HOME DEPOT’S MASSIVE SECURITY SLIP UP B.66

lecture enhancer B-9: PASSWORD OVERLOAD B.66

lecture enhancer B-10: WEB SHOPPING SAFELY B.67

B



Bonus B – Using Technology to Manage Information

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critical thinking exercises B.69

critical thinking exercise B-1: SPAM STATISTICS B.69

critical thinking exercise B-2: EDUCATION ONLINE B.70

Bonus B – Using Technology to Manage Information

B-3

what’s new in

this edition

additions to the 11th edition:

• Getting to Know Jack Dorsey of Twitter

• Name That Company: 4food

• New Learning Objective 4: Explain virtual networking and discuss the benefits and drawbacks

for cloud computing

• New section: Big Data and Data Analytics

• New Figure B.4: Examples of Sectors that Benefit from Big Data and Data Analytics

• New discussion: Net Neutrality

• New subsection: Mobile Web

• New subsection: Immersive Internet

• New subsection: Internet of Things

• New subsection: Who’s the “Boss” of the Internet

revisions to the 11th edition:

• Statistical data and examples throughout the chapter were updated to reflect current information.

• Expanded discussion on information systems and information technology

deletions from the 10th edition:

• Getting to Know Chris Hughes

• Learning Objective 4: Review the computer hardware most frequently used in business

• Learning Objective 5: Classify the types of computer software most frequently used in business

Bonus B – Using Technology to Manage Information

B-4

Bonus B – Using Technology to Manage Information

B-5

brief chapter outline

and learning objectives

BONUS CHAPTER B

USING TECHNOLOGY TO MANAGE INFORMATION

 Getting to Know JACK DORSEY, CO-FOUNDER of TWITTER

 learning objective 1

Outline the changing role of business technology.

I. THE ROLE OF INFORMATION TECHNOLOGY

A. Evolution from Data Processing to Business Intelligence

B. How Information Technology Changes Business

 learning objective 2

List the types of business information, identify the characteristics of useful in-

formation, and discuss how data are stored and analyzed.

II. TYPES OF INFORMATION

A. Managing Information

B. Organizing E-Mail and Electronic Files

C. Big Data and Data Analytics

 learning objective 3

Compare the scope of the Internet, intranets, extranets, and virtual private net-

works and explain how broadband technology enabled the evolution to Web 2.0

and 3.0.

III. THE HEART OF KNOWLEDGE MANAGEMENT: THE INTERNET

A. Broadband Technology

B. Social Media and Web 2.0

C. Web 3.0

 learning objective 4

Explain virtual networking and discuss the benefits and drawbacks for cloud

computing.

Bonus B – Using Technology to Manage Information

B-6

IV. VIRTUAL NETWORKING AND CLOUD COMPUTING

 learning objective 5

Evaluate the human resource, security, privacy, and stability issues in

management that are affected by information technology.

V. EFFECTS OF INFORMATION TECHNOLOGY ON MANAGEMENT

A. Human Resource Issues

B. Security Issues

C. Privacy Issues

D. Stability Issues

VI. TECHNOLOGY AND YOU

VII. SUMMARY

Bonus B – Using Technology to Manage Information

B-7

Getting to Know JACK DORSEY, of TWITTER

Jack Dorsey found a way to create the next big thing – twice! What started as a

childhood fascination with data led to ideas like Twitter and Square.

 learning objective 1

Outline the changing role of business technology.

I. THE ROLE OF INFORMATION TECHNOLOGY

A. Business technology is continuously CHANGING

NAMES and CHANGING ROLES.

B. EVOLUTION FROM DATA PROCESSING TO

BUSINESS INTELLIGENCE

1. DATA PROCESSING (DP) is the name for busi-

ness technology in the 1970s; included technolo-

gy that supported an existing business and was

primarily used to improve the flow of financial in-

formation.

a. DATA are raw, unanalyzed, and unorganized

facts and figures.

b. INFORMATION is the processed and orga-

nized data that can be used for managerial

decision making.

c. DATA PROCESSING was used to support

and improve an existing business by improv-

This company used social media to build its business. Its customers design new products,

name them, and enter them in the company’s database. Customers may even make YouTube

commercials that are featured on the company’s video wall. If other customers buy the new

product, the creator gets a small store credit.

(Students should read the chapter before guessing the company’s name: 4food.)

Bonus B – Using Technology to Manage Information

B-8

PPT B-1

Bonus Chapter Title

McGraw-Hill/Irwin

Using

Technology to

Manage

Information

BONUS CHAPTER B

PPT B-2

Learning Objectives

LEARNING OBJECTIVES

B-2

1. Outline the changing role of business

technology.

2. List the types of business information, identify

the characteristics of useful information, and

discuss how data are stored and analyzed.

3. Compare the scope of the Internet, intranets,

extranets, and virtual private networks and

explain how broadband technology enabled the

evolution to Web 2.0 and 3.0.

PPT B-3

Learning Objectives

LEARNING OBJECTIVES

B-3

4. Explain virtual networking and discuss the

beneﬁts and drawbacks for cloud computing.

5. Evaluate the human resource, security, privacy,

and stability issues affected by information

technology.

PPT B-4

Jack Dorsey

JACK DORSEY

Twitter

B-4



• Before co-founding Twitter in 2006,

Dorsey spent his youth learning

about technology from CB radios to

computer programming.

• He had long wanted to ﬁgure out a

way to link the real world with the

virtual world.

• After seeing the growing use of

SMS, he and two friends developed

a way to send and receive news

through small bursts of information.

PPT B-5

Name That Company

NAME that COMPANY

B-5

This company used social media to build its

business. Its customers design new products,

name them, and enter them in the company’s

database. Customers may even make YouTube

commercials that are featured on the company’s

video wall. If other customers buy the new

product, the creator gets a small store credit.

Name that company!

(See complete PowerPoint slide notes on page B.45.)

lecture enhancer B-1

WHY WE TYPE THIS WAY

The modern office has a 19th century bottleneck—the computer

keyboard. (See the complete lecture enhancer on page B.61 of

this manual.)

PPT B-6

Technology in the 1970s

TECHNOLOGY in the 1970s

B-6

LO B-1

• Data Processing (DP) — Name for business

technology in the 1970s; primarily used to improve the

ﬂow of ﬁnancial information.

• Data are the raw, unanalyzed and unorganized

facts and ﬁgures.

• Information is processed and organized data that

managers can use for decision-making.

Bonus B – Using Technology to Manage Information

B-9

ing the flow of financial information.

2. In the 1980s, business technology became

known as INFORMATION SYSTEMS (IS).

a. An INFORMATION SYSTEMS (IS) is tech-

nology that helps companies do business;

includes such tools as automated teller ma-

chines (ATMs) and voice mail.

b. Its role was changed from SUPPORTING

business to DOING business (for example,

ATMs and voicemail).

c. As business used technology more, it be-

came more dependent on it.

3. Until the late 1980s business technology in-

volved using NEW TECHNOLOGY on OLD

METHODS.

a. Then business shifted to using NEW TECH-

NOLOGY on NEW METHODS.

b. INFORMATION TECHNOLOGY (IT) is

technology used to store, retrieve and send

information efficiently.

c. The role of the IT staff has changed and in-

creased in importance.

d. Today, the CIO helps business technology

communicate better while offering better

services and lower costs.

4. KNOWLEDGE is information charged with

enough intelligence to make it relevant and use-

ful.

Bonus B – Using Technology to Manage Information

B-10

PPT B-7

Technology in the 1980s

TECHNOLOGY in the 1980s

B-7

LO B-1

• Information Systems (IS) — Technology that helps

a company do business (i.e. ATMs and voicemail).

• In the late 1980s, business technology became

known as information technology.

• Information Technology (IT) — Technology used

to store, retrieve, and send information effectively.

PPT B-8

Technology in the 1990s

TECHNOLOGY in the 1990s

B-8

LO B-1

• The 1990s introduced the world wide web and

changed how we interact with one another.

• Bluetooth technology created conveniences by

providing wireless communication systems.

Bonus B – Using Technology to Manage Information

B-11

5. A new sophisticated form of IT is BUSINESS

INTELLIGENCE (BI), any variety of software

applications that analyze an organization’s raw

data and take out useful insights from it.

7. Business intelligence changes the traditional

flow of information.

6. BI provides the right information to the right per-

son at the right time.

7. Maintaining FLEXIBILITY to deal with future

changes is critical to business survival.

C. HOW INFORMATION TECHNOLOGY CHANGES

BUSINESS

1. Time and place have always been at the center

of business.

a. Today, IT allows businesses to delivery

products and services whenever and wher-

ever it is convenient for the CUSTOMER.

b. The text uses the entertainment industry to

illustrate the changes created by new tech-

nologies.

c. As IT breaks time and location barriers, it

creates organizations and services that are

INDEPENDENT OF LOCATION.

d. NASDAQ, an electronic stock exchange

without a trading floor, allows buyers and

sellers to make trades by computer.

2. When companies increase their technological

capabilities, it changes the way people do busi-

ness.

a. E-MAIL is far faster than paper-based corre-

spondence.

Bonus B – Using Technology to Manage Information

B-12

PPT B-9

Technology in the Early 2000s

TECHNOLOGY in the

EARLY 2000s

B-9

LO B-1

• Business Intelligence (BI) —

The use of data analytic tools that

analyze an organization’s raw data

and derive useful insights from it.

• BI helps businesspeople focus

on what’s important in the

organization such as deciding

how to react to problems and

opportunities.

PPT B-10

Further Evolution

FURTHER EVOLUTION

What’s in Store for BI

B-10

Source: Information Week, www.informationweek.com, accessed November 2014.

LO B-1

1. Advanced tools will be

mainstream.

2. Mobile BI will be recharged.

3. Facebook will change how

teams collaborate.

4. Economic recovery causes

BI budget growth.

5. Upgrade fever!

PPT B-11

Technology Brings Change

• IT allows a business to serve the customer

whenever and wherever they want.

TECHNOLOGY

BRINGS CHANGE

B-11

LO B-1

• As IT broke time

and location

barriers, it created

new organizations

and services that

are independent of

location.

TEXT FIGURE B.1

The 7 Worst Tech Predictions of All

Time

This text figure gives a few quotes from technology leaders

who got it wrong—very wrong.

PPT B-12

Technology Brings Change

TEXT FIGURE B.2

How Information Technology Is

Changing Business

HOW TECHNOLOGY

CHANGES BUSINESS

B-12

LO B-1

lecture enhancer B–2

HARNESSING OUR DATA FOR

PREDICTIVE COMPUTING

As companies move to a electronic-based communication sys-

tems, others are looking for ways to make it quicker and more

efficient. (See the complete lecture enhancer on page B.62 of

this manual.)

Bonus B – Using Technology to Manage Information

B-13

b. TEXTING AND INSTANT MESSAGING (IM)

has become a favorite business real-time

communication tool.

3. Internet and intranet communication using

SHARED DOCUMENTS lets contributors work

on a common document without meeting in per-

son.

 learning objective 2

List the types of business information, identify the characteristics of useful

information, and discuss how data are stored and analyzed.

II. TYPES OF INFORMATION

A. TYPES OF INFORMATION THAT ARE AVAILA-

BLE:

1. BUSINESS PROCESS INFORMATION, such

as information about sales, enterprise resource

planning, supply chain management, and cus-

tomer relationship management systems

2. PHYSICAL-WORLD OBSERVATIONS from

devices such as RFID devices, web cams, glob-

al positioning systems, and sensor technology

3. BIOLOGICAL DATA, including fingerprinting

and biometric devices

4. PUBLIC DATA, including electronic traces that

people leave when surfing the Internet

5. Data that indicate PERSONAL PREFERENCE

OR INTENTIONS such as the trail of information

that Internet shoppers leave

Bonus B – Using Technology to Manage Information

B-14

PPT B-13

Top U.S. Cities by High-Tech Em-

ployment

TOP U.S. CITIES by

HIGH-TECH EMPLOYMENT

City # of People Employed by

High-Tech Firms

New York 310,000

Washington, D.C. 295,000

San Jose/Silicon Valley 225,000

Boston 190,000

Dallas-Fort Worth 175,000

B-13

LO B-1

test

prep

PPT B-14

Test Prep

TEST PREP

B-14

• How has the role of information technology

changed since the days when it was known as

data processing?

• How has information technology changed the

way we do business?

PPT B-15

Key Types of Business Information

Available

KEY TYPES of BUSINESS

INFORMATION AVAILABLE

B-15

LO B-2

• Business process

information

• Physical-world

observations

• Biological data

• Public data

• Data that indicate

personal preferences or

intentions

Bonus B – Using Technology to Manage Information

B-15

B. MANAGING INFORMATION

1. To find what they need, managers have to sift

through mountains of information.

2. Businesspeople refer to all this information over-

load as “INFOGLUT.”

3. IDENTIFYING THE FOUR OR FIVE KEY

GOALS helps eliminate unnecessary infor-

mation.

4. USEFULNESS of management information de-

pends on four characteristics:

a. QUALITY: The information must be accurate

and reliable.

b. COMPLETENESS: There must be enough

data to make a decision, but not too much to

confuse the issue.

c. TIMELINESS:

i. Information must reach managers quick-

ly.

ii. Technologies such as e-mail, texting,

and instant messaging increase infor-

mation timeliness.

d. RELEVANCE: Managers must know the

questions to ask to get the answers they

need.

5. It is impossible to understand all the information

available, so priorities must be established.

C. ORGANIZING E-MAIL AND ELECTRONIC FILES

1. Use your e-mail program’s organizing tools and

create folders for specific topics, projects, or cli-

ents.