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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
B-2
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
Copyright © 2015 by the McGraw-Hill Companies, Inc. All rights reserved.
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.
