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Chapter 15: Managing Information And Technology Exploring Business 2.0 © 2012 Flat World Knowledge Chapter Objectives 1. 2. 3. 4. Distinguish between data and information. Define information system (IS) and identify the tasks of the information systems manager. Explain how IS managers capture, store, and analyze data. Discuss ways in which an IS can be designed to meet the needs of individuals at various organizational levels. Exploring Business 2.0 © 2012 Flat World Knowledge Chapter Objectives 5. Describe the main systems for sharing information through networked computers. 6. Define cloud computing and identify its advantages and disadvantages. 7. Explain how four networking technologies—the Internet, the World Wide Web, intranets, and extranets—make data communication possible. 8. Identify and discuss challenges faced by companies engaged in e-commerce. 9. Identify career opportunities in information management. Exploring Business 2.0 © 2012 Flat World Knowledge Data versus Information “…data: unprocessed facts.” “…information: data that have been processed, or turned into some useful form.” Exploring Business 2.0 © 2012 Flat World Knowledge Information System “…the combination of technologies, procedures, and people who collect and distribute the information needed to make decisions and coordinate and control companywide activities.” Exploring Business 2.0 © 2012 Flat World Knowledge IS Management Chief Information Officer Chief Technology Officer Information Managers • Determine information needs • Collect data • Convert data into information • Direct information Exploring Business 2.0 © 2012 Flat World Knowledge Differing Information Needs Top Managers • Planning • Setting Objectives • Strategic Decisions Middle Managers • Allocate Resources • Oversee Activities First-Line Managers • Supervise Employees • Oversee Daily Operations • Coordinate Activities Exploring Business 2.0 © 2012 Flat World Knowledge Information Needs and Flows Exploring Business 2.0 © 2012 Flat World Knowledge Need To Share Information Integrated IT Enterprise Resource Planning System Exploring Business 2.0 © 2012 Flat World Knowledge ERP System Exploring Business 2.0 © 2012 Flat World Knowledge Data and Databases Databases Data Warehouse Data Mining • Customer Behavior Exploring Business 2.0 © 2012 Flat World Knowledge Data Mining Process Exploring Business 2.0 © 2012 Flat World Knowledge Types Of Information Systems Operations Support •Transaction Processing •Process Control •Design & Production Management Support •Management information •Decision support •Executive information Artificial Intelligence •Expert •Face-Recognition Exploring Business 2.0 © 2012 Flat World Knowledge Transaction Processing System Exploring Business 2.0 © 2012 Flat World Knowledge Design And Production Systems Computer-Aided Design Computer-Aided Manufacturing Computer-Integrated Manufacturing Flexible Manufacturing Exploring Business 2.0 © 2012 Flat World Knowledge Decision Support Systems Exploring Business 2.0 © 2012 Flat World Knowledge Executive Information Systems “…provides ready access to strategic information that’s customized to … and presented in a convenient format..” Exploring Business 2.0 © 2012 Flat World Knowledge Artificial Intelligence The science of developing computer systems that can mimic human behavior Artificial Intelligence Applications • Expert Systems • Face-Recognition Technology Exploring Business 2.0 © 2012 Flat World Knowledge Computer Networks Applications Software Local-Area Network Wide-Area Network Exploring Business 2.0 © 2012 Flat World Knowledge Local Area Network Exploring Business 2.0 © 2012 Flat World Knowledge Cloud Computing “… performing computer tasks using services provided over the Internet” Exploring Business 2.0 © 2012 Flat World Knowledge Application of Cloud Computing • Companies can contract for various cloud computing services. These include: – Software-as-a Service (SssA) • Gives companies access to a large assortment of software packages – Infrastructure-as-a-Service (IaaS) • Provides users with hardware, including servers, network equipment and disk space – Platform-as-a-Service (PaaS) • Provide services that enable users to develop customized web applications Exploring Business 2.0 © 2012 Flat World Knowledge Advantages of Cloud Computing 1. 2. 3. 4. 5. Cost savings Speed of Delivery Scalable Employees Can Be Mobile Information Technology Staff Exploring Business 2.0 © 2012 Flat World Knowledge Disadvantages of Cloud Computing 1. Disruption in Internet Service 2. Security 3. Service Provider System Crash Exploring Business 2.0 © 2012 Flat World Knowledge Data Communication Networks “…transmit digital data… from one computer to another using...wired and wireless communication channels.” Internet • Internet Service Providers • World Wide Web/Browsers Intranets Extranets Exploring Business 2.0 © 2012 Flat World Knowledge Technology Of The Web Web Pages Web Sites Webmaster Home Page Uniform Resource Locator Web Server Search Engine Exploring Business 2.0 © 2012 Flat World Knowledge Intranets/Extranets Intranet • “…a private network using… technologies… available only to employees....” Firewall • Software that controls access to an Intranet Extranet • “…intranet… partially available to certain parties outside the organization.” Exploring Business 2.0 © 2012 Flat World Knowledge Extranet Exploring Business 2.0 © 2012 Flat World Knowledge E-Commerce “…conducting business over the Internet...” Exploring Business 2.0 © 2012 Flat World Knowledge Business Uses Of The Internet Presenting Information Selling Products Distributing Digital Products Acquiring Goods/Services Virtual Company Exploring Business 2.0 © 2012 Flat World Knowledge Electronic Data Interchange & Value-Added Exploring Business 2.0 © 2012 Flat World Knowledge Security Issues In Electronic Communication Data Security Malicious Programs Spoofing Revenue Theft Risks to Customers Exploring Business 2.0 © 2012 Flat World Knowledge Malicious Programs Viruses Worms Trojan Horses Exploring Business 2.0 © 2012 Flat World Knowledge Types Of Revenue Theft Denial of Service Piracy Exploring Business 2.0 © 2012 Flat World Knowledge Preventing Unwanted Intruders • Firewalls: – Act as a gatekeeper – Inspects and screens all incoming messages to prevent unwanted intruders – Regulates outgoing traffic to preventing employees from sending out confidential data Exploring Business 2.0 © 2012 Flat World Knowledge Risks To Customers Credit-Card Theft Password Theft Invasion of Privacy Exploring Business 2.0 © 2012 Flat World Knowledge How Cookies Work Exploring Business 2.0 © 2012 Flat World Knowledge Shoring Up Security And Building Trust Encryption • “…process of encoding data so...only individuals (or computers) armed with a secret code (or key) can decode it.” Certificate Authority • “…a third party… verifies the identity of the responding computer and sends you a digital certificate stating that it trusts the site.” Exploring Business 2.0 © 2012 Flat World Knowledge Careers In Information Management • Requirement for entry-level IS jobs: – Bachelor’s degree with information systems major – Can supplement with minors in computer science or a business area Exploring Business 2.0 © 2012 Flat World Knowledge Careers In Information Management •Management path or Technical path • Senior Officers: Chief Information Officer and Chief Technology Officer Exploring Business 2.0 © 2012 Flat World Knowledge