CHAPTER 17

I. THE ROLE OF INFORMATION TECHNOLOGY.

LEARNING GOAL 1. Outline the changing role of business technology.

A. Business technology is continuously changing names and changing roles.

1. In the 1970s, business technology was known as DATA PROCESSING (DP).

a. DATA are raw, unanalyzed, and unsummarized facts and figures.

b. INFORMATION is the processed and summarized data that can be used for managerial decision making.

c. Its role was to SUPPORT existing business through improving the flow of financial information.

d. It was primarily used to improve the flow of financial information.

2. In the 1980s, business technology became known as INFORMATION SYSTEMS (IS).

a. Its role was changed from supporting business to DOING business (for example ATMs and voice mail).

b. As business used technology more, it became more dependent on it.

3. In the late 1980s, business technology became known as INFORMATION TECHNOLOGY (IT).

a. Business shifted from using new technology on old methods, to using it on NEW METHODS.

b. Information technology's role became to CHANGE business.

B. 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 wherever it is convenient for the CUSTOMER.

b. As IT breaks time and location barriers, it creates organizations and services that are INDEPENDENT OF LOCATION.

2. IT also creates organizations and services that are independent of location.

3. VIRTUALIZATION means that you don't have a physical place to go to work, but where everything is accessible through technology.

a. The technology allows you to access people and information as if you were in an actual office.

b. Virtual communities are forming as people communicate over computer networks.

C. MOVING FROM INFORMATION TECHNOLOGY TOWARD KNOWLEDGE TECHNOLOGY.

1. In the mid-1980s, we started moving from information technology toward KNOWLEDGE TECHNOLOGY (KT)-information charged with enough intelligence to make it relevant and useful.

2. KNOWLEDGE TECHNOLOGY adds a layer of intelligence to filter appropriate information and deliver it when it is needed.

3. KT changes the traditional flow of information from an individual GOING to the data base to the data COMING to the individual.

4. KT 'thinks' about the facts based on an individual's needs so businesspeople can spend more time DECIDING about how to react to problems and opportunities.

II. THE ROAD TO KNOWLEDGE: THE INTER NET, INTRANETS, AND EXTRANETS.

LEARNING GOAL 2. Compare the scope of the Internet, intranets, and extranets as tools in managing information.

A. Knowledge, more than physical assets, is now the key to successful competition.

1. Knowledge has become one of the more important factors of production.

2. Business is realizing that it needs to manage knowledge like any other asset.

3. This need is leading to new technologies that support contact among staff, suppliers, and customers.

B. INTERNETS AND INTRANETS.

1. The INTERNET is a network of computer networks.

2. An INTRANET is a company-wide network closed to public access, which uses Internet-type technology.

a. Some companies use intranets only to publish information for employees.

b. Others create interactive intranets, al lowing employees to input information.

3. Intranets are the fastest-growing segments of the Internet.a. By 2002 between a half and two-thirds of all businesses will be running Intranets.

b. To limit access, companies can construct a 'firewall' between themselves and the outside world to protect corporate information from unauthorized users.

4. An EXTRANET is a semiprivate network that uses Internet technology so more than one company can access the same information.

C. The Internet is changing the way we do business.

1. Now almost all companies can use the Internet to share and process data.

2. The Internet creates a critical mass of people who can exchange data over the network.

3. It is also making it easier for small businesses to sell their goods and services globally.

4. With no changes in capacity, however, the MORE PEOPLE USE INTERNET TECHNOLOGY, the SLOWER it becomes.

a. The traffic on the information super highway has become so intense that early Net users have been squeezed off the crowded Internet.

b. Their answer is to create another Internet, reserved for research purposes only.

D. The new system, INTERNET 2, will run 100 to 1,000 times faster and will support heavy-duty applications.

1. A key element is a network called vBNS, or VERY HIGH SPEED BACKBONE NETWORK SERVICE, set up in 1995 to link government supercomputer centers and a select group of universities.

2. It is expected to be available to the private sector by 2000.

3. The designers of Internet 2 are planning to filter Internet 2 technology out in such a way that there is plenty of room for everyone.

III. MANAGING INFORMATION.

LEARNING GOAL 3. List the steps in managing information and identify the characteristics of useful information.

A. Managers have always had to sift through mountains of information to find what they need.

1. Today businesspeople also have voice mail, the Internet, faxes, and e-mail.

2. Business people refer to this information overload as 'INFOGLUT.'

B. IDENTIFYING THE FOUR OR FIVE KEY GOALS helps eliminate unnecessary information.

C. USEFULNESS of management information depends on four characteristics:

1. QUALITY: the information must be accurate and reliable.

2. COMPLETENESS: there must be enough data to make a decision, but not too much to confuse.

3. TIMELINESS: Information must reach managers quickly.

4. RELEVANCE: Managers must know the questions to ask to get the answers they need.

D. Sorting out the useful information and getting it to the right people is the goal in solving information overload.

1. Software programs can filter information so that users can get the customized information they need.

2. Known as 'PUSH TECHNOLOGY,' they push the information to you, delivering customized news to your computer.

3. Software developers are working on a program with a fortune dial that will allow the user to receive some amount of random information.

IV. THE ENABLING TECHNOLOGY.

LEARNING GOAL 4. Review the hardware most frequently used in business and outline the benefits of the move toward computer networks.

A. What is powerful today in computer hardware may be obsolete by the time you study this.

1. Chairman of Intel Corp., Gordon Moore, has remarked that the capacity of computer chips doubles every year or so (GORDON'S LAW.)

2. Gordon has recently revised his law by saying that his prediction cannot hold good for much longer because the finite size of atomic particles will prevent infinite miniaturization.

3. This will be a simple overview of the kind of computer technology available now, at the start of the new millennium.

B. HARDWARE includes computers, pagers, cellular phones, scanners, printers, fax machines, etc.

1. All-in-one devices that address all your communications needs are now available.

2. Researchers are working on a human computer interface that combines a video camera and computer.

C. COMPUTER NETWORKS.

1. The most dynamic change in recent years is the move AWAY FROM MAINFRAME COMPUTER PROCESSING TOWARD NETWORK SYSTEMS that allow many users top access information at the same time.

a. In the new NETWORK COMPUTING SYSTEM (also called CLIENT/SERVER COMPUTING), the tasks such as searching sales records are handled by personal computers ('clients').

b. The information needed to complete the tasks is stored in huge databases controlled by the 'server.'

2. The major BENEFITS OF NETWORKS are:

a. SAVING TIME AND MONEY.

b. NETWORKS PROVIDE EASY LINKS ACROSS FUNCTIONAL BOUNDARIES.

c. COMPANIES CAN SEE THEIR PROD UCTS MORE CLEARLY.

(i) In traditional organizations, information is summarized so many times that it often loses its meaning.

(ii) Networks catch raw information.

(iii) Anyone can access that data and search for information.

(iv) Many more employees have direct access to market information and can act accordingly.

D. MAINFRAMES ARE NOT DEAD.

1. As many as a third of the companies that try networking go back to mainframes.

2. For the next decade or so the computing world will be a hybrid.

3. PCs will take on more jobs with their speed and flexibility, while MAINFRAMES will handle the big jobs of storing, transferring, and processing large amounts of data.

V. SOFTWARE.

LEARNING GOAL 5. Classify the computer software most frequently used in business.

A. Computer software provide the instructions that enable you to tell the computer what to do.

1. It is important to find the right SOFTWARE to do the job you have BEFORE finding the right HARDWARE.

a. Some programs are easier to use than others.

b. Other programs are more sophisticated with more functions.

c. A business person must decide what functions he or she wants performed then choose the appropriate software.

2. Most software is distributed commercially through suppliers.

a. There is some software, called SHAREWARE, that is copyrighted but distributed to potential customers free of charge.

b. PUBLIC DOMAIN SOFTWARE is software that is free for the taking.

3. Businesspeople most frequently use SOFTWARE FOR SIX MAJOR PURPOSES:

a. WRITING (word processors.)

b. MANIPULATING NUMBERS (spread sheets.)

c. FILING AND RETRIEVING DATA (data bases.)

d. PRESENTING INFORMATION VISUALLY (graphics.)

e. COMMUNICATING.

f. ACCOUNTING.

4. Many functions have been combined in one kind of program known as INTEGRATED SOFTWARE or SUITES.

5. A new class of software program, called GROUPWARE, has emerged for use on net works.

B. WORD PROCESSING PROGRAMS.

1. The most popular word processing pro grams can handle everything from a letter to a book.

2. They can also produce sophisticated designs.

3. Businesses use word processors to INCREASE OFFICE PRODUCTIVITY.

4. DESKTOP PUBLISHING combines word processing with graphics capabilities to allow businesses to publish their own professional-looking newsletters and presentations.

5. Popular programs include Corel Word Perfect, Microsoft Word, and WordPro.

C. SPREADSHEET PROGRAMS.

1. A SPREADSHEET PROGRAM is simply the electronic equivalent of an accountant's worksheet plus features such as mathematical functions and charts.

2. A SPREADSHEET is a table made up of rows and columns which enables a manager to organize information.

3. Using the computer's speedy calculations, managers can ask 'what if' questions and get fast answers.

4. Popular programs include Lotus 1-2-3, Quattro Pro, and Excel.

D. DATABASE PROGRAMS.

1. DATABASE PROGRAMS allow you to work with information you normally keep in lists: names and addresses, schedules, inventories, and so on.

2. Most programs have features that let you print only certain information, arrange records in any order, and change the way information is displayed.

3. Popular programs include: Q amp; A, Access, Approach, Paradox, PFS: Professional File, PC-File, dBase IV, R base, and HyperCard for Apple computers.

4. PERSONAL INFORMATION MANAGERS (PIMs) are specialized database programs that let users track communication with their business contacts.

5. Popular PIMs include Goldmine, Lotus Organizer, ACT, and ECCO Pro.

E. GRAPHICS AND PRESENTATION PROGRAMS.

1. COMPUTER GRAPHICS programs can use data from spreadsheets to visually summarize information by drawing bar graphs, pie charts, and line charts.

2. Inserting sound clips, video clips, clip art, and animations to turn a dull presentation into an enlightening presentation.

3. Popular programs include: MacDraw for Macintosh computers, Harvard Graphics, Lotus Freelance Plus, Active Presenter, and Corel Draw.

F. COMMUNICATIONS PROGRAMS.

1. COMMUNICATIONS SOFTWARE makes it possible for different brands of computers to transfer data to each other.

2. The software translates the data into ASCII (AMERICAN STANDARD CODE FOR INFORMATION INTERCHANGE.)

3. MESSAGE CENTER SOFTWARE has pro vided an efficient way of making certain that phone calls, e-mail, and faxes are received, sorted, and delivered on time, no matter where you are.

4. Popular programs include Communicate, Message Center, and WinFax Pro.

G. ACCOUNTING/FINANCE PROGRAMS.

1. ACCOUNTING SOFTWARE helps users re cord financial transactions and generate financial reports.

2. Some programs include online banking features or financial 'advisors.'

3. Popular accounting/finance programs include Peach Tree Complete Accounting, Simply Accounting, and QuickBooks Pro.

H. INTEGRATED PROGRAMS.

1. INTEGRATED SOFTWARE offers two or more applications in one package.

2. You can share information across applications easily.

3. Most such packages include word processing, database management, spreadsheet, graphics, and communications.

4. Popular programs include Microsoft Office, Lotus SmartSuite, and Corel WordPerfect Suite.

I. GROUPWARE.

1. GROUPWARE is software that allows people to work collaboratively and share ideas.

2. Groupware runs on a network and allows people to work on the same project at the same time.

3. Team members can swap leads, share client information, and make suggestions.

4. Groupware software includes Lotus Notes, Frontier's Intranet Genie, Metainfo Sendmail, and Radnet Web Share.

VI. EFFECTS OF INFORMATION TECHNOLOGY ON MANAGEMENT.

LEARNING GOAL 6. Evaluate the human resource, security, and privacy issues in management that are affected by information technology.

A. HUMAN RESOURCE ISSUES.

1. Computers will tend to ELIMINATE MIDDLE MANAGEMENT FUNCTIONS and thus flat ten organization structures.

2. Computers and the increased use of the Internet and intranets will allow employees to stay home and do their work from there (TELECOMMUTING.)

3. ADVANTAGES OF TELECOMMUTING:

a. Telecommuting involves LESS TRAVEL TIME AND COSTS, and often increases productivity.

b. It helps companies save money by RETAINING VALUABLE EMPLOYEES and by TEMPTING EXPERIENCED EMPLOYEES OUT OF RETIREMENT.

c. Companies can get by with SMALLER, LESS EXPENSIVE OFFICE SPACE.

d. Telecommuting enables men and women TO STAY HOME WITH SMALL CHILDREN and is a tremendous BOON FOR DISABLED WORKERS.

e. Studies show that it is more SUCCESSFUL AMONG SELF-STARTERS and those whose work doesn't require face-to-face interaction with co-workers.

4. DISADVANTAGES OF TELECOMMUTING:

a. Long-distance work can give workers a DISLOCATED FEELING of being left out of the office loop.

b. Some feel a LOSS OF ENERGY people can get through social interaction.

c. Often people working from home don't know WHEN TO TURN THE WORK OFF.

d. Some companies are using telecommuting as a PART-TIME ALTERNATIVE.

5. Electronic communication CAN NEVER REPLACE HUMAN COMMUNICATION for creating enthusiasm and esprit de corps.

6. Computers are a tool, not a total replacement for managers or workers.

B. SECURITY ISSUES.

1. HACKERS, people who break into computer systems for illegal purposes, are an increasing problem.

2. Computer security today is more complicated than in the past.

a. When information was processed in a mainframe environment, the single data center was easier to control.

b. Today computers are not only accessible in all areas of the company, but also with other companies.

3. A VIRUS is a piece of programming code inserted into other programming to cause some unexpected and undesirable event.

a. Viruses are spread by downloading infected programming over the Internet or by sharing an infected diskette.

b. Some viruses are playful, but some can erase data or crash a hard drive.

c. Software programs such as Norton's Anti-Virus 'inoculate' the computer so that it doesn't catch a known virus.

d. It is important to keep your anti-virus protection program up-to-date and practice 'safe computing.'

4. Existing laws do not address some Internet issues such as:

a. Copyright and pornography laws.

b. Intellectual property and contract disputes.

c. Online sexual and racial harassment.

d. Crooked sales schemes.

C. PRIVACY ISSUES.

1. A major problem with privacy has developed as more and MORE PERSONAL INFORMATION IS STORED IN COMPUTERS and people are able to access that data illegally.

a. The Internet allows Web surfers to access all sorts of information about you.

b. One of the key issues is: Isn't this personal information already public anyway?

2. Web sites have gotten downright nosy by secretly tracking users' movements online.

a. Web surfers seem willing to swap personal details for free access to online information.

b. Web sites often send COOKIES to your computer that stay on your hard drive.

c. These often simply contain your name and password.

d. Others track your movements around the Web and then blend that information with their databases and tailor the ads you receive accordingly.

e. You need to decide how much information about yourself you are willing to give away.

VII. TECHNOLOGY AND YOU.

LEARNING GOAL 7. Identify the careers that are gaining or losing workers due to the growth of information technology.

A. It may be OCCUPATIONAL SUICIDE TO BE COMPUTER ILLITERATE since most workers come in contact with computers to some degree.

1. A 1997 survey found that nearly 80% of respondents believe it is impossible to succeed in the job market without a working knowledge of technology.

2. More than 80% of the women surveyed said that computer proficiency was key to their entry into traditionally male-dominated fields.

B. The Commerce Department has warned that the U.S. is facing an increasing shortage of information technology workers.

1. About 190,000 information technology jobs remained unfilled in 1997.

2. By 2005, U.S. businesses will need more than one million new high-tech workers.

C. Researchers who have studied computer phobia (fear of computers) found that 55% of Americans have the disorder.

1. Gender, age, and income level don't appear to lead to computer phobia-the key variable is exposure.

2. As information technology eliminates old jobs while creating new ones, it is up to you to learn the skills you need to be certain you aren't left behind.