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.