THE ROLE OF INFORMATION TECHNOLOGY
- Business technology
is continuously changing names and changing roles.
- In the 1970s,
business technology was known as DATA PROCESSING (DP).
- DATA
are raw, unanalyzed, and unsummarized
facts and figures.
- INFORMATION
is the processed and summarized data that can be used for managerial
decision making.
- Its role was to
SUPPORT existing business through improving the flow of
financial information.
- It was
primarily used to improve the flow of financial information.
- In the 1980s,
business technology became known as INFORMATION
SYSTEMS (IS).
- Its role was
changed from supporting business to DOING business (for example
ATMs and voice mail).
- As business
used technology more, it became more dependent on it.
- In the late
1980s, business technology became known as INFORMATION TECHNOLOGY
(IT).
- Business
shifted from using new technology on old methods, to using it on
NEW METHODS.
- Information
technology’s role became to CHANGE business.
- HOW INFORMATION
TECHNOLOGY CHANGES BUSINESS
- Time and place
have always been at the center of business.
- Today IT allows
businesses to delivery products and services whenever and wherever it
is convenient for the CUSTOMER.
- As IT breaks
time and location barriers, it creates organizations and services that
are INDEPENDENT OF LOCATION.
- NASDAQ and
SOFFEX
are electronic stock exchanges
without trading floors.
- IT also creates
organizations and services that are independent of location.
- VIRTUALIZATION
means accessibility through technology that allows business to be
conducted independent of location.
- The technology
allows you to access people and information as if you were in an
actual office.
- Virtual
communities are forming as people communicate over computer networks.
- Doing business
dramatically changes when companies increase their technological
capabilities.
-
MOVING FROM INFORMATION TECHNOLOGY TOWARD KNOWLEDGE TECHNOLOGY
- In the mid-1990s,
we started moving from information technology toward KNOWLEDGE
TECHNOLOGY (KT)—information charged with enough intelligence to make
it relevant and useful.
- KNOWLEDGE
TECHNOLOGY adds a layer of
intelligence to filter appropriate information and deliver it when it is
needed.
- KT changes the
traditional flow of information from an individual GOING to the
database to the data COMING to the individual.
- 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.
- With technology
as the key to growth, the new economy is based on brains, not brawn.
- THE ROAD TO
KNOWLEDGE: THE INTERNET, INTRANETS, EXTRANETS, AND VIRTUAL PRIVATE NETWORKS
- Knowledge, more
than physical assets, is now the key to successful competition.
- Knowledge has
become one of the more important factors of production.
- Business is
realizing that it needs to manage knowledge like any other asset.
- This is leading
to new technologies that support contact among staff, suppliers, and
customers.
- INTERNETS AND
INTRANETS
- The INTERNET
is a network of computer networks.
- An
INTRANET is a company-wide network
closed to public access, which uses Internet-type technology.
- Some companies
use intranets only to publish information for employees.
- Others create
interactive intranets, allowing employees to input information.
- Intranets are the
fastest-growing segments of the Internet.
- By 2002 between
a half and two-thirds of all businesses will be running intranets.
- To limit
access, companies can construct a "firewall" between themselves and
the outside world to protect corporate information from unauthorized
users.
- An EXTRANET
is a semiprivate network that uses Internet technology so more than one
company can access the same information.
- Since it does use
public lines, hackers can gain unauthorized access.
- One solution is
to use dedicated lines, but this is expensive and limits use to computer
directly to those lines.
- A
VIRTUAL PRIVATE NETWORK (VPN)
is a private data network that creates secure connections, or "tunnels,"
over regular Internet lines.
- Companies no
longer need to own leased lines, but can use the public lines
securely.
-
VPNs
provide secure sharing of public resources for data.
- BROADBAND
TECHNOLOGY.
- As traffic on the
Internet increases, the slower the connection becomes.
- BROADBAND
TECHNOLOGY offers users a
continuous connection to the Internet and allows them to send and
receive data much faster than before.
- Bandwidth
connection is by cable modem, digital subscriber lines (DSL),
satellite, or fixed wireless.
- Data can reach
users more than 50 times faster than traditional 56k modems.
- The traffic on
the Internet has become so intense that early Net users have been
squeezed off the crowded Internet.
- Their answer is
to create another Internet, reserved for research purposes only.
- The new system,
INTERNET 2, will run up to 22,000 times faster and will support
heavy-duty applications.
- 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.
- Users who pay
more can use more bandwidth.
- 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.
- MANAGING
INFORMATION.
- Managers have
always had to sift through mountains of information to find what they
need.
- Today
businesspeople also have voice mail, the Internet, faxes, e-mail, and
instant messaging.
- Businesspeople
refer to this information overload as "INFOGLUT."
- IDENTIFYING
THE FOUR OR FIVE KEY GOALS
helps eliminate unnecessary information.
- USEFULNESS
of management information depends on four characteristics:
- QUALITY:
The information must be accurate and reliable.
- COMPLETENESS:
There must be enough data to make a decision, but not too much to
confuse.
- TIMELINESS:
Information must reach managers quickly.
- RELEVANCE:
Managers must know the questions to ask to get the answers they need.
- Sorting out the
useful information and getting it to the right people is the goal in
solving information overload.
- Software
programs can filter information so that users can get the customized
information they need.
- Known as
"PUSH TECHNOLOGY," they push the information to you, delivering
customized news to your computer.
- MANAGING
KNOWLEDGE.
- KNOWLEDGE
MANAGEMENT means sharing,
organizing, and disseminating information in the simplest and most
relevant way possible for the users of the information.
- Knowledge-mail
sorts through e-mail messages on a company’s system and tracks users’
work.
- Such monitoring
of e-mail is seen by some as an invasion of privacy.
- Some e-mail
systems let you "opt-out."
- Knowledge
management requires organizing information so that it’s clean, accurate,
and consistent.
- THE
ENABLING TECHNOLOGY: HARDWARE
- What is powerful
today in computer hardware may be obsolete by the time you study this.
- Chairman of Intel
Corp., Gordon Moore, has remarked that the capacity of computer chips
doubles every year or so (MOORE’S
LAW.)
- Moore 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.
- This will be a
simple overview of the kind of computer technology available now, at the
start of the new millennium.
- HARDWARE
includes computers, pagers, cellular phones, scanners, printers, fax
machines, and personal digital assistants.
- All-in-one
devices that address all your communications needs are now available.
- Researchers are
working on a human computer interface that combines a
videocamera and computer
- CUTTING THE
CORD: WIRELESS INFORMATION APPLIANCES.
- Internet
appliances, including gaming devices, are designed to connect people to
the Internet and to e-mail.
- The biggest
trends is to wireless handhelds like the Palm
and two-way paging devices.
- People are taking
the Internet with then, and this has changed the way information is
delivered.
- Information must
be available in small bits, using brief lines and small icons.
- COMPUTER
NETWORKS.
- 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.
- In the new
NETWORK COMPUTING SYSTEM (also called CLIENT/SERVER COMPUTING),
the tasks such as searching sales records are handled by personal
computers ("clients").
- The information
needed to complete the tasks is stored in huge databases controlled by
the "server."
- The major
BENEFITS OF NETWORKS are:
- SAVING TIME
AND MONEY.
- NETWORKS
PROVIDE EASY LINKS ACROSS FUNCTIONAL BOUNDARIES.
- ALLOWING
EMPLOYEES TO SEE COMPLETE INFORMATION.
- In
traditional organizations, information is summarized so many times
that it often loses its meaning.
- Networks
catch raw information.
- The text uses the
example of Lotus Development’s information database.
- Networks have
their drawbacks also.
- Maintaining a
system of PCS can be expensive.
- System and
hardware upgrades can be disruptive and expensive.
- Using networks
requires so many organizational changes that some companies are moving
away from computer networks to other options.
- In a new hybrid
of mainframe and network computing, called THIN-CLIENT NETWORKS,
applications and data reside on a server.
- Another option is
to lease specific software applications from an APPLICATION SERVICE
PROVIDER (ASP), who maintains and upgrades the software on its
servers.
- Companies such as
Everdream offer services including a PC,
unlimited Internet access, daily data backup, e-mail, software,
training, and 24/7 support.
- Using thin-client
computing or ASP frees up more time for actually running the business.
-
SOFTWARE.
- Computer software
provide the instructions that enable you to
tell the computer what to do.
- It is important
to find the right SOFTWARE to do the job you have BEFORE
finding the right HARDWARE
- Some programs
are easier to use than others.
- Other programs
are more sophisticated with more functions.
- A business
person must decide what functions he or she wants performed then
choose the appropriate software.
- Most software is
distributed commercially through suppliers.
- There is some
software, called SHAREWARE,
that is copyrighted but distributed to potential customers free
of charge.
- PUBLIC
DOMAIN SOFTWARE is
software that is free for the taking.
- Businesspeople most
frequently use SOFTWARE FOR SIX MAJOR PURPOSES:
- WRITING
(word processors.)
- MANIPULATING
NUMBERS (spreadsheets.)
- FILING AND
RETRIEVING DATA (databases.)
- PRESENTING
INFORMATION VISUALLY
(graphics.)
- COMMUNICATING
(e-mail and instant messaging).
- ACCOUNTING.
- Many functions have
been combined in one kind of program known as INTEGRATED SOFTWARE
or SUITES.
- A new class of
software program, called GROUPWARE, has emerged for use on
networks.
- EFFECTS OF
INFORMATION TECHNOLOGY ON MANAGEMENT.
- HUMAN RESOURCE
ISSUES.
- Technology makes
the work process more efficient as it replaces many bureaucratic
functions.
- One challenge
is to recruit employees who know how to use the new technology.
- Some companies
outsource technical training.
- Computers and the
increased use of the Internet and intranets will allow employees to stay
home and do their work from there (TELECOMMUTING.)
- ADVANTAGES OF
TELECOMMUTING:
- Telecommuting
involves LESS TRAVEL TIME AND COSTS, and often increases
productivity.
- It helps
companies save money by RETAINING VALUABLE EMPLOYEES and by
TEMPTING EXPERIENCED EMPLOYEES OUT OF RETIREMENT.
- Companies can
get by with SMALLER, LESS EXPENSIVE OFFICE SPACE.
- Telecommuting
enables men and women TO STAY HOME WITH SMALL CHILDREN and is a
tremendous BOON FOR DISABLED WORKERS.
- Studies show
that it is more SUCCESSFUL AMONG SELF-STARTERS and those whose work
doesn’t require face-to-face interaction with co-workers.
- DISADVANTAGES
OF TELECOMMUTING:
- Long-distance
work can give workers a DISLOCATED FEELING of being left out of
the office loop.
- Some feel a
LOSS OF ENERGY people can get through social interaction.
- Often people
working from home don’t know WHEN TO TURN THE WORK OFF.
- Some companies
are using telecommuting as a PART-TIME ALTERNATIVE.
- Electronic
communication CAN NEVER REPLACE HUMAN COMMUNICATION for creating
enthusiasm and esprit de corps.
- Efficiency and
productivity can result in people being treated like robots.
- Computers are a
tool, not a replacement for managers and workers.
- Computers
should aid creativity by giving people more freedom and more time.
- The technology
also allows people to work at home, in the car, or any time of the
day.
- The result is
that U.S. workers work longer hours than people in any other nation.
- SECURITY ISSUES.
- HACKERS,
people who break into computer systems for illegal purposes, are an
increasing problem.
- Computer security
today is more complicated than in the past.
- When
information was processed in a mainframe environment, the single data
center was easier to control.
- Today computers
are not only accessible in all areas of the company, but also with
other companies.
- It takes skill
and knowledge to keep systems clean and hackers at bay.
- A VIRUS is
a piece of programming code inserted into other programming to cause
some unexpected and undesirable event.
- Viruses are
spread by downloading infected programming over the Internet or by
sharing an infected diskette.
- Some viruses
are playful, but some can erase data or crash a hard drive.
- Software
programs such as Norton’s AntiVirus
"inoculate" the computer so that it doesn’t catch a known virus.
- It is important
to keep your antivirus protection program up-to-date and practice
"safe computing."
- Existing laws do
not address some Internet issues such as:
- Copyright and
pornography laws.
- Intellectual
property and contract disputes.
- Online sexual
and racial harassment.
- Crooked sales
schemes.
- PRIVACY ISSUES.
- Your e-mail is no
more private than a postcard.
- More than a
fourth of U.S. companies scan employee e-mail regularly and legally.
- Most e-mail
travels over the Internet in unencrypted plain text.
- 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.
- The Internet
allows Web surfers to access all sorts of information about you.
- One of the key
issues is: Isn’t this personal information already public anyway?
- Web sites have
gotten downright nosy by secretly tracking users’ movements online.
- Web surfers
seem willing to swap personal details for free access to online
information.
- Web sites often
send COOKIES to your computer that stay on your hard drive.
- These often
simply contain your name and password.
- Others track
your movements around the Web and then blend that information with
their databases and tailor the ads you receive accordingly.
- You need to
decide how much information about yourself you are willing to give
away.
- STABILITY
ISSUES.
- Instability in
technology also has a significant impact on business.
- The text uses the
example of Hershey and its Halloween candy delivery.
-
The blame for such problems is a
combination of computer error, human error, malfunctioning software, and
overly complex systems.
- TECHNOLOGY AND
YOU.
- It may be
OCCUPATIONAL SUICIDE TO BE COMPUTER ILLITERATE since most workers come
in contact with computers to some degree.
- By 2006 half of
all American workers will be employed in information technology
positions.
- In 2000 there was
a shortage of almost 850,000 skilled information technology workers.
- Researchers who
have studied computerphobia (fear of
computers) found that 55% of Americans have the disorder.
- Gender, age, and
income level don’t appear to lead to computerphobia—the
key variable is exposure.
- 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.