Part VII: Special Topics Introduction to Business 3e 18 Copyright © 2004 South-Western. All rights...

Copyright © 2004 South-Western. All rights reserved.

Part VII: Special TopicsPart VII: Special Topics

Jeff MaduraIntroduction to

Business 3e

Introduction to Business 3e

1818Using Information Using Information Technology Technology

Using Information Using Information Technology Technology

Copyright © 2004 South-Western. All rights reserved. 18–2

Learning GoalsLearning Goals• Describe the key components of a computer and explain their purpose

• Discuss the different ways computers and related technologies contribute to today’s businesses

• Describe some of the key challenges of managing today’s information technologies

• Identify emerging technologies and their implications


Using Information Using Information Technology Technology


What Is a Computer?What Is a Computer?•Device capable of processing and storing vast quantities of information– Hardware– System architecture

Central processing unit (CPU) Primary storage - RAM Secondary storage - hard drive, removable

storage devices Peripherals


A Typical A Typical MicrocomputMicrocomput

erer

Exhibit 18.1


How Much Have Computers How Much Have Computers Improved?Improved?

• The physical changes in computer hardware over the past 50 years have been accompanied by even more dramatic changes in actual performance.

• For key computer components, price-performance ratios have been improving by a factor of 10 every five years.

• To put such improvements in perspective, had automobiles experienced the same rate of price-performance improvement, the $10,000 luxury car in the mid-1960s would now sell for under a nickel (including a liberal allowance for inflation).

Exhibit 18.2


Software ProgramsSoftware Programs•Collection of step-by-step instructions to the CPU that is loaded into primary storage (RAM), then run by the CPU– System (operating system) software

Handles input and output to peripherals, manages the internal memory, and informs the user of the status of application tasks


Software ProgramsSoftware Programs•Application programs

– Word processing, spreadsheets, databases

•Middleware– Allow other application programs to

cooperate with each other

•Utility software– Antivirus and hard drive recovery programs


Uses of ComputersUses of Computers•Computational models– Statistical analysis– Optimization

models– “What-if” analysis– Decision support

systems

•Data processing systems– Accuracy– Speed– Space– Flexibility


Uses of ComputersUses of Computers• Interorganizational systems (IOS)

– Use computers and telecommuncations to move information across boundaries of a firm

•Remote job entry systems– ATMs, airline reservation systems


Uses of ComputersUses of Computers•Electronic data interchange (EDI)

– Reduce ordering costs– Improve processing time and accuracy

•Commercial information services– Provide packaged information services to

subscribers


Managing Today’s Managing Today’s Information TechnologiesInformation Technologies•Managing firm’s information system architecture– Stand-alone system– Mainframe (multi-user) system with terminals– Network system includes file servers and

workstations Local area network (LAN) Wide area network (WAN)


Stand-Alone System Stand-Alone System ArchitectureArchitecture

Exhibit 18.3


Mainframe (Multiuser) Mainframe (Multiuser) System ArchitectureSystem Architecture

Exhibit 18.4


Network System Network System ArchitectureArchitecture

Exhibit 18.5


Managing Today’s Managing Today’s Information TechnologiesInformation Technologies•Acquiring software

– Compatibility– Upgradeability– Support– Customized software


Managing Today’s Managing Today’s Information TechnologiesInformation Technologies•Managing the development of information systems– Enterprise resource planning (ERP) systems– Systems development life cycle (SDLC)– Incremental development techniques

Prototype, alpha and beta testing


Managing Today’s Managing Today’s Information TechnologiesInformation Technologies•Managing the implementation of information systems– Transferring a system to its intended users

often is more difficult than technical development of the system.


Managing Today’s Managing Today’s Information TechnologiesInformation Technologies

• Managing information systems security– Protect against espionage

Use passwords to limit access Systematically change passwords Terminate user rights when person leaves Train personnel in security procedures

– Protect against sabotage Back up system regularly Use proper virus hygiene


Protecting PasswordsProtecting Passwords• Avoid writing a password down.

• Never type a password when someone is looking.

• Never use the same password on two systems.

• Never use meaningful personal information for a password.

• Never use an actual word for a password.

Exhibit 18.6


Emerging TechnologiesEmerging Technologies•Evolution of the worldwide network

– E-Commerce– Infrastructure– Implications

Virtual reality display techniques Video-conferencing

•Truly intelligent systems– Artificial intelligence– Massively parallel machines


Future of the InternetFuture of the Internet• Internet offers unparalleled opportunities for research, public relations, and communications– Concerns remain

Lack of central authority Lack of underlying organization No way to ensure accuracy of information Network performance unpredictable Individual performance depends on

download speed


Future of the InternetFuture of the Internet• Internet offers unparalleled opportunities for research, public relations, and communications– Progress

High-speed internet connections via cable TV wiring

Private providers handling more traffic


Chapter SummaryChapter Summary• Computers are capable of processing and storing vast amounts of information

• Most common uses of computers include computational models, data processing systems, and interorganizational systems

• There are a number of challenges associated with managing today’s information technologies

• Two key developments are the evolution of the worldwide network and emergence of truly intelligent systems

Part VII: Special Topics Introduction to Business 3e 18 Copyright © 2004 South-Western. All rights...

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