Managing Information Technology

Vocabulary practice flashcards covering key concepts of information technology, managerial information systems, e-business, and digital trends from Chapter 17.

Information Society

A society in which the creation, distribution, use, integration, and manipulation of information is a significant economic, political, and cultural activity, with information serving as the key economic resource.

Knowledge Economy

The economic counterpart of the information society, defined as an economic system of production and consumption based on intellectual capital where wealth is created through the economic exploitation of understanding.

Digital Citizens

Individuals who have the means and capability to partake in an information society and knowledge economy.

Data

Raw, unorganised facts (such as alphabets, numbers, or symbols) that represent conditions, ideas, or objects, and need to be processed to become useful.

Information

Data that has been processed, organised, structured, or presented within a specific context to give it meaning and relevance, resulting in increased understanding and decreased uncertainty.

Information System (IS)

A combination of information technology and human activities designed to collect, store, process, and distribute data to support management tasks, operational activities, and decision-making.

Information Technology (IT)

All hardware, software, and communication technology required by a business to support and control business processes and enable management decisions to achieve a competitive advantage.

Cloud Computing

The on-demand delivery of computing resources, applications, and storage via the internet under pay-as-you-go pricing.

Four Level Pyramid Model of Information Systems

A hierarchical framework mapping information systems to organisational levels: Transaction Processing Systems for workers, Management Information Systems for middle managers, Decision Support Systems for senior managers, and Executive Information Systems for executives.

Transaction Processing System (TPS)

An operational-level system at the base of the information systems pyramid operated directly by shop floor or frontline staff to process, track, and store basic routine transactions such as sales, payroll, and stock control.

Management Information System (MIS)

A management-level system used by middle managers to support tactical, short-to-medium-term decision-making by evaluating structured reports and comparing current performance against previous outputs.

Decision Support System (DSS)

An interactive, knowledge-based system used by senior managers that analyses existing structured information, provides 'what-if' simulations, and models potential outcomes to help solve semi-structured and ill-structured problems.

Executive Information System (EIS)

A highly tailored, strategic-level information system at the top of the pyramid that draws on internal and external sources to assist executives in analysing environmental trends and formulating long-term strategy.

Intranet

A private group of connected computer networks owned by a business and restricted exclusively to internal business interaction and employee use.

Extranet

A collaborative network connecting two or more intranets, providing a secure external gateway for approved business partners, suppliers, and customers to access designated internal sections.

Internet

A global collection of interconnected computer networks using TCP/IP communication protocols and the World Wide Web to transmit data and display web pages to anyone online.

Firewall

A security combination of hardware and software designed to examine all incoming and outgoing network messages and block those that do not conform to predetermined security criteria.

Enterprise Resource Planning (ERP) System

A comprehensive software system that integrates the common core functional modules of a large enterprise into a single interconnected system.

Customer Relationship Management (CRM) System

An integrated customer-facing information system designed to manage interactions across the entire customer lifecycle, including initial enquiry, order placement, and after-sales support.

E-business

An overarching concept encompassing all business activities that leverage telecommunications and internet technology to improve operational effectiveness, efficiency, productivity, and profitability.

E-commerce

A subset of e-business focused specifically on the online buying and selling of goods and services.

Business-to-Business (B2B)

An e-business model in which electronic transactions and procurement take place directly between two or more independent business firms.

Business-to-Consumer (B2C)

An e-business model where an enterprise conducts electronic commercial transactions directly with individual end consumers.

Consumer-to-Consumer (C2C)

An online transaction environment where individual consumers sell, auction, or trade goods, services, or expertise directly to other individual consumers.

Intra-organisational E-business

Electronic business activities and data transfers conducted internally between an enterprise and its employees, or among distinct departments and subsidiaries within the same enterprise.

Government-to-Consumer (G2C)

An electronic government model enabling governmental bodies to provide public services, election verification, information, and registration forms to citizens electronically.

Mobile Commerce (M-Commerce)

The conduction of commercial transactions and interactive business communications through wireless handheld devices such as smartphones and personal digital assistants (PDAs).

Disintermediation

The elimination of traditional supply chain intermediaries (such as agents, brokers, and sales representatives) by allowing consumers to purchase goods and services directly from a producer online.

Cyber Intermediaries

New internet-based intermediaries—such as online payment processors, auction sites, and storefront hosting platforms—that facilitate transactions and collect transaction processing fees.

Web Portal

A website serving as a primary gateway to the internet, providing customized access, directories, search tools, and links to various resources.

Sticky Feature

An engaging element on a website (such as chat rooms or free email) designed to retain a visitor's attention and extend the duration of their visit.

Web 2.0

Internet technologies and protocols that facilitate bi-directional communication, allowing users to collaborate, interact, and publish user-generated content (UGC).

Web 3.0

An advanced web paradigm characterized by intuitive functionality and systems capable of anticipating users' immediate needs based on behavioral data and context.

Search Engine Marketing (SEM)

The practice of paying for promotional advertisements on search engine results pages that are matched closely to keywords queried by searchers.

Search Engine Optimization (SEO)

The deliberate design and formatting of website content, HTML markers, and architecture to maximize relevance and organic ranking on search engine result pages.

Electronic Communications and Transactions (ECT) Act (Act No. 25 of 2002)

South African legislation that provides legal recognition to data messages, regulates online transactions, protects consumers, and aims to advance e-business for socio-economic development.

Spaza Shop

A small, informal retail trade enterprise in South Africa typically operated from a home or shack by township entrepreneurs to supply basic consumer goods.

Infopreneurs

Entrepreneurs operating within an ICT-enabled rural distribution network to deliver electronic services and support to local communities and informal retailers.