chapter 14

Impact of IT on Business

IT has revolutionized communication, operations, and global collaboration, becoming the core infrastructure of modern businesses.

From Paper to Digital

Businesses evolved from using paper, fax, and phones to utilizing smartphones, smartwatches, and digital systems.

Remote Access

Enabled by mobile devices and Wi-Fi, remote access eliminates geographic barriers, exemplified during pandemic-induced remote work.

Lean Operations

Real-time updates streamline tasks and reduce labor costs in business operations.

Data Warehousing

The process of collecting, storing, and retrieving data for analysis and decision-making, exemplified by Kroger’s loyalty cards.

Machine Learning (ML)

A core element of AI that allows machines to learn and improve from data over time.

Natural Language Processing (NLP)

A technology that enables machines to understand and communicate human language, often seen in chatbots.

Cyber Threats

Risks posed by hackers, DoS attacks, and unsecured networks, increasing vulnerability in IT systems.

Ransomware

A type of malware that holds data hostage; notable examples include attacks on Dole and Yum! Brands in 2023.

Firewall

A security measure that blocks unauthorized access to networks and systems.

AI-Specific Ethical Concerns

Issues related to privacy, bias, transparency, manipulation, accountability, and job losses due to AI implementation.

Data Mining

Analyzing patterns in data, often used for marketing insights, like Amazon's product recommendations.

Identity Theft

Impersonation to gain access to financial benefits, commonly achieved through phishing and spoofed web pages.

Collaboration & Innovation

The ability of global teams to work together on complex problems, such as the Boeing 787 project with NASA.

Mass Customization

The ability to produce personalized products using IT, such as customized Porsche colors and Timbuk2 bags.

Security Measures

Tools and protocols like encryption and antivirus software designed to protect IT systems from threats.

Ethical Issues in IT

Concerns like privacy invasion and employer surveillance that arise alongside technological advancements.