Key Concepts in Information Technology and Ebusiness

Information Age

Period where information drives businesses and economic activities, primarily through technology.

Data

Raw facts with no meaning (e.g., 50, $20).

Information

Processed data with meaning (e.g., 50 items sold for $20 each).

Knowledge

Applying information to make decisions (e.g., Based on sales, we need more stock).

Threat of Substitute Products

Risk that customers switch to alternative products/services.

Threat of New Entrants

Risk of new competitors entering the market.

Supplier Power

Ability of suppliers to drive up prices.

Buyer Power

Ability of customers to drive prices down.

Rivalry Among Existing Competitors

Competition among existing companies.

Cost Leadership

Offering the lowest prices (Walmart).

Differentiation

Offering unique products/services (Apple).

Focused Strategy

Targeting a niche market (Rolex watches).

Operational Systems

Handle day-to-day business processes (Point of Sale systems).

Managerial Systems

Support middle management in decision-making (Reports, summaries).

Strategic Systems

Help senior executives make strategic decisions (Forecasting software).

Artificial Intelligence (AI)

Simulation of human intelligence in machines.

Expert Systems

Imitate human decision-making.

Neural Networks

Pattern recognition (e.g., Fraud detection).

Robotics

Perform human tasks (e.g., Warehouse robots).

Disruptive Technology

Creates a new market, replacing an old one (Streaming services like Netflix).

Sustaining Technology

Improves existing products without disrupting the market (New iPhone models).

Impact of Internet

Disrupted traditional businesses like newspapers, cable, and retail.

Web 1.0

Static web pages, read-only content, limited interaction.

Ebusiness Advantages

Global reach, Reduced costs, Improved customer service.

Email

Communication through digital messages.

Clickstream Data

Tracks website visitors' browsing patterns.

Asynchronous Communication

Communication that does not require real-time interaction (email, forum).

B2B (Business to Business)

Selling products between businesses.

B2C (Business to Consumer)

Selling products to individual customers.

C2C (Consumer to Consumer)

Individuals sell to other individuals (eBay).

C2B (Consumer to Business)

Individuals offer products to businesses (freelance).

Ebusiness Challenges

Security issues, Privacy concerns, Lack of personal interaction.

Web 2.0

User-generated content, collaboration, social media.

Key Characteristics of Web 2.0

Collaboration, Sharing, Dynamic content.

Social Media

Platforms for user interaction (Facebook, Twitter).

Blogs

Web logs for personal or professional content.

Wikis

Collaborative websites where users contribute (Wikipedia).

Privacy

Protection of personal information.

Intellectual Property

Ownership of ideas and creative work.

Pirated Software

Unauthorized copies of software.

Hackers

People who gain unauthorized access to systems.

Virus

Malicious software that can spread and damage systems.

Authentication

Verifying identity (password, fingerprint).

Authorization

Granting access to resources based on identity.

Public Key Encryption

Secure communication by encrypting data.

Basic Operation of Public Key Encryption

Uses a public key to encrypt and a private key to decrypt.

Input Devices

Devices that input data (keyboard, mouse).

Output Devices

Devices that display/output data (monitor, printer).

Storage Devices

Devices for data storage (hard drive, USB).

Processing Devices

Devices that process data (CPU).

Moore's Law

The number of transistors on a chip doubles every 18 months, decreasing the cost and increasing performance.

Primary Storage

Temporary storage, fast access (RAM).

Secondary Storage

Long-term storage (hard drive, SSD).

System Software

Manages hardware (operating systems).

Application Software

Performs specific tasks (Microsoft Word, Excel).

Utility Software

Maintains and protects the system (antivirus, firewall).

Antivirus

Software to protect against malware.

Artificial

Relating to AI (Artificial Intelligence).

Asynchronous

Communication not in real-time.

Clickstream

Data tracking user website activity.

Communication

Sharing information.

Cookie

Data stored by websites in your browser.

Decision

Process of making choices.

Disruptive

Technology that alters markets.

Downtime

Period when systems are unavailable.

Email

Electronic mail communication.

Encryption

Securing data by converting it to code.

Ethics

Principles guiding behavior.

Expert

A person with specialized knowledge.

Firewall

Security system to protect networks.

Gigahertz

Measurement of processing speed.

Hoaxes

False alarms or scams.

Human

Relating to people.

Information

Processed data with meaning.

Knowledge

Applied information for decision-making.

Managerial

Related to middle management.

Multitasking

Performing multiple tasks simultaneously.

Niche

Small, specialized market.

Open Source

Software with freely available code.

Operational

Related to day-to-day operations.

People

Individuals who use technology.

Pirated

Stolen or illegally copied.

Profitability

Earning more than expenses.

Property

Something owned.

Random Access Memory (RAM)

Temporary storage for quick access.

Security

Protecting data and systems.

Social Media

Platforms for online interaction.

Software

Programs used by a computer.

Spam

Unwanted emails or messages.

Spyware

Software that secretly gathers data.

Strategic

High-level planning for future goals.

Supply Chain

Network to produce/deliver products.

Transaction

Business exchange or operation.

Virus

Malicious software that spreads.

Viruses

Plural form of virus.

Worm

Malware that replicates itself.