BUSN Ch.16 Marketing and Business Integration and Strategic Management

LEARNING OBJECTIVES After studying this chapter, you will be able to: 16-1Explain the basic elements of computer technology—including hardware, software, and networks—and describe key trends in each area 16-2Discuss the reasons for the increasing popularity of cloud computing 16-3Describe how data become information and how decision support systems can provide high-quality information that helps managers make better decisions 16-4Explain how Internet-based technologies have changed business-to-consumer and business-to-business commerce 16-5Describe the problems posed by the rapid changes in Internet-based technologies, and explain ways to address these problems

Hardware

The physical tools and equipment used to collect, input, store, organize, and process data and to distribute information.

software

Programs that provide instructions to a computer so that it can perform a desired task.

system software

Software that performs the critical functions necessary to operate the computer at the most basic level.

applications software

Software that helps a user perform a desired task.

Internet

The world's largest computer network; essentially a network of computer networks all operating under a common set of rules that allow them to communicate with each other.

broadband Internet connection

An Internet connection that is capable of transmitting large amounts of information very quickly.

Internet2 (I2)

A new high-tech Internet with access limited to a consortium of member organizations (and other organizations these members sponsor). I2 utilizes technologies that give it a speed and capacity far exceeding the current Internet.

intranet

A private network that has the look and feel of the Internet and is navigated using a web browser, but which limits access to a single firm's employees (or a single organization's members).

extranet

An intranet that allows limited access to a selected group of stakeholders, such as suppliers or customers.

cloud computing

The use of Internet-based storage capacity, processing power, and computer applications to supplement or replace internally owned information technology resources.

data

Raw, unprocessed facts and figures.

information

Data that have been processed in a way that make them meaningful to their user.

database

A file consisting of related data organized according to a logical system and stored on a hard drive or some other computer-accessible media.

Accurate

Free of errors and biases.

Relevant

Focus on issues that are important to decision makers.

Timely

Available in time to make a difference.

Understandable

Must help the user grasp its meaning.

Secure

Confidential information must be secure from hackers and competitors.

decision support system (DSS)

A system that gives managers access to large amounts of data and the processing power to convert these data into high-quality information, thus improving the decision-making process.

business intelligence system

A sophisticated form of decision support system that helps decision makers discover information that was previously hidden.

data warehouse

A large, organization-wide database that stores data in a centralized location.

data mining

The use of sophisticated statistical and mathematical techniques to analyze vast amounts of data to discover hidden patterns and relationships, thus creating valuable information.

expert system (ES)

A decision support system that helps managers make better decisions in an area where they lack expertise.

e-commerce

The marketing, buying, selling, and servicing of products over a network (usually the Internet).

business-to-consumer (B2C) e-commerce

E-commerce in which businesses and final consumers interact.

business-to-business (B2B) e-commerce

E-commerce in markets where businesses buy from and sell to other businesses.

Web 2.0

Websites that incorporate interactive and collaborative features to create a richer, more interesting, and more useful experience for their users.

viral marketing

An Internet marketing strategy that tries to involve customers and others not employed by the seller in activities that help promote the product.

cybermediary

An Internet-based firm that specializes in the secure electronic transfer of funds.

electronic bill presentment and payment

A method of bill payment that makes it easy for the customer to make a payment, often by simply clicking on a payment option contained in an email.

e-marketplace

A specialized Internet site where buyers and sellers engaged in business-to-business e-commerce can communicate and conduct business.

radio frequency identification (RFID)

A technology that stores information on small microchips that can transmit the information when they are within range of a special reader.

malware

A general term for malicious software, such as Spyware, computer viruses, and worms.

spyware

Software that is installed on a computer without the user's knowledge or permission to track the user's behavior.

computer virus

Computer software that can be spread from one computer to another without the knowledge or permission of the computer users by attaching itself to emails or other files.

worm

Malicious computer software that, unlike viruses, can spread on its own without being attached to other files.

spam

Unsolicited email advertisements usually sent to very large numbers of recipients, many of whom may have no interest in the message.

phishing

A scam in which official-looking emails are sent to individuals in an attempt to get them to divulge private information such as passwords, usernames, and account numbers.

pharming

A scam that seeks to steal identities by routing Internet traffic to fake websites.

hacker

A skilled computer user who uses his or her expertise to gain unauthorized access to the computer (or computer system) of others, sometimes with malicious intent.

firewall

Software and/or hardware designed to prevent unwanted access to a computer or computer system.

intellectual property

Property that is the result of creative or intellectual effort, such as books, musical works, inventions, and computer software.