ZP

chapter 14

1. The Pervasive and Transformative Impact of IT on Business

📌 Key Concept:

IT has become the core infrastructure of modern businesses, revolutionizing communication, operations, and global collaboration.

🔹 Major Transformations:

  • From Paper to Digital: Businesses evolved from paper, fax, and phones to using smartphones, smartwatches, and digital systems.

  • Everywhere & Rapid: Even low-tech industries (like nail salons) rely on IT for operations.

🔹 Business Benefits:

  • Remote Access: Mobile devices and Wi-Fi eliminate geographic barriers (e.g., pandemic-induced remote work).

  • Efficient Delivery Systems: IT coordinates activities across distances (e.g., Amazon Prime).

  • Lean Operations: Real-time updates streamline tasks, reducing labor costs.

  • Collaboration & Innovation: Global teamwork (e.g., Boeing 787 with NASA) solves complex problems.

  • Global Scale Projects: Example: Lockheed Martin’s Joint Strike Fighter project (1,500 firms).

  • Mass Customization: IT enables personalized products (e.g., Porsche colors, Timbuk2 bags).

  • New Businesses: Digital tools allow people to build empires (e.g., The Pioneer Woman).

  • Better Lives: From LinkedIn jobs to pill-sized cameras in healthcare, IT boosts convenience and wellness.

2. IT Resources and Information Systems

📌 Key Concept:

Businesses use IT resources and specialized information systems (IS) to manage, analyze, and act on data.

🔹 Core IT Resources:

  • Hardware/Software

  • Networks: LANs, WANs, Wi-Fi, LTE

  • Internet & Communication Tools: Intranets, conferencing, VSAT

  • Cloud Computing: External storage and computing power; flexible for remote work

🔹 Wearables & Implants:

  • Examples: Fitbit, Apple Watch, implantable chips for payments

  • Ethical concerns: Privacy and security

🔹 Information Systems (IS) Functions:

  • Convert data into usable information

  • Example: Walmart’s centralized IS for tracking SKUs and cutting costs

🔹 Data Tools:

  • Data Warehousing: Collect/store/retrieve data (e.g., Kroger’s loyalty cards)

  • Data Mining: Analyze patterns for marketing (e.g., Amazon recommendations)

🔹 Types of Information Systems:

  • Knowledge Management: For professionals like engineers

  • CAD/CAM: Product and tool design in manufacturing

  • ERP: Coordinates all departments in real time

  • MIS: Helps with reporting, planning, budgeting

  • DSS: Simulates business models for decision-making

3. The Rise and Impact of Artificial Intelligence (AI) and Machine Learning (ML)

📌 Key Concept:

AI and ML allow machines to simulate human intelligence and learn from data to enhance business functions.

🔹 Core Elements of AI:

  • Machine Learning (ML): Learns and improves from data

  • Neural Networks: Mimic brain-like connections

  • Natural Language Processing (NLP): Enables machine communication (e.g., chatbots)

  • Computer Vision: Allows machines to interpret images (e.g., automatic braking)

  • Robotics: Combines AI with physical machinery

🔹 Applications:

  • Healthcare: Diagnosis, 3D models, drug discovery

  • Virtual Assistants: Siri, Alexa

  • Finance: Fraud detection, stock trading

  • Autonomous Vehicles, Gaming, Smart Manufacturing

🔹 Predictive Analytics:

  • Uses historical data to predict outcomes (e.g., Netflix and Amazon suggestions)

🔹 ChatGPT Example:

  • A language model trained to generate humanlike text

  • Strengths: Context, coherence

  • Limitations: Can give incomplete or incorrect info

4. IT Risks and Threats

📌 Key Concept:

With the rise of IT comes increased vulnerability to cyber threats, attacks, and ethical concerns.

🔹 Common Risks:

  • Privacy Invasion: On social media, smartphones

  • Data Leaks: Accidental or malicious by insiders

🔹 Cyber Threats:

  • Hackers: Steal, tamper, or hold data for ransom

  • DoS Attacks: Overwhelm websites/networks

  • Unsecured Wi-Fi: Open networks invite unauthorized access

  • Piracy & Secrets Theft: Cost billions in losses annually

🔹 Ransomware Examples (2023):

  • Dole, Yum! Brands, City of Oakland, Royal Mail

🔹 Identity Theft:

  • Impersonation to access financial benefits

  • Methods: Phishing, spoofed web pages

🔹 Malware Types:

  • Virus: Needs user action to spread

  • Worm: Spreads automatically (e.g., Blaster Worm)

  • Trojan Horse: Disguised as legitimate

  • Spyware: Steals info via fake software

  • Spam: Costly, disruptive mass emails

5. IT Protection Measures and Ethical Concerns

📌 Key Concept:

Protection tools and ethical standards are critical but lag behind the pace of IT innovation.

🔹 Security Measures:

  • Firewalls: Block unauthorized access

  • Antivirus Software

  • Encryption: Secures emails/messages

  • Anti-Spam/Spyware Tools

  • Identity Protection: FACTA compliance, monitoring services (e.g., LifeLock)

🔹 Legal & Ethical Issues:

  • Privacy Invasion: Carpenter v. U.S. (privacy in digital communication)

  • Cyberbullying: Leading to harm and tragedy

  • Employer Surveillance: Monitored use of company systems

  • Gov’t Data Pools: Prescription monitoring vs. privacy

  • Intellectual Property: Plagiarism and piracy

🔹 AI-Specific Ethical Concerns:

  • Privacy: AI collects massive user data

  • Bias: ML can perpetuate discrimination

  • Transparency: Hard to understand algorithmic decisions

  • Manipulation: Chatbots may deceive users

  • Accountability: Who’s responsible when AI causes harm?

  • Job Losses: Fear of automation worsening inequality

  • Need for Oversight: Urgent calls for governance and industry-wide standards