ch.13 HO5

Learning Objectives 13-1

  • Outline the changing role of business technology.

Learning Objectives 13-2

  • List the types of business information, identify the characteristics of useful information, and discuss how data is stored and analyzed.

Learning Objectives 13-3

  • Compare the scope of the Internet, intranets, extranets, and virtual private networks, and explain how broadband technology and 5G enabled the evolution to Web 2.0 and 3.0.

Learning Objectives 13-4

  • Explain the differences between LAN (Local Area Network) and WAN (Wide Area Network) and discuss the benefits and drawbacks of cloud computing.

Learning Objectives 13-5

  • Evaluate the human resource, security, privacy, and stability issues affected by information technology.

Getting to Know Jim Kavanaugh

  • Jim Kavanaugh, CEO of World Wide Technology:

    • Importance of teamwork and competitiveness in technology.

    • Background:

    • Upbringing in St. Louis.

    • Achievements in school and sports.

    • Received a business degree.

    • Competed in Olympic and Pan American soccer teams; played professional soccer.

    • Business Initiatives:

    • Started an electronics distribution firm with a partner.

    • Developed packaging for software and hardware solutions.

    • 2020 Revenue: Exceeded $13 billion due to technology demand.

THE ROLE OF INFORMATION TECHNOLOGY 1: Evolution from Data Processing to Business Intelligence

  • Data Processing (DP):

    • Terminology used in the 1970s, aimed at improving financial information flow.

    • Data: Raw, unorganized facts and figures.

    • Information: Processed and organized data for managerial use.

    • Database: Electronic storage of information.

THE ROLE OF INFORMATION TECHNOLOGY 2: The Development of Information Systems

  • Information Systems (IS):

    • Technologies aiding business operations (e.g., ATMs, voicemail).

    • Evolution to Information Technology (IT) in late 1980s:

    • Focus on effective storage, retrieval, and transmission of information.

THE ROLE OF INFORMATION TECHNOLOGY 3: Influence of the World Wide Web

  • WWWeb Introduction: 1990s, it transformed interpersonal interactions.

  • Bluetooth Technology: Enabled wireless communication, improving convenience.

THE ROLE OF INFORMATION TECHNOLOGY 4: Business Intelligence (BI)

  • BI Components:

    • Techniques like data mining, online analytical processing, querying, reporting.

    • Purpose: Assist businesspeople in handling organizational challenges and seizing opportunities.

    • Importance of knowledge sharing for adaptation to change.

FURTHER EVOLUTION OF BI

  • Predictions for BI Development:

    • Advanced tools will become standard.

    • Mobile BI will dominate.

    • Social media will enhance team collaboration.

    • Increased budgets for BI initiatives.

    • Frequent technology upgrades.

HOW INFORMATION TECHNOLOGY CHANGES BUSINESS

  • Customer Service: Availability anytime and anywhere.

  • Business Operations:

    • Technological advancements diminish location restrictions.

    • Breakdown of corporate barriers for information sharing among departments.

    • Reduction in cycle times, defects, and waste.

    • Growth of virtual offices through telecommunications.

    • Accelerated product development through direct feedback loops.

    • Enhanced customer interactions via real-time database access.

    • New market formation facilitated by online access.

TESTPREP 1: Conceptual Questions

  1. Discuss the evolution of information technology from data processing.

  2. Analyze the impact of information technology on business operations.

TOP U.S. CITIES BY HIGH-TECH EMPLOYMENT

  1. San Jose, California

  2. Seattle, Washington

  3. Washington, DC

  4. Boulder, Colorado

  5. Huntsville, Alabama

  6. San Francisco, California

  7. Austin, Texas

  8. Raleigh, North Carolina

  9. Provo, Utah

  10. Colorado Springs, Colorado

TYPES OF INFORMATION 1: Information Flow in Organizations

  • Information Types:

    • Business Process Information

    • Physical-world Observations

    • Biological Data

    • Public Data

    • Data Indicating Personal Preferences or Intentions

BIOMETRIC TECHNOLOGY

  • Definition: Technology like fingerprint sensors and retinal scanners for accurate identification.

  • Applications: Hospitals use fingerprint scanning for patient identification; retailers track customer's product interests.

CHARACTERISTICS OF USEFUL INFORMATION

  • Quality: Accuracy and reliability of the information.

  • Completeness: Inclusion of all necessary details.

  • Timeliness: Relevance in a timely manner.

  • Relevance: Applicability to current business context.

TYPES OF INFORMATION 3: Big Data and Data Analytics

  • Data Collection: All actions generate data.

  • Data Analytics:

    • Data Mining: Searching for hidden patterns and relationships.

    • Importance for management decisions while being mindful of potential human biases.

EXAMPLES OF SECTORS BENEFITING FROM BIG DATA

  • E-commerce: Analyze shopping cart data to adjust prices for potential buyers.

  • Retail: Track purchase history for targeted promotions.

  • Real Estate: Demographic data for targeted marketing.

  • Law Enforcement: Utilizing video data for security measures.

  • Health Care: Using sensor data to monitor health conditions like Parkinson's disease.

USE OF SOCIAL MEDIA INFORMATION

  • Businesses utilize social media as a dynamic source of consumer data for strategy development.

TESTPREP 2: Conceptual Questions

  1. Identify the types of information available to businesses.

  2. Discuss the characteristics of useful information.

  3. Explain data mining and its applications in business.

THE HEART OF KNOWLEDGE MANAGEMENT: THE INTERNET 1

  • Intranet:

    • A private network secured with firewalls.

  • Extranet:

    • Expands intranets to include other companies.

    • Utilization in electronic data interchange (EDI) for transactions.

THE HEART OF KNOWLEDGE MANAGEMENT: THE INTERNET 2

  • Virtual Private Network (VPN):

    • Enhances security using encryption over public WiFi.

    • Important in educational institutions for remote access.

BROADBAND TECHNOLOGY AND 5G

  • Broadband Technology: Faster services than legacy dial-up connections.

  • 5G Technology:

    • Potential speeds 100 times that of 4G.

    • Expands access and competitiveness.

    • Debates on government regulations concerning airwave assignments.

ARTIFICIAL INTELLIGENCE PLUS 5G

  • Narrow AI: Task-specific AI applications.

  • General AI: Capable of autonomous learning across tasks.

  • Machine Learning: Integral to AI development facilitated by 5G technology.

NET NEUTRALITY

  • Definition: ISPs should provide equal access to all web content.

  • Ongoing legal and regulatory debates surrounding its enforcement.

IMPLICATIONS OF NET NEUTRALITY

  • Concerns arise about unequal access for different socio-economic classes.

  • Discussions about fair broadband usage fees versus equal access principles.

INTERNET2

  • A dedicated private Internet for research.

  • Supports robust applications like videoconferencing and collaborative research.

WEB 2.0 AND SOCIAL MEDIA

  • Tools facilitating consumer collaboration in product and service development.

  • Use of SEO strategies to improve market reach.

TIPS FOR USING SOCIAL MEDIA

  • Importance of being active on social media as competitors do.

  • Establish authentic two-way communication with customers.

  • Implement customer feedback mechanisms.

MOBILE WEB AND IMMERSIVE TECHNOLOGIES

  • Importance of cross-platform functionality for businesses.

  • Future trends include augmented reality (AR) and virtual reality (VR).

INTERNET OF THINGS (IoT)

  • Definition: Connectivity of everyday objects using sensors and software.

  • Applications: Home automation, health monitoring through wearables, etc.

WEARABLE TECHNOLOGY

  • Example: Owlet Smart Sock for infant health monitoring.

  • Benefits and drawbacks in a personal and social context, encouraging critical discussion.

WEB 3.0: DECOUPLING FROM BIG TECH

  • Aims to solve issues from Web 2.0 regarding data concentration and vulnerabilities.

  • Features decentralized user connections utilizing blockchain technology.

SOCIAL NETWORKUSAGE AMONG AMERICANS

  • Graph highlights the increasing percentage of Americans with online profiles from 2008 to 2022.

THE INTELLIGENCE OF APPS

  • Addressing tracking practices and security implications found in apps.

THE HEART OF KNOWLEDGE MANAGEMENT: THE INTERNET 10

  • Transition of Internet governance from U.S. control to a private entity.

TESTPREP 3: Conceptual Questions

  1. How do networks change information acquisition for employees?

  2. Define the Internet of Things and its significance in modern technology.

NETWORKS AND CLOUD COMPUTING 1

  • LAN (Local Area Network):

    • Covers a small area like a home or office.

  • WAN (Wide Area Network):

    • Extends over large geographic networks, connecting LANs.

CLOUD COMPUTING

  • Changes in data access: Storage in the cloud allows access from various devices.

ADVANTAGES AND DISADVANTAGES OF CLOUD COMPUTING

  • Advantages:

    • Reduced costs, improved security, flexible capacity, lower equipment costs, easier access.

  • Disadvantages:

    • Security concerns, stability issues, loss of data control.

TESTPREP 4: Conceptual Questions

  1. Differentiate between LAN and WAN networks.

  2. Summarize the pros and cons of cloud computing.

EFFECTS OF INFORMATION TECHNOLOGY ON MANAGEMENT 1

  • Human Resource Issues:

    • HR managers need tech-savvy recruits capable of training peers.

    • Telecommuting becomes widespread across sectors.

TELECOMMUTING

  • Represents a significant shift yet requires specific employee characteristics for successful implementation.

WHEN INFORMATION TECHNOLOGY ALTERS THE WORKPLACE 1

  • Managerial Responsibilities:

    • Foster employee commitment rather than command structures.

    • Act as a coach and facilitator in skill development.

    • Empower employee authority in job functioning.

WHEN INFORMATION TECHNOLOGY ALTERS THE WORKPLACE 2

  • Worker Expectations:

    • Initiative-driven action in absence of direct management.

    • Financial and analytical literacy to understand business implications.

SECURITY ISSUES IN IT

  • Threats include:

    • Viruses: Countered by antivirus programs with limited efficiency.

    • Hackers: Especially concerning for smaller organizations lacking resources.

    • Identity Theft and Phishing: Risks associated with accessing unsecured sites.

ADDITIONAL SECURITY ISSUES

  • Ransomware: Malicious software compromising data.

  • Cyberterrorism: National infrastructure risk due to network vulnerabilities.

PRIVACY CONCERNS

  • Recent incidents highlighted in social media and implications for employee monitoring.

  • Risks posed by personal information exposure and tracking technologies.

STABILITY ISSUES IN IT

  • Potential costs incurred due to computer failures affecting company operations.

TECHNOLOGY AND YOU

  • Personal responsibility to stay updated with technology, seek expert help, and validate information sources.