Business Management, 13e

CHAPTER

12
Technology and
Information Management
12.1 Electronic Technology Fundamentals
12.2 Information Management
12.3 Technology and Business Strategy

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Business Management, 13e 2

12.1 Electronic Technology Fundamentals

GOALS
● Describe the role of information in a modern
business.
● Describe how the Internet provides
information to users.
● Describe the basic technology infrastructure
used by businesses.

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Managing in a Technology World

● Knowledge workers
● Information center operated by people who work with
information
● Managers Supervisors, and workers
● Data
● The original facts and figures that businesses generate,
must be collected and processed in a meaningful way
● Information
● Data is turned into information
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Technology Change
● Computing
● Digital computers, Mainframe, PC Software
● Moore’s Law
● A computer bought only one to two years ago will
be obsolete this year.
● Wireless technology
● 4G

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Business Management, 13e 5

Checkpoint
● Describe the difference between data and
information?

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Checkpoint
● Describe the difference between data and
information?
● Data is the original facts and figures that
businesses generate.
● Information is the data that have been processed
in some meaningful way that is useful to decision
makers.

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The Internet Platform

● Internet
● A world wide network of linked computers that
allows users to transfer data and information from
one computer to another anywhere in the world.
● World Wide Web
● Consists of a set of standards that have made the
internet accessible to the average person

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Checkpoint
● Explain the difference between the Internet
and the WWW?

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Checkpoint
● Explain the difference between the Internet
and the WWW?
● The internet consists of a worldwide network of
computers
● The Web allows individuals to use the internet
through browsers and links

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Distributing Information
● Local area network (LAN)
● Use of a network in a single building or complex
● Server
● Stores the data
● Wide area network (WAN)
● Wide geographical area
● Intranets
● Extranets
● Search engine
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Checkpoint
● Describe the difference between a local area
network and wide area network?

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Checkpoint
● Describe the difference between a local area
network and wide area network?
● A local area network consists of linked computers
that serve users in a single building or building
complex
● Wide area networks link computers over larger
geographic regions

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Business Management, 13e 13

12.2 Information Management

GOALS
● Describe the information systems that
managers use to aid in their decision making.
● Discuss the advantages and disadvantages of
Internet-based communication.
● Describe how information systems can
improve business operations.

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Managing Technology
● CIO (Chief Information Officer)
● Organizing information systems
● Database
● Information Systems
● Management information system
● Decision support system
● Executive information system

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Checkpoint
● List the three types of information systems?

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Checkpoint
● List the three types of information systems?
● Management information systems
● Decision support systems
● Executive support systems

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Networked Communication
● Voice over Internet Protocol (VoIP)
● Using the internet for telephone services
● Videophones
● Share application software and collaborate by
using text and graphics tools while sitting at your
computer
● Information security
● Firewall

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Checkpoint
● Describe how businesses can help ensure
online security?

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Checkpoint
● Describe how businesses can help ensure
online security?
● Companies should put in place firewalls
● Ensuring passwords are changed frequently
● Fingerprint scanning
● Voice verification

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Improving Business Operations

● Internet
● Important tool to improve business operations
and control costs
● Company Websites
● Digital dashboards
● Management information system that allows
multiple sources of information to be displayed
graphically on a computer.

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Checkpoint
● Describe three ways technology improves
business efficiency?

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Checkpoint
● Describe three ways technology improves
business efficiency?
● Sales people can check inventory
● Inventory can eb tracked in real-time
● Orders and shipping can be tracked

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12.3 Technology and Business Strategy

GOALS
● Describe technology’s impact on strategy.
● Describe the planning process for developing
an online business.
● Discuss types of problems that employees face
in today’s high-technology organizations.

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Technology’s Impact on Strategy

● Customer data
● Data collected from online behavior are placed into
databases where data mining techniques are used to
create information
● Data mining
● The process of using data in databases to find
relationships between individuals and their behavior or
preferences
● Developing customer profiles
● Product registration
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Technology’s Impact on Strategy

● Social networking
● Allows users to post information about themselves
and share that information with others
● Competitor data
● Companies with publicly traded stock will often
post their annual reports to stockholders and
other information online

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Checkpoint
● Describe the data the businesses collect over
the internet?

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Checkpoint
● Describe the data the businesses collect over
the internet?
● Business trends and competition
● Customers and potential customers

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E-Business Planning
● Business planning for a website
1. Determine the purpose
2. Study the business’s customers, their needs, and their
online experience
3. Plan the design aspects of e-business website
4. To decide how e-business will host its technology

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E-Business Planning
● Web Server, Web-hosting service, Domain
Name
● Technology development
● Order processing
● Electronic Shopping carts
● Website design
● Site promotion
● Open for business
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Checkpoint
● Describe the three main tasks of e-business
planning?

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Checkpoint
● Describe the three main tasks of e-business
planning?
● Business Planning
● Technology development
● Site promotion

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Technology’s Impact on Work and Workers

● Health problems
● Carpal Tunnel Syndrome (CTS)
● Ergonomics
● Changed jobs
● Businesses must be adaptable and employees
must change to meet the needs of employees
● Manager must take advantage of technology
changes to reengineer, or redesign, the workflow
process
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The Future Impact of Technology

● Data mining
● Social shopping
● Biometric security
● Wireless technology
● Cell phone technology

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Checkpoint
● List five future technology changes managers
must consider?

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Checkpoint
● List five future technology changes managers
must consider?
● Data mining
● Social shopping
● Biometric security
● Wireless Technology
● Cell Phone Technology

CHAPTER 12
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