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Chapter 15: Managing InformationChapter 15: Managing InformationAnd TechnologyAnd Technology

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Chapter ObjectivesChapter Objectives

1. Distinguish between data and information.

2. Define information system (IS) and identify the tasks of the information systems manager.

3. Explain how IS managers capture, store, and analyze data.

4. Discuss ways in which an IS can be designed to meet the needs of individuals at various organizational levels.

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Chapter ObjectivesChapter Objectives

5. Describe the main systems for sharing information through networked computers.

6. Define cloud computing and identify its advantages and disadvantages.

7. Explain how four networking technologies—the Internet, the World Wide Web, intranets, and extranets—make data communication possible.

8. Identify and discuss challenges faced by companies engaged in e-commerce.

9. Identify career opportunities in information management.

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Data versus Data versus InformationInformation

“…data: unprocessed facts.”

“…information: data that have been processed, or turned into some

useful form.”

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Information SystemInformation System

“…the combination of technologies, procedures, and people who collect

and distribute the information needed to make decisions and

coordinate and control company-wide activities.”

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IS ManagementIS Management Chief Information Officer

Chief Technology Officer

Information Managers• Determine information needs

• Collect data

• Convert data into information

• Direct information

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Differing Information Differing Information NeedsNeeds

Top Managers• Planning• Setting Objectives• Strategic Decisions

Middle Managers• Allocate Resources• Oversee Activities

First-Line Managers• Supervise Employees• Oversee Daily Operations• Coordinate Activities

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Information Needs and FlowsInformation Needs and Flows

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Need To Share Need To Share InformationInformation

Integrated IT

Enterprise Resource Planning System

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ERP SystemERP System

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Data and DatabasesData and Databases

Databases

Data Warehouse

Data Mining

•Customer Behavior

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Data Mining ProcessData Mining Process

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Types OfTypes OfInformation SystemsInformation Systems

Operations Support•Transaction Processing•Process Control•Design & Production

Management Support•Management information•Decision support•Executive information

Artificial Intelligence•Expert•Face-Recognition

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Transaction Processing Transaction Processing SystemSystem

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Design And Production Design And Production SystemsSystems

Computer-Aided Design

Computer-Aided Manufacturing

Computer-Integrated Manufacturing

Flexible Manufacturing

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Decision Support Decision Support SystemsSystems

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ExecutiveExecutiveInformation SystemsInformation Systems

“…provides ready access to strategic information that’s customized to … and

presented in a convenient format..”

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Artificial IntelligenceArtificial Intelligence

Artificial Intelligence Applications•Expert Systems•Face-Recognition Technology

The science of developing computer systems that can mimic human behavior

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Computer Computer NetworksNetworks

Applications Software

Local-Area Network

Wide-Area Network

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Local Area Local Area NetworkNetwork

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Cloud ComputingCloud Computing

“… performing computer tasks using services provided over the Internet”

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Application of Cloud Application of Cloud ComputingComputing

• Companies can contract for various cloud computing services. These include:– Software-as-a Service (SssA)

• Gives companies access to a large assortment of software packages

– Infrastructure-as-a-Service (IaaS)• Provides users with hardware, including servers,

network equipment and disk space

– Platform-as-a-Service (PaaS)• Provide services that enable users to develop

customized web applications

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Advantages of Cloud Advantages of Cloud ComputingComputing  

1. Cost savings2. Speed of Delivery 3. Scalable4. Employees Can Be Mobile 5. Information Technology Staff

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Disadvantages of Cloud Disadvantages of Cloud ComputingComputing

1. Disruption in Internet Service2. Security 3. Service Provider System Crash

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Data Communication NetworksData Communication Networks

Internet• Internet Service Providers• World Wide Web/Browsers

Intranets Extranets

“…transmit digital data… from one computer to another using...wired and wireless

communication channels.”

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Technology Of The WebTechnology Of The Web

Web Pages Web Sites Webmaster Home Page Uniform Resource Locator Web Server Search Engine

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Intranets/Intranets/ExtranetsExtranets

Intranet • “…a private network using… technologies…

available only to employees....”

Firewall • Software that controls access to an Intranet

Extranet • “…intranet… partially available to certain

parties outside the organization.”

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ExtranetExtranet

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E-CommerceE-Commerce

“…conducting business over the Internet...”

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Business UsesBusiness UsesOf The InternetOf The Internet

Presenting Information

Selling Products

Distributing Digital Products

Acquiring Goods/Services

Virtual Company

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Electronic Data Interchange Electronic Data Interchange & Value-Added& Value-Added

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Security Issues InSecurity Issues InElectronic CommunicationElectronic Communication

Data Security

Malicious Programs

Spoofing

Revenue Theft

Risks to Customers

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Malicious Malicious ProgramsPrograms

Viruses

Worms

Trojan Horses

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Types Of Revenue TheftTypes Of Revenue Theft

Denial of Service

Piracy

Preventing Unwanted Preventing Unwanted IntrudersIntruders

• Firewalls:– Act as a gatekeeper– Inspects and screens all incoming

messages to prevent unwanted intruders

– Regulates outgoing traffic to preventing employees from sending out confidential data

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Risks To CustomersRisks To Customers

Credit-Card Theft

Password Theft

Invasion of Privacy

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How Cookies WorkHow Cookies Work

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Shoring Up SecurityShoring Up SecurityAnd Building TrustAnd Building Trust

Encryption • “…process of encoding data so...only individuals (or computers) armed with a

secret code (or key) can decode it.”

Certificate Authority • “…a third party… verifies the identity of the

responding computer and sends you a digital certificate stating that it trusts the

site.”

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Careers InCareers InInformation ManagementInformation Management

• Requirement for entry-level IS jobs: – Bachelor’s degree with information

systems major

– Can supplement with minors in computer science or a business area

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Careers InCareers InInformation ManagementInformation Management

•Management path or Technical path

• Senior Officers: Chief Information Officer and Chief Technology Officer