Computers in Our World

Chapter 1Computers in Business and Industry

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Introduction

• Computer technology has changed every aspect of business and industry– In the factory– In retail sales and marketing– In banking– In the office

• Computers have also impacted the health and quality of life of individuals

• Technology will change the economy and employment in the future

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Moving Into the Information Age

• Humankind has experienced three major shifts relating to the world of work

• The Agricultural Revolution – Farmers learned to produce crops more efficiently

• The Industrial Revolution– Industries became more productive through

automation, mechanization, and electricity

• The Information Revolution– Businesses use information to provide core services

or produce, process, and provide information as their main product

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Computers In the Factory

• Computer-aided design (CAD)– Uses a computer and special software to assist in

product design

• Computer-aided engineering (CAE)– Uses computers to test product designs

• Computer-aided manufacturing (CAM)– Uses computers to direct machines that produce and

assemble a product

• Computer-integrated manufacturing (CIM)– Combines CAD, CAE, and CAM into one system

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BMW CAD System

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Manufacturing Resource Planning (MRP) Systems• Job-scheduling system

– Helps decide when to initiate production based on supplies and customer demand

• Inventory control system– Tracks and matches current inventory supplies

against anticipated future orders to ensure component availability

• Just-in-time manufacturing– Lets manufacturers acquire components just before

they are needed on the assembly line

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Manufacturing Resource Planning (MRP) Systems, cont.• Warehouse management system (WMS)

– Tracks items received, generates pick lists, labels packages, tracks customer receipt

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Industrial Robots

• Computer-controlled robots perform work that might be hazardous to people

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Computers In Retail Sales and Marketing• Point-of-sale (POS) systems record purchases,

process credit or debit cards, and update inventory– A bar code scanner reads the bar code on a product

with a laser beam– Bar codes consist of the manufacturer and item name– The computer retrieves the price and product

information from the database– The inventory is updated – The output from POS can be used as input into other

inventory, processing and accounting systems

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Bar Code Scanner

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Payment Processing and Credit Authorization• POS connects to a payment-processing service to

initiate credit card authorization• An acquirer approves or denies credit card requests

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Inventory Control Systems

• Obtains information directly from POS• Provides a real-time look at the availability of

products• Alerts warehouse when reorder points are

reached– Hand scanners update inventory when items are

stocked

• Inventory database can often be accessed by customers over the Web – Inventory is updated when customer reserves a

product for pickup

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Marketing and Sales

• Database marketing allows companies to mine customer databases and create marketing lists

• Customers can share preferences for future use• Companies determine user preferences based

on past buying behavior• Consumers may receive spam from companies

who share user information – Customer can opt-in to receive mail only when

requested– Customer can opt-out to instruct the company not to

share information

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Computers In Banking

• Electronic funds transfer (EFT) allows users connected to a network to transfer money from one bank account to another– All electronic transactions use EFT

• Automated teller machines (ATMs) are self-service banking machines– Connects to a bank’s database through a host

processor, which routes the transaction– The user inputs a PIN number to verify the holder of

the bankcard – Pin numbers are encrypted for security

18ATM Machines

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Direct Deposit and ACH

• Direct deposit transfer funds electronically to a bank in order for a company to deposit funds into a specified account – Eliminates paychecks for payer– Saves trips to the bank or ATM for payee

• An automated clearing house (ACH) sorts automated payment instructions to transfer funds– ACH network acts as the central clearing facility for all

EFT transactions

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Smart Credit Cards

• Stores data on an embedded microprocessor• Updates data instantaneously• Used for a wide range of applications

– Originally used as stored value cards for pay phones– Used by train commuters in Tokyo

• Can be contact or contactless– Contact cards connect metallic pads with the reader’s

metallic pins – Contactless cards use a radio frequency to transfer

information between the card and reader

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Smart Card Applications

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Online Banking

• Brick-and-click businesses offer online banking in addition to services at a physical location

• Cyberbanks offer products and services solely on the Internet

• Online banks use sophisticated security technologies

• A bill payment service allows customers to log on to a Web site and pay bills to vendors

• Bill presentment is the process of sending bills electronically

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Computers In the Office

• Technology is an integral part of today’s office– Computers, PDA, networked printers, fax machines,

e-mail, cell phones

• Documents are stored on disk instead of paper• Companies have corporate intranets to process

online forms• PDF (Portable Document Format) files are used

to preserve formatting across a variety of platforms in a network or on the Internet

• Paper is still used for easier reading

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Telecommuting

• A work arrangement in which employees work away from the office and communicate with the office using technology

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Human Factors and the Workplace• Ergonomics aim to incorporate comfort,

efficiency and safety into the design of items in the workplace– Use an adjustable height chair with 4 to 5 legs– A work area of 2 feet by feet is recommended– Set the monitor viewing distance to 18 to 28 inches– Avoid glare on the screen– Keep arms and wrists parallel to the floor– Place feet flat on floor or stable footrest– Center monitor and keyboard in front of you

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RSI and CVS

• A repetitive stress injury (RSI) is caused when muscle groups complete the same repetitive actions over and over again– Keyboards and mice are major sources of RSIs– Symptoms include stiffness or burning of hands, loss of strength

in hands, and pain in the upper back, shoulders, and back

• Computer Vision Syndrome (CVS) is caused by screen glare, improper lighting, and monitor settings hard on the eyes– Symptoms include eyestrain, dry or burning eyes, increased

sensitivity to light, blurred vision, headache, and pain in the shoulders, neck, or back

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Employee Monitoring

• Involves the use of computers to observe, record, and review an employee’s use of a computer– E-mail messages inside and outside the company– Web sites visited by employee– Time spent away from the computer– Keystrokes performed per hour

• Employee monitoring is legal• Employers use monitoring to ensure network

security and manage productivity

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Skilling and De-skilling

• Skilling side of the debate– Technology increases the skill of some workers by

allowing them to learn and utilize constantly changing technology

• De-skilling side of the debate– Technology results in the de-skilling of workers due to

automation that creates highly rigid jobs with narrow scope

– De-skilling fragments tasks to the point where the worker loses sight of the larger purpose of the job

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Worker Autonomy

• Freedom of workers to contribute to the overall goals of a company, as well as their own goals

• Technology has both increased and decreased worker autonomy– Factory workers can make production decisions with

sophisticated technology on the factory floor– Production-scheduling systems can standardize

activities and control worker tasks rigidly– Workers have access to database information to

better complete their tasks– Customer service is often outsourced to

telecommuters

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Blurred Boundaries

• Technology makes it difficult for people to separate work and home life

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Employment and Unemployment• Technological change has displaced workers• U.S. Department of Labor projects that 8 out of

the 10 fastest growing jobs between now and 2010 will be computer related

• Wages will continue to fall for those not working in technology-rich jobs– Under-skilled workers are forced to accept underpaid

jobs

• The gap between those with access to computers and those without is referred to as the digital divide

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Conclusion

• Technological change is a key part of progress in any society– Agricultural, Industrial, and Information Revolutions

• Computers are used in every facet of business and industry today– Factory, retail sales and marketing, banking, and

offices

• Technology impacts the quality of life in positive and negative ways – Health, autonomy, boundaries

• Technology changes existing and emerging jobs