Chapter Four Managing Information Technology and E-Business

Chapter FourManaging Information Technology and E-BusinessInformation TechnologyThe process and applications that create new methods to solve problems, perform tasks, and manage communication.The Role and Impact of Technology in the EconomyIncrease intellectual knowledgeAchieve business objectivesAdvancement of economic systemsImproving the quality of lifeThe Impact of Technology on ConsumersTechnology Changes:How they plan and take vacationsHow they make purchasesHow they drive carsHow they obtain entertainmentThe Impact of Technology on the WorkplaceTechnology Has:Improved productivityImproved efficiencyReduced costsEnhanced customer serviceThe Biggest Technology Challenge for BusinessKeeping pace with new information technology in new competitive environments.IT Improves Global AccessGlobal markets and foreign business professionals are now linked through telecommunication.Productivity has doubled in the last 10 years through “real time” access to people and markets.Managing InformationData:Numerical or verbal descriptions related to statistics or other items that have not been analyzed or summarized.Knowledge:An understanding of data gained through study or experience.Information:Data and knowledge that can be used in making decisions.FAST FACT:The term information technology is approximately10 years old.Management Information Systems (MIS)An MIS is used for organizing and transmitting data into information that can be used in decision making.MIS can be wireless and operate “24/7.”FAST FACT:It was estimated that by 2002, 225 million people would be using wireless service that bypassed the Internet.Source: Spencer E. Hute, Amy Burrus, and Robert D. Hoff, “In Search of the Net’s Next Big Thing,” Business Week, March 26, 2001, p. 141.Collecting DataTo be effective, an MIS must be able to:Collect dataStore dataUpdate dataProcess dataPresent informationDatabaseA collection of data stored in one place and accessible throughout the networkThe Internet and the World Wide WebInternet:A global information system that links many computer networks together.World Wide Web (WWW)A collection of interconnected web sites or pages of text, graphics, audio, and video within the Internet.Intranets and ExtranetsIntranet:A computer network similar to the Internet, but only available to people inside an organization.Extranet:A network of computers that permits selected companies and other organizations to access the same information and may allow collaboration and communication about the information.How the Internet WorksInternet Service Provider (ISP)An organization that provides access to the Internet through its own series of local networks.FAST FACT:70% of consumers use narrowband to access the Internet at home.Broadband works 50 times faster than a traditional telephone modem.Internet UsersOver 256 million Internet users in 2000.52% of these users were non-English speaking people.Estimates show that this portion of the Internet population will increase to 68% by late 2003.J. Bonasia, “For Web, Global Reach Is Beauty – and Challenge,” Investor’s Business Daily, June 13, 2001, p. A6.Internet UsersWhere Children Use the InternetThe percentage of children 3-17 using the Internet at home by region:Northeast 35.5%Midwest 32.1%West 29.0%South 27.6% Source: “Where children use the Internet,” USA Today Snapshots, October 4, 2001, p. A1.Internet UsesCommunicationInformationEntertainmentE-businessFAST FACT:About 8.7 billion e-mails are sent each day in the US and Canada.Source: Lesley Alderman, “E-mail Etiquette,” Reader’s Digest, September 2001, p. 190.Barriers to Internet Use“63% of online shoppers said shipping and handling charges had convinced them not to complete a transaction.”Source: Mike Langbery, “Tech Talk From Silicone Valley,” destinationsoho.com, October 2001, p. 12.The Nature of E-BusinessThe Internet and the Web have provided the opportunity for e-business to grow faster than any other innovation in recent years.E-business is interactive.E-business expands the methods for maintaining business relationships.The Nature of E-BusinessIt carries out business goals through using the Internet.It can be linked to traditional marketing methods.Business can be transacted on the Web.Using the Internet can reduce the costs of business and customer transactions.It restructures the way work is done.The Nature of E-BusinessThe Number of Domain Registrations Climb19971998199920003.36million9million28.2million1.54millionE-Business ModelsBusiness-to-Business (B-to-B)Use of the Internet for transactions and communications between organizations.Business-to-ConsumerDelivery of products and services directly to individual consumers through the Internet.Consumer-to-ConsumerMarket in which consumers market goods and services to each other through the Internet.Legal and Social Issues of IT and E-BusinessPrivacyIdentity TheftProtection of Intellectual PropertyProtection of CopyrightsThe Dynamic Nature of Information Technology and E-BusinessFuture business leaders will need more than a technical understanding of IT, they will need to have a strategic understanding of how IT and e-business can make business more efficient and productive. Virtually every business sector will adapt and use IT to improve business operations.The Dynamic Nature of IT and E-BusinessExpands Job-RelatedKnowledgeIncreasesProductivityImprovesCommunicationsRelieves Job Stress19982001Technology’s Positive Impact: Technology users increasingly appreciate the benefits of technology.54%87%66%80%42%80%26%54%Source: Darryl Haralson and Sam Ward, “Technology’s positive impact,” USA Today, October 22, 2001, p. 1B.Information Technology and E-Business PaysAverage Annual Salaries for Computer Executives and IT Professionals:Chief Information Officer $132,789Director of Information Systems $ 91,789Director of Systems Development $ 96,803Manager of Voice/Data Communications $ 70,723Database Manager $ 71,178Technical Support Manager $ 61,109Network Administrator $ 52,735IT and E-Business PaysSalary Ranges for Selected Internet Professionals:Creative Designer $50,000 – 70,000Information Architect $70,000 – 120,000Webmaster/Content $50,000 – 70,000Webmaster/Technical $60,000 – 85,000Web Developer $45,000 – 70,000Software Engineer $50,000 – 75,000Customer Relationship Manager $50,000 – 75,000 Solve the DilemmaAs a consultant, what would you do to help Paul figure out what went wrong with IOWatch.What ideas for new freeware can you give Paul What potential uses will the new software have?How will it make money?Explore Your Career OptionsWhat characteristics are important in people interested in a career in information technology?Additional Discussion Questions and ExercisesWhy did many dot-coms fail in 2000 and 2001?How do virtual communication systems affect business?Additional Discussion Questions and ExercisesShould MIS managers and E-business professionals address privacy issues when doing business on the Internet or should they follow the idea of “Let the buyer beware?” What risks do they run if they do not consider privacy?How will developing technology impact and change business in the next ten years and who will be impacted?Chapter 4 Quiz1. ______ refers to numerical or verbal descriptions related to statistics or other items that have not been analyzed or summarized, while ______ is usually referred to as an understanding of data gained through study or experience.  a. Data; information b. Knowledge; information c. Information; knowledge d. Data; learning_____is a major business resource and should be viewed as an asset that must be developed and distributed to managers.? a. Knowledge b. Data  c. A management information system. d. Information technology e. InformationChapter 4 Quiz3. An Internet Service Provider is  a. a network of computers.  b. an organization that provides access to the Internet. c. a global information system. d. a collection of interconnected websites. e. an organization that provides database management._____ lets personal computers communicate directly through the Internet.  a. Peer-to superior technology  b. Peer-to-peer technology  c. The World Wide Web d. A management information system e. Peer-to-subordinate technologyMultiple Choice Questions about the Video1. Metamor delivers flexible, value-added services by a. working independently and setting up intranets.b. partnering with management teams within companies. c. providing all assistance over the Internet. d. recommending outside consultants to solve problems.e. providing textbooks and manuals to facilitate applications.One of the best ways to describe Metamor is asa. a project-based service company in the e-business information technology area. b. an Internet service provider for businesses. c. a computer software and applications company. d. a provide of computers and peripheral hardware. e. a human resources management and employment agency.