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Business in aChanging World

McGraw-Hill/Irwin Copyright © 2009 by the McGraw-Hill Companies, Inc. All rights reserved.

Chapter 4Managing Information Technology & E-business

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Reesycakes.com -- Bargaining online

Thanks to the Internet, haggling has never been easier, especially in the area of online apparel sales.

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Technology – Impact on Our Lives

Information technology– processes and applications that create new methods to solve problems, perform tasks, and manage communication.

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The Impact of Technology

Technology – the application of knowledge, including the processes and procedures to solve problems, perform tasks, and create new methods to obtain desired outcomes

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Information Technology (IT) is changing traditional products. AFE Cosmetics and Skincare provides customized cosmetics and skin care products.

Technology is the driving force in advancing economic systems and the quality of life.

Technology – Impact on Our Lives

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Technology – Impact on Our Lives

•Improved global access•Faster productivity growth•Improved efficiency•Reduced costs

Technology has improved business effectiveness and reach

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Managing Information

Data – numerical or verbal descriptions related to statistics or other items that have not been analyzed or summarized

Data, knowledge, & information

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Managing Information

Knowledge – an understanding of data gained through study or experience.

Data, knowledge, & Information

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Managing Information

Information – meaningful and useful interpretation of data and knowledge that can be used in making decisions.

Data, knowledge, & Information

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Management Information Systems

Management information system (MIS) – used for organizing and transmitting data into information that can be used for decision making.

Information is a major business resource. It is an asset to be developed and distributed to managers.

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Management Information Systems

The Vit Watch information system enhances management at Scheid Vineyards

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Management Information Systems

•Breaks down time and location barriers•Global information access•Anytime, anywhere with wireless

Management Information System (MIS)

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Management Information Systems

MIS & Data Collection

•Collect data•Store data•Update data•Process and present information

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Management Information Systems

Database -- A collection of data stored in one place and accessible throughout the network.

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The Internet

Internet – Global information system than links many computer networks together.

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The Internet

World Wide Web – a collection of interconnected Web sites or pages of text, graphics, audio, and video within the Internet.

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The Internet

Intranet– a network of computers similar to the Internet that is available only to people inside an organization.

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The Internet

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.

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History of Information Technology

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Wireless Technologies

•PDA’s•Smartphones•Digital devices•Apple iPhone•Wi-Fi Networks•WiMax•VOIP•RFID•GPS•MMS

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E-Business

E-Business – carrying out the goals of business through utilization of the internet.

E-business has the same goal as traditional business.

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E-Business

•Business-to-Business (B2B)•Business-to-Consumer (B2C)•Consumer-to-Consumer (C2C)

E-business models

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E-Business

B2B– use of the Internet for transactions and communications between organizations.

•Cisco Systems•Ford Motor Company•General Motors•IBM•Procter & Gamble

Business-to-Business (B2B)

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E-Business

B2C– delivery of products and services directly to individual consumers through the Internet (e-tailers).

•Dell Computer•MapQuest•Travelocity.com•Expedia•RetailMeNot.com

Business-to-Consumer (B2C)

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E-Business

C2C– market in which consumers market goods and services to each other through the Internet.

•eBay•Zshops at Amazon.com

Consumer-to-Consumer (C2C)

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E-BusinessE-Commerce

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Customer Relationship Management

•CRM – focuses on using information about customers to crate strategies that develop and sustain desirable long-term customer relationships.

CRM

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Customer Relationship Management

•Developing long-term customer relationships•Building satisfying relationships•Provide the best product solution for customers

CRM

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Legal and Social Issues

•Privacy•Consumer tracking via Internet purchases•Data gathering via “cookies”•Federal Trade Commission (FTC)•TRUSTe •Better Business Bureau Online

Privacy, identity theft, & intellectual property

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Legal and Social Issues

•Spam – unsolicited commercial e-mail. racking via Internet purchases

•Data gathering via “cookies”•Federal Trade Commission (FTC)•TRUSTe •Better Business Bureau Online

Privacy, identity theft, & intellectual property

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Privacy Laws

affecting commerce

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Legal and Social Issues

How Spam Volume Has Changed

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Legal and Social Issues

Spam Volume by Country

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Legal and Social Issues

•Identity Theft – criminals obtain personal information allowing them to impersonate others in order to use their credit to obtain financial accounts and make purchases.

•258,427 cases reported in 2007

Privacy, identity theft, & intellectual property

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Legal and Social Issues

Intellectual Property & Copyrights– protecting rights to property including:

•Songs•Movies•Books•Software•Ideas, creative materials•American Society for Industrial Security (ASIS)

Privacy, identity theft, & intellectual property