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Business in a Changing World Chapter 4 Managing Information Technology & E -business 2 Business in a Changing World Chapter 4 Managing Information Technology & E -business 2 Mc. Graw-Hill/Irwin Copyright © 2009 by the Mc. Graw-Hill Companies, Inc. All rights reserved.

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Reesycakes. com -Bargaining online Thanks to the Internet, haggling has never been easier, especially Reesycakes. com -Bargaining online Thanks to the Internet, haggling has never been easier, especially in the area of online apparel sales. 4 -4

Technology – Impact on Our Lives Information technology– processes and applications that create new Technology – Impact on Our Lives Information technology– processes and applications that create new methods to solve problems, perform tasks, and manage communication. 4 -5

The Impact of Technology – the application of knowledge, including the processes and procedures The Impact of Technology – the application of knowledge, including the processes and procedures to solve problems, perform tasks, and create new methods to obtain desired outcomes 4 -6

Technology – Impact on Our Lives Technology is the driving force in advancing economic Technology – Impact on Our Lives Technology is the driving force in advancing economic systems and the quality of life. Information Technology (IT) is changing traditional products. AFE Cosmetics and Skincare provides customized cosmetics and skin care products. 4 -7

Technology – Impact on Our Lives Technology has improved business effectiveness and reach • Technology – Impact on Our Lives Technology has improved business effectiveness and reach • Improved global access • Faster productivity growth • Improved efficiency • Reduced costs 4 -8

Managing Information Data, knowledge, & information Data – numerical or verbal descriptions related to Managing Information Data, knowledge, & information Data – numerical or verbal descriptions related to statistics or other items that have not been analyzed or summarized 4 -9

Managing Information Data, knowledge, & Information Knowledge – an understanding of data gained through Managing Information Data, knowledge, & Information Knowledge – an understanding of data gained through study or experience. 4 -10

Managing Information Data, knowledge, & Information – meaningful and useful interpretation of data and Managing Information Data, knowledge, & Information – meaningful and useful interpretation of data and knowledge that can be used in making decisions. 4 -11

Management Information Systems Information is a major business resource. It is an asset to Management Information Systems Information is a major business resource. It is an asset to be developed and distributed to managers. Management information system (MIS) – used for organizing and transmitting data into information that can be used for decision making. 4 -12

Management Information Systems The Vit Watch information system enhances management at Scheid Vineyards 4 Management Information Systems The Vit Watch information system enhances management at Scheid Vineyards 4 -13

Management Information Systems Management Information System (MIS) • Breaks down time and location barriers Management Information Systems Management Information System (MIS) • Breaks down time and location barriers • Global information access • Anytime, anywhere with wireless 4 -14

Management Information Systems MIS & Data Collection • Collect data • Store data • Management Information Systems MIS & Data Collection • Collect data • Store data • Update data • Process and present information 4 -15

Management Information Systems Database -- A collection of data stored in one place and Management Information Systems Database -- A collection of data stored in one place and accessible throughout the network. 4 -16

The Internet – Global information system than links many computer networks together. 4 -17 The Internet – Global information system than links many computer networks together. 4 -17

The Internet World Wide Web – a collection of interconnected Web sites or pages The Internet World Wide Web – a collection of interconnected Web sites or pages of text, graphics, audio, and video within the Internet. 4 -18

The Internet Intranet– a network of computers similar to the Internet that is available The Internet Intranet– a network of computers similar to the Internet that is available only to people inside an organization. 4 -19

The Internet Extranet– a network of computers that permits selected companies and other organizations 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. 4 -20

History of Information Technology 4 -21 History of Information Technology 4 -21

Wireless Technologies • PDA’s • Smartphones • Digital devices • Apple i. Phone • Wireless Technologies • PDA’s • Smartphones • Digital devices • Apple i. Phone • Wi-Fi Networks • Wi. Max • VOIP • RFID • GPS • MMS 4 -22

E-Business E-business has the same goal as traditional business. E-Business – carrying out the E-Business E-business has the same goal as traditional business. E-Business – carrying out the goals of business through utilization of the internet. 4 -23

E-Business E-business models • Business-to-Business (B 2 B) • Business-to-Consumer (B 2 C) • E-Business E-business models • Business-to-Business (B 2 B) • Business-to-Consumer (B 2 C) • Consumer-to-Consumer (C 2 C) 4 -24

E-Business-to-Business (B 2 B) B 2 B– use of the Internet for transactions and E-Business-to-Business (B 2 B) B 2 B– use of the Internet for transactions and communications between organizations. • Cisco Systems • Ford Motor Company • General Motors • IBM • Procter & Gamble 4 -25

E-Business-to-Consumer (B 2 C) B 2 C– delivery of products and services directly to E-Business-to-Consumer (B 2 C) B 2 C– delivery of products and services directly to individual consumers through the Internet (e-tailers). • Dell Computer • Map. Quest • Travelocity. com • Expedia • Retail. Me. Not. com 4 -26

E-Business Consumer-to-Consumer (C 2 C) C 2 C– market in which consumers market goods E-Business Consumer-to-Consumer (C 2 C) C 2 C– market in which consumers market goods and services to each other through the Internet. • e. Bay • Zshops at Amazon. com 4 -27

E-Business E-Commerce 28 4 -28 E-Business E-Commerce 28 4 -28

Customer Relationship Management CRM • CRM – focuses on using information about customers to Customer Relationship Management CRM • CRM – focuses on using information about customers to crate strategies that develop and sustain desirable long-term customer relationships. 4 -29

Customer Relationship Management CRM • Developing long-term customer relationships • Building satisfying relationships • Customer Relationship Management CRM • Developing long-term customer relationships • Building satisfying relationships • Provide the best product solution for customers 4 -30

Legal and Social Issues Privacy, identity theft, & intellectual property • Privacy • Consumer Legal and Social Issues Privacy, identity theft, & intellectual property • Privacy • Consumer tracking via Internet purchases • Data gathering via “cookies” • Federal Trade Commission (FTC) • TRUSTe • Better Business Bureau Online 4 -31

Legal and Social Issues Privacy, identity theft, & intellectual property • Spam – unsolicited Legal and Social Issues Privacy, identity theft, & intellectual property • Spam – unsolicited commercial e-mail. racking via Internet purchases • Data gathering via “cookies” • Federal Trade Commission (FTC) • TRUSTe • Better Business Bureau Online 4 -32

Privacy Laws affecting commerce 4 -33 Privacy Laws affecting commerce 4 -33

Legal and Social Issues How Spam Volume Has Changed 4 -34 Legal and Social Issues How Spam Volume Has Changed 4 -34

Legal and Social Issues Spam Volume by Country 35 4 -35 Legal and Social Issues Spam Volume by Country 35 4 -35

Legal and Social Issues Privacy, identity theft, & intellectual property • Identity Theft – Legal and Social Issues Privacy, identity theft, & intellectual property • 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 4 -36

Legal and Social Issues Privacy, identity theft, & intellectual property Intellectual Property & Copyrights– Legal and Social Issues Privacy, identity theft, & intellectual property Intellectual Property & Copyrights– protecting rights to property including: • Songs • Movies • Books • Software • Ideas, creative materials • American Society for Industrial Security (ASIS) 4 -37