Chapter

14

Using Technology to
Manage Information
Learning Objectives

LO 14.1 Distinguish between data and

LO 14.5 Outline the security and ethical
information, and discuss the role of information
issues affecting information systems.
systems in business.

LO 14.6 Explain how companies plan for, and

LO 14.2 Describe the components and types of
recover from, information system disasters.
information systems.

LO 14.7 Review the trends in information

LO 14.3 Outline how computer hardware and
systems.
software are used to manage information.

LO 14.4 Describe networking and

telecommunications technology and the types of

computer networks.
Data, Information, and Information Systems

Data: Raw facts and figures that may or may not

be meaningful to a business decision
Information: Knowledge gained from processing
data
Information system: An organized method for
collecting, storing, and communicating past,
present, and projected information on internal
operations and external intelligence
Chief information officer (CIO): The executive
responsible for managing a firms information
systems and related computer technologies
Traditionally reports directly to the chief executive officer
(CEO)
Test Your Knowledge

How is data different from information?

a) Data is current; information is

unchanging.
b) Information is knowledge; data are the
facts that can be converted to a usable
form.
c) Data is continuously collected but
information is only collected sporadically.
d) Information is more overwhelming than
data.
Components and Types of Information Systems

Computer-based information
systems: Information systems that use
computer and related technologies to
store information electronically in an
organized, accessible manner
Computer hardware
Computer software
Telecommunications and computer
networks
Data resource management
Types of Information Systems

Operational support systems

Transaction processing system
Process control system
Management Support Systems
Management information system (MIS)
Decision support system (DSS)
Executive support system (ESS)
Expert system
Test Your Knowledge

A(n) ______ is a management support

system that imitates human thinking
through if-then rules.

a) decision support system

b) management information system
c) executive support system
d) expert system

Answer: d
Computer Hardware

Hardware: All tangible, or physical,

elements of a computer system
Input devices are the components that
store and process data, perform
calculations
The keyboard and mouse allow users to enter
data and commands; storage and processing
components consist of the hard drive and other
storage components like flash drives
Output devices present results to users
Monitors, printers, transmit or display
Computer Hardware (contd)

Types of computers
Mainframes

Supercomputers
Midrange systems
High-end network servers
Personal computers
Desktop, notebook (laptop) computers
Tablets
Hand-held devices
PDAs, smartphones
Computer Software

Software: All the programs, routines, and

computer languages that control a
computer and tell it how to operate
Operating system
Windows operating system
Mac operating system
Application Software
Adobe Acrobat
Microsoft PowerPoint
Quicken
Computer Networks

The Internet
Local area networks
(LAN)
Wide area networks
(WAN)
Wireless local
networks (WiFi)
Intranets
Virtual private
networks (VPN)
Voice over Internet
Protocol (VoIP)
FIGURE 14.1 A Local Area Network
Test Your Knowledge

A(n) ______ is a secure connections

between two points on the Internet, using
firewalls and programs that encrypt, or
encode, data to make them more secure
during transit.
a) virtual private network (VPN)
b) local area network (LAN)
c) voice over Internet Protocol (VoIP)
d) intranet

Answer: a
Security Issues Affecting Information Systems

E-crime
Malware
Computer viruses
Worms
Botnet
Trojan horses
Spyware
Ethical Issues affecting
Information Systems

Use of information systems by

employees and vendors
Personal use
Privacy
Organizational use of information:
Employment records
Employee monitoring
Customer data
Disaster Recovery and Backup

Natural disasters
Power failures
Equipment malfunctions
Software glitches
Human error
Terrorist attacks
The most basic precaution is routine backup
of software and data, at the organizational
and individual level
Information Systems Trends
The distributed workforce
Employees who work in virtual offices
Application service providers (ASP)
An outside supplier that provides both the computers
and the application support for managing an
information system
On-demand computing
The use of software time from application providers;
firms pay only for their usage of the software, not for
purchasing or maintaining the software
Cloud computing
The use of powerful servers that store applications
software and databases that users access by using
any Internet-connected device, such as a PC or a
smartphone
Grid computing
A network of smaller computers that run special
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