Business Information and IT
in Business
Higher Business Management
M. McGowanth
„January 8 1815. General Andrew Jackson
led US troops to a victory over the British in
the War of 1812.
„More than 2,000 men died in the Battle of
New Orleans
„Sadly a peace had been made 2 weeks
earlier called the Treaty of Ghent.
„Communication and information are key in
life and business.
M. McGowanToday
„Sources of Information
„Types of Information
„Qualitative and Quantitative information
„Value of Information
„Uses of information in business
M. McGowanSources of Information
„Primary ±information collected by the
business itself. Sometimes called Field
research. It is first hand information.
„Examples: Market Research data, Consumer
Research
„Secondary±information already published.
Also called Desk research.
„Examples: Government Reports, MINTEL M. McGowan
ReportsSources of Information
„Internal ±information collected within
the business.
„Examples: Employee or customer
records
„External ±information collected from
outside the business.
„Examples: National Statistics, Rivals
accounts
M. McGowanType of Info Costs - Benefits +
Primary expensive Reliable,
verifiable
Secondary Less expensive Easy to obtain,
than primary, may wider number of
not be relevant sources
Internal No financial costs Reliable,
verifiable
External May have a More sources
financial cost available than
M. McGowan primarya)What is primary information?
b)What is secondary
information?
c)What is internal information?
d)What is external information?
M. McGowana)Choose 2 different sources of
information. Describe these sources
and give an example of each one
b)Identify at least one cost and one
benefit of the sources of information
chosen in question a)
c)List at least 3 different types of
information
M. McGowana)List at least 5 characteristics of
good information
b)Complete the grid on sources of
information available on the work
area
M. McGowanTypes of Information
„Written±info presented on paper or
computer screen
„Oral ±info communicated by voice
„Pictorial ±info displayed by a photo or
picture
„Graphical±info displayed as a graph or
chart
„Numerical±info presented in numbers
rather than text M. McGowanQualitative & Quantitative Info
„Qualitative information is descriptive in nature and
includes peoples feelings and attitudes towards a
topic.
„Example: Why is Cheese & Onion your favourite
flavour of crisps?
„Quantitative information is measurable and
expressed numerically. It deals in facts and
figures.
„Example: How often do you eat a packet of crisps
in a week?
M. McGowanM. McGowanValue of Information
„Accuracy ±is it correct?
„Timeliness±is it up-to-date and reliable?
„Completeness ±are there any omissions?
„Appropriateness±is it relevant?
M. McGowanValue of Information
„Availability±is it at hand when
needed? Easy to obtain?
„Cost±is it expensive to collect?
„Objectivity±is it free from bias?
„Conciseness±is it straight to the point?
M. McGowanUses of Information in Business
„Monitoring and control±used to ensure firm is
heading in expected direction
„Decision-making±before making any decision,
managers have to weigh up alternatives or different
sides of an argument.
„Measuring performance-workers output may be
measured against a standard set by the worker or
colleagues.
„Identifying new business opportunities±analysing
consumer trends may lead to a new product or M. McGowan
service to fill new customer needsRecap
„Sources of Information
„Types of Information
„Qualitative and Quantitative information
„Value of Information
„Uses of information in business
M. McGowanToday Types of IT
„Mainframe
„PC and Laptops
„Networks
„Email
„Videoconferencing
„Internet
„CAM
„CD/DVD
„EPOS
M. McGowanMainframe
„Large, powerful
supercomputers (like
Cray) capable of multi-
tasking
„Used mainly for
scientific and
engineering purposes.
M. McGowan „NASA is one such user.Mainframe +/-
+ -
„Enormous memory „Hugely expensive
„Vast processing „Increasing
power dependency
„Extremely fast
M. McGowanPC and Laptops
„Home, Office or
mobile computers
„Now have
Notebooks and
Palmtops
„Have hinged screen
„LCD display
„Battery powered
„Trackpad instead of
mouse
M. McGowanPC and Laptops +/-
„+ „-
„Good value for „Short shelf life
money „Prone to viruses and
„Ever increasing breakdowns
capacity and
processing power
M. McGowanNetworks
„LANs (Local Area
Networks) are linked
to a geographically
close server.
„
WANs (Wide Area
Networks) use
telecommunications
such as cable and
satellite to link up
across continents
M. McGowanNetworks +/-
„+ „-
„Employees linked „Server breakdowns
together „Prone to viruses
„Share data and files
„Reliance on backups
M. McGowana)List at least 3 examples of information
technology in use today
b)What is a mainframe computer and
why is its use in modern business less
widespread than in the 1970s?
c)What is a LAN? What is a WAN? How
are they different?
d)How might a modern business make
use of different types of computers?
Mention at least 2 types
M. McGowanE-mail
„Transfer of text,
graphics and other
information between
computer users via
telephone lines.
„Requires internet
access and valid
email address
M. McGowanE-mail +/-
„+ „-
„Instant „Junk mail
communication „Staff may abuse use
„Same message can
be sent to many „Viruses
people „E-mail has same
legal liability as
„Cost-effective written material
M. McGowana)What does ICT stand for and what
does it mean?
b)Give 3 examples of modern
telecommunications networks
c)Explain how they work
d)Give 2 advantages and 2
disadvantages of email
e)How might a business use ICT to
expand its operations?
M. McGowanVideoconferencing
„Sound and vision
linking of people at
different locations
„Enables a virtual
meeting between
people without
having to travel
M. McGowanVideoconferencing +/-
„+ „-
„Saves „Poor connections
accommodation and „Time lags
travel
„Saves travelling time „Hard to pick up
body language
„Relatively
inexpensive
M. McGowanInternet
„International network
of computers
„In existence since
1969!
Main uses:
„E-mail
„Newsgroups
„Sharing Information
M. McGowanInternet
„+ „-
„Access to vast „Check reliability of
amounts of information
information „Viruses
„Access to wider
global market „Staff may abuse
access
M. McGowanInteractive CD or DVD
„Interactive media
used for staff
training
„CD holds 650 MB
„DVD holds 17 GB
M. McGowanInteractive CD or DVD +/-
„+ „-
„Cheaper than using „Employees
consultants unsupervised
„One-on-one -More „Finite questions
involving for staff
„No human contact
M. McGowanComputer Aided Manufacture
„Computers and
robots used to
control machines
M. McGowanCAM +/-
„+ „-
„Saves labour costs „Costly breakdowns
„Consistent quality „Cant think for
themselves
„Twentyfourseven
production
M. McGowanEPOS
„Electronic Point of Sale
„Allows an electronic
record kept of all
purchases and returns
„EFTPOS is when Switch
and Delta are used.
(Electronic Funds
M. McGowan Transfer at Point of Sale)EPOS +/-
„+ „-
„Records purchases „Barcodes may be
& returns faulty
„Aids stock control „Information has to
be entered correctly
„Can be used for on Barcode
market research
M. McGowanRecap Types of IT
„Mainframe
„PC and Laptops
„Networks
„Email
„Videoconferencing
„Internet
„CAM
„CD/DVD
„EPOS
M. McGowanToday
„Database
„Spreadsheet
„Word Processing
„Desktop Publishing
„Presentation Packages
„Computer-aided design
„Decision-making packages
„Project Mangement Packages
M. McGowanDatabase
„Database ±data
saved and organised
in an electronic filing
system
„Keeping and sorting
records
„Searching for
information
„Filing reports
„Mail merge
M. McGowanSpreadsheet
„Spreadsheet-an
electronic worksheet
used to manage
numbers and carry
out calculations.
„Produces charts
and graphs
„What if scenarios
„Budgets, wages,
sales figures,
estimates
M. McGowanWord Processing
„Word Processing
± an electronic
typewriter
„Prepare letters,
memos, reports
„Edit text
„Graphics and images
„Mail merge
M. McGowanDesktop Publishing
„Desktop Publishing±
package that allows
professional documents to
be created
„Text, graphics, and images
„High quality documents
„Magazines, newsletters,
price lists, posters, forms,
booklets, manuals,
M. McGowancatalogues, leafletsPresentation Packages
„Presentation
Packages ±
projects an image
onto large screen
„Used for
presentations
„Can use audio and
movie clips
„Easily available
handouts and notes
M. McGowanComputer-aided Design
„Computer-aided Design
(CAD) ± computerised
process for creating new
parts or products or
altering existing ones
„Mainly used by architects,
designers and engineers
„Also used in animation and
in simulations
„Alterations can be made
M. McGowanwithout redrawingDecision-Making Packages
„Decision-Making
Packages ±
analytical tools for
managers
„Produces statistics
and graphs
„Helps managers
evaluate information
M. McGowanProject Management Packages
„Project Management
Packages ± enables
project teams to co-
ordinate activities
„Details budgets
„Team member tasks
„Records resources used
or allocated
„Time deadlines
M. McGowan„Progress reportsa)List 5 types of business software
b)Identify 3 facilities provided by a word
processing program
c)Identify 3 facilities provided by a
spreadsheet program
d)Identify 3 facilities provided by a database
program
e)Identify 3 facilities provided by a desk top
publishing program
f)What kind of organisation might use a
decision making package?
M. McGowanRecap
„Database
„Spreadsheet
„Word Processing
„Desktop Publishing
„Presentation Packages
„Computer-aided design
„Decision-making packages
„Project Mangement Packages
M. McGowanToday
„Benefits of IT
„Costs of IT
„Benefits of Software
„Costs of Software
„Uses of IT
„Effects of IT on employees
„Effects of IT on organisations
M. McGowanBenefits of IT
„Increases productivity
„Reduces waste
„Increases speed of work
„Improves accuracy and quality
„Increases access to information
„Improves communication & decision-
making
„Saves floor space
M. McGowanCosts of IT
„Costly to develop, install and maintain
„Training staff is costly and timely
„Introduction may not be easy
„Requires new skills
„Breakdowns very costly and inconvenient
„Deskilled workers leads to low motivation
M. McGowanBenefits of Software
„Information can be handled very quickly
„Speed and quality of decision-making
improved
„Fewer errors made making calculations
„Improved accuracy and quality
M. McGowanCosts of Software
„Expensive to buy
„Staff training required and costly
„Staff learning curve can be costly
„Time can be lost due to glitches
„External threats -viruses
M. McGowanUses of IT
„Assists decision-making
„Assists with providing information for
staff
„Helps maintain complete and accurate
business records
„Aids effective communication within an
organisation
M. McGowanEffects of IT on Employees
„Greater productivity
„Retraining required
„Changes in customer relations ±more
impersonal yet quicker response
„Less personal contact
M. McGowanEffects of IT on Organisation
„Decentralisation possible
„Additional departments/jobs may be
created
„Fewer staff required
„Changes to span of control ±narrower
due to less staff or wider due to
autonomy of staff
M. McGowana)List 2 ways in which using
Internet banking services benefits
an organisation
b)How does the use if internet
banking facilities help firms
operate globally?
M. McGowanRecap
„Benefits of IT
„Costs of IT
„Benefits of Software
„Costs of Software
„Uses of IT
„Effects of IT on employees
„Effects of IT on organisations
M. McGowanToday
„Data Protection Act
M. McGowanINTRODUCTION
„-A new Data Protection Act was passed
in 1998 which supersedes the 1984 Act,
which will be repealed.
„There are eight Data Protection
Principles in the Act. However, the new
Principles are not exactly the same as
those in the 1984 Act.
M. McGowan„1. FIRST PRINCIPLE
„"Personal data shall be processed fairly and
lawfully."
„2. SECOND PRINCIPLE
„"Personal data shall be obtained only for
specified and lawful purposes, and shall be
processed only in a manner compatible with
those purposes."
„3. THIRD PRINCIPLE
„"Personal data shall be adequate, relevant
and not excessive in relation to the purposes
for which they are processed."
M. McGowan„4. FOURTH PRINCIPLE
„"Personal data shall be accurate and,
where necessary, kept up to date".
„5. FIFTH PRINCIPLE
„"Personal data processed for any
purposes shall not be kept for longer
than is necessary for those purposes".
„6. SIXTH PRINCIPLE
„"Personal data shall be processed in
accordance with the rights of data
subjects under this Act."
M. McGowan„7. SEVENTH PRINCIPLE
„"Appropriate technical and organisational
measures shall be taken against unauthorised
or unlawful processing of personal data and
against accidental loss or destruction of, or
damage to, personal data."
„8. EIGHTH PRINCIPLE
„"Personal data shall not be transferred to a
country or territory outside the European
Economic Area, unless that country or
territory ensures an adequate level of
protection for the rights and freedoms of data
subjects in relation to the processing of
personal data."
M. McGowan„Personal data covers both facts and
opinions about the individual. It also
includes information regarding the
intentions of the data controller towards
the individual, although in some limited
circumstances exemptions will apply.
„With processing, the definition is far
wider than before. For example, it
incorporates the concepts of 'obtaining',
holding' and 'disclosing'.
M. McGowana)What is the scope of the Data
Protection Act 1998?
b)List at least 5 Data Protection
Principles
c)What is the maximum time limit that
an organisation has to respond to a
request for information?
d)List at least two circumstances where
an individual could be refused access
to information held about themselves
M. McGowan