8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 1/48
M. McGowan
Business Information andBusiness Information andInformation and IT inInformation and IT in
BusinessBusiness
Higher Business Management Higher Business Management
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 2/48
M. McGowan
Sources of InformationSources of Information
PrimaryPrimary information collected by theinformation collected by thebusiness itself. Sometimes called Fieldbusiness itself. Sometimes called Fieldresearch. It is first hand information.research. It is first hand information.
Examples: Market Research data, ConsumerExamples: Market Research data, ConsumerResearchResearch
SecondarySecondary information already published.information already published. Also called Desk research. Also called Desk research.
Examples: Government Reports, MINTELExamples: Government Reports, MINTEL
ReportsReports
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 3/48
M. McGowan
Sources of InformationSources of Information
InternalInternal information collected withininformation collected withinthe business.the business.
Examples: Employee or customerExamples: Employee or customerrecordsrecords
ExternalExternal information collected frominformation collected from
outside the business.outside the business. Examples: National Statistics, Rivals Examples: National Statistics, Rivals
accountsaccounts
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 4/48
M. McGowan
Type of InfoType of Info CostsCosts -- Benefits +Benefits +
PrimaryPrimary expensiveexpensive Reliable,Reliable,verifiableverifiable
SecondarySecondary Less expensiveLess expensive
than primary, maythan primary, maynot be relevant not be relevant
Easy to obtain,Easy to obtain,
wider number of wider number of sourcessources
InternalInternal No financial costsNo financial costs Reliable,Reliable,verifiableverifiable
ExternalExternal May have aMay have afinancial cost financial cost
More sourcesMore sourcesavailable thanavailable thanprimaryprimary
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 5/48
M. McGowan
Types of InformationTypes of Information
WrittenWritten info presented on paper orinfo presented on paper orcomputer screencomputer screen
OralOral info communicated by voiceinfo communicated by voice PictorialPictorial info displayed by a photo orinfo displayed by a photo or
picturepicture
GraphicalGraphical info displayed as a graph orinfo displayed as a graph orchart chart
NumericalNumerical info presented in numbersinfo presented in numbersrather than text rather than text
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 6/48
M. McGowan
Qualitative & Quantitative InfoQualitative & Quantitative Info
Qualitative information is descriptive in nature andQualitative information is descriptive in nature andincludes peoples feelings and attitudes towards aincludes peoples feelings and attitudes towards atopic.topic.
Example: Why is Cheese & Onion your favouriteExample: Why is Cheese & Onion your favouriteflavour of crisps?flavour of crisps?
Quantitative information is measurable andQuantitative information is measurable and
expressed numerically. It deals in facts andexpressed numerically. It deals in facts andfigures.figures.
Example: How often do you eat a packet of crispsExample: How often do you eat a packet of crispsin a week?in a week?
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 7/48
M. McGowan
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 8/48
M. McGowan
Value of Information Value of Information
Accuracy Accuracy is it correct?is it correct?
TimelinessTimeliness is it upis it up--toto--date and reliable?date and reliable?
CompletenessCompleteness are there any omissions?are there any omissions?
Appropriateness Appropriateness is it relevant?is it relevant?
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 9/48
M. McGowan
Value of Information Value of Information
Availability Availability is it at hand whenis it at hand whenneeded? Easy to obtain?needed? Easy to obtain?
Cost Cost is it expensive to collect?is it expensive to collect?
ObjectivityObjectivity is it free from bias?is it free from bias?
ConcisenessConciseness is it straight to the point?is it straight to the point?
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 10/48
M. McGowan
Uses of Information in BusinessUses of Information in Business
Monitoring and controlMonitoring and control used to ensure firm isused to ensure firm isheading in expected directionheading in expected direction
DecisionDecision--makingmaking before making any decision,before making any decision,
managers have to weigh up alternatives or different managers have to weigh up alternatives or different sides of an argument.sides of an argument.
Measuring performanceMeasuring performance -- workers output may beworkers output may bemeasured against a standard set by the worker ormeasured against a standard set by the worker orcolleagues.colleagues.
Identifying new business opportunitiesIdentifying new business opportunities analysinganalysingconsumer trends may lead to a new product orconsumer trends may lead to a new product or
service to fill new customer needsservice to fill new customer needs
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 11/48
M. McGowan
MainframeMainframe
Large, powerfulLarge, powerfulsupercomputers (likesupercomputers (likeCray) capable of multiCray) capable of multi--
taskingtasking
Used mainly forUsed mainly for
scientific andscientific andengineering purposes.engineering purposes.
NAS A is one such user.NAS A is one such user.
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 12/48
M. McGowan
Mainframe +/Mainframe +/--
++
Enormous memoryEnormous memory
Vast processing
Vast processingpowerpower
Extremely fast Extremely fast
--
Hugely expensiveHugely expensive
IncreasingIncreasingdependencydependency
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 13/48
M. McGowan
PC and LaptopsPC and Laptops
Home, Office orHome, Office ormobile computersmobile computers
Now haveNow have
Notebooks andNotebooks andPalmtopsPalmtops
Have hinged screenHave hinged screen
LCD displayLCD display
Battery poweredBattery powered Trackpad instead of Trackpad instead of
mousemouse
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 14/48
M. McGowan
PC and Laptops +/PC and Laptops +/--
++
Good value forGood value formoneymoney
Ever increasingEver increasingcapacity andcapacity andprocessing powerprocessing power
--
Short shelf lifeShort shelf life
Prone to viruses andProne to viruses andbreakdownsbreakdowns
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 15/48
M. McGowan
NetworksNetworks
LANs (Local AreaLANs (Local AreaNetworks) are linkedNetworks) are linkedto a geographicallyto a geographically
close server.close server.
W ANs (Wide AreaW ANs (Wide AreaNetworks) useNetworks) use
telecommunicationstelecommunicationssuch as cable andsuch as cable andsatellite to link upsatellite to link upacross continentsacross continents
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 16/48
M. McGowan
Networks +/Networks +/--
++
Employees linkedEmployees linkedtogethertogether
Share data and filesShare data and files
--
Server breakdownsServer breakdowns
Prone to virusesProne to viruses
Reliance on backupsReliance on backups
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 17/48
M. McGowan
EE--mailmail
Transfer of text,Transfer of text,graphics and othergraphics and otherinformation betweeninformation between
computer users viacomputer users viatelephone lines.telephone lines.
Requires internet Requires internet access and validaccess and validemail addressemail address
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 18/48
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 19/48
M. McGowan
Videoconferencing Videoconferencing
Sound and visionSound and visionlinking of people at linking of people at different locationsdifferent locations
Enables a virtualEnables a virtualmeeting betweenmeeting between
people without people without having to travelhaving to travel
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 20/48
M. McGowan
Videoconferencing +/ Videoconferencing +/--
++
SavesSavesaccommodation andaccommodation andtraveltravel
Saves travelling timeSaves travelling time
RelativelyRelatively
inexpensiveinexpensive
--
Poor connectionsPoor connections
Time lagsTime lags Hard to pick upHard to pick up
body languagebody language
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 21/48
M. McGowan
Internet Internet
International networkInternational networkof computersof computers
In existence sinceIn existence since1969!1969!
Main uses:Main uses:
EE--mailmail NewsgroupsNewsgroups
Sharing InformationSharing Information
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 22/48
M. McGowan
Internet Internet
++
Access to vast Access to vast amounts of amounts of informationinformation
Access to wider Access to widerglobal market global market
--
Check reliability of Check reliability of informationinformation
Viruses Viruses
Staff may abuseStaff may abuseaccessaccess
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 23/48
M. McGowan
Interactive CD or D VDInteractive CD or D VD
Interactive mediaInteractive mediaused for staff used for staff trainingtraining
CD holds 650 MBCD holds 650 MB
D VD holds 17 GBD VD holds 17 GB
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 24/48
M. McGowan
Interactive CD or D VD +/Interactive CD or D VD +/--
++
Cheaper than usingCheaper than usingconsultantsconsultants
OneOne--onon--oneone -- MoreMoreinvolving for staff involving for staff
--
EmployeesEmployeesunsupervisedunsupervised
Finite questionsFinite questions
No human contact No human contact
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 25/48
M. McGowan
Computer Aided ManufactureComputer Aided Manufacture
Computers andComputers androbots used torobots used tocontrol machinescontrol machines
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 26/48
M. McGowan
CAM +/CAM +/--
++
Saves labour costsSaves labour costs
Consistent qualityConsistent quality
TwentyfoursevenTwentyfoursevenproductionproduction
--
Costly breakdownsCostly breakdowns
Cant think forCant think forthemselvesthemselves
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 27/48
M. McGowan
EPOSEPOS
Electronic Point of SaleElectronic Point of Sale
Allows an electronic Allows an electronicrecord kept of allrecord kept of allpurchases and returnspurchases and returns
EFTPOS is when SwitchEFTPOS is when Switchand Delta are used.and Delta are used.(Electronic Funds(Electronic FundsTransfer at Point of Sale)Transfer at Point of Sale)
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 28/48
M. McGowan
EPOS +/EPOS +/--
++
Records purchasesRecords purchases& returns& returns
Aids stock control Aids stock control
Can be used forCan be used formarket researchmarket research
--
Barcodes may beBarcodes may befaultyfaulty
Information has toInformation has tobe entered correctlybe entered correctlyon Barcodeon Barcode
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 29/48
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 30/48
M. McGowan
Spreadsheet Spreadsheet
SpreadsheetSpreadsheet -- ananelectronic worksheet electronic worksheet used to manageused to manage
numbers and carrynumbers and carryout calculations.out calculations.
Produces chartsProduces chartsand graphsand graphs
What if scenariosWhat if scenarios Budgets, wages,Budgets, wages,
sales figures,sales figures,estimatesestimates
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 31/48
M. McGowan
Word ProcessingWord Processing
Word ProcessingWord Processing an electronican electronictypewritertypewriter
Prepare letters,Prepare letters,memos, reportsmemos, reports
Edit text Edit text
Graphics and imagesGraphics and images Mail mergeMail merge
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 32/48
M. McGowan
Desktop PublishingDesktop Publishing
Desktop PublishingDesktop Publishing package that allowspackage that allowsprofessional documents toprofessional documents to
be createdbe created Text, graphics, and imagesText, graphics, and images
High quality documentsHigh quality documents
Magazines, newsletters,Magazines, newsletters,price lists, posters, forms,price lists, posters, forms,booklets, manuals,booklets, manuals,catalogues, leafletscatalogues, leaflets
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 33/48
M. McGowan
Presentation PackagesPresentation Packages
PresentationPresentationPackagesPackages projects an imageprojects an image
onto large screenonto large screen Used forUsed for
presentationspresentations
Can use audio andCan use audio and
movie clipsmovie clips Easily availableEasily available
handouts and noteshandouts and notes
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 34/48
M. McGowan
ComputerComputer--aided Designaided Design
ComputerComputer--aided Designaided Design(CAD)(CAD) computerisedcomputerisedprocess for creating newprocess for creating new
parts or products orparts or products oraltering existing onesaltering existing ones
Mainly used by architects,Mainly used by architects,designers and engineersdesigners and engineers
Also used in animation and Also used in animation andin simulationsin simulations
Alterations can be made Alterations can be madewithout redrawingwithout redrawing
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 35/48
M. McGowan
DecisionDecision--Making PackagesMaking Packages
DecisionDecision--MakingMakingPackagesPackages analytical tools foranalytical tools for
managersmanagers Produces statisticsProduces statistics
and graphsand graphs
Helps managersHelps managersevaluate informationevaluate information
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 36/48
M. McGowan
Project Management PackagesProject Management Packages
Project ManagementProject ManagementPackagesPackages enablesenablesproject teams to coproject teams to co--
ordinate activitiesordinate activities Details budgetsDetails budgets
Team member tasksTeam member tasks
Records resources usedRecords resources usedor allocatedor allocated
Time deadlinesTime deadlines
Progress reportsProgress reports
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 37/48
M. McGowan
Benefits of ITBenefits of IT
Increases productivityIncreases productivity
Reduces wasteReduces waste
Increases speed of workIncreases speed of work Improves accuracy and qualityImproves accuracy and quality
Increases access to informationIncreases access to information
Improves communication & decisionImproves communication & decision--makingmaking
Saves floor spaceSaves floor space
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 38/48
M. McGowan
Costs of ITCosts of IT
Costly to develop, install and maintainCostly to develop, install and maintain
Training staff is costly and timelyTraining staff is costly and timely
Introduction may not be easyIntroduction may not be easy
Requires new skillsRequires new skills
Breakdowns very costly and inconvenient Breakdowns very costly and inconvenient
Deskilled workers leads to low motivationDeskilled workers leads to low motivation
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 39/48
M. McGowan
Benefits of SoftwareBenefits of Software
Information can be handled very quicklyInformation can be handled very quickly
Speed and quality of decisionSpeed and quality of decision--makingmakingimprovedimproved
Fewer errors made making calculationsFewer errors made making calculations
Improved accuracy and qualityImproved accuracy and quality
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 40/48
M. McGowan
Costs of SoftwareCosts of Software
Expensive to buyExpensive to buy
Staff training required and costlyStaff training required and costly
Staff learning curve can be costlyStaff learning curve can be costly Time can be lost due to glitchesTime can be lost due to glitches
External threatsExternal threats -- virusesviruses
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 41/48
M. McGowan
Uses of ITUses of IT
Assists decision Assists decision--makingmaking
Assists with providing information for Assists with providing information forstaff staff
Helps maintain complete and accurateHelps maintain complete and accurate
business recordsbusiness records Aids effective communication within an Aids effective communication within an
organisationorganisation
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 42/48
M. McGowan
Effects of IT on EmployeesEffects of IT on Employees
Greater productivityGreater productivity
Retraining requiredRetraining required Changes in customer relationsChanges in customer relations moremore
impersonal yet quicker responseimpersonal yet quicker response
Less personal contact Less personal contact
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 43/48
M. McGowan
Effects of IT on OrganisationEffects of IT on Organisation
Decentralisation possibleDecentralisation possible
Additional departments/jobs may be Additional departments/jobs may be
createdcreated Fewer staff requiredFewer staff required
Changes to span of controlChanges to span of control narrowernarrower
due to less staff or wider due todue to less staff or wider due toautonomy of staff autonomy of staff
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 44/48
M. McGowan
INTRODUCTIONINTRODUCTION
-- A new Data Protection Act was passed A new Data Protection Act was passedin 1998 which supersedes the 1984 Act,in 1998 which supersedes the 1984 Act,which will be repealed.which will be repealed.
There are eight Data ProtectionThere are eight Data ProtectionPrinciples in the Act. However, the newPrinciples in the Act. However, the newPrinciples are not exactly the same asPrinciples are not exactly the same asthose in the 1984 Act.those in the 1984 Act.
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 45/48
M. McGowan
1. FIRST PRINCIPLE1. FIRST PRINCIPLE
"Personal data shall be processed fairly and"Personal data shall be processed fairly andlawfully."lawfully."
2. SECOND PRINCIPLE2. SECOND PRINCIPLE
"Personal data shall be obtained only for"Personal data shall be obtained only for
specified and lawful purposes, and shall bespecified and lawful purposes, and shall beprocessed only in a manner compatible withprocessed only in a manner compatible withthose purposes."those purposes."
3. THIRD PRINCIPLE3. THIRD PRINCIPLE
"Personal data shall be adequate, relevant "Personal data shall be adequate, relevant and not excessive in relation to the purposesand not excessive in relation to the purposesfor which they are processed."for which they are processed."
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 46/48
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 47/48
M. McGowan
7. SE VENTH PRINCIPLE7. SE VENTH PRINCIPLE
"Appropriate technical and organisational"Appropriate technical and organisational
measures shall be taken against unauthorisedmeasures shall be taken against unauthorisedor unlawful processing of personal data andor unlawful processing of personal data andagainst accidental loss or destruction of, oragainst accidental loss or destruction of, ordamage to, personal data."damage to, personal data."
8. EIGHTH PRINCIPLE8. EIGHTH PRINCIPLE "Personal data shall not be transferred to a"Personal data shall not be transferred to a
country or territory outside the Europeancountry or territory outside the EuropeanEconomic Area, unless that country orEconomic Area, unless that country or
territory ensures an adequate level of territory ensures an adequate level of protection for the rights and freedoms of dataprotection for the rights and freedoms of datasubjects in relation to the processing of subjects in relation to the processing of personal data."personal data."
8/8/2019 Business Information and Information and IT in Business v3
http://slidepdf.com/reader/full/business-information-and-information-and-it-in-business-v3 48/48
M. McGowan
Personal data covers both facts andPersonal data covers both facts and
opinions about the individual. It alsoopinions about the individual. It alsoincludes information regarding theincludes information regarding theintentions of the data controller towardsintentions of the data controller towardsthe individual, although in some limitedthe individual, although in some limitedcircumstances exemptions will apply.circumstances exemptions will apply.
With processing, the definition is farWith processing, the definition is farwider than before. For example, it wider than before. For example, it
incorporates the concepts of 'obtaining',incorporates the concepts of 'obtaining',holding' and 'disclosing'.holding' and 'disclosing'.