business information and information and it in business v3

8/8/2019 Business Information and Information and IT in Business v3

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Business Information andBusiness Information andInformation and IT inInformation and IT in

BusinessBusiness

Higher Business Management Higher Business Management



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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



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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



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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



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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



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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?



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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?



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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?



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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



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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.



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Mainframe +/Mainframe +/--

++

Enormous memoryEnormous memory

Vast processing

Vast processingpowerpower

Extremely fast Extremely fast

--

Hugely expensiveHugely expensive

IncreasingIncreasingdependencydependency



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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



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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



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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



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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



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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



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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



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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



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Internet Internet

International networkInternational networkof computersof computers

In existence sinceIn existence since1969!1969!

Main uses:Main uses:

EE--mailmail NewsgroupsNewsgroups

Sharing InformationSharing Information



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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



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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



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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



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Computer Aided ManufactureComputer Aided Manufacture

Computers andComputers androbots used torobots used tocontrol machinescontrol machines



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CAM +/CAM +/--

++

Saves labour costsSaves labour costs

Consistent qualityConsistent quality

TwentyfoursevenTwentyfoursevenproductionproduction

--

Costly breakdownsCostly breakdowns

Cant think forCant think forthemselvesthemselves



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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)



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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



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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



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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



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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



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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



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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



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DecisionDecision--Making PackagesMaking Packages

DecisionDecision--MakingMakingPackagesPackages analytical tools foranalytical tools for

managersmanagers Produces statisticsProduces statistics

and graphsand graphs

Helps managersHelps managersevaluate informationevaluate information



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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



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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



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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



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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



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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



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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



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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



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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



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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.



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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."



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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."



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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'.

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